A Plan to Reduce Iowa’s High Property Tax Burden
Senator Paul McKinley answers a question by a local resident
For the first time in years, the Iowa Legislature is finally doing something about reducing property taxes.
This is a major change considering that during the last four years, Iowans have been treated to higher property taxes – and in most cases – significantly higher property taxes as a result of the actions of Governor Culver and his legislative Democrat majorities.
This new development is definitely something to celebrate.
Yet, there is much to accomplish.
Senate and House Republicans as well as Governor Branstad campaigned aggressively on reducing property taxes because we know Iowa has some of the highest tax rates in the nation.
This unfortunate reality is making our state exceedingly less competitive when it comes to attracting and encouraging small businesses and job creators. Tax rates are a major factor in determining where a business or entrepreneur will set up shop.
At a time when over 100,000 Iowans are out of work, many others are underemployed and thousands of new high school and college graduates about to enter the workforce, Senate Republicans believe we need to do all we can to promote our state and make it easier for good private sector jobs to be created.
That is why we are excited about our proposal to begin to reduce taxes on job creators.
Here are some of the big highlights of our proposal, a plan supported by all Senate Republicans:
We offer a property tax credit proposal that cuts property taxes by six percent a year for four years.
We offer an initial $50 million dollar state appropriation that will help defer the cost of the property tax reduction credit.
That original $50 million dollars increases by an additional $50 million dollars each year for four years up to a maximum of $200 million dollars per year.
In addition, we propose property tax levy limitations for cities and counties and in doing so, also offer taxpayers a better seat at the table with a much more predictable situation.
This is not a one-size-fits-all approach and there is flexibility measures built in to the total package.
When Senate Republicans attempted to offer our plan for a vote this past Wednesday, Senate Democrats used parliamentary maneuvers to shut down debate and deny Iowans a vote on this important pro-jobs legislation.
Instead, they offed their own plan – which is completely contingent on the state’s revenue growth.
According to the Senate Democrat plan, if state revenues do not grow by four percent a year, property tax owners would not see any relief.
One local small businessman e-mailed in and noted that under the Senate Democrat plan, his 3000 square foot small business, located in a local strip mall, would receive about $5 a month in tax relief.
We think you will agree that $5 a month is hardly much of an incentive.
While their plan is better than yet another property tax increase and is a slight step forward, it is not nearly adequate for what is required to make Iowa more competitive economically.
In the coming weeks, House Republicans and Governor Branstad will be pushing their plans forward for the public to evaluate. It is our hope that the Senate, House and governor can come together and find a compromise that works for everyone.
Iowans need lower taxes and Senate Republicans remain steadfast in our commitment to that important cause.
As always, I welcome hearing from you and can be reached by phone at 515-281-3560 or by e-mail at paul.mckinley@legis.state.ia.us
Paul McKinley
Senate Republican Leader
www.mckinleyforiowa.com
www.facebook.com/paulmckinley
www.twitter.com/mckinleyforiowa
