The attempts to pass property tax reform and get the Iowa legislature out of town stalled last night when the Iowa Senate failed to pass a reform bill. The Senate rejected the Republican-supported House bill, but then two Democrats torpedoed their own party’s bill. From the Quad City Times:
Senate Republicans offered the House plan in amendment form during an animated floor debate late Tuesday, but the proposal was turned back by Senate Democrats 21-26. However, Sens. Rob Hogg, D-Cedar Rapids, and Jack Hatch, D-Des Moines, joined the GOP minority in taking down the majority party’s $350 million relief plan by a 24-23 margin, leaving the future of the issue in partisan limbo as the Legislature moved to end the 2012 session as early as today.
“They sunk their own bill,” said Sen. Randy Feenstra, R-Hull, who led the effort to win Senate support of the House-passed bill and criticized Democrats for walking away from an approach that won 71-26 bipartisan support among representatives.
Failure to pass the property tax reform would also doom efforts to increase the Iowa earned income credit. It’s possible that the legislative leaders and the Governor could still throw together a compromise bill, but time is running short, with adjournment possible as soon as today.
Other tax bills also look like they will die before adjournment include:
- The misbegotten “anchor manufacturing” or “supply chain incentive” bill. (HF 2471)
- The extension of the Iowa Capital Gain break to certain sales to ESOPs (HF 2284)
- A special break for executive stock bonuses (HF 2311)
- A 100% state tax credit for investments in the Iowa “Innovation Fund.” (HSB 648)
Additional coverange of yesterday’s legislative session:
Jason Clayworth (Des Moines Register), Iowa Senate rejects property tax bill; doubts arise that any reform will pass this session
O. Kay Henderson, Democrats’ property tax plan defeated in Iowa Senate