Below is the end of session wrap up document prepared by the House Republican Research Staff

2012 End of Session Wrap Up

Senate File 2322 provides for a nonrefundable individual income tax credit for an individual who was a volunteer fire fighter who has met the minimum training standards or certified volunteer emergency medical services personnel for the entire tax year or prorated if part year. The amount of the credit is equal to $50. The credit is to help compensate the individual for their volunteer service.

The bill passed the Senate 50-0 and the House 96-1.

The estimated credit claims for tax year 2013, the first year the credit is in effect, is a decrease of $910,000. Fiscal year 2013 impacts are estimated to be zero, with all of the tax year impact falling in fiscal year 2014. For the following fiscal years, credit claims are estimated to grow an average of 0.8 percent per year as wage growth raises average tax liability. The bill now goes to the governor for his consideration.

Currently, upper income Americans pay a 35%, and President Obama and several Democrats in Congress want to raise that rate to nearly 40% next year.

According to the poll results, only 4% said the rate should be 40%

Read more of the Fox News article and poll results here

The 2012 legislative session has made its way through the first funnel. Click below to see a list of bills that made it through.

2012 First Funnel Survivors

In light of newly-released statewide polling, House Speaker Kraig Paulsen (R-Hiawatha) called on Senate Democrats to immediately take up the Republican property tax proposal, House File 2274.

If nothing is done on the issue of property taxes, Iowans are staring down the barrel of a $2.5 billion property tax increase over the next ten years, with the majority falling to the homeowner. The Republican plan, which passed the House last week, cuts property taxes for homeowners and businesses, without shifting the burden to any class of property.
Read more »

Click below to read article via a Farm Bureau Spokesman:

Farm Bureau Part One

Farm Bureau Part Two

Lawmakers are considering competing plans to lower commercial levies.

Poll Shows Iowans Favor Property Tax Relief For All, Even at Cost to Local Governments

House File 2274, which provides over $1.2 billion dollars in property tax relief to all classes of property from FY 15-FY 22 passed the House on a vote of 59-40. The Non-Partisan Legislative Fiscal Bureau estimates that over the eight year phase in:

• Residential property taxpayers would see a $416 million decrease
• Commercial/Industrial/Railroads would see a $602 million decrease
• Agriculture would see a $147 million decrease
• Utility/Other would see a $39 million decrease

In addition, the House Republican bill provides backfill dollars to local governments to help them adjust, thus preventing any shift among property classes.
Read more »

Over the last ten years, property taxes collected on a statewide basis for schools, counties and cities have increased over 60%, or over $1.7 billion dollars. Those numbers are truly staggering and the Legislature can’t afford to do nothing.

Residential property taxes will naturally increase in the coming years. Over the next 10 years, property taxes paid by homeowners will increase from $2.3 billion in 2012 to $3.9 billion in 2022 – a 73% increase. This must be addressed.
Read more »