Sign in to comment!

Menu
Home

Politics

Issues

Iowa scrambles to keep millions from tax that didn’t exist

For six years, Iowa has collected more than $20 million for a tax that didn’t exist.

When questioned about it, the Legislature adopted the solution preferred by small children who’ve done something wrong — they pretended it never happened.

In 2008, the Legislature passed a bill that accidentally included language repealing the section of the tax code that imposed a sales tax on heavy machinery purchased in the state. No one noticed until last summer, when a lawyer contacted the Iowa Department of Revenue seeking clarification about the tax.

Faced with the possibility of having to refund more than $20 million collected for a nonexistent tax, not to mention losing an estimated $7 million in taxes a year going forward, lawmakers passed a bill Thursday reinstating the tax and making it retroactive to the date of its accidental repeal.

The governor is expected to sign it.

Click for more from Watchdog.org. 

See the latest updates on the hottest midterm races from Fox News

Full Elections Coverage →

Keep up with all the 2014 races in

Coverage →