Gronstal, Kibbie compare GOP, Dem commercial property tax cuts (VIDEO)

Senate Leader Gronstal and Senate President Jack Kibbie compare Republican and Democratic property tax efforts at an April 14 Statehouse news conference. Transcript below.

Gronstal:
I also think we had a very historic act last night. We passed our property tax relief effort focused on commercial properties and small businesses, and main street businesses in the state of Iowa. This is an issue that has vexed the legislature for 33 years since ‘78 when the current property tax mechanism was put in place.

This is real property tax relief, growing significantly over the next four years to a total of $200 million. It is not a tax shift. Most efforts at property tax reform in the state of Iowa have effectively been tax shifts. Somebody else ended up paying more because some particular group paid less.

So we passed, in my view, a very, very significant tax reform last night that will make a real difference to Iowa small businesses across the state. It got broad bipartisan support. I think it will help spur growth on Main Streets in small towns and large across the state of Iowa. I think it is a great step forward.

For me in Council Bluffs it is particularly important as we compete with the large city across the river from us in terms of small businesses, encouraging them to open in Council Bluffs. So we think it is a great effort and literally 33 years in the making. We have finally been able to accomplish something on that front. We’ll be happy to take your questions.

Reporter:
Have there already been conversations on how to bridge your property tax plan with the Governor’s and the House plan?

Gronstal:
We think our plan far exceeds the other two plans in terms of value to the state economy. The governor wants to focus on large businesses and smokestack chasing by going after very large industrial enterprises. We think we’re going to grow ourselves out of this economic recession with small businesses and Main Street businesses in the state of Iowa.

We think the Governor’s approach is flawed. We like the House approach but that’s $500 million dollars we don’t have. We don’t think it’s responsible. And we also don’t think its impact on the real job creators, small businesses in this state, will be as significant as our plan.

Reporter:
What about complaints that this doesn’t go far enough to help businesses?

Gronstal:
Poppycock. Absolute poppycock. It really is. What was the Republican plan a few years ago? It was cutting $60 million out of local governments. The Democratic plan is $200 million invested in lowering commercial property taxes, targeted at small businesses and Main Streets in the state of Iowa. Their arguments were poppycock. That’s why they voted for it (the Democratic plan).

Reporter:
So they say wimpy, you say poppycock?

Gronstal:
I say hefty, hefty, hefty. They’re the wimpy, wimpy, wimpy ones. Their plan, their plan, two-thirds of a decade ago, their plan was to cut $60 million out of local governments. That’s how they balance their budget. We choose to fully reimburse local governments for what they lost.

Kibbie:
You know what will probably make the press is the wimpy and poppycock talk, but the true issue is in county seats in this state is to have a shoe store. You know that is not a big franchise. That is not a box store. Or a men’s clothing store, a women’s clothing store.

I don’t care you can go to any of the five county seat in my district. In Main Streets there are no privately owned stores. This is the step in the right direction for jobs in these small communities.

Gronstal:
Let me put it in context, you go to that same Main Street, and you go to an insurance agency, or shoe store or something like that and figure out and you guys to look. What’s the value of that property in a small town? Maybe $100,000?

This plan in over four years get to where the first $340,000 in value will have its taxable rate cut in half, down to what residential property is. That’s pretty dramatic having property taxes cut in half.

Now maybe that’s wimpy from the Republicans/ perspective, but we think it makes a real difference for small businesses. I think they ought to quit complaining and try to help get this bill passed so we can grow our economy again with small businesses.