The twelfth week of the legislative session has come to an end. This week was primarily focused on the second major legislative deadline of the year, also known as the second funnel.
This deadline is how the legislature narrows down which bills have the support to move forward through both chambers or possibly be revisited next year. Since House bills needed to be out of committee to be considered for the rest of the session, most of our work this week was in subcommittees and committees.
Last year, Senate and House Republicans worked together to pass the flat tax for all Iowans. On Monday, March 27, the Senate held a subcommittee on Senate Study Bill 1207, a proposed constitutional amendment raising the threshold required to pass income tax increases on hard-working Iowans. Under this amendment, it would take a two-thirds majority vote in both chambers to raise tax rates or the rate of any new income tax on Iowans rather than helping Iowans keep more of what they earn. If SSB 1207 passes both the House and the Senate this year, the proposal would need to be passed again through the following general assembly before going before the people of Iowa for a vote. Senate Study Bill 1207 would be an important protection for the tax policies we have passed over the years and ensure taxpayers would get to keep more of their hard-earned money.
Stories poured in from across the state this week as property assessments started arriving in Iowa homeowners’ mailboxes. The value of a property is of interest to homeowners for several reasons, not least of which is because it is a key aspect determining how much property tax is levied on a property. The Sioux City Journal, Quad City Times, Radio Iowa, and the Cedar Rapids Gazette all published stories about homeowners’ shock and dismay about the increased property assessment. One exasperated homeowner remarked, “How does anyone live a normal life when all you do in the morning is wake up and go work to barely live and pay taxes upon taxes upon taxes?” According to news articles, statewide assessment increases are an average of 20-30 percent this year. Some Iowans saw their property rise by as much as $50,000 or $100,000. Property taxes are difficult for many reasons, but principally they are difficult because they are not tied to Iowans’ income or purchases. Property taxes are tied to the value of a property someone may have purchased decades ago. Their income may have changed because they retired or had another life change. A huge increase in valuations could lead to a huge increase in property taxes. Many Iowans fear that outcome because they have experienced it repeatedly. It does not have to be this way. The problem with property taxes is rarely an unfair valuation. The problem with property tax increases is local government spending and taxation. Since property taxpayers have yet to get the relief they seek at the local level, they have come to their Iowa Senators looking for relief. In the coming weeks, the Iowa Senate will continue its work on controlling property tax increases. Senate File 356 is one bill to address rising property taxes. It gets the property tax system back to basics by reinstating hard caps, consolidating dozens of levies, and closing loopholes regularly abused by local governments.
The Iowa Senate is not asking local governments to do anything differently than the state government has done for the last six years: control spending and return savings to the taxpayer in the form of permanent, sustainable tax relief. If readers do think their valuation exceeds the market value for their homes, they have an option. Taxpayers can challenge their valuations through property tax appeal boards at the county or city level.
I encourage my constituents to continue contacting me using my legislative email ([email protected]) with any comments, questions, or concerns. I look forward to another great week of representing the people of District 42!