The issue has stymied state lawmakers for the better part of 30 years, and it could trip up session-opening sentiments that the moment of reckoning had arrived for changing Iowa’s commercial property tax laws.

Lawmakers from both major parties were optimistic in January that they could come to terms on legislation to reduce the tax, which is levied on the full value of commercial properties.

Gov. Terry Branstad has a plan and House Republicans have a plan to roll back the tax to 60 percent of the assessed value of all commercial properties. Senate Democrats have a more modest proposal that they say would help small businesses.

The issue is complex and touches on all of the state’s property tax schemes, including the way taxes are established for residential and agricultural properties. You have the question of cutting one tax and increasing another. In addition, municipalities are sure to take a hit to the treasury if they lose revenue from commercial property taxes.

Six experts will discuss the issue April 18 during the Business Record’s CRE Trends and Issues forum. They are Jeffrey Boeyink, the governor’s chief of staff, Rick Clark, Des Moines city manager, Alan Kemp, executive director of the Iowa League of Cities, David Maahs, executive vice president of economic development for the Greater Des Moines Partnership, Rep. Tom Sands, chairman of the Iowa House Ways and Means Committee, and Gretchen Tegeler, executive director of the Taxpayers Association of Central Iowa.

Without getting into the nitty-gritty, we asked the panelists where they stand on the issue and why. They’re sure to discuss the grubby details during the forum.

Do you support a change in Iowa’s commercial property tax law?

Rick Clark
City Manager, City of Des Moines

“I support reform of the method of financing cities that includes less reliance on property tax, lower tax rates, additional revenue streams that diversify our revenue base, and a reduction in the burden of unfunded mandates.

“It is essential that we look at solutions that are comprehensive – and by that I mean that we can’t look at just reducing property tax revenues; we must also look at replacing those lost revenues with other revenue streams and we need to do something about the crushing burden of unfunded mandates. We need package solutions, not piecemeal solutions.”

David Maahs
Executive Vice President of Economic Development, The Greater Des Moines Partnership

“The Partnership supports the development of a simplified property tax system that is equitable to all classes of property.

“Specifically, the Partnership supports meaningful commercial and industrial property tax relief that is coupled and linked with targeted alternative revenue streams, regulatory relief and guaranteed state backfill for local governments.”

Tom Sands
State Representative, House District 87

“Yes, I support a change in Iowa’s commercial property tax law.

“As long as it includes broad-based property tax relief, mitigates the shift occurring to residential, slows the growth of government to match the ability of those who are paying the tax. The relief/reform needs to be substantial, also.”

Gretchen Tegeler
Executive Director, Taxpayers Association of Central Iowa

“We support the policy change.

“When you compare the largest city in each state, the Des Moines metro comes in at No. 3 nationally. Providence, R.I., and Detroit are ahead of us, then it drops quite a ways. We don’t want to be an outlier. There are a lot of things you can point to as to why there are differences. I just can’t find a thing that would explain it other than it is just high. Just from a fairness standpoint, our tax system has gotten too far out of whack.

“I believe it is an impediment (to economic development). …Property taxes are a huge cost for businesses, especially ones that are just surviving at the margins.”