Watch: Iowa homeowners talk property taxes with Des Moines Register
Homeowners discuss Iowa’s property taxes as Iowa legislative leaders make property tax reform their No. 1 goal this legislative session.
- Des Moines is proposing to keep its property tax levy rate unchanged for the sixth straight year.
- The proposed tax levy rate is $16.61 per $1,000 of taxable property value.
- A public hearing on the proposed property taxes will be held on March 24 at Des Moines City Hall.
Des Moines residents get to have their say Monday about the city’s proposed property tax levy.
The city will hold a 7:30 a.m. hearing at Des Moines City Hall, where community members will have a chance to comment on the proposed levy rate for fiscal year 2026, which starts July 1.
The city is planning to keep the rate at $16.61 per $1,000 of taxable property for the sixth straight year.
Also on Monday, the Des Moines City Council at its 5 p.m. meeting will vote to set the hearing date to approve the city’s recommended budget, which includes $839.3 million in operating funds. If approved, the hearing to adopt both the budget and property tax levy will be held during the council’s April 7 meeting.
The budget season has proved tumultuous for the city as it contends with a $17 million deficit, which Des Moines City Manager Scott Sanders blames on a state-mandated cap on property tax revenue growth and the rising costs of services and materials. In response to the shortfall, Sanders and city officials have suggested multiple service and staff cuts or changes.
So far, the city has taken an axe to the two-person sustainability office that oversaw the implementation of its climate action plan, prompting pushback from climate activists and residents at council meetings and public budget forums.
Sanders also proposed shuttering Birdland Pool, a favorite summer hangout on Des Moines’ north side, but reversed course after strong public objections. Instead, the pool could stay largely open through summer 2026 by implementing a rotating schedule of closures with other community pools.
Adjustments also include possibly increasing city parking fines, scaling back a mosquito abatement program and eliminating the Des Moines Public Library’s social worker position, which is vacant.
What goes into Des Moines residents’ property tax bills?
City officials say a local option sales tax, which went into effect in July 2019, helped Des Moines reduce its levy rate and keep it at $16.61 since 2021.
But Des Moines’ levy only makes up roughly one-third of residents’ property tax bill. Other tax entities include Des Moines Public Schools, Polk County government, Broadlawns Medical Center and, under a category called “other,” the Des Moines Area Regional Transit Authority, Des Moines Area Community College and the state of Iowa, according to the city.
The county auditor combines the rates from all the taxing authorities to create a single tax levy called a consolidated tax rate.
Also included in the property tax bill calculation are:
- The county assessor’s estimate of a property’s assessed value. Properties are reassessed in odd-numbered years. Polk County saw a record 22% average increase in residential property values in 2023, which is what the property tax bills due in fall 2024 and spring 2025 were based on.
- The rollback rate, which is calculated each year and limits the amount of property taxes Iowans pay to a percentage of what their property is worth. This year, due to the growth in valuations across the state, the rollback rate dropped to 46.3428%.
- Credits property owners may apply for at the county level, such as the Homestead Credit, which are subtracted from the tax bill. Iowa offers more than 30 tax exemptions, depending on the classification of property or property owner.
Taxes are due twice a year. The first installment must be paid by Sept. 30. The second is due March 31.
Revenue collected from property taxes supplies funding for counties, school districts, cities and townships. The funds go toward spending on local law enforcement, fire departments, road maintenance, sewers and education.
How do you calculate property tax in Iowa?
Here’s the formula:
- Total valuation multiplied by rollback rate = taxable valuation.
- Taxable valuation divided by 1,000, then multiplied by consolidated tax rate = gross tax rate.
- Gross tax rate minus credits = total property tax.
What are the details of the meeting?
The public hearing on the property taxes will be held at 7:30 a.m. March 24 at Des Moines City Hall, 400 Robert D. Ray Drive.
In the meantime, community members can provide suggestions and feedback on the proposed budget at DSM.city/Budget.
Virginia Barreda is the Des Moines city government reporter for the Register. She can be reached at vbarreda@dmreg.com. Follow her on X at @vbarreda2.
