Today's News
>
News
>
Today's News
Lawmakers have mixed feelings about sales tax
By KEN BLACK, TIMES-REPUBLICAN
POSTED: April 11, 2008
Fact Box
Local effectsThe following is a breakdown of what the statewide sales tax for school infrastructure means locally. It still must be passed by the Senate and signed by the governor:
• Replaces all sales taxes used for school infrastructure in the county
• Takes effect Jan. 1, 2009
• Sunsets in 2029
• Rural districts should see an increase in funding
• Can only be used for school infrastructure
• Voters have no option on renewal or implementation
• Both Horbach and Smith voted no
The bill would not create any additional tax burden for residents in the state, however, as all 99 counties have passed a local option sales tax for school infrastructure. This proposed new statewide tax would take the place of all those local taxes.
Rep. Mark Smith, D-Marshalltown, decided not to support the measure, saying he felt it violated the right of voters to make those decisions.
“It was a tough call for me, but through the forums I’ve been having and participating in I heard a lot of concerns about people losing the ability to vote on it,” Smith said. “So I decided to vote against it going statewide.”
Also not favoring the bill was Rep. Lance Horbach, R-Tama, who felt it also took something away from the local voters.
At the same time, Horbach understands the schools he represents in his district will likely see a benefit from the measure. Currently, while all counties have a local option sales tax for schools, the districts with a larger retail presence get the most benefit.
Often, that means rural residents, who go to retail hubs in cities, help finance some other school districts rather than their own.
“I’m not opposed to where the money goes,” Horbach said. “I recognize schools in my district would get increased funding per student.”
However, Horbach did have concerns that the Legislature may find another revenue source very tempting and steal from it.
“We could scoop it in tough times just like we do every other designated fund,” he said.
If passed by the Senate and signed by the governor, the bill would go into effect Jan. 1, 2009 and would effectively replace all local option sales taxes for schools. It would last until 2029, though Republicans say it likely would never be allowed to sunset. Other local option sales taxes that have been implemented to benefit cities and counties would remain valid.
———
Contact Ken Black at 641-753-6611 or kblack@timesrepublican.com
Share:
Facebook
MySpace
Digg
Stumble
Mixx
Fark
del.icio.us
LiveSpacesMember Comments
View Comments: | 1-1 | Post a comment
|
LilBeaver
|
|
|---|---|
|
04-11-08 9:32 PM
|
For once a politician ( Mr. Horbach ) spoke honestly, when he said the politicians would find it too tempting to use this revenue for anything they desired instead of what it was dedicated for, anytime they ran short of money for some off the wall pet project. Secondly a 20 year sunset is not too long. Nothing longer than 10 years and then it must pass a referendem by the voters by a sixty per cent majority at a regular election. The way it is now it will never go away regardless of whether or not it is needed for the stated purpose in the future. This bill will just create another slush fund for sleazy politicians to raid for their own use or pet projects.
|