(Radio Iowa) – The Republicans who lead the tax-writing committees in the Iowa House and Senate have released a revised version of their proposed overhaul of Iowa’s property tax system. It still says property tax rates on existing homes may grow no more than two percent a year — but it would give city and county governments limited leeway to raise property taxes if inflation rates soar. Senator Dan Dawson, chairman of the Senate Ways and Means Committee, says that’s in response to concerns that were raised by local government officials.

“I think we made some really smart adjustments to the bill to keep this advancing in the right direction,” Dawson said, “and to get property tax relief.” Every homeowner would get a 50-thousand dollar property tax exemption — double what was in the original bill. “Making sure that we’re driving relief to that Iowan,” Dawson said, “to make sure they get property tax relief.” And rather than a five-year phase out of a mechanism called “the rollback” that has limited residential property tax growth in Iowa since the late 1970s, this new plan would eliminate the roll back mechanism next year.

“If you just eliminate the rollback and do nothing else, that could be very problematic for Iowa taxpayers, but because we have that 2% revenue restriction in what’s proposed in the bill right there, that’s the insurance policy for all Iowans no matter what kind of property you own, that governments can’t just collect that windfall,” Dawson says. “They only get to collect that first 2% and the rest has to be returned (to taxpayers) through a lower rate.” House Democratic Leader Jennifer Konfrst of Windsor Heights says the bill proposes significant changes to a complicated property tax system.

“Let’s do what Democrats have proposed which is pause,” Konfrst said. “Take some time to really look at it and meanwhile give every homeowner $1000 rebate and every renter a $500 rebate so they can see immediate relief.” Senate Democratic Leader Janice Weiner of Iowa says it’s important to give Iowans time to review the changes made to the original plan. “We’re going through the bill as well,” Weiner says. “I mean, if this bill were to actually lower property taxes for homeowners, especially working Iowans, that would be a positive.”

Republican Representative Bobby Kaufmann, chairman of the House Ways and Means Committee, released a written statement about the updated proposal. Kaufmann says he and Dawson are working on a property tax overhaul focused on property taxpayers who’ve been louder than ever with concerns about the latest round assessment letters.