Polk County sees major growth in taxable value of property

The taxable value of property among Polk County cities grew more than 160% in the past two decades, according to an analysis by Axios using Iowa Department of Management data.

• It's now nearly $30 billion.

Why it matters: Taxable value reflects the economic health of a community.

• The data can help metro planners assess what economic development incentives work.

By the numbers: Des Moines added the most taxable value by dollar amount — more than $4 billion, an 83% increase.

• West Des Moines added $3.7 billion and Ankeny added $3.5 billion, increases of 172% and 371% respectively.
• Statewide, cities more than doubled their taxable values to about $117.4 billion.

What's happening: New developments and soaring sales prices are behind the growth.

• Next year, residential properties will assess at 22% higher than in 2021, Polk County assessor Randy Ripperger projected earlier this month.
• Commercial property assessments will increase by an estimated 18%, he said.

Of note: The DSM area's population increased almost 19% between 2010 and last year, making it the fastest-growing metro by percentage in the Midwest, according to U.S. Census Bureau data.

State of play: Economic development incentives play a role in the growth and there is debate among some groups about whether some are worth the investments.

• Tax Increment Financing (TIF), for example, adds hundreds of millions of dollars in value annually across the state, according to an Iowa League of Cities report.

Yes, but: Groups like Common Good Iowa have for years cautioned that TIFs can be overused and drive up property tax rates.

Zoom in: Incentives are frequently adjusted to help meet development goals.

• Des Moines narrowed tax abatement incentives last year for projects that don't meet enhanced efficiency standards.
• Meanwhile, new residential tax abatements were phased out in Bondurant as the city focuses more on growing industrial and commercial businesses, city administrator Marketa Oliver told Axios.