I am a third generation Entrepreneur, Rotarian, Waterfed proponent and manufacturer, resident of Cedar Rapids, Iowa USA... I am a husband, father, brother, son, neighbor, Realtor® and Property Manager who resides in the Indian Creek Hills subdivision of our community. We are part of the Cedar Rapids community: Live, Work, Learn and Play. We are interested in networking, friendship, business, service and sport. Welcome to my blog and personal journal ...

Saturday, January 24, 2009

January 24, 2009 - New Taxes in a down economy?

The Gazette headline under "Iowa Legislature" on Friday, January 23, 2009 was titled "Key lawmakers see debate on gas tax hike," which has not been raised in the State of Iowa since 1989.

Okay, since we haven't raised the gas tax for twenty years, a gas tax raise may have some justification, since we truly do have highways, roads and bridges that need improvements and repairs. Of course, we are in a very severe recession, so is timing right now?

But, 20 percent?

Senior citizens on social security's COLA went up over 5 percent. Is it fair to consider in any way a 20 percent increase at this time?

If the national average for federal and state excise taxes was more than 8 cents more than the State of Iowa, would members of the Iowa Legislature work to justify raising the gas tax even more?

What has the Iowa Legislature been doing for twenty years? I would suggest that this situation is an example of what is wrong in Des Moines, when it comes to public policy making.

Where is the common sense?

*** ***
We have heard local discussions lately for a one cent local option sales tax for the City of Cedar Rapids. When I had the pleasure of serving on the Home Rule Charter Commission in 2004-05, we looked at similar cities it determining an alternative Charter for the City of Cedar Rapids. As you may remember, the majority of voters in the City of Cedar Rapids, who went to the polls, voted to scrap the Commission form of government for the Council-Manager form of government in June of 2005.

Our current form of government went into effective on January 2, 2006. It's ironic we are now are impacted by a major Flood, when you consider how flood recovery might be under the Commission form of government.

Many cities similar to Cedar Rapids do have a local option sales tax. When the discussion of the sale of 20 acres of Twin Pines Golf Course was taking place by the City, the lack of a sales tax was clearly apparent, when City development officials were involved in a presentation put on by a retail developer.

The Cedar Rapids Chamber of Commerce is discussing at 10 a.m. today the topic of supporting and constructing an one percent local option sales tax for the City of Cedar Rapids. I had the pleasure to talk to Alan Witt yesterday evening on the subject.

We hope Alan and others are successful in discussing the importance of property tax relief in Cedar Rapids.

We need real property tax relief in Cedar Rapids and throughout the State of Iowa. We have an over-reliance on property tax in the State of Iowa, including the City of Cedar Rapids. It has been reported that the citizens of Cedar Rapids pay already $100 more per capita than the national average in property taxes. The City's newsletter highlighted this in the past.

Like the Gas Tax for roads, bridges and highways, we do need to protect our infrastructure locally. Would you support an one cent local option sales tax for the City of Cedar Rapids for infrastructure and property tax relief?
One real challenge in any discussion of a tax increase of any kind... is the current state of our economy.

We have plenty of infrastructure needs in Cedar Rapids ahead and now after the Flood of 2008. Complaints about our local roads pre-flood are known. The thought of a flood tax is short-term and doesn't address all infrastructure emergencies that exist or could develop over the next five years.

On the flip side, supporting an one percent local option sales tax without a component of property tax relief will only place a larger unfair burden on property owners, with the discussion of a 10 percent residential, 7 percent industrial and 6-7 percent commercial property tax currently in the news in Cedar Rapids.

Is the timing right for any tax increase in the City of Cedar Rapids or in the State? Heck, look at Washington D.C. today and the pressure on spending and taxes?

We need property tax relief. We need to repair and improve our City's infrastructure.

What's next?

No comments: