Immediate relief for commercial property tax payers and a two-year study on commercial property taxes were the two main recommendations in a report submitted to Gov. Chet Culver by the Commercial Property Tax Task Force. Culver gave the task force 30 days to meet and make recommendations; the nine-member group submitted a final report on Jan. 26.

The report said Iowa’s tax system has “created a disproportionate tax burden on commercial property as compared with other classes of property. This shift puts commercial property tax payers and Iowa’s businesses at a distinct disadvantage when compared to other states.”

To address this problem, the task force recommended that the state provide immediate tax relief to commercial property owners by providing a commercial property tax refund and continuing to equalize state education funding to relieve pressure on poorer school districts.

The report also recommended that a 21st-century tax system study should be conducted by 2009. The task force suggested that study focus on decoupling agricultural and residential property valuations, creating a more transparent property tax system, improving efficiencies through sharing of local governmental services and reviewing and analyzing properties exempt from taxation.

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