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House of Representatives _Passes
Sales Tax Holiday
Des Moines
Register 3/8 - Forget about those summer sales at the mall.
State lawmakers want to give Iowans a back-to-school tax-free
weekend, where shoppers would have a three-day reprieve from the
sales tax burden on clothing.
Mark your
calendars – but use pencil, because the idea still faces
approval by the Senate and governor for the first week in
August.
‘It’s an
opportunity to help shoppers save money when clothing bills are
generally high," said Rep. Carmine Boal. R-Ankeny, a mother
of three. Boal estimated she could save nearly $60 in taxes on
her family’s school shopping if the state’s 5 percent tax is
waived.
The House passed
the legislation Tuesday on an 84-14 vote, amid vocal objections
from Democrats who accused Republicans of proposing the tax-free
weekend as a political ploy.
The legislation
now goes to the Senate, where passage is expected. Gov. Tom
Vilsack, a Democrat, is reserving judgment until he sees the
complete tax-cutting package by Republicans, a spokesman said.
The tax-free deal
would come with a few catches. Individual clothing items
exceeding $100 would not qualify. Everyday footwear is included,
but shoes brought specifically for athletics are not. Jewelry,
handbags, luggage, umbrellas, wallets and watches would be
excluded, too.
The idea of a
tax-free shopping weekend was born three years ago in New York,
as lawmakers there tried to stay competitive with bordering
states that don’t tax clothing.
Florida and Texas
passed similar laws. And in Pennsylvania, legislatures this year
are considering whether to cut taxes on back-to-school
computers.
"States are
looking for all kinds of ways to cut taxes," said Mandy
Rafool of the National Conference of State Legislatures in
Denver. "This one seems to be one that is popular because a
lot of people feel sales taxes are regressive."
Regressiveness, however, wasn’t
on the minds of most young shoppers, including girls who were
streaming into a downtown Des Moines mall on Tuesday during a
break in the state basketball tournament. But the fact that
neighboring
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Minnesota offers
tax-free clothes shopping all year long did matter to them.
"Right now it’s
worth a three-hour drive to Minnesota for clothes shopping,"
said Thea Satom, a 15-year-old Decorah girl. "But I’d stay
here if I could get the same deal."
The bill is
designed to target those shoppers thinking about a trip to
Minnesota, said Rep. Jamie Van Fossen, a Davenport Republican who
leads the tax-writhing Ways & Means Committee in the House.
If the legislation
is approved, Van Fossen said shoppers from bordering states may
start streaming to Iowa for a change.
Bills passed out
of Ways & Means this week:
HF 2032
a bill providing an
individual and corporate tax credit for the acquisition or
modification of assistive technology or modification of the
workplace in order to assist persons with a disability in the
workplace.
HF 2250
a bill relating to economic
development programs and related tax credits.
HF 2484
a bill relating to the duties of county treasurers and providing
for the collection of fees, and providing an effective date.
HF 2338
a bill relating to
distributions made to and income from missing property of certain
persecuted victims of World War II and their heirs.
HSB 652
a bill expanding the number
of counties that may designate unincorporated areas containing
private lakes as rural improvement zones.
You can track these
bills on the Internet at: www.legis.state.ia.us
Van Fossen Rolls
Out New Web Page
www.jamievanfossen.com
Representative Jamie Van
Fossen introduced his new web page this week. The site will allow
constituents the opportunity to learn more about Jamie, and the
issues that are currently being discussed in the legislature. The
site also includes his Constituent Survey, Jamie’s weekly
newsletter, the opportunity to volunteer for his campaign and a
place for you comments. You can also see Jamie’s appearance on Iowa’s
Agenda on the web site.
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