In Iowa, farms are taxed based on production as opposed to land value and residential property is taxed at approximately half its assessed value, according to a report in The Republic. Commercial property, however, is taxed at 100 percent of its assessed value.

Republicans in the state legislature, backed by Gov. Terry Branstad, favor a plan to reduce the commercial property tax rate to 60 percent of the property’s assessed value. Democrats believe that the reduction should apply only to the first portion of the commercial property value. Their intention is to reduce the burden on Iowa businesses, which tend to be smaller while continuing to collect revenue from larger businesses that tend to be from out of state.
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The two sides have not yet reached a compromise.

Last Updated on March 28, 2012 by Ramin Seddiq