Session Week1
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$1 Higher Cigarette Tax Advocated

A coalition of 28 anti-tobacco groups called for a dollar-per-pack increase on the current 36 cents per pack.  Republican legislative leaders reject this proposal but claim that it cannot be ruled out at this time.

Members of Iowa ’s Health Initiative hope for the tax increase to discourage people from smoking.  Supporters of this tax claim that the move would raise $211 million during the first year.

Even though the Iowa cigarette tax is lower than the national average, passing the proposed increase may prove to be rather difficult.  Governor Tom Vilsack and Republican legislative leaders have already said that they have no plans to raise taxes.

“What’s the goal?” asked Rep. Jamie Van Fossen of the proposed $1-per-pack increase.  “If we want people to quit smoking, let’s make it illegal.”  Prohibition, however, has not proven to be an effective measure of discouragement.  Van Fossen said if cigarette taxes were increased, people would simply turn to cheaper sources for cigarettes such as the Internet, American Indian reservations, or lower tax states like Missouri .

      The anti-tobacco group isn’t the first to suggest an increase in the cigarette tax.

Republicans Introduce Tax Cuts on Pensions

Thirty Republican members of the Iowa House have introduced a bill to phase out state income tax on pension or retirement pay.  Rep. Jamie Van Fossen is a lead sponsor of the legislation.

Currently, a single filer is allowed to exclude $6,000 of pension or retirement pay,

while joint filers are allowed to exclude $12,000 for state income tax purposes.

House File 24 would allow these amounts to increase to $9,000 and $18,000 for tax years beginning in 2003.  During 2004, this would further increase to $12,000 and $24,000.

In 2005 and after, the bill provides exclusion for state income tax purposes of the total amount of pension or retirement pay for single or joint filers.

Supporters of the legislation have said it will make Iowa more competitive with neighboring states.

Republicans Propose Property Tax Limits

Iowa lawmakers will again attempt to limit the amount of property taxes levied by cities.

House File 25, introduced Wednesday by nine Republican lawmakers, would limit the maximum dollar amounts of property tax levies in fiscal years 2004-5 and 2005-6 to the same amount in fiscal year 2003-4.

Certain exceptions would apply, such as levies on the increase in taxable valuation due to new construction or improvements, levies for discontinued tax increment financing areas, and certain levies for hospitals. DM Reg. 1-16-03

  Ways & Means Update

Bills passed out of Ways & Means this week:
No bills passed committee this week.

Bill Assignments:
HF 2:  A bill for an act relating to the percentage of property valuation in each county and city that is subject to the ad valorem property tax and providing for the Act’s applicability. Assigned to Rep. Carroll-chair, Rep. Kuhn, and Rep. Kramer.

   Week in Review Archives

2003 Session

2002 Session
05-28-02 Special Session II 
05-10-02 Special Edition
04-22-02 Special Session I
04-12-02
04-05-02
03-29-02
03-22-02
03-15-02
03-08-02
03-01-02
02-22-02
02-15-02
02-08-02
02-01-02
01-25-02
01-18-02

2001 Session
05-04-01
04-27-01
04-20-01
04-13-01
04-06-01
03-30-01
03-23-01
03-16-01
03-09-01
03-02-01
02-23-01
02-16-01
02-09-01
02-02-01
01-26-01
01-19-01
01-12-01

2000 Session
04-28-00
04-21-00
04-14-00
04-07-00
03-31-00
03-24-00
03-17-00
03-10-00
03-03-00
02-25-00