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 […]
The flat tax represents a significant step toward a simpler, fairer, and more prosperous future, ensuring economic growth and stability for generations to come. In just a few weeks, Iowa will transition to a flat income tax, marking a significant change for the state. Beginning in January 2025, Iowans will experience the benefits of this reform, which allows them to […]
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 […]
To be fair, Nebraska’s policymakers have made good strides in tax policy in recent years, too. It’s just that Iowa has created an even better environment for opportunity in the Midwest.
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 […]
Seven counties will see a new tax next year to fund emergency management services, or ambulance. A dozen counties across Iowa asked voters on November 5, 2024, to approve a countywide emergency medical services property tax increase to fund ambulance services. Out of that dozen, five failed to reach the necessary 60% threshold to levy the new tax. Background Signed […]
Once ranked as one of the worst states (44th) for its tax climate, Iowa is becoming more competitive (20th) and will only improve as future reforms are implemented. The Tax Foundation has released its new State Tax Competitiveness Index, which replaces the previous State Business Tax Climate Index. This updated Index considers not only the business tax environment but also […]
Lowering property taxes is crucial for Iowa’s economic growth and competitiveness, but this will only happen if tax relief extends to ALL taxpayers. A common theme among legislators, regardless of party, is that high property taxes remain a recurring concern among their constituents. This issue is also prominent on the campaign trail. Recently, the Des Moines Register reported that a […]
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, […]
This article was published in the Telegraph Herald and The Gazette. Paring back unnecessary local expenditures and then capping property tax growth at 2% would save taxpayers $250 million a year. Governing magazine crowned Gov. Kim Reynolds among 2024’s leading public officials, lauding conservative reforms that slashed Iowa’s punishing 9% income tax to a lean 3.8% flat rate by 2025. […]
Constitutional protections exist for other state funds, and it is time for Iowa taxpayers to receive that same benefit. Securing the tax reforms already enacted in Iowa by adding protections to the state constitution is essential to preserving the progress made since 2018. These reforms, particularly the shift to a flat tax, have transformed Iowa’s tax system into one that […]
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 […]
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, […]
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