In the final hours of the legislative session, Republican lawmakers came together around a plan they say will save property tax payers around $4 billion over six years.
The bill (SF 2472) sent to the governor caps growth in local property tax revenue at 2% per year in most areas of the budget. The cap would not apply to some areas like school funding.
It would create a homestead exemption of at least $5,500 — or 10% of a home’s value.
Sen. Dan Dawson, D-Council Bluffs, said the bill fulfills the goals set out by GOP leaders at the start of the session.
“No longer can windfall assessments come in, which results in windfall revenues to local government,” Dawson said. “And people go out there and say we kept your levy the same and the property tax payer gets stuck in the end.”
Sen. Herman Quirmbach, D-Ames, said the final compromise should have been available sooner so local leaders could give input.
The changes would take effect in July of 2027. Dawson said that gives lawmakers time to address any issues.