HEADLINES : Iowa

Iowa House approves budget that includes tax cuts

Forbes | by Mike Glover | June 9, 2011

DES MOINES, Iowa -- The Iowa House on Wednesday approved a measure calling for deep property tax cuts in a $5.9 billion state budget supported by Gov. Terry Branstad and Republican lawmakers.

Supporters of the measure say Iowa's property taxes are out of line with neighboring states and stifle economic growth, while critics argue the cuts simply shift the tax burden to others.

The plan includes sharp reductions in commercial property taxes and increases the state's share of local school budgets, effectively using state dollars to replace local property taxes that make up the bulk of school budgets. That would cost $347 million a year when fully implemented.

 

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