Lawmakers Reach Deal on IA PropTax, Income Tax Reform
After two and a half years of negotiations, legislators have tentatively agreed on a plan that will reduce commercial property taxes in Iowa, set a slightly lower limit on future property tax increases for homes and farms, AND reduce income taxes as well.
Commercial property tax rates will be cut by 10 percent within three years, a roll-back republicans sought, and a new tax credit will be created for all commercial property owners, something Democrats proposed.
The Democrats’ call for increasing a tax credit for low-income iowans is included in the package, as well as a new tax credit of up to 60 dollars a year for Iowa income taxpayers – something Repubklicans like House Speaker Kraig Paulsen of Hiawatha wanted as a way to deal with unspent or surplus money in the state budget.
The plan also sets a slightly lower, three percent limit on how much assessments on residential and farmland can go up each year. The present limit is four percent. Paulsen says that means the package deals with all classes of property in Iowa.
The package must first be considered and passed in the Senate, then it can go to the House for debate.