Proposal would let cities tax your paycheck - KWWL - Eastern Iowa Breaking News, Weather, Closings

Proposal would let cities tax your paycheck

DES MOINES, Iowa (AP) -- A measure that would allow cities to tax the income of residents to reduce their reliance on property taxes will be proposed to lawmakers when they convene next month.

Cities and counties generate more than 80 percent of their budgets from property taxes and many people believe the system is outdated.

The issue pits local governments and property owners against anti-tax groups that want government to cut costs rather than expand sources of revenue.

State Sen. Joe Bolkcom, D-Iowa City, is co-chairman of a legislative committee that will debate the idea. He says the current tax system is 30 years old and in need of a solution.

Bolkcom says the city income tax would be a good tool to give cities.

The Iowa League of Cities will ask Bolkcom's committee to endorse the city income tax idea on Jan. 7.

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