Download the ITR Property Tax Solution one-page PDF.

City, county, and school budgets are growing beyond the taxpayers’ ability to pay their property tax bill. In fact, they have grown much faster than the state’s population and inflation. 

Over the past 20 years, property taxes in Iowa have grown almost 110 percent, which is more than the combined growth of inflation and population. This is  why Iowans, regardless of political party or rural or urban, are upset about high property taxes. 

Family budgets can’t keep up with local government budgets.

Local elected officials are so wrapped up in their next building project, soccer stadium, glass cathedral, or business incentive they won’t stop. 

The only way to deliver the results Iowans expect is to stand firm and tell local governments to limit their spending. Lawmakers have a responsibility to keep local governments in check and protect taxpayers. There is no other solution.

Don’t just rearrange the deck chairs.

There is no magical formula where if we move this pot of money over here, change that formula, and adjust these assessments, that will fix the problem. 

That won’t work. 

Recent property tax reform legislation hasn’t restrained local government spending. The 2023 law made some positive reforms, but it failed to address the direct cause of high property taxes: local government spending.

Legislators have no other choice than to enact local government
spending restraints.

Iowa has the opportunity to be a national leader in addressing high property taxes by focusing on the root of the problem: local government spending. 

Saying “no” is hard. Every community has special interests pushing for more money, and local leaders want to stay popular.

Learn from the state government.

Iowa’s local governments can learn from how the state manages its budget. Under Governor Reynolds and the legislature, Iowa has lowered income tax rates by controlling spending. The same idea can help with property taxes. Local governments need to limit their spending and focus on providing essential services instead of spending money on things that aren’t necessary.

A two percent cap would allow cities and counties reasonable property tax revenue growth–while forcing them to control their spending. If a cap had been in place for FY 2025, taxpayers would have saved $250 million.

Local governments haven’t followed the state’s example. Why should the state bail them out?

A two percent spending cap is popular idea and the people of Iowa want and support this solution!

“Do you believe the state of Iowa should pass legislation limiting the amount by which local governments can increase property taxes each year to two percent?”

The 2024 property tax notifications were confusing. 

It is essential to redesign the notices to be more taxpayer-friendly, clearly displaying the:

Although local governments often complain about the cost of sending these notices, they remain silent about the cost of mailing tax bills to the same addresses.

Iowans want to know: How much is my tax bill?

Iowa taxpayers deserve to know what cities, counties, and school districts want to take from them before it is too late to speak up. 

A link to a webpage with a tax calculator is not enough. Statements must include the amount an individual’s tax bill will change if the proposed budget is approved. 

The image to the below shows Minnesota’s simple, easy-to-read statement as an example. Yes, tax-and-spend Minnesota lets taxpayers clearly see how much tax pain they will have.

Increasing transparency and public involvement in the budgeting process will create more accountability for local government.