(Radio 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 G-O-P’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 impose a one percent sales tax in three counties* and four dozen cities that aren’t collecting it today.

Reynolds made her comments during taping of “Iowa Press” which airs tonight (Friday) on Iowa P-B-S. The other sticking point in the G-O-P 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.

*the three counties that do not have a local option sales tax are Clarke, Johnson and Osceola