Des Moines Register
12-13-06
July vote on sales tax planned
Proposal would decrease property taxes
By JASON CLAYWORTH
REGISTER STAFF WRITER
Residents in Polk, Dallas and Warren counties are expected to vote next summer
on a sales-tax increase that was pulled from the November ballot because of
concerns about public distrust caused by the CIETC salary scandal.
Supporters say the 10-year tax increase is designed to generate $750 million,
which would be used to lower property taxes in 45 cities and support Des
Moines-area cultural attractions such as Urbandale's Living History Farms and
Polk County's Wells Fargo Arena.
The revived plan, known as Project Destiny, was unveiled Tuesday to the Metro
Advisory Council, made up of leaders from 18 city governments in Central Iowa.
The new tax, if approved on July 10, would take effect Jan. 1, 2008. One-third of
the proceeds would be used to reduce individual property tax bills, while another
third would be directed to city budgets and, theoretically, could lower property
taxes further. The rest, roughly $25.5 million, would be spent on trails, museums
and other cultural facilities by a 15-member appointed panel called the TriCounty Regional Authority. That group would have representatives from each of
the three counties.
The plan is primarily the work of the Greater Des Moines Partnership, a business
development group that since 2003 has pushed for tax increases to finance
quality of life initiatives it says will attract and retain workers.
Plan and date changes
The sales-tax proposal was scheduled for a vote last month. However,
supporters worried that fallout from the Central Iowa Employment and Training
Consortium, where executives were paid exorbitant salaries and bonuses with
public money, would sour any chance of passage, so the vote was postponed.
"We have a better plan, a new date and new accountability," said Marty Glanz,
the mayor of De Soto, who will help lead the effort.
Indianola Mayor Jerry Kelley, a member of the advisory council, said supporters
used the extra time to add accountability measures:
- Taxpayers would see the property tax reduction on their tax bills.
- The regional authority would report annually how its share of the money was
spent.
- Each community would be required to conduct an annual public meeting to
provide a full report on what it did with its share of the proceeds.
"There is a certain amount of cynicism left over from CIETC, like, 'Geez, what do
you people do with public money?' " Kelley said. "This builds in public meetings.
Every salary and expense will be published. Everyone can be the accountant."
Des Moines' property tax rate would drop by about $1.85 per $1,000 of taxable
value, according to an estimate from Allen McKinley of the city's finance
department. After various tax breaks are factored in, the owner of a $100,000
home would save about $84 a year.
The savings, however, would be offset by the $160 that same person would pay
in higher sales taxes, according to Mike Lipsman of the Iowa Department of
Revenue and Finance.
The vote also would not freeze property assessments, which have climbed
steadily for most homeowners, or prevent cities from increasing their property tax
rates.
Critic questions timing
Supporters dismissed accusations that the new date, July 10, was chosen to
ensure a low voter turnout and increase the likelihood of passage.
Paul Coates, director of Iowa State University's Office of State and Local
Government Programs, said many voters are not focused on elections in
summer months, but that doesn't mean the timing will help advocates of the sales
tax.
"Intensity tends to win out in those kinds of votes," Coates said. "Where you
might win is when there's no real intense opposition."
Windsor Heights resident Richard Christie has already started an Internet site to
oppose the tax increase.
"My biggest opposition to any tax increase is they're using it to help the people
who have the money and hurt the people who don't," Christie said.
Organizers say Living History Farms, Wells Fargo Arena and the financially ailing
Des Moines Botanical Center, for example, should enjoy wider financial support
because they draw visitors from outside their home cities. Lower property taxes,
they say, would make the area more attractive to prospective employers and
newcomers.
Of the $25.5 million that would be pumped into the regional authority, $6.4 million
would be funneled to organizations that work with science, art and historic
preservation.
Christie questions what would happen if one of the organizations used the money
to, for example, paint a religious mural that offends some of the people who paid
for it. He believes taxpayer money should be spent only for basic services such
as fire protection.
"I'm perfectly happy with people in the arts receiving support from the public, but
I'm not for tax money for that," Christie said.
Some can opt out
Residents of noncontiguous areas will be able to vote against the plan and opt
out. Bondurant, for example, would not pay or receive any of the money if the
majority of its residents vote no.
Des Moines, West Des Moines, Clive and Urbandale are in a contiguous block. If
Clive rejects the tax, for example, but Des Moines and West Des Moines pass it,
Clive businesses will be required to collect the higher tax, which would be in
place for 10 years. At that time, voters could be asked to approve an extension.
Ruth Randleman, chairwoman of the sales tax effort and Carlisle's mayor, said
the tax increase would help move the metro area toward more regional
cooperation.
"It's a vision thing," she said. "We are positioning ourselves to compete on the
global market, and this is how we're going to do that."
Reporter Jason Clayworth can be reached at (515) 699-7058 or jclayworth@dmr