Tax abatements will mean layoffs in Linn County

Tax abatements for flood victims will lead to layoffs in Linn County government.

A Board of Supervisors decision on property tax relief for flood victims is still weeks away, but supervisors were already talking about a “reinvention of government” on Wednesday.

“Everyone should be put on notice. Everybody's going to be evaluated,” Supervisor Brent Oleson said of county departments. “This budget's going to be a hard one anyway…This only exacerbates that.”

If the Board of Supervisors forgive property taxes for flood victims whose homes were destroyed or damaged in the flood, the impact on local government budgets will be an estimated $5.2 million.

The bulk of that will be shouldered by the City of Cedar Rapids and Cedar Rapids Schools, but it's the supervisors who will make the decision.

It will be an “incredibly tough” decision, County Finance Director Steve Tucker said. On one hand, local government services face possible cuts, but on the other, flood victims who may not even be able to pay taxes are asking for relief on properties that aren't livable or bringing in income.

“How are those people going to pay taxes?” Supervisor Jim Houser said.

“I don't really care what happens to the Cedar Rapids budget, to the Cedar Rapids schools budget, it's the human factor,” Houser said. “Everybody that's involved in collecting revenue is just going to have to cut back.”

Supervisor Ben Rogers said the “human element” is important, but the services local government provide are important as well.

“I am also very concerned about what this does to the school board's budget, the city's budget, because they provide services,” Rogers said.

The Cedar Rapids City Council will take up discussion of tax abatements tonight.