Iowa House Democrats unveil their own property tax plan

DES MOINES, Iowa (Gray Media Iowa Capitol Bureau) – Regardless of whether you own your home or rent, you could get property tax relief, Iowa Democrats say following the release of their new plan.

This comes as Republican lawmakers are working on a sweeping overhaul of the tax system.

During a Thursday press conference, Rep. Dave Jacoby (D-Coralville) said when they’re running for office, property taxes are one of the top issues voters bring up.

“Their frustration is coming to a boiling point because everything we’ve done to date has been totally ineffective,” he said.

Iowa House Democrats’ new plan would give homeowners a $1,000 rebate check. Renters would get a $500 check. It would also freeze property taxes for people 65 and older.

Iowa House Minority Leader Jennifer Konfrst says they want to get relief to homeowners now, rather than waiting a year or two for Republicans to work out their property tax relief plan.

“This is our way to let homeowners and renters finally see property tax decreases or their money coming back to them instead of waiting for another year, another two years, to sit around and talk about the plan and meanwhile their rates are going up,” she said.

The money for the Democrats’ plan would come from the Taxpayer Relief Fund, which has $3.75 billion in it currently. Iowa Republican House Speaker Pat Grassley says that fund is supposed to be used to lower income taxes.

“We know right now that that Taxpayer Relief Fund helps smooth any unforeseen things that happen as we reduce the tax to 3.8 (percent). So, I’d want to see what that direct proposal would look like and how that would impact the income tax cut,” he said.

Homeowners’ would see their property tax increases capped at two percent per year under the Republican plan. Seniors would get a tax credit and veterans would see their exemption increase. The plan also phases out rollbacks and will give homeowners a $25,000 annual exemption.

Grassley says their plan needs more work and Republicans will take their time to make sure they get it right.

“When you’re looking at such a system that’s been in place as long as it has, it’s going to take time and we need to be very deliberate in our approach to make sure we’re not only providing relief, but that it’s something that’s sustainable as well,” he said.

Jacoby can’t yet say whether the rebate checks would be a one time payment or yearly. He says he’s still waiting on some projections, but his goal is to do these rebates over the next three to five years.

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Conner Hendricks covers state government and politics for Gray Media-owned stations in Iowa. Email him at conner.hendricks@gray.tv; and follow him on Facebook at Conner Hendricks TV on X/Twitter @ConnerReports, and on TikTok @ConnerReports.

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