Many Iowa residents are already frustrated with current tax laws.
Proposed Iowa state legislation would cap city and county budgets, essentially slowing down the exorbitant growth in property taxes seen in Iowa over the past 15 years. House Bill HSB 165 would limit the amount a city or county could increase their spending budgets to 2 percent, meaning as property assessments go up, cities and counties don’t get to just spend that extra revenue. Instead any property tax revenue above 2 percent would go towards bringing levy rates down (property tax relief). Iowa voters could also petition for a referendum in their city or county Proposed an increase above two percent.
Over the past 15+ years property tax revenues for cities and counties has increased by over 125 percent, while the state budget has only increased by about 65 percent and the cost of living adjustment (COLA) in that same time has only increased around 43 percent.
NFIB Iowa State Director, Matt Everson, expressed concern over the tax situation in the state and how it affects small businesses. “…obviously if money is going to taxes, it isn’t going to expanding or giving employees raises or creating new business,” Everson said. “Iowa ranks 4th worst in the country for all taxes and 39 out of 50 for property taxes”
Home owners, farmers and businesses are expected to pay a total of $5.75 billion in property taxes this year, according to the Iowa Farm Bureau Federation.