As reported by: Journal Des Moines Bureau
Before the ink was even dry, Republican Senate leaders backed away Thursday from a proposal raising gambling tax rates and imposing one-time fees totaling $160 million on the state's 13 racetracks and riverboat casinos.

But leaders said they haven't totally abandoned the plan rolled out on Wednesday, which imposes a one-time fee on racetracks and riverboats and hikes tax rates from 20 percent to 23 and 25 percent.

That plan was highly criticized by lawmakers from communities with riverboats, as well as industry officials.

Senate Majority Leader Stewart Iverson, R-Dows, said Senate Republicans will remain open to other plans and should come to a consensus Monday.

"We're discussing a lot of things. We keep getting new ideas from various places and I think that makes sense," Iverson said.

Leaders predict the full Senate would debate a gambling bill by Tuesday, but they don't know what that bill will look like.

The state was forced to set new gambling tax rates after losing a lawsuit filed by the state's horse and dog tracks. The racetracks claimed they were unfairly taxed at a higher rate than riverboat casinos, and are now owed around $160 million in taxes and interest they overpaid.

Senate leaders and gambling industry officials have been negotiating for weeks without success to come up with a settlement, which has delayed adjournment of the session by at least a week.

The way Senate Republican leaders have handled the gambling issue brought criticism Thursday from Gov. Tom Vilsack and Democratic lawmakers, who say they are letting their feelings about losing the lawsuit cloud their judgment on the issue.

Senate Minority Leader Mike Gronstal, D-Council Bluffs, called the latest plan offered by Republicans a "somewhat harebrained scheme."

"I guess it's a plan a day, run it up the flagpole and see if it works," Gronstal said.

Vilsack said there's not much of a role he can play in the process while the plan continues to change.

"Until the leadership gains a consensus on what a plan is, it's very difficult to advocate or help," Vilsack said.

Lawmakers can't adjourn before fixing the gaming tax problem because gaming revenues make up a large part of the state's infrastructure budget. That fund pays for new construction, capital improvements and environmental programs.

Vilsack said some Senate members are "miffed" about the Iowa Supreme Court ruling but shouldn't try to penalize the tracks, which he said have been reasonably willing to forgive the back taxes and interest they are owed by the state.

"We shouldn't be sort of crying over spilled milk when the court doesn't go our way," Vilsack said.

Senate President Jeff Lamberti, R-Ankeny, said he is more worried about making sure Iowans aren't stuck paying for the money owed to the tracks. And he said neither Gronstal nor Vilsack have offered plans to settle the issue.

"Until they do, I don't think they have any room to talk," Lamberti said.