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VAN FOSSEN TO TAKE UP 'BORDER TOWN' EXEMPTION
March 18, 2005
Tax Analysts reports that Jamie Van Fossen, chair of the Iowa House Ways and Means Committee, plans to take up the bill to allow Iowa's border cities to opt out of some or all of the state income tax. The bill, HF 721, would require the towns to make up the revenues with other tax increases.
This would mean every little border town might have a different income tax, sales tax, and property tax system. The state would have to figure out where in the state people live to determine whether the returns are even prepared correctly. This is a terrible idea. It also may be unconstitutional, though heaven only knows what that means in Iowa anymore.
In contrast, there appear to be no plans to take up SF 158, which actually deals with the structural problems of Iowa's byzantine tax system.
Fortunately, HF 721 appears to be veto bait if it is ever passed.
UPDATE: This bill has State 29 thinking outside the box.
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