The Iowa House of Representatives should definitely not pass HF 230 – to extend the school infrastructure sales tax for another 21 years – to 2050!
In 1998, we were told that the 1% local option tax for school infrastructure would be temporary – for 10 years. In 2008 the temporary tax was changed from a local option to a state-wide sales tax, and was extended for another 22 years – to expire in 2029. Even though we still have 12 years left of the tax, school districts are pressuring the legislature to extend the tax for an additional 21 years!
Why would they want to do this? Because years ago, they borrowed against the future taxes and have already spent the taxes that will be collected during the remaining 12 years. If the tax is extended again, you can bet that some school districts will again quickly borrow against the future taxes and spend the money decades before the taxes are collected.
Do we really need this much money for school infrastructure. Some school districts might need the money, but it appears that many school districts are flush with money and already have excellent facilities. We really should wait until 2029, then allow local school districts have their own local option tax if the local taxpayers believe there is still a need.
Libertarian Perspectives 