Where's the Oversight on the 1% Local Option Sales Tax for Cedar Rapids?

Re: The March 3, 2009 Sales Tax Vote for the City of Cedar Rapids.

Today, we received the following cover letter ahead of a short one question e-mail survey on the 1% local option sales tax (LOST) for the City of Cedar Rapids from the Cedar Rapids Small Business Recovery Group.

The Cedar Rapids Small Business Recovery Group would like to take a
straw poll of flood affected businesses to gauge where the flood affected small
business community is on the Local Option Sales Tax issue:

Framework of the sales tax:

Rate of Tax: 1% Sunset Period: 5 years and 3 months (4/1/09-6/30/14)

Oversight Committee: A citizens committee will be formed to decide the
funding priorities and options for the money raised

Ballot Language: For the City of Cedar Rapids: 10% for Property Tax
Relief; and The specific purposes for which the revenues shall otherwise be
expended are: 90% for the acquisition and rehabilitation of flood damaged
housing caused by the flooding of 2008, and matching funds for federal flood
dollars to assist with flood recovery or flood protection.

We have supported the need for discussion of a 1% local option sales tax, ever since the change in the form of government. Property tax relief and infrastructure repairs and replacement were certainly needed prior to the Flood of 2008. The State of Iowa and the City of Cedar Rapids have an over reliance on property taxes. Right now, the City Manager and City Staff are recommending a 14.7% increase on property taxes for next year's budge. The City Council disagrees at this point on such a high increase.

But, here are our real problems with the 1% local option sales tax:

1. Ten percent isn't significant property tax relief for the City of Cedar Rapids, especially after 20 percent was discussed by our Mayor.
2. The Tax isn't defined as the Small Business Recovery Group's survey pointed out: "A citizens committee will be formed to decide the funding priorities and options for the money raised"
3. So, who is going to oversee the oversight committee?
4. We are concerned about inequities in the tax as it is defined on the ballot.

The local school SILO tax was specifically spelled out and there was a clear oversight committee to review the performance of the tax that it was going to the items laid out in the ballot language. Of course, the State of Iowa has decided to strip the local school tax and take it statewide permanently.

peace