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Property tax break for commercial child care centers

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March 25th, 2024 by Ric Hanson

(Radio Iowa) – The Iowa House has approved the governor’s idea of reducing property taxes for some child care businesses. Commercial child care centers are currently taxed as commercial property and the governor has proposed they be taxed at a far lower rate – just like residential property. Representative Brook Boden, a Republican from Indianola, spoke briefly before the bill passed the House on a 94 to one vote.

“This bill will provide an opportunity for more much needed child care in our communities,” Boden said. A Legislative Services Agency analysis indicates the bill could cut property taxes by a total of 19 million dollars for the 15-hundred commercial child care centers in the state. Republican Senator Dan Dawson of Council Bluffs is chairman of the Senate’s tax policy committee. He says Iowa cities already are adjusting budgets based on significan property tax changes lawmakers approved last year, but Senate Republicans are contemplating the governor’s proposed property tax cut for child care centers.

“It’s kind of a unique idea,” Dawson says .”But we’ve got to make sure as we’re hearing a lot of local government input right now that anything is thoughtful on that front of property taxes because we said last year it would be multiple bills over multiple years and we need to give (cities) some predictability there, too.”

Dawson made his comments this weekend on “Iowa Press” on Iowa P-B-S.