Legislators want to take state tax off federal tax rebates

Another issue’s added to the list for the special legislative session in two weeks: ensuring Iowans don’t get taxed on those federal rebates in the mail soon. The rebates of about 300-dollars per taxpayer will be mailed by the feds sometime later this summer. House Speaker Brent Siegrist a republican from Council Bluffs says President Bush and others hope the rebate money will help stimulate the economy. Those rebates will not be taxed at the federal level, and Siegrist says they shouldn’t be taxed by the state, either. Siegrist says it’s important to make that assurance now rather than wait ’til lawmakers come back in regular session in January. Siegrist says some taxpayers file their returns in early January, before lawmakers would be in session and have a chance to make the move. State officials estimate the refund checks will put about 400-million dollars into Iowans’ pockets.