Jefferson City Administrator Scott Peterson. Photo courtesy of the city of Jefferson

A main topic that the Iowa Legislature is addressing this year will have an impact not only on Iowans but also with local governments. 

In her Condition of the State Address, Governor Kim Reynolds proposed limiting property tax growth to two percent, while also freezing property taxes on households for individuals 65 and older, among other stipulations. Jefferson City Administrator Scott Peterson gives his reaction to those items from the governor.

“Always do have concerns when you talk about a hard cap and two percent will not keep up with the CIP (Capital Improvement Plan) in a lot of instances. But with that though, the other thing about exemptions for folks that are 65 or older, that’s a lot of our community. So we have not had the chance to analyze what the impacts of this might be, but I trust there would be some significant impacts.”   

Peterson desires stability, consistency and predictability of the future when it comes to property tax changes, but he understands that the State Legislature is wanting to do something to provide property tax relief. 

The Iowa House Republicans recently revealed their property tax bill. The House Ways and Means Committee Chair Carter Nordman states some of the components of the legislation includes capping revenue growth to two percent, tax exemption on the first $25,000 of a household and requires a 60 percent approval vote from a local governmental body for bonds that are paid with property taxes, among other items.