Property Tax Explainer

Property taxes pay for services Iowans value

Introduced this month, SSB1208 and HSB313 are matching proposals to make sweeping changes to Iowa’s property tax code. As legislators and advocates seek understanding on the potential implications, it is crucial to highlight the important role property taxes play in daily Iowa life.

Key services in schools, cities and counties rely on property taxes

Education: teacher salaries, school facilities and educational programs

Public Safety: fire departments, emergency medical services and police

Infrastructure: roads, bridges, sidewalks and other critical infrastructure

Culture and Recreation: libraries, parks and community centers

County Services: public health, mental health programs and social services

Other Services: cemeteries, sewers and ag extension offices

Schools rely on consistent and predictable property tax funding In Iowa, schools are the largest recipients of property tax revenue. Local school districts depend on property taxes and state aid funding for general operating expenses, building maintenance and construction, and specialized programs like special education. State law requires a uniform property tax levy for school funding, although districts can ask voters to approve additional levies for specified purposes allowed by state law. The proposed reforms would remove nearly $400 million in school funding from property taxes and replace it with state general funds — but can the state afford more general fund expenses at a time when revenues are declining?

Complex property tax system requires cautious legislating