ITR Report Card is unlike anything else in the country, it’s a vital tool that brings transparency and accountability to the forefront—so school boards can focus on what truly matters: student success.
Whether you’re a parent wanting the best for your child, a taxpayer who wants to know how your dollars are being spent, or a community leader shaping policy—this website is for you.
Nebraska’s proximity to Iowa provides a sterling example of how taxpayers can win as state’s put forth competing tax policies. In response to Iowa’s shrinking income tax rates and retirement-tax elimination, Nebraska’s legislature enacted significant income tax cuts of their own in 2023 to remain competitive with their neighbors to the east. But they failed to balance these cuts with corresponding spending restraint — a critical oversight that has led to financial distress.
Each year, property owners receive updated assessments of their real estate values, often leading to concerns that higher assessments directly cause an increase in property taxes. While we don’t want to immediately dismiss every concern about assessments and valuations, we have to remind everyone of the root cause of growing property tax bills: spending decisions made by local governments. Valuations are just one part of the overall property tax equation and do not, by themselves, determine tax increases.
Most Iowans have received their property tax statements in the mail. Many local government officials across Iowa are complaining that these statements are inaccurate and provide taxpayers with misleading information. The reason for this is that each statement contains a hypothetical example of a residential home worth $100,000, along with a 10 percent assessment increase, which is supposed to give taxpayers an idea of how their tax bill will be impacted. These examples rarely mirror reality.
“Spending is the problem. Outrageous property taxes are the symptom,” stated a letter to the editor in The Wall Street Journal. This letter to the editor correctly spending as the problem that is causing high property taxes. Too often the debate surrounding property tax reform tends to focus on property valuations, otherwise known as assessments or appraisals. Although there may be reforms to the valuation process that should be considered, any discussion on valuations only distracts from the most important and needed reform: limiting government spending.
Tennessee and Iowa have quite a bit in common. Both are considered “red states,” with President Trump having won both states handily. Both have strong rural and agricultural ties. And both have generally competitive tax policies, albeit with a few outliers.
Both Tennessee and Iowa have recently pursued significant tax reforms to become even more taxpayer-friendly. Iowa has lowered its income tax rate from 8.98% to 3.8%, eliminated taxes on retirement income, and repealed the inheritance tax. Overall, it ranks as a top 20 state in the Tax Foundation’s “Tax Competitive Index.”
A majority of Iowans support property tax relief, despite opposition from many local government officials and special interests. A recent Iowans for Tax Relief Foundation poll found that over 66% of Iowans favor a 2% cap on city and county property tax collections.
Last week, Senate Ways & Means Chair Dan Dawson and House Ways & Means Chair Bobby Kaufmann introduced a joint property tax reform measure with such a 2% cap, calling it “the biggest property tax overhaul since the 1970s.” If enacted, the bill (HSB 313 and SSB 1208) would provide an estimated $400 million in property tax relief.
The Tax Foundation recently released their updated property tax rankings and Iowa continues to be ranked the 10th highest in the nation. This is not a ranking Iowa should be proud of, and this should motivate legislators to enact meaningful property tax reform that will not only provide tax relief but also improve our standing.
Local governments are warning that limiting property tax growth will hurt communities. They say higher property taxes are necessary for economic growth. We say hardworking families and businesses grow the economy—not rapidly expanding government budgets. If families and businesses have to tighten their belts in tough times, why shouldn’t local governments? Before you buy into the doom-and-gloom about property tax limits, let’s take a closer look.
Future property tax reform must focus on controlling local government spending. A levy or budget limit is the best path forward. By capping the amount of property tax revenue localities can collect, they will be forced to manage spending more responsibly. At its core, taxation is driven by government spending—and if taxpayers want lower taxes, government at all levels must spend less.
On March 4, voters in 46 Iowa counties will go to the polls. In front of them there will be measures from 25 school boards, five city councils, and three county boards. Iowa law allows local governments to propose public measures for taxpayer approval in special elections, typically held in March and September.
As local governments across Iowa prepare for upcoming special elections, many are once again asking voters to approve tax measures—some of which have been rejected in previous elections. With school districts, cities, and counties revisiting these proposals, taxpayers must stay informed about how these decisions could impact their financial future.
Incentives may lure developers and data centers, but Iowa’s high property tax situation should be a “fire bell in the night” for local government officials. High property taxes will deter economic growth. They will discourage new residents, entrepreneurship, and force people to leave.
The real cause of Iowa’s high property taxes isn’t rising assessments—it’s unchecked local government spending. HF 718 was a start, but stronger reforms are needed to protect taxpayers and ensure sustainable growth.
Just as individuals prioritize essential expenses in their personal budgets, local governments must focus their spending on these critical needs. When policymakers discuss taxes and how public revenue should be allocated, the phrases “core government services” and “essential services” often come up. But what do these terms really mean, and why are they so significant?
Cities collectively increased property taxes on their residents by nearly $115 million, even with the restrictions set forth in the property tax reform law. Iowa is home to 940 incorporated cities, and their property taxes increased approximately 7% in total over last year’s collections. That percentage represents almost $115 million more taken from residents in just one year, even with […]
For the first time in state history, local governments collected over $7 billion in property taxes. In fiscal year 2025, Iowa property taxpayers reached an unprecedented milestone. For the first time in state history, local governments collected over $7 billion in property taxes during the fiscal year. This landmark was driven by a 6.79% increase in property tax collections compared […]
The “limits” placed on cities and counties by the recent property tax reform failed to address the direct cause of property tax increases: local government spending. Iowans are growing frustrated with high property taxes. In the last few election cycles, election officials from both political parties have remarked that a top concern that Iowans have shared consistently has been high […]
The average property tax increase for the 75 counties affected by valuation-based restrictions was still 7.6%. After the passage of a property tax reform law in 2023 (HF718), many local elected officials complained that the restrictions on property tax revenue growth limited their ability to provide for their residents. With some time having passed, available data show exactly how many […]
This article was published in the Telegraph Herald. The state’s notorious property taxes, are getting in the way of broader economic prosperity in Iowa and should be lowered for everyone instead of just a select group of economic development projects. Iowa’s elected officials constantly tell us that state and local governments need to offer economic development, tax abatements and other […]
This article was published in Governing. Iowa has helped prompt other states to adopt flat income tax rates. To bring down property taxes, the state has to address local government spending. Iowa’s emergence as the beacon of pro-growth income tax reform is no accident. It’s the result of disciplined budgeting and bold leadership under Gov. Kim Reynolds and forward-thinking lawmakers. […]
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 hot […]
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 […]
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 […]
Stay updated about Iowa's taxes and spending by subscribing to the ITR Foundation newsletter: