June 12 Iowa Governor Terry Branstad signed what
he said was the biggest tax cut in the state's history into law
on Wednesday, saying it will spur growth in the state's economy.
The law is expected to provide at least $4 billion in
property tax relief over a decade. In 10 years, both
agricultural and residential property taxpayers will be saving
about $500 million annually because of a reduction, to 3 percent
from 4 percent, in the growth of property assessments.
The bill also includes nearly $90 million of annual cuts to
income taxes, Branstad, a Republican, said in a statement.
"I am proud to say this tax cut passed with bi-partisan
support," Branstad said in the statement. "This tax relief bill
will put more money in the pockets of Iowa families and make it
easier for Iowa businesses to invest and grow in our state."
As the fiscal health of states is improving and tax revenue
is rising at the swiftest pace in two years, lawmakers are
turning their attention to taxes.
According to a survey in May by the National Conference of
State Legislatures, 35 states are taking up tax reform in their
current legislative sessions, with proposals for tax reductions
slightly outnumbering proposals for increases.
Iowa's new law cuts by 10 percent the taxable value on
commercial and industrial property, and it creates $125 million
of property tax credits targeted for small businesses.
Branstad told local media on Monday that the state would
"very likely" be looking at further income tax cuts next year.