(Des Moines) The Iowa House passed the Property Tax Reform Bill with a 93-1 vote.
Iowa House Representative Tom Moore, of Griswold, said the bill does four major things to provide all Iowa property taxpayers with immediate and direct property tax relief.
Division I of the bill provides an immediate statewide property tax reduction of over $200 million dollars. Iowa Code section 257.3 requires each school district to levy (each year) a foundation property tax equal to $5.40 per $1,000 of assessed valuation on all taxable property in the school district. Division I reduces that requirement by $1.00 so schools will be required to levy a property tax of $4.40. The state would then pay for that reduction so that the schools do not lose revenue.
Division II of the bill puts a 3% limitation on how much a property tax payer’s bill can increase year over year. The division outlines a property tax increase limitation on a per parcel basis for qualified parcels. This is on the actual amount of property taxes paid (not the assessment). This division’s limitation does not limit taxes levied as a result of a voter-approved levy or a debt service levy.
This division provides that a qualified parcel (gets the growth limitation) is a parcel that is NOT:
-Currently part of a TIF
-Wind energy conversion property
-Currently part of an abatement
If there were improvements or renovations (not amounting to new construction) on the parcel during that year, the threshold amount of taxes shall be up to 103% or 108% plus the percentage of the parcel’s taxable value attributable to the improvements.
Division III of House File 718 rounds out Iowa’s version of Truth in Taxation and works to get more information in the hands of property tax payers. With this information they will be more informed about how assessments and levies are working together in their area. This division also provides that if all of the information from all taxing jurisdictions is available in a timely manner—everything should be on one notice for the taxpayer.
Finally, Division IV of the bill simply states that all special elections by any political subdivision for bonds or other debt must be on the first Tuesday after the first Monday in November of each even-numbered year. (Bond/Debt elections will be on the same day as the General). Additionally, it provides that the commissioner of elections will send notice of a bond election to eligible voters 10 to 20 days before the election. The notice must contain the full text of the public measure to be voted on.
Division I and IV were amended to clarify that the money used to supplement the reduction of the $5.40 levy comes from the Taxpayer Relief Fund and that bond elections are to be held on the above dates every year not every 2 years.
