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(Des Moines, IA) -- Property tax reform and a new state budget were approved by Iowa state lawmakers, who endured a 34-hour marathon this weekend before adjourning the legislative session Sunday evening.
The property tax bill would save taxpayers $4 billion over the next six years by capping local revenue growth at 2 percent. It also includes a 10 percent homestead exemption and raises taxes on multi-family units.
Some Democrats complained about the details being worked out at the last minute and having to vote on major issues with little or no sleep.
Lawmakers had been working without pay for two weeks in overtime session.
“We kept our promise by passing meaningful property tax relief and reform...By capping local government revenue growth at 2% with clear and responsible guardrails, this plan brings certainty and discipline to a system that needed both. We’re also quadrupling the Homestead Tax Exemption, raising it to $20,000 so more of a home’s value is protected against taxes. And by lowering school levies while fully maintaining school funding, the state is stepping up to carry a greater share of the responsibility, easing the burden on Iowa taxpayers while keeping our commitment to strong public schools," said Iowa Governor Kim Reynolds.
The property tax reform bill was also embraced by some Democrats.
“From the beginning of this property tax reform effort, Senate Democrats have been guided by the principles that any solution would need to prioritize middle class homeowners and allow our communities to continue providing the essential services on which Iowans rely,” said Sen. Cindy Winckler (D-Davenport). “After countless hours of work spanning multiple legislative sessions, we believe this bill gets us closer to that goal.”
“This legislation isn’t perfect. But it brings real property tax relief for homeowners, avoids the hard cap on our local governments, and moves Iowa away from prioritizing commercial interests,” said Sen. Tony Bisignano (D-Des Moines).
The property tax reform bill and the $9.6 billion budget now go to the Governor's desk for approval.