The Iowa Legislature

State of Iowa

Eighty-Second General Assembly

STATEHOUSE

Des Moines, Iowa 50319

For Immediate Release Contact: Sen. Jeff Angelo

Thursday, March 15, 2007 (515) 281-3371

Sen. Angelo Introduces Taxpayer Rebate Legislation

Bill Puts Excess Revenue Back Into the Hands of Taxpayers

DES MOINES – State Sen. Jeff Angelo (R-Creston) today filed a bill aimed at returning excess revenue collected by the state back to the taxpayers.

“The best way to dispose of excess revenue is to not collect so much tax in the first place,” said Angelo, who is ranking member of the Senate Appropriations Committee. “But if tax cuts are not possible, then the next best thing to do with the extra money is to give it back to the taxpayers.”

Angelo’s legislation creates a taxpayer rebate fund. Any excess revenue from the ending budget balance would be directed to the fund at the end of each year. When the fund reaches $50 million or more, a tax rebate is triggered. The tax rebate must be at least $20 per taxpayer before the rebate checks are issued.

“The rebate is triggered in times of strong revenue growth,” said Angelo. “The fund is filled after the state has determined its budget and met its priorities.”

Angelo said that without a taxpayer rebate fund, excess revenue would simply go into the state’s General Fund as the ending balance, which is carried forward for additional spending either in the current year or the next fiscal year.

“The taxpayer rebate fund is a simple, cost-effective way to return excess revenue back into the hands of the people,” said Angelo.

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