ITR Foundation President Chris Ingstad and Research Director Sarah Curry joined the ITR Live podcast to talk about what Indianola property taxpayers are facing and why local governments believe they need so much money.
Why do local governments believe they need so much of your money? In recent years, Iowa property valuations have increased considerably. Large valuation increases usually translate into increased revenue for local governments in the form of property taxes. Given the impact of inflation, we can expect this trend to continue. It will be interesting to see how Iowans manage to bear a growing property tax burden while paying more for gas, groceries, and everything else.
After looking at real estate in Utah, an Iowa couple was shocked at Utah’s low property taxes and declared, “Iowa should do whatever Utah is doing!” They are correct. Iowa should fix its broken property tax system with the solution that has worked in Utah for almost four decades: Truth-in-Taxation.
Do you ever get together with friends and instead of socializing about normal topics, you get thrown into a conversation about taxes? Well, that is exactly what happened to me the other day. Admittedly, having spent most of my career in public policy, it happens to me a lot. This time, however, I wasn’t the one who started it.
Iowa has a long history with property taxes and it is one of the most debated issues, even dating back to before statehood. The very first Legislative Assembly of the Territory of Iowa met in 1838 in Burlington, and one of their primary goals was to develop a revenue system. A few short months later the Iowa Territory created a property tax for residents, levied and collected by the counties – a function which the county still performs to this day.
How’s your property tax bill? If you tell us it’s too high, we won’t argue with you. In fact, we keep proposing solutions to deliver stronger taxpayer protections. But property taxes exist to fund our K-12 education system and city and county governments, as well as other services we all have access to; they are never going away. So maybe […]
Maybe you missed it, but April 3-9 was Affordable Housing Week in Iowa, where one of the main takeaways was that Iowa needs to increase its housing supply. It’s no secret that many states, including Iowa, have a housing shortage. Housing advocacy groups have identified a particular shortage of affordable homes, especially for lower-income Iowa families. In fact, it is such a pressing need that the State has designated $330 million over a five-year period to help aid in the issue.
With inflation and rising interest rates, it’s normal to worry about the national debt and what that means for our country. But what about Iowa and our local communities?
During the last few years, the state of Iowa tightened its belt and has reduced its overall debt burden. However, the combined total of state and local government debt increased by 5.3% to $18.8 billion in FY2021, the highest percentage increase in a decade.
March Madness wrapped up last week with the Kansas Jayhawks being crowned National Champions. While there may not be many Iowans who joined Jayhawk fans in celebrating that victory, there was another win in Kansas that we can all be happy about: property taxes. The map above identifies 21 Kansas counties that actually experienced a decline in property taxes this year.
Before examining what caused the big win in Kansas (the property taxes, not the basketball), we should reflect on the property tax situation in our state. Iowans are demanding property tax relief and nobody can blame them. Even before inflation reached record highs, putting a major squeeze on household budgets, Iowans felt the pain of having a heavier property tax burden than 40 other states.
Most citizens expect the property taxes paid to their city to be used for road maintenance, snow removal, building maintenance, and of course, public safety. These activities are all considered core government services and functions. However, in current times we see some of our city governments spending considerable dollars on things that could be better managed by the private sector – and that’s a problem.
Many people have been probably told by either a parent, grandparent, or even a teacher that “honesty is the best policy.” This rule should also apply to local governments. Taxpayers across the country are demanding answers on why local policymakers cannot deliver property tax relief. In response, a growing number of states are enacting strong Truth-in-Taxation laws that force local […]
Income taxes aren’t the only piece of Iowa’s tax climate that impedes economic growth; our heavy property tax burden is harmful, too. Iowans are increasingly frustrated about their property taxes, likely because their local governments send them a bill that continues to grow each and every year. Thankfully, a solution exists that will benefit all property taxpayers in Iowa. Utah’s direct notification Truth-in-Taxation law has brought real property tax relief to Utah, and more states are starting to pass this pro-taxpayer reform.
By John Hendrickson, Policy Director for ITR Foundation, and Dave Trabert, Chief Executive Officer of the Kansas Policy Institute Iowans are growing more frustrated with high property taxes. A majority of Iowans, 63.4 percent, believe that property taxes are too high. The concern over property taxes surpasses the rural-urban divide and political party identification. Taxpayers are often left wondering […]
Did you know that in 1934, Iowa implemented the first sales and income taxes to lower property taxes? It is never a good policy to create new taxes or raise existing taxes to reduce another tax and today, Iowans suffer from high property taxes and sales and income taxes. Property taxes in Iowa primarily are the major sources of funding […]
Last month, Iowans received their property tax bills, and taxpayers across the state keep asking why their taxes increased so fast. It seems more likely that property taxpayers will see Elvis at their local Casey’s before they see any property tax relief. Iowans across party lines and the urban-rural divide want policymakers to stop making excuses for high property taxes […]
“Today’s legislation ushers in a new era of growth and opportunity in Iowa,” said Governor Kim Reynolds when signing the 2021 tax reform bill passed by the legislature. “But we are not done yet. Next year, I’ll be proposing additional income tax cuts as we continue to make Iowa the most attractive place in America to open a business, raise […]
In many communities across Iowa, local governments continue to ask for more property tax dollars, claiming that critical infrastructure and services will deteriorate without an increase. So, is it possible to reduce spending without sacrificing services? To help answer that question, we sat down with Dave Trabert, CEO of the Kansas Policy Institute. Dave explains how local governments can spend […]
Are you frustrated with high property taxes? Too often Iowans are told by local government officials that nothing can be done to lower property taxes. Governments, at all levels, often forget that the money they spend is generated from your tax dollars. It is not the governments money, yet policymakers have no shortage of reasons why they need to spend […]
How can local governments in Iowa provide tax relief without cutting services? Dave Trabert, CEO of the Kansas Policy Institute, explains how local governments can spend less money if they prioritize spending. Trabert also explains how the recent property tax reform law in Kansas is already working to save taxpayer dollars.
Iowans deserve protection from runaway property taxes. As we look for a solution in Iowa, we recently sat down with the Utah Taxpayers Association to learn how Utah’s Truth-in-Taxation law has provided relief to its citizens. Utah’s Truth-in-Taxation law is considered the most taxpayer-friendly law in the nation and it is the gold standard policy for property tax reform.
In an effort to fill the gaps within the public school system, Royal Legacy Christian Academy opened its doors in 2008. The goal, to provide an affordable and accessible alternative to traditional public schools. Enrollment today continues to grow, as do the grade levels RLCA provides.
Iowans are growing more frustrated with high property taxes and a solution is needed. Since 2000 Iowa property taxes have increased 122 percent more in comparison to population, inflation, and the cost-of-living adjustment for Social Security. The Tax Foundation ranked Iowa with the 10th highest property tax burden in the nation. As a property taxpayer would you consider voicing your […]
Property taxpayers in Iowa keep growing frustrated and they are tired of the blame game that is played by local governments to avoid answering why tax relief is next to impossible. Property taxes fund local governments and often blame is shifted from one tax authority to another to justify why tax bills are high. In addition, local governments also respond […]
Governor Kim Reynolds is growing Iowa’s economy by making the tax code more competitive and ensuring that hardworking taxpayers get to keep more of their money. During her Condition of the State address, the Governor stated that not only do we “need to continue the conversation about cutting taxes,” but she also called for the repeal “of the unnecessary triggers […]
The burden of high property taxes is a source of growing frustration and legitimate concern for taxpayers across the nation. Because property tax systems vary greatly across the states, finding a solution to out-of-control property tax burdens is often difficult for policymakers. Interestingly, states across the country are taking a page from Utah’s book, where a state law has kept […]