DES MOINES, Iowa — Gov. Kim Reynolds has signed a massive property tax reform bill into law, with lawmakers believing it will provide Iowans with a break when it comes to their bills.
"To all Iowans who may be watching this, we've listened and relief is on the way," said Rep. Bobby Kaufmann, R-Wilton.
"While we disagree on how we got there I think we agree this is a way to move forward," added Rep. David Jacoby, D-Coralville.
The bill passed unanimously in the Senate, with a sole "no" in the House from Rep. Elinor Levin, D-Iowa City.
The bill consolidates 15 existing Iowa city tax levies into one general fund system. For cities, the bill caps levies at $8.10 per $1,000 of taxable value. For counties, the cap is $3.50 per $1,000 of taxable value, and for rural services, it's capped at $3.95 per $1,000 of taxable value.
The measure also requires local government to take any surplus revenue from growth in assessed values toward lowering their levy.
"I also think the veterans tax credit is is a very good thing to do," said Sen. Cindy Winckler, D-Davenport. "We've all been concerned with property taxes as we saw the new evaluation."
Iowa's veterans are eligible for exemptions of up to $4,000 of taxable value, while Iowans 65 and older are eligible for a tax exemption of up to $6,500 of taxable value.
Republican lawmakers estimate the total cuts to property taxes across the state to equal upwards of $100 million.
"The old days of local government getting assessment windfall and leaving your levy rate the same are over," said Sen. Dan Dawson, R-Council Bluffs. "If the valuations rise, your levy wage rate will fall. What we do here today changes the entire dynamic of our property tax discussions here in this state."