|
Iowa
Supreme Court Puts Taxpayers on the Hook For $250 Million
The
Iowa Supreme Court on a 5-2 vote Tuesday overturned a unanimous
decision by the United States Supreme Court and as a result
interjected the judicial branch as playing a role in the formation
of tax policy. This
decision stemmed from a suit brought forth by Iowa’s three
racetracks claiming that a separate taxing structure from
riverboats was unconstitutional.
A
little history on the suit: Riverboats incur added expenses that
racetracks do not. The
boats face a cruising requirement and must cruise 100 days a year.
Not only is this expensive to operate, it requires a Coast
Guard certified crew. As
such, the Legislature determined that because riverboats were
burdened by added costs, they would pay a lower percentage in
taxes. The racetracks
agreed to pay higher taxes than riverboats, and as a result were
allowed to have slot machines on their premises.
When
the tracks were no longer willing to live under the agreement,
they sued the Legislature, won in the Iowa Supreme Court and lost
in the U.S. Supreme Court. This
week, the Iowa Supreme Court reversed that decision and called the
different tax structures unconstitutional.
This
decision could have very bad implications.
The Court has now asserted itself as a tax policy-creating
body. This ruling
puts into serious jeopardy the balance of power between the
executive, the legislative and the judicial branches in Iowa.
It opens a Pandora’s box for a number of new lawsuits to
come before the state. If,
as the court states, under the equal protection clause of the Iowa
Constitution the boats and tracks cannot be taxed differently,
then what about commercial vs. residential property taxes?
What about Ag land property taxes?
Corporate vs. personal income taxes?
The list goes on and there will no doubt be challenges to
our tax structure.
It
also hangs a $250 million tax bill around the necks of taxpayers,
a bill to be paid to three racetracks.
As a result, there will be
|
no
new money for environmental programs such as the Environment First
Fund, soil conservation and water quality.
It also takes funds from the infrastructure fund that helps
build and restore facilities at our three regents universities.
House Republicans are
committed to retrieving back this money for the environment
and schools.
Ore.
Voters Nix Proposed $800M Tax Hike
By
BRAD CAIN
The Associated Press
2/4/2004 PORTLAND, Ore. (AP) — Oregon voters resoundingly rejected
a proposed $800 million tax hike, turning aside warnings about
looming state budget cuts for schools and other key services.
With 95 percent of
precincts reporting early Wednesday, the measure was failing 59
percent to 41 percent. Rejection of the tax package automatically
triggers $544 million in spending cuts on May 1.
Political analyst Jim
Moore said the vote showed that Oregonians weren't swayed by
warnings that schools and other services would suffer big cuts
without the tax increase.
"People are
suspicious of government, and they simply weren't buying the doom
and gloom thing," Moore said.
The Legislature
narrowly passed the latest tax package last August in a bid to
balance the state budget without inflicting even more pain on
schools, welfare programs and law enforcement.
Anti-tax groups, led by
Citizens for a Sound Economy, had no difficulty collecting enough
petition signatures to refer the $800 million tax measure to the
voters.
Ways
& Means Update
Bills
introduced in committee this week:
No bills were introduced in committee this week.
Bills passed out of committee
this week:
No bills passed committee this week.
|
Week
in Review Archives