On Wednesday, April 17, House Republicans passed their version of Property Tax Reform. The House proposal does not shift the tax burden to various classes of property, but instead ensures that relief and reform is permanent, predictable, significant, and affects all classes of property.
Representative Chip Baltimore spoke during debate on the bill about the need to reform Iowa’s noncompetitive property tax system.
Generally, the bill:
- Contains a 20% rollback of taxable value on commercial and industrial property.
- Assessment growth limitation moves from 4% to 2% on ag and residential taxes immediately, while keeping the ag & residential tie in effect.
- After the 20% commercial rollback is fully implemented, all three classes of property (Ag, Residential, and Commercial) are tied together with a 2% assessment growth limitation.
- Includes an appropriation created to backfill loss to local governments.
- Raises the school foundation formula from 87.5% to 95% over four years which provides dollar for dollar property tax relief.