Session Week 3
Fax: 319-355-9954

Vilsack Proposals Will Cause Property Tax Hikes

After using property tax relief as a key component in his campaign for Governor, Vilsack is not proposing any property tax relief in his FY 2002 budget.

Property Tax Increases in the Governor’s Budget Include:

·         Increase in the community college property tax levy.  He funds them at $5 million and allows them to levy $4.3 million to make up the remainder of their $9.3 million request.

·         Decreases the per diem the state pays to county sheriffs for holding state prisoners from $65 (average) to $25 per day.  That will cause an $890,000 property tax increase. 

·         Raids the Municipal Fire and Police Retirement Fund by $2.9 million.  If the value of the fund decreases (due to volatility in the stock and bond markets), the cities would have to make up the funding by raising property taxes.

·         In addition, he has proposed extending the $20 million per year tax on utility customers.  This tax is scheduled to sunset this fiscal year, which would save consumers $44 million.  The Governor also wants to keep the surcharge on oil, gas and propane users, which amounts to a $20 million tax increase.

·         It’s a tight budget year, and Governor Vilsack knows it.  That is causing him to seek out creative ways to tap into our pocketbooks.  In addition to the property tax hikes, he’s proposing to extend one of the taxes we pay on our utility bills.

*Limiting property taxes is a top goal of Republicans in the Iowa House.

Heating Tax Cut and Low Income Heating Assistance

(propane, home heating oil, etc.) will not pay taxes on their heating bills for the February and March billing periods. 

Republicans are proposing $15 million in direct heating assistance to low-income Iowans.  The plan reallocates money within the heating assistance program and shifts money from other programs, directing it towards heating assistance.

 Ways & Means Update

Bills Assigned in the Ways & Means Committee This Week:

HF 48- An act relating to the exemption from the sales and use taxes of heat for use in residential-type dwellings and for fuel used to provide heat for residential-type dwellings and including and applicability provision.

HF 80- An act relating to the notice of change in assessment due to an equalization order for purposes of property taxation.

HSB 11- An act relating to activities of a foreign corporation which do not constitute doing business in or deriving income from sources within the state for state income tax purposes and including effective date provisions.

HSB 35- An act relating to the allocation to Iowa of income earned by an S corporation, for purposes of the state individual income tax, and including a retroactive applicability date provision.

HSB 39- An act relating to the definition of factory-built structures, the relocation of factory-built structures, the certification of installers of manufactured homes, and providing a fee, an appropriation, and a civil penalty.

HSB 41- An act relating to the taxation of garages and other appurtenances located on mobile home sites.

Bills Passed Out of the Ways and Means Committee This Week:

   Week in Review Archives

2001

01-19-01
01-12-01

2000

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