Senate Leader Jerry Behn Talks Tax Relief in This Week's Update

Submitted by State Republican Leader Jerry Behn

Earlier this week, the Iowa House passed House File 2274, the largest and broadest property tax relief package in the history of Iowa!

This legislation is the only property tax proposal that delivers significant tax relief and genuine and permanent reform to all classes of Iowa’s property tax payers. 

As we know, Iowa currently has the 2^nd highest commercial property taxes and the 16^th highest residential property taxes in the country. In fact, our commercial property taxes are on par with downtown New York City.

Additionally, over the last ten years, school property tax collections have increased 60 percent, counties have increased 64 percent and cities have gone up 74 percent.  Over the same time period, Iowans’ personal income grew by only 46 percent.  

If nothing is done to address our uncompetitive property tax system, Iowans will experience a $2.5 billion property tax increase over the next 10 years, with the majority of that falling to homeowners. 

This plan, passed by the Iowa House and supported by Governor Branstad and Senate Republicans, does not pick winners and losers but instead provides an added emphasis on smaller, Main Street employers.  It creates predictability and stability for all businesses.

Reducing property taxes will help hardworking Iowa taxpayers and will put more people back on the path to landing the career of their dreams right here in Iowa.

Highlights of the plan include:

• All Iowans receive tax relief and limits the shifting of the tax burden
• Job creators receive a $602 million property tax cut
• Homeowners receive a $417 million property tax cut
• Offers a total of $1.2 billion in relief for Iowa property taxpayers

Senate Republicans remain optimistic that a common sense property tax compromise can pass this session that will help re-open Iowa for job creation and career development.

Our state is filled with unlimited potential and authentic and aggressive property tax reform would allow us to realize our opportunities sooner rather than later.

We cannot afford to be like New York City.  We want to make Iowa competitive.

We need authentic and permanent property tax reform.  Let’s make it happen.

As always, I want to hear from you and can be reached by phone at 515-281-3560 or by e-mail at Jerry.Behn@legis.iowa.gov

Jerry Behn

Senate Republican Leader

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