The legislative session is almost two months away, but the Iowans for Tax Relief (ITR) team had a busy week engaging legislators, local leaders, and Iowa voters on the topics of property tax reform and spending restraint.
Iowans overwhelmingly want property tax relief, with 72% supporting a 2% cap on total property tax collections, signaling broad bipartisan demand for reform. Local government spending is the primary driver of rising property taxes, meaning any effective reform must focus on controlling spending and improving efficiency. Governor Reynolds is urging local governments to follow the state’s example by...
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...
Iowa voters considered 58 bond proposals totaling more than $1.7 billion in potential new borrowing. A majority (57%) of those proposals failed, with only 25 proposals (43%) gaining approval. Many repeat proposals were rejected again, showing continued taxpayer concern about property taxes and government spending. Just over $1 billion in new debt was approved, with nearly $700 million denied.
Yet despite the high cost of borrowing, 55 bond proposals totaling more than $1.6 billion will be on the ballot for Iowa voters this November. Even more striking in this interest rate environment is that 18 local governments — 15 school districts, two counties, and one community college — are returning with repeat bond requests.
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. ...
Iowa taxpayers are being asked to carry more each year, with little say in how much heavier the load becomes. Rising property taxes are not the result of some mysterious formula—they stem from local government budgets that grow faster than family budgets.
Take a look at your school district's taxes, spending, and student achievement.