Senate files property tax cut compromise

Statement by Senator Joe Bolkcom, chair of the Ways and Means Committee

We filed a property tax cut bill today that contains elements of proposals from the Senate, the House and the Governor. When fully implemented, the legislation will encourage job creation by cutting taxes by almost $350 million.  Our goal is to increase economic growth and jobs in Iowa. Iowa small businesses will benefit the most, thanks to the insistence of Senate Democrats.”

Here are some highlights of the bill:

• All commercial property will receive a tax cut
• Nearly two-thirds (63%)of all commercial property will receive a 40 percent tax cut.
• Taxes will be cut by 40 percent on the first $100,000 of assessed value.
• Local governments will be reimbursed for most lost property tax revenue.
• Limits on how much residential property taxes can increase are toughened.

In addition, the legislation would more than double the state’s Earned Income Tax Credit. This legislation provides $31 million to help working families make ends meet and give a boost to local businesses.

Other provisions will encourage additional affordable housing by cutting property taxes on apartments and eliminate competitive disadvantages in the taxation of Iowa telephone companies.

Link to SSB 3205.