Income taxes are paid at the state level and are used for state government functions. Property taxes, on the other hand, are paid at the local level and used for local government functions. There is not a connection between the two types of taxes. In the complex world of taxation, blame for painful bills is tossed around like a scalding […]
This article was published in American Habits. The solution for true property tax relief remains simple: creating more accountability and curbing spending at the local level. In 1934, to provide property tax relief, Iowa levied the state’s first sales and income taxes. Iowa was struggling with the economic impact of the Great Depression, and a sales and income tax provided […]
This article was published in The Gazette. Spending drives taxation. A strict 2 percent property tax cap on the growth of property taxes would force local governments to restrain spending. Iowa has been successful at income tax reform because it has balanced prudent budgeting with pro-growth tax rate reductions. In addition to commonsensical conservative budgeting, Gov. Kim Reynolds also has […]
Tax breaks for businesses that may or may not follow through on their promises? Those are still alive and well. Local governments in Des Moines are doubling down on failed economic development policies, leaving taxpayers and essential public services to bear the cost for years. Elected officials are continuing their economic central planning efforts by subsidizing well-connected corporations and real […]
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, […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
Had the 24 cities and counties examined in this report followed a 2 percent cap over the last decade, Iowans in those communities alone would have $160 million more in their wallets to satisfy their desires, including investing in the future, saving for a rainy day, and attaining their American Dream. OVERVIEW The Problem: Unchecked Property Tax Growth Lessons from […]
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 […]
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 […]
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 […]
This article was published in The Gazette. This cap would not only curb the excessive growth in property taxes but also align local government budgets more closely with the financial realities of Iowa’s families and businesses. Iowans have long despised property taxes, and they aren’t going to develop any warm and fuzzy feelings about them any time soon. Local governments […]
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 […]
A strong, 2 percent cap on the growth of a local government’s property tax collections from year to year should be instituted by the state legislature. Gas is expensive, the cost of groceries continues to rise, and insurance companies say they need to charge more because of the weather. Plus, because we live in Iowa, there’s another big-ticket item we […]
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 […]
Elected officials and bureaucrats always have big “economic development” plans. However, these plans are ineffective and cost taxpayers dearly. The changing fortunes of downtown Des Moines, the people who live and work there, and the companies that call it home should teach us all a lesson on the limitations of local governments’ economic development efforts. In the real world, even […]
This article was published in The Daily Nonpareil. At a time when property valuations are increasing at double-digit rates and inflation is cutting into household budgets, Council Bluffs should be reducing its reliance on property taxes and making them more consistent, not introducing expenses and uncertainty. The $440 million Omaha streetcar project is in the first stages of construction across […]
This article was published in Governing. Iowa policymakers did the right thing in prohibiting localities from creating UBI programs that would not only fail to resolve poverty but also create a fiscal nightmare for taxpayers. The idea of a universal basic income (UBI), whereby a government provides everyone with a certain monthly amount to spend as they wish, is nothing new. […]
“The headline of this session is simple: Iowa’s income tax rate will be the 6th lowest in the country…” The Iowa legislature has adjourned, and this session has resulted in some important pro-growth policy victories that provide further tax relief to Iowans, while also making Iowa’s economy more competitive and government more efficient. As Senate Majority Leader Jack Whitver said, “The […]
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 […]
Counties are cashing in on hefty property taxes from high assessments, and reducing rates won’t halt financial gains. You might hear your county officials complaining they are facing dire straits this year because of the new property tax law. The truth is that too many counties have been cashing in on hefty property taxes from rapidly increasing assessments, and redirecting […]
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