(Radio Iowa) – Democrats in the Iowa House are proposing a freeze on the property taxes Iowans 65 and older pay on their homes, plus a new limit on property tax increases. Representative Dave Jacoby of Coralville says it would be a four percent annual limit on property tax increases.

“What Iowans would like to know is certainty in their tax liability and that’s what the flat tax that House Democrats are proposing gives them,” Jacoby said, “which is really needed in a time when property and buildings — their taxable values are shooting through the roof.” Until that new limit would take effect in 2027, House Democrats propose one-thousand dollar rebates for homeowners and five-hundred dollar state rebates for renter in each of the next two years — plus the homestead credit would triple immediately.

“We were looking at two things,” Jacoby said, “things that would be truly effective and things that would be immediate.” Jacoby says limiting Iowans’ residential property tax increases to four percent of less would let cities, counties and public school districts maintain critical services. Jacoby says a great percentage of Iowa seniors are on fixed incomes and a freeze on the property taxes they pay will help them stay in their homes.

“We know that they’ve worked hard for 50 plus years,” Jacoby says. “Not that young people aren’t working hard, but we need to have a whole different program or matrix…helping people when they’re younger afford to buy a new house.” House Minority Leader Brian Meyer says Democrats will propose a significant increase in the Iowa Finance Authority’s downpayment assistance program for first-time homebuyers.