In a recent investigation, the Des Moines Register discovered that the Reynolds Budget Crisis, set into motion by the tax cuts then Lieutenant Governor Reynolds’ Administration enacted in 2013, is costing Iowa’s towns and cities millions of dollars, despite assurances that her massive corporate and special interest giveaways would not impact Iowa services.
Thanks to the Reynolds Budget Crisis, towns and cities across Iowa are now being forced to choose between making drastic cuts to their schools’ services and staff or hiking property taxes, costing middle class families more.
Key excerpts from the story can be found below.
DMR: Iowa’s largest property tax cut in history fails to deliver, Register investigation finds
“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.”
“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.”
“City leaders say that without the backfill, local governments and school districts across the state would be forced to make cuts in services and staff — or dramatically increase property taxes.”
“Several city officials surveyed by the Register say they’ve never talked to business owners who planned to expand or relocate to Iowa because of its property tax reform. Microsoft did not mention lower property taxes when deciding whether to add more data centers in West Des Moines, according to city Finance Director Tim Stiles.”