Last week the Iowa House passed a property tax reform bill.

State Representative Chip Baltimore highlights the main points of the bill.  Commercial property owners would receive a 20% reduced property assessments over four years.  He notes that would generate $340 million in property tax relief.

Baltimore points out what would happen to ensure the safety of small towns and counties of lost revenues if commercial property taxes are reduced.

“The state would come in and backfill most of that lost revenue to make sure that local governments aren’t left high and dry.”

If that happens, adds Baltimore, then all properties would be tied together.  Currently agriculture and residential properties are tied together and commercial properties would become part of that grouping.  Another part of the bill would be all properties are capped at 2% every year for assessment growth.

A final important piece of the property tax reform bill is increasing school foundation formula.  Currently, the state funds 87% of public school systems and that would be increased to 95% which would generate $322 million in property tax relief.

However, Baltimore says the Senate has different ideas.  He states that the Senate doesn’t like limiting assessment growth and they don’t want all commercial properties to be reduced in taxes.