Legislative Column From Rep. Peter Cownie: Property Tax Increases Startling

Property taxes have gone up 68 percent in Iowa since 2001. This was reported to the House Ways and Means Committee last week by the nonpartisan Legislative Services Agency. This certainly startled me as I hope it does all Iowans. Let’s go through some other facts regarding property taxes that were reported to the committee.

Do you have a comment or question about property-tax reform or other issues before the Iowa House?

Seventy percent of Iowa’s property tax base in fiscal year 2012 will come from residential and commercial property taxes. Sixty percent of the property tax base in fiscal year 2001 came from commercial and residential property owners. This means there is less agricultural and industrial property tax base in Iowa today. According to the Legislative Services Agency, these percentages changed due to the migration of rural Iowans to urban centers.

Property tax reform is a cornerstone of the 2012 legislative session. Gov. Terry Branstad has determined it to be his top issue. The House and the Senate both agree that reform needs to occur. The problem is how to come to a conclusion that is fair to all sides.

Gov. Branstad believes that the rising property tax burden on Iowans is a detriment to job growth and job creation in Iowa. I agree. Therefore, property taxes need to be reduced. Sixty-eight percent growth in property taxes over the past 11 years is simply unacceptable. We need to find common ground that all sides can live with.

There is no single magic bullet for government to spur job creation. If there were, it would have been done long ago. However, government can provide a more stable environment for businesses in Iowa. Property taxes fall directly under this theme. Property taxes consistently rising at excessive rates the past 11 years have not provided a stable environment for businesses. I am hopeful and optimistic that we will be able to address property tax reform this session. This would be good for all Iowans.

Also, please be sure to mark your calendar for our first legislative forum in Windsor Heights this coming Saturday, Jan. 28, from 9 a.m. – 11 a.m. at the 3E Company, 953 73^rd Street, Windsor Heights. Please stop by and let us know your thoughts on the current session.