News Details

Committee seeks overhaul of tax system

By James Q. Lynch

The Gazette

A8

DES MOINES — Another legislative committee is looking at commercial property taxes in hopes of lightening the burden on business and making the state more attractive for economic development.

Any change may present new challenges, Rep. Phil Wise, D-Keokuk, said Monday, but the five Democrats and four Republicans on the House panel believe potential benefits outweigh maintaining the current system that provides much of the funding for cities, counties and schools.

“We have come to the conclusion that the status quo is more damaging than passing any of those pitfalls” that might be associated with change, Wise said.

He said Gov. Chet Culver’s proposal to give $25 million in $250 income tax rebates to commercial property taxpayers “started the ball rolling,” but doesn’t go far enough.
 

Senate Minority Leader Mary Lundby, R- Marion, agrees, but is skeptical.

“I think property taxes is a subject where we have looked at it and looked at it and looked at it and it is now so complicated that I cannot see any working group being able to solve it this year,” Lundby said.

Wise acknowledged the challenge the panel faces, but said lawmakers “can’t wait for reports to come out on 2008 or 2009. We need to do something now to put us on the right course knowing full well that we aren’t going to get commercial property taxes reduced to the level we want this year.”

Wise hopes to see tax relief legislation approved in the House and sent to the Senate for consideration this year.

Among the subcommittee members is Rep. Tyler Olson, D-Cedar Rapids.

Rod Boshart of The Gazette contributed to this story
 • Contact the writer: (319) 398-8375 or james.lynch@gazettecommunications.com