A Bold Vision for Property Tax Reform in Iowa

Jan 244 min read

Updated: Jan 24

In the latest episode of The Oliver Bardwell Podcast, I had the pleasure of speaking with Chris Hagenow, President of Iowans for Tax Relief. We tackled the critical issue of property taxes in Iowa and explored innovative solutions like the 2% Property Tax Growth Cap Proposal to provide relief for Iowans.

Can we fix Iowa's property taxes?

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Since that conversation, I’ve been reflecting on additional ideas to reform our tax system in a way that’s fair, transparent, and beneficial to homeowners and communities alike. Inspired by my time on The Simon Conway Show and ideas Simon shared with me like Wyoming’s push to eliminate property taxes, I’ve envisioned how Iowa could take bold steps toward meaningful reform.

Combining Ideas for Comprehensive Property Tax Reform

Here’s how we could integrate multiple innovative ideas to create a fairer tax system:

1. Locking in Assessed Values Until Sale

Under this system, your property’s assessed value would remain constant until the property is sold.

For example, if you purchase a home for $200,000, it would stay assessed at $200,000 until you sell it, regardless of market changes.
When it sells, the new assessed value would reflect the sale price—whether $150,000 or $250,000.

This would protect homeowners, especially retirees, from being priced out of their homes due to rising "assessed" values, while also simplifying the assessment process to reflect what properties are actually worth.

2. The 2% Property Tax Growth Cap

The cap proposed by Iowans for Tax Relief would ensure local governments grow their budgets responsibly, limiting how much property taxes can increase annually.

3. Eliminating Property Taxes Altogether

As Simon Conway suggested, we could take it one step further and phase out property taxes entirely, replacing them with a modest increase in sales tax (similar to the proposal in Wyoming). This would shift the tax burden for "services" from property ownership to consumption, spreading costs across everyone in the community.

A Radical Addition: Sales Tax Discounts or Write-Offs for Property Owners

To make this transition even more equitable, here’s an idea:

What if property owners could either receive a sales tax discount or a partial sales tax write-off at the end of the year?

Option 1: A Sales Tax Discount Card Property owners could receive a card qualifying them for a reduced sales tax rate on certain purchases, acknowledging the contributions they already make to local services.
Option 2: Turn in Receipts for a Tax Write-OffProperty owners could save their receipts throughout the year and submit them for a partial sales tax credit or deduction when filing taxes. This approach would ensure homeowners receive tangible financial relief while still supporting essential government services.

Why This Could Work

This system would balance fairness and practicality:

Encourages Broader Participation: By relying on sales tax revenue, everyone who lives, works, and spends in Iowa—including renters, visitors, and even non-taxpayers—would contribute to funding services.
Protects Homeowners: Retirees and fixed-income homeowners wouldn’t risk being taxed out of their homes.
Offers Flexibility: The discount or write-off options give property owners control over their benefits, helping them offset costs in a way that works best for them.

Leveraging Iowa’s Budget Surplus

With Iowa sitting on a massive budget surplus due to over-taxation and successful fiscally conservative policies, now is the perfect time to implement bold reforms like these.

Surplus funds could help cover short-term gaps as the state transitions to a new system.
The state could invest in technology or administrative systems to streamline receipt tracking or tax write-off processes.

Let the guy in the man bun cover some of the expenses for the City and County Services he's enjoying.

A Vision for Iowa’s Future

By combining these ideas—locking in assessed values, capping tax growth, eliminating property taxes, and offering sales tax benefits for property owners—we could create a system that:

Provides stability and fairness for homeowners.
Encourages fiscal responsibility at the local government level.
Spreads the cost of essential services across everyone who benefits from them.

This is the kind of bold reform that Iowa needs to support its residents while maintaining vibrant, thriving communities.

Let’s Start the Conversation

What do you think of these ideas? Would locking in assessed values or offering sales tax write-offs make a difference for your family?

Let me know your thoughts, and make sure to check out my conversation with Chris Hagenow for more insights into Iowa’s property tax challenges and potential solutions.