ITR Foundation President Chris Ingstad and Policy Director John Hendrickson joined the ITR Live podcast to discuss the ongoing efforts in Iowa to cut taxes, specifically regarding the skyrocketing property tax burden.
Iowa’s economy is in strong condition. Problems remain, such as the need for more workers to fill the thousands of open jobs throughout Iowa. Nevertheless, thanks to sound conservative fiscal policies from Governor Kim Reynolds and the legislature, the state is on a solid foundation. Conservative budgeting and pro-growth tax reforms are creating a stronger economy. However, national economic headwinds are creating problems and it appears more likely that an economic recession is imminent.
Property taxes are despised. Believe me, I and my organization hear from Iowans of all political stripes about the giant bite property taxes take from family budgets. Now inflation is adding pressure by pushing up the price of gas and groceries, not to mention rising real estate assessments and tax bills.
Rolling blackouts may be coming to the Upper Midwest—including Iowa— this summer, according to an analysis from the North American Reliability Council (NERC), a nonprofit international regulatory authority whose mission is to assure the effective and efficient reduction of risks to the reliability and security of the grid.
Why do local governments believe they need so much of your money? In recent years, Iowa property valuations have increased considerably. Large valuation increases usually translate into increased revenue for local governments in the form of property taxes. Given the impact of inflation, we can expect this trend to continue. It will be interesting to see how Iowans manage to bear a growing property tax burden while paying more for gas, groceries, and everything else.
After looking at real estate in Utah, an Iowa couple was shocked at Utah’s low property taxes and declared, “Iowa should do whatever Utah is doing!” They are correct. Iowa should fix its broken property tax system with the solution that has worked in Utah for almost four decades: Truth-in-Taxation.
The 2022 legislative session was historic for Iowa taxpayers. Nearly two months ago the legislature passed the largest tax relief measure in Iowa history, which was signed into law by Governor Kim Reynolds on March 1. What too many people overlook is that significant tax cuts like Iowa’s are only made possible by years of prudent and conservative budgeting.
Since 2018, Governor Reynolds and the legislature have placed an emphasis on passing tax reforms and restraining the growth of spending. This legislative session delivered the third (and largest) round of tax cuts yet, which was accompanied by a budget for Fiscal Year (FY) 2023 of $8.2 billion. This is a slight increase from the $8.1 billion FY 2022 budget and will likely mean yet another large budget surplus.
Do you ever get together with friends and instead of socializing about normal topics, you get thrown into a conversation about taxes? Well, that is exactly what happened to me the other day. Admittedly, having spent most of my career in public policy, it happens to me a lot. This time, however, I wasn’t the one who started it.