Governor Branstad signs property tax relief bill into law - KWWL - Eastern Iowa Breaking News, Weather, Closings

Governor Branstad signs property tax relief bill into law

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HIAWATHA (KWWL) -

Property tax reform in Iowa is here to stay.

Wednesday afternoon Governor Branstad signing Senate File 295 issuing what's being called the largest tax cut in Iowa history.

Cedar Rapids small business owner Bruce VanKerckhove says Iowa's high property taxes have been a hindrance.

"Why would a small business want to come to Iowa when Iowa's tax burden is already one of the highest in the nation?" VanKerckhove said, co-owner of Allegra Print and Imaging.

Now his company of fewer than 20 employees will finally see some tax relief.

"Any relief would be beneficial to all small businesses in Iowa," VanKerckhove said.

Governor Terry Branstad has signed legislation that will provide an estimated $4.4 billion in property tax relief over the next ten years.

"This is the beginning of correcting a long, long-ago mistake," Branstad said.

Under the new law, all commercial and industrial property owners will see a ten percent reduction in taxable value.

Small business owners like VanKerckhove will receive an additional tax credit.

"It does send a signal that Iowa is open for business, and we are going to see reductions in Iowa's very high commercial and industrial property taxes," Branstad said.

Homeowners and agricultural property owners will see limits as to how high taxes can increase each year.

An owner of a $100,000 home in Cedar Rapids, for example, would save about $50 a year.

Owners of multi residential properties will see significant tax relief as those properties will be reclassified as residential.

Iowa workers have been lumped into the law as well, set to receive an income tax credit at the end of the year around $50.

"The good news is, there are benefits to all," Branstad said.

There has been some concern on the effect of the new legislation on local governments, and whether lawmakers will continue to fund the new changes in future sessions.

 

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