Anti-Property Tax Push Spurs Downgrade Risk for Schools in Iowa

Certain Iowa school districts face a “one-in-two chance” of a credit rating downgrade by S&P Global Ratings after the state approved a new property tax reform measure.

The Iowa General Assembly passed a property tax reform bill this month that will redirect a portion of revenue collected from its statewide 1% sales tax. Instead of being used for school infrastructure, it will now help provide relief to property taxpayers.