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Iowa lawmakers eye ending recreation trust fund in favor of one for property tax relief

cigaretteman

HB King
May 29, 2001
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Lawmakers are considering replacing a voter-enacted taxpayer trust fund dedicated to outdoor recreation and conservation with one focused on property tax relief.

The Senate State Government Subcommittee advanced Senate Joint Resolution 6 Wednesday, which would initiate the process of passing a constitutional amendment to replace the Natural Resource and Outdoor Recreation Trust Fund first established in 2010.
The trust fund has sat empty for nearly 15 years since voters approved the measure with 63% of the vote. Funds would only be allocated to the trust fund if lawmakers approved a sales tax increase, which they haven’t done since 2008.

If funded, money from the trust fund would go towards projects such as improving soil, water and air quality and increasing outdoor recreational opportunities.


Under the proposed legislation, 0.375% of increased sales taxes would instead go towards property tax relief.

If the resolution is successful, it would need to be approved by lawmakers after the 2026 elections in the 2027 or 2028 sessions, and then could go before voters in 2028.
While at least 17 Senate Republicans who co-sponsored the resolution made it clear they want to shuttle the resolution through the chamber, it may face an uphill battle in the House.

Rep. Mike Sexton, a Republican from Rockwell City who chairs the House Agriculture Committee, expresses skepticism about the proposal, suggesting it is not the right approach for property tax reduction.
Sexton told The Gazette he was caught off guard by the issue and questioned whether it would pass the Senate. He said he has no desire to pursue this legislation as chair of the House Agriculture Committee.

 
I support measures to reduce property tax. It's out of control.
I’d agree. Especially as they seem to disproportionally impact certain payers like farms and business. I don’t like this method of relief, shifting it to sales tax. I’d prefer shifting it to income tax.

What we will get instead are caps on property tax with no ways for local government to make up that income.
 
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