Low Urbandale Tax Levy Credited in Housing Rebound

Urbandale city officials are crediting low property tax rates for a rebound in the residential housing market.

“if you look at the statistics, Urbandale is on track to regain the momentum in the housing market that was lost during the recession,” City Manager A.J. Johnson said in a news release.

Residential building permit valuations topped $70 million in 2012, a number city officials expect to surpass in 2013.

"We would like to think homeowners are considering Urbandale, in part, because of our low tax rate,” Johnson said. “In fiscal year 2012-2013, our tax rate was $9.62 per $1,000 valuation for the tax year that  began this week, we have lowered the rate to $9.57 per $1,000 of valuation which makes Urbandale a very attractive place to live."

Johnson credits Urbandale Mayor Bob Andeweg with the move to reduce the tax burden.

"When we sat down for our budget discussions and found our property valuations had moved from a -3.52 percent to a +4.49 percent, the mayor suggested we lower the tax rate and the city council agreed. This puts Urbandale in a very positive position in the Metro."

Creighton Cox, executive director of the Des Moines Home Builders Association, agrees and says the low tax rate in Urbandale was one of the reasons the city was chosen as the site for the 2013 Home Show.

"We're confident there is a direct correlation between property taxes and the decision as to where to build a new home.  If a house is valued at $400,000 a two or three dollar tax savings per $1,000 of valuation quickly adds up."

Cox says the Des Moines Home Show, which will open on July 13 has homes valued from between $400,000 to just over one-million dollars.  "We're excited for all of the metro but very enthusiastic about the property tax situation in Urbandale," Cox said.