House Republicans have released a property tax plan that includes the main element of the plan Governor Reynolds proposed a week ago — a 2% limit on property tax revenue growth.
During a news conference this morning, House Speaker Pat Grassley said that will provide certainty for the taxpayers. “If you set that number so high, you’re basically just continuing status quo,” Grassley said. “By putting a true two percent cap, (that’s) certainty for Iowans, also I think it will make our local governments become more efficient.”
There would be limited exceptions for public school projects and new home construction, the same exceptions Reynolds included in her plan. Unlike the proposals from the governor and Senate Republicans, the plan from House Republicans does not target major property tax relief to older Iowans. Instead, it would give every residential property owner a $25,000 exemption on the property.
“This plan gives relief to everybody. It gives relief to seniors. It gives relief to the working families. It gives relief to young couples who are buying a new home,” said Representative Carter Nordman, a Republican from Dallas Center who is chair of the House Ways and Means Committee.
Governor Reynolds has called for freezing property taxes for Iowa homes below 350-thousand dollars in value that are owned by Iowans above the age of 64. The Senate’s plan calls for erasing property taxes for Iowans above the age of 60 who’ve paid off their mortgage and own their home. Senate Republicans would raise the homestead credit to half of a home’s value and let local governments raise the local option sales tax by half a percent and raises the gas tax, providing more money to cities and counties for road projects. The plan from House Republicans contains none of that. It does not include the governor’s 10 million dollars in grants for city and county efficiency projects either.
“The Senate, the governor are going to have different ideas that we obviously have to consider,” Grassley told reporters. “We wanted to stick to what I’ve been saying for the last month, which is certainty, simplicity and get it out early in session and that’s why we landed on this position.”
Grassley indicated there’s nothing included in any of the plans that he’d immediately declare unacceptable. “From my perspective, if any of us come into this setting out a certain line of things that are deal breakers, I don’t think that’s the right way we should start the conversation,” Grassley said. “Once we get down the road of everybody looking at each other’s bills, having the committees working on them and get to those points, we may get there, but I don’t think that’s how we should start this process if we’re serious about getting something done.”
The House GOP bill requires changes in the mailer sent to every property taxpayer. Grassley said the changes will make it easier for taxpayers to understand where property tax dollars are being spent.