Iowa’s fiscal responsibility has allowed us to cut property taxes and still end the fiscal year with a budget surplus.
Senate File 295, approved in 2013, included the largest property tax cut in Iowa history. Iowa homeowners, farmers and businesses will save nearly $3.9 billion in property taxes over the next 10 years. A key goal of the bipartisan legislation is encouraging new jobs and business growth by reducing taxes on commercial properties, which have been taxed at about twice the rate of residential properties.
The commercial property tax cut will have its first impact by reducing property tax bills this month. Every business gets a tax break, with a bottom-up approach that targets help to our small and Main Street businesses– Iowa’s biggest job creators. When fully phased in, two-thirds of Iowa commercial properties will have their taxes reduced to the same rate as residential properties.
Iowa businesses will see big savings. Statewide, 70,444 business owners will see a total cut of more than $49 million in their property taxes.
This commercial property tax cut helps Iowa’s small businesses more than giant, out-of-state corporations. In addition, we made sure local services wouldn’t suffer by having the state reimburse local governments for the entire amount of the commercial property tax cut.
To receive this tax credit, businesses must file a one-time application. More information is available through your local assessor or the Iowa Department of Revenue at www.tax.iowa.gov/2013-property-tax-reform.