Democrats Answer Back on Commercial Property Taxes
Democrats in the Iowa Senate are upping the ante for property tax cuts, but agreement with Republicans still appears elusive. Both parties say commercial property tax relief is a high priority this year.
There’s consensus that commercial property taxes are disproportionately high. The latest Democratic plan, again helps small main street businesses more than large out of state corporations.
Des Moines Democrat Matt McCoy says a business in his own family is a good example:
"So my dad’s hardware store ... is valued at $100,000," McCoy says. "So my dad will see tax relief fully phased in of 43% on that $100,000 building.”
Democrats say they’re moving closer to what Republicans want by increasing the size of their tax relief bill to 250 million dollars, and by extending the tax break to the land that buildings sit on. But the Democrats provide tax credits instead of reducing the amount of a property’s value that is taxed. Republicans say tax credits aren’t reliable.