The Iowa Senate

State of Iowa

Eighty-First General Assembly

STATEHOUSE

Des Moines, Iowa 50319

For Immediate Release Contact: Kimberly Steenhoek

Tuesday, Jan. 31, 2006 (515) 281-6571

Senate Republicans File Bill to Freeze Seniors’ Property Taxes

DES MOINES – Low-income seniors could soon have their property taxes frozen under legislation introduced today by Republicans in the Iowa Senate.

“Seniors who live on a fixed income are hit particularly hard by the cost of rising property taxes,” said Senate Republican Leader Stewart Iverson (R-Clarion). “Our plan would help seniors so they don’t have to choose between buying their prescription drugs and paying their property taxes.”

The bill would freeze homestead property assessments for Iowans age 65 and older with incomes less than $25,000. The measure also protects seniors from a hike in the tax levy so that taxes on qualifying properties do not increase once the assessment is frozen.

“Assessments have gone up, but the incomes of many seniors stay the same,” said Senate Co-President Jeff Lamberti (R-Ankeny). “We want to freeze assessments so that seniors will not see their property taxes increase, even if their local government raises the tax levy. By freezing property taxes, we can help more seniors stay in their homes.”

In Iowa there are approximately 135,000 senior households that have annual incomes less than $25,000.

The state currently provides a property tax credit for seniors with annual incomes less than $18,346. The maximum credit an individual can receive is $1,000.

“We are not doing away with the current credit,” said Sen. Jeff Angelo (R-Creston). “This legislation is another way we can provide property-tax relief to low-income seniors so that more of their money is available for life’s necessities.”

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