City and county revenue growth would be capped at 2% each year under a property tax bill (HSB 596) advancing in the Iowa House. It would also create a 10% residential property tax exemption up to $25,000.
Republicans on the House Ways and Means Committee approved a new version of their plan Wednesday. It includes some of Gov. Kim Reynolds’ proposals, like limiting economic development districts to 20 years and creating a grant program to help local governments share services.
Rep. Carter Nordman, R-Dallas Center, said the bill is about giving property taxpayers predictability.
“I believe this bill provides significant future savings for Iowa property taxpayers and gives them the peace of mind that property tax growth is not outpacing what Iowa families can afford,” Nordman said.
Rep. Aime Wichtendahl, D-Hiawatha, said the bill would hamper local economic growth.
“I think Iowans deserve better,” Wichtendahl said. “They’ve been asking for property tax reform for over a decade. Bills that we have in front of us that just seem to move money from one area to the other aren’t really putting money back in people’s pockets.”
The bill is now eligible for debate by the full House.