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Second
Largest Tax Cut In Iowa History Signed
In
response to skyrocketing heating costs this winter, the Governor
signed a $100 million Republican
proposed sales tax cut this past Monday, giving Iowans two months
of tax-free heat this winter, as well as the prospect of reduced
energy costs over time.
The bill
immediately suspends the 5 percent sales tax on natural gas,
propane and fuel oil used for home heating during the months of
February and March
.
The tax cut should be reflected on most heating bills
during March and April, saving Iowa an estimated total of $10.3
million.
In
addition, the legislation will permanently eliminate the sales tax
on residential electricity and heating costs by 2007, phasing it
out a penny at a time, starting in January 2002.
Taxpayers will save an estimated $88.5 million per year
once the tax is eliminated.
LIHEAP
Bill Signed
On
Tuesday, February 6, 2001, the Governor signed SF 65, the $15
million supplemental appropriation for the Low-Income Home Energy
Assistance Program (LIHEAP) with item veto.
In
January, the Governor proposed $20 million to LIHEAP by continuing
to collect the energy efficiency tax consumers are currently
paying on gas bills. House Republicans rejected the continuation of this unfair
tax and found one-time funding sources to meet the needs of
low-income Iowans.
House
Passes $63 Million in State Aid To Schools
The
House of Representatives passed a $63 million in additional state
aid to schools this week for FY 2003. With this action, the
Legislature met the Governor’s recommendation on allowable
growth and set into motion a bipartisan measure that will help
school districts plan and budget into the future.
The $63 million in state aid is the first part of the plan,
and a
$40
million teacher compensation initiative will follow.
Legislative leaders have already committed to the $40
million, and education committee members continue to work on
detailing exactly
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how
the money will be distributed.
This
follows
a long pattern of commitment to education under Republican
legislative leadership.
Ways
& Means Update
Bills Passed
Out of the Ways and Means Committee This Week:
HF 85
A bill for an act providing a refundable newborn tax credit
under the individual income tax.
HF 87
A bill for an act exempting property passing to a
step-grandchild from the state inheritance tax.
HF 88
A bill for an act establishing an income tax deduction for
certain volunteer emergency medical services providers and volunteer
fire fighters.
HF 96
A bill for an act providing an exemption from state
individual income tax for pension and retirement income.
HF 111
A bill for an act relating to the exemption from the
inheritance tax of property passing to a brother or sister of the
decedent.
HF 142
A bill for an act providing an individual income tax credit
for certain
teacher expenses.
HF 146
A bill for an act providing for an income tax credit for
making capital investments in a cooperative association organized to
operate a renewable fuel production facility.
HF 161
A bill for an act relating to the
exemption from
individual income tax of capital gains and including.
HSB 108
An act exempting from the sales and use taxes the sales and
rentals made and services furnished to licensed nonprofit nursing
facilities.
HSB
109
An act providing for a partial deduction under the individual
income tax for the capital gain from the sale or exchange of capital
stock of a corporation which was acquired by an individual on
account of employment with the corporation or while employed by the
corporation.
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Week
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