Iowa Legislature Public Hearings

Darryl High [High Properties]

CON

I wish to address the committee related to the proposed increase in property taxes on Multifamily properties. I believe these changes will have a detrimental impact on both the current renters and also our ability to compete in the economic arena to attract businesses.Respectfully,Darryl HighPrincipal High Properties

Margaret Buckton [Urban Education Network and Rural School Advocates of Iowa]

CON

UEN and RSAI are registered as undecided on SF 2472, but will be sharing concerns at the Hearing about several parts of the bill that would inhibit school district capacity to provide a good education for every student: Div. III school taxes and levies: cost to the state of the 100% foundation threshold in the school aid formula, requires the state budget to cover $479 million, when the state is already challenged to adequately fund education. Lowering the PPEL and Debt Levy maximum rates to 70% while slowly phasing out the residential rollback will diminishing capacity for school boards and their voters to provide safe, technologyready facilities designed for student learning. In some districts with concerntrated commercial or agricultural value, the valuation will never catch up. Concerned about limitations on management fund based on averages of several prior years expenditures premiums and deductibles have increased dramatically. Covering shortfalls may require school districts to reallocate general funds which provide for teachers and programs for students in instances of extreme disaster. Div. XIV Budget Statements we appreciate the opportunity for electronic statements, but the taxpayer statements themselves do not communicate to taxpayers how much more a local government's budget will cost them in property taxes. Div. XVI Data Centers/Division of Revenue would minimize the impact of incentives on the school uniform levy and would save the state additional cost (UEN and RSAI support this section.) Div. XX School District Unspent Balances: This Division would eliminate the emergency capacity of school districts, that would otherwise position them to continue serving students during several more years of low funding and declining enrollment. The very existence of unspent authorized budget, however, proves that school boards do not flippantly increase property taxes. We oppose Sec. 167. However, the requirement of the local school board policy on Unspent Balance, in Sec. 168, inlcuding setting financial goals and annual school board review, is a good suggestion. Thank you for the opportunity to comment.

Anonymous [Dubuque Area Landlord Assoc]

CON

Jason Stauffer [New Century FS a division of GROWMARK Inc. ]

CON

Jason Stauffer speaking on behalf of New Century FS, a Retail Division of GROWMARK. GROWMARK is one of the single largest purveyors of motor fuel in the state of Iowa. While many have framed this tax increase as a gas tax increase, its important to note that the fuel tax index proposed by the Senate covers both gasoline and diesel fuel. Iowas diesel fuel market includes the sale of approximately 730 million taxable gallons annually with the largest diesel fuel consumers including farmers and commercial endusers. In my role as Refined Fuel Sales and Marketing manager, Im standing here today to relay that affordability and inflation are the number one issues facing my farm and commercial enduse customers. Rising input costs are devastating these customers and pairing a fuel tax increase with an automatic index will only add upward pressure to input costs. 19 of the 25 highest fuel tax states in the country employ an automatic indexing system if you want to look at how quickly a fuel tax index can get out of control, simply look toward our neighboring state of Illinois as an example.Iowas gasoline and diesel fuel market includes roughly 2.2 billion gallons of taxable motor fuel sales annually. An annual pennypergallon tax increase as proposed by the Senate bill equates to an automatic $22 million dollar tax increase on Iowans annually. But the impact does not stop there, transportation input costs like fuel prices factor in the costs of goods and services for consumers, farmers, and commercial endusers alike. Automatic annual tax increases like the one proposed in the Senate bill will raise the cost of goods over time and serve as a second tax on Iowans resulting from the fuel tax index proposal. Thank you for your time today and on behalf of New Century FS, Growmark, and our customers, I ask that you remove an automatic fuel tax index from your very important analysis within property tax reform.

Paul Hayes []

CON

Do not claim to be lowering taxes. At best you are reallocating taxes to nonvoters. The tax shift will present itself in unexpected ways: higher residential rents, reduced employment, suspended development. You are replacing old complexities with new ones. If the level of property taxes are important to voters, they can vote out local boards and councils.Do better.

Debbie Fisher [Newbury Management Company and Iowa Assisted Living Association]

CON

Assisted and Independent Living Communities serve frail elderly needing assistance with Activities of Daily Living. Average resident age is 87. The high cost of providing healthcare, food, housekeeping, transportation, social and wellness activities puts this housing out of reach for many famililes who struggle to accommodate parents staying at home longer. Particularly when staying home is no longer the safe or healthy choice. Industry margins have been compressed by labor shortages and inflation. Higher taxes on this class of housing will likely result in the closure of facilities with narrow operating margins, and create substantial increases to resident's rates, putting assisted living out of reach for many at a time when the elderly population is growing daily.Higher taxes will also inhibit the development of new assisted and independent living communities.

Darla Arends [Van Wyk, Inc.]

PRO

Investing in our roads and bridges is ultimately about safety. Deteriorating infrastructure increases risks for everyonetruck drivers and the traveling public alike. By supporting gas tax indexing, we are prioritizing safer highways, more reliable travel, and fewer costly disruptions for businesses and families across Iowa. This is a WIN for everyone.

Brad Kohlwes []

PRO

As an over the road truck driver, I experience Iowas roads firsthand every day. I also experience surrounding states roads and see the challenges and risks that come with aging infrastructure. Supporting gas tax indexing is about giving trucks, drivers and all iowans safer, more dependable roads to do their jobs. Every Iowan depends on the trucking industry and our infrastructure to deliver the products they need every day and in order to do that, we need to continue to invest in our roads and bridges

Aaron Friederich [GreenState Credit Union]

CON

Developers and lenders underwrote multifamily projects based on the current property tax framework when loans were approved. Rolling back multifamily property taxes midstream undermines those business plans, increases financial risk for lenders, and forces higher rents to offset unplanned costs. At a time when Iowa already faces an affordable housing shortage, this proposal moves the state in the wrong direction.

Michael t Evans [Grand Rail Development.]

CON

I understand what you are trying to accomplish with this bill but this is going about it the wrong way. Developers lenders and investors have all started their Investments under the current property tax rules and this would undermine the value of their properties that is what the investment is tied to. I believe it would cause rental increases and possibly builders from choosing not to build multifamily units. I think it would drive the price of units and rents way up. Therefore I'm against this bill.