Capitol Notebook: Iowa lawmakers pass dueling property tax cut measures

Iowa Republican state lawmakers must now come together to close the gap on dueling proposals to lower Iowans’ property tax bills after the House and Senate passed separate versions Wednesday.

The House voted near-unanimously to pass House File 718. The bill, in most cases, would prevent a residential or agricultural property tax bill from increasing more than 3 percent annually and 8 percent annually for commercial and industrial property. Improvements or new constructions on a property, though, could lead to a higher tax bill.

The bill would not affect property assessments, but instead require local officials to lower a person’s total property tax bill.

The measure also decreases the amount of school funding that comes from local property taxes, and increases the amount of state funding that will be needed to maintain status quo school funding. The bill would lower by one dollar a property tax that funds public schools — from $5.40 to $4.40 per $1,000 of assessed value for most schools — and direct the state to make up the $204 million difference from Iowa's Taxpayer Relief Fund.

House members also amended the bill to require that a vote on a school or local government bond issue be held during a general election every November. The bill previously allowed votes on local bond referendum only during a general election in even-numbered years.

Both Republicans and Democrats heralded passage of the bipartisan bill as historic.

“We are delivering significant, real, substantial property tax relief to Iowans,” said Rep. Bobby Kaufmann, chairman of the House tax policy committee and a Republican from Wilton.

He said House Republicans continue to have “ongoing positive conversations” with their colleagues in the Senate “that can move toward a final deal.”

With near-unanimous approval, the Iowa Senate passed its version of property tax reform, also on Wednesday.

Sen. Dan Dawson, a Republican from Council Bluffs, introduced the legislation, which would consolidate a number of local property tax levies and place caps on future growth on spending local taxpayer revenues. He said his goal in addressing property taxes was to begin by addressing Iowa’s complex system of local property tax levies.

“We have to defend the Iowa taxpayer out here, because this system is broken and it needs reform,” Dawson said.

Senate File 569 passed the Senate with a 49-1 vote.

While expressing concern that statehouse Republicans’ recent moves to reduce state taxes on income and property will eventually lead to the state relying too much upon the sales tax, Sen. Bill Dotzler, a Democrat from Waterloo, said he was glad to see this property tax bill and was happy to vote for it.

“We need to consider our property taxes. It’s the most unfair tax there is; that’s why I’m happy to get up and support this bill today,” Dotzler said, before also adding a word of caution. “We need to think about the total package here (of state taxes). We need balance.”

Bill would create new apprenticeship office

House lawmakers on Wednesday also passed a bill headed to Gov. Kim Reynolds’ desk that establishes a new Office of Apprenticeship under Iowa Workforce Development.

The office would establish labor standards and rules regarding the registration of apprenticeship programs in the state.

Proponents said the bill will be good for Iowa businesses and workers by streamlining the process for creating, registering, credentialing or modifying existing and new apprenticeship programs in compliance with federal regulations.

Opponents of the bill, including labor unions, fear it could undermine current registered apprenticeships because the office can approve new types of apprenticeships.

Republicans voted down an amendment by Rep. Art Staed, a Democrat from Cedar Rapids, that sought to address those concerns. The amendment also would have required the office to establish rules to deny the application of an apprenticeship program that seeks to train apprentices to perform construction activities unless the apprenticeship program meets U.S. Department of Labor standards.

Newborn Safe Haven Act expanded

Newborn infants could be relinquished to a nonprofit state‐licensed private adoption service provider under the state’s Newborn Safe Haven Act under an amended bill passed by the Iowa House.

House lawmakers on Wednesday concurred with a Senate amendment to the bill requiring employees of adoption service agencies to be certified in First Aid and CPR. The bill, which passed unanimously, now heads to Gov. Reynolds for her signature.

Under current law, a newborn up to 90 days of age may be relinquished to a hospital, health care facility or a first responder.

Proponents said the bill provides an alternative option for a distressed parent unable or unwilling to care for their infant to safely give up custody of their baby, rather than surrendering their child to hospital staff, first responders or state social care workers of whom they may be skeptical, fearful or distrustful.