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Van
Fossen Nominated Chair of Task Force
Jamie
Van Fossen was recently nominated and appointed to the American
Legislative Exchange Council’s (ALEC) Tax and Fiscal Policy Task
Force as the Chair.
ALEC
was formed more than 50 years ago as a bipartisan
membership association for conservative state lawmakers who share
a common belief in limited government, free markets, federalism,
and individual liberty. As the Chair of the Tax and Fiscal Policy Task Force, Rep.
Van Fossen will deal with model legislation that individual
legislators can take back to their states to facilitate tax and
fiscal policies.
Bill
Will Boost Accountability to Taxpayers
Iowa
lawmakers, tired of being blamed for increasing property taxes
they don't control, proposed five measures on Wednesday that they
said will heighten taxpayer awareness and increase the
accountability of officials. (See Ways & Means Update)
"We're
going to come up with initiatives and reforms that will change
that, and put the blame or reason where it belongs: at the local
level," said Rep. Jamie Van Fossen, a Davenport Republican
who is chairman of the House Ways and Means Committee.
Proposals
offered Wednesday by GOP members of the House include tightening
rules on the use of local-option sales taxes, requiring counties
to tell taxpayers when they end the year with a surplus of more
than 25 percent, and requiring a supermajority vote of the
Legislature on bills that must be paid for with property taxes.
The
lawmakers also proposed preventing counties from shifting
expenditures from the general fund to the rural fund for
unincorporated areas, and changing the rules for repealing or
implementing a local-option sales tax.
The
plan got a mixed review from the Iowa State Association of
Counties, which represents elected officials in Iowa's 99
counties.
John
Easter, the group's director of intergovernmental affairs, said
counties would oppose the proposal preventing them from shifting
expenditures from the general fund to the rural fund. He said the
rural fund is needed to pay for sheriff patrols.
Easter
also feared the proposed changes regarding the sales tax. The
lawmakers would allow 10 percent of voters in an area to petition
to impose, repeal or change the use of a local-option
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sales
tax. While this is an increase from the current 5 percent
requirement, the proposal would change the procedure used in
determining the wording when the matter goes on a ballot, giving
county officials less authority.
Meanwhile,
Easter said he appreciated the sentiment of a plan that would
require a 60 percent vote of the Legislature to shift tax burdens to
property taxes. Local officials long have complained about mandates
from higher levels of government that come with no additional money
to pay for them.
Wednesday's
plan was not intended to be the tax overhaul suggested last month by
Gov. Tom Vilsack, who said that Iowa should end its property-tax
system over two years and replace it with a better one.
"Anything
like that is going to take a period of years to design and
implement," said Rep. Danny Carroll, a Grinnell Republican.
Lawmakers
rejected the notion that they were proposing such legislation
because they don’t trust county officials to deal with property
taxes.
“While
we not only trust but depend upon local elected officials-many of us
having served in that capacity-it is right for the state to
establish statewide policy,” Carroll said.
He
said the goal of Wednesday’s proposals were
“not particularly” to simplify or reduce property taxes.
But Van Fossen said the measures could have the effect of lowering
property taxes in the long run, because the public will be more
aware of money that could go toward property tax relief.
Ways
& Means Update
Bills passed out of Ways & Means this week:
No
bills passed out of committee this week.
Bill
Assignments:
HSB
163-A study bill relating to
county budgets and expenditures, including law enforcement salaries
and expenses as general county services.
HSB 164-A study bill related to
property taxes by requiring a super majority vote by the general
assembly on state appropriations funding certain property tax
credits and exemptions, providing local government assistance, and
on legislation increasing maximum property tax rates set by state
statute.
HSB 165-A study bill requiring the
establishment of property tax replacement funds by counties.
HSB 166-A study bill relating to
county ending fund balances.
HSB
167-A
study bill relating to local option taxes.
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