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Reynolds raises concerns about sales tax element of Senate GOP’s tax plan

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February 18th, 2022 by Ric Hanson

(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 would impose that one percent sales tax in 50 local jurisdictions where it’s not collected today.

“With inflation at a 40 year high we have to be really careful about raising taxes right now. I’m interested in lowering taxes,” Reynolds says. “Even though, potentially, it would be an overall tax reduction, we just need to take all of that into consideration as we sit down and start to work through that compromise.”

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. House Republicans have passed a bill that solely focuses on reducing personal income taxes.