Kapucian Korner by Senator Tim Kapucian

Iowa State Senator Tim Kapucian

Greetings from Under the Golden Dome

We continue to advocate for much-needed comprehensive tax reform in Iowa. The current tax system is burdensome and one of the most complex in the nation; however, when the Iowa Senate had an opportunity to pass true property tax reform this week, we ended up passing a bill that would only be enacted when a state revenue threshold is achieved. I don’t believe this is enough relief.

Over the past decade, residential property taxes grew by $100 million annually in Iowa. If no changes are made to adjust the calculation of residential property taxes, it is estimated that between Fiscal Year 2014 and Fiscal Year 2022, residential property taxes will grow annually by $181 million. We want to fight for every homeowner in the state by locking down property tax valuation increases.

We offered amendments this week to SF 295, the Small Business Property Tax Credit bill. The amendments would have locked down the revaluation growth in the assessed value on residential and agricultural property. For assessment year 13 and beyond, residential and agricultural revaluation growth rate would have been reduced from the current 4.0% per year to a 0.0% rate. This stabilization of revaluation growth rates would have provided much-needed protection for residential and agricultural property taxpayers.

We will continue to fight to put money back in the pockets of hard working property taxpayers through comprehensive tax reform.

While we attempt to wind down this session there is much work to do. Besides all of the appropriation bills, one of these issues that I consider a must do before we go home is clarifying for all Iowans, where their liability begins and ends when allowing others to enjoy the benefits of outdoor activities on their property. The liability of property owners allowing for hunters, fishermen, snowmobilers, tour groups, etc. is now in question after a recent court case. The legislature needs to act to give clarification or many property owners will just say no to those asking to do these activities on their land.

See you out and about the district.