Property tax relief proposals from House Republicans and the governor are advancing to the House Ways and Means Committee. Both bills would cap city and county revenue growth at 2%, with some exceptions. The House GOP bill would also establish a $25,000 tax exemption for all residential properties.
Iowa Taxpayers Association President Nate Ristow said he supports the 2% revenue cap.
“I think that’s the cleanest and easiest way for the state to provide uniform relief for all classes of property taxpayers,” he said.
But Ristow said he’s concerned about the residential tax exemption because it would shift more of the property tax burden onto businesses and agricultural property.
Chelsea Hoye, a lobbyist for the Iowa League of Cities, said cities share the goal of providing tax relief, but they are also facing rising costs.
“Layering a 2% cap on top of a broad, new residential exemption creates a real risk that cities will be forced to reduce services, defer maintenance or delay critical investments in their communities, ultimately increasing costs and impacting quality of life,” Hoye said.
Chris Hagenow, with Iowans for Tax Relief, said the group has called for a 2% revenue cap because that’s the best way to put the needs of Iowa taxpayers ahead of the needs of local government.