Posted at: 02/18/2013 1:37 PM
DES MOINES, Iowa (AP) - Gov. Terry Branstad's proposal to cut commercial property taxes and limit increases to residential and agricultural property taxes has been introduced in the Legislature.
Under the proposal, introduced Monday in the state House, the state would gradually reduce the taxable portion of a commercial property's value, so owners would eventually pay taxes on just 80 percent of the assessed value. The state would provide funding to local governments to make up lost tax revenue.
The proposal would limit the amount that residential, agricultural and commercial values could rise in a year to 2 percent, down from the current 4 percent cap for residential and agricultural properties.
Lawmakers have expressed support for property tax relief, though Senate Democrats have offered an alternate plan to reduce commercial property taxes.
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