Iowa's Largest Property Tax Cut Ever Fails to Deliver
When Iowa passed sweeping property tax reform four years ago, state officials projected commercial taxpayers would save $218 million this year. Lawmakers also promised to fully reimburse local governments for the revenues they stood to lose.
The law has failed to deliver on both counts, a Des Moines Register review of state data shows.
In three years, the state has paid $391 million to Iowa's cities, counties and school districts. But that money has not kept pace with the reduction in property tax revenue brought on by the changes, and local governments have missed out on a combined $107.2 million.
Meanwhile, businesses that were expected to benefit the most through lower taxes have saved about half as much as the state projected in 2013, according to the nonpartisan Legislative Services Agency.
Now, city officials fear they could lose millions more.