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DECORAH — Winneshiek County officials discussed concerns on Monday about the recently enacted House File 718 (HF 718), a state law that significantly alters how local governments manage property taxes and budgets. During a Board of Supervisors meeting, members considered drafting a letter to legislators to express how the law could negatively impact essential services, an idea initially proposed by Sheriff Dan Marx, with Supervisor Chair Dan Langreck calling the letter a "great idea." Supervisor Mark Faldet also commented on the letter, noting that it was at least something the supervisors could do. "Otherwise, we just sit back and take it." Faldet noted, "I'm in favor of putting together a letter that multiple elected officials in the county can sign. We're not the only ones stuck with this budget issue." Supervisor Shirley Vermace offered to work with Marx to draft the letter, "I'd be happy to work with Dan on that and then send it to everybody for approval. I mean, we're not going to send it until everybody's on board with it." Community member Cheryl Wieseler asked the Supervisors if support from the public, such as writing or calling to legislators, would be beneficial. "That is a good question. If you want to see your property taxes be realistic in some of the government expenditures at the state level change, that is where the real problem is," Supervisor Steve Kelsay replied, Langreck further leveled with Wieseler, expressing some concern about the potential for the public to misdirect their own concerns or muddy the water with misinformed understandings of HF 718: "If they're not totally educated about House File 718, they may [focus] on one part of it, and only talk about that when they don't know what that whole bill is about." Your support keeps truth alive in Decorah—donate to local news today! What is HF718?House File 718 is a comprehensive reform of Iowa's property tax system that impacts how counties, cities, and other local governments levy taxes, manage budgets, and provide financial transparency to taxpayers. Its provisions introduce stricter limits on property tax revenue growth, repeal certain tax-related statutes, and include new administrative requirements for local governments. The legislation is intended to provide property tax relief for taxpayers while standardizing and constraining local government taxation and spending. Key Provisions of HF718 1. Caps on Property Tax Levies General County Services: Cap: $3.50 per $1,000 of assessed property value. Adjustments are allowed if the assessed property value grows between 3% and 6% year-over-year: If growth is 3-6%, the levy rate must decrease proportionally. If growth exceeds 6%, stricter reductions apply. Rural County Services: Cap: $3.95 per $1,000 of assessed property value. Adjustments follow the same rules as for general services. Starting in 2028, no adjustments will be allowed, and counties must adhere strictly to the $3.50 and $3.95 caps. 2. Repeal of Supplemental Levy Authority (Section 331.426) HF718 eliminates Section 331.426, which had allowed counties to impose additional levies for: Emergencies Extraordinary new functions required by state law New programs providing substantial local benefits. Without supplemental levy authority, counties have less flexibility to address unforeseen financial needs. 3. Transparency Requirements Counties must provide detailed tax notices to property owners, explaining: Total assessed property values. Tax rate calculations. Amounts levied for specific services, like public safety or infrastructure. The purpose is to ensure property owners are aware of how their taxes are calculated and where the money is spent. 4. Bonding and Financial Authority Adjustments HF718 modifies bonding procedures, restricting local governments' ability to take on new debt without additional voter approval in some cases. Levy increases tied to natural disasters or state-mandated programs require voter approval through special elections. These limits further restrict counties' ability to fund large projects or emergency measures. 5. Transit Funding Transit districts are subject to new levy caps, with a maximum rate of $0.95 per $1,000 of assessed property value for transit-related projects. This includes funds for operations, maintenance and reserve accounts. Implications for Local Governments Reduced Revenue Flexibility: Counties and cities will have less ability to respond to population growth, inflation, or emergencies, as revenue increases will be capped. The repeal of supplemental levies compounds these challenges. Pressure on Local Services: Services like public safety, road maintenance, and health programs may face funding shortages. Infrastructure projects reliant on rural road or farm-to-market funding could be delayed or reduced in scope. Increased Administrative Burden: Local governments will need to implement new systems to comply with the transparency requirements, adding administrative costs and staff time. Potential Taxpayer Savings: Taxpayers may see reduced property tax rates due to the strict caps. However, savings could be offset by reduced local services or additional costs elsewhere. Elevate your inbox with the DecorahNews.com newsletter! Receive free thought-provoking articles, actionable advice and inspiring stories every week.

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Winneshiek County Officials Push Back on House File 718's Financial Impact