IA
Iowa Senate Bill SSB1218

Iowa 2023-2024 Regular Session

Iowa Senate Bill SSB1218

Introduced
4/17/23  
Introduced
4/17/23  

Caption

A bill for an act relating to local government property taxes, financial authority, operations, and budgets, modifying certain transit funding, property tax credits and exemptions, and appropriations, requiring certain information related to property taxation to be provided to property owners and taxpayers, modifying provisions relating to fees for driver's licenses and nonoperator's identification cards, modifying provisions relating to certain writing fees, making penalties applicable, and including effective date, retroactive applicability, and applicability provisions.(See SF 569.)

Impact

The bill is poised to affect property taxation significantly by altering the way exemptions and credits are applied. It removes previous requirements for fully funding tax credits which allows local governments to offer these exemptions without the pressure of state funding limitations, thereby empowering municipalities to support their residents better. The changes might lead to an increased financial burden on local budgets as municipalities could have to manage the influx of new exemptions without additional state funding.

Summary

Senate Study Bill 1218 is designed to modify various aspects of local government property taxes, financial authority, and operations in Iowa. It introduces a homestead property tax exemption aimed at homeowners aged 65 and older, increasing the exemption amount for the assessment year beginning January 1, 2024, to $3,250, and then to $6,500 for subsequent years. Additionally, the bill raises the tax exemption for eligible military veterans from $1,852 to $4,000 starting in 2024, signaling support for both elderly and veteran communities in managing their property tax burdens.

Contention

Notable points of contention arise from the bill's repeal of certain financial reporting requirements for counties and cities, affecting transparency in local government operations. Additionally, the increase in the thresholds for property tax-related contract approvals could enable local governments to make larger financial commitments without needing public approval, raising concerns about potential fiscal irresponsibility. Opponents may argue that these changes reduce accountability and could lead to tax increases if municipalities are not careful with budgeting amid new exemptions.

Latest SSB1218 Activity

Companion Bills

IA SF569

Replaced by A bill for an act relating to local government property taxes, financial authority, operations, and budgets, modifying certain transit funding, property tax credits and exemptions, and appropriations, requiring certain information related to property taxation to be provided to property owners and taxpayers, modifying provisions relating to fees for driver's licenses and nonoperator's identification cards, modifying provisions relating to certain writing fees, making penalties applicable, and including effective date, retroactive applicability, and applicability provisions. (Formerly SSB 1218.)

Similar Bills

IA SF569

A bill for an act relating to local government property taxes, financial authority, operations, and budgets, modifying certain transit funding, property tax credits and exemptions, and appropriations, requiring certain information related to property taxation to be provided to property owners and taxpayers, modifying provisions relating to fees for driver's licenses and nonoperator's identification cards, modifying provisions relating to certain writing fees, making penalties applicable, and including effective date, retroactive applicability, and applicability provisions. (Formerly SSB 1218.)

IA HF718

A bill for an act relating to local government property taxes, financial authority, operations, and budgets, modifying certain transit funding, property tax credits and exemptions, and appropriations, requiring certain information related to property taxation to be provided to property owners and taxpayers, modifying provisions relating to fees for driver's licenses and nonoperator's identification cards, modifying provisions relating to certain writing fees, modifying certain bonding procedures, making penalties applicable, and including effective date, applicability, and retroactive applicability provisions. (Formerly HF 1.) Effective date: 05/04/2023, 07/01/2023, 07/01/2024. Applicability date: 01/01/2023, 07/01/2023, 07/01/2024.

IA SSB1125

A bill for an act relating to state and local revenue and finances by modifying sales and use taxes, the charitable conservation contribution tax credit available against individual and corporate income taxes, the water service tax, property taxes, transit funding, and local option taxes, crediting moneys to the natural resources and outdoor recreation trust fund, making appropriations, and including effective date, retroactive applicability, and applicability provisions.(See SF 550.)

IA SF550

A bill for an act relating to state and local revenue and finances by modifying sales and use taxes, the charitable conservation contribution tax credit available against individual and corporate income taxes, the water service tax, property taxes, transit funding, and local option taxes, crediting moneys to the natural resources and outdoor recreation trust fund, modifying allocations of road use tax fund moneys, making appropriations, and including effective date, retroactive applicability, and applicability provisions.(Formerly SSB 1125.)

IA SSB1208

A bill for an act relating to local government property taxes, financial authority, and budgets, modifying appropriations, and including effective date, applicability, and retroactive applicability provisions.

IA HSB313

A bill for an act relating to local government property taxes, financial authority, and budgets, modifying appropriations, and including effective date, applicability, and retroactive applicability provisions.

IA SSB1227

A bill for an act relating to local government property taxes, financial authority, and budgets, modifying appropriations, and including effective date, applicability, and retroactive applicability provisions.

IA HSB328

A bill for an act relating to local government property taxes, financial authority, and budgets, modifying appropriations, and including effective date, applicability, and retroactive applicability provisions.