Des Moines —
School District Funding
Multi-residential Property Classification
Telecommunications Property Taxation
One of the major concerns raised with the House version of Property Tax Reform has been from local municipalities who are apprehensive about trusting future legislatures with fulfilling the promise made by the current one; Specifically the promise to backfill the revenue losses to local governments due to the 20% rollback. While I agree that is a valid concern, I would also point out that future legislatures would have to take action to defund the backfill. In other words, the backfill to local governments is automatically funded as an on-going expense of state government, in the House version.
Contrast that with the Senate version. Their version of property tax reform would require the legislature to actively appropriate the property tax credit fund from the General Fund on an annual basis. It would not happen automatically. Therefore the Senate version does not lend much confidence and predictability to Iowa businesses as the House version would. The maximum amount that could be appropriated in the Senate’s property tax credit fund would be $250 million. While the House version provides approximately $339 million in property tax relief when fully implemented.