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The
FY 05 property tax credits are funded at $159.7 million, elderly and
disabled fully funded per the governor’s request.
The
FY 06 property tax credits are not eliminated; state funding will be
decided by the ’05 Legislature.
BUSINESS
ACTIVITIES TAX LEGISLATION
On
Wednesday, March 10th Michael DiConti, Business
Roundtable Director, and Susan Haffield, Partner at
PricewaterhouseCoopers, LLP spoke to the House Ways and Means
Committee on the importance of House Study Bill 716, the Business
Activity Tax (BAT) Simplification Act.
HSB
716 would codify a physical presence standard, with clear guidelines
for businesses and states to easily apply.
This bill states that no entity shall be subject to a
business activity tax, unless they have a physical presence in the
state of more than 21 days. The
business activity tax is a tax of net income, gross receipts or
profits tax, business license tax, franchise tax, business and
occupation tax, single business tax, capital stock tax, or other tax
on the right to do business in Iowa.
Mr.
DiConti stated that this piece of legislation offers several
advantages to Iowa. First,
it fosters a positive business climate in Iowa, and secondly, it
would likely help Iowa businesses attract out-of-state customers.
Additionally, would also continue Iowa’s leadership in tax
simplification.
Ms.
Haffield noted that HSB 716 is designed to provide a jurisdictional
standard and does not determine how income is taxed once a business
has established a nexus in Iowa.
HSB 716 will likely be considered in the House Ways and Means
Committee the week of March 24th.
Ways
& Means Update
Bills
introduced introduced in
committee
this week:
HSB
718
-A
study bill relating to property taxation by establishing a maximum
property tax dollars limitation for counties and cities.
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