The Iowa
State of
Eighty-Second General Assembly
Des Moines, Iowa 50319
For Immediate Release Contact: Senator
Monday April 21, 2008 (712) 251-4586
Senate
Republicans Unveil SILO Alternative
DES MOINES – Senate Republicans unveiled an alternative plan to the School Infrastructure Local Option sales tax, or SILO, today.
The current bill would increase taxes and remove Iowan’s right to vote this local option tax increase beginning July 1, 2008.
“Contrary to the Senate Democrat’s statement of obstructionism, Senate Republicans have been working hard on a plan that will not burden Iowa’s taxpayers,” said Senate Minority Leader Ron Wieck (R-Sioux City). “We feel this plan is more realistic for Iowa and preserves a citizens’ right to vote on the issue.”
The Senate Republican plan would place a floor of $575 per student with a rolling average taking advantage of the current Secure an Advanced Vision for Education Fund (SAVE Fund). It would also encourage a Constitutional Amendment to protect the school infrastructure and property tax relief money from being “scooped” at any time for other purposes.
The plan is endorsed by the Iowa Association of Business and Industry, Iowans for Tax Relief and the National Federation of Independent Business. “Replacing the current SILO means increasing use taxes by up to $40 million on thousands of Iowa employers. That’s not in the best interest of job growth. This alternative stops the tax increase and supports local schools at the same time – a win for everyone,” said Mike Ralston, ABI President.
Senate Democrats have been quoted in the media as saying the current SILO bill is dead. “This proposal solves all three concerns we have with the present legislation and, more importantly, provides the funding equity so many are seeking without raising taxes or taking away the people’s right to vote. Iowans for Tax Relief can enthusiastically support this effort at true compromise,” state Jeffrey Boeyink, President, Iowans for Tax Relief.
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