Governor Kim Reynolds says she is open to everything when it comes to settling on a proposal to set new limits on property tax growth. The governor and Republican leaders in the House and Senate have all announced their own property tax proposals this month.
“Nobody should be drawing lines in the sand right now,” Reynolds told reporters after touring a Des Moines charter school on Thursday. “Everybody should be looking for common areas that we have — have that be the foundation to start from. You know, there are some similarities in all three bills. Find out what those are, and then let’s talk and figure out what makes sense.”
Property tax proposals backed by House Republicans and the governor were the subject of public hearings yesterday. The House GOP plan would set a yearly 2% limit on local revenue growth for cities and counties and create a new $25,000 exemption for every residential property. Local government officials raised concerns about the one-size-fits-all approach.
“Laying a 2% cap on top of a broad new residential exemption creates a real risk that cities will be forced to reduce services, defer maintenance or delay critical investments their communities, ultimately increasing costs and impacting quality of life,” said Chelsea Hoye, a lobbyist for the Iowa League of Cities.
The president for Iowans for Tax Relief said the plans prioritize the needs of taxpayers. Some business groups warn the new $25,000 exemption for residential property may shift the tax burden on agricultural and business property owners.