000018279 001__ 18279 000018279 005__ 20210803101031.0 000018279 0247_ $$2doi$$a10.22004/ag.econ.18279 000018279 037__ $$a1042-2016-85260 000018279 041__ $$aeng 000018279 245__ $$aA PRELIMINARY ANALYSIS OF THE PROPOSED 1998 TAXPAYERS' RIGHTS AMENDMENTS TO THE IOWA CONSTITUTION AND FISCAL CONSEQUENCES ASSUMING IMPLEMENTATION FROM FY1984 TO PRESENT 000018279 260__ $$c1998 000018279 269__ $$a1998 000018279 270__ $$mx1edelma@exnet.iastate.edu$$pEdelman, Mark 000018279 300__ $$a12 000018279 336__ $$aWorking or Discussion Paper 000018279 490__ $$aStaff Paper 297 000018279 520__ $$aThis staff paper reviews the Senate (SSB2072) and House (HSB688) versions of a proposed 1998 Amendment to the Iowa Constitution and provides a preliminary analysis of the fiscal impacts on the state general fund receipts, general fund appropriations, and local property taxes assuming each proposal was implemented in FY 1984. While the year-to-year reductions in spending are relatively small, the cumulative fiscal impact of the SSB2072 would likely have resulted in (1) a FY1997 state general fund limit that allows 32 percent less spending than actual FY1997, (2) a $710 million reduction in the growth of state aid to local government, and (3) a 29.7 percent increase in property taxes, if property taxes were used to fully replace the reduction in growth of state aid to local governments. HSB688 excludes some measure of state aid applied to property tax relief from the TRA limit. However, the proposed Constitutional language for this exclusion appears to potentially contain ambiguous wording. One interpretation of HSB688 excludes only new state aid for property tax credits that "ensure" reduction in property taxes. Applying this definition to TRA implementation in FY1984 resulted in a FY1997 state general fund limit that allows 30.7 percent less spending than actual FY1997 and a $639 million reduction in the growth of state aid to local governments. In turn this would have required a 26.7 percent increase in property taxes to hold local government spending harmless from the reduction in growth of state aid to local governments. Alternatively, a second interpretation of HSB688 may provide a broader exclusion of state aid to local governments. If all new state aid to local government is excluded, the TRA would have resulted in a FY1997 state general fund limit that allows 15.7 percent less spending than actual FY1997. No reduction in the growth of state aid to local governments means no increase in local property taxes. However, the Constitutional tax and spending limitation effectively only covers half of the state general fund revenues. 000018279 546__ $$aEnglish 000018279 650__ $$aPublic Economics 000018279 6531_ $$aState tax limitations 000018279 6531_ $$atax limitations 000018279 6531_ $$arevenue limitations 000018279 6531_ $$aspending limitations. 000018279 700__ $$aEdelman, Mark A. 000018279 8564_ $$9df5cda74-e728-43a9-999e-5a09c80e309a$$s68245$$uhttps://ageconsearch.umn.edu/record/18279/files/isu297.pdf 000018279 887__ $$ahttp://purl.umn.edu/18279 000018279 909CO $$ooai:ageconsearch.umn.edu:18279$$pGLOBAL_SET 000018279 912__ $$nMade available in DSpace on 2007-03-07T23:39:07Z (GMT). No. of bitstreams: 1 isu297.pdf: 68245 bytes, checksum: a380bad3c943baae8691386254a39446 (MD5) Previous issue date: 1998 000018279 980__ $$a1042 000018279 982__ $$gIowa State University>Department of Economics>Staff Papers