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However, the most significant bill we passed this week was Senate File 2472. This property tax overhaul bill provides a 50 percent discount on taxable value for every single Iowan who owns a home. It also increases the discount to 60 percent when Iowans turn 60 years old, 70 percent discount when Iowans turn 70 years old, 80 percent discount when Iowans turn 80 years old, 90 percent discount when Iowans turn 90 years old, and a 100 percent discount when Iowans turn 100! To give Iowans even further relief, the bill automatically lowers levies when property valuations rise above 2 percent. The proposal also modernizes Iowa’s property tax system to make it more transparent and stable for Iowans. It eliminates the antiquated variable rollback system and allows all public notices to be posted online.
As we gathered more feedback, questions and concerns throughout the summer and fall, one of the things we heard was the need to continue offering services in our cities and towns. The bill also includes additional flexibility measures to give local entities the ability to raise the local option sales tax to 1.25 cents to ensure public safety can be funded and lower property taxes. Additionally, Senate File 2472 includes a fuel tax index to guarantee additional funds to restore Iowa’s roads and bridges. Our proposal ensures fuel taxes never increase more than one cent a year and cannot increase more than three years in a row. For a family of 4, this increase equates to a total of $8 a year. The legislature also has the ability to come in and reduce the fuel tax at any time. This ensures additional funds that are constitutionally protected go to Iowa’s infrastructure, with over 53 percent of those funds going to city, secondary, and farm-to-market roads.
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