The following is a legislative update from State Representative Christian Hermanson (R–Mason City), representing District 59 – the eastern half of Cerro Gordo county – in the Iowa Legislature:
Property Tax Reform: Why Your Voice Matters Locally
With things moving a bit slower at the Capitol this week, it is the perfect time to touch on one of the most important issues we are tackling property taxes. While we are working hard on legislation at the state level to provide serious structural reform, many of our local government bodies are currently holding their own tax and budget hearings. This makes it an opportune time to pull back the curtain on how our property taxes actually work and where your hard-earned money goes.
The Reality of Property Taxes
A common myth is that property taxes are a “state tax.” In reality, the state of Iowa never sees a dime of your property tax. Every dollar collected stays right here in our community. These funds are used to support the local services we rely on every day, including:
K-12 Schools: Typically, the largest portion of your tax bill, often accounting for nearly 50%.
Public Safety: Funding for local police, the Sheriff’s Office, and fire departments.
Infrastructure: Maintenance and repair of city streets and county roads.
Local Governance: Support for libraries, parks, and public health departments.
Spending Drives the Bill
When you see your property assessment go up, it is easy to blame the Assessor. However, the assessment is only the tool used to divide the pie. The size of the pie itself is determined by spending.
As many who advocate for property tax relief point out, increasing property taxes are almost always the result of increased spending. If a local government board or council decides to increase its budget, your tax bill will rise regardless of what the state does with assessment limitations. True relief only happens when local governments practice the same fiscal restraint we have worked so hard to implement at the state level.
Who is Accountable?
Since property taxes stay local, the people responsible for your tax bill are our local elected officials. There are three primary groups that determine the vast majority of your property tax burden:
Local School Boards: Set the budgets and levy rates for our school districts.
City Councils: Manage spending for services and infrastructure within city limits.
County Board of Supervisors: Oversee county-wide services
These boards are required to hold public hearings before they adopt their annual budgets. If you want to see a change in your property tax bill, these meetings are the most important place to have your voice heard. Earlier this week I heard from a constituent who attended a public tax hearing right here in Mason City. In a community of nearly 28,000 residents, only 11 people showed up to the meeting. Out of those 11, only 4 individuals actually spoke up about the proposed tax increase. Now, I am not here today to argue for or against any specific tax rate, but I will say that this level of complacency is what leads to trouble. We cannot expect a different outcome from our local government if we do not actively participate in the process.
Know Your Local Elected Representatives
Accountability starts with knowing who to call. The Cerro Gordo County Auditor provides an excellent, comprehensive list of every elected official serving our area. Whether it is your city council, school board, or county supervisors, you can find their contact information here: cerrogordo.gov/about/elected_officials
As we continue to work on meaningful property tax reform in Des Moines, I encourage you to stay engaged with our local boards and councils. Go to their meetings, attend their tax and budget hearings, and let them know how you feel. We must work together at every level of government to ensure that Iowa remains an affordable place to live, work, and raise a family.
Ultimately, we must never forget that government was created to serve the citizens, not the other way around. Every dollar collected in property taxes represents your hard work, or that of a neighbor, or a small business owner. It is the responsibility of elected officials at every level to treat those funds with respect and to ensure that public spending remains focused on the essential services that keep our communities strong. When we prioritize fiscal restraint and transparency, we ensure that the government remains a servant of the people.
As Margaret Thatcher once quipped: “There is no such thing as public money; there is only taxpayers’ money.”
Serviam,
Christian
