Johnson County Dems to Oppose Sales Tax

Johnson County Dems to Oppose Sales Tax

(first posted at Iowa Independent)

The Johnson County Democrats voted unanimously Thursday night to oppose a local option sales tax under consideration by the Iowa City Council.

Iowa City alone decides to set the county-wide vote, as the city has over half of Johnson County's population.  At a work session this week, a majority of the council indicated support for  a sales tax depending on the use of the money, with emphasis on a fourth fire station and some discussion of property tax relief.

Council member Regenia Bailey, seeking re-election this year to her district C seat, is not in favor of the sales tax, and noted her opposition at the county party's monthly meeting.  Also stating his opposition was Mike Wright, who announced his at-large candidacy this week.

County Supervisor Rod Sullivan spoke for the party resolution.  He notes:

"Iowa City is making a political choice to keep property tax rates where they are.  The city is not at the top allowable levy rate, so if Iowa City felt the needs justified it, they could raise property taxes. They don't want to do that, because property owners call City Hall and raise hell. Renters and the poor do not. So economic justice does not matter in this equation.

The point is not which is worse, sales taxes or property taxes. The point is that both hurt the poor unfairly. We need to create a more fair system of taxation, and we need to do so creatively. Sales and property taxes are not the only two options available.

Are property taxes too high? Probably so. But we cannot and must not remedy that problem by increasing taxes on the poor."

Speaker Mike Carberry summed up the prevailing attitude: "We're against regressive taxes -- it's in the platform."

The Johnson County Democrats also opposed a sales tax vote in 1999.  That issue was defeated 74% to 26%.  However, the party endorsed the successful school infrastructure local option (SILO) measure in February.  At that time local activists cited concerns that the legislature would pass the tax on a statewide basis if the last two holdout counties -- Johnson and Linn -- did not approve the measure.  "Unlike the SILO, this penny will not be imposed by the State should we fail to support it," said Sullivan.

Formal Democratic Party action on an endorsement would occur at a later meeting if the measure is placed on the ballot.