LANDON: Iowans Are Right to Expect Progress on Property Tax Reform

For over a decade, property tax reform has eluded legislatures here in Iowa.  There must be a willingness to come to the table with new ideas and be open to discussing various options.  Iowans are right to expect progress on this issue.  The Iowa House is committed to achieving relief and reform that is permanent, predictable, significant, and affects commercial and residential properties alike. 

If we do nothing, the hardworking taxpayers of Iowa are staring down the barrel of a $2.6 Billion property tax increase over the next 10 years as the rollback becomes a roll up. As tax laws are currently written, most of that will fall on the shoulders of residential property owners.

Property tax reform affects Iowa’s economy.  Recently, Iowa was listed 9^th on a list of the top ten states to avoid due to high taxes.  The job growth we want and need depends on getting off that list and I will always work to accomplish that.

The House proposal will hold harmless property taxpayers anytime the state sets supplemental state aid funding (formerly known as allowable growth).  It will eliminate property tax levies that were raised in the past to fund this school aid.  On average, this would save Iowans $2.70 per $1000 in property valuations when fully implemented. 

The Governor’s proposal takes into account concerns for cities’ revenue while offering nearly $400 million in relief when fully implemented.  His plan contains a 20% rollback of commercial and industrial property valuations.  When fully implemented all four classes of property, agriculture, residential industrial and commercial will be tied together.  Assessment annual growth will be halved, from the current 4% down to 2%.  This plan includes a standing unlimited appropriation to backfill the loss of revenue to local governments.

The Senate plan contains a $250 million tax credit when fully implemented.  A commercial property valued at $324,000 or less would be taxed at the same rate as residential properties.

Please contact me if you have other ideas that should be considered.  The session is half over and a lot of good ideas have been proposed.  I will be working to build consensus and finally achieve real property tax reform and relief for Iowans.

Finally, I would like to invite you to attend the following Saturday legislative updates:

• March 9, 2013, 9 a.m., Neveln Center, 406 S.W. School St.

• March 23, 2013, 8 a.m., Café Diem, 2005 S. Ankeny Blvd.

• April 6, 2013, 9 a.m., Neveln Center, 406 S.W. School St.

• April 27, 2013, 8 a.m., Café Diem, 2005 S. Ankeny Blvd.