The Iowa Senate kicked off February with a bang by introducing a measure to lower both individual and corporate tax rates, before placing the individual income tax on a path to elimination. Senator Dawson’s bill (SSB1126) would help Iowa maintain its competitive position, while allowing taxpayers to keep more of their hard-earned income.
In local government finance, cities have seven different “funds” that revenue and expenses can be allocated to and within each of those funds, there are five different classifications. Unassigned General Fund dollars are then carried over from year-to-year as a reserve. However, cities are generally unrestricted in how these dollars are spent and many cities are carrying over windfalls of dollars to spend at their leisure.
Iowa’s revenue report for January has been released and the data revealed net General Fund revenue for the month was $0.1 million (0.1%) above the January 2022 net revenue level. Total net receipts YTD are 3.8% more than 2022, with growth in personal income tax, sales/use tax, and corporate income tax.
Governor Kim Reynolds’ Students First Act is not about dollars, but about creating life-changing opportunities for families across Iowa. It is the centerpiece of a larger educational reform effort that places families first and will strengthen education in Iowa.
The Iowa House proposed legislation that would require cities, counties, and school districts to set aside at least 10 percent of the total cost of any project for which bonds are to be issued and require notices be mailed to each property owner with personalized taxpayer information about the effects of potential spending increases on their property tax bills.
Iowans across the political divide are rightly demanding property tax relief. However, property tax reform will not be easy. At the heart of high property taxes is local government spending. Solving Iowa’s property tax problem for the long-term will require a commitment to responsible spending limits.
Iowa is one of 18 states that have assessment limitations to limit the growth of property taxes. Iowa is somewhat unique, however, as all property, even new construction, is subject to rollback. Learn how rollback is figured.