This past summer governor Culver demanded, in an unprecedented move, that the Iowa Department of Revenue hold off on its tax collection efforts and have the state legislature go back and re-examine the tax fiasco it created that required flood victims and other taxpayers to pay increased state taxes because the Iowa Democrats refused to couple with the federal tax code last year.
The Department of Revenue has stated that those who took the tax deductions for flood related expenses must pay it back if legislative action is not taken. This summer, the governor issued the following statement:
“the last thing our state tax laws should do is burden those who were victims of the last year’s historic floods and storms, and the issue of adopting federal law changes to Iowa should be addressed” …… “Therefore I am taking two steps. First, I have directed the Department of Revenue to provide me with any and all options that may be implemented by executive action this calendar year. Second, I will be speaking with legislative leaders, from both sides of the political aisle, to address this issue in 2010 the same bipartisanship approach that we gave to other disaster-related legislation.”
Well, we are 4-weeks away from the end of legislative session and this topic has not been brought up! So, do these disaster victims have to pay this money back? If no action is taken they will have to pay it back, AND, pay penalty and interest because the Democrats refused to be sympathetic to the flood victims.
This year it seems disaster victims will have two tax seasons. April 15th they will pay 2009 taxes and again this summer when they get an assessment notice that states that they owe for taxes, interest, and penalties for their 2008 taxes because their legislature decided not to act on their behalf!
Governor Culver had the right idea!! However, it seems his party is not only letting him down but also letting down those who have been inflicted by this massive disaster.