Iowa’s Republican governor and legislators from both parties will gather later today to witness the signing of legislation that cuts taxes for property owners and income taxpayers.

The bill signing ceremony will be staged in Hiawatha, the home of Republican House Speaker Kraig Paulsen, and Governor Terry Branstad said it’s a way of giving Paulsen “credit” for his work on the tax package.

“He’s, I think, done a great job as speaker of the house. He’s been a really good ally for us to work with and without his leadership and his tenacity, I don’t think we would have gotten that accomplished,” Branstad said earlier this week. “Of course, we had to have the cooperation of Senator Gronstal and the other side, too, and we appreciate that.”

The governor has invited Senate Democratic Leader Mike Gronstal to the event and Gronstal’s been invited to make a brief speech for the occasion, too.

“We are appreciative of Senator Gronstal and his leadership on the senate side,” Branstad said.

The bill includes a new tax credit for commercial property owners as well as a 10 percent roll-back of commercial property tax rates over the next two years. Property taxes on apartments and other “multi-residential” properties will eventually be cut in half. The legislation creates a new income tax credit that returns some of the state budget surplus to taxpayers. It’ll be worth about $60 next year. The already-existing earned income tax credit will be increased, a financial boost for low-income taxpayers.

Branstad has the authority to item veto portions of the bill, but he intends to approve “the entire bill.”

“This was a delicately worked out compromise that meets priorities of both the Republicans and the Democrats, both the House and the Senate,” Branstad said during his weekly news conference. “Most importantly, it’s going to reduce the tax burden for taxpayers in the state of Iowa — property tax and income tax. I think it’s a win-win for everybody. I’m honored and proud to sign it.”

Branstad told reporters on Monday that Paulsen asked for the bill-signing ceremony to be staged in Hiawatha. Paulsen is considering a run for congress in 2014. Branstad is likely to seek reelection next year, too, and taking this event on the road “is what it is,” according to the governor.

“You know, there’s a lot of people in eastern Iowa, so it doesn’t hurt to do some things in that part of the state as well,” Branstad said.

Gronstal — the top Democrat in the Iowa Senate — is considering a run for governor in 2014, so two candidates for governor may be sharing the limelight later today. The event will be staged early this afternoon at Hawkeye Ready-Mix, a company that provides concrete for homeowners, businesses and road construction crews.

On Wednesday Governor Terry Branstad will hold a ceremony in Hiawatha to sign into law the package of property tax breaks that cleared the 2013 Iowa legislature, but Branstad’s already thinking about tax proposals for next year when the legislature reconvenes in January.

“I think it’s very likely we’ll be looking at reducing the income tax further,” Branstad says. “When I became governor, the income tax rate in Iowa was 13 percent. We now have it down to 8.98 percent, plus we have full federal deductability…Remember, the top federal tax is 38.5 percent, so the effective rate in Iowa is only about 5.5 percent. We’d like to see that go lower.”

House Republicans have supported something akin to a flat tax for Iowa income tax payers, while Senate Democrats have favored ending the deduction that allows Iowans to deduct their federal tax bill from their income before they calculate their state income taxes. Critics say it makes Iowa’s income taxes look out of whack with other states, as only five other states have such a deduction. Branstad isn’t ready to say what approach he’ll favor for reducing income taxes.

“There’s different alternatives that we have looked at,” Branstad says. “…We’re going to have to study this further, but I think there’s a lot of interest and we see activity. I mean those states that really want to grow and attract business and jobs are looking at reducing the tax burden.”

Branstad made his comments this weekend during an appearance on Iowa Public Television.

Wisconsin’s legislature this year is considering a $651 million reduction in that state’s income taxes. In April Nebraska lawmakers cut state income taxes by $97 million. Kansas lawmakers last week approved a plan that keeps in place a higher state sales tax in Kansas, but the plan reduces income taxes. Missouri’s governor recently vetoed a $900 million cut in Missouri income taxes, saying the reduction would jeopardize funding for education and other public services and cause the State of Missouri to start writing “bad checks” just like the federal government does.

The neighboring state of South Dakota does not collect income taxes.