The Iowa House passed a bill through committee and is now eligible for a full House vote.

House File 1 looks to reduce property taxes for Iowans. The legislation proposes to lower the school foundation property tax levy from $5.40 per $1,000 of property valuation to $4.40. This change would save about $200 million in property taxes across the state, and House District 47 Representative Carter Nordman (R-Panora) says this reduction will not fluctuate any school district’s budget.

“It’s not about money being taken away, it’s about where money is going to come from. Rather than being on the burden of the taxpayers it will come from the state’s general fund. So the budgeting, as far as the schools go, will not change. This is a dollar-for-dollar way to accomplish some property (tax) relief pretty quickly.”   

Another key component of the bill is limiting a landowner’s individual property tax bill to a maximum of three-percent every year. Nordman explains that even though there is an existing cap on statewide residential properties annual growth of up to three-percent, their bill aims to limit an individual parcel that someone owns.

“In other words, capping your individual property tax bill. So as an example, if your bill is $100 next year your tax bill could only be $103. Really what this is trying to do is allow for some predictability for taxpayers and I think predictability and taxes is extremely important, and that’s why I’m really excited about this bill.” 

The bill passed out of the House Ways and Means Committee and is eligible for the House floor for consideration. You can click the link below to see the full House bill.

https://www.legis.iowa.gov/legislation/BillBook?ga=90&ba=hf1