LAWMAKERS FOCUS ON TAX REFORM

IOWA---A KEY REPUBLICAN SAYS THE PUBLIC'S REACTION TO A LACK OF ACTION IS ONE REASON HE'S OPTIMISTIC LEGISLATORS OF BOTH POLITICAL PARTIES WILL FIND A WAY TO REFORM IOWA'S PROPERTY TAX SYSTEM.

REPRESENTATIVE TOM SANDS, A REPUBLICAN, IS CHAIRMAN OF THE HOUSE COMMITTEE THAT DRAFTS STATE TAX POLICY.

THE REPUBLICAN-LED IOWA HOUSE THIS WEEK PASSED A FAR DIFFERENT PROPERTY TAX REFORM PACKAGE THAT

THE ONE ADVANCED SEVERAL WEEKS AGO BY THE DEMOCRATICALLY-LED IOWA SENATE, BUT SANDS ISN'T RULING OUT THE POSSIBILITY A COMPROMISE CAN BE REACHED.

SENATOR JOE BOLKCOM, A DEMOCRAT FROM IOWA CITY, IS CHAIRMAN OF THE SENATE WAYS AND MEANS COMMITTEE AND HE SAYS THERE IS A RISK OF A BACKLASH IF LEGISLATORS FAIL TO ENACT PROPERTY TAX REFORM.

SENATE DEMOCRATS HAVE EMBRACED A PLAN THAT WOULD PROVIDE A PROPERTY TAX CREDIT TO SMALL BUSINESSES.

REPUBLICANS IN THE HOUSE HAVE PASSED A PLAN THAT WOULD GRADUALLY REDUCE COMMERCIAL PROPERTY TAXES BY 40-PERCENT OVER THE NEXT FEW YEARS.

THE GOP PROPOSAL ALSO PROMISES THE STATE WILL SEND MORE MONEY TO PUBLIC SCHOOLS, REDUCING THE BURDEN ON PROPERTY OWNERS.