Legislature Looks At Property Tax Reform
WOI Radio has been reporting today on efforts at reforming the property tax structures in Iowa:
DES
MOINES 2005-04-12 How to make Iowa's property tax system fairer,
clearer, and more competitive with other states was under discussion
again at the statehouse.
A comprehensive tax reform bill promoted by
Iowa cities and counties was up for brief debate, but a competing plan
then took center stage. Many agree commercial taxes should be curtailed
so Iowa can better compete for industry. The new proposal would
dramatically reduce those taxes down to what homeowners pay. Nevada
Republican Jim Kurtenbach said that will draw industry here. The
Kurtenbach plan would also bring taxes on all commercial rental
property down to the residential rate.
Alternatively, the city/county
plan would curtail commercial and industrial tax increases by making
more other entities taxable, including second homes, farm buildings and
non-profits. Susan Judkins with the Iowa League of Cities admits that
will be politically difficult. Judkins says the new proposal would
erode the tax base for cities and counties. Yet another property tax
overhaul will likely be unveiled later this week, the work of the
governor's bipartisan group.
Over the
past few days (esp. after reciving my new home assessment), it seems
that increased property taxes are due to two things:
a) Tax hikes to pay for local improvements and services.
b) Market-based assessments that have risen stratospherically in the past 10 years – and continue to rise.
It seems
to me that restricting commercial property taxes while looking to tax
farm buildings and non-profits is not exactly the type of 'reform' that
is needed.
It's
also rather telling that a plan promoted by cities and counties (who
rely on property taxes to provide local services) was shelved in favor
of a plan to cut commerical property taxes and place a greater burden
on farmers and non-profit organizations.
Just who is driving this debate, anyway?
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