DES MOINES, Iowa – Gov. Kim Reynolds, Iowa Senate Majority Leader Jack Whitver, R-Grimes, and Speaker Pat Grassley, R-New Hartford, have reached an agreement to provide property tax relief for Iowans. Last month, the Iowa House and Iowa Senate passed different property tax relief bills.
“We’ve heard Iowans across the state voice their concern about out-of-control property taxes and the impact on family budgets. Today, we’ve come to an agreement on a path forward. This deal provides much-needed property tax relief for Iowans and lays the groundwork for even bolder reform in the future,” they said in a joint statement.
They agreed to move HF 718 forward. That bill passed in the Iowa House in a 93 to 1 bipartisan vote.
HF 718 reduces the 5.40 levy by $1 and has the state fund the difference, which lawmakers say will deliver more than $200 million in real, immediate tax relief to Iowans. The bill also caps annual property tax increases per parcel to three percent for residential and agricultural properties and eight percent for commercial and industrial properties. The bill also requires tax bills to look like an itemized receipt, including information on where the money is going. It also moves all elections for bonding to every November.
“House File 718 curbs the growth of local governments in a responsible manner and begins reducing property taxes next year. It also provides additional relief for older Iowans and military families and requires property tax bill transparency. In total, the bill is estimated to provide $100 million in relief,” Reynolds, Whitver, and Grassley said.
“This is an important first step toward long overdue property tax reform. Iowa’s existing property tax code is outdated, overly complex, and costs Iowans too much of their hard-earned pay. Work on this issue is just getting started,” they added.
Reynolds said she is proud to work with the legislature to achieve property tax reform.
“My commitment to cutting taxes for the hard-working people of Iowa has never been stronger. After enacting the largest tax cut in state history last year, I’m proud to work alongside the House and Senate to begin property tax reform this year. Earlier this session I signed legislation to make state government more efficient, effective, and less expensive for Iowa taxpayers. This serves as a model for local governments, and property tax reform is a good first step,” she said.
Whitver thanked State Senator Dan Dawson, R-Council Bluffs, who was the lead sponsor of the Senate’s bill.
“We heard the urgent concerns of Iowans about rising property assessments. This agreement delivers on our promise to protect homeowners from huge property tax increases. I appreciate Senator Dawson’s tireless work on this bill, which will result in the most significant property tax reform in our state’s history,” he said.
Grassley said the agreement is a good first step.
“With House Republicans representing all 99 of Iowa’s 99 counties, we are in a better position than ever to listen to Iowans. Our constituents spoke loud and clear that property tax relief must be a top priority this session and we got straight to work. I am very proud of the work Representative Kaufmann has done to deliver on yet another promise made to Iowans. This is a good first step and we will continue to work hard to provide certainty and relief for Iowa taxpayers,” he stated.