Senate Republicans’ proposal to overhaul Iowa’s property tax system advanced through a subcommittee Tuesday.
The bill (SSB 3001) would cap city and county revenue growth between 2% and 5%, based on inflation. It would also replace Iowa’s “rollback” system with a 50% homestead tax exemption up to $350,000 and make many other changes.
Dubuque Mayor Brad Cavanagh said he likes that the bill would tie revenue caps to inflation, giving cities more flexibility to respond to rising costs. He said this would also simplify the property tax system and provide other ways for cities to raise revenue.
“Several aspects of this bill really indicate that you … have really genuinely listened to the concerns of city leaders that we brought to you and you’re working to strike this balance,” Cavanagh told lawmakers.
But Cavanagh said he’s concerned about the proposed elimination of property taxes for seniors who have paid off their mortgage.
Republican leaders have yet to agree on a path forward for property tax relief.