Iowa’s Economy Recovering

State tax revenue up in Iowa

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KIMT NEWS 3 – It’s quiet along the assembly line at Winnebago Industries, but looks can be deceiving.

Many of the employees are off for the holiday week, and it’s a well deserved break says Vice President of Sales and Products Scott Degnan.

He says business has been running full throttle.

“Sales are doing well, we’re profitable.  We just released our earnings for last quarter and they were phenomenal every one of our business units is growing,” said Degnan.

He tells us that wasn’t the case just years ago.

“2008, 2009 we hit and the industry goes from about 70,000 units to a little of 10,000 units. I mean from 70 to 10 was a huge drop and we’re slowly been coming back,” said Degnan.

And the state’s tax collection growth number is showing that with nearly nine percent in state tax revenue.

A senior analyst for the Legislative Services Agency in Iowa says that when numbers are up like this, it means the economy is doing quite well.

Lou Ann Murhpy, owner of a tax and business planning company in Osage, agrees.

“It’s a pretty low unemployment rate that means people are working and when people are working they pay taxes that the way it works,” said Murhpy.

Murphy says the farming industry has helped with that growth in the state especially the farmers themselves.

“In December most of the farmers did not know what the tax rates were going to be in 2013 so they purposely brought extra income in case the tax rates went up,” said Murphy.

In the end, Murphy says this boom in growth is all around good news for businesses like Winnebago and Iowans themselves.

“That means that Iowa has more money to spend on services. It also means that they’re more likely to mean tax cuts in other ways that keep talking about property tax relief this gives them money to do that,” said Murphy.

Meanwhile, we’re told that Winnebago industries are actually back logged well over 100-percent over the past year.

Some believe this “boom” in tax collection growth may just be a one time boost.

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