Iowa Has the Homefield Advantage… with Taxes
To be fair, Nebraska’s policymakers have made good strides in tax policy in recent years, too. It’s just that Iowa has created an even better environment for opportunity in the Midwest.
November 2024 Local Bond Election Results
A total of 48 bonds were on the ballot across the state, and 20 passed, resulting in $623.8 million in new spending. Iowa taxpayers made their voices heard on the potential new $1.1 billion in spending proposed by local governments on November 5, 2024. Ballots in 59 counties, directly affecting 82.4% of the state’s population, included new spending that would […]
Results Are In: 12 Counites Asked for an EMS Property Tax Increase
Seven counties will see a new tax next year to fund emergency management services, or ambulance. A dozen counties across Iowa asked voters on November 5, 2024, to approve a countywide emergency medical services property tax increase to fund ambulance services. Out of that dozen, five failed to reach the necessary 60% threshold to levy the new tax. Background Signed […]
Case Study: Dollars Matter, Not Rates
In the case of Webster City and Hamilton County, the average increase in property tax dollars collected was significantly more than the increase in the rate. When discussing property taxes, local elected officials in Iowa often use variations of the phrase, “We kept the rate the same” or “We didn’t raise the rate.” They say this because it sounds good, […]
Repeat Offenders with Local Government Spending and Taxes
Seventeen local governments are going back to taxpayers for more after recent election asks. Three cities, one county, and 13 schools are going back to taxpayers asking for more money in the November 2024 election despite their other recent ballot measures that asked taxpayers for more money. Six of these local governments recently enjoyed either passage of a bond measure […]
Property Tax Increases on the Ballot in 12 Counties
Voters will be asked to approve funding for emergency medical services (EMS), more commonly referred to as “the ambulance tax.” Current law (federal, state, and local) allows variation in how government entities provide (or do not provide) emergency medical services (EMS), including ambulance services. Iowa’s statutes require local delivery of law enforcement and fire protection, which may deliver first-responder medical […]
New Debt Proposals Exceed $1 Billion for November Election
Taxpayers across 59 counties, representing 82% of the state’s population, will be asked to increase their debt burden. The November 5, 2024, general election ballots in 59 counties will have bond questions. This potential new spending of $1.13 billion would, if enacted, directly affect 82.4% of the state’s population. The bond questions cover a variety of local government types: Nine […]
Federal Tax Law Change Raises Cost of Refinancing Debt for State and Local Governments
State and local governments have enjoyed hundreds of billions of dollars in interest cost savings by refinancing their debt, but that all changed in 2018, costing taxpayers billions. Iowa’s state and local governments have almost $21 billion in outstanding debt obligations, with two-thirds of that total borne by local property taxpayers. The combined debt of Iowa’s cities, counties, and schools […]
Majority of Special Elections Approve Property Taxes; Low Turnout the Norm
Voter turnout for city and county measures was 10.5%, while school measures drew only 8.5%. On September 10, 2024, twenty-one local governments held special elections with property tax measures on the ballot. Unofficial results show most of the measures passed, adding up to nearly $14 million in property tax costs. Ten of the 13 participating school districts succeeded with their […]
September 10th Special Election: More Property Tax Increases on Ballots
Twenty-one local governments are seeking property tax hikes on top of already-elevated assessments. On September 10, 2024, 13 school districts, two counties, and five cities will place property tax questions before voters in a special election. Eleven school districts are requesting a renewal or an increase in physical plant and equipment levies (PPELs), which generate local property tax dollars for […]
The Impact of the Tax Cuts and Jobs Act on an Iowa Family
Making the TCJA permanent would ensure continued financial stability and enable families like mine to focus on what truly matters—raising happy, healthy children in a secure environment. On August 16, 2024, I had the honor of testifying before the U.S. House of Representatives Ways and Means Committee at a field hearing in Des Moines, Iowa, on the impact of the […]
School District Property Tax Pain Index
24 school districts caused Unspeakable Pain according to ITR’s scale (+20%) Any Iowans looking at their property tax bills can see that they keep going up year after year, but how much exactly? And how much property tax pain are you and your family about to experience from the spending decisions your locally elected officials are making? ITR Foundation has […]
City Property Tax Pain Index
Of the 275 cities evaluated, nearly 90% chose to increase the property tax pain on their residents. Any Iowans looking at their property tax bills can see that they keep going up year after year, but how much exactly? And how much property tax pain are you and your family about to experience from the spending decisions your locally elected […]
County Property Tax Pain Index
91 counties increased their property tax revenue on a per capita basis since last year. Any Iowan looking at their property tax bills can see that they keep going up year after year, but how much exactly? And how much property tax pain are you and your family about to experience from the spending decisions your locally elected officials are […]
Waterloo’s Example of Why Iowans Need to Vote on ALL Debt Types
The issue is not what the money is being spent on, but how the board decided to pay for the project. The Waterloo Community School District’s Board of Education wants to modify its buildings to better facilitate student learning. We expect school board members to make such decisions, but a problem arises with how board members agreed to pay for […]
Local Government Taxes Your Income, Too
While the local income surtax is meant to reduce property taxes, experience shows this swap has led only to higher overall tax burdens. The State of Iowa has done a great job lowering our income tax rates, but did you know local governments in Iowa also impose income taxes on their residents? The local income surtax is added to individual […]
Iowa’s Sales Tax-Free Weekend Is Coming Up, but Is It Good Policy?
When a state moves away from sound tax policy, even if it does so with the best of intentions, unintended consequences inevitably follow. If you have kids in Iowa, you probably know that Iowa’s tax-free weekend always begins the first Friday in August. That means for 2024, the shopping holiday will start at midnight Friday, August 2 and run through […]
Property Tax Cap Would Save $250 Million
In fiscal year 2025, local governments will grow property taxes by more than 6%. The start of a new fiscal year on July 1 means the start of new property tax levies for cities, counties, and school districts across Iowa. ITR Foundation has compiled the year-over-year changes in both property taxes and population/enrollment for each of those taxing authorities in […]
How Much Does Your County Have in Reserve?
Some counties may be holding on to more reserve funds than necessary. Why the numbers matter. High property taxes are the number one issue in most Iowans’ minds. When the Iowa Legislature attempts to fix this problem by lowering the amount of property tax counties and other local governments can collect, some claim they will have to cut emergency management […]
Property Tax Rates Under Iowa’s New Notification Law
Transparency requires accurate data and enforcement mechanisms when local governments don’t follow the rules. Taxpayers across the state of Iowa received notices this spring that outlined proposals their local elected officials put forth for property taxes for the upcoming fiscal year. Many citizens expressed concern about the notices because they saw significant increases from the year before. Some city leaders […]
A Look Into the Finances of Iowa’s Community Colleges
Federal, state, and local funding helps subsidize community college tuition costs. As an agricultural state, Iowa has historically had a lot of ground to cover establishing institutions of higher learning. In 1950, only one-third of Iowans aged 25 and over had high school diplomas or more education. The most-recent data from the U.S. Census Bureau raises that figure to 93% of all Iowans. […]
Iowa’s K–12 School Debt Hits New Levels
Iowa public schools’ outstanding debt has reached $5.2 billion, equivalent to 63% of the state’s annual budget. Schools levy more property taxes than any other category of local government in Iowa. And while a large portion of their funding is driven by the school finance formula, the debt they carry is a direct reflection of local decision-making; paying off that […]
Why So Much School Debt Is Not Voter Approved
Revenue bonds do not require voter approval, and they made up 44% of total outstanding K–12 debt in 2023. Iowans are familiar with the bond votes that occur every year for local government, especially those for local school districts wanting to build new facilities or renovate existing ones. Thankfully, the Constitution of the State of Iowa places a limit on […]
Property Tax Reforms Remain Unfinished Business
The last major piece of legislation for 2024 included a technical correction to last year’s property tax law that comes with a lesson. The Iowa Legislature has recently been trying to perfect a construct that is flawed at its core: property taxes. Iowans have one of the highest property tax burdens in the country, ranking the 10th highest among states. While […]
Local Government Guaranteed Income Programs to be Banned
This legislation properly reminds Iowa cities and counties of their expected role, while protecting property taxpayers from funding a flawed poverty prevention program. Taxpayers across Iowa were provided with another protection by the Iowa Legislature this week, as the House and Senate sent a bill to Governor Reynolds that bans local governments from participating in guaranteed income programs. House File […]
