Property Tax Reform
January 20, 2012 by Chris
Filed under Newsletters
This week, the House Ways and Means Committee began work on much needed property tax reform. Year after year, escalating property taxes are hurting Iowans’ pocketbooks, and without legislative action, even larger increases on the horizon.
Over the last ten years, school rates have increased 60 percent, county rates have increased 64 percent and city rates have gone up 74 percent. While over the same time period, Iowans’ personal income has only increased by 46 percent.
If we do nothing, the hardworking taxpayers of Iowa are staring down the barrel of a $2.3 billion property tax increase over the next 10 years, with the majority of that falling to homeowners.
Overly burdensome commercial and industrial property taxes negatively impact Iowa’s economy and serve as an impediment to getting Iowans back to work. Our uncompetitive and unpredictable property tax system places a burden on job creators and restricts the ability of businesses to expand, hire or relocate to Iowa.
As the legislature considers several different tax proposals, I am committed to relief that is provided across all tax classifications, including residential. Furthermore, we must create a predictable system, so that taxpayers can plan on their future obligations. Finally, we need to make sure that our plan includes ways to limit future growth.
One interesting component of the most recent House Republican proposal is to have the state pick up a greater share of local school aid. This reduction in how much local school districts need to levy would free up those funds for property tax relief. What remains to be determined is if this proposal would provide as much relief in our community as it does statewide.
Iowa’s current property tax system is incredibly complicated, and unfortunately so are any solutions. It is going to take a lot of work by all interested parties to find an equitable solution.
The bottom line is that just like all of us have tightened the family budget and learned to do less with more, so should all levels of government. I welcome any ideas you might have on to help us craft meaningful property tax relief.
