• Home
  • News
    • Politics & Government
    • Business & Economy
    • Crime / Courts
    • Health / Medicine
  • Sports
    • High School Sports
    • Radio Iowa Poll
  • Affiliates
    • Affiliate Support Page
  • Contact Us
    • Reporters

Radio Iowa

Iowa's Radio News Network

You are here: Home / News / Senate panel approves ending $150 M in state property tax replacement

Senate panel approves ending $150 M in state property tax replacement

May 3, 2018 By O. Kay Henderson

Charles Schneider

Republicans on a senate committee have advanced a bill to phase out $150 million in annual state payments to cities, counties and school districts.

The payments were promised in 2013 to make up for the cut in commercial property taxes that state lawmakers ordered. Senator Charles Schneider, a Republican from West Des Moines who is chairman of the Senate Appropriations Committee, said “no one realistically expected” the state to keep making these payments.

“No matter what we pass, local governments certainly won’t be happy about this,” Schneider said this afternoon. “I think the approach we’re taking here today is fair and reasonable and gives local governments time to adapt.”

The phase out would begin in July of 2019. For areas of the state were commercial property taxes are more robust, the state payments would be eliminated in three years. Slow-growth areas of the state would have six years to adjust to the end of this state support.

Senator Joe Bolkcom, a Democrat from Iowa City, said many cities and counties will be forced to raise taxes on homeowners and farmers to make up for the declining state payments.

“The Republican Caucus has had a lot of bad ideas this session and this might be one of the worst ones,” Bolkcom said. “This is a huge broken promise to local governments.”

House Speaker Linda Upmeyer says she and other Republicans in the House are interested in phasing out these payments, but are still considering various options for accomplishing that goal.

Lawmakers are hoping to conclude the 2018 legislative session this weekend.

Share this:

  • Facebook
  • Twitter

Filed Under: News, Politics / Govt Tagged With: Democratic Party, Legislature, Republican Party, Taxes

Featured Stories

Exhibit features lesser known works of Grant Wood

Testing finds 21 new CWD cases in deer

It may become a crime in Iowa to use fake urine in workplace drug tests

February trending 18 degrees below average temperature

Iowa House Education Committee votes to end tenure at UI, ISU, UNI

TwitterFacebook
Tweets by RadioIowa

Iowa State looks to avoid winless Big-12 season

New look and new format at girls’ state basketball

Youngstown State takes action against assistant football coach

Iowa’s Jack Nunge lost for the season

Key stretch begins for #9 Iowa

More Sports

eNews and Updates

Enter your email address:

Delivered by FeedBurner

Archives

Copyright © 2021 · Learfield News & Ag, LLC