Why the school property tax rate by itself is a poor measure of school taxes overall

The assessed value of a property makes a difference when it comes to calculating and paying property taxes. In the Iowa City area, the assessed value of properties overall generally grows. If you were to sell your home, this increase is good news. However, for homeowners who live in their home for many years, the Iowa City Community School District (ICCSD) will collect more school taxes as the value of your home increases even if its tax rate stays flat and sometimes even when the tax rate decreases.

So be skeptical when bond promoters state “of the state’s 10 largest districts, the ICCSD has the lowest property tax rate.” What they often fail to mention is that ICCSD has the highest assessed valuation per pupil dollar among those same comparable schools so it makes sense that its tax rate is lower than its comparable districts. Tax rate by itself is a poor measure upon which to compare school districts.

Assessed Valuation Ranking

 

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This entry was posted in Bond, Iowa City Schools, School Taxes, Tax Rate. Bookmark the permalink.

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