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SENATE PASSES MAJOR PROPERTY & CIGARETTE TAX INCREASE
The Iowa Senate passed
Senate File (SF) 416 Thursday, a bill which could potentially
raise property taxes by as much as $40 million. The bill ties
together the property tax increase with a cigarette tax increase
of $63.4 million, for a total tax increase of $103.4 million.
The
bill would increase the regular program foundation base per
pupil from 87.5 percent to 89.78 percent of the regular program
state cost per pupil.
The legislation would
create a supplemental property tax levy for community colleges;
the funds must be deposited in the community college’s Local
Workforce and Economic Development Fund.
The property tax
increase levied statewide under the new levy cannot exceed $37.5
million.
However, after FY 2010,
an allowable growth factor is applied to the total dollars
generated statewide until the total dollars generated statewide
reaches $40 million.
SF 416 increases the tax
on cigarettes from $0.36 cents to $0.72 cents on a pack of 20.
This increases general
fund revenues by $63.4 million. The cigarette tax increase
takes effect one month after the enactment of the bill.
The Senate refused to
consider an amendment by Sen. Chuck Larson that would have
provided over $350 million in property tax relief.
HOUSE IN RECESS WHILE MAJOR LEGISLATION IS SITTIN’ IN THE SENATE
The House was in recess
this week while the Senate went on a tax and spend free for all!
By the time my newsletter goes to press this afternoon, the
Senate will have spent at least $90 million above the House GOP
budget we finalized last week! We went overboard with a 7% $350
million increase in spending, why is this not enough for
the Senate!
Last year, the people
of Iowa elected a closely divided House and an evenly split
Senate between Republicans and Democrats. The people had spoken,
and the Iowa House of Representatives had a big job to do.
The House did its
work.
During the 110-day legislative
session, the Iowa House worked on a number of bills to
accomplish meaningful change and positive results for Iowa.
Among them were an additional $100 million for K-12 education, a
fully-funded Medicaid program and a number of regulatory changes
to transform
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Iowa’s
business climate to one that allows our hard-working entrepreneurs
to thrive and prosper.
We did our work.
We provided tax reform that
slows assessment growth for employers seeking to increase their
workforce. We provided a tax credit for families to offset the cost
of childcare. We did our work.
The telecom deregulation
bill we passed early in the session has already directly led to the
creation of 500 jobs, and more are on the way. It offers greater
broadband access to Iowa residences and businesses.
We took the lead in
battling meth abuse and toughened Iowa’s sex offender laws. We
bolstered our public safety program while passing numerous
consumer-protection measures. Our efforts for our teachers have
boosted their salaries from 38th in the country to 29th.
We did our work.
We passed a bill that will
significantly decrease Iowa’s burgeoning deer population and offer
more opportunities for hunters. We passed a tax credit for Iowa’s
beginning farmers.
We were able to pass a
balanced budget with a healthy and sensible growth in overall state
spending. We began repaying and returned money borrowed from the
Senior Living Trust Fund. All this was accomplished without raising
taxes.
We did our work.
Last Friday, the Iowa House
adjourned on the session’s 110th day with all of these
achievements in tow. We accomplished what the people of Iowa elected
us to do, and our work will benefit the people of this state for
years to come.
Many of these bills are now
sitting in the Senate and awaiting passage. Most of the budget has
not even been considered in committee, while some policy bills have
not even been assigned to a committee!
The Iowa House is prepared
to return once the Senate Democrats take action on the budget bills
we have sent them and thereby enact meaningful change for Iowa. With
Iowa’s challenges, it is too important for the Senate not to act. I
expect the Senate Democrats to put these issues to a vote, and the
people of Iowa should too.
Ways
& Means Update
Bills introduced in committee this week:
The House was in recess this week.
Bills passed out of
committee this week:
The House was in recess this week.
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