Consumer Advisory: Tax Time Scams & Tips, January 2015

The Attorney General’s Consumer Protection Division receives hundreds of calls and consumer complaints every year. Follow these tips to avoid unexpected expense and disappointments. This record is about: Tax Time Scams & Tips

Issue review : impact on the insurance premium tax rate reduction .

In 2002, Senate File 2318, Insurance Premium Tax Reduction Act, the Iowa General Assembly approved a reduction in the insurance premium tax rate from 2 percent to 1 percent. The reduction was phased in at the rate of 1/4 percent annual increments over a five-year period, beginning with life and health insurance policy payments made on or after January 1st, 2003. Calendar year 2007 was the first year all premiums were taxed at 1 percent and fiscal year 2008 was the first full fiscal year at the 1 percent rate. Insurance premiums tax is paid only by insurance companies. The companies that benefit from the tax reduction are uniquely identified in government employment statistics. This allows for a unique opportunity to evaluate both the revenue impact and the employment impact of the tax rate reduction in Senate File 2318. This issue review focuses on the General Fund revenue impact of the rate reduction and the Iowa employment trends for the insurance industry since the rate reduction legislation was approved.

Issue review : streamlined sales and use tax agreement.

During the 2010 legislative session, Senate File 2375, or Streamlined Sales and Use Tax Administration Act, was approved by the general assembly. The act modified the Iowa sales use tax law to keep the state in compliance with the National Streamlines Sales and Use Tax Agreement. This issue review provides a brief update on the status of the agreement and its impact on Iowa.

Issue review : state and local tax revenue fiscal year 2001 to fiscal year 2010.

This issue review provides a historical perspective regarding state and local taxes collected each fiscal year in Iowa from fiscal year 2001 through fiscal year 2010. The issue review also compares the growth in state taxes versus local taxes as well as the growth in tax collections compared to the growth in Iowa personal income and Iowa employment.

Report on the Historic Preservation and Cultural and Entertainment District Tax Credit program administered by the State Historic Preservation Office within the State Historical Society of Iowa, a division of the Department of Cultural Affairs, for the period July 1, 2000 through June 30, 2013

Report on the Historic Preservation and Cultural and Entertainment District Tax Credit program administered by the State Historic Preservation Office within the State Historical Society of Iowa, a division of the Department of Cultural Affairs, for the period July 1, 2000 through June 30, 2013

Iowa Historic Property Study: Iowa-Illinois Memorial Bridge Carrying I-74 and U.S. 6 over Mississippi River between Bettendorf, Scott County, Iowa and Moline, Rock Island County, Illinois, 2012

The 1935 Iowa-Illinois Memorial Bridge is being documented at this time to fulfill the requirements of the Memorandum of Agreement regarding the removal of the Iowa-Illinois Memorial Bridge and the Iowana Farms Milk Company Building for the proposed improvements to Interstate 7 4 in Bettendorf, Iowa, and Moline, Illinois.1 The 1959 twin suspension bridge will be removed as well, but it was determined to be ineligible for the National Register of Historic Places. Discussion of the history of the 1959 twin span is included, however, in the current report as part of the overall history of the Iowa-Illinois Memorial Bridge. Fieldwork for the documentation occurred in November 2009 and October 2010 (Fig. 1). Limitations on photography included limited shoreline access on the Illinois side, making good views of the bridge from the south somewhat challenging. Also, photographs on the bridge deck were not possible because of interstate traffic and prohibitions on pedestrian traffic. Within the last few years, online primary sources have proliferated, along with historical materials regarding the Iowa-Illinois Memorial Bridge. Sources available online for this report included numerous historical photographs, as well as historical Davenport, Iowa, and U.S. newspapers that document the bridge planning and construction. Additional primary source material was found at the University of Iowa Libraries, the State Historical Society of Iowa in Iowa City, the Bettendorf Public Library, the Richardson-Sloane Special Collections Center at the Davenport Public Library, and the Iowa State University Special Collections in Ames.

Iowa Historic Property Study: Iowana Farms Milk Company, 1416 State Street, City of Bettendorf, Scott County, Iowa, 2012

The Iowana Farms Milk Company factory building was considered to retain sufficient integrity and possess sufficient significance to be considered eligible for the National Register of Historic Places under Criteria A and C for its historical and architectural significance in the Bettendorf community. The Iowana Farms Milk Company was an important early to mid-twentieth-century business in Bettendorf, and was among the few that was not owned or operated by the Bettendorf Company. It was a strong and thriving business for many years, and its products were well known in the Quad Cities region. The importance of this property becomes even more significant when one considers that most of the buildings once associated with the actual Bettendorf Company, which was undeniably the most important business and industry in town, are now gone. As a result, the Iowana Farms Milk Company factory building was a physical vestige of the once-thriving commercial industries that made Bettendorf into a city in the twentieth century. This property was further significant for its representation of the evolution of the dairy industry in the twentieth century from farm to factory production. It also reflected the changes to the industry based on scientific discoveries, mechanical innovations, and governmental regulations related to improved sanitation and the pure milk movement. The Iowana Farms Milk Company represented a model plant for the time, and the marketing strategies it employed followed the trends of the industry. The Iowana Farms Milk Company plant had to be removed to make room for a new I-74 bridge over the Mississippi River at Bettendorf. The construction of the new bridge also required removal of the historic Iowa-Illinois Memorial Bridge. The documentation reported herein and for that of the Iowa-Illinois Memorial Bridge fulfills the requirements of the Memorandum of Agreement regarding the removal of these historic properties.

Issue review : impact of federal income tax changes on Iowa general fund revenue.

Iowa law allows taxpayers to deduct federal income taxes from income prior to calculating state income tax liability. Due to the federal tax deduction, changes to federal income taxes enacted by Congress directly and automatically impact Iowa's revenue stream. While this issue is present every year, the impact on the budget process has been more pronounced over the past three years as federal tax reductions enacted during the early 2000s were set to expire, were extended, and are now set to expire again. This issue review examines federal deductability and the related issue of federal conformity.

Taxing Sweets: Sweetener Input Tax or Final Consumption Tax?

In order to reduce obesity and associated costs, policymakers are considering various policies, including taxes, to change consumers high-calorie consumption habits. We investigate two tax policies aimed at reducing added sweetener consumption. Both a consumption tax on sweet goods and a sweetener input tax can reach the same policy target of reducing added sweetener consumption. Both tax instruments are regressive, but the associated surplus losses are limited. The tax on sweetener inputs targets sweeteners directly and causes about five times less surplus loss than the final consumption tax. Previous analyses have overlooked this important point.

Health consultation : Contamination of sump within residential property, Carroll County, Iowa (2007)

The Iowa Department of Natural Resources (IDNR) has been involved in an investigation surrounding the appearance of an unknown oil within the sump in the basement of a residence in Carroll, Iowa. The IDNR has requested the Iowa Department of Public Health (IDPH) to prepare a health consultation regarding their investigation. The IDPH, in cooperation with the Agency for Toxic Substances and Disease Registry (ATSDR), prepared this health consultation to review the current status of the IDNR investigation and to provide an evaluation of the public health implications of exposure to the unknown oil within the sump. The information in this health consultation was current at the time of writing. Data that emerges later could alter this document’s conclusions and recommendations.

Road Use Tax Fund Efficiency Report savings status, December 31, 2015

Senate File 2355, 85th General Assembly, states the Iowa Department of Transportation shall submit annual reports regarding the implementation of efficiency measures identified in the “Road Use Tax Fund Efficiency Report,” January 2012. This report shall provide details of activities undertaken in the previous year relating to one-time and long-term program efficiencies and partnership efficiencies. Issues to be covered in the reports shall include but are not limited to savings realized from the implementation of particular efficiency measures; updates concerning measures that have not been implemented; efforts involving cities, counties, other jurisdictions, or stakeholder interest groups; any new efficiency measures identified or undertaken; and identification of any legislative action that may be required to achieve efficiencies.