09/25/2007
The Legislative Property Tax Study Committee recently held a hearing for public testimony as it continues its study of Iowa's property tax system. The committee is reviewing the state's property tax laws and will be making recommendations on how to reform and simplify the system.
We're fortunate to have a seat at the table, as one of our members is representing all commercial property taxpayers on the committee. Tom Zucker, a longtime member of NFIB who currently sits on our statewide Leadership Council, has owned and operated Zook's Harley-Davidson in Des Moines for more than 26 years.
On Sept. 12, Zucker was invited to testify before the committee to offer his insights as to the cause and proposed solutions to the property tax problems in Iowa.
"As a commercial property taxpayer let me be clear on one very specific point," Zucker said. "Commercial property taxes are the single largest problem facing Iowa's small business owners."
During his testimony, Zucker cited the July 2006 National Taxpayer's Conference Report that ranked Iowa with the fifth highest commercial property taxes in the country.
"What does this mean?" Zucker asked to committee. "I move my business to 45 other states and I will pay less in property taxes than I do in Iowa."
Zucker also referenced a Jan. 30 article in the Sioux City Journal that reported Wilson Trailer, an Iowa-based company did not Iowa for its new plant despite having its headquarters in Sioux City. In the article Wilson Trailer CFO Larry Countryman was quoted saying they pay twice as much property tax in Iowa than it does in any other state.
"In my opinion, one of the biggest things continually overlooked in the ongoing tax debate is need," Zucker said. "It seems that whenever we have a surplus we find a way to spend it on a new program that may or may not be sustainable thereby fueling the need for high taxes regardless of the economic times."
Zucker suggested to the members of the committee that Iowa's property tax system has become a "rob Peter to pay Paul" situation where as spending continues to increase requiring our taxes to grow as well.
"Iowa's elected officials need to do what is right for the future of the state and the people of Iowa," Zucker said. "We either move legislation to get our system where it could have been two years ago or we continue down the same path we have been on. After all, Paul has gotten pretty comfortable."
