Iowans for Tax Relief President Ed Failor, Jr. releases a statement on property tax increases for next year in Governor Culver’s budget
Iowans for Tax Relief, 2610 Park Avenue, Muscatine, IA 52761
Contact: Katie Koberg, (563) 288-3600 or kkoberg@taxrelief.org
For Immediate Release: Thursday, January 29, 2009
Iowans for Tax Relief President Ed Failor, Jr. releases a statement on property tax increases for next year in Governor Culver's budget
MUSCATINE, IA-Two major property tax increases are in Governor Culver's budget released yesterday.
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Cut funding to Homestead Property Tax Credit: Governor Culver has recommended cutting the Homestead Property Tax Credit from its current funding level of $99.3 million to $49.9 million. This results directly in homeowners property tax bills statewide increasing by nearly $50 million.
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Cut to allowable growth/ state aid: Last year, the Governor recommended and approved 4% allowable growth for school funding. When 4% allowable growth was approved last year, it caused an automatic property tax increase of $47 million. On Wednesday, Governor Culver also recommended capping the state-funded portion of allowable growth, which has the potential to shift as much as $40 million to private, commercial and agricultural property taxpayers.
Ed Failor, Jr., President of Iowans for Tax Relief said today,
"The governor is telling the people of Iowa he is not going to increase taxes, but he is not being honest. He is increasing property taxes by passing the responsibility of making even harder decisions on to local governments. He cut the Homestead Property Tax Credit in half and cuts the state aid to schools which together result in a $90 million tax increase. This will be put on the backs of property taxpayers."
"Governor Culver can say what he wishes, but if it walks like a duck and quacks like a duck, it's a duck. Governor Culver is forcing increased property taxes on the very people who are struggling to pay their home mortgages in these difficult economic times."
More details and an overview of the budget will come in tomorrow's "Watchdog" at http://www.taxrelief.org/.
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