Iowans pay less than the national average for state services, according to new Census information that provides the latest evidence of Iowa’s competitive standing.

“Iowa’s ranking keeps falling – Iowans are paying less for state services compared with the national average and residents of most states,” said Peter Fisher, research director of the Iowa Policy Project and author of a report examining the data for the nonpartisan Iowa Fiscal Partnership (IFP).

In his report, “Falling Below Average,” Fisher notes that the latest data show Iowa taxes overall remain competitive vs. other states. He also examines questions about taxes on business, particularly the drive to cut commercial property tax.

“The most eye-opening comparison is the one that shows how Iowans’ state taxes have changed in the decade after 1995,” Fisher said. “Both in terms of taxes paid per person and as a percent of personal income, Iowa is now in the bottom third of all states.”

By those measures, the new data show:  — Iowa state taxes per capita, or per person, were about $1,952 in fiscal year 2005, well below the average of $2,197 for all states. By contrast, Iowa state taxes in 1995 were $1,986 per capita (in 2005 inflation-adjusted dollars), just above the national average of $1,951.

— Iowa’s U.S. ranking on per-capita taxes fell from 18th in 1995 to 34th in 2005.

— As a percentage of personal income, Iowa taxes were 6.2 percent in 2005, compared to a U.S. average of 6.5 percent. In 1995, Iowa state taxes were 7.5 percent of income, compared with a U.S. average of 6.6 percent.

— Iowa’s U.S. ranking in taxes as a percent of personal income fell from 17th in 1995 to 36th in 2005.  

The new report for the IFP is available at www.iowafiscal.org.