Property tax document sent in mail only confuses an already complicated subject

If the goal of the local government budget year statements released in the mail this past week was to confuse taxpayers, then it was an overwhelming success.

Leaders from the City of Newton, Jasper County and Newton Community School District agree that informing their citizens of the upcoming public hearings for the proposed property taxation is a good thing, but they suggest the data included in the statement is confusing, misleading and overgeneralizing.

For instance, Newton residents can be forgiven if they believe their taxes for city, county and school district are all increasing by 12-14 percent, because it suggests as much on the back page of the document. Although it gives these figures as hypotheticals, it also suggests property values are increasing by 10 percent.

However, it is unlikely every resident’s assessed property value increased that dramatically or at all, unless they made significant changes or upgrades to their home in the past year or so. Newton City Administrator Matt Muckler said these 10 percent assessment increases are false assumptions for almost all residents.

“The FY26 budget year is a non-assessment year,” Muckler told Newton News, noting that odd-numbered fiscal years are assessment years. “Unless property owners constructed an addition on their home or business, their property assessments will most likely not increase from FY25 to FY26.”

For FY26, the City of Newton would only take in an additional 1.36 percent in property taxes compared to the current year.

Muckler also argued that some taxpayers actually saw a decrease in their current year taxes for FY25 due to the implementation of the first phase of the 65-and-older and military exemptions passed by Iowa legislators. Furthermore, the tax estimator tool linked in the statement does not include these exemptions.

“With fully implemented exemptions in FY26 for residents over 65 and for those who qualify for the military exemption, Newton residents in those categories may see a declining property tax bill for the second year in a row,” Muckler said, adding that the statement also fails to mention taxes pay for important services.

Tim Bloom, director of business services at the Newton Community School District, said the notices to taxpayers are accurate in that it gives the current tax rate and the proposed tax rate. But he said at the same time the effective rate is not really meaningful and the increased property valuation is an arbitrary factor.

“It is giving people undue stress for something that is not likely and is the worst case scenario for a tax increase,” Bloom said. “I believe this was not the intention of the elected officials. They would like to have sent to people their taxes for the current year and what the next year’s proposed amounts are going to be.”

Bloom lamented that this is not what was included in the laws. He also suggested there are other factors that play into property taxes, such as the rollback.

The rollback makes it so Iowans do not pay 100 percent of their valuation.

Bloom said the legislature is trying to address some of these issues but the real issue is people pay taxes for services. He also suggested a lack of state funding to public schools puts undue stress on taxpayers. Schools are seeing greater expenses, and it often falls on the backs of property taxpayers.

“I believe I can say everyone is in favor of paying less taxes,” he said. “The state has passed the buck in their absence of funding back to local property taxpayers. The state continues to underfund schools. Our costs have gone up substantially; however, schools are supposed to make ends meet on 2 percent funding.”

Bloom argued a majority of schools are facing reductions as a result of reduced state funding. The Newton school board and district leadership, he added, have already made a tough decision to reduce the number of elementary schools in Newton. The district has reduced staff, and it will reduce more going forward.

Jasper County Supervisor Brandon Talsma went so far as to say the statement sent to residents is a “junk mailer.” While the intent behind the bill requiring these statements be sent out was sound, Talsma said the end product is confusing. The mailer was first sent last year, and it was confusing back then, too.

“We don’t have a say in it,” Talsma said. “This is what the Department of Management gave us to mail out. I’ve been doing this for six years and even I find it confusing, so I know our citizens are confused. I do believe legislation introduced this year is trying to fix it. I don’t think that is what it was supposed to be.”

Talsma also noted the county’s tax rate included in the statement is not an accurate reflection of how the county levies taxes.

“That is what our max levying could be if we certify the max, but we’re not going to certify the max,” he said. “That’s the other thing I’ve been trying to clear up.”

Talsma also clarified that just because the return address says “Jasper County Auditor” does not mean that office or elected official is responsible for the mailer. The chair of the board of supervisors said the mailer is required under House File 718 to be sent by the county from the Department of Management.

“Property taxes are confusing enough already,” Talsma said. “This mailer adds to the confusion.”

Rep. Jon Dunwell has long lobbied for what he calls “truth in taxation,” in which local governments more directly notify residents and what they will pay in property taxes every year and when they can provide input at public hearings. Dunwell supported legislation requiring the release of budget year statements.

But in a recent legislative gathering hosted by the League of Women Voters of Jasper County, Dunwell expressed that these statements are not enough. He said the statements need to be property specific, meaning that the amounts and calculations would differ from taxpayer to taxpayer or even property to property.

Randy Ervin, a member of the Newton City Council, advocated for property specific statements as well, rather than a document full of “gobbledygook” that “nobody understands.” But he asked Dunwell how long it will take before it can get to the point where residents get personalized and comprehendible mailers.

“Well there is still an opportunity yet this year,” Dunwell said. “Remember, Ways and Means (Committee) are open until end of session. They put this bill out there, plus there are three others out there to start the discussion about property taxes. Part of it is going to be changing a mindset.”

Dunwell explained part of the challenge the state has is operating in the mindset of being the “guardians” or “parents” to the cities and counties.

“I’d like to provide more transparency,” he said. “That doesn’t mean I’m saying the cities are hiding anything or the counties are hiding anything. Our system is complicated, so it’s very difficult to figure it out. Simplify the system. Get rid of the rollback. Create this transparency piece.”

Dunwell argued it would cost the count $20,000 to $40,000 for a software upgrade for property-specific statements with the proposed levies.

“It would put you (Ervin) in touch with your voters,” he said. “I don’t like getting blamed or talking about something I don’t necessarily control. I think that’s between you and your voters, and I want to create that relationship and connection. So we’re going to continue to hit away at it.”

It is also important to note the mailer does provide information for when the public hearings will be held for each taxing entity. They are included here:

• Newton Schools — 5:30 p.m. March 24 at the E.J.H. Beard Administration Center, 1302 First Ave. W., in conference room 105A/B.

• Jasper County — 8:30 a.m. April 1 at the Jasper County Courthouse in the board of supervisors room 203.

• City of Newton — 5:30 p.m. April 7 at City Hall, 101 W. Fourth St. S., in the council chambers.