Iowa Can Become a Model for Property Tax Reduction: Jonathan Williams & John Hendrickson in Governing
Iowa has been a national leader in pro-growth income tax reforms.
ALEC Chief Economist and Executive Vice President of Policy Jonathan Williams and John Hendrickson of the Tax Education Foundation of Iowa co-authored an op-ed in Governing explaining how limiting local government spending and enhancing the Truth-in-Taxation process would improve the state’s economic outlook.
Iowa’s emergence as the beacon of pro-growth income tax reform is no accident. It’s the result of disciplined budgeting and bold leadership under GOP Gov. Kim Reynolds and forward-thinking lawmakers. The state has paired prudent fiscal management with proactive government reforms, making Iowa a trailblazer in the flat-tax revolution.
That same winning formula — curbing spending and embracing transparency — can be applied to soaring property taxes. By limiting local government spending and enhancing the Truth-in-Taxation process, Iowa has the tools to deliver meaningful and enduring property tax relief for its residents.
All over the country, lawmakers are looking for ways to reduce the property tax burden, which is being exacerbated by rising home prices. In Iowa, property taxes have surged by more than 110 percent over the past two decades. This increase has far outstripped both population growth and inflation, thus placing a heavy burden on taxpayers, particularly those on fixed incomes.
The primary driver of this increase is not rising property values, but unchecked local government spending. As local governments have increasingly relied on property taxes to fund their operations, the gap between the appetite for local spending and taxpayers’ ability to pay has widened.