State Senate advancing property tax reduction bill

Hunter
02/15/23

At the state capitol in Des Moines, state Republicans are moving forward with a bill that would simplify and reduce property taxes.

The Gazette reports the bill would cap city and county general property tax levies and reduce the value at which properties are assessed. Among other features of the bill is the phasing out of Public Education and Recreation tax levies used by schools for funding new playground equipment, and after-school programming, summer school programming, adult education and community swimming pools. According to Republican senator Dan Dawson of Council Bluffs, who wrote the bill, those items can be funded using other taxes.

Local leaders are pushing back on the proposal, saying the state would strip them of local control and would make it harder to respond to the needs of their communities. Others added that the bill would make it harder for cities to attract a quality workforce if they can’t keep up on essential services and amenities.

The Daily Iowan reports that Iowa City Finance Director Nicole Davies said at the City Council meeting this week property taxes make up over 2/3 of the city’s general fund, which the city uses to fund governmental services, such as the police and fire departments, the library, and parks and recreation. Cuts imposed by the state would cause the city to either cut services or increase the local property tax rate.