Local Governments Return to Voters for Tax Increases

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Ten local governments are once again seeking voter approval for public measures, many involving property tax increases, after recent ballot attempts.

As local governments across Iowa prepare for upcoming special elections, many are once again asking voters to approve tax measures—some of which have been rejected in previous elections. With school districts, cities, and counties revisiting these proposals, taxpayers must stay informed about how these decisions could impact their financial future.

Eight school districts, one city, and one county are revisiting voters after previous efforts to pass these measures. Notably, only two of these governments, the City of Burlington and North Polk Community School District (CSD) are returning after securing voter approval in November 2023. Burlington is now requesting a franchise fee increase, while North Polk CSD seeks a renewal in an existing property tax levy.

The remaining local governments are reintroducing tax proposals that voters have previously rejected—some with opposition exceeding 60% in prior elections.

Déjà Vu for Voters

Given the low cost and potential high reward of placing measures on ballots, local governments often seem willing to disregard previous election results. For example, Hinton CSD has attempted to pass two bonds, a property tax increase, and a debt service tax proposal—all of which failed within 18 months. Similarly, Emmetsburg CSD is again presenting a measure that voters rejected just six months ago.

In response to voter pushback, some school districts have adjusted their proposals by scaling back projects or reducing funding requests. However, the pattern of repeatedly bringing the same proposals to voters until they pass raises concerns about local governments’ respect for taxpayer decisions.

Spending Adds Up

At a time when most Iowans favor limits on property tax increases, voters must recognize how multiple small proposals can accumulate into substantially higher tax bills over time.

For instance, several school districts are seeking to renew their Physical Plant and Equipment Levies (PPELs). While these renewals do not increase tax rates, they also prevent taxpayer savings that would occur if the levies were allowed to expire. This situation is akin to a consumer who has nearly paid off their car loan but immediately finances another vehicle—keeping their monthly payment unchanged rather than enjoying the financial relief.

Why Voter Turnout Matters

Data from ITR Foundation suggests that higher voter turnout increases the likelihood of tax proposals failing. Additionally, local governments that repeatedly present failed proposals tend to see similar rejection rates.

For example:

  • Hinton CSD saw 36% voter turnout for a bond proposal in November 2023, followed by 21% turnout for a PPEL and debt service tax levy in March 2024. All failed.
  • During the November 2024 presidential election, voter turnout surged to 77%, and Hinton’s bond proposal failed again.

Stay Informed and Vote

Ensuring that voters understand these proposals is crucial. Engaged taxpayers participating in local elections can help a community make the best decision for their situation.

Visit https://itrlocal.org/ to learn more about your community’s spending and tax proposals before the March 2025 election. Your vote can make a difference!

© 2024 Iowans for Tax Relief and ITR Foundation