Linn-Mar Community School District

The School Infrastructure Local Option tax (SILO) was developed by the Iowa Legislature in the 1990s to give school districts a revenue producing alternative to property taxes. It is a one cent sales tax collected on non-exempt sales and services. SILO is approved and collected on a county-wide basis. A simple majority (50% plus one vote) is required for passage.

What is it used for?
• Property tax relief

• Buildings, infrastructure and property purchases

• Technology and equipment
SILO revenue cannot be used for salaries or day-to-day operating expenses.

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Which counties have SILO?

99 of 99 Iowa counties currently have SILO.

Is this property tax?

NO. This is not a property tax. It is a tax on some retail sales and services. It would be paid by everyone who purchases applicable products and services in Linn County.

What goods/services are exempt?

A list of goods and services exempt from the sales tax can be found in Iowa Code, Section 423.3 and include the following:

Unprepared food & prescription drugs
Motor vehicle sales & fuel
Farm equipment, fertilizer, feed and seed
Non-profit hospital services
Resale items
Hotel or motel room rental if a hotel/motel tax is assessed
Residential utilities if a franchise tax or user fee is already assessed

None of these items are taxed by the School Infrastructure Local Option Sales Tax.

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How is Linn-Mar using SILO money?

Bowman Woods

HVAC system upgrades, windows, doors, space utilization renovation (cafeteria, classrooms).

Indian Creek

HVAC system upgrades, space utilization renovation, possible addition.

Wilkins

HVAC system upgrades, space utilization renovation.

Westfield

HVAC system upgrades, possible addition.

Novak

Continued space utilization, renovation, completing bond referendum projects.

Oak Ridge

Addition to Oak Ridge when it becomes a middle school only, additional fields and facilities for extracurricular activities, relocation of various varsity fields.

Excelsior Middle School

HVAC system upgrades, kitchen redesign, grounds and fields.

High School

Additional upgrading and modernization of areas not covered in the referendum which were constructed prior to 1995.

District
Relocation and replacement of buildings, fields, athletic facilities; purchase of property.

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How has Linn-Mar designated use of SILO funds?

Linn County has some of the oldest but best maintained school buildings in the state. However, regular upgrades for infrastructure and technology are required to maintain and improve these schools to compete both in our state and in a global economy. Linn-Mar’s enrollment has increased by 1500 students during the previous 6 years. In January of 2006, a $27.5 million bond referendum was passed to build two new elementary schools, add on to the High School and renovate Novak Elementary School. September 2006 enrollment increased by another 427 students. While new schools provide additional classrooms to meet growth needs, the older schools continue to need renovations and upgrades in HVAC systems, security, and space as well as technology replacement. Over the 10 year period, the SILO revenue would be utilized for:

approximately $10 million in property tax relief to offset the increase from the 2006 bond referendum
approximately $31 million for infrastructure, including upgrades and renovations at all the district schools; additions as needed; and other building and property needs, including additional fields for extra-curricular activities and relocation of various varsity fields.
approximately $5 million for technology upgrades and replacement across the District in all of the schools

3333 North Tenth Street. Marion, IA 52302-5499
Phone 319.447.3000 Contact Us