Is Iowa Law in Violation of the Takings Clause?

John Hendrickson and Richard Phillips·
Iowa’s tax sale system allows private investors to acquire property when taxes go unpaid, raising questions about whether homeowners can lose equity that exceeds the amount of taxes owed. Both the Iowa and U.S. Constitutions protect property rights, and the Fifth Amendment’s Takings Clause prohibits the government from taking private property without just compensation. A unanimous 2023 U.S. Supreme Court ruling held that government cannot keep proceeds beyond a taxpayer’s debt, a precedent that may…

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Let’s be honest, big government is big bureaucracy, and common sense tells us big bureaucracy is ineffective. That’s why ITR Foundation works to:

  • Research principled solutions
  • Educate Iowans about our solutions
  • Activate Iowans in support of our solutions

By applying the principles of limited government, free enterprise, and the rule of law to public policy, we can ensure all Iowans will have the opportunity to succeed.

ITR Foundation set the policy groundwork for many recent taxpayer victories in Iowa:

  • Increased property tax transparency and spending restraint
  • A 3.8% flat individual income tax rate
  • Elimination of income taxes on retirement income
  • Elimination of inheritance tax
  • Creating a path to reduce corporate income tax to 5.5%
  • Phasing-out special tax incentives in the corporate tax code
  • Banning local universal basic income programs