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HomeMy WebLinkAbout2012-01-06 Correspondence-DI i st Y4, ­,8a44,WL Commercial Property Tax Cut Fact Sheet Encouraging jobs and economic development by focusing help on small businesses Summary Under the Iowa Senate proposal (which was approved in an overwhelming, bipartisan 46 -4 vote), every Iowa business would receive a commercial property tax cut. For four out of five of Iowa commercial property taxpayers, their commercial property would be taxed at the SAME rate as residential property. That is a 45 percent cut in their current commercial property taxes. Because this is a state - funded tax credit, there would be no direct or indirect tax shift onto residential property taxpayers or harm to schools and local government. Under the House Republican proposal, commercial property taxes would be cut by 25 percent. Governor Branstad wants a 40 percent cut. Neither plan would fully replace the losses to cities, counties, and schools. Both would cause large residential property tax increases. How will large corporations fare under each plan? Senate Plan: The tax rebate tops out at $6,120 for property valued at $340,000 and above. House and Governor's Plans: There is no limit to the amount that a large corporation could receive from the state of Iowa. Source: Estimates based on a statewide survey by William T. Greozel, Johnson County Assessor For more information: See Senate File K2 (http: / /alturi.com /mmrom) Senator Joe Bolkcom, joe.bolkcom @legis.iowa.gov, (319)337 -6290 Senator Herman Quirmbach, herman.quirmbach@legis.iowa.gov, (515) 292 -8984 Per store tax cut under Total Statewide Tax Corporation the Iowa Senate's Plan Cut Under Governor Branstad's Plan Wal -Mart $6,120 $7,063,936 Home Depot $6,120 $1,154,050 Menards $6,120 $2,891,618 Casey's $6,120 $1,910,400 General Growth (Coral $6,120 $5,600,000 Ridge, Jordan Creek) Source: Estimates based on a statewide survey by William T. Greozel, Johnson County Assessor For more information: See Senate File K2 (http: / /alturi.com /mmrom) Senator Joe Bolkcom, joe.bolkcom @legis.iowa.gov, (319)337 -6290 Senator Herman Quirmbach, herman.quirmbach@legis.iowa.gov, (515) 292 -8984