Tax cap will be set at 2 percent.
NFIB Applauds Iowa Legislature for Passing Property Tax Reform
Small Businesses greatly burdened by excessive hikes that hindered growth and success
DES MOINES, April 25, 2019 – For years, small business owners have been saying their property tax bills have been increasing steeply, putting a damper on the business owners’ ability to grow, create jobs and succeed. NFIB, the leading small business association in Iowa, with nearly eleven thousand members in the state, applauds the state Senate and House for passing a bill to help limit those increases in the future.
“Small business owners say they were overwhelmed by the huge increases in property taxes that seemed to rise exponentially, as much as 60 percent a year for some, even though they had made no improvements to their building or land,” said Matt Everson, state director of NFIB in Iowa. “A liquor store owner in Kossuth County explained that to pay for this year’s 62 percent tax increase, he would be forced to sell an additional 500 cases of beer. We are grateful to the Senate and House for helping to curb unsustainable growth in property tax bills.”
The legislation would limit annual property tax growth in a city or county to 2 percent, and if the local government body wants to grow tax collections above that 2 percent limit, there is a requirement for a public hearing and a two-thirds majority vote of the Council or Supervisors for passage.
“The soaring property tax burden was making some businesses shy away from expanding in Iowa, which negatively impacts the state’s financial health,” added Everson. “One resource development company told NFIB his taxes rose 30 percent in three years, so he opted to expand his Missouri facility instead of the Iowa plant. This legislation is a great first step in helping to curb the egregious growth experienced in property taxes over the last 17 years, and hopefully, this will stop small businesses from fleeing and taking jobs with them.”
NFIB is especially grateful to Senate Majority Leader Jack Whitver, Senate President Charles Schneider, House Speaker Linda Upmeyer, House Majority Leader Chris Hagenow, Senate Ways and Means Chairman Randy Feenstra, House Ways and Means Chairman Lee Hein and State Representative Dustin Hite for their leadership on this issue. We applaud every lawmaker who voted in favor of the property tax cap and added transparency to the process.
“This was the most significant issue for NFIB’s small business owners—over one thousand emails were sent to lawmakers personally to ask them to vote for the tax cap. We look forward to the Governor signing this bill into law soon to start the process of much-needed support for small businesses and other property owners from around Iowa.”
Contact:
Matt Everson
State Director of NFIB in Iowa
[email protected]
