November 23, 2014

Senate Republicans press for end to “double tax” on manufactured goods

Republicans in the Iowa Senate are pushing a proposal business groups have been lobbying for — ending state sales tax charges on the components used to make the products that come from Iowa manufacturing plants.

“We need to take away the double tax that exists on how those processes are put together,” Dix says.

The proposal won unanimous approval in the Republican-led Iowa House last year, but was not considered in the Senate, where Democrats control the debate agenda. Dix says it’s time for the senate to take up the bill that clarifies businesses will not have to pay state sales taxes on the supplies consumed during the manufacturing process.

“It’s just something that’s very important to the manufacturing sector — not taxing the items that go into the making of an item and only allowing that to be taxed the finished product,” Dix says. “It’s key for competitiveness and new career opportunities here for Iowans.”

Governor Terry Branstad and the top Republican leader in the Iowa House have suggested after the landmark action on education reform and the commercial property tax cut lawmakers enacted in 2013, this year’s legislative agenda is more limited in scope. Dix is pressing for a more aggressive agenda in 2014.

“It’s not a year to rest on our laurels,” Dix says. “Let’s find a way to continue to move forward.”

This was the first week of the 2014 Iowa legislature. Lawmakers will not meet today and they will not work on Monday in observance of the Martin Luther King, Junior Holiday. Legislators will have a more limited work schedule in Des Moines on Tuesday and on Wednesday as well, so members of the House and Senate can be in their home districts and attend the Iowa Caucuses on Tuesday night.