Iowa governor prioritizes property tax reform amid city leaders' concerns
Gov. Kim Reynolds has announced that cutting property taxes is now one of her top priorities, as part of the final Iowa Department of Government Efficiency (DOGE) task force report unveiled this week, sparking mixed reactions from homeowners and city leaders.
Gary Culp, a Des Moines homeowner, expressed his support for lowering property taxes, noting the financial strain they have placed on him.
"It's beginning to be a significant burden. It was about 3,500 bucks seven, eight, nine years ago. Now it's $8,000 a year, which is kind of ridiculous," Culp said.
Reynolds acknowledged the complexity of Iowa's property tax system and the challenges of reforming it.
"Iowa's property tax system is complicated and interconnected, and reforming it is. While it's not an easy proposition. If it was, it would have been done already," she said.
The property tax reform is a significant component of the state's DOGE effort to streamline state and local governments, with the final task force report prioritizing it for the Iowa legislature this winter.
"So at the end of the day, the only way I think that we can really reduce the property tax burden is to maybe find new ways to maybe find better and more efficient ways for government at all levels to deliver services to our citizens," Reynolds said.
Matthew Mitchell, a Drake University associate professor of international business and strategy, highlighted the potential benefits of lower property taxes.
"In Iowa, we do have a relatively higher property tax rate compared to the states right next door to us," he said. "When folks have more money in their pockets, they also invest in their properties. So they upgrade their yards, their homes, their businesses. And that's good for our community. That's good for the, you know, business environment in general."
However, Mitchell also pointed out the dilemma cities face in providing essential services if property taxes decrease.
"I think this is really also a chicken and the egg. You know, do you reduce property taxes to force local governments to be efficient, or do you make investments in local governments to make them more efficient and then respond with an appropriate property tax relief bill? I'm going to be watching for that," he said.
Des Moines City Manager Scott Sanders stated, "Consistent with the state's DOGE process, we are also assessing what further opportunities exist to expand efficiencies, especially through collaborations with other Central Iowa governments. These partnerships will prove invaluable for service consolidations and improvements that better serve our shared residents at decreased costs to our communities."
As lawmakers prepare to return to the statehouse in January, all sides will be working on property tax relief.
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