One of the biggest items on the agenda for the 2012 legislative session is Commercial Property Tax Reform. Currently owners must pay 100% of the taxes on commercial buildings. Homeowners pay around 40%. Governor Terry Branstad wants to lower the percentage for commercial properties to 60% over the next 8 years. Our local lawmakers agree that they would like to see commercial property taxes lowered.
Senator Sandy Greiner thinks it’s an issue that needs to be handled carefully. She says it’s a tough issue to deal with because state lawmakers set the rules for collecting the taxes, but the money goes to county and local governments.
She also worries that home and farmland taxes would increase as the commercial taxes decrease. Branstad says through state reimbursements and business growth, local governments would lose funding. He laid out his plan for commercial property tax reforms yesterday during his Condition of the State address.