Property tax bill hits Central Lee radar

Central Lee Superintendent Dr. Andy Crozier stands in what will be the new Central Lee Community School District Board room Tuesday morning, following the board regular meeting.

Photo by Chuck Vandenberg/PCC

STUDY TIME

I think we’re all in favor of less taxes – income, property, or whatever, but I think there’s still a lot to understand about how this would work.”

Dr. Andy Crozier, Central Lee Superintendent

DONNELLSON – Central Lee Superintendent Dr. Andy Crozier is skeptical of identical bills circulating the Iowa legislature that would again overhaul the state’s Iowa property tax code.
Part of Senate Study Bill 1208 and House Study Bill 313 is replacing close to $425 million in property taxes paid to schools with additional state funding.
The supplement is part of a bill that would also cap government levy increases at 2%, phase out the state’s rollback over the next five years, expand homestead and veteran exemptions, and give Iowa seniors at least 70 years old making less than 350% of the federal poverty level an additional property tax credit.
The bill was introduced last week in the Iowa House and Senate at the same time.
Crozier encouraged board members at Tuesday’s regular meeting to review the proposed legislation as board members and property owners.
“If you get a chance, you might want to review that. Not just as a school board member but from a property taxpayer's perspective,” he said.
“I haven’t talked a lot about it, but did text our lobbyist and my thoughts were that, while this does reduce property taxes, it puts a greater onus on the state to pay for school aid.
“We’ve talked over the last few years that we haven’t received the 3% to 3.5% for what we would think would be reasonable increases due to inflation. And now you’re wanting to pay more state aid so people have less property tax. Well, how would they keep up with annual growth over time?”
Crozier said the state has already implemented substantial income tax reductions shrinking the state’s overall budget, and now is proposing to expand state aid funding in an effort to reduce property taxes.
“I think we’re all in favor of less taxes – income, property, or whatever, but I think there’s still a lot to understand about how this would work.”
Crozier added that the bill was introduced late in the session and said he thinks that may indicate the bill won’t become law this session. But he quicky admitted he doesn’t always know what the legislature will do.
“I’m going to guess, and I’m really bad at predicting what the legislature does, but  I would guess this doesn’t happen this session and it goes into next session as a priority in January,” Crozier said.
“That way they have plenty of time to understand it. I think if it was a higher priority, we would have seen a bill introduced sooner. We didn’t see the bill introduced until last week. That’s my prediction, and I’m probably wrong, so don’t put much stock in that.”
State Sen. Jeff Reichman (R-Montrose) said the bill was briefed to senate members on Thursday and made available on Friday.
“The bill needed to go to the public so the concept could be vetted, then conversations and questions can hone the bill before the committee process and final floor version,” Reichman wrote in an email Monday.
In other action, the Central Lee board:
• approved a School Food Service Purchasing agreement with the Great Prairie Area Education Association.
• approved the fiscal year 2024 financial audit and a new audit firm for 2025 at about a $45,000 savings.
• approved shared sports agreements with Fort Madison for girls' tennis and boys' and girls' wrestling for next year.