DES MOINES – A property tax relief bill approved by lawmakers and signed in 2013 is now sending millions in tax dollars back to counties and taxpayers, Governor Terry Branstad announced Tuesday.
Governor Branstad today released data from the Iowa Department of Revenue that shows Iowa counties are receiving over $78.33 million in state backfill funding and taxpayers are receiving over $49 million in credits, for a total of roughly $127.33 million, in the 2013 assessment year, as part of the historic property tax reduction bill advocated for by Branstad and Reynolds. The funding to Iowa counties is part of the historic passage of Senate File 295, which Gov. Branstad signed into law on June 12, 2013, in Hiawatha, Iowa.
“Today, the largest tax cut in Iowa history will become law. I am proud to say this tax cut passed with bi-partisan support in both the Iowa House and Iowa Senate,” Branstad said that day. “This tax relief bill will put more money in the pockets of Iowa families and make it easier for Iowa businesses to invest and grow in our state. I am proud to say that today, we make it easier for Iowa families to grow and thrive in the Heartland of America.”
The historic tax relief package has many benefits for Iowa taxpayers, the Governor said, including:
1. Permanent property tax relief protected by a standing appropriation, that represents the largest tax reduction in Iowa history – $4.4 billion over 10 years.
2. Property tax reduction for all classes of property: agricultural, residential, commercial and industrial, without shift of the tax burden to other classes of property.
3. Changes the school finance formula so that “allowable growth” is replaced by 100% state aid.
4. Commercial and industrial property are being taxed at 95% of assessed value this year, eventually moving to 90% of assessed value next year.
“For thirty years the Iowa Legislature talked about reducing taxes. Lieutenant Governor Reynolds and I are proud that in 2013 we were able to bring Democrats and Republicans together to give hardworking Iowa taxpayers the tax relief that they deserve,” said Branstad. “With the implementation of the historic tax reduction bill of 2013, Iowa counties now have the funds from the state to provide the tax relief to citizens across the state.”
The historic tax reform passage of 2013 received strong bipartisan support. It passed the Iowa Senate 43-6 on May 22, 2013, and the Iowa House 84-13 on May 23, 2013.
Cerro Gordo county had a total state tax relief funding of $1,816,884.99; Floyd county had $579,067.63; Hancock county had $560,235.42; Franklin had $546,173.80; Mitchell had $440,715.40; Butler had $458,702.09; Winnebago had $525,434.61; and Wright had $620,700.13.
[poll random]
