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PROPERTY TAX
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Rollbacks:
By Keith Wieland In a perfect world, I like rollbacks. Otherwise, long term application is absolutely Orwellien and follows with the artificial pricing and mass purchase of owning nothing and being happy. It is good, that property values were capped for a short term. The 33% increases in one year were out of reality. If there was a need for a Governor's emergency power, this was the perfect application and should be limited to that emergency. My fear, though is the 3% cap on Iowa was anticipated and part of the Covid plan. But that emergency effort to stem inflation has passed and it needs to be repealed. In other states I see less virtuous approaches to these rollbacks. They'll artificially raise your property value and eventually get their share. Thank God we instead live in Iowa. The other aspect of this is that we are ahead of the curve on tax reform. If cuts to taxes were dramatic, property values would deflate (deflation). An argument for the legislation could have been a safeguard against future deflation. It was a good safeguard on this topic. All in all, I like having my property value low. I built my rental property business by buying modest homes I could rent at an appropriate rate to low income families and have worked very hard to keep them low affordable and in good neighborhoods. Insurance and taxes are killing me. As a business owner, I love having my property value low. Now that Trump plans to return us to production, manufacturing and mining our value will increase. We were starved of value and were on the verge of a market correction. As my wife told illegals she caught, the American dream is dead. Go home, work just as hard and you will be just as happy. That was before Trump economics. Bidenomics (Carter economics on steroids) were to hinder growth by over inflating everything. Things are expensive, but look at how high your porfollio values went...well that "growth" was all inflation. Carter begat Reagan, Biden (Obama) begat Trump. If the 3% cap was on a level playing field against all other states, it would be fair. It doesn't happen in most other states and one should take the time to look for similar language in states (national lobbyists). The longer we wait to remove the cap the larger the disparities will be for the most valuable of landowners. We're a state with the second highest cancer rates, most hogs, billions of bushels of corn and lots of room for growth. My wife and I returned to Iowa for the insulation from the coyotes growth potential amd of course the people. Here are some additional thoughts: 3% appears to be a magic number in this attempt to normalize inflation. Inflation at a static county level is supposed to take care of itself eg if all goods, services and property values increase at 5% then the costs to the county should meet the purchasing power of the 5% increase. This doesn't happen. Costs increase due to profit taking until someone puts in another bid at a lower profit margin...this is capitalism. Eventually competitive nature will kick in and prices will lower. The difficulty on cities and counties is the moving goalpost of the 3-6% window. Likely all taxable property assets will be revised down; this is why you hear mayors and supervisors complaining loudest in high growth, and high costs jurisdictions. |
A Letter To The Independence Bulletin Journal
TIME TO MOVE ON AND MAKE AMERICAN GREAT AGAIN
Clayton Ohrt, Independence Iowa Renita Wieland, Independence |
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