Taxes

factory
Christopher Dilts [Barack Obama / flickr]

An Iowa research group says manufacturing jobs continue to decline in the state, even after a new sales tax break was given to manufacturers. 

According to the Iowa Policy Project, a tax break that makes more manufacturing supplies exempt from state sales taxes has not led to more jobs in the manufacturing sector.

The statement comes after the Legislative Services Agency announced that tax break could cost the state about $100 million. It was originally expected to cost about $21 million. 

WIKICOMMONS / Holger.Ellgaard

The Iowa Attorney General’s Office says that for once, a caller claiming to be working on behalf of the Internal Revenue Service may not be a scammer, but instead a legitimate private debt contractor. 

Last month the IRS Private Debt Collection Program went into effect. Congress enacted the law in 2015, authorizing the federal agency to use private collections firms to call people who owe overdue taxes.

The debts targeted in this program are older, past-due balances the IRS is no longer actively seeking to collect.

Iowans will have to wait a bit longer to get their state tax refunds this year, as fraud prevention is creating delays.

The Earned Income Tax Credit is a prime target for criminals, so the federal government is taking more time to process tax returns. Victoria Daniels of the Iowa Department of Revenue says this affects state tax refunds as well.

Joyce Russell/IPR

A Republican-sponsored committee at the statehouse Monday got an earful from Iowa businesses and individuals who might be affected if the GOP succeeds in scaling back hundreds of millions of dollars in tax breaks.   

Both parties agree tax credits are one of the fasting-growing pieces of the state budget.  

The cost of one list of credits approaches half a billion  dollars, ranging from incentives for businesses to attract new jobs, to tax breaks for families who adopt kids, to credits for contributions to private school tuition.

Joyce Russell/IPR

Democrats and Republicans squared off in the Iowa House today over public financing of campaigns, as a GOP bill was approved to eliminate a limited form of the practice in Iowa. 

On a party line vote, the House Ways and Means Committee passed a bill to get rid of the checkoff on Iowa income tax forms that allows a contribution to the Republican or Democratic party or to a campaign fund that is then distributed to the major parties.

Joyce Russell/IPR

Amid pomp and circumstance and Republican celebration, the 87th  General Assembly of the Iowa Legislature convened in Des Moines today for the 2017 legislative session.   The new Republican majority promises significant conservative change on a number of fronts.      Minority Democrats say get ready for a fight. 

The house and Senate gaveled in nearly simultaneously at 10 a.m for a day dominated by traditional opening speeches expressing hopes of working together to get things done.     

John Pemble / IPR

State lawmakers opened the 2017 legislative session this morning as Republicans took control of both the House and Senate for the first time in 20 years. As lawmakers were sworn in and official business began, River to River Host Ben Kieffer and Statehouse Correspondent Joyce Russell sat down with legislative leaders from both parties to discuss priorities.

John Pemble/IPR

With Republicans now in control of the Iowa House and Senate and the governor’s office, the so-called trifecta, enthusiasm for cutting taxes is running high.   GOP leaders in both chambers have been telling groups around the state of their hopes and dreams for tax cuts.   But so far Governor Branstad is not on board.     

Manuel Alarcon/flickr

Iowans shopping at Amazon.com have a surprise in store when they go online today.  

Starting January 1, the retail giant will be collecting sales tax for the first time on purchases in Iowa, as they do in 30 other states.   

Department of Management Director Dave Roederer says it will be good for state coffers and for other retailers.

“It is leveling the playing field for the main street merchants,” Roederer said.  “Main Street merchants are required to collect sales tax.  The online was not.  So that levels that out.”

Joyce Russell/IPR

State lawmakers will have the tough job of cutting this year’s state budget when they convene in January, after new projections Monday from the Iowa Revenue Estimating Conference. 

The REC predicts that tax receipts will grow by 4.2 percent in the current fiscal year that ends June 30.

That’s $96 million less than earlier estimates.    

Department of Management Director Dave Roederer says to accommodate the shortfall, the governor will be recommending how to cut this year’s budget by roughly $100 million.

Joyce Russell/IPR

A top Republican in the Iowa legislature is calling for a comprehensive review of state tax policy, including cutting taxes, now that his party is in full control at the statehouse.   

House GOP leader Chris Hagenow (R-Windsor Heights)  answered questions at a meeting of the Iowa Taxpayers Association today.  

“I think we need a completely fresh look at tax policy in this state top to bottom and we're going to go through that,”  Hagenow said.  “Fundamentally, it’s 'are we going to find a way to reduce the tax burden  of Iowa taxpayers?'”  

Marco Antonio Coloma/flickr

A tax break Iowans enjoy on digitally-delivered goods is under consideration at the statehouse.

Officials with the Iowa Department of Revenue today briefed a panel of state lawmakers who are charged with reviewing the tax credits that cost the state treasury hundreds of millions of dollars a year.    

DOR economist Amy Harris said Iowans currently do not pay sales tax when they download e-books, movies, or software from the internet.   

Hudson Institute / Flickr

As a boy he lived in a refugee camp in his native Afghanistan. As a teenager he fled from the Taliban to England. Now, in his early thirties, Hamdullah Mohib serves as an ambassador to the U.S. from Afghanistan.

401kcalculator.org/flickr

Shoppers in parts of Warren and Taylor counties will be paying an extra penny of sales tax starting today.

In March, voters in several communities in Warren County approved the new one-cent tax known as the local option sales tax or LOST.

The vote covers portions of the cities of Des Moines and West Des Moines that reach into Warren County.   

Victoria Daniels at the Iowa Department of Revenue says the tax isn't in effect elsewhere in those larger communities.

FLICKR / 401(K) 2012

If you still haven’t completed your 2015 state income taxes, today is the filing deadline. If you're late filing, be prepared to pay a penalty of an extra ten-percent on top of whatever you owe.

"I will say that typically there is a very slight grace period," says Victoria Daniels of the Iowa Department of Revenue, "but I encourage people strongly to get their returns in and file them electronically and make their payments no later than 11:59 pm."

Flickr / 401(K) 2012

Though Monday is the deadline to file federal income tax returns, Iowans still have another two weeks before they must hand over their state income taxes. 

The Iowa Department of Revenue advises Iowans to file electronically, and depending on your income and veteran status there is software people can use for free.

"If you are going to get a refund, you will get it much quicker," says IDR spokeswoman Victoria Daniels. "A lot of the software programs, they actually do the calculations for you, and so you are less likely to have mistakes."

Intel Free Press/flickr

The popularity of online shopping may be behind slower growth in Iowa sales tax collections in recent months.  

That’s according to one member of the Revenue Estimating Conference which reports lackluster growth in the Iowa economy.

The REC met Wednesday and predicted only a slight increase in tax revenues since their last assessment in December.  

Department of Management Director Dave Roederer says they are most concerned about sales tax collections.

John Pemble/IPR

A compromise tax policy bill passed the Iowa House and Senate Tuesday and will now go to Governor Branstad for his consideration.    

The bill matches up the Iowa tax code with federal law at a cost of nearly $100 million to the state treasury.  

Backers say farmers and small businesses have enjoyed a tax break on major purchases in the past.  

They bought machinery expecting that this year, so there was an outcry when Democrats and the Governor wanted to change course.   

Photo by Grant Gerlock/Harvest Public Media

The value of farmland is riding high, and so are the taxes farmers pay on that property. But as those numbers remain steady, the actual income farmers make from the land has tumbled, leaving some farmers to push for a discount on their tax bill.

Larry Tegeler raises corn and soybeans along with some cattle in northeast Nebraska. He started farming about 30 years ago, and the first land he ever bought was a field near the small town of Meadow Grove.

On a windy fall afternoon, Tegeler looked over the 160 acres of rolling, sandy soil he purchased in 1987.

Joyce Russell/IPR

A years-long battle between Iowa’s community banks and its credit unions flared up at the capitol today, where a legislative committee is conducting a routine review of tax credits.  

The financial institutions are taxed differently, and banks argue it’s an unlevel playing field.  

Kevin VanderLee with the Iowa Bankers Association describes a new community bank that was started in Johnston.

“There were individuals who made their investment to start a bank,” VanderLee says.

Joyce Russell/IPR

There was emotional testimony today before a legislative committee over a new tax break for Iowa manufacturers which Democrats say the legislature should have signed off on.   

The Branstad administration proposes a sales tax exemption on more of the supplies manufacturers purchase, from drill bits to lubricants and coolants, and from saw blades to air filters and hydraulic fluids. 

Jim Wall/flickr

It would be easier for farmers to receive a sales tax exemption on off-road vehicles under a bill still eligible for passage by the 2015 legislature. 

Farmers get a sales tax exemption for machinery and equipment used for farming, including ATV’s.    But the law says the vehicle must be used directly for production agriculture.  

Victoria Daniels at the Department of Revenue says by law you can’t use the vehicle  “in preparation for or subsequent to” agricultural production.   She says that’s hard to enforce.

Ted Murphy/flickr

A new tax break for Iowa’s casino industry has so far not made it through the Iowa legislature. 

But backers say if it doesn’t pass this year, they will bring the issue back in 2016.  

Wes Ehrecke with the Iowa Gaming Association says casinos shouldn’t have to pay state sales tax on the full amount if a gambler is paying part of his bill with a coupon.

“You have a tax on unreal money, it’s fake money, it’s a coupon,” Ehrecke says. “And  when you go to Kohl’s or Hy-Vee or somewhere and you get a $20, coupon the business doesn’t pay tax on that.” 

401kcalculator.org/flickr

A Republican-sponsored tax credit will be so small this year that many taxpayers may not even notice it.     

Brooke Raymond

Republican U.S. Sen. Chuck Grassley says the Senate will soon vote on the long-delayed tax extenders bill. The legislation groups more than 50 tax breaks, including wind energy incentives.

Because Iowa is a leader in wind energy production, Grassley has been vocal on the need to extend the tax credits. But Grassley says the bill doesn’t go far enough.

Joyce Russell/IPR

At a forum today, Democratic and Republican lawmakers differed sharply on whether the legislature can honor its commitments to local governments.

Amy Mayer/IPR file photo

Several dozen tax provisions remain unsettled as Congress returns home for the Thanksgiving holiday.

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Oct 7, 2014
IPR's Pat Blank

Iowa farmers and gardeners harvesting a bumper crop of produce can now get a tax credit when they make a donation to their local food bank.

Iowa’s major party candidates for governor  traded barbs over Democrat Jack Hatch’s career as a property developer in Des Moines.   

Durrie Bouscaren / Iowa Public Radio

Google, Facebook and Microsoft have all made large investments to build large data center facilities in the state of Iowa. All three have also received multi-million dollar tax exemptions, rebates, and grants to entice them to come. In Part One of Iowa Public Radio’s data center series, we talked about why our state appeals to these Silicon Valley titans. Today, reporter Durrie Bouscaren visits Council Bluffs to ask, what’s in it for our state? 

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