Legislature Looks At Property Tax ReformWOI 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?
