Hunter
04/11/25
Iowa lawmakers unveiled an updated version of their property tax overhaul legislation.
The Gazette reports Republicans’ original proposal included provisions that would have used state general fund dollars to provide about $400 million in school funding currently paid for with local property taxes; provided each household a $25,000 homestead property tax exemption; raised the property tax exemption for Iowa veterans from $4000 to $7000; and provided a property tax credit to Iowans 70 years old and older who make less than 350 percent of the federal poverty level.
The original proposal would also have phased out the state’s “rollback” system that calculates property tax as a percentage of assessed value for residential, commercial and industrial properties by 2030.
After meeting with local governments, business groups and others, the proposal has been tweaked. Some of the changes included phasing out the rollback system by 2026, doubling the homestead tax exemption to $50,000, and providing a minimum budget guarantee in the event of a recession, population loss or natural disasters.
GOP leaders say the goal is to get the bill done this year, but if necessary will continue the refinement of Iowa’s property tax system into next year’s session.