County Auditor Voices Skepticism About New Property Tax Law

Mills County Auditor Carol Robertson is voicing concerns about property tax legislation passed by the Iowa State Legislature and signed into law by Gov. Kim Reynolds in May.

The law has been touted as a sweeping reduction in property taxes, but Robertson said the impact won’t be known for months and maybe even years down the road and she is skeptical  the legislation will actually result in a significant tax reduction for the average Iowa homeowner. Instead of putting new limits on revenue growth for local cities and counties, which the law does, Robertson believes the emphasis should have been placed on the assessment process, which has become the subject of growing criticism across the state in recent years.

“You need to be able to cap your assessment,” Robertson said. “I just talked to somebody the other day who said their assessment went up $100,000. That’s a lot.

“To me, that’s where they need to do the work, Fix it up at that end before it goes down to this level.”

The new law limits revenue growth for cities and counties. Any local government that has revenue growth above 3%, will be required to use a portion of that growth to reduce their property tax levy.

“Currently, you’re not supposed to increase the general levy more than $3.50 and the rural services levy $3.95. unless you have a special situation or emergency.,” Robertson said. “Then, you’re allowed to raise it, but you have to have a hearing ahead of time to let the public know, ‘We’re raising this levy to cover these expenses and this is how much more.’”

Mills County has had situations in the past where the levy was raised over the allowable threshold – the 2019 Missouri River flooding that decimated portions of the county and renovation / expansion of the Mills County Courthouse are two examples.
Robertson said limiting revenue growth will force many local cities and counties to dip into their reserve fund to meet general fund obligations.

Mills County Auditor Carol Robertson is voicing concerns about property tax legislation passed by the Iowa State Legislature and signed into law by Gov. Kim Reynolds in May.

The law has been touted as a sweeping reduction in property taxes, but Robertson said the impact won’t be known for months and maybe even years down the road and she is skeptical  the legislation will actually result in a significant tax reduction for the average Iowa homeowner. Instead of putting new limits on revenue growth for local cities and counties, which the law does, Robertson believes the emphasis should have been placed on the assessment process, which has become the subject of growing criticism across the state in recent years.

“You need to be able to cap your assessment,” Robertson said. “I just talked to somebody the other day who said their assessment went up $100,000. That’s a lot.

“To me, that’s where they need to do the work, Fix it up at that end before it goes down to this level.”

The new law limits revenue growth for cities and counties. Any local government that has revenue growth above 3%, will be required to use a portion of that growth to reduce their property tax levy.

“Currently, you’re not supposed to increase the general levy more than $3.50 and the rural services levy $3.95. unless you have a special situation or emergency.,” Robertson said. “Then, you’re allowed to raise it, but you have to have a hearing ahead of time to let the public know, ‘We’re raising this levy to cover these expenses and this is how much more.’”

Mills County has had situations in the past where the levy was raised over the allowable threshold – the 2019 Missouri River flooding that decimated portions of the county and renovation / expansion of the Mills County Courthouse are two examples.

Robertson said limiting revenue growth will force many local cities and counties to dip into their reserve fund to meet general fund obligations.