February 2021

Special Election on Revenue Purpose Statement

Alburnett CSD will be holding a Special Election on March 2. The ballot question is to renew our Revenue Purpose Statement for the use of one-cent sales tax revenue, officially known as State Secure and Advanced Vision for Education Fund (SAVE). You might also know it as LOST or SILO from previous conversations. The important point is that we have to each understand what it is and what it is not.

It IS revenue from the one-cent sales tax that each of us pays whenever we shop anywhere or online in the state of Iowa, and it IS to be used for school infrastructure.

It IS NOT property tax or income surtax, and it IS NOT new.

Quick History

For many years we have all paid an additional penny whenever we purchased a taxable item. At first the penny only went back to the county where we spent our money. So when we traveled outside our district and shopped in other communities, those communities kept our tax dollars. Now everyone’s penny goes into a state-wide pool and is distributed equally per student across the state. Every school across the state receives this sales tax revenue based on student count and for the purpose of maintaining school infrastructure. It cannot be used to operate the district. It is only for infrastructure.

In 2008, the “local option” sales tax was converted to the “state-wide penny.” Up until that time, it was up to each county to approve the tax and the language about how funds could be used. This language about how to use the revenue is called a Revenue Purpose Statement. When Alburnett participated in the Linn County election in 2007, we established a Revenue Purpose Statement that was good for 10 years. We renewed this language by another election in 2015.

Why are we voting again?

When the local option sales tax was replaced legislatively with the statewide one-cent sales tax in 2008, the law also extended the expiration date to 2029. Districts held elections to align their Revenue Purpose Statements with this new 2029 sunset.

In 2019, SAVE was extended once again to 2051. Districts once again need to align their Revenue Purpose Statements with the newest sunset of 2051.

What changes?

Nothing really. The proposed Revenue Purpose Statement on the ballot continues the possible uses of the sales tax revenue.