The Iowa Legislature last year took steps to reduce the property tax rates for commercial properties in the state.
That meant less property tax collections for local governments like the City of Decorah. State legislators promised to "back filll" the missing money with state funds.
That's the case for 2014-2015--although city officials are still worried. City Administrator Chad Bird says the change in commercial property tax regulations will mean a loss of $75,000 in property tax collections, which will be offset by higher state aid.
Using figures provided by the Iowa League of Municipalities, Bird says the City of Decorah could lose $672,000 in property tax collections over the next ten years (including changes in residential property tax rules). The Iowa State Legislature is promising to make good that money--for now.