"AX THE TAX!"    .  .  . And we DID in Coralville & N. Liberty!  Almost in Iowa City.                          
Facts About the Tax                                                                                 
Local Tax Events 

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Points to Consider

Coralville Dam Facts

"Ax the Tax" Accessories

 
"Ax the Tax" is a Political Action Committee formed in March 2009 in Johnson County, IA to oppose the 1 Cent Local Option
Sales Tax (LOST) which will be voted on May 5, 2009 in Johnson County in a special election.  "Ax the Tax" is a nonpartisan committee whose mission is to educate citizens on the pro's and con's of this local option sales tax and thus empowering the citizens of Johnson County to cast an informed vote.

Paid for by "Ax the Tax",  Johnson County, IA, Ballot Issue Committee. 
1912 North Ridge Drive
Coralville, IA 52245

www.coralvillecourier.com
An online publication with a fiscally conservative bend.

This website has been designed by a volunteer who is learning web page design.  It is not done by paid professional.
                         

 

 

 

 

Donations: Please make checks payable to "Ax the Tax" and send to: 631 Scott Park Dr Iowa City, IA 52245. For a "Ax the Tax" sign or button please call 319-400-3223 or 319-338-5579. Click "Donate" to use Paypal. 

                                                 "Ax the Tax" Accessories: http://www.cafepress.com/coralville.370478436
http://www.marshbaby.com/teaparty

Paid for by "Ax the Tax", Johnson County, IA, Ballot Issue Committee.
1912 North Ridge Drive
Coralville, IA 52245


Local Tax Events:

Wednesday, April 8, 7-9 p.m., Coralville City Hall, "Local Option Sales Tax Presentation" by local officials

Tuesday, April 14, 11:30 Local Option Sales Tax Presentation, Senior Dining Methodist Church, Solon

Wednesday, April 15, 11:30-12:30p.m. Burlington St bridge "TEA PARTY" (Taxed Enough Already!)Be There!
http://www.teapartypatriots.ning.com/xn/details/2978134:Event:1620
http://www.coralvillecourier.typepad.com/community/2009/03iowa-city-tea-party.html

Thursday, April 16, 7 p.m. Local Option Sales Tax Forum, Iowa City Library, Rm A

Facts About the Tax:
*  This one cent sales tax was approved by the Iowa City Chamber of Commerce and by (3) County Board of Supervisors.

*  Local sales tax is currently 6% on the dollar.  A 1 cent increase to 7% equates to a 16.6% increase.


*  The 1 cent sales tax is set to expire in (4) yrs at which time it would be voted upon. http://www.johnsoncounty.com/auditor/voter/0905res.html  

*  It needs 50% + 1 vote to pass.

*  According to Tom Slockett, auditor, if all jurisdictions approved the tax it would create an estimated $18.2 million windfall/yr.  Iowa City receiving 53.6% of the funds, Coralville 11.93%, Johnson County 25.18%.  By state law funds are distributed according to a formula based on population.  The sales tax revenue from all communities that vote "yes" are pooled and shared.   
http://www.presscitizen.com/article/20090201/NEWS01/90201002 

*  The sales tax would not apply to groceries, gasoline, motel rooms, and vehicle purchases.

*  This sales tax is considered to be a regressive tax.  Meaning people of lower or fixed incomes are affected more as it assumes a greater percentage of their income.

*  The one cent tax will result in almost an additional $70 in sale tax being paid by worker who makes $15,000.

*  The average household in Johnson County pays over $13,000 in federal taxes.  We rank in the top 10% in the COUNTRY for federal taxes.

*  Citizens in Johnson County pay the highest county taxes in the state, at over $820/person or $3,300/family of four.

FEMA has agreed to provide funding for 90% of infrastructure repairs and rebuilding in Iowa.  It is estimated that in the end more than $1.1 billion
will be spent in this program.  Please refer to pg 36 of the "Rebuild Iowa" April 2009 report.


*  It is estimated that 20% of the revenue generated from this tax will come from visitors. 

* The ballot language for Iowa City states:  0% of the revenues generated by this tax will be used for property tax relief and the remaining for the following specific purposes:  100% for remediation, repair and protection of flood impacted public infrastructure and local matching funds from dollars received from federal or state programs to assist with flood remediation. (And where do the State and Federal funds come from... YOU & ME!)

Early voting has already started at the auditors office in Iowa City. Starting April 27 Coralvill City Hall and North Liberty Rec Center locations.

Points to Consider:
http://www.press-citizen.com/article/20090402/opinion02/904020323/1018/opinion
http://www.press-citizen.com/article/20090408/OPINION01/904080304/1018/OPINION
*http://coralvillecourier.typepad.com/community/2009/04/mike-thayers-take-on-the-mother-nature-tax.html   

*  Over $2 Billion has been set aside for diaster relief in Iowa via Governor Culver's "Rebuild Iowa" initiative.  http://www.rio.iowa.gov/funds.html

*  According to Tina Potthoff at Rebuild Iowa a conservative estimate of $155 million has already been given to Johnson County for flood damage as of
   March 2009.  We are waiting for actual numbers from Doug Elliot of East Central Iowa Council of Governments.

*  According to the "Rebuild Iowa" website the state of IA has been given $281,987,957.00 in Community Development Block Grants which is administered 
   through IA Department of Economic Development.

*  State wide estimate for Infrastructure and Public Assistance is $798.6 million.

*  Are you aware that Iowa City has budgeted over $31,000,000 for roads, transportation and safety for 2009?
                            http://www.johnson-county.com/supervisors/pdf/budgetbookFY09.pdf

*  House Representative Loebsack has already asked for $5 million for Park and Dubuque street flood damages. 
   http://www.loebsack.house.gov/constituentservices/appropsfy2010/flooddamagedcommunities.html

*  How was the amount of the tax determined?  And why was a (4)yr sunset set vs (1)yr?  Did the city get cost estimates for the reconstruction of the bridges?  If they did have cost estimates, why was there debate over the sunset date with auditor Tom Slockett?  Wouldn't the estimates dictate the sunset date?

*  Supporter's of the tax often make the point if ALL municipalities would support the sales tax shopping elsewhere would be a moot point.  No kidding?!
   A total of $5,712,918.00/yr would be distributed amongst the (9) municipalities and unincorporated areas if all entities passed the tax even though
   they had no flood damage.

*  Ms Quellhorst references the bridges on Park Road and Dubuque as a justification for this 1% sales tax increase.  According to minutes taken by an observor at the February 19,2009 Johnson County Council of Government Transporation Technical Advisory Committee, the urbanized area of Johnson County is to receive an estimated $3,608,819.00 from the infamous Federal "Stimulus Fund."

*  Iowa City approves $130,000 in city attorney office renovations:  http://www.kcrg.com/news/local/42355387.html

*  Iowa City elects to spend $80,000 on sculpture.  http://www.press-citizen.com/article/20090313/NEWS01/903130308/1079

*  According to a Wall Street Journal Article, dated March 11,2009 pg 6:  "And as early as next wk, Iowa Gov. Chet Culver is expected to ask the state legislature to approve a
$750 Million bond issue-something the state has seldom done and never on this scale,says Phil Roeder, his communications director.  The money would fund infrastructure improvements.  "It is really intended as a job-stimulus effort," Mr Roeder says. "That's priorty one."*   

*  According to Rod Sullivan, Board of Supervisors, 50% of the revenues will be spent on roads/bridges and 50% on property tax relief.  Didn't the county just elect to increase our property taxes by $25.00/$100,000 for the next 20 yrs in November 2008 to buy "green space?"  How exactly does that math work Mr Sullivan? 
http://www.belzinthecounty.wordpress.com/200 This website has recently been taken down.

*  Harry Graves with the Johnson County Conservation Board, along with Mark Ackleson, president of the IA Natural Heritage Foundation stated these funds  generated from the increase in property tax may be used to purchase flooded land. 

*  According to the minutes from the January 21, 2009 Johnson County Conservation Board $95,000 has been 're-allocated'from improvements of wetlands at Cedar River Crossing and Kent Park for the construction of the Kent Park Geothermal Campus.  http://www.ask.com/bar?q=Johnson+County+IA+Conservation+Board&page=1&qsrc=0&ab=1&u=http%3A%2F%2Fwww.johnson-county.com%2Fconservation%2Fboard.shtml

Saying one thing and doing another.

Other Local Viewpoints:  http://www.coralvillecourier.typepad.com/community/2008/10/now-is-not-the.html
                         http://www.m.press-citizen.com/apps/pbcs.dll/article?AID=/20090402/OPINION02/904020323/1018/OPINION&template=wapart
                        
Coralville Dam Facts:

The Coralville Dam went into operation in 1958.  It's purpose was pure and simple:  Flood control.  The dam worked well and as intended for years, until the mission was changed.  Instead of managing the Coralville Reservoir with flood control in mind, it became about recreation and boating.  Did you know lake elevation has been raised to increase waterfowl habitat?  Duck hunters loved that, but at what cost to downstream homes and businesses?

In 1958, the elevation of the lake was about 651 feet.  To be fair, the lake was still 'filling.'  To offer some perspective on the elevation, the point at which water starts running over the emergency spillway is 712 feet. 

 In the 1960's, the elevation of the lake averaged around 678 feet.

In the 1970's, the elevation of the lake averaged around 679 feet.

In the 1980's, the elevation of the lake averaged around 680 feet.

In the 1990's, the elevation of the lake averaged around 682 feet.

In the current decade, the elevation of the lake has averaged around 683 feet. 

 Source:  Gage information from the U.S. Army Corps of Engineers (Rock Island District).


The Reasons The Area Chamber Supports This 1 Cent Local Option Sales Tax:
Also refer to:  www.icgov.org/salestax

According to Nancy Quellhorst, President and CEO of the Iowa City Chamber of Commerce, March 4,2009.

1.)  While we traditionally do not favor tax increases, we are deviating from the standard practice to support this limited-duration tax due to extraoridinary circumstances and the urgent need for mitigation.

2.)  Sales tax revenue will be used by the cities of Coralville and Iowa City exclusively for flood remediation and infrastructure repair.

3.)  Cities anticipate the current economic conditions will result in reduced tax revenue for several yrs.  If recovery is not funded by this sales tax, projects will be funded by increased property taxes, which already extraordinarily challenge local businesses.

4.)  More than 250 businesses suffered direct loss in the 2008 flood.  Countless others sustained financial harm due to business interruption.

5.)  A significant number of 2008 flood-affected businesses flooded in prior yrs and do not have the financial resources to endure another natural disaster.  Failed businesses would result in vacant properties, reduced property values and a declining tax base.   Mitigating this risk will encourage renewed investment in central trade areas.

Mitigating the risk of future flooding is critical to our local economy.  Among projects to be financed by this tax are the elevation of Dubuque St and reconstruction of Park Road Bridge.  Dubuque St, the primary artery to our central trade area downtown, was closed for 32 days during the 2008 flood.

The Park Road bridge configuration significantly slowed water flow, causing increased flooding in Coralville.


A sales tax would allow flood mitigation costs to be shared by visitors who use our roads and services.

Infrastructure improvements are critical to public safety and will leverage state and federal funds, which require local investment as a prerequisite.

The cities of Coralville and Iowa City have significantly reduced budgets and continue to identify reductions to avoid deficits due to the recession.

The Iowa City Area Chamber of Commerce is committed to monitoring the application of these funds and resulting improvements.

I welcome comments or concerns you may have about this and I thank you for your support of the Iowa City Area Chamber of Commerce.


  
In closing, I would like to suggest these various government bodies start thinking and working together out of respect for the people whose pockets they pick.

 
                                  "Ax The Tax"
                                       May 5   



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