Policymakers need to learn from history that reforms relying on tax shifts, “buy downs,” assessment limitations, and the state swooping in seldom work. At one time, Iowa relied entirely on property taxes to fund state government. In 1921, the state levied its next major tax—a two-cent-per-package “sin” tax on cigarettes. Then, in 1934, as a response to the economic struggles […]
Many of the “Contract with America” conservative policies and reforms remain the foundation of the Republican party today. On September 27, 1994, Republican members of the House of Representatives stood on the steps of the Capitol building and signed the Contract with America. Led by Representatives Newt Gingrich and Dick Armey, the Contract with America outlined a series of conservative […]
The most recent Iowans for Tax Relief Foundation Poll, conducted by Cygnal, shows a majority of Iowans still want protections from income taxes and property taxes, and favor Donald Trump over Kamala Harris in November’s election. Almost 70 percent (68.6%) of those surveyed want the State Legislature to limit the growth of property taxes to 2 percent annually, including a […]
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 […]
Washington, D.C. sets up a game of chicken between Iowa taxpayers and the sunset of the Tax Cuts and Jobs Act. The Tax Cuts and Jobs Act of 2017 (TCJA) delivered significant tax relief to Iowans, from individuals to small business owners. However, key provisions of the TCJA are set to expire in 2025, leading to tax increases across Iowa, […]
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 […]
The benefits of a flat tax go beyond tax relief and economic growth. It makes the tax code simpler, more transparent, and more neutral, reducing both the burden of citizenship and the affliction of social division. On January 1, 2025, Iowa will transition to a 3.8 percent single-rate flat tax. Not only will this historic change provide tax relief for […]
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 […]
This article was featured in the Des Moines Register. Individuals and small businesses should not foot the bill for the federal government’s reckless spending. At the center of America’s heartland, Iowans are becoming more concerned with inflation and the growing economic uncertainty. “Bidenomics” is not working, and, to make matters worse, Iowans, as well as taxpayers across the nation, are […]
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 […]
IRS Migration Data provides insight to where Iowa loses and gains residents. The IRS has released their annual migration data that outlines how people, and their incomes, moved from state to state. The newest data, measuring changes from 2021 to 2022, tracks closely with last year’s release. For Iowa, that means we again realized the most inward migration from Illinois, California, and Nebraska. On the […]
The most recent Iowans for Tax Relief Foundation Poll, conducted by Cygnal, shows a majority of Iowans want protections from property taxes and income taxes, while also demonstrating that Donald Trump has widened his lead over Joe Biden as November’s election nears. Almost 70 percent (69.6%) of those surveyed want the State Legislature to limit the growth of property taxes […]
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 […]
Understanding what policies deserve credit for Iowa’s success allows the state to continue along its successful path. Success has many fathers, according to an old saying, but failure is always an orphan. The secure foundation of Iowa’s fiscal house proves the adage, with both fiscal conservatives and big-government advocates crediting their respective policies. The former claim Iowa’s fiscal health is […]
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 […]
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 […]
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 […]
This article was published in The Waterloo-Cedar Falls Courier, Telegraph Herald, and The Gazette. Unsustainable increases in spending can lead to severe consequences. Iowa’s success in maintaining fiscal discipline is a testament to its effectiveness. Iowa Governor Kim Reynolds and the Republican-led Legislature have emphasized conservative budgeting as a central priority. Such prudence in budgeting is the cornerstone of fiscal […]
This article was published in National Review. The flat tax will now start a year earlier, and at a slightly lower rate, than originally planned. “The headline of this session is simple: Iowa’s income-tax rate will be the 6th lowest in the country,” stated Iowa senate majority leader Jack Whitver. Going into the legislative session, Governor Kim Reynolds and legislative leaders had […]
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