Most significant tax reform bill signed-retirement/income (Cedar Rapids, Council Bluffs: real estate, apartments)

[smpliving]

On March 1, 2022, Governor Reynolds signed into law Iowa’s most significant tax reform bill in state history, establishing a 3.9% flat income tax rate, eliminating state tax on retirement income, reforming corporate income tax and more. (also elimination of the inheritance tax)

When Governor Reynolds took office, Iowa had the sixth highest individual income tax rate in the nation. Now that the Governor's plan proposed this year has passed with bipartisan support, Iowa's income tax rate will be fourth lowest among all states that charge income tax, ranking among the most tax-friendly states in America.

Beginning in tax year 2023, implement four tax brackets ranging from 4.4% to 6.0%. In subsequent tax years, eliminate the top rate annually until a 3.9% flat tax rate is achieved in tax year 2026.

https://governor.iowa.gov/basic-page...for-all-iowans

https://www.desmoinesregister.com/st...ds/9342261002/

[jmgg]

Originally Posted by CBOTfan

So? This isn't a newspaper or a news consolidation site. We can all read articles such as this on our own on news sites of our choice - if interested. Same with shootings, brain-eating amoebas, etc.

This is a site for news and questions concerning the state of Iowa, which is exactly what smpliving posted.

The post was very informative. If it doesn't meet with your expectations after your extensive participation of 14 posts, then don't read it.

[smpliving]

Originally Posted by CBOTfan

So? This isn't a newspaper or a news consolidation site. We can all read articles such as this on our own on news sites of our choice - if interested. Same with shootings, brain-eating amoebas, etc.

I know I don’t add a commentary of my own concerning recent posts I’ve made in the Iowa forum. I am not very good at that but rather post some parts of the news articles with a link. If people are interested they will comment or maybe they won’t.

Iowa is not a state that is discussed about much on this forum. I posted about the new tax reform laws because most Americans equate Iowa with high income taxes. I felt this info might be of interest to people who otherwise wouldn’t know about the new changes. Also I read and hear how so people are looking for a more affordable place to live in the US. This may be of interest to them. I know it is in my neighborhood here in Cedar Rapids. For retirees such as myself, it may be helpful to know that retirement taxes from IRAs, pensions, annuities will no longer be taxed as of 2026.

I posted about the sad news of the person from Missouri who died from the brain-eating amoebas just to make people aware and maybe save a life or at least inform people of this tragic event and to take precautions even here in Iowa.

The increase in shootings and yesterday the most recent tragic shooting and killings at Maquoketa Caves State Park is something I feel is of importance that people understand these tragedies occur even in Iowa. I have cut down the number of posts about shootings here as it is becoming overwhelming as it is in the rest of the US.

I am a first-generation American on my mother’s side who comes from a very large family in Europe. They can’t believe the amount of shootings and killings in America and the obsession with assault weapons. This is discussed a lot in my family and also among my neighbors in Cedar Rapids Iowa. This is my background.

You don’t care about my posts. I get that. I’m sure there are people like you who feel the same way. Until the moderators advise me to stop or revise my postings I will continue when I feel there is something news worthy to report in the state that I live in.

Originally Posted by jmgg

This is a site for news and questions concerning the state of Iowa, which is exactly what smpliving posted.

The post was very informative. If it doesn't meet with your expectations after your extensive participation of 14 posts, then don't read it.

Thank you, jmgg.

[Rachel NewYork]

Originally Posted by smpliving

I know I don’t add a commentary of my own concerning recent posts I’ve made in the Iowa forum. I am not very good at that but rather post some parts of the news articles with a link. If people are interested they will comment or maybe they won’t.

Iowa is not a state that is discussed about much on this forum. I posted about the new tax reform laws because most Americans equate Iowa with high income taxes. I felt this info might be of interest to people who otherwise wouldn’t know about the new changes. Also I read and hear how so people are looking for a more affordable place to live in the US. This may be of interest to them. I know it is in my neighborhood here in Cedar Rapids. For retirees such as myself, it may be helpful to know that retirement taxes from IRAs, pensions, annuities will no longer be taxed as of 2026.

I posted about the sad news of the person from Missouri who died from the brain-eating amoebas just to make people aware and maybe save a life or at least inform people of this tragic event and to take precautions even here in Iowa.

The increase in shootings and yesterday the most recent tragic shooting and killings at Maquoketa Caves State Park is something I feel is of importance that people understand these tragedies occur even in Iowa. I have cut down the number of posts about shootings here as it is becoming overwhelming as it is in the rest of the US.

I am a first-generation American on my mother’s side who comes from a very large family in Europe. They can’t believe the amount of shootings and killings in America and the obsession with assault weapons. This is discussed a lot in my family and also among my neighbors in Cedar Rapids Iowa. This is my background.

You don’t care about my posts. I get that. I’m sure there are people like you who feel the same way. Until the moderators advise me to stop or revise my postings I will continue when I feel there is something news worthy to report in the state that I live in.

Moderator for the Iowa forum, here.

smpliving, you don't need to explain yourself. While I don't live in Iowa, I (and I'm sure others here) find your posts about your home state to be interesting and informative. Your civility is appreciated, as well.

[recycled]

Smpliving, thanks for this thread - interesting change in Iowa's tax rules especially for retirees (like me). Although I am currently living in Europe, I'll likely return to the US after another year or maybe two. I have not picked my future landing spot in the US, but it won't be in my home state (CA) or in AZ, where I lived for several years after retirement.

I have not had Iowa on my list of future residence places, due to what I thought were high taxes. But that has now changed. Plus the weather is pretty rugged there too, more extreme than here in Germany to say the least. But, I have visited there a few times.

I don't know if the new tax laws will attract many retirees to Iowa, but it might keep some from leaving and moving to another nearby state. Maybe some retirees that currently live in Omaha might move across the river to Council Bluffs since Nebraska is one of the higher tax states for retirees (incl tax on Social Security).

[smpliving]

Originally Posted by recycled

I don't know if the new tax laws will attract many retirees to Iowa, but it might keep some from leaving and moving to another nearby state. Maybe some retirees that currently live in Omaha might move across the river to Council Bluffs since Nebraska is one of the higher tax states for retirees (incl tax on Social Security).

I agree. Recently I was listening to a group of professionals discussing all the new high-end condos and apartments in and near downtown (Cedar Rapids-2nd largest city in the state). I asked where are all the people coming from and their reply was Iowa retirees wanting to downsize.

I’m curious where you will decide to move to in the US. That will be quite a change from Germany. Maybe somewhere around the Great Lakes … Good luck!

[jmgg]

Originally Posted by smpliving

I agree. Recently I was listening to a group of professionals discussing all the new high-end condos and apartments in and near downtown (Cedar Rapids-2nd largest city in the state). I asked where are all the people coming from and their reply was Iowa retirees wanting to downsize.

I’m curious where you will decide to move to in the US. That will be quite a change from Germany. Maybe somewhere around the Great Lakes … Good luck!

In eastern Iowa, the retirees will be pouring in from Illinois BECAUSE of the tax structure difference. It was significant before, but even more so now.

On the NORTHWESTERN part of Iowa there has been a pretty significant movement OUT of Iowa for a large part in my opinion, because of tax structure. This movement has mostly been to South Dakota. Governor Reynold's actions will definitely lesson this occurrence.

A large reason of course is that Sioux Falls with it's size and job opportunities is right across the border. This part has little to do with taxes.

What makes one go hmmm though is that you can buy comparable houses in NW Iowa for $ 75,000 to $ 125,000 LESS than if you moved directly across the border to towns like Brandon, Harrisburg, or Canton SD. Yes, you're a few miles closer to Sioux Falls in these towns, but is that enough of a reason for this large of a housing price discrepancy? Most people I would think would be eager to drive an extra 10-15 HIGHWAY miles or less to save this kind of money on a house.

Taxes definitely are coming into play here.

I have direct knowledge of this from several people buying and selling houses cross-border over the last couple years.

At least for this region, I think your governor's actions are going to benefit Iowa.

In west-central Iowa because of Nebraska's much higher tax structure, Iowa has been benefiting even before Governor Reynold's actions. It'll just help the state's growth down there grow more.

[smpliving]

It never occurred to me that many retirees from Illinois would want to come to eastern Iowa. I guess for those who want to stay in the Midwest it’s definitely possible especially with inflation.

Very interesting about NW Iowa compared to Sioux Falls’ outlying towns/suburbs (might be a good time to invest in real estate on the Iowa side).

A property tax break would have been much more beneficial to me personally but I’ll take what I can get.

[jmgg]

Originally Posted by smpliving

It never occurred to me that many retirees from Illinois would want to come to eastern Iowa. I guess for those who want to stay in the Midwest it’s definitely possible especially with inflation.

Very interesting about NW Iowa compared to Sioux Falls’ outlying towns/suburbs (might be a good time to invest in real estate on the Iowa side).

A property tax break would have been much more beneficial to me personally but I’ll take what I can get.

Yes, if you're talking housing. Farm LAND prices in Iowa however, are through the roof. NW Iowa farmland quality is some of the best in the entire Midwest and the prices per acre reflect that.

[BeaumontPark]

Agree, Omaha taxes are high. It will be interesting if Iowa, as I suspect Nebraska will do (I live in Omaha), outlaws abortion. If older/retired folks decide to move into Iowa due to taxes, will some younger people move out of both Iowa and Nebraska, feeling personally constricted by such reductions of reproductive freedom? I guess we will see.