(Radio Iowa) – A key G-O-P senator has unveiled a new version of a property tax reform package. It no longer provides a 50-thousand dollar property tax exemption for homeowners. Dan Dawson of Council Bluffs — chairman of the Senate Ways and Means Committee — says that one size fits all number didn’t work, since it would wipe out most property tax revenue for small towns where home values are low.

The bill still sets a two percent limit on city and county budget increases, however it would allow local government budgets to rise during periods of high inflation. Iowa Taxpayers Association executive director Nate Ristow (RISS-toh) says that’s area that needs tweaking.

Travis Squires, a financial consultant with Piper Sandler, says the bill changes how much local tax revenue schools may use to pay off the bonds that are borrowed for school remodeling and new construction.

Senator Dawson says many school districts have cash reserves that are too large and districts could use that to offset lost tax revenue for infrastructure projects. Dawson says the bill is a priority for passage before legislators adjourn for the year.

Dawson discussed his latest version of property tax reform during a senate subcommittee hearing this (Wednesday) morning — and he indicated there may be more changes before the bill is debated in the full senate. The bill currently provides 400 MILLION dollars in property tax relief by increasing state support of public schools in the future. Senator Janet Petersen, a Democrat from Des Moines, says that’s a big promise.

Peterson points to the budget plan Governor Reynolds unveiled in January. It called for about 900 MILLION dollars of withdrawals from state reserves for the state spending year that begins July 1st.