Department of Revenue Request To Correct Error

Iowa legislative leaders are advancing a bill that the Iowa Department of Revenue requested to correct its error in calculating the effects of a 2021 tax reform. The bill’s correction would reduce allowable property tax valuations for multi-residential properties, which in turn would mean steep revenue reductions for local governments, unless they increase their tax levy. A report says the proposed change would impact the development of local government budgets, which are already in the works to meet a state deadline just over two months away.