Carroll City Councilman LaVern Dirkx, who also serves on the Iowa League of Cities Executive Board, spoke before an Iowa House Committee on Tuesday as they hosted a public hearing on the Senate’s tax reform proposals. Iowa Republicans have been eyeing tax reform for several years, but the House and Senate versions differ significantly. Notably, the House’s proposal imposes a hard two-percent cap on cities and counties, while the Senate’s version caps growth with inflation adjustments. Dirkx told lawmakers that a hard cap is unworkable for most municipal governments.
Dirks points to Carroll’s taxing history in relation to the rest of the state. Carroll has one of the most favorable ratings from the lobbyist group, Iowans for Tax Relief (ITR) and the sixth-lowest levy among communities with more than 1,000 residents. Dirkx argued Carroll has been and continues to be a good steward of taxpayer funds, but a hard cap on revenue growth will force a fiscally sound community into unfavorable positions.
There has been growing pressure from Iowans for property tax reform, particularly in communities where city, county, and school budgets have grown year after year. Both proposals seek to limit that growth, but the House version curtails the flexibility of what Dirkx calls the “good actors” in local government.
The House has passed its proposal, and the Senate has passed theirs. However, both chambers will need to approve the same bill before it can be sent to the governor’s desk to be signed into law. Likely, lawmakers won’t adjourn until an agreement on tax reform is reached. The 100th day of the session was April 21, and per diem expenses for legislators ended, further incentivizing the two chambers to reach an agreement.
