George is a nice person who buys lunch for his friend, Elaine. He gets a big salad and pays for it. Then, another friend, Julie, turns and hands the salad to Elaine. Elaine thanks Julie for the salad.
Who should get credit for giving the salad? To a rational person (or George), the answer is obvious: the person who paid for it.
From Salad to Property Taxes
In 2021’s tax reform bill, the legislature decided to have the state's general fund start picking up the tab for mental health funding. By removing that cost from the county budget, the mental health levy is completely removed from property taxes. This was intended to give Iowans a little bit of much-needed property tax relief. Now, some counties are trying to take credit for reducing property taxes-- just like Julie took credit for the big salad.
Malarkey!
After reducing the countywide levy rate by 36 cents, one Polk County Supervisor thanked the county staff for working to lower the rate and said, "I wish it could have been more, but I think this was a good step in the right direction."
As President Biden is known for saying, "That's a bunch of malarkey!"
On the surface, Polk County's 36-cent reduction looks significant. However, when the state started paying the bill, it took away a 38-cent mental health levy. So, in reality, the supervisors didn't even pass on all of the promised property tax relief the state provided. Instead, it could be argued that they still owe their citizens two more cents worth of savings.
Let’s also not forget that Polk County received a windfall of new tax revenue from the growth in assessed property values and a new $65 million bond referendum.
What About Your County?
Polk County isn't alone; 48 of Iowa's 99 counties chose not to reduce their total levy by the amount of the FY 2022 mental health levy. Click on the map below to see the levy rates for each county.
Freezing Property Taxes for Senior Citizens
Almost every discussion we have about property taxes includes the opinion that senior citizens in Iowa shouldn't have to pay property taxes, or they should have their property taxes frozen at a certain age.
ITR believes property taxes are too high and a burden for everyone. Seniors, families, young professionals, and those just entering the workforce-- EVERYONE pays property taxes.
The next time you are at a gas station, look at the young mom with three kids in a minivan. She might only be able to buy $20 of gas. Inflation is hitting her family hard. Food, diapers, clothing, utilities, and now her landlord just informed her rent is increasing because property taxes have increased. It is just as difficult for her to increase her income as anyone on a fixed income.
EVERYONE needs property tax relief.
Why Do Property Taxes Increase?
The top three reasons property taxes increase are:
Local government spending
Local government spending
Local government spending
So, let's take the fight to those who determine local government spending: your school board, city council, and county board of supervisors.
Go to ITRLocal.org, look at how your community's property taxes have grown over the last ten years, and use the built-in email form to start conversations with the people who determine your property tax bill.
Income Tax Reform WIN: HF 2317 Passed Senate 32-16 February 24
Passed House 61-34 February 24
Signed by the governor on March 1
Supermajority Requirement to Raise Income and Sales Tax
Constitutional Amendment SJR 2006 Passed Senate Ways and Means Committee March 31
School Choice SF 2369 Passed Senate 31-18 March 30
Referred to House Appropriations Committee April 4 SF 2349 Passed Senate Education Committee February 17;
Passed Senate Appropriations Committee February 21 HSB 672 Passed House Appropriations Subcommittee March 8 HF 2223 Assigned to House Education Committee
Unemployment Insurance Reform HF 2355 Passed House 58-37 March 23
Amended and passed Senate 30-20 March 23
Sent back to the House
Occupational Licensing Reform SF 487 Passed House State Government Committee March 16
Passed Senate 30-17 March 17, 2021
Home-Based Business Protections HF 2431 Passed House floor 66-25 March 10
Passed Senate Commerce Committee March 16
Property Tax Reform HSB 726 Passed House Ways and Means Subcommittee March 7
Certificate of Need Reform HF 2248 Passed Senate Human Resources Committee March 15
Public Assistance Program Integrity HF 2438 Passed House Human Resources Committee February 15;
Passed House Appropriations Subcommittee March 9
TIF Reform HF 2082 Passed House Education Committee January 20;
Passed House Ways and Means Subcommittee February 2
