Helland: Property Tax Reform Passes Iowa House

As property taxes continue to rise, taxpayers’ wages and income are not keeping up.  At the current rate, property tax revenue will increase to an unsustainable amount.  Property tax payers are looing at increase of over $2.1 billion within 10 years.  This act protects taxpayers of all classes and reserves them a seat at the forefront.  Local governments will be held responsible and forced to economize their spending.

HF2274 is the only bill in the property tax debate that addresses the problem at the heart of the matter….government spending.  This is the only bill that will result in a lower tax bill for the all payers, specifically residential property taxpayers.

HF 2274 will reduce Iowan’s property tax bills by over $1.2 billion in the next eight years.  This taxpayer money will be put to work hiring Iowans and helping family budgets.   The House and the Governor have worked hard in an open and transparent process to include ideas from both sides of the aisle.  Ideas from all parties involved were considered in crafting a bill which spares residential homeowners from the drastic shift that will result under current law.  It focuses on small Iowa business and prevents cities from experiencing catastrophic shortfalls.

The property tax bill crafted by House Republicans and Governor Branstad passed today will create a 40 percent rollback on the assessment of commercial and industrial properties over the span of eight years.   The rollback on assessed value will increase each year, giving cities and counties the ability to plan and make budget adjustments.  However, the exemption of taxable value will give small Iowa businesses the greatest benefit fastest.

The property tax evaluation restraint percentage for residential and agricultural property from four to two percent.  Even with this limit, counties will still see a substantial growth in property tax revenue.

Ultimately, the property tax relief will accelerate small businesses growth and allow for expansion of job creation in Iowa.  Operating more efficiently will return cities and counties to their priorities—generating growth and tax revenue for the state.  This is the only bill in the property tax debate that addresses the problem at the heart of the matter….government spending.

See more updates from Rep. Helland on his website.