IOWA SENATE REPUBLICANS ARE INTRODUCING A PROPERTY TAX PLAN AT THE START OF THE NEW LEGISLATIVE SESSION.
SENATE MAJORITY LEADER MIKE KLIMESH SAYS THE PLAN INJECTS NEW IDEAS INTO THE DEBATE OVER HOW BEST TO REDUCE RESIDENTIAL PROPERTY TAX RATES;
PROPTAXES1 OC…….FROM PROPERTY TAXES.” :18
SENATOR DAN DAWSON, A REPUBLICAN FROM COUNCIL BLUFFS, IS CHAIRMAN OF THE SENATE WAYS AND MEANS COMMITTEE AND THE PLAN’S MAIN ARCHITECT.
PROPTAXES2 OC……IS HOME OWNERSHIP.” :10
THE BILL WOULD PERMANENTLY INCREASE THE STATE’S HOMESTEAD TAX CREDIT TO 50 PERCENT OF A HOME’S TAXABLE VALUE. AND IT WOULD ELIMINATE PROPERTY TAXES FOR OLDER IOWANS WHO OWN THEIR HOME.
PROPTAXES3 OC…….BE REAL RELIEF.” :20
TWO ELEMENTS OF THE PLAN WOULD OFFSET PROPERTY TAX REVENUE LOSSES IN CITY AND COUNTY BUDGETS.
LOCAL GOVERNMENTS COULD GO TO VOTERS AND ASK TO INCREASE THE LOCAL OPTION SALES TAX TO ONE-AND-A-HALF PERCENT.
IT’S MAX TODAY IS ONE PERCENT.
THE SENATE REPUBLICANS ARE ALSO PROPOSING TO ADD AN INFLATION INDEX TO THE STATE GAS TAX, WHICH HASN’T BEEN RAISED IN A DECADE.
PROPTAXES4 OC…….TO BE PROVIDED.” :15
THE PLAN HAS OTHER ELEMENTS, LIKE ELIMINATING SEVERAL STATE-FUNDED PROPERTY TAX EXEMPTIONS AND SENDING THAT STATE MONEY TO PUBLIC SCHOOLS — TO REDUCE THE AMOUNT PROPERTY OWNERS PAY TO THEIR LOCAL SCHOOL DISTRICTS.
GOVERNOR KIM REYNOLDS HAS SAID SHE’LL PRESENT A PROPERTY TAX PLAN TO LEGISLATORS AND HOUSE REPUBLICANS ARE EXPECTED TO UNVEIL THEIR OWN APPROACH.
