The Iowa Legislature is continuing discussion between the two chambers to find an agreement on property tax reform before the session is adjourned for the year.

The Senate passed its bill earlier this month with a bipartisan vote. According to the legislation, some of the highlights include eliminating the rollback on residential properties, implementing a one-time gas tax increase to offset property taxes to fix county roads and bridges, as well as tying revenue growth to the inflation rate. 

Conversely, the House bill limits revenue growth to two percent, something that House Ways and Means Chair Carter Nordman defends as the single most important goal for property tax reform as the House Republicans remain steadfast on advocating for taxpayers who can’t afford to live in their homes.

“High taxes come from over spending. They always have and they always will. And the communities in this state, who have the lowest property tax rates, all have one thing in common: they’re the most restrained in their spending. So the largest part of the property tax bill has to be looking at the rate of spending at the local level.”

Senator Green shares his thoughts on having a two percent limit on revenue growth put on local governments.

“I’m against a firm two percent cap. Currently there are about 100 cities that abide by that consistently, staying underneath that two percent. That’s still a very small percentage that’s been able to do that.”

Green is in favor of creating a softcap for retirement pensions, insurance and other expenses that are out of local government’s control and can roll those into an uncapped levy whenever those governmental entities need to utilize it.

Nordman adds that while the two chambers continue negotiations and that this is the first time in two years that the House and Senate have each passed legislation to address property tax reform, which shows that lawmakers deeply care about making changes. He is confident that an agreement will be made before the end of the session.