Advertisement Property tax bill aims at big break on Iowa pocketbooks Share Shares Copy Link Copy

A bill limiting tax increases in Iowa sits on Gov. Kim Reynolds' desk, but the proposal has some lawmakers sounding an alarm.The bill, passed by the Republican-controlled Iowa House and Senate, caps property tax increases at 2"We heard from many Iowans that property taxes were unaffordable," said Chris Ingstad, president of Iowans for Tax Relief.If cities and counties want to raise property taxes by more than 2%, officials must give public notice first and the proposal must pass with a council or board vote of two-thirds or more.Ingstad said the system keeps property tax increases at bay."What we find in other states is it slows the growth of property taxes down," he said. "Local governments will continue to grow. They'll be able to continue to fund everything they need to fund, but they're gonna be looping the citizen in on that process a little more closely than they have in the past."Opponents of the bill are not convinced that the capped property taxes are practical. Rep. Scott Ourth, D-Ackworth, said he fears the bill could have disastrous effects on public safety."This bill is going to create tremendous harm for our communities and for the people who live in them," Ourth said.Ourth said the bill will leave cities and counties hamstrung and could keep important dollars away from fire and police departments.He and fellow Democrats have also been sounding an alarm on pensions.They said the bill takes a class of funds meant strictly for wages and pensions and puts it in the general fund -- having them compete with other priorities.Groups representing police chiefs, sheriffs and firefighters oppose it."I have not had one firefighter or police chief call me and say, 'Hey, it's OK,' " Ourth said. "They've all had alarm in their voices. They've all been extremely upset by this whole thing."Ourth called the bill a broken promise that will make it tough to recruit and keep police and firefighters."When that public safety presence begins to diminish from our communities, you and I are the losers in the end," he said.Meanwhile, bill supporters maintain that pensions will remain untouched."This doesn't touch IPERS," Ingstad said. "IPERS and the other pension systems are contractually obligated, so local governments will continue to fund that."Reynolds said Thursday that she supports reducing property taxes and is watching the bill.She did not say whether she will sign the legislation.