THE IOWA HOUSE PASSED THEIR VERSION OF THE PROPERTY TAX REFORM BILL WEDNESDAY BY A VOTE OF 64 TO 23.
THE LEGISLATION WOULD RESTRICT LOCAL GOVERNMENTS FROM COLLECTING MORE THAN TWO-PERCENT IN PROPERTY TAX REVENUE ANNUALLY.
REPRESENTATIVE CARTER NORDMAN OF DALLAS CENTER IS THE REPUBLICAN WHO LED DEBATE AND SAYS THE PLAN WOULD EXEMPT THE FIRST 15-THOUSAND DOLLARS OF A HOME’S VALUE FROM TAXATION AND ELIMINATE THE HOMESTEAD TAX CREDIT.
STATE FUNDING FOR THAT CREDIT WOULD BE SENT TO PUBLIC SCHOOLS AND REDUCE THE PROPERTY TAXES IOWANS PAY TO LOCAL SCHOOL DISTRICTS BY ABOUT 150-MILLION DOLLARS NEXT YEAR.
NORDMAN ESTIMATES IOWA HOMEOWNERS WILL SAVE FOUR BILLION DOLLARS OVER THE NEXT SIX YEARS IF ALL OF THE BILL’S PROVISIONS BECOMES LAW.
IAPROPTAX1 OC……..FOR THE TAXPAYER.” :06
HOUSE DEMOCRATS OFFERED AN ALTERNATIVE PLAN THAT WAS REJECTED BY REPUBLICANS.
THE STATE SENATE’S PLAN PASSED EARLIER THIS MONTH BY A 41-4 VOTE WITH ONLY ONE DEMOCRAT VOTING AGAINST IT.
THAT BILL ALSO HAS A SLIGHT INCREASE IN THE STATE GAS TAX.
THE TWO CHAMBERS WILL NEED TO WORK OUT THEIR DIFFERENCES IN A COMPROMISE BILL BEFORE THE LEGISLATURE CAN ADJOURN.
Radio Iowa contributed content to this story
