This week brought the 100th day of the legislative session. Day 100 is the latest day we have with our clerks. I am thankful for Jeff’s hard work this session as he helped me keep up with all the correspondence from constituents in the 51st District. We also moved a bunch of policy bills on the floor this week. My highlight of the week was visiting with students from West Marshall on their field trip. I also had the honor to drop of letters to graduates at each high school in the district.

I started the weekend at the Iowa GOP 4th District convention. Our party is built from the bottom up and I am a product of the grassroots, having attended our conventions since 2008. After the convention, Tracy and I attend the Obria Medical Clinic Legacy of Life dinner. This Sunday, Senator Warme and I took a break from door knocking to enjoy the Colo Historical Association’s ice cream event celebrating Colo’s 150th birthday.

Property Tax Reform

This week was a productive week for our work on property tax reform. We began the week with a subcommittee and public hearing on the Senate’s proposal for property tax reform. This was a chance to take feedback from the public on what parts of the bill they liked and disliked.

On Wednesday, we amended the Senate File to include our latest compromise proposal. By integrating key elements from both chambers and the Governor’s original plan, we are demonstrating our commitment to property tax reform and our resolve to deliver meaningful relief this session.

Our updated proposal maintains House Republicans’ original intention of providing certainty for the taxpayer. To deliver certainty for the taxpayer and real tax relief, this proposal contains provisions to:

Cap revenue growth at 2%, slowing the growth of government spending. This 2% cap excludes new construction, ensuring that cities and counties are still incentivized to grow and includes exceptions for schools and the debt levy.

Convert the homestead credit to an exemption and triple the exemption to $15,000. Funds from the previous homestead credit would be used to buy down the $5.40 levy, providing relief for taxpayers.

Eliminate the backfill of the business property tax exemption and transfer the roughly $125 million to the Taxpayer Relief Fund to deliver additional tax relief.

Gradually increase the share of SAVE money collected from the sales tax devoted to property tax relief from the current 7% to 25% by 2031.

Introduce some common-sense fiscal responsibility practices in local government, like restricting the use of debt service funds for operating expenses and limiting reserve accounts to 35 percent to ensure tax dollars aren’t sitting in stagnant accounts while residents struggle to pay their tax bills. The bills allows for the creation of a new account that local governments can devote funds of over the 35% to save for big infrastructure projects or big equipment expenses, like, for example, a fire truck.

Shift the burden of proof on the assessor when valuation increases by 10 percent or more, so that the government must justify why your bill is going up.

Revamp the informational mailer sent to every property taxpayer to increase transparency and give taxpayers a better idea of where their money is going and how it’s being spent.

Limit TIF districts to 20 years, ensuring this economic tool is used for its intended purpose–temporary development–rather than becoming permanent drains on the tax base.

Create a FirstHome Iowa program modeled after Iowa’s 529 accounts, helping Iowans save for their first home.

This plan isn’t about maintaining the status quo for taxing entities–and we recognize that change can be uncomfortable. However, for too long, the current system has been causing pain for the people we represent. And it’s their discomfort we are addressing in this proposal.

This proposal restores some accountability and focuses on real, tangible relief for all Iowans. We don’t pick winners and losers. We don’t shift one person’s tax burden to another. We deliver real relief for Iowans that will provide $435 million dollars in savings just next year and $4 billion in relief over the next six years.

I continue to solicit feedback from taxpayers and local governments as the property tax conversation continues. I anticipate more movement this week as the House and Senate continue negotiations.

I’m grateful for the opportunity to work hard on your behalf in Des Moines! Follow “Barker for Iowa” on social media channels to stay up to date on my work. Please reach out to me about any questions, concerns or suggestions at brett.barker@legis.iowa.gov.