Culver to increases the state sales and use tax

[4dsc]

I can only hope this bill doesn't pass but its not getting much PRESS from any Iowa news organization as it passed in the House..

House File 2663 repeals the school infrastructure local option sales tax (SILO), increases theState sales and use tax from 5.0% to 6.0%, and requires the increase to be designated forschool infrastructure purposes or property tax relief. The Bill eliminates the statewide distribution per student of $575 and replaces it with a statewide rolling average. The Bill also requires revenues generated from the increase in the State sales and use tax to be distributed to school districts based on a distribution formula used to distribute SILO funds. The Bill requires the Department of Revenue to use the FY 2008 SILO amounts by county as a base forfuture SILO distribution estimates and increase the county-by-county estimates by the Revenue Estimating Conference (REC) sales/use tax growth projections.

http://64.233.167.104/search?q=cache:NHF1kRN5LL4J:www3.legis.state.ia.us/fiscalnotes/data/82_5058HVv0_FN.pdf+House+File+2663+IOwa&hl=en&ct=clnk&cd=2&gl=us

[DU9598]

1. Well, technically he "could" ...

but that means this bill would first have to be passed by the state Senate - which it most likely will not - and then he would have to decide that he will sign it. It is a bit premature to be accusing Gov. Culver of being a tax hiker when the link does not even suggest that he is supportive of the bill.

[pstans]

2. The bill does not raise taxes, we already have this tax

The bill does take away local control. However, it evens the playing field between rural and suburban school districts because the statewide tax money would be distributed evenly to each district. The money from the current local option sales tax goes to the district where the money is spent. So every time a person from Washington or Tipton or Marengo shops at Coralridge mall that money goes to the Iowa City School district. Now some of that money will go back to the rural areas. This bill helps the vast majority of school districts. Here in Marshalltown, we'd receive millions more under this plan.

[IA_Seth]

3. Which is why i hope it passes..

Being from Linn County, I realize that this may not be the best thing for MY community, but as an Iowan I know that rural districts are struggling, and by taking away the local "pots" of money, and creating a state "pot" of money to distribute more fairly, it will help these struggling districts.

IMO, it's a good thing.

[4dsc]

4. Taxing the poor more is not a good thing

Because the poor pay more for the daily necessities, this will just an added burden to their lives.. No democrat should ever support regressive taxation..

We need to look at the school situation in the rural area's because it would appear there are way too many districts to support the populations..

[IA_Seth]

5. How is this an 'extra' burden?

It takes a SILO tax and makes it a state tax, it doesn't add any additional sales taxation. Yes, perhaps by removing local control we open the doors for abuses - but it isn't any 'added burden' on anyone right now.

[4dsc]

6. I do not support regressive taxation

This is nothing more than a another regressive taxation scheme that I guess is being pushed by the larger school districts, especially in Des Moines.. It add 1% to our sales tax so I don't know how you could say it doesn't add additional taxes??

[cyberswede]

7. it REPLACES the SILO

It takes an existing 1 cent SILO tax and replaces it with a 1 cent sales tax. It doesn't ADD an additional 1 cent.

[IA_Seth]

8. Ok, let's do the math...

I'll lay it out, you tell me where you are getting your extra burden:

Existing 1% SILO

Remove 1% SILO

Add 1% State-wide Sales Tax
------------------------------------------

1%

1=1-1+1=1

--------------------------------------------

I have one piece of gum.

I give you one piece of gum.

You give me one piece of gum.

I still have ONE piece of gum.

---------------------------------------------

Let me know if it needs made any clearer?

[pstans]

9. The local option sales tax is regressive

The statewide tax attempts to make it more fair by spreading out the money to all district instead of having wealthy suburban district keep the money.

[4dsc]

10. I wonder many communities don't have SILO??

If a community doesn't have SILO, then this 1% is an ADDED TAX!!! I guess you believe every community has SILO to make your little formula work but they don't..

[IA_Seth]

11. Uh, actually I believe they do.

If not, it is likely only one county.. as I recall, Linn and Johnson did not have a SILO tax.. Linn now does. I thought Johnson does now as well.

It's not my 'little formula', it's simple math.

ON EDIT: From your link, which I'm sure you've read:

Background
All 99 counties have approved the school infrastructure local option sales tax. As of December 2007, a total of 24 counties have authorized extensions of SILO

[4dsc]

13. Well hush my puppies...

Boy did this spread like wildfire I see.. All counties except Linn and Johnson..

Iowans for Tax Relief strongly OPPOSES HF 2663. http://www.taxrelief.org/publications/silo

Looks like we would be taxing businesses also under this HF 2663..

[cyberswede]

12. all 99 counties have SILO, don't they?

I thought I read that somewhere...

http://www.iowa.gov/tax/business/LOSTmap.pdf

I think that municipalities can pass their own local option sales tax, so some towns have slightly higher tax rate than others (you can see this on the link above, too). That has nothing to do with SILO, though.

Communities that don't have SILO still pay the SILO tax in their county - they just don't get any of the revenue. We just voted on this in February. If our school district voted against the SILO, we would still pay, but the $ would go to the other communities in the county. And then we'd have to raise property taxes to pay for the school infrastructure needs. SILO passed by over 80% in our district.

[pstans]

14. Every county has the SILO tax, which is why it is eligible to become a statewide tax

[4dsc]

15. Support waning in the Senate

http://www.desmoinesregister.com/apps/pbcs.dll/article?AID=/20080418/NEWS10/804180376/1007/NEWS05

A tax plan that advocates say would lead to more modern school facilities statewide could die this session, a key Democratic leader said Thursday.

Even though there are some Democratic senators who are unwilling to vote for revising the local-option sales tax, Senate Majority Leader Mike Gronstal on Thursday blamed Republicans for the plan's possible death.

While 17 Republicans in the Iowa House voted for the plan last week, only three Senate Republicans are committed to a "yes" vote, Gronstal said.


"So we're pretty disappointed in that effort," he said. "Without bipartisan support, we are not going to be able to get that done this session."