GOP: Majority Leader Hagenow’s Capitol Update

June 14, 2019
By
Hagenow

Revenue Continues to Grow

Responsible budgeting has been one of the main focuses of the House Republican agenda. House Republicans have consistently based the state budget on conservative principles to pass a fiscally thoughtful plan, which this year will leave a healthy ending balance moving forward. When constructing budget bills, House Republicans always keep taxpayers in mind, and put them first.

After passing a responsible budget, May was a strong month for state revenue, as tax collections were 28.1% higher than what was collected in May 2018.  The $145 million increase in monthly collections brought the growth in state revenue for 2019 to 7.8%. These numbers put the state well ahead of the Revenue Estimating Conference’s original projection.

Personal income tax, sales and use tax, and corporate tax collections all rose this month by a substantial amount and above the REC projection. Through May, personal income tax is up 4.4%, 2.7% ahead of the REC projection. Sales and use tax revenue rose for the month as well. For the year, sales and use collections are up 3.8% over FY 2018. Corporate income tax again had a very strong month, increasing collections by $23.9 million.  For the year, corporate tax has grown by 33.1% over FY 2018. 

There is still one month to go in the current fiscal year until the books close, so these figures can change.  Even with these potential caveats, state revenue is likely to finish Fiscal Year 2019 in a very strong position.

These revenue numbers put the state in a solid financial position and show that the Iowa economy is growing. Because the state remains on a stable fiscal path and revenues continue to grow we are on track for the next phase of income tax cuts.

In The News

Legislature Works to Revitalize Rural Iowa – Fort Dodge Messenger

In this article, Representatives Ann Meyer and Phil Thompson address the importance of rural Iowa and making sure the small communities across Iowa are given the tools they need so they are able to prosper:

“Iowa is a rural state and its people have great pride in the bustling communities that dot our state. Countless Iowans grew up and continue to live in small-town Iowa because of the great quality of life that our rural communities offer.

As state lawmakers, it is our responsibility to ensure that Iowans living across our state continue to have abundant opportunities to live, work, and raise a family in small-town Iowa. Whether it is economic development, health care, or education, the Legislature must continue to make rural Iowa a priority and keep our small communities vibrant and growing.”Read More: Fort Dodge Messenger

New Law Brings Transparency to Property Taxes – Des Moines Register

Property tax increases have been one of the biggest issues that Iowans want the Legislature to address. Representative Dustin Hite outlines how the Legislature passed a bill that provides transparency and accountability to the process of increasing property taxes:

“A few weeks ago, thousands of Iowans across the state opened their mailboxes to find property tax notices showing that their assessments had sky-rocketed. Normally, this is a good thing. Your home is an investment and you want to see its value grow from year to year.
 
It becomes a problem when local governments fail to adjust their property tax rates to reflect these new home values. They end up capturing far more tax revenue compared to the year before, and oftentimes it results a double-digit tax increase on families and seniors.”

Read More: Des Moines Register

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