Des Moines, Iowa — Governor Kim Reynolds says she and her fellow Republicans in the House and Senate are about two-thirds of the way toward reaching a final agreement on a tax plan. The governor is raising concerns, though, about the Senate GOP’s idea to convert more than 800 local option sales taxes into one statewide tax.
It’s a legal maneuver so lawmakers could use other state tax money to fill the empty Natural Resources and Outdoor Recreation Fund, but Reynolds says she’s concerned because the move would impose a one percent sales tax in three counties, Osceola, Johnson and Clarke counties, as well as four dozen cities that aren’t collecting it today.
Reynolds made her comments during taping of “Iowa Press” which airs Friday on Iowa PBS. The other sticking point in the GOP tax negotiations is whether to cut the corporate income tax. Reynolds has proposed a significant cut. Senate Republicans propose a cut, along with reductions in some tax credits corporations typically claim. Reynolds says she’s not ready to agree to reducing the research activities tax credit, for example.
Reynolds says that study can start this summer. House Republicans have passed a bill that solely focuses on reducing personal income taxes and would not cut the corporate income tax rate.
