Tag Archives: Taxes

DEADLINE FAST APPROACHING FILE BUSINESS PROPERTY TAX CREDITS APPLICATIONS BY JANUARY 15

Through January 15, 2014, property owners can apply for a property tax credit on industrial, commercial and railroad classed parcels.

One credit is available for each qualified property unit. A property unit consists of contiguous parcels of the same classification that are owned by the same person and operated by that person for a common use and purpose.

A property owner need only fill out the application once as it will be applicable in subsequent years. If a property owner misses the January 15, 2014 deadline they can apply in subsequent years.

Application must be filed with the city or county assessor where the property is located. Copies are available at your County Courthouses and online here. http://co.black-hawk.ia.us/departme.nsf/F48EE0B3E331F78B86256704007A4926/163A0FD97DB5A7F286257C0D00686564?OpenDocument

The links above takes you to an online form and information provided by the Black Hawk County Assessor Tami McFarland. The contact information for assessors in other Cedar Valley counties is provided below. Simply change the name of the county in “Jurisdiction.”

Benton County Assessor
111 East 4th St, 2nd Floor
Vinton, Iowa 52349
bcassessor@co.benton.ia.us

Black Hawk County Assessor
Room 209
316 East 5th Street
Waterloo, Iowa 50703
assessor@co.black-hawk.ia.us

Bremer County Assessor
415 E. Bremer Avenue
Waverly, IA 50677

jkeller@co.bremer.ia.us

Buchanan County Assessor
P.O. Box 388
Independence, IA 50644-0388
bharms@co.buchanan.ia.us

Chickasaw County Assessor
8 East Prospect
New Hampton, IA 50659

Grundy County Assessor
706 G Avenue
Grundy Center IA 50638
johnf@gccourthouse.org

Tama County Assessor
104 W. State Street, P.O. Box 91
Toledo, IA 52342
jwitt@tamacounty.org

The Greater Cedar Valley Alliance & Chamber was part of an effective coalition that included the Iowa Chamber Alliance, Iowa Association of Business & Industry (ABI), Professional Developers of Iowa (PDI), and Iowa Taxpayers Association to achieve property tax reduction for all commercial and industrial property owners.

The Alliance & Chamber encourages voters to say “Yes” on Tuesday, November 5, 2013.

RESOLUTION OF THE BOARD OF DIRECTORS

The Board of Directors of the Greater Cedar Valley Alliance & Chamber encourage the voters of Black Hawk County communities to renew the one-cent Local Option Sales Tax on the ballot on Tuesday, November 5th.

Since 1991, the communities of Black Hawk County, with voter approval, have collected a one percent sales and service tax on qualified purchases. Waterloo and Cedar Falls have consistently used the revenues from this sales tax for the construction and repair of streets. Both cities have again pledged to use the revenues in a similar manner if the tax is reauthorized. Other cities have also used the revenues for key attributes, while others have reduced property tax burdens.

The sales tax has produced notable results. For instance, in Cedar Falls and Waterloo alone, since the tax program’s implementation, hundreds of miles of streets have been reconstructed, overlaid, or seal-coated; and many railroad crossings have been replaced.

The sales tax is imposed by local governments on goods and services sold within Black Hawk County. Out-of-county purchases generate an estimated 35% of the tax revenue.

The Alliance & Chamber encourages government at all levels to monitor operations continuously to discover ways to reduce property tax, sales and service tax, and other fees that are ostensibly taxes imposed on business and residents. However, we recognize that the revenues from this sales and service tax are used for key infrastructure for economic growth and a satisfactory quality of life, and there are established oversight committees established to review the proposed uses of the tax revenue.

Therefore, the Board of Directors of the Greater Cedar Valley Alliance & Chamber endorses the renewal of the one-cent Local Option Sales and Service Tax in Black Hawk County. The Alliance & Chamber encourages voters to say “Yes” on Tuesday, November 5, 2013.

Approved by the Board of Directors, during its regular meeting on October 1, 2013.

___________________________

Steven J. Dust

CEO

Alliance & Chamber Seek Investor Input to 2014 Legislative Policy Agenda

As the Government Relations Committee begins deliberating on the 2014 GCVAC Legislative Policy Agenda, I want to extend a special invitation to an Investors’ Legislative Issues Forum on Monday, September 16, 2013 at the Hilton Garden Inn in Cedar Falls from 8:00-9:00 am. This year, the Alliance & Chamber is offering an opportunity for investor involvement in legislative priority identification through this forum. Please come to hear from other investors what is on their minds as we begin crafting our 2014 agenda. Our hope is that this forum will give us an important head start and strengthen our efforts in identifying and prioritizing issues important to business in the Greater Cedar Valley as we build the Alliance & Chamber’s legislative agenda for the next session.

The October 11 Friday Forum will be at the Five Sullivan Bros. Center and the November 8 event will be at the Waterloo Center for the Arts.

Iowa Property Taxes Reduced for Commercial & Industiral Tax Payers

The persistence of Iowa commercial and industrial property owners finally paid dividends in a reduction in your property tax burden! After several tries over the last decade, the legislature and Governor came to agreement on the start to property tax reform, and provided modest tax reduction at the same time.
We appreciate those of you who contacted your legislators, encouraging them to finally act on an inequity in the tax system that has persisted – and has been an impediment to economic growth – for far too long.

While not all was achieved that we were looking for – the rate of rollback is much less than the original proposal – it is a start. Beyond this, it may provide the motivation for a reform of the entire system in years to come.

The Greater Cedar Valley Alliance & Chamber, through its Government Relations Committee and our director of governmental relations Steve Firman, collaborated with a coalition that included the Iowa Chamber Alliance, Iowa Association of Business & Industry, Professional Developers of Iowa, and Iowa Taxpayers Association to continually impress upon our elected officials the need for this change.

Conference Committee Report for SF 295 – Property Tax

Division I—Business Property Tax Credit (“Senate Plan” element)

Creates a Business Property Tax Credit for property taxes due and payable in fiscal year 2015.
$50 million is appropriated in fiscal year 2015 to the Business Property Tax Credit Fund
$100 million is appropriated in fiscal year 2016
$125 million is appropriated in fiscal year 2017
$125 million every year thereafter
Each person who wishes to file a claim will obtain a form from the County Assessor.
The form does not have to be filed again until the property is sold or transferred.
The state will use the money appropriated into the Business Property Tax Credit Fund to reimburse local governments the amount of credits issued.
When fully phased in, at least $145,000 of property value on every business would be equal to the residential rollback
Total Fiscal impact to local governments is $16 million when fully phased in.

Division II —Property Tax Assessment Limitation and Replacement (“House Plan” element)

Assessment growth limitation moves from 4% to 3% on Ag and residential immediately.
Commercial and Industrial will assessed at 95% of valuation starting January 1, 2013; at 90% starting January 1, 2014; and is frozen at 90% thereafter.
The State will appropriate money for replacement of the lost revenue. Payments will be made by IDR to county treasurers:

FY 15 $78.8 million (includes multi-residential)

FY 16 $162.8 million (includes multi-residential)

FY 17 $154.1 million (does not include multi-residential and capped at this level

going forward)

Division III—Multi-residential Property Classification

Creates a new property classification: Multi-residential
Multi-residential will include apartments, nursing homes, assisted living facilities , and certain other rental property
The existing classifications are Residential, Agricultural, Commercial, Industrial
Multi-residential properties will eventually equal the residential rollback after 10 years.
Total fiscal impact to local governments is $85.3 million when fully phased in.

Assessment Year 2013 95%

Assessment Year 2014 90%

Assessment Year 2015 86%

Assessment Year 2016 82%

Assessment Year 2017 78%

Assessment Year 2018 75%

Assessment Year 2019 71%

Assessment year 2020 67%

Assessment year 2021 63%

Assessment year 2022 and thereafter: Residential rate

Division IV —Telecommunications Property

Determining the taxable value of each company stays the same
Each telephone company will receive a partial exemption from taxation on the value of the company’s property. This is phased in, with half in assessment year 2013 (FY 15), and the remainder being added in assessment year 2014 (FY 16)
Department of Revenue is directed to complete a comprehensive study of the telecommunications industry and report recommendations for change to the General Assembly

Assessed value $0-$20M $20-$55M $55-$500M >$500M

Exemption 40% 35% 25% 20%

Division V – Iowa Taxpayers Trust Fund Tax Credit

Each year, beginning July 1, 2014, the balance of the Taxpayers Trust Fund exceeds $30 million a tax credit will be issued to Iowa taxpayers
The tax credit will be issued to Iowans with a tax liability
$60 million is the maximum amount that can flow into the taxpayer trust fund each year
$60 million equals a $27 credit per filer. $120 million would equal $54

Division VI -Property Assessment Appeal Board

Five year sunset – July 1, 2018, lower salaries, adding another appraiser to the board (replacing the finance profession with state and local tax policy experience, allowing for a speedier hearing process.)

Division VII—Earned Income Tax Credit

Increases the Earned Income Tax Credit from 7% to 14% in tax year 2013; 15% in tax year 2014
The credit remains refundable.
The increase is effective retroactively to January 1, 2013.
Fiscal impact: $30.8 million in FY 14 , increasing to $34.5 in FY 15

Clock Runs Out on Iowa Legislature

May Update from Professional Developers of Iowa Lobbiest

Friday, May 3rd was the 110th day of the 110-day 2013 legislative session. Pay for legislators officially stops after Friday. Any days spent doing legislative work after that are on their own dime.

This 16th week of the session has been the busiest in many ways as the final pieces of the legislative session are put into place. The goal of this past week for legislative leaders has been to move all remaining contentious issues – and there are a lot of them – into conference committees for further negotiation. Typically, legislation rarely advances to a conference committee, the format used when the House and Senate are not able to find compromise language through the typical amendment process. This year, they will have at least 9 bills in conference committee.

The beauty of the conference committee is that the final product that comes out is not amendable (unless it’s voted down, and then the process gets uglier). Each chamber will simply have a yes or no vote on each of the conference reports. In situations where the majority party in each chamber has a very small margin (like this year’s 26-24 in the Senate and 53-47 in the House), a small group of majority party members in a chamber could hold out for their own specific priorities. By using the conference committee process, they can bypass that possibility.

Currently in Conference Committee:

Education Reform, Property Tax Reform, Justice Appropriations,Economic Development Appropriations, Education Appropriations, Ag/Nat Res Appropriations, Admin/Reg Appropriations, Medicaid Expansion, Health Appropriations, Heading to Conference, Standing Appropriations, Infrastructure (RIIF) Appropriations.

Another benefit to using conference committees to enact legislation, and particularly the budget, is that a chamber cannot add a provision into a conference committee discussion that was not in either the House or the Senate’s bill. This year, the House and Senate each passed essentially their wish lists for each budget bill and will negotiate which portions of each bill to accept.

Unlike previous conference committees in previous sessions, this year’s conference committees will need to wait until the House, Senate and Governor can agree on an overall spending number for the next fiscal year. This will require first knowing whether property tax reform will advance to enactment or fall short like it has in so many sessions past, and whether or not Iowa will expand Medicaid or pursue a different option.

Once the legislative leadership and the Governor reach overall agreement, the conference committees will convene and each come to agreement on their individual bills. Then, at long last, the Legislature will adjourn sine die for the year.

IEDA Funding – Still In Jeopardy

As the Legislature officially starts the overtime period, it is absolutely critical that you don’t let up on your emails and phone calls. They are working! Whether final adjournment occurs this week (there IS a chance) or not for over a month, PDI members’ efforts to weigh in can greatly affect the outcome.

The Economic Development Budget is currently in conference committee. They will negotiate, among many other things, the IEDA Administration Budget and the IEDA Incentives Fund (which the House funded out of the Infrastructure Budget bill).

The Governor and the Senate provide roughly $18 million for IEDA Incentives and $16 million for IEDA Administration.
The House proposes $15.1 million for IEDA Incentives and $13.2 million for IEDA Administration.

In the days ahead, PDI members should CALL OR EMAIL legislators and ask them to support $18 Million for IEDA Incentives and $16 Million for IEDA Administration. Then, find 2 or 3 other people on your board, in your office or elsewhere in your work arena and ask them to email as well. If each legislator gets a handful of emails on this issue, it will make a HUGE difference. Do this TODAY!

A full update on all bills can be found using the BILL TRACKER

Dust Optimistic About Cedar Valley Economy – Part 2

View the three part video of Steve Dust, CEO of the Greater Cedar Valley Alliance & Chamber on KWWL’s Steele Report.

Click Here.

Dust Optimistic About Cedar Valley Economy – Part 1

View the three part video of Steve Dust, CEO of the Greater Cedar Valley Alliance & Chamber, on KWWL’s Steele Report here.

Click Here.

Dust comments on Deloitte study of Iowa’s competitiveness

In a recent Courier article Steve Dust, CEO of the Greater Cedar Valley Alliance & Chamber and chairman of the Iowa Chamber Alliance commented on a recent study performed by Deloitte Consulting LLP.

The study was commissioned by ICA in hopes to provide the Legislature and policy makers current information about where Iowa lines up competitively with the study’s benchmark states. Read the entire Courier article by Jim Offner here.

Iowa Chamber Alliance study finds Iowa’s economic development toolkit effective, but under resourced

The study rates Iowa’s competitiveness with its neighbors and other highly competitive states in economic development programs

View study here

Des Moines, Iowa – The Iowa Chamber Alliance, a non-partisan coalition representing the 16 largest chambers of commerce and economic development organizations throughout the state, released today a new study examining Iowa’s relative competiveness in its economic development efforts. Deloitte Consulting LLP was commissioned to examine the competitiveness of Iowa’s state-level economic development incentives.

“This study confirms Iowa’s approach to economic development incentives is on the right track, but it also demonstrates that Iowa does not resource its economic development incentives at a competitive level,” said John Stineman, Executive Director of the Iowa Chamber Alliance.

The Deloitte study found that Iowa lags only behind Texas in the “usability” of its economic development incentives – an important factor in how a state measures up in competing for economic development investments. Texas is widely considered one of the most aggressive states in economic development in terms of its incentive funding, its programs and its business-friendly tax and regulatory climate.

However, on the financial value side of economic development – the ability to impact projects through financial incentives – Iowa lags significantly behind its neighbors as well as other leading economic development states.

“It is clear Iowa punches above its weight class in economic development. The approach and programs we have are working and the proof is in the projects. The question is, how many projects are we missing out on because we simply do not resource economic development efforts at a competitive level?” said Stineman.

The study examined Iowa’s economic development programs and funding compared to five other states: Minnesota, Nebraska, South Dakota, South Carolina and Texas. South Carolina and Texas are consistently ranked as highly competitive states for economic development.

Other key findings of the study include:

Iowa is at a competitive disadvantage in the availability of discretionary funds to help close deals as well as in offering corporate tax exemptions.
Iowa performs at peer level in property tax exemptions, sales and use tax exemptions, and research and development tax credit programs.
Iowa has a competitive advantage in its workforce development incentive programs.
Other states have caught up to and begun to pass Iowa in data center and technology incentive programs – an area where Iowa was considered a leader previously.

“Iowa has a solid base of state-level economic development incentives tools upon which to build. However, to become more competitive, Iowa may wish to increase the funding level and flexibility of some of the State’s key incentive programs” states Darin Buelow, a Principal with Deloitte Consulting LLP.

The recommendations from Deloitte Consulting include:
Consider increasing the cap on Iowa’s economic development tax credits
Evaluate options to offer a “Deal Closing Fund” or more discretion to the Iowa Economic Development Authority in awarding direct financial assistance
Consider allowing the sale, refund or transfer of economic development tax credits
Consider expanding the Brownfield/Grayfield Redevelopment Tax Credit program
Consider augmenting Iowa’s data center incentives.

“The opportunity is there for Iowa. We are well positioned to compete – if we resource our economic development efforts at the right level. We also need to review our programs to ensure we have usable and valuable incentives to help Iowa continue its economic growth in the future,” said Stineman.

For more information about the Iowa Chamber Alliance’s positions and legislative agenda, please visit www.iowachamberalliance.com. Copies of the study will be made available upon email request to john@iowachamberalliance.com.

About the Iowa Chamber Alliance

The Iowa Chamber Alliance’s mission is to put forth and enact an agenda to grow the state’s economy through support of proactive programs that stimulate economic growth opportunities for the entire state and its residents. The Alliance members include chambers and economic development organizations in: Ames, Burlington/West Burlington, Cedar Rapids, Council Bluffs, Des Moines, Dubuque, Fort Dodge, Iowa City, Marshalltown, Mason City, Muscatine, the Quad Cities, Sioux City and Waterloo/Cedar Falls.

View the study here

Grow Cedar Valley