Governor Kim Reynolds has approved the property tax changes that cleared the legislature this week.
The new law requires cities and counties to lower property tax collections based on a new formula that kicks in next year. It’s designed to limit property tax revenue growth after this spring’s assessments showed farmland and home values skyrocketing, which could lead to higher property tax bills in September of 2024. The plan includes more generous property tax benefits for veterans and elderly Iowans.
Reynolds signed the bill into law Thursday afternoon, shortly after the 2023 legislative session concluded. Senate Republican Leader Jack Whitver says lawmakers are listening to property owners.
Senator Dan Dawson, a Republican from Council Bluffs, led development of the bill.
House Speaker Pat Grassley says the bill provides certainty as well as relief to property owners.
Every Republican present and all but one Democrat in the legislature supported the bill. Senate Minority Leader Zach Wahls says Democrats are thrilled middle class families are getting relief and will listen to local officials who are worried about how to implement the changes. House Minority Leader Jennifer Konfrst says Democrats want to make sure seniors and veterans don’t get smaller property tax bills, but wind up losing local services they depend upon.