Iowa's proposed property tax cap could derail DART
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DART projects it will need to cut as much as 40% of its services over the next five years if either of two bills that advanced in the Iowa Legislature last week becomes law.
Why it matters: Thousands of metro residents depend on DART, which provides millions of rides yearly.
- The legislation comes as the agency unveils concepts for redesigning its entire metro bus network following years of budget challenges.
Driving the news: House Study Bill 313 and Senate Study Bill 1208 are nearly identical Republican-backed proposals for the most comprehensive Iowa property tax reboot in about 50 years.
- Most property tax growth would be limited to 2% annually, below the typical inflation rate.
- Both were approved by legislative subcommittees last week and are now eligible for full committee debate.
Context: The bills would most directly affect local governments, which rely on property taxes.
- A dozen metro governments pay about 70% of DART's $43.4 million annual budget using a formula based on the services they receive.
State of play: Local governments are also phasing in a new DART funding formula over the next five years, intended to provide more financial stability and fairly distribute costs among metro cities.
- DSM proposes a 50% increase — from 5% to 7.5% — in its franchise fee for gas and electricity to help cover its commitment.
What they're saying: DART was already considering a budget scenario limiting property tax growth to 4%, which would still mean some service reductions because costs have risen slightly above that level recently, CEO Amanda Wanke said in remarks to lawmakers this week.
- Plus, the legislation could limit DART's ability to fully implement the funding agreements among metro cities, she said.
The other side: Rising property taxes were a recurring top concern among voters before November's elections, prompting the bills.
- It's likely that public feedback will be solicited for a few more weeks before a final version of the proposals could move forward, state Rep. Bobby Kaufmann (R-Wilton) said last week, The Cedar Rapids Gazette reports.
What's next: DART will present more detailed budget scenarios at its commission meeting, starting at noon on Tuesday.