Rolling back commercial property taxes
Two things are for certain – death and taxes.
Emmet County Assessor Barb Bohm told Estherville Rotarians Thursday how one of those certainties – property taxes – could be a little less taxing for commercial property tax owners.
Until the 2012 tax year, commercial property taxes were assessed at 100 percent.
However, in an effort to relieve the commercial property tax burden – and hopefully draw more businesses to Iowa or to encourage existing businesses to expand – the Iowa Legislature approved a graduated commercial property tax rollback, with commercial property taxes for 2013 rolled back 5 percent – not a lot, but at least a beginning.
Bohm said the rollback will continue for the next 10 years until commercial property taxes are the same as residential. That rate for 2013 is 54.002 percent. The 2014 tax year will subsequently see a rollback to 90 percent for commercial.
Bohm, who sent applications for the Business Property tax Credit to Emmet County commercial property owners, provided information showing there would be a $544.07 credit per unit on a $150,000 commercial property. In order to qualify as a unit, however, commercial property owners need to meet certain qualifications. Property must be:
n Within the same county.
n Have the same classification.
n Have the same ownership.
n Be a separate tax parcel.
n Be operated by that person for common use and purpose.