GOP: Capitol Update – Week 9

March 11, 2016
By

Hagenow

A Victory for Taxpayers

Iowa taxpayers achieved a major victory this week. Since the beginning of session, House Republicans have led the charge on tax coupling, which would conform state tax law with changes enacted at the federal level. On Thursday, we were proud to announce an agreement with the Senate and begin the process of a bipartisan deal.

Coupling will benefit nearly all Iowa taxpayers. Small businesses will be able to expense up to $500,000 worth of qualifying purchases; teachers will be able to deduct out-of-pocket expenses for classroom supplies; seniors will be able to give tax-free contributions to qualifying charitable organizations; homeowners will be able to deduct mortgage insurance, just like they would mortgage interest; and parents and students will be able to deduct qualifying higher education expenses, reducing the cost of college and continuing education.

In addition to coupling, the other portion of the bill deals with sales tax for manufacturers. In 2014, the House passed the “consumables bill” which gave a more clear and consistent definition of consumable supplies and replacement parts for exemption from sales tax. As part of the coupling package, House Republicans were able to work with the Senate to include this language which will ensure the state is not unfairly taxing supplies and replacement parts.

Both the House and Senate Ways and Means Committees passed this bill on Thursday. Both legislative chambers expect to pass the bill next week and send it to the governor for his signature early the following week.

Thank you to all of you who called, wrote, and encouraged your legislator to support this measure. Without the help of Iowans from all across the state, this deal would not have happened.

Now that these larger items are coming together, the next step is to resolve education funding and get to work on the overall budget picture. We’ve continued to have productive conversations with the Senate on both of these issues, and I’m optimistic we will reach consensus soon.

 

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GOP: Capitol Update – Week 9

March 11, 2016
By

Hagenow

A Victory for Taxpayers

Iowa taxpayers achieved a major victory this week. Since the beginning of session, House Republicans have led the charge on tax coupling, which would conform state tax law with changes enacted at the federal level. On Thursday, we were proud to announce an agreement with the Senate and begin the process of a bipartisan deal.

Coupling will benefit nearly all Iowa taxpayers. Small businesses will be able to expense up to $500,000 worth of qualifying purchases; teachers will be able to deduct out-of-pocket expenses for classroom supplies; seniors will be able to give tax-free contributions to qualifying charitable organizations; homeowners will be able to deduct mortgage insurance, just like they would mortgage interest; and parents and students will be able to deduct qualifying higher education expenses, reducing the cost of college and continuing education.

In addition to coupling, the other portion of the bill deals with sales tax for manufacturers. In 2014, the House passed the “consumables bill” which gave a more clear and consistent definition of consumable supplies and replacement parts for exemption from sales tax. As part of the coupling package, House Republicans were able to work with the Senate to include this language which will ensure the state is not unfairly taxing supplies and replacement parts.

Both the House and Senate Ways and Means Committees passed this bill on Thursday. Both legislative chambers expect to pass the bill next week and send it to the governor for his signature early the following week.

Thank you to all of you who called, wrote, and encouraged your legislator to support this measure. Without the help of Iowans from all across the state, this deal would not have happened.

Now that these larger items are coming together, the next step is to resolve education funding and get to work on the overall budget picture. We’ve continued to have productive conversations with the Senate on both of these issues, and I’m optimistic we will reach consensus soon.

 

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TCR's Iowa Legislative Updates provides content from the leadership of each party's caucus in both the Iowa House and Iowa Senate. We hope you find this to be a valuable resource.

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