Passage of a property tax relief package will not alter Iowa’s overall tax “climate” for businesses in 2014 according to a national group that issues a yearly ranking.
For the second straight year the Tax Foundation — a conservative Washington, D.C. “think tank” — ranks Iowa 40th out of the 50 states in terms of how taxes in the state will impact businesses. That’s the “11th worst business tax climate” according to the Tax Foundation.
The group evaluates over a hundred different kinds of taxes states collect and ranks Wyoming as having the most positive tax climate for business, followed by South Dakota in the number two slot. An economist for the Tax Foundation says some states improved in the rankings because governors and legislators made their state tax codes simpler, so businesses aren’t forced to navigate “complex” tax laws.
In 2010, Republican Terry Branstad promised he’s pursue commercial property tax reduction if elected to a fourth term and this past spring Branstad and legislators finally agreed upon a property tax relief package. The Tax Foundation ranks Iowa’s property taxes on businesses as the 38th worst in the country. Iowa’s corporate income tax ranks 49th out of 50.
A spokesman for Branstad issued a written statement.”This report demonstrates what the governor and lieutenant governor hear in every county of this state: Iowa’s taxes are too high, and wildly uncompetitive with the rest of the country,” Tim Albrecht, the governor’s communications director, said. “This study again demonstrates why the governor focused on major tax reductions last legislative session, and why a bipartisan majority joined him in achieving significant tax reform. We cannot sit idly by while businesses and jobs go to states with better tax climates.”
(This story was updated at 11:42 a.m. with additional information.)