No decision on tax abatements, flood victims frustrated

Flood victims won't find out for nearly a month whether they have to pay property taxes on their damaged property.

“We don't have any money to pay the taxes right now,” said Dan Davies, a landlord who owns two flood-damaged duplexes near Taylor School. He and his wife have gotten no government help, he said, and have spent their personal savings to restore their two properties.

“Are we going to have to pay these taxes when we've had no income on our properties?” Davies asked.

The question has been facing the Linn County Board of Supervisors for more than a year, but it wasn't until several months after city, county and school district annual budgets were certified and residents started to receive tax bills in the mail that the supervisors called a meeting with city and school district officials to discuss whether they will give flood victims a break on property taxes.

They arrived at no answer. Monday's meeting resulted in the formation of a new committee, and a promise from Supervisor Lu Barron that the board will make a decision in early September.

Of the roughly 20 public officials present, only Cedar Rapids Council Member Chuck Wieneke took a clear position.

Every flood-affected property owner, he said, “should have their property taxes abated during any time frame that people were not able to use that property.”

But Wieneke won't make the call. By law, property tax abatements can only be given by the Board of Supervisors, an awkward reality considering the decision will have more impact on city and school budgets than on the county's.

City Assessor Scott Labus estimated up to $5.2 million in property tax revenue would be lost if tax abatements were given to every flood-affected property. No one at Monday's meeting suggested a blanket tax abatement, but finance officials from the city and county expressed concern at the possibility of each having to fill a more than $2 million funding gap. Cost-cutting was not discussed.

“There is going to be a redistribution of taxes,” Linn County Finance Director Steve Tucker said. “If one group doesn't pay, someone else will pay.”