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Property Tax Relief

Property Tax Relief priorityWith approximately 40 percent of property in Des Moines belonging to non-taxable entities, around 60 percent of property owners have been shouldering the cost of City improvements and services. With new Local Option revenue, City Council has been able to reduce the City of Des Moines’ property tax levy charged to that 60 percent without a reduction in planned projects or service level agreements.

By state law, 50 percent of the new sales tax revenue must go toward property tax relief. After receiving approval from voters, City Council voted on March 11, 2019 to reduce the City’s property tax levy rate to the lowest it had been in the seven years prior.

The passed budget included a $0.60 per $1,000 of taxable value reduction to the property tax rate, bringing the City’s total levy rate to $16.64. Without the support of Local Option, this levy rate was anticipated to grow substantially without a reduction in planned improvements or City services.


FY2020 Local Option expenditures

Area
Property Tax Relief — 50% State Mandate

FY2020
Budget

FY2020
Actuals

Property Tax Relief

$18,260,000

$19,060,857

Neighborhood Development Corp. (NDC)
and Neighborhood Finance Corp. (NFC)

$800,000

Total Budget

$19,060,000

$19,060,857

Property Tax Relief

Half of Local Option revenue was used to provide property tax relief in the form of a $0.60 levy rate reduction and provide for additional financial resources necessary to maintain acceptable levels of City services and neighborhood improvements.

Without the availability of Local Option, these services and improvements would have required an additional increase to the City’s tax levy rate by $1.50 per $1,000 of taxable value over the next five to six years.


NDC & NFC

Originally funded solely by the debt issuance fund, the Neighborhood Development Corporation (NDC) and the Neighborhood Finance Corporation (NFC) partner with local financial institutions to finance multi-family development projects to provide affordable housing, as well as provide low interest rate mortgages and loans to help Des Moines homeowners invest and improve our aging neighborhoods throughout the city. With Local Option revenue, these valuable resources will be partially funded by visitors and commuters.