Plan shifts commercial property tax to residential property taxpayers (IPP)

[cyberswede]

I thought this item wasn't going to make it for a vote this session. Now, I'm not so sure...
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http://www.iowapolicyproject.org/2011%20Research/110503-propertytax.html

Unfair and Unbalanced
IPP Policy Brief: Plan shifts commercial property tax to residential property taxpayers
May 3, 2011


In the rush to close the legislative session, proposals with potentially far-reaching impacts are not receiving the scrutiny they deserve. One such proposal, House File 691 (formerly HSB240) would reduce commercial property tax assessments by 40 percent over five years — an unnecessary cut in our already low-tax state. Reducing commercial property taxes would further shift local funding of cities, schools and counties to residential property taxpayers. In addition to reducing commercial property taxes, the bill severely limits the ability of local governments to meet the needs of their citizens.

Any proposals to cut taxes should be automatically suspect when Iowa faces funding challenges and no balance is offered to assure adequate and stable revenues to meet public priorities. This is doubly the case with proposals as poorly conceived and poorly analyzed in a public forum as HF691. Backroom deals on policy of this magnitude are destined to produce poor results.

{snip}

In addition to slashing business property taxes, HF691 limits the amount of property tax revenue city and county governments may raise to support public services, in exchange for eliminating the cap on property tax rates (the “general fund levy limit”). Revenue growth from one year to the next would be limited to inflation plus new property valuation.

More at link above

[progressoid]

1. Jesus, I had to tap our line of credit to pay property taxes last year.

I feel my blood pressure rising. :grr:

[Rambis]

2. Same shit plan as house file 9 (NM)

x

[rurallib]

3. Part 1 of the Shock Doctrine play

1) Create a crisis
2) make the off the shelf answers sound like they fit the problem
3) pass said law (answer)
4) Privatize governmental service ruined by answer
5) Create new problem, repeat cycle.