Today, the Iowa Senate passed SF 569, an estimated $100 million property tax relief bill, while simultaneously preserving the Taxpayer Trust Fund to remain on the path to reduce and eliminate the state income tax.
“Iowans from river to river have opened their property assessments this year to shock and dismay,” said Senator Dan Dawson. “20%, 30%, even 50% increases in valuations have left property taxpayers angry and looking for relief. Senate Republicans heard them. Today’s resulting reform is real relief now and structural relief for the future.”
“In 2021, the Iowa Legislature moved the cost of mental health services from property taxes to the state general fund. Less than half the counties in Iowa passed those savings to the property taxpayer,” said Senate Majority Leader Jack Whitver. “Unlike past efforts to provide property tax relief, SF 569 is not a tax shift. It is $100 million in relief and controls the growth of local government spending. It avoids the pitfall of pouring water into a bucket with a big hole in the bottom.”
SF 569 provides $4.5 million in relief by eliminating two levies and $57 million in relief by changing the veterans and seniors property tax credit to an exemption. It also creates $45.4 million in relief through city and county levy reform as estimated by the Iowa Department of Management.
The bill automatically reduces levy rates when assessments rise so taxpayers are protected from massive rate increases and also to control local government spending. It increases transparency by changing notice requirements and providing clarity on local budgets.