Argentum’s State Partner, the Iowa Assisted Living Association (IALA), testified last week before Iowa’s House Ways & Means Public in opposition to Senate File 2472, that would modify property taxes for residential property owners. The bill was passed by the House on Wednesday by a vote of 64-23, but is expected to undergo additional changes as it has substantial differences from the Senate version.
The testimony from IALA specifically urged lawmakers not to eliminate the multi-residential rollback. Debbie Fisher, representing IALA and Newbury Management Company, noted that the ongoing labor shortage in the service industry, combined with continuing inflationary pressures have severely impacted operating margins, particularly small assisted living communities located in rural areas across the state. She called on lawmakers to prevent a shift in the tax burden to keep costs within reach of more Iowans, which would also open up more housing stock as seniors move from their single-family homes.
The House bill includes a two-percent “hard” cap on local government revenue growth, which does not permit adjustments for inflation. Additionally, the plan aims to reduce current property tax expenses by converting the homestead tax credit into an exemption and tripling the exemptible tax value to $15,000. The Senate’s version includes a “soft” two-percent cap that allows for inflation adjustments, while recommending modifications to the state’s “rollback” system for calculating property taxes and reverses certain provisions of the 2023 property tax law. The Senate plan also suggests reestablishing a multi-residential property class distinct from residential properties.