Rod Boshart, CR Gazette –
Gov. Terry Branstad said Monday he is “very hopeful” the 2012 legislative session will produce significant property tax reform and relief.
The GOP governor told his weekly news conference he has had “some positive and fruitful” discussions with Democrats who are in charge of the Iowa Senate that have made him optimistic an accord can be reached that will provide permanent relief for all property classes – but especially commercial and industrial property owners. At the same time, he noted that no details have been worked out on a compromise that remains a major obstacle to adjourning the split-control Legislature for this year.
Currently, commercial and industrial property is taxed at 100 percent of its market value. Branstad would like to see that lowered incrementally over eight years to 60 percent, and said he would like to cap yearly increases at 2 percent for residential and agricultural properties up to a future maximum of 60 percent as well.
“I’m very hopeful that this year, after 30 years, we will finally see significant action on limiting all classes of property and reforming the way we tax commercial and industrial property,” Branstad said. As a token of his good faith, the governor has indicated he will accept a Senate-passed plan to increase the earned income tax credit for working families – a proposal he vetoed twice last year.
Sen. Joe Bolkcom, D-Iowa City, chairman of the Senate Ways and Means Committee, said he welcomed Branstad’s acceptance of the earned income tax credit increase but said that was “catch-up” for other tax cuts the Legislature sent him that favored businesses and other taxpayers which were signed into law. “We’ve passed more tax cuts than he has,” Bolkcom said. He’s got a little catch-up to do.”
Democrats have offered a targeted property tax cut aimed at small and Main Street businesses that would guard against shifting the tax burden to residential classes and would put up $250 million in state “backfill” money to protect local governments against a loss of revenue due to commercial property tax relief. “People like our plan,” Bolkcom said.
Branstad and House Republicans do not favor delivering relief via a state tax credit as Democrats propose, noting the state has a poor track record of fully funding such commitments. A major disagreement in the fiscal 2013 state budget is House Republicans’ insistence on providing an extra $55 million from the state general fund to fully funding current property tax credits – such as the homestead tax credit – to local governments for the next fiscal year that begins July 1.
On another topic Monday, Branstad said he was “excited” by a $231,000 court award to state Sen. Rick Bertrand, R-Sioux City, for damages he received after a jury found after finding that his opponent and the Iowa Democratic Party committed libel and slander in a negative television ad in their 2010 legislative race.
Bertrand filed a lawsuit in Woodbury County District Court in October 2010 against his Democratic opponent at the time, Rick Mullin, and the Iowa Democratic Party, claiming he was defamed by a campaign ad the party financed and Mullin approved that claimed Bertrand “put profits ahead of children’s’ health.” Jurors ordered Mullin to pay $31,000 and the Democratic Party to pay $200,000.
“I am excited about that, to tell you the truth, because it’s the first time I’ve ever heard of a candidate or an office-holder actually winning a defamation lawsuit. That’s pretty unusual. The defamation must have been so outlandish for the court to make the decision that it did,” Branstad said when asked for his reaction to the verdict. “I think it’s encouraging and maybe it will make people think twice about making outlandish statements that amount to libel or slander.”
The governor noted that he was the victim in his 2010 GOP primary race of what he considered to be “a slanderous campaign” that was conducted by a group called Iowans for a Responsible Government, which he said turned out to be “a front group” for Democratic Governors Association attempting to attack his conservative credentials.
“That is about the most outlandish thing I ever heard of, but I never thought about filing a slander suit,” Branstad said, adding with a chuckle, “There may be grounds and I don’t think the statute of limitations has run out.”