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Yahoo
07-05-2025
- Business
- Yahoo
Senate panel hears feedback on latest version of Iowa property tax bill
Sen. Dan Dawson, R-Council Bluffs and Rep. Bobby Kaufmann, R-Wilton talk to reporters March 6, 2025 about their property tax proposal. The updated version of this package was discussed in a subcommittee meeting May 7. (Photo by Robin Opsahl/Iowa Capital Dispatch) The latest version of a property tax bill discussed by a Senate subcommittee Wednesday is still expected to go through changes before a floor vote — but Sen. Dan Dawson, R-Council Bluffs, said it's still a priority to pass legislation on the issue this year. Restraining property taxes for Iowans has been one of Republicans' priorities for the 2025 legislative session, with leaders saying it was the top issue GOP lawmakers heard about on the campaign trail in the 2024 election. Dawson and Rep. Bobby Kaufmann, R-Wilton, the Ways and Means Committee chairs in the Senate and House respectively, introduced their proposal making major changes to Iowa's property tax system in March as a way to address these concerns. The largest change proposed in Dawson and Kaufmann's bill was to change Iowa's local property tax system from the 'rollback' system of calculation to a 'revenue-restricted' system. 'Rollback' refers to how the state currently limits property tax growth, a system where only a portion of a residential property's value is subject to property taxes. There is a a 3% growth limit on the aggregate value of residential property in the state used to determine how much of a property's value can be taxed each year, which is used by the Iowa Department of Revenue sets the rollback rate. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX The legislative proposal would remove the rollback, potentially allowing for a higher rate of property value growth that would be taxable. To limit property tax increases, the GOP bill instead proposes capping most property tax levy rates to 2% each year and limiting how much in new tax revenues local governments can collect as a way to stop property taxes from rising. Senate Study Bill 1227, the property tax bill discussed in a subcommittee meeting Wednesday, includes these changes. However, it was adjusted from the previous bill to allow local governments to exceed the 2% levy rate growth during times of high inflation, allowing for up to 5% increases as determined by increases in the consumer price index (CPI). While Nate Ristow with the Iowa Taxpayers Association praised the legislation overall, he said he was concerned about allowing higher property tax rates based on CPI. Ristow suggested 'that there be some sort of clarification and incentive in there for communities that don't fully utilize the allowable levy increase.' Dustin Miller, representing the Iowa Chamber Alliance and some local government entities said localities are 'certainly open' to talking about changes to the CPI component of setting levy rate growth limits, but said it was important these changes do not negatively impact communities that are seeing significant growth and investment. 'We want to make sure that new growth language is correct, because I think that's important from a pro-growth standpoint,' What we don't want to do is penalize those communities that are growing, and then certainly we don't want to impinge any existing deals that are out there.' More changes will be added through an amendment brought up by Dawson Wednesday — he said the amendment will create a system to phase out the rollback through a 'hybrid model' for residential properties over a period of 10 years. Another major change to the bill will come in the homestead property tax exemption. While previous versions of the bill included a $25,000 and $50,000 exemption, Dawson said the new proposal will have a property tax exemption of 25% of a home's taxable value, up to $125,000. He said this change will address concerns some local governments brought up about how the flat tax exemptions could cause problems in certain communities based on how property values differ in rural and urban areas of the state. The homestead property tax exemption based on a percentage of a home's value will provide relief for Iowa homeowners without 'taking a lot of communities' property tax base and wiping (it) out unintentionally,' he said. 'I think this gets us pretty darn near close to the end of where the whole system reform lies at,' Dawson said. Other components of the bill include shifting $426 million in K-12 schools from property taxes to the state and a property tax freeze for seniors over age 70 who have incomes at 250% or less than the federal poverty level. Emily Piper with the Iowa Association of School Boards, said she was concerned about how the bill's proposal to shift some current school levies to the Secure an Advanced Vision for Education (SAVE) funding stream, in cases where schools have promised to fund certain projects through bond referendums but are not able to secure funding through the state. 'Using SAVE dollars to backfill more of those additional levy rate raises a concern, because it's open-ended,' Piper said. 'We don't understand how much is going to be going there, and we want to be certain if we're doing that, that we don't inadvertently negatively impact current bonds that are out there because the revenue is not as great as had been projected.' Dawson said many Iowa school districts have cash reserves that could be used to offset lost property tax revenue and move forward with infrastructure projects. Sen. Janet Petersen, D-Des Moines, said she was also concerned about this shift of education funding from local property taxes to the state in the context of the current state budget that draws on the Taxpayer Relief Fund and other reserves to make up for budget shortfalls. 'We need to proceed with caution when we say the state is going to pick up a portion of the tab (for) our schools,' Petersen said. ' So that's one area I'm really wanting to make sure that we're in a decent spot for that, so that our valuable growth and school budgets don't take a hit on that.' She said other parts of the bill, like the homestead tax credit, will 'moving in the right direction' on addressing high property tax costs,. 'This is more reform than it is relief, but I do believe it does maybe put in place some changes to formula and make it easier for Iowans to understand and predict,' Petersen said. While many agreed that changes to Iowa's property tax system were needed, some advocates and legislators have said moving on the bill during the 2025 legislative session may not be feasible. Mike Owen with Common Good Iowa, a progressive advocacy organization, said the group was registered against the bill before the amendment was introduced 'mainly because there wasn't enough time in this session to deal with something so big.' 'There still is not,' Owen said. '… We think it's good to have a new draft, but it would be best used for hearings that are helped throughout the state, throughout the summer and fall, to get a full range of views impacts of this legislation and deal with it next year.' Some legislative leaders, including Senate President Amy Sinclair and House Speaker Pat Grassley, have said they would like to move on property taxes this year, but have not committed to sending a bill to the governor in 2025. Sinclair said in April that Senate Republicans 'want it done right rather than fast.' Dawson said passing a property tax bill remains a priority before the session ends for the year. He agreed that the bill made major changes to the current system, but said these were necessary steps in order to provide substantive property tax relief to Iowans — while saying further adjustments will likely be made. 'We are trying to break the system apart and actually make this something that's more workable for all Iowans,' Dawson said. '… We have a duty to start acting for Iowans and start to reform the system.' SUPPORT: YOU MAKE OUR WORK POSSIBLE
Yahoo
07-03-2025
- Business
- Yahoo
Iowa Republicans release bill that looks to overhaul property tax system
DES MOINES, Iowa — High property taxes is something that Iowans have known well for the last several years, along with city leaders trying to find ways to overcome shortfalls in budgets. Senate Study Bill 1208 and House Study Bill 313 are companion bills that look to overhaul the current property tax system in the state according to the republican bill sponsors. 'In previous years, anytime we've done property tax legislation, it's been calling around the edges, tinkering with in the current system, making incremental improvements to the current system and this bill takes a completely different approach,' said State Representative Bobby Kaufmann (R) District 82 from Wilton. The bill is estimated by the republican sponsors to provide $426 million in property tax cuts, implements a 2% revenue restriction to give relief to Iowans, $25,000 homestead tax credit and gives seniors a property tax freeze if they make less than a certain income threshold. The bill aims to lower tax levies by phasing out a rollback system that hasn't been updated since 1977. These changes would be applied over the next half decade. Snow piles up in Carroll with more snow on the way 'Iowans will get a $400 million property tax cut through basically the state assuming a greater portion of school funding,' said State Senator Dan Dawson (R) District 10, from Council Bluffs. Rep. Kaufmann and Sen. Dawson said the bill was a result of years of conversations with local and city governments. There is no expectation for the bill to move forward quickly as both want the state to see the proposal, and amendments may be added. They both expect the bill to pass this session. Democrat leadership and members of the Iowa House caucus responded to the bill dropping on Thursday afternoon. 'Iowans should be extremely skeptical about the GOP's latest property tax plan. Over the last decade, every attempt by GOP lawmakers to fix Iowa's property tax system has failed. Property taxes just keep going up every year, especially for homeowners. House Democrats believe we need to put money back in the pockets of homeowners and renters immediately.' Rep. David Jacoby (D) District 86 from Coralville Iowa News: 1 killed in Shelby County armed standoff Iowa Republicans release bill that looks to overhaul property tax system Snow piles up in Carroll with more snow on the way WHO 13 Farm Report: Thursday, March 6th Remains of Iowa WWII soldier killed on D-Day identified Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
30-01-2025
- Business
- Yahoo
Iowa House sends proposed casino moratorium to Senate
Rep. Bobby Kaufmann, R-Wilton, spoke on the Iowa House floor Jan. 30, 2025, in support of a bill implementing a moratorium on new casinos in Iowa. (Photo by Robin Opsahl/Iowa Capital Dispatch) With a looming deadline of Feb. 6, the Iowa House approved a bill Thursday that would set a five-year moratorium on new casinos in Iowa. The House passed House File 144 on a 68-31 vote Thursday, a bill establishing a moratorium on new casinos in the state through June 30, 2030. The legislation was quickly moved through the subcommittee and committee process earlier this week as lawmakers supporting the measure seek to prevent the Iowa Racing and Gaming Commission (IRGC) from potentially issuing a license to the Cedar Crossing Casino and Entertainment Center, a proposed $275 million facility in Cedar Rapids, at its meeting scheduled for Feb. 6. Studies commissioned by the IRGC found more than half of estimated revenue from Cedar Crossing would come out of revenue currently headed to existing Iowa casinos. However, the Cedar Rapids proposal was estimated to generate a new $60 million in total statewide commercial gambling revenue by 2028. Rep. Bobby Kaufmann, R-Wilton, who proposed the legislation, said that the measure was necessary because of the impact on existing casinos in Iowa. 'I think the studies show significant cannibalism is very real,' Kaufmann said. 'And I do believe we are in the correct purview to tell the Iowa Racing and Gaming Commission how they should make major decisions. We created them, we change the rules on a nearly yearly basis. A ruling of this significance, I believe should have us electeds' involvement.' Rep. Sami Scheetz, D-Cedar Rapids, said the Iowa Legislature should not impose a moratorium and instead allow the IRGC to 'do its job' and evaluate the Cedar Rapids proposal. He noted the commission previously denied Cedar Rapids casino licenses in 2014 and 2017. He said the IRGC considers factors like market saturation and cannibalization when making its decision, while also looking at a casino proposal's impact on the state's overall gaming revenue when making a decision. The proposal also includes new rules for casino license applications after the moratorium, prohibiting the commission from issuing licenses to new facilities that are projected to impact the adjusted gross receipts of an existing licensed casino by more than 10%, or negatively impact the annual distributions of a qualified sponsoring organization. The legislation also proposes a ban on applications from counties where the IRGC has declined to issue a license within the past eight years. Scheetz said while gaming is a regulated industry, the Legislature is overstepping its bounds by putting 'its thumb on the scale' in favor of existing casino licensees. 'In no other industry in the state of Iowa, do we have (those) kind of anti-competitive rules,' Scheetz said. '… In no other industry in the state of Iowa are you told, 'you cannot enter if you're going to hurt the people that are already there.' That goes against the basic principles of free markets and competition, which is something that I know so many people in this room believe in.' Kaufmann said 'the free market in any capacity does not exist in the Iowa gambling world.' The measure will quickly become available for debate in the Senate, as lawmakers in the chamber also moved to advance casino moratorium legislation Thursday. A companion bill, Senate Study Bill 1069, was approved by a subcommittee and in the Senate Local Government Committee Thursday despite opposition from Cedar Rapids and Linn County officials, as well as advocates with trade organizations. Cedar Rapids Mayor Tiffany O'Donnell asked lawmakers at the Thursday subcommittee meeting to 'play fair and let the process work.' She also said concerns about competition created by the proposed Cedar Rapids casino are not well-founded — and more scrutiny should be put on casino owners like Dan Kehl, CEO of Elite Casino Resorts, who is also building properties in Nebraska and Illinois. 'We've heard the argument before a new casino is going to provide cannibalization and take away revenue from others, except history, frankly, tells us that as simply not true,' O'Donnell said. 'Communities with competing interests within those cities are not just surviving, but they're actually thriving. And let's be honest, when Dan Kehl opened up a casino just across the Nebraska border. I don't recall him asking this body or anyone else whether or not it was okay to compete with us. That's what a free market economy is about. So why are we here today being asked to seek permission to merely compete in our own state?' Matt Hinch, representing Elite Casino Resorts, said the business' two non-Iowa casinos are not near the Iowa border or at risk of cannibalizing the Iowa gaming market. However, he said, a Cedar Rapids casino would pose a significant risk of infringing on existing Iowa casinos' revenue, potentially impacting the livelihood of employees and the local communities' economies. 'We have 19 commercial casinos and four tribal casinos in the state of Iowa — the market is absolutely saturated,' Hinch said. 'Many of these casinos are family businesses that employ lots of Iowans, and having a casino in Cedar Rapids will have a substantial negative impact on those jobs.' The bill was approved unanimously in the subcommittee meeting, and passed through the Senate Local Government Committee. Sen. Zach Wahls, D-Coralville, spoke against the measure, saying that the Legislature was interfering with the IRGC's assigned role and if passed, 'we should have a conversation about ending the Racing and Gaming Commission.' But Sen. Scott Webster, R-Bettendorf, argued lawmakers are charged with setting 'guidelines and guardrails' for the commission — and this bill is part of that duty. He also pushed back against arguments that the moratorium was specifically targeting the Cedar Rapids casino, saying the measure was meant to stop major expansions of the casino industry in Iowa. 'If we think that one casino is the question on this bill, I think we are definitely wrong. This is about casinos throughout the state of Iowa. This is about setting guardrails and setting policy for how that casino expansion happens in our state, before it just rapidly takes off at a pace out of anybody's control completely.' If approved by the Senate, the bill will head to Gov. Kim Reynolds' desk for a final decision. Though the governor has not made a statement on whether she would support a moratorium, Kaufmann told reporters after introducing the legislation he had 'a personal high level of confidence that the governor would consider signing it if we get it done.'
Yahoo
27-01-2025
- Business
- Yahoo
Iowa lawmakers fast-track casino moratorium bill
Rep. Bobby Kaufmann, R-Wilton, spoke at a subcommittee meeting Jan. 27, 2025 on a proposed casino moratorium that would be in place until 2030. (Photo by Robin Opsahl/Iowa Capital Dispatch) House lawmakers are moving quickly on the proposed casino moratorium, passing the measure through a subcommittee meeting Monday with plans to consider it at a full Ways and Means Committee meeting later the same day. House Study Bill 80 would retroactively begin a moratorium on new casinos in Iowa starting Jan. 1, 2025 through June 30, 2030. The legislation would also forbid the Iowa Racing and Gaming Commission (IRGC) from issuing future licenses if a new casino would be projected to impact the adjusted gross receipts of an existing licensed casino by more than 10%, or negatively impact the annual distributions of a qualified sponsoring organization. It also would set an eight-year block on casino applicants from counties where the commission has denied issuance of a license. The moratorium comes as the IRGC is set to make a decision on granting a casino license to Cedar Crossing Casino and Entertainment Center, a proposed $275 million facility, at its Feb. 6 meeting. While advocates representing the project, Cedar Rapids and Linn County said the casino proposal could bring significant revenue to the local community and state at large, those speaking on behalf of existing casinos said much of the revenue brought in by Cedar Crossing would come at the expense of other casinos. Rep. Bobby Kaufmann, R-Wilton, had proposed a moratorium in the final hours of the 2024 legislative session that was not considered by the Iowa Senate before adjournment. Kaufmann said last week that he is hopeful the Senate will take up the measure within the short timeframe this year, as the possibility of a new casino in Cedar Rapids is no longer 'hypothetical.' Kaufmann and speakers representing existing casinos said the Cedar Rapids project could hurt businesses in the state. Frank Chiodo, representing Elite Casino Resorts, the company that owns Riverside Casino and Golf, Rhythm City Casino and Grand Falls Casino, said an estimated 237 jobs would be lost at the Riverside Casino and a $100 million construction project at the Rhythm City casino in Davenport could be on the line if the Cedar Crossing Casino moves forward. 'You have hundreds of millions dollars invested, a bunch of jobs — thousands of jobs — on the line, and we want to change the rules in the middle of the game and wonder why there's concern amongst the industry,' Chiodo said. He added that he believed it was the Legislature's 'responsibility' to pass a moratorium because of the impacts a new casino would have on the state. But supporters of the development said the economic benefits a Cedar Rapids casino would bring to the state outweigh the negative effects. Multiple advocates cited recent studies that found Cedar Crossing is projected to bring in $60 million in total statewide commercial gambling revenue, and would take away less business from other casinos than previous proposals showed. However, the Cedar Crossing project is still projected to have a significant impact on nearby casinos, with a study from Marquette Advisors finding Riverside casino could see a $34 million loss, Meskwaki Bingo Casino Hotel a $14.1 million loss and a drop of $8.8 million at Isle Casino in Waterloo by 2029 due to Cedar Crossing. Some speakers argued that these projections do not mean lawmakers should halt the project, and said that Iowa lawmakers should allow for competition among casinos. Larry Murphy, speaking on behalf of the city of Cedar Rapids and Linn County Board of Supervisors, said he was a member of the Legislature when the gaming industry was first approved in the state. Since then, he said, gaming has become an established, successful industry in Iowa. 'As you contemplate pros, cons on this bill and this much longer discussion, I would encourage you to realize that at this point you have a very strong industry, and there's nothing in the law or the rules to prohibit the competition where some or all of the existing industry, gaming industry, to change their payoffs so that they're more attractive than the new kids on the block in Cedar Rapids,' Murphy said. '… I think it's not fair for a well-muscled industry to come to you and ask you to interfere with the capitalist system.' Rep. Sami Scheetz, D-Cedar Rapids, said allowing for more casinos to enter the space — even if it means more competition for existing casinos — would be a net benefit to the state. 'At a time when we're seeing our gaming revenue go down … it's time for some competition that's going to inject new money into the system,' Scheetz said. 'We're going to hear concerns about job losses. In my other job, I represent workers, so I don't take job losses lightly at all. But there is no competition in free markets where people are not displaced. Our job as state legislators is to look at this holistically, to look at the overall market, and to let the Racing and Gaming Commission do its job.' Kaufmann told reporters last week that arguments about the state casino industry being a free market are a 'fallacy.' 'The Iowa Racing and Gaming Commission is a government body that chooses winners and losers, and the free market does not exist,' he said. In an interview with Iowa Capital Dispatch last week, Cedar Rapids Mayor Tiffany O'Donnell called for lawmakers to allow the IRGC to consider Cedar Rapids proposal. She said she has 'every faith that they are doing their due diligence and will make the decision to the best of their ability,' and called for the Legislature to allow the process to play out — even if it means that Cedar Rapids could again be denied a license, as happened in 2014 and 2017. 'If the governor and the Legislature decide we're going to have a Iowa Racing and Gaming Commission, they need to be able to do more than decide who gets new carpet and who changes a light bulb at a casino,' O'Donnell said. 'They're in place to make serious — not that those aren't serious decisions — but I mean, they're actually in place to make extremely serious decisions, and this is one of them. And for the Legislature to even threaten to get in the way is incredibly distasteful and disheartening.' The House Ways and Means Committee will meet at 5 p.m. Monday to discuss amendments and whether to approve the bill for consideration on the House floor. If approved by the committee, the legislation will become available for debate Thursday. This story is developing and will be updated.
