Property tax cut costing the state - KWWL - Eastern Iowa Breaking News, Weather, Closings

Property tax cut costing the state

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A large property tax cut that was approved in Iowa two years ago has become a major expense for the state. 

People disagree on whether or not this tax cut was a good investment. 

The business- focused tax cut is costing the state budget about 260 million dollars this current fiscal year. 

When he signed it into law,  Governor Terry Branstad said it would help families and make it easier for businesses to grow in Iowa. 

But in the spring, lawmakers struggled with a limited amount of available revenue. 

Democratic Senator Joe Bolkcom said the cost of the tax cut affected democratic spending goals. 

It's hard to know exactly how many jobs have been created and how many businesses have improved because of the tax cut. 

The state's unemployment rate has declined over the past year, but the tax cut can't be directly credited with that. 

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