TAX IMPACT

An approved bond referendum on November 4, 2025, would have a tax impact of $4.05 per year on $1,000 worth of assessed property value. This represents an increase from our original 2024 proposal due to construction inflation and expanded community-requested project scope.

RESIDENTIAL PROPERTY TAX IMPACT

How Iowa Property Tax Works: Iowa uses a "rollback" system, through which residential property is taxed on 47.4% of assessed value, minus a $4,850 homestead credit for primary residences. Here's how the calculation works:

1) Assessed Value to Taxable Value

Iowa uses a "rollback" system, through which residential property is taxed on only a portion of its assessed value.

Residential Rollback: 47.4316% (as of 2024)
A home with an assessed value of $100,000 would have a taxable value of $47,432.

2) Factor in the Homestead Credit

Iowa provides a Homestead Credit of $4,850 for primary residences.

Using the example above, the net taxable value would be $42,582 (calculated by taking $47,432 and subtracting the Homestead Credit of $4,850).

3) Apply the Tax Rate

The proposed bond would add $4.05 per $1,000 of net taxable value to the tax rate for residential properties. Here's how the calculation works:

$42,582 ÷ $1,000 = 42.582
42.582 x $4.05 = $172.46 per year
$172.46 ÷ 12 = $14.37 per month

Real Examples for Families:

Table outlining the impact of an approved bond on various assessed home values. Home value of $100,000 = impact of $14.73 per month or $172.00 per year Home value of $175,000 = impact of $26.38 per month or $317 per year Home value of $250,000 = impact of $38.38 per month or $461 per year Home value of $350,000 = impact of $54.39 per month or $653 per year

To put this in perspective, the tax impact on a:

$100,000 home = 47¢ per day (less than a daily coffee)
$175,000 home = 87¢ per day (less than most streaming services)
$250,000 home = $1.26 per day (less than a convenience store drink)

Residential Property Tax Calculator:

EMCSD's Tax Levy Rate History

The school district’s levy rate is at its lowest point since 2002—and is also down 42% in the last 20 years. Below is a chart reflecting the downward trend in the levy rate over that time:

Graph indicating a decline in the tax levy rate for the school district from 2002 to 2026

COMMERCIAL PROPERTY TAX IMPACT

For commercial properties (assessed at 90% of value after first $150,000):

$150,000 commercial property: $45.56 monthly ($547 annually)
$350,000 commercial property: $106.31 monthly ($1,276 annually)
$500,000 commercial property: $151.88 monthly ($1,823 annually)

AGRICULTURAL PROPERTY IMPACT

Agricultural land has a much more favorable 73.8% rollback with no Homestead Credit. Based on average assessed values per county:

Step 1: Assessed Value to Taxable Value

Agricultural land uses a much more favorable rollback system than residential:

Agricultural Rollback: 73.8575% (as of 2024)
Key Difference: Ag land is assessed much lower than market value to start

Step 2: No Homestead Credit

Agricultural land does NOT receive the $4,850 homestead credit

The lower rollback percentage compensates for this
Farmhouses (if present) are taxed separately as residential property

Step 3: Apply the Tax Rate

The bond adds $4.05 per $1,000 of net taxable value

Agricultural property pays school levies, including bond debt service

Real Examples for Agricultural Properties:

Table outlining the impact of an approved bond on various assessed values of agricultural properties, on a per-acre basis. Marshall County: $2,168 average assessed value per acre. Tax impact of 54 cents per acre, per month; or $6.48 per acre, per year. Poweshiek County: $1,741 average assessed value per acre. Tax impact of 43 cents per acre, per month; or $5.21 per acre, per year. Tama County: $1,854 average assessed value per acre. Tax impact of 46 cents per acre, per month; or $5.55 per acre, per year. Jasper County $1,986 average assessed value per acre. Tax impact of 49 cents per acre, per month; or $5.94 per acre, per year.

Farm Examples (Marshall County):

160-acre farm: $86.50 monthly ($1,038 annually)
320-acre farm: $172.92 monthly ($2,075 annually)

Important: Agricultural property pays significantly less per dollar of actual value compared to residential or commercial property.

Agricultural Property Tax Calculator:

WHY THE INCREASE FROM 2024?

The proposed impact of the bond referendum has gone from $2.70 in 2024 to $4.05 in 2025. There are two main reasons why this is the case:

Construction Inflation (Major Factor)
- 7% annual construction cost increases
- What cost $13.5 million in 2024 now costs $19.8 million in 2026
- Every month of delay adds roughly $115,000
Community-Requested Expanded Scope
- Specific Gilman building options (up to $1.5 million additional)
- More comprehensive solutions rather than minimal fixes
- Enhanced features based on facilities committee feedback

TRACK RECORD OF FISCAL RESPONSIBILITY

In recent years, we have achieved:

23% levy reduction since 2017 (from $14.25 to $10.88 per $1,000 of taxable property value)
Current total levy rate: $9.84 (lowest in recent history)
Deliberately prepared for this investment by reducing taxes for 8 years

NICL School District Tax Rates, Fiscal 2025 Budget Levy Hudson $16.69 Denver $16.40 Jesup $14.86 Dike-New Hartford $14.79 Grundy Center $14.79 Wapsie Valley $14.01 East Marshall $13.89 South Hardin $13.27 Oelwein $13.11 Sumner-Fredericksburg $11.93 Aplington-Parkersburg $11.78 Union $11.77 AGWSR $11.28 Gladbrook-Reinbeck $11.18 East Marshall $9.84

Comparison to Neighboring Districts: Even with the $4.05 increase, East Marshall CSD’s total levy rate would be $13.89, still below many neighboring districts, which currently average $15.76.

LONG-TERM VALUE

The proposed investment in our facilities would provide:

50+ years of modern educational facilities
Stable tax payments (no annual increases like utilities)
Enhanced property values through a high-quality school system
Reduced operational costs through efficient design

The School Board and administration have a long history of respecting the needs of our property taxpayers. This investment represents the culmination of eight years of deliberate financial planning to ensure we could make this critical investment in our students' future while maintaining fiscal responsibility.

Bottom Line: For the cost of a daily coffee for most homeowners, we can provide modern, safe, efficient educational facilities that will serve our community for generations.

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