(Red Oak) Montgomery County Board of Supervisor Chairman Mike Olson stated during Tuesday’s board meeting that there was a lot of discussion over House File #718, Iowa’s major property tax cut law. The new law requires local governments to use surplus revenue to lower their levies affecting local government business operations.
Olson noted a statewide supervisor’s day at the State Capitol on February 8.
Last Spring, the Iowa Legislature passed a $100 million property tax cut into law. The bill: Divides cities and counties into three tiers based on their revenue growth. Establishes a new formula that requires local governments to use a portion of the excess growth to reduce property taxes. Cuts property taxes for veterans and seniors. Local governments must provide more detailed information to taxpayers about how their property tax dollars are used. Consolidates some supplemental levies into the general levy while leaving other levies out of the revenue growth cap. It is estimated to provide property taxpayers with 100 million dollars in relief.
