DES MOINES, IOWA -- A measure has been approved in the Iowa House of Representatives that would cut property taxes paid by businesses. The measure would cut taxes nearly in half over eight years.
Proponents of the measure say it will boost the economy in the state, citing that Iowa’s commercial property taxes are higher than surrounding states.
Some lawmakers are saying that the tax cut will affect the budgets of local government. They estimate it will cost local governments $357 million over the life of the measure.
The measure was approved by a House vote of 59 to 38. It now goes to the Democrat controlled Senate.
Iowa senators say they will push a property tax cut that is targeted toward small businesses.
Governor Terry Branstad has voiced his support of the House plan.
Debate is likely to continue throughout the remained of the congressional session.
The Associated Press contributed to this story.
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