Property Tax Reform Passes Iowa House
Iowa Capitol
(DES MOINES) – Tuesday Rep. Guy Vander Linden (R-Oskaloosa) supported House File 2274, the only property tax proposal that delivers significant tax relief and genuine reform to all classes of Iowa’s property tax payers.
Iowa currently has the 2nd highest commercial property taxes and the 16th highest residential property taxes in the country. Additionally, over the last ten years, school property tax collections have increased 60 percent, counties have increased 64 percent and cities have gone up 74 percent. Over the same time period, Iowans’ personal income only grew by 46 percent.
If nothing is done, the hardworking taxpayers of Iowa are staring down the barrel of a $2.5 billion property tax increase over the next 10 years, with the majority of that falling to homeowners.
Governor Terry E. Branstad today praised Republicans in the Iowa House of Representatives for taking a bold step on behalf of Iowa homeowners, small business owners and working families.
“The House Republicans today took a significant step to reduce property taxes in Iowa, and I congratulate them for taking this historic step,” said Gov. Branstad. “Their actions will prevent the looming, $2 billion property tax increase Iowans face over the next 8 years. For decades, the Legislature has attempted to address the flaws in this system, but the sheer complexity has prevented meaningful action. As I stated in my state of the state address, any reform must be permanent, and must actually help small business owners. The House plan, put forward by Republicans, is the only property tax proposal that offers permanent, meaningful relief. I hope the Senate will join the House in passing this property tax relief proposal that offers permanent assurance to Iowans.”
“Now is the time for real, genuine property tax relief and reform for ALL Iowans,” said Vander Linden. “This bill will put money back in the pockets of Iowa families and job creators.”
Property tax reform also affects Iowa’s economy and is an impediment to putting people back to work. The Republican plan further provides an emphasis on smaller, Main Street, entrepreneur-type employers. It creates predictability and stability for all employers.
Highlights of the Republican plan include:
- ALL Iowans receive tax relief and there is no shifting of burdens to any one class of property
- Job creators receive a $602 million property tax cut
- Homeowners receive a $417 million property tax cut
Republicans’ proposal offers a total of $1.2 billion in relief for Iowa property taxpayers
The plan proposed by Democrats results in a $2.5 billion property tax increase, with $1.69 billion of that falling on the backs of homeowners.
According to public polling, Iowans favor broad based property tax relief proposal, similar to the Republican plan, by a 2 to 1 margin over a targeted tax credit plan, similar to the Democrat plan.
