The Iowa Legislature

State of Iowa

Eighty-Second General Assembly

STATEHOUSE

Des Moines, Iowa 50319

For Immediate Release Contact: Sen. Jeff Angelo

Monday, March 26, 2007 (515) 281-3371

Sen. Angelo Introduces Bill to Fully Fund Property Tax Credits

DES MOINES – State Sen. Jeff Angelo (R-Creston) today filed a bill to ensure local governments get the state funding they have been promised in order to balance their budgets.

Angelo’s bill would fully fund all of the existing property tax credits. The funding measure would cost $195.6 million, a $35 million increase over last year.

“Fully funding the property tax credits will help relieve the budgetary pressure on local governments and ease the burden on property taxpayers,” said Angelo, who is ranking member of the Senate Appropriations Committee.

The most utilized property tax credit is the homestead tax credit, which is available to residential homeowners across the state regardless of income. Fully funding this tax credit would equal $133.9 million.

The second largest credit is the agricultural land tax credit, which would be funded at a cost of $39.1 million. Other property tax credits funded under the legislation include the elderly and disabled tax credit, a cost of $19.8 million, and the military tax credit, totaling $2.8 million.

“It’s important that the state stand behind its funding promises to local governments,” said Angelo. “This bill will ensure that we maintain those commitments.”

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