ABI comments on revenue rule

December 3, 2015

Past issues of the ABI legislative news highlighted details of the proposed rule from the Department of Revenue on the definition of machinery, equipment and replacement parts used in the manufacturing process that are tax exempt.

On Tuesday, ABI President Mike Ralston testified before the Department of Revenue in support of the rule. ABI board member Andy Hansen, of Deere & Co., and representatives from member companies Cargill, Clow Valve, RSM McGladrey and SSAB also provided testimony in support of the rule.

Several other ABI members and partners statewide provided written comments in support of the rule. Thank you to all members who have provided information and comments to ABI and the department on this necessary clarification to Iowa’s tax code.

In addition to proponents of the rule, representatives from school districts, cities and other members of the public spoke in opposition to the rule. Opponents disagreed with the method of the change through rulemaking. School district representatives also contend this will result in a loss in revenue to schools and cause an increase in local property taxes.

The rule will go before the Administrative Rules Review Committee, a joint committee of the Iowa House and Senate, on Tuesday, Dec. 8. If you want to support the rule, please make sure to contact the Department of Revenue before Tuesday to register your support.