The Iowa House has passed a bill that would put a 2% cap on city and county revenue growth, but Republican leaders in the Legislature have yet to agree on a final property tax bill.
The House GOP bill (SF 2472) would also create a $15,000 homestead exemption, which would replace the homestead tax credit and roughly triple its value. State funding for the credit would be sent to school districts to help lower property taxes.
Rep. Carter Nordman, R-Adel said estimates show the bill could provide $4 billion of property tax relief over the next six years.
“This is not a Band-Aid or temporary relief,” Nordman said. “This is major reform that provides predictability for the taxpayer.”
Rep. Larry McBurney, D-Urbandale, said the bill won’t lower Iowans’ property taxes and that local governments will be left wondering how to provide the services their residents expect.
The bill goes back to the Senate, which recently passed a very different property tax bill.