Iowa tries to keep millions from tax that doesn’t exist

File this under actions taken by lawmakers that do not surprise me. From Watchdog.org

For six years, the state has collected more than $20 million for a tax that didn’t exist.

When questioned about it, the Legislature adopted the solution preferred by small children who’ve done something wrong — they pretended it never happened.

In 2008, the Legislature passed a bill that accidentally included language repealing the section of the tax code that imposed a sales tax on heavy machinery purchased in the state. No one noticed until last summer, when a lawyer contacted the Iowa Department of Revenue seeking clarification about the tax.

Faced with the possibility of having to refund more than $20 million collected for a nonexistent tax, not to mention losing an estimated $7 million in taxes a year going forward, lawmakers passed a bill Thursday reinstating the tax and making it retroactive to the date of its accidental repeal.

The governor is expected to sign it.