Just a few years ago, the Tax Foundation ranked Iowa among the worst states for business tax climates. In 2020, Iowa placed 43rd in the State Tax Competitiveness Index. Thanks to the pro-growth policies of Gov. Kim Reynolds and the Legislature, Iowa has since climbed to 17th — a remarkable improvement. Yet despite this progress, Iowa still ranks 33rd nationally in property tax burden.
To provide sustainable tax relief, Iowa must ensure that local government budgets grow no faster than taxpayers’ ability to pay. Limiting spending, coupled with responsible budgeting, is the cornerstone of true reform. Additional steps should also be considered. Local governments can improve efficiency by consolidating services, adopting zero-based budgeting, and regularly reviewing services to el...
For years, Iowans for Tax Relief Foundation has warned that Iowa’s growing reliance on Washington’s money would come with consequences. When the flow of federal dollars slows or stops, programs stall, services falter, and state budgets are left to pick up the pieces. Those warnings have proved correct. From federal policy changes in President Donald Trump’s One Big Beautiful Bill to the current go...
"Property taxes are an issue. And I think voters are being more picky," said Sarah Curry with Iowans for Tax Relief, a group that advocates for lower taxes.Curry says that while some metro voters were willing to accept higher taxes to fund new schools, many Iowans elsewhere were not."When we look statewide, there were actually 25 bonds that passed and 33 failed. Knoxville, Panorama, I-35 — all...
In two opinion essays for Governing, Stephen Legomsky, a law professor emeritus at Washington University and author of “Reimagining the American Union,” argues that many of the nation’s political problems are a direct result of federalism. The root of those problems, he contends, lies with the states. Yet a closer reading of his essays suggests the issue runs much deeper than federalism itself. Hi...
It's important for voters to consider the ask, says ITR President Chris Hagenow."It's separating the wants versus the needs. If something needs to happen, then voters should be aware of that, and that, that obviously, may qualify for voting for a bond," Hagenow says. "These bond decisions are in large part driving the increase year over year in property tax burden. And we think that many times, ...
Across Iowa, local officials are asking voters to approve more than $1 billion in new bond debt this November — often with the soothing assurance that these projects “won’t raise your taxes.” But that promise deserves scrutiny. It’s like paying off your car loan, immediately financing the purchase of a new one, and insisting it doesn’t cost more — just because the monthly payment stayed the same. ...
Taxpayers must be protected from unchecked growth in local government spending. Statewide limits on tax increases would do that while forcing local governments to live within their means. Iowa, where local governments will collect a combined $6.4 billion in property taxes this fiscal year, illustrates the potential impact of such a reform. Over the past two decades property tax collections in the ...
Iowa has been rated as one of the most fiscally prudent states for several years running, due to sound tax and spending policies. Yet thanks in part to a recent downturn in the agricultural economy, economic growth in the state has slowed. Additionally, the state has been losing residents to other states every year since 2013, and has one of the highest outflows of young residents with bachelor’s ...