February 7, 2008

SILO-Use Tax Bill Considered

ABI Environment Committees Continue to Step Up-DNR Takes Note

“Green Proposals” Place Heavy Burden on Businesses/Taxpayers

Register Now for ABI Day on the Hill

Say No to Backdoor Tax Increases and No to Bottle Tax Expansions!

Other Bills of Interest

Why I invest in IIPAC

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President
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March:

Tuesday, March 11^th

 “ABI Day on the Hill”

9 - 4:30:  ABI Policy Committee Meetings & Capitol Visits

June:

June 10^th- 12^th

2008 ABI Convention

Coralville, Iowa:  Marriott Hotel & Conference Center

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SILO-Use Tax Bill Considered

Tuesday morning a House Education Subcommittee held the first public meeting on HF 2066 – the School Infrastructure Local Option tax (SILO) Swap legislation.  As proposed by the School Boards Association, the bill will eliminate the current SILO system in favor of a statewide one-cent sales tax.  The current system allows counties to vote every ten years on a local option sales tax to support school infrastructure projects.  The new proposal would swap the current system for a permanent tax across the state, allowing schools access to the revenue for local projects and capturing “use” taxes not currently collected via the current SILO.

The addition of the use tax component to SILO is a major obstacle for ABI to support this proposal.  Use tax is imposed after a sale takes place and only on goods and services that have not yet been subjected to sales tax. In most cases, these are purchases made from an out-of-state supplier not collecting Iowa tax that are for use in Iowa .  The use tax is paid primarily by businesses and if included in the statewide sales tax would amount to $40-60 million annually as estimated by the nonpartisan Legislative Services Agency (LSA).

It’s also estimated by LSA that another $52 million in use tax would be collected on vehicle sales if the statewide penny is adopted.  Those dollars, however, would not be constitutionally protected like other road funds dedicated to road building and maintenance. 

Proponents for SILO Swap claim that the additional revenues collected would be directed to property tax relief.  History proves, however, that shifting tax burdens from one pocketbook to another never nets out in favor of the taxpayer.

ABI Environment Committees Continue to Step Up-DNR Takes Note

ABI’s water subcommittee has been extremely active in the last few weeks.  Last Friday members attended a meeting with DNR and other stakeholders on the water quantity/water use fee structure.  On Tuesday, the Department presented to the Agriculture and Natural Resources Appropriations Subcommittee on the new water proposals for Iowa .  The Department expressed their request for $150,000 in new monies to help get the flood plain program funded independently from the storm water program.  This is important to note as ABI members helped formulate a position paper on the need for increased efficiency before increased fees.  The Department explained the importance to the fee payers to keep storm water dollars in the storm water program. 

Director Rich Leopold spoke to the Senate Natural Resources Committee highlighting certain issues the Department is trying to actively pursue this legislative session, including REAP funding, water quality plan for the state and expanding the bottle bill to reduce waste into landfills.

Due to the increased environmental activities, both on the committee and Department level, ABI has established an online environmental forum.  The forum also has a calendar of events and supporting documents link.  To access ABI’s environmental forum click here.

“Green Proposals” Place Heavy Burden on Businesses/Taxpayers

Several pieces of legislation were proposed this week regarding energy efficiency that set new requirements for energy reduction and green building standards. 

SF 2077 – Bill provides for acquisition of equity interests in renewable energy production facilities by state banks.  Bill specifies procedures and requirements applicable to a state bank structuring the financing of renewable energy production facilities.  Modifies provisions applicable to qualification for the wind energy production tax credit and the renewable energy tax credit. 

SF 2083 – Legislation establishes a 1.5 percent per capita goal of energy savings per year.  Sets requirements for rate-regulated utilities regarding energy efficiency efforts, projected energy demand and a reduction of 1.5 percent projected use per year.  The bill also requires the board to administer a pilot project regarding third party administration of energy efficiency plans and programs by utilities.

SF 2084 – Provides for tax credit on personal and corporate income tax for construction/rehabilitation of buildings that meet energy efficiency standards. The legislation places requirements on public buildings to meet Leadership in Energy and Environmental Design (LEED) silver certification for public buildings.

SSB 3125 – Requires contractor review of energy efficiency alternatives prior to issuing building permits, licenses or certificates.  The legislation requires owners and builders to verify energy efficiency design alternatives have been considered.  Also provides that if an owner is not associated with a project at the time of application, the contractor has energy efficiency design features incorporated into the building specifications.

Register Now for ABI Day on the Hill

On Tuesday, March 11, ABI will host ABI Day on the Hill where ABI members will have the unique opportunity to meet with key legislative leaders under Iowa ’s Golden Dome.  Four of ABI’s public policy committees will meet that day at the Iowa State Historical Building to discuss progress on the committee agendas and then ride a free shuttle up the hill to the Capitol.  Participants will enjoy free parking at the Historical Building parking ramp and a free running shuttle with all the freedom to come and go.

Details for the day, including committee meeting times can be found by clicking here.

Say No to Backdoor Tax Increases and No to Bottle Tax Expansions!

Governor Culver has called on the Legislature to expand Iowa ’s bottle bill.  Iowans would pay 10¢ on every beverage container they purchase, but would get back only 8¢. The 2¢ remaining is a new tax on consumers – the state would receive half and the other half would double the subsidy paid to redemption centers.

If this bill is approved, it would affect more than just pop and beer bottles.  It would expand to water, juice, tea, sports drinks and more!  For more information go to: www.stopthebottletax.com!

Other Bills of Interest

HF 2065 – Requires an employer to place an employee returning from National Guard or reserve duty to “a position of like seniority, status and pay.”  This changes current state law, which simply required return to “similar position”.  The legislation passed the House with a vote of 97-0 and the Senate 49-0. 

HF 2142 — Introduced by Representative Eric Palmer (D-Oskaloosa) would relieve the Attorney General from enforcing Iowa ’s Consumer Fraud Act and instead create a private cause of action for litigants with private attorneys.  Contains broad definitions, allows for attorneys fees to exceed underlying claim as well as punitive damages.

SSB 3140 – Proposed legislation that would expand health care coverage for children as well as a number of other proposals recommended by the interim Commission on Affordable Health Care, Chaired by Senator Jack Hatch (D-Des Moines) and Representative Ro Foege (D-Mt. Vernon).  This 82-page proposal will receive much scrutiny by the Senate Human Resources Committee.

Why I invest in IIPAC

“I contribute to IIPAC because supporting the election of pro-business legislators helps promote Iowa businesses, large and small.  IIPAC supports ABI's pro-business,

growth-oriented agenda.”

William B. Trent, Jr., Sr. V.P., Administration & General Counsel

Muscatine Foods Corporation

Silver IIPAC Contributor

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