The measure goes beyond a proposal by Gov. Terry Branstad to cut
commercial property taxes by 40 percent over five years.
It also gradually increases the share of local school budgets the state
finances over seven years.
When the measure is fully in place it will cost the state roughly $800 million a year.
The House approved its version on a 58-40 vote Tuesday night,
returning it to the Senate which has passed a much smaller version.
The Senate plan would spend $50 million to ease business property
taxes and would focus on small business.