Session Week 1
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2001 Session Opens

Iowa Republicans were ready at the starting gate Monday with several tax-cut bills on the first day of the 2001 legislative session, putting them at immediate odds with Gov. Tom Vilsack, who has other ideas for using the money.

Iowa lawmakers spent their first day under the golden dome being sworn in, making speeches and getting seat assignments.  House Majority Leader Christopher Rants, a Republican from Sioux City, said the quick introduction of tax-cut bills was not an attempt to be partisan but o fulfill GOP campaign promises.

Copyright: Des Moines Register

Heating Tax Cut Among First Bills In Iowa House

Scott County residents are bracing for more big hearing bills this month.  The high heating bills are due to higher fuel costs mixed with a significant drop in temperatures.  December’s heating costs were 44% greater than they were in 1999.  the first bill filed in the Iowa House of Representatives was a bill to eliminate the sales tax on fuel or electricity for residential customers for a one-month period. 

House File 1, the bill removing the sales and use tax on heating fuels and electricity, has been referred to the House Ways and Means Committee.  The Ways and Means Committee oversees all tax changes to Iowa law. Recently re-elected State Representative Jamie Van Fossen, R-Davenport, chairs the Ways and Means Committee.  Van Fossen intends to have the committee act quickly on this issue and have the bill before the Governor within the next few weeks.

Social Security Tax Cut a Top Priority at the State House

Among the first bills to be introduced in the 2001 Session of the Legislature is the bill to eliminate the state income tax on social security benefits of Iowans.  Legislative Republicans have made passage of the bill one of their top priorities this year.

Chairman Van Fossen appointed Bryan Sievers  of Scott County to serve on the subcommittee.  “It is important to get to work as soon as possible on eliminating the state income tax on social security benefits,” said Van Fossen.  “Iowans on social security have already paid income taxes on these wages and to tax them again when most are already on fixed incomes seems unfair.”

This is the first week of the Legislature, and the social security tax cut bill, also known as House File 2, is one of the handfuls of bills being assigned during the first week of the Session.  Chairman Van Fossen adds, “I think Republicans have sent the message by having a group of bills ready to be worked on the first week of session that we have an agenda and are ready to work.  Removing the tax on social security benefits for our older Iowans was one of our top priorities during the campaign and will remain so during this legislative session.”

House File 2 eliminates the state income tax on social security benefits over a three-year period at a cost of about $16 million per year.

 Ways & Means Update

Bills Passed in the Ways & Means Committee this week:

*No bills passed out of committee this week.

Bills Assigned in the Ways & means Committee This Week:

HF 1-An act relating to the exemption during a certain period from the sales and use taxes of the gross receipts from the sale, furnishing, or service of metered gas and of fuel used for heating of residential-type dwellings and including an effective date.

HF 2-An act phasing out the tax on social security benefits under the state individual income tax and including a retroactive applicability date provision.

HF 16-An at relating to the apportionment of local option sales tax for school infrastructure election costs, and providing an effective date.

You can track these bills on the Internet at: www.legis.state.ia.us 

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04-28-00
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