House Republicans are offering an expanded property tax plan that will still cap property tax revenue growth for cities and counties at two percent a year. That’s something Gov Reynolds and House Republicans support. House Speaker Pat Grassley says other ideas Senate Republicans and the governor have championed are now in the House GOP proposal.
Governor Kim Reynolds says this development has injected momentum into negotiations.
The gas tax increase included in the bill that passed the Senate last week is not in this new House GOP document. However, it does call for converting the homestead tax credit into a tax exemption for each homeowner — and triple the value to $15,000. The state funding that currently supports that credit would be funneled to public school districts. That move alone is estimated to reduce property taxes statewide by nearly $150 Million. Grassley briefed reporters Thursday morning after meeting privately with House Republicans. Grassley says they knew from the beginning of the year that there would have to be movement toward common ground.
The main architect of the Senate GOP’s property tax plan says there’s obvious momentum behind the Senate’s vision for property tax relief since their bill passed on a 41-4 vote last week. Senator Dan Dawson says Senate Republicans look forward to continuing discussions on how to provide real tax relief to Iowans.
