
The latest property tax reform bill included some changes to what was originally presented earlier in the Iowa Legislative Session.
Some of the changes include increasing the homestead tax credit exemption from $25,000 to $50,000 for those individuals who are 65 and older, and eliminating the rollbacks on commercial and residential properties instead of phasing them out that was in the original bill. Another change was keeping the maximum two percent property tax growth for local governmental entities, excluding new construction, and allowing for an exception of when the inflation rate is over four percent.
District 24 Senator Jesse Green tells Raccoon Valley Radio that he is in favor of seeing property tax reform continue to evolve and believes the proposed changes are reflective of listening to taxpayer concerns.
“We want local governments to be held accountable and responsible, right or wrong, for the decisions that they make. So, how many election cycles have we seen where local government officials will go knocking doors and say, ‘Hey, I’m a fiscal champion and I’d never raise your (tax) levy. Well, we all understand that, or most people understand that, when you have a huge increase in (property) assessments that if you don’t change your levy rate, that’s a tax increase. And I think a lot of taxpayers are frustrated with that formula.”
Green adds that this is where the state government can come in and make adjustments to the property tax system that has not been changed since it was implemented in the 1970s that does not reflect the reality of today. He is also okay with the bill not being passed this legislative session as lawmakers can continue to discuss, hear from constituents, and come back next year to tackle the issue.