Iowa businesses demand action on property tax reform

Posted: December 05, 2008

By Rod Boshart, The Gazette

DES MOINES — Frustrated Iowa business leaders today called for up-or-down legislative action on property tax reform or allowing counties and regions to charter their own tax strategies that fit their needs.

Members of the Iowa Chamber Alliance — an organization representing 16 Iowa metro areas — said they are concerned Iowa's system of taxing commercial and industrial property continues to be uncompetitive and further delays for reform is intensifying a disproportionate burden.

Alliance leaders told a Statehouse news conference today they are concerned state leaders lack the political will or the consensus to achieve a statewide overhaul of the property tax system and are offering two alternatives to spur meaningful reform.

David Roederer, the alliance's executive director, said his group supports the establishment of a commission to make a universal reform recommendation that could either be adopted or rejected, but not modified, by the Legislature — similar to the way Congress handled recent decision on closing military bases.

The other option would be for state policymakers to give counties the authority to devise their own taxation systems that would fit the specific needs of property owners in their localities or regions.

Sen. Joe Bolkcom, chair of the Senate Ways and Means Committee and a co-chair of a study panel looking at property tax reform, said legislators are considering giving local government officials authority to impose new fees and taxes that would provide direct relief to and make them less dependent on property owners.

"The concern is that may in fact work, but is that just a temporary fix and the next time there's a problem, what do you do?" Roederer said. "If we allow people at the local level to devise their own property tax system to meet their current needs, then it would be less onerous on them to change it to meet the needs as they occur.

"The other concern that people have is if you just give additional taxing authority without tying it into direct impact on property taxes, then what you end up with is just more taxes and no relief," he added.

Chamber Alliance members also called for revamping Iowa's income tax system into a two-tiered rate system that would be simpler and would eliminate confusion when marketing Iowa as one of only four states with federal deductibility provisions.

Other elements of the alliance's "pro-growth" 2009 legislative agenda called for expanded passenger rail service, increased emphasis on upgrading infrastructure and attractions, and streamlined immigration processes for highly skilled workers and allowing employers to recruit immigrant workers in labor-shortage areas.

"We believe statewide leadership should address key issues including infrastructure planning and protection, requiring rigorous statewide education standards, strategies for retaining and attracting work force and lowering commercial property taxes and health insurance costs," said Debi Durham, ICA chair and president of the Siouxland Chamber of Commerce.

"The Alliance is committed to creating an environment that is conducive to business success leading to job expansion and increased state and local revenues," she added.