Entries Tagged 'Vehicle Sales Tax' ↓

Road repairs and transportation projects would get a boosted infusion of state cash each year, growing to more than $350 million within seven years, under bills approved Wednesday by the House and Senate.

The measures — approved unanimously in each chamber — would redirect the state sales tax on vehicles to road and bridge construction and port improvements, steering the money away from the general fund where it pays for regular state expenses.  The redirection would be phased in over seven years, with $42 million redirected to transportation in the fiscal year beginning July 1. By full phasein, in the fiscal year beginning July 1, 2014, an estimated $350 million-plus more each year would be spent on road repairs and transportation projects.

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Proposed legislation that would convert existing School Infrastructure Local Option (SILO) 1- cent sales taxes in each of Iowa’s 99 counties into a 1-cent state sales tax raises questions of how this change would affect low-income Iowans and the overall health of the Iowa tax system. The proposal increases funding for school district infrastructure needs by removing a current per-pupil cap on the distribution of pooled funding, as well as by collecting taxes on out-of state purchases and the sale of motor vehicles, neither of which are currently subject to the SILO tax.

According to an analysis by the Legislative Services Agency, a switch to a statewide sales tax would generate $400.3 million in FY 2009 for school infrastructure funding, which is $28 million more than the current SILO system would generate. A 1-cent increase in the motor vehicle use tax — proposed by some for this legislation — would generate an additional $53 million for road uses.

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Motorists in metro Atlanta aren’t just venting about the nation’s second worst commute. They’re willing to pay more at the cash register for buses and trains that could help alleviate it, according to an 11-county survey released today.

Asked if they would support a 1 percent sales tax to fund a specific lists of transportation projects, including rail and bus service, 58 percent of respondents said ‘yes.’ That support held across the region, from inner counties such as DeKalb and Fulton to the suburbs of Henry and Fayette, the survey found. And it cut across gender, race, age and income level as well.

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For the third year, the state is trying to offer a tax credit to residents buying a vehicle (car, truck, van, motorcycle) that is made in Missouri. Tax credit is equal to sales tax. The bill has passed in the House, but been defeated in the Senate for the past two years.

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