Recent legislation impacts county budget
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As published on page 8 of today’s Record-News, the property tax hearing for Fiscal Year 2026 (July 1, 2025 – June 30, 2026) is set for March 24 at 10 a.m. in the Board of Supervisors office in the Ringgold County courthouse.
Understanding the numbers included on the proposed tax levy notice can be confusing, so the Record-News reached out to Ringgold County auditor Amanda Waske for guidance prior to the tax levy hearing.
As presented, the county-wide tax rate will be $7.29088 per $1,000 for Fiscal Year 2026, which represents a 0.23 percent increase over the $7.27396 in FY25. That county-wide tax rate includes not only the General Basic Levy but also the Supplemental Levy and the Pioneer Cemetery Levy.
General Basic
The proposed General Basic Levy of $4.54331 per $1,000 valuation reflects a one percent decrease from the Fiscal Year 2025 levy of $4.58874.
The reduction was mandated in 2024 by the Iowa Legislature.
According to David Farmer, Director of Budget and Administrative Services in Scott County, Senate File 2442 flattens new property tax dollars received by counties by reducing the tax rate based on the taxable valuation growth within a county.
Non-TIF* Levy
Growth Reduction
0-2.74% No reduction
2.75-3.99% 1% reduction
4-5.99% 2% reduction
Over 6% 3% reduction
(*TIF – Tax Increment Financing)
Because non-TIF taxable valuation in Ringgold County grew between 2.75% and 3.99%, last year’s levy rate was reduced by one percent.
While the rate reduction formula affects levy rates in the short term, another mandate coming out of the 2023 legislative session affects future property tax levies across the board.
According to the House File 718, by Fiscal Year 2029 the General Basic Levy must be capped at $3.50 per $1,000 valuation.
Iowa Code 331.423 states funds generated by the General Fund Levy may be used for “general county services on all taxable property in the county.”
These county services include all expenses (except personnel benefits) in the departments of Auditor, Treasurer, Recorder, Attorney, Supervisor, Recorder, Sheriff, Public Health, Veterans Affairs, IT, courthouse maintenance, environmental health, conservation, social services, general assistance, medical examiner, historical society, and county financial audit. All property owners in the county pay the General Basic Levy.
Supplemental Levy
Dollars generated from the Supplemental Levy may be used only to pay employee benefits, the cost of elections, costs associated with the courts and juvenile services, county liability/property insurance, work comp and unemployment insurance and the county’s contribution to emergency management services.
The Supplemental Levy rate of $2.71142 is 2.4 percent higher than the FY25 rate of $2.64781.
The increase can be attributed to a technology requirement to update the nine laptop computers used to check in voters during elections as well as a 3.5 percent increase in the IPERS rate for the sheriff and deputies.
Pioneer Cemetery Levy
The Pioneer Cemetery Levy provides dollars for the upkeep of little used cemeteries across the county.
The county’s Pioneer Cemetery Commission asks for an annual contribution of $16,000, which translates to a levy of just over 3.5 cents per $1,000 valuation.
Rural Basic Levy
The Rural Basic Levy is a separate levy above the levies listed above.
The proposed Rural Basic Levy for FY26 is $3.19439 per $1,000 valuation, a one percent decrease from FY25 as mandated by Senate File 2442.
Ringgold County already meets the $3.95 Basic Rural cap required by 2029 in House File 718.
Only property owners outside the city limits of county towns pay the Rural Basic Levy on top of the General Levy. Therefore, the combined levy rate for rural property owners is $10.48527, a slight 1.4 percent decrease from FT25.
The Rural Basic Levy covers expenses related to two sheriff’s deputies, weed commissioner, library, soil & water conservation watershed maintenance program, solid waste disposal, and secondary roads transfer.
Budget impact
Due to the growth in property valuations across the county, Waske estimates the county will receive $49,000 in additional revenue in FY26 just through the general fund levy alone.
The mandates in both House File 718 and Senate File 2442, however, will continue to put pressure on county budgets in the coming years.
