The Governor’s bill is different from the House Republican bill, HSB 500. Both bills will be passed out of the House Ways & Means Committee. Obviously, at some point in the near future, the Governor and the House Republicans will have to come to an agreement on which bill to propose to the Senate, or some version of the two bills.
Governor Branstad’s bill calls for a 40% reduction for commercial property taxpayers over an 8 year period. That’s 5% a year, compared to the 2.85% in HSB 500. HSB 519 guarantees the first three years of the plan. There are some scenarios where the cuts could be stopped if certain economic growth goals aren’t met. The Governor’s advisors don’t expect the stoppage to happen, since the growth goals are reasonable and fair.