- The League has issued an Action Alert on property tax legislation. Read more below about why you should reach out to your legislators immediately.
- Legislators’ per diem ends today, April 28. The end of the session, also known as sine die, is still unknown but could be as soon as next week.
- The House and Senate have agreed to joint budget targets. This is an indication that the legislature has entered the final stage.
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The 2023 legislative session will likely conclude in the next week. An agreement on property tax legislation has not yet been reached, but it is a subject that will continue to be discussed into the final hours. The House and Senate have passed their own property tax proposal out of their chamber with bipartisan support. The proposals are different and a negotiation between them will need to occur before anything is sent to the Governor. Our understanding is that this negotiation is occurring, but an agreement has not yet been reached. Now is the time to connect with your legislators to explain how any legislation may impact your community.
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On Thursday, the League issued an action alert for property tax legislation. In the final days of session, there has been a renewed energy "to do something" about property taxes. The Senate proposal, House proposal, a combination of the two, or even something entirely new could be proposed and pushed in just a few hours or days.
Contact your legislators and explain the impact on your community.
It is vitally important that you contact your legislator and urge them to know the long-term effects of any bill they consider. You can read the entirety of the action alert on the League’s archive of Legislative Link. At the bottom of this email is a list of forums occurring across the state this weekend. Contacting your legislator by phone or in person is more effective than emailing.
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HF 718 | Property Tax Reform - House Proposal |
- Division 1: Decreases the school’s foundation levy by $1 to $4.40 per thousand dollars of valuation.
- Division 2: Creates a cap on the growth of taxes due on an individual parcel, which is 3% for residential and agricultural parcels and 8% for industrial and commercial parcels. Growth attributable to Urban Renewal Area (URA), previously abated property, "net new" or improved property sits outside the above-described growth cap. This cap also does not apply to debt service levy or referendum-approved indebtedness, voted levies, but does apply to Special Revenue Levies.
- The fiscal note highlights that since 2000, the statewide average growth of a residential property which would be limited to 3% under this legislation was only 3.2% annually. Additionally, the average growth of a commercial property since 2001 was only 4%, well below the 8% cap of the bill. These figures are statewide and averaged more than 20 years, so individual impacts will vary widely.
- Division 3: Requires property tax collecting entities to direct the county treasurer to mail each property owner annual notices, which include the entity’s prior taxes levied, prior effective tax rate, proposed taxes levied, proposed tax rate, a reason for an increase of taxes if there is one, the individual parcel’s assessed value prior, the individual parcel’s current assessed value, amount of taxes due on the parcel prior, amount of taxes proposed on the parcel, and the entity’s share of those taxes proposed on the parcel.
- Division 4: Requires all referendums that approve a bond or indebtedness to take place on the first Tuesday following the first Monday in November. This section is largely problematic and the League will be requesting it to be dropped or significantly altered.
- Please contact your legislators and urge them to fully understand the implications of complex tax policy changes before they vote on it.
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SF 569 | Property Tax Reform - Senate Proposal |
- We have created this webpage to describe this legislation and provide a formula and a model to determine the impacts on your community. The League is registered in opposition to this legislation because of concerns related to unintended consequences, restrictions on future growth, and potential negative impacts on the viability of economic development tools.
- LSA has released this legislation’s fiscal note, which highlights many of the League’s concerns.
- We encourage all League members to discuss with their House members the long-term consequences of this legislation and where your city will struggle to make commitments. The Iowa House will be where this legislation is considered next.
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Legislation Filed Impacting Cities |
A list of all legislation filed this session can be found here.
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Subcommittees can be scheduled or canceled at any time, so the list below will only be accurate for a short time. An up-to-date list of subcommittees can be found here.
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April 28 - Ankeny Legislative Office Hours
Where: Main Street Cafe (2510 SW White Birch Drive, Ankeny, IA 50023)
Time: 9- 10:30 a.m.
Confirmed Participants: Rep. Heather Matson
April 28 - Council Bluffs Legislative Roundtable
Where: Council Bluffs Public Library (400 Willow Avenue, Council Bluffs, IA 51501)
Time: 11:30 a.m. - 1 p.m.
Additional Information: This is open to Council Bluffs Chamber members only. The fee to attend is $10.00 per member. More information can be found here.
April 29 - Eldridge Listening Post
Where: Tasty Cafe (209 East Le Claire Road, Eldridge, IA 52748)
Time: 8 a.m. - 9 a.m.
Confirmed Participants: Rep. Mike Vondran
April 29 - Urbandale Talk with Officials Forum
Where: Urbandale Chamber of Commerce Office (2830 100th Street, Suite 110, Urbandale, IA 50322) and virtual via Zoom
Time: 10 a.m. - 12 p.m.
Invited Participants: Rep. John Forbes; Sen. Brad Zaun; Rep. Eddie Andrews; Urbandale Mayor Robert Andeweg; Polk County Supervisor Robert Brownell; and Urbandale School Board member Katherine Howsare
May 5 - Ames Legislative Wrap-up
Where: Alluvial Brewing Company (3715 West 190th Street, Ames, IA 50014)
Time: 4 - 5 p.m.
Invited Participants: Sen. Jesse Green; Sen. Herman Quirmbach; Sen. Jeff Edler; Sen.Dennis Guth; Rep. Phil Thompson; Rep. Beth Wessel-Kroeschell; Rep. Ross Wilburn; Rep. David Deyoe; and Rep. Shannon Latham
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Our mailing address is:
Iowa League of Cities
500 SW 7th St Ste 101
Des Moines, IA 50309-4506
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