Iowa Legislature will take on small business tax break - KWWL - Eastern Iowa Breaking News, Weather, Closings

Iowa Legislature will take on small business tax break

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CEDAR FALLS (KWWL) -

The burden of a poor economy seems to have fallen on the backs of small businesses and now state leaders are trying to find a way to ease that burden.

Democrats from the Iowa State Senate are touring Iowa trying to gain support for their plan. On Thursday they brought it to Cedar Falls.

Right now home owners in Iowa only pay 50 percent of their home's value in taxes where business owners have to pay 100 percent and some say that isn't fair. The state doesn't get any of the property tax dollars. That money stays in the city, county, and area schools.

The state does get to set policy and that's what legislative leaders are hoping to do in the upcoming session.

Senator Jeff Danielson along with other senate leaders met with small businesses owners to discuss their plan at the Oster Regent Theater in downtown Cedar Falls. The senate hopes to move forward with a plan that was put together last year. It passed the senate with bipartisan support last year 46 to 4, but it didn't go any further.

If this bill would be passed, during the first year of the tax break, the commercial property tax credit would be worth approximately $600 for property valued at $30,000 or more. As the size of the fund grows, the value of the credit will increase.

Senator Danielson says the tax credit will not take money away from local governments and schools.

"If we didn't do it in a responsible way that is offer the tax cut that shifted it to either the local levels or somewhere else in our state budget then that's not responsible," said Danielson.

The small business owners at the meeting say they were glad the legislature is taking up this issue as they feel the burden is becoming too great for them to handle during slow economic times.

Governor Branstad and the Iowa House are also working on plans to decrease the burden on small business owners.

The Iowa State Legislature will reconvene on January 9th.

 

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