Residents will vote on sales tax
February 14, 2000
Story County residents will head to the polls Tuesday to decide the fate of a proposed 1 percent increase in sales tax.
The proposed additional revenue, which needs the support of a simple majority to pass, would be used to improve the conditions of school buildings in the county. Polk County residents have already passed a similar resolution to upgrade their school facilities.
The referendum would increase the sales tax in Ames to 7 percent and would be applicable for 10 years. Food, prescription medicine, hospital services, gasoline, automobiles, seed, feed, farm equipment and hotels will be exempt from the tax.
Ames Chamber of Commerce President Allen Weber said the chamber decided to support the increase because of the importance of education.
“It’s something I think people in Ames should embrace because it’s a way of funding schools without having to raise property taxes,” Weber said. “It’s important for the business community to voice an opinion on something that has such an impact on the people of Ames.”
As a father of two elementary-age children, Weber said the additional revenue is important for maintaining high standards in the school district.
“The school system has always been something the people feel very good about. Schools are very important to the living environment,” he said. “I’m sure when ISU recruits people, they brag about the school district in Ames.”
The Ames Community School District is planning to use the money generated by the tax to finance the construction of a new middle school and an addition on the high school. Studies done by the district have shown a need for an additional 88,107 square feet of space for high-school and middle-school students.
State law prohibits the use of the revenue for anything other than improvements to school infrastructure.
Ken Stone, professor of economics, recently conducted a study that estimated the revenue from the proposed tax increase to be $86 million during 10 years. He also estimated that Story County residents, including ISU students, would pay $67 million of the tax burden.
Some ISU students are opposed to the referendum. At their Feb. 2 meeting, Government of the Student Body senators passed a resolution stating they did not support the tax increase.
Steve Skutnik, LAS, was one of the 31 senators to vote in favor of the resolution. He said he is against the proposed tax increase because of the way in which the revenue will be used.
“I don’t mind paying taxes to help the city of Ames as a whole,” said Skutnik, sophomore in physics. “I don’t feel obligated because Ames hasn’t shown that it feels obligated to any of the students who are here nine months out of the year.”
Skutnik said he also has concerns with the way in which the money will be raised.
“A sales tax is like a blank check,” he said. “They have a nasty habit of never going away.”
Not all GSB senators shared Skutnik’s view, though. Matt Ostanik, Interfraternity Council, said he voted against the bill because he believes Iowa State is part of the Ames community.
“I don’t think we should always be looking for things that just personally benefit us,” said Ostanik, senior in architecture. “We need to be willing to help out with the community more.”
Wade Demmer, Richardson Court Association, said he also voted against the GSB bill.
Demmer, junior in computer engineering, said although he is against increasing the sales tax in principle, he supports the increase because he believes Story County schools need the money.
“If the money is going to be spent on something beneficial, then I don’t have a problem with it,” Demmer said.