Iowa has joined the list of states that have lowered their commercial property taxes in order to attract businesses and developers. Iowa governor Terry Branstad signed a bill in Hiawatha yesterday at a local business, the Associated Press reports.
“The tax relief in this bill will put more money in the pockets of Iowa families and make it easier for Iowa businesses to invest in growth,” Branstad said. “It’s a win-win for everybody.”
In addition to providing some income tax breaks, the bill gradually reduces the taxable assessments for commercial properties. The bill also contains property tax relief for apartment buildings and limits how quickly agricultural tax assessments can grow.
Some local officials are concerned that their budgets will shrink dramatically under this new tax regime but Gov. Branstad dismissed these concerns, noting how much the state subsidizes municipalities.