Renewable
Fuel Initiative Clears
Ways
& Means Panel
On
Wednesday, April 11, the House Ways & Means Committee passed
House File 433 by a substantially partisan 17-7 vote.
HF 433 provides a 2.5 cents per gallon income tax credit on
“designated fuel” (ethanol-blended gasoline) to
individuals and businesses. The
individuals and businesses that are eligible for this credit must
show records of dispending at least 60% of the fuel they vend in
designated fuel. This tax credit will be calculated based upon the number of
gallons of designated fuel in excess of 60% of all gasoline sales
at a particular station, and by a specific owner.
If an entity qualifies for an amount of credit greater than
the income tax owed, the difference could be either refunded or
carried forward into another tax year.
The
objective of this bill is to encourage motor vehicle fuel
retailers to price designated fuels so that at least 60% of their
sales result from ethanol-blended gasoline.
Republicans Boosting retail sales of ethanol-blended
gasoline will encourage the expansion of ethanol production plants
in Iowa that will help utilize our state’s growing corn crop,
and in time, raise income to Iowa farmers.
Redistricting
“Plan I” is Released
Amid
much anticipation, redistricting “Plan I” was released from
the Legislative Service Bureau at 9 a.m. on April 12.
Each legislator received the plan at his or her desk in a
sealed envelope.
Many
members soon found that they are not alone in their new district.
In all, 50 members have at least one other member of the
House in their district. Thirty-one
of these are Republicans; 19 are Democrats.
In terms of party pairings, 28 House Republicans find they
are paired with another House Republican, and 10 Democrats find
themselves paired with another House Democrat.
Across
party lines, seven Republican House members are paired with
another Conversely, five House Democrats find they are paired with
at least one other House Republican.
Because
of the high number of pairings, many districts would remain open
under the plan. Of
the 100 House districts across the state, the plan leaves 26 seats
vacant.
The
General Assembly has not yet decided whether to approve Plan I.
A vote is most likely to occur on April 27.
The commission is holding hearings across the state this
week and will include a recommendation on whether to approve the
plan in its report
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Another
potential problem with the first plan is that districts appear to be
drawn vertically, especially in western Iowa.
The potential concern here is that of a lack of county
dispersion, with many rural counties and few urban, while other
Congressional districts have a mixture of both. As an example, District 5 has more counties than any other
district with 33 (one-third of the state’s counties), while
District 4, the smallest district, has seven.
At first glance, Congressional District 5 appears to be more
like another South Dakota or Nebraska than an Iowa district.
House GOP Passes
the First Phase of the Interstate Growth Initiative
With
the passage of HF 707 this past week, the Interstate Distribution
Center Initiative, House Republicans took one step forward in their
five-step plan in accomplishing their goal of creating an economic
stimulus package-the Iowa Growth Initiative.
HF 707 exempts from income tax a business only using
facilities in the state to store its goods for 90 days or less.
Currently, its questionable as to whether simply storing
goods, with the intention of transporting them to other states,
gives rise to taxation.
Republicans
are asking Democrats to join in the effort to use the money that the
state will receive under a federal tax cut and give back it to
Iowans. Republicans feel that government should not benefit on the
backs of Iowan taxpayers. Our
popular philosophy is that the money should be spent on incentives
to stimulate the economy and create job opportunities, instead of
using the windfall to simply add to our monstrous bureaucracy.
Ways
& Means Update
Bills Passed In The Ways & Means
Committee
This Week:
HF
433
An act providing for taxes relating to the sale of ethanol
blended gasoline.
HSB
110
A study bill excluding certain business property from being
considered abandoned property under the state’s disposition of
unclaimed property law.
SF
450
An act extending veterans benefits, preferences, and tax
exemptions to certain members of reserve forces of the United States
and the Iowa national guard.
SF
519
An
act relating to the assessment for property tax purposes of certain
affordable housing for low-income individuals and families.
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