• About Us
  • Advertise
  • Contact Us
  • Privacy Policy
Thursday, March 23, 2023
The Iowa Torch
  • Home
  • State Government
  • Federal Government
  • Local Government
  • Politics
  • Education
  • Opinion
No Result
View All Result
  • Home
  • State Government
  • Federal Government
  • Local Government
  • Politics
  • Education
  • Opinion
The Iowa Torch
The Iowa Torch
No Result
View All Result
Home State Government

Reynolds signs bill fixing 2021 property tax error

A law passed in 2021 inadvertently increased property tax contributions to Iowa's school finances by about $21.4 million annually starting in FY 2024, and lowered the state aid by that amount.

Mary StrokabyMary Stroka
February 22, 2023
in State Government
Reading Time: 2 mins read

(The Center Square) – Gov. Kim Reynolds on Monday signed a bill, SF 181, reversing the state’s 2021 property tax legislation. 

RELATED POSTS

Reynolds signs two bills addressing transgender children

School restroom bill heads to Reynolds’ desk

Iowa House sends government reorganization bill to Reynolds’ desk

The 2021 legislation inadvertently increased property tax contributions to Iowa’s school finances by about $21.4 million annually, beginning in fiscal year 2024, and decreased the state aid appropriation by that amount, SF 181’s fiscal note said.

A JD Supra article said the 2021 legislation combined valuations for multi-residential and residential property when calculating the rollback rate, or an adjustment Iowa makes to limit how much residential property taxes can increase in a given year. The legislation Reynolds signed Monday reduces the rollback rate by 1.84 percentage points, from 56.49 percent to 54.65 percent.

Most local governments have already done their budgeting for the upcoming year with the erroneous information, the article said.

The 2021 legislation probably also increased property taxes owed for fiscal year 2024 and beyond by increasing properties’ taxable value, the fiscal note said.

“The impact on those two classes of properties is a projected maximum annual property tax increase of $111.8 million each year,” the note said.

The actual increase would be lower than that since, in some cases, extra taxable value would lower property tax rates.

The Iowa League of Cities reports that the law would reduce annual city property tax revenue of as much as $39.0 million, which matches up with the potential impact of the 2021 legislation, the fiscal note said.

ADVERTISEMENT

The League also pointed out that since many cities have begun working on fiscal year 2024 budgets, the timing of the bill could raise cities’ financial planning costs because of additional costs for meetings and staff time for budget modifications, the note said.

County auditors will report the valuation by class of property for each taxing district for the 2022 assessment year to the Iowa Department of Management. Valuations will determine levy rates for funding political subdivision budgets for the 2024 fiscal year. Political subdivision budgets must be certified or recertified by April 30 this year. If political subdivisions certify budgets after March 31, protest and appeal time limits must be extended accordingly.

Iowa Department of Management and county auditors will inform cities of how the law will impact budgets, the League said in a Feb. 17 e-newsletter.

Tags: 2021 Iowa Legislative Session2023 Iowa Legislative SessionKim Reynoldsproperty tax
ShareTweetShare
ADVERTISEMENT
Previous Post

Feenstra: American families deserve year-round access to E-15

Next Post

Scott lays out vision for America in visit to Iowa

Mary Stroka

Mary Stroka

Mary Stoka is a freelance writer, editor, journalist, and public relations professional who lives in Chicago, Ill.

Related Posts

State Government

Reynolds signs two bills addressing transgender children

March 23, 2023
Opinion

Hendrickson: Iowa’s fiscal foundation is solid

March 22, 2023
white tiled wall with men s restroom sign
State Government

School restroom bill heads to Reynolds’ desk

March 20, 2023
Iowa’s New Unemployment Rate Holds Steady, Overall Rates Rise
Opinion

Horn: It’s time for employers get serious about Iowa’s untapped workforce

March 17, 2023
State Government

Iowa House sends government reorganization bill to Reynolds’ desk

March 16, 2023
Regents Board President pauses new DEI programs at Iowa’s public universities
Education

Regents Board President pauses new DEI programs at Iowa’s public universities

March 16, 2023
Next Post
Scott lays out vision for America in visit to Iowa

Scott lays out vision for America in visit to Iowa

Ernst Expresses Concern About Trump’s Upcoming Senate Impeachment Trial

Ernst: With the fentanyl epidemic, we need solutions equivalent to the problem.

Sign-Up For Our Daily Updates

Get The Iowa Torch right in your inbox!

Please wait...

Thank you for signing up!

Recommended Articles

(Video) Cindy Axne’s Town Hall in West Des Moines

Grassley, Axne to Hold Town Meetings Following Holiday Weekend

July 3, 2021
AG Barr Honors DCI Special Agent with Distinguished Service in Policing Medal

AG Barr Honors DCI Special Agent with Distinguished Service in Policing Medal

November 20, 2020

Iowa House Panel Tables Change to Iowa’s School Start Date

January 27, 2022

Popular Stories

  • Iowa’s New Unemployment Rate Holds Steady, Overall Rates Rise

    Horn: It’s time for employers get serious about Iowa’s untapped workforce

    0 shares
    Share 0 Tweet 0
  • School restroom bill heads to Reynolds’ desk

    0 shares
    Share 0 Tweet 0
  • Ernst: Biden’s WOTUS whiplash.

    0 shares
    Share 0 Tweet 0
  • Regents Board President pauses new DEI programs at Iowa’s public universities

    0 shares
    Share 0 Tweet 0
  • Iowa House sends government reorganization bill to Reynolds’ desk

    0 shares
    Share 0 Tweet 0

The Iowa Torch

The Iowa Torch​ is a for-profit, news organization that focuses on political news as it relates to Iowans

Categories

  • Education
  • Federal Government
  • Iowa History
  • Local Government
  • News
  • Opinion
  • Politics
  • State Government
  • Uncategorized
  • Uncategorized

Newsletter

Please wait...

Thank you for signing up!

© 2022 The Iowa Torch, a publication of 4:15 Communications, LLC.

No Result
View All Result
  • Home
  • About Us
  • Advertise
  • Contact Us
  • State Government
  • Federal Government
  • Local Government
  • Politics
  • Education
  • Opinion

© 2022 The Iowa Torch, a publication of 4:15 Communications, LLC.