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MASON CITY, IA – Brad Barber is a man who means business.
Barber owns seven cabin coffee company stores throughout the Midwest.
And knows all to well how much paying property taxes can hurt the budget come spring.
“In March property taxes are due, and what happens that our slowest part of our income is January, February, and March and so that’s always our cash flow crunch that first quarter,” said Barber.
But now, there’s some help.
Iowa Governor Terry Branstad has signed a new bill into law that will create a tax credit for commercial and industrial property owners.
There will also be a ten percent reduction in taxable value, over the next two years.
And as a small business owner, Barber will get a tax credit as well.
“Anything that we can do to curve our expenses on any side of the operation we can put that toward research and development, hiring more people, paying our employees more and growing,” said Barber.
But as business owners such as Barber are celebrating the bill being passed, city officials are going to have to re-think some things.
Mason City City Administrator Brent Trout says this will impact their budget in years to come.
“It will require us to look at other means of revenue and also to look at where we are going with the growth in the community,” said Trout.
Trout says they will have to be even more aware of every place their money is going, so it is all spent appropriately.
“Require us to be better at what we do and be more efficient and that’s good but it will also provide us less money toward all of the needs we have if you look at each budget year we typically find we have more needs that money to complete,” said Trout.
As for Barber, he’s just excited for that extra relief.
“I really do, it’s a really good thing anything that the government can do to be proactive for the business it’s going to eventually come back to the state,” said Barber.