April 10, 2008
State-wide “SILO” Bill Passes Out of House
HF 2663 is a bill that has been in the discussion phase for several years. The history of this bill is the passage of a bill in 1998 that allowed passage of a school infrastructure local option sales tax (“SILO”) , which would permit people to vote to raise sales tax on themselves one penny and apply the resulting revenue toward school infrastructure expenditures and if that is not necessary, toward property tax relief. In 2003, the legislature passed a bill that put all counties that pass it in the future into a state-wide pool, with each county receiving $575 per student equally. After that we began hearing talk of the need to go to a state-wide tax to replace the local option sales tax now passed by all 99 counties. The main impetus for this is a concern that retail-rich counties such as Polk County may choose to not vote to extend their SILO tax. This is because they stand to lose revenue, when most counties would gain.
After serving in the legislature for eight years, one thing I can say for sure around this place. No money is safe from being scooped unless it is protected by a constitutional amendment. There are numerous examples of this happening. It has happened when Republicans were in control and has happened now with Democrats in control. The Senior Living Trust Fund is currently slated to be spent down to $30,000 – that money is not going toward keeping Seniors in their homes, but toward other uses. Just this week there was an amendment defeated on the House floor which would have transferred $1.73 million from the Underground Storage Tank Fund to the Snowmobile and ATV Fund.
For that reason, Rep. Forristall offered a constitutional amendment which would assure Iowans that the State-wide SILO tax would truly be spent only on school infrastructure expenses. Because this constitutional amendment failed on a 55-41 vote, I could not in good conscience vote for the bill without a constitutional amendment protecting the use of it.
Another reason I believe it is necessary to pass a constitutional amendment is it gives the public one more opportunity to vote on this issue. By “changing the rules in the middle of the game” the legislature took the control of this revenue away from local communities, after we had told them they could vote in a local option tax that would expire after ten years. The constitutional amendment would provide one more opportunity for people to vote on this before changes are made.
The second concern I have with it is it creates an additional one cent tax on businesses who make out-of-state purchases for items delivered to or used in Iowa. This language creates a $32 million tax on Iowa businesses. To say this bill merely does the same thing as has currently been approved by all ninety-nine counties is not true. I wish it were. As it is, it passed unprotected by the constitution, and without my vote.
Two Bills Make Hunting for Therapy Easier
The House has passed two bills this year both aimed at allowing nonresidents to come into the state and hunt for therapeutic purposes. Both the bills passed with overwhelming support in the House, and impact small groups of people who can truly benefit from Iowa’s natural resources.
HF 2440 allows certain members of the military to come into the state for hunting without having to complete a hunters education course. In the past, efforts have been made to bring groups of veterans and military personnel to Iowa to hunt as part of their rehabilitation. Those involved with the program were running into obstacles and clarification was required to make the process easy to navigate.
SF 2230 also allows individuals to hunt without all the typical requirements such as hunter’s safety courses. It applies to people under 21 who are severely disabled or have a terminal illness. Like the veterans rehabilitation, there have been individuals who have wanted to experience hunting in Iowa as they cope with diseases.
SF 2330 passed the House on April 1st and will be sent to the Governor to be signed. HF 2440 for the veterans is on the calendar in the Senate. The passage of both these bills reflects the legislature’s commitment to making sure that all individuals can enjoy the natural resources in Iowa.
Visitors to the Capitol
Crystal Gingerich and her children, Andrew & Danielle from Kinross, another home-school mother, Cheryl Hentrich from North English and student Eleya Raim from Oxford were here on behalf of the Home School Assistance Program.
Question of the Week…
There have been several attempts to pass constitutional amendments this session. One was the amendment to protect school infrastructure revenue. Another one is SJR 2002, which says that 3/8 of 1% of future state tax will go toward natural resources. Do you feel it is wise to amend the constitution for these types of purposes?
I would appreciate your input. My phone number at the Capitol is 515-281-3221, or e-mail me at betty.deboef@legis.state.ia.us. I would welcome visitors at the Capitol, too!