A Des Moines Register poll of Iowa adults conducted in early March found majorities favoring property tax cuts and gradual elimination of the state’s individual income tax. One question asked whether Iowans favor “cut[ting] property taxes, limiting what local governments could spend on services.”
Some counties may be holding on to more reserve funds than necessary. Why the numbers matter. During debate in the 2023 Iowa Legislature over a technical correction related to the taxable value of properties, the spotlight touched on the topic of reserve funds. The correction in question lowers the amount of taxable valuation counties and other local governments can draw from, and […]
Iowa is demonstrating financial resiliency on numerous measures, despite the uncertainty plaguing the broader American economy. The State Revenue Estimating Conference (REC) met on March 10, 2023 to evaluate the current (FY23) and the next two fiscal years (FY24 and FY25). Members on the REC mentioned that Iowa’s withholdings are starting to show impacts from the tax cuts, but Iowa continues to […]
CON laws have decreased competition in Iowa’s healthcare field, resulting in higher medical costs and reduced healthcare access. The news has recently been telling stories about Iowa nursing homes closing and rural hospitals at risk. Iowans are facing higher healthcare costs and fewer options, and one reason is an extremely burdensome regulation called Certificate of Need, or CON. Healthcare providers […]
While taxpayers have a choice whether to stay home or dine out and support area businesses, they should not be forced to pay for a commercial developer’s business loan. This type of tax increase should go to a vote of the people. Do Iowans want to pay supercharged sales taxes when they go out to eat? Will they be excited […]
With two-thirds of the fiscal year behind us, the state is continuing to outperform last year. Iowa’s revenue report for February has been released and the data revealed net General Fund revenue for the month was $35.9 million (5.7%) above the February 2022 net revenue level. When broken down by the three largest sources (personal income tax, sales/use tax, and corporate income […]
The benefit of switching to a set dollar exemption is taxpayers would receive a predictable and permanent form of relief that does not depend on the state’s fiscal situation. A tax bill proposed in the 2023 Legislature would switch Iowa from a credit to an exemption as the form of property tax relief for homesteads — or residents’ primary housing. […]
Iowa county bond information is not easy to acquire. State law should require county auditors to have this information on their website and also require the Secretary of State’s office to aggregate this information so news outlets and interested parties could more easily report on bonds and property tax increases being asked at special elections. On March 7, 2023, thirty-five Iowa […]
A proposed $43 million expenditure will be placed on Urbandale’s March 7th ballot requiring 60% approval to pass. If the special election harbors the same voter turnout as last year’s special election, just 14% of voters could commit their community to tens of millions of dollars in spending. The burden of property taxes is a heavy one for many Iowans […]
Simplifying the tax code and forcing cities to live within the general fund levy rate will result in tax relief for property taxpayers. Over the course of Iowa’s history, the legislature has approved multiple property tax levies dedicated to specific uses in municipalities. Many of these special levies came into existence decades ago and no longer serve a purpose. Iowa […]
Iowans and their state government know how to live within their means; it’s time local governments do the same.
If you are following the 2023 Iowa legislative session, then you know there is a lot of proposed legislation aimed at reforming and lowering the property tax. This is because local governments in Iowa have a spending problem. Since 2000, total property taxes collected have increased nearly 120%, well outpacing inflation. The increased spending has put a burden on taxpayers that cannot be ignored.
Total net receipts YTD are 3.8% more than 2022, with growth in personal income tax, sales/use tax, and corporate income tax. 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. When broken down by the three largest sources (personal income tax, […]
The House’s proposed legislation 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. Just a few […]
Iowa is one of 18 states that have assessment limitations to limit the growth of property taxes. Iowa is somewhat unique, however, because there is no limitation on property subject to rollback. Once calculated, it applies to all properties, even new construction. The property tax revolts of the late 1970s constituted the most significant property tax limitation movement in our […]
Many Iowans have elected candidates who support school choice and property tax reform. However, local governments opposed to these measures use property tax dollars to fund lobbyists to fight against the will of their constituents. While all Iowans can talk to elected officials to voice their opinions, organizations with specific interests in the process of law-making often hire lobbyists to […]
Municipal officials have two major limitations: (1) local governments can only tax their residents as “expressly authorized” by the legislature, and (2) they cannot exercise powers that conflict with state law, meaning it is up to state lawmakers to tell local officials what their powers are. This is an important question for anybody hoping to solve the problem of high […]
Tax year 2023 is the first time taxpayers in Iowa will enjoy savings from this legislation. Some Iowans may see withholding adjustments on their paychecks, while others may not notice changes until next year when they begin to work on their 2023 tax returns. Happy New Year… and happy lower taxes! Iowa made a big splash in the tax world […]
Total net receipts YTD are 4.8% more than 2021, with growth in personal income tax, sales/use tax, and corporate income tax. Iowa’s revenue report for December has been released and the data revealed net General Fund revenue for the month was $267.3 million (43.5%) above the December 2021 net revenue level. When broken down by the three largest sources (personal income tax, […]
As long as spending is under control, the state will continue to be in a strong fiscal position to provide the core government services Iowans expect while continuing to lower taxes and spur economic growth. The State Revenue Estimating Conference (REC) met on December 14, 2022, to evaluate the current (FY23) and next (FY24) fiscal years. December REC meetings are […]
Once Iowa’s tax reform is fully implemented, its tax ranking should jump to 13th-best in the nation — one of the best in the Midwest, leaving the other Big Ten teams in the dust. The Nebraska Cornhuskers are traveling to Iowa City today to play the Hawkeyes, but Iowa has more than a homefield advantage for the game. Football […]
The turkey industry in Iowa employs or supports over 38,000 total jobs and is responsible for as much as $10.64 billion in total economic activity throughout the state. Iowa has a lot to be thankful for this holiday season. Our governor and legislature enacted the largest tax reform in state history, state revenue continues to exceed projections, the state […]
Don’t miss who is truly in charge of your property taxes. When county board, city council, and school board members increase spending, taxes go up; when their spending decreases, taxes go down. It’s as simple as that. We’ve all heard it around our communities: “Watch out: the assessor is coming around, which means property taxes are going up!” or “Don’t […]
Even with continued inflation, a national recession, and a workforce shortage, the state’s net General Fund revenue for the month was $198.6 million (32.7%) above October 2021. Iowa’s revenue report for October has been released and the news for the month continues to depict a positive fiscal situation heading into the holiday season. Even under the weight of continued inflation, […]