Governor Kim Reynolds on Monday signed a bill into law that she says will provide about 4-billion dollars in property tax savings over six years.
The new law puts a 2 percent cap on city and county general revenue growth. There are exceptions for new construction and levies that fund things like debt service, insurance and employee benefits.
Reynolds says this addresses government spending, which she says is the root cause of property tax increases.
“By capping revenue growth at 2% with clear guidelines and expectations, this bill brings certainty and discipline to a process that needed both,” Reynolds said.
The law also changes the homestead tax credit to a 10% homestead exemption up to $20,000. It lowers property taxes paid to school districts over the next three years, with the legislature promising to pay the difference.
