DES MOINES, IOWA (WHO) — Iowa lawmakers came to an agreement on property tax reform on Monday, and in less than 24 hours the bill has cleared both chambers.
The bill provides $100 million in tax relief for Iowans, according to state Republican leadership. It also gives immediate relief to seniors and military veterans by creating new exemptions and increases transparency, requiring tax bills to have the same look as an itemized receipt.
The bill cleared both chambers only receiving one “no” vote.
“To all Iowans who may be watching this or may watch us tonight, you’ve spoken loud and clear and relief is on the way,” said Iowa State Representative Bobby Kaufmann, (R), District 82 from Wilton.
“We’ve listened to the taxpayers of Iowa, we’ve listened to the property owners, we have listened to the lessees who are saying, ‘I can’t afford to live here if my property taxes go up astronomically’,” said Iowa State Representative Dave Jacoby, (D) District 86 from Coralville.
The proposal reduces tax rates when assessments rise. So Iowans are not just getting help this year with property tax assessments but for the next four.
“If evaluations rise, your levy rates will fall,” said Iowa State Senator Dan Dawson, (R), District 10 from Council Bluffs.
“And we all know that every tax system can always use some change as time moves on. The bill before us addresses some changes, it will slow the growth of property taxation to some point,” said Iowa State Senator Pam Jochum, (D), District 36 from Dubuque.
There were several concerns highlighted by democratic lawmakers throughout the debate process, but not enough concern to make them vote no. Some worry about the ability of local governments to provide essential services, others worry about the clarity of the bill as there is not a specific formula to show how much Iowans will save in the years to come.
The bill sunsets after four years. The tax relief will be noticed by Iowans in fall of 2024, as that is when the first half of 2023 property taxes are due. And again in spring of 2025 as the second half is due then.
The bill is now sent over to Iowa Governor Kim Reynolds for her signature.