Four years from now, telephone companies and cable companies will pay about 30 million dollars less in Iowa property taxes as a result of legislation Governor Kim Reynolds has approved. Buildings and cell towers will remain subject to local property tax assessments, but property taxes on “transmission equipment” like wires, cables and fiber will be phased out. Republican Representative Chip Baltimore of Boone says that brings property taxation on telecommunications companies in line with how other commercial property is taxed.
Democrats like Senator Chaz Allen of Newton complained there’s nothing in the bill that forces companies doing business in Iowa, but headquartered out of state, to use the tax savings to expand broadband service in Iowa.
Another Republican legislator said telecommunications companies should be able to use the tax savings to do things like pay investors or hire more workers if that’s a higher priority to the business.
