A 2 percent solution to a nonexistent problem [View all]

It is a common canard among the anti-property taxers that city and county governments, those closest to the electorate, are gouging unsuspecting taxpayers. It is their rallying lament, and it requires no substantiation, just confident assertion.

As is frequently the case with made-up woes like this, Iowa House Republicans have a solution. The remedy is House Study Bill 165, a bill to place limits on city and county government property tax growth.

This legislation would set growth in annual property tax levies to no more than 2 percent. If there were new property valuation due to new housing or business investments, those values would be taxed at last year’s tax rate and would then count as part of the base for next year’s 2 percent growth calculation. If a community or county wanted to spend more than the 2 percent limit, it would need to pass a resolution declaring its intentions. If there were opposition to the resolution, citizens could organize to force an election on the matter.

And what is the spending problem that the GOP is addressing? According to the latest Iowa House Republican weekly newsletter, there “seems to be a growing trend by local governments to ride large increases in valuations ….”

Read more: https://www.bleedingheartland.com/2019/04/09/a-2-percent-solution-to-a-nonexistent-problem/