Property tax reform remains a key issue as Iowa legislative season nears end
As the Iowa legislative season nears its April 21 end date, both chambers may consider bills that have passed by both the Iowa House and Senate committees, appropriations bills, ways and means bills and bills on the unfinished business calendar.
Property tax reform remains a priority for the legislature, and the QC Chamber continues to track proposals in both houses. The House bill was recently amended to incorporate several aspects of the Governor’s proposal. A final Senate compromise is still pending. Below are several key elements we are monitoring:
- HF 2745 (formerly HSB 596): Caps future Tax Increment Financing (TIF) timelines to 23 years and caps all local government revenue growth at 2%.
- SF 2472 (formerly SSB 3001): Limits property tax growth through a budget adjustment factor attached to the Consumer Price Index (CPI). It also eliminates rollbacks and reestablishes multi-residential property as a classification with a new assessment schedule increasing gradually from 70 to 100 percent over 10 years, and allows local governments to increase local option sales tax from 1 to 1.5 cents. The gas tax would automatically increase annually based on CPI.
In addition to property tax reforms, we continue to track the following legislation:
Subacute Mental Health Bill HF 2543 (formerly HSB 2220): This bill includes reforms to expand mental health facility capacity and reduce barriers to treatment. It would remove existing limitations that can prevent individuals in our communities with extreme and long-term mental health needs from receiving appropriate care. Status: House passed 89-0 on March 2, placed on Unfinished Business Calendar on March 19.
IEDA Omnibus Bill SF 2301: While language modifying the 260E training incentive program remains in this funding bill, we are working with our legislative partners in Des Moines to ensure no changes are made to this valuable program without an effective replacement that meets the needs of our local community.
