Main Street Tax Cuts

Natalie Williams

The Iowa state senate recently passed a bill that would lower property taxes for business owners. The bill would reduce taxes by $250 million dollars for small businesses.

Currently, businesses pay 100 percent of the properties value in taxes, in comparison to homeowners who only pay 50 percent. The Main Street Tax Cut is a 40 percent commercial property tax cut for 80 percent of Iowa commercial properties.

Senator Jack Hatch said that the tax break is more fair to more businesses. He said that this bill would benefit everyone, but especially small businesses who need it.

“We have targeted our tax credits to those smaller mainstream owners that need it,” Hatch said.

Hatch said that Governor Branstad has been giving tax breaks to only big corporations, not the small businesses that have been creating jobs.

“I’ve been getting calls from a lot of small businesses, property tax is important to them.”

Hatch also that that big cooperation aren’t as concerned with property taxes as small businesses, “They don’t need it. They aren’t asking.”

The bill was split right down the middle of party lines as republicans voted against the bill and democrats for. The bill passed with a 29 to 21 vote in the senate and will now face the republican controlled house.

The bill is an alternative to Governor Branstad’s plan that would lower taxes for businesses from 100 percent to 80 percent of the property value in the next four years and would cost $400 million dollars.

In comparison, the senate plan will lower commercial property tax rates for four out of five Iowa businesses, resulting in a 43 percent tax cut for businesses.

Tim Albrecht from the governor’s office said that although this wasn’t the governor’s plan, it’s a positive movement in the right direction.

“We are moving forward in tax reform, this is a positive thing.” Albrecht said.

The tax cuts are aimed to help business, which will spur economy and inhibit job creation, Albrecht said. Currently, Iowan’s pay the third highest property tax in the nation.

“The governor believes we will have tax reform this year,” Albrecht said.