Iowa’s Next Step: Eliminate the Income Tax

In 2022, Iowa led what has been called a state-level “flat-tax revolution.” The last few years have been historic for state-based tax reform, with the Tax Foundation reporting that 43 states passed some form of tax reform in 2021 or 2022 and in 2023 nearly a dozen states continued the trend. Now, Iowa has the opportunity to build on its previous good work in this area by being the first state in the nation to eliminate its income tax.

Iowa’s Local Option Sales Tax: A Primer

One of the foundational arguments for creating a Local Option Sales Tax was to offset the property tax burden. However, the property tax reduction has not come to fruition for many Iowa communities, leaving citizens with a higher sales tax burden and an increasing property tax burden, too. After the property tax, local sales taxes are the most-important source of […]

Back to School Shopping Should Not Be a Holiday

Sales tax holidays create complexities for tax code compliance, do not promote economic growth or increase consumer purchases, and distract policy makers from truly beneficial tax reforms. School starts for most Iowa students on August 23rd, which means families have already received their back-to-school shopping lists. What better way to get ready for school than to shop during Iowa’s Sales […]

Local Government Property Tax Collection in Iowa

Local governments have a tax and spend mentality. For long-lasting property tax relief to occur, the state legislature must focus on reining in overall spending rather than reconfiguring how spending is done. Conversations about property taxes frequently focus on one of the major taxing bodies: cities, counties, or school districts. And rightfully so, as those three types of local governments […]

Iowa’s 2021 Migration Results

Analysis shows Iowa was following national trends in 2021. Public policy decisions have consequences, as is evident when viewing IRS data on the number of individuals who move and establish residency in new states each year.  While some states like California and Illinois are experiencing an oversized exodus, Iowa did not have a huge gain or loss from domestic migration […]

Tax Cuts Are Not the Problem

Instead of crying wolf every time a minimal amount is cut from their revenue growth, local governments should rein in their spending. The dust hasn’t even settled on a new property tax law that provides tax breaks to seniors and veterans and local governments are already crying wolf. An article published by Axios Des Moines claims the new property tax […]

Encourage Entrepreneurship and Innovation in Key Iowa Industries

As tax and regulatory reforms spur our state’s economy forward, policymakers must ensure regulations do not unnecessarily prevent innovation, new ideas, and new jobs from being created in Iowa. In addition to leading pro-growth tax reform, Governor Kim Reynolds recently issued an executive order initiating a review process to eliminate excessive and unnecessary state regulations. An innovative policy taking hold […]

City Budget Reserves and the Impact on Taxpayers

Some cities may have collected more taxes than they needed and now they’re stockpiling your cash. 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 cities and other local governments […]

Iowa’s Historic Chance to Eliminate Its Income Tax

This article was published in the National Review. The Hawkeye State must keep leading the way with pro-growth, pro-family economic policies. In 2022, Iowa led what has been called a state-level “flat-tax revolution.” The last few years have been historic for state-based tax reform, with the Tax Foundation reporting that 43 states passed some form of tax reform in 2021 or 2022. In 2023, […]

Seniors: Don’t Miss Out On Your New Property Tax Relief

While the homestead exemption will reduce property taxes by exempting a certain amount of a home’s value from taxation, it will be short-lived if local governments are not given a spending limitation. Iowa lawmakers responded to constituent complaints of rising assessments and growing property tax bills with the most comprehensive property tax reform package in over 30 years. One specific […]

Legislature Passes Property Tax Reform Measure

This legislation delivers more transparency and spending restraint for taxpayers. However, future property tax reform must be pursued and include strong budget or spending limits applied to entire local government budgets. A wide-ranging package of property tax reforms were approved inside the Iowa State Capitol this week, as a compromise bill (HF 718) passed both legislative chambers with overwhelming bipartisan […]

Upset About Your Property Taxes?

This article was published in the Cedar Rapids Gazette. A spending limit applied to local governments requiring them to earn a vote of the people to raise spending forces governments to be more accountable and to justify new spending. Taxpayers across the state are upset after receiving their property assessment notices in the mail. Property assessments in Iowa have increased, […]

Voting With Your Feet and the Benefit Principle

 Local government officials should focus less on “keeping up with the Joneses” and more on the core services demanded by their constituents. Property taxes are arguably the most hated tax in Iowa, and rightfully so. The tax bill grows whether or not the homeowner has done anything to the property. Consequently, Iowans for Tax Relief Foundation’s latest poll found that […]

Iowans Feeling the Squeeze

The recent ITR Foundation poll shows Iowans are concerned about their own financial stability and the role inflation and government tax-and-spend policies have on their budget. Iowans are increasingly concerned about the economy, with high inflation and national economic uncertainty contributing to their anxiety. A recent poll conducted by ITR Foundation found that 74.4 percent of Iowans believe the nation is heading […]

Truth-in-Taxation Would Benefit Iowa Taxpayers

This article was published in the Iowa Capital Dispatch. Truth-in-Taxation forces local governments to be more transparent, holds local governments accountable, and provides an opportunity for citizens to have an honest conversation with their elected officials about property taxes. Frustration with high property taxes is reaching a boiling point, especially after taxpayers across Iowa are receiving their assessment notices. Taxpayers […]

President Biden’s Budget Threatens Main Street

Iowa taxpayers and small businesses would be better served if federal policymakers made the TCJA permanent, pushed back on proposed tax increases, and fought inflation by cutting government spending. This article was published in The Cedar Rapids Gazette. The Tax Cuts and Jobs Act (TCJA) brought historic tax relief to taxpayers. Taxpayers and small business owners across Iowa benefited greatly […]

Voter Turnout for Special Election Below November Levels

All bonded indebtedness, voted levies, and other revenue or spending questions that directly affect property taxes should be placed on November election ballots for the greatest possible participation of the electorate. On March 7, 2023, 22 taxing authorities spread across 35 Iowa counties held special elections that included bond questions totaling nearly $400 million in potential new spending. A majority of […]

How to Protest Your Property Assessment in Iowa

Taxpayers who believe their assessments are incorrect have a window between April 2 and April 30 to officially protest them. All real property in Iowa is assessed beginning in January of odd-numbered years. Residential, commercial, and indus­trial properties are assessed according to their market values, while agricultural property is assessed according to its productivity and net earning capacity. Iowans may […]