New mailers aim to give residents property tax info

A new tax document aimed at helping Iowans understand their property taxes and share information on coming budget meetings is landing in mailboxes across the state.

The tax mailer is one of the several changes from House File 718, legislation passed in 2023 meant to keep soaring property tax assessments from turning into dramatically higher tax bills for homeowners. It also provides new tax breaks for military veterans and seniors.

The law required them to be sent out by March 20.

Ted Nellesen, a fiscal and policy analyst senior for the Iowa Department of Management, said the document is meant to “help people understand” and engage in the property tax process. Gov. Kim Reynolds, Iowa Sen. Jack Whitver and Iowa House Speaker Pat Grassley issued a joint statement last May calling it a mechanism for property tax bill transparency.

“This spotlights taxes separate from any other piece of the budget,” Nellesen said.

The two-page document shows property owners information on the amount of budgeted tax dollars and total tax rate in the current fiscal year, which began July 1, 2023, as well as the property tax proposed for the coming fiscal year for their school district, city and county, according to the Iowa Department of Management.

It also includes the dates, times and locations of coming public meetings where each taxing entity is now required under law to talk solely about their proposed property tax amount and levy rates. Nellesen emphasized the document doesn’t show the final tax rate for the coming budget year. It also doesn’t include city information for rural residents.

The new statement has been under scrutiny from some local leaders who say the statement could be confusing to property owners and local governments must bear the cost to send them.

Polk County will pay about $100,000 to mail 146,000 statements to property owners, county officials told the Register. And with nearly 3 million properties that would receive the statement statewide, local governments are projected to spend more than $1.9 million annually to mail the document, according to the Legislative Services Agency.

At a budget meeting in February, Polk County Budget Manager Deb Anderson said the statement could be “overwhelming” information for taxpayers. “It is a significant expense, and it’s stupid,” Polk County Supervisor Angela Connolly said at the meeting.

For more information visit the Iowa Department of Management’s website.