The Iowa House considered a plan to provide significant commercial property tax relief for Main Street and Iowa small businesses. The plan would have created property tax credits up to $200 million for commercial property owners. |From Rep. Sharon Steckman
The Iowa House considered a plan to provide significant commercial property tax relief for Main Street and Iowa small businesses. The plan would have created property tax credits up to $200 million for commercial property owners.
Instead, the House majority party adopted a property tax plan that will cost the state over $800 million annually. The plan also shifts costs onto homeowners and middle class families. If residential property valuation alone had to increase to offset the projected costs of this plan, residential assessments would have to increase by over 30% in 5 years to just break even.
To align their plan with the Governor, the majority party also accepted an amendment to tax new construction of commercial property immediately at a much lower rate, which gives Wall Street corporations that can build new stores a significant advantage over established Main Street businesses across Iowa.
In addition to raising property taxes on homeowners, the plan passed by the House will starve Iowa schools and put significant financial pressure on local communities. The statewide loss to cities under the plan is $558 million over just five years.
Senate File 522 returns to the Senate for consideration of the changes made by the House.|