School Infrastructure Local Option
Encyclopedia
The School Infrastructure Local Option (SILO) is a 1% local option sales tax
adopted on a county by county basis in Iowa
, United States
. Though the tax is collected by county, state mandate says the total amount collected is to be pooled and shared between the school districts. SILO was developed in 1998 by the Iowa General Assembly
to give school districts a revenue option other than property tax
. The tax can be enacted for up to 10 years at a time. As of late 2005, only Linn
and Johnson
counties in Iowa had not enacted a SILO tax. In the spring of 2006 the Iowa legislature encouraged the two remaining counties to join the other 97 counties which had enacted this tax by offering an incentive provided the tax was enacted by July 1, 2008, allowing the districts to keep 100% of the money generated for the first half of the time it is collected instead of pooling it statewide. A vote was scheduled in both counties for February 13, 2007 where it was approved, 58% to 42% in Linn County and 67% to 33% in Johnson County. The tax for both counties went into effect on July 1, 2007 for a period of 10 years, making it a statewide tax. Iowa currently has a 5% state sales tax rate in addition to the 1% SILO tax and any other Local Option Sales Taxes (LOST) which may be in effect in each county, often an additional 1%.
Sales tax
A sales tax is a tax, usually paid by the consumer at the point of purchase, itemized separately from the base price, for certain goods and services. The tax amount is usually calculated by applying a percentage rate to the taxable price of a sale....
adopted on a county by county basis in Iowa
Iowa
Iowa is a state located in the Midwestern United States, an area often referred to as the "American Heartland". It derives its name from the Ioway people, one of the many American Indian tribes that occupied the state at the time of European exploration. Iowa was a part of the French colony of New...
, United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
. Though the tax is collected by county, state mandate says the total amount collected is to be pooled and shared between the school districts. SILO was developed in 1998 by the Iowa General Assembly
Iowa General Assembly
The Iowa General Assembly is the legislative branch of the state government of Iowa. Like the federal United States Congress, the General Assembly is a bicameral body, composed of the upper house Iowa Senate and the lower Iowa House of Representatives respectively...
to give school districts a revenue option other than property tax
Property tax
A property tax is an ad valorem levy on the value of property that the owner is required to pay. The tax is levied by the governing authority of the jurisdiction in which the property is located; it may be paid to a national government, a federated state or a municipality...
. The tax can be enacted for up to 10 years at a time. As of late 2005, only Linn
Linn County, Iowa
-2010 census:The 2010 census recorded a population of 211,226 in the county, with a population density of . There were 92,251 housing units, of which 86,134 were occupied.-2000 census:...
and Johnson
Johnson County, Iowa
-2010 census:The 2010 census recorded a population of 130,882 in the county, with a population density of . There were 55,967 housing units, of which 52,715 were occupied.-2000 census:...
counties in Iowa had not enacted a SILO tax. In the spring of 2006 the Iowa legislature encouraged the two remaining counties to join the other 97 counties which had enacted this tax by offering an incentive provided the tax was enacted by July 1, 2008, allowing the districts to keep 100% of the money generated for the first half of the time it is collected instead of pooling it statewide. A vote was scheduled in both counties for February 13, 2007 where it was approved, 58% to 42% in Linn County and 67% to 33% in Johnson County. The tax for both counties went into effect on July 1, 2007 for a period of 10 years, making it a statewide tax. Iowa currently has a 5% state sales tax rate in addition to the 1% SILO tax and any other Local Option Sales Taxes (LOST) which may be in effect in each county, often an additional 1%.