Gronstal: Senate Will Reject GOP Property Tax Plan

The Iowa state capitol building in Des Moines on Friday, Dec. 22, 2006.

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By Jay Knoll

DES MOINES, Iowa (AP) - Senate Majority Leader Michael Gronstal says a property tax package crafted by Republican legislators would increase the burden on homeowners and won't be supported in the Senate.

A plan supported by House Republicans is similar to one backed by Gov. Terry Branstad. It would cut lower commercial property taxes by 40 percent over eight years and provide $240 million to offset cuts to local government budgets.

Speaking at a news conference Thursday, Gronstal described that plan as "the biggest tax shift in the history of the state." He claims homeowners would pay $310 million more than currently.

Republicans say other aspects of the plan would protect homeowners from increased property taxes.

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