The leaders of the Iowa Legislature’s taxation committees are proposing what they say is the biggest property tax system overhaul in 50 years.
Republican Sen. Dan Dawson and Rep. Bobby Kaufmann say their plan would cut property taxes by more than $400 million. Every homestead would also get a $25,000 tax exemption. The bill would eliminate the “rollback,” which sets the amount of property value that can be taxed, and it limits local government revenue growth.
Kaufmann says cities, counties and taxpayers all think the current system is bad.
“This is our way of being responsive to everyone and saying, all right, we’re going to modernize a system that hasn’t been touched, effectively since 1977, in terms of the rollback, and get that predictability going forward.”
Democratic Rep. Dave Jacoby says Iowans should be very skeptical of this plan. He says property taxes keep going up despite previous GOP attempts to provide relief.