Statewide Iowa — The Iowa legislature has voted to keep charging the one-percent sales tax that’s been used for school infrastructure until 2051. The bill directs 30 percent of the sales tax money that’s raised to property tax relief.
Republican Senator Amy Sinclair of Allerton says the other 70 percent of the sales taxes raised will help pay for school improvements that would otherwise be paid for with a hike in local property taxes.
The statewide sales tax for schools was set to expire in 2029. Republican Senator Chris Cournoyer, a former school board member from LeClaire, says she has “a stack” of reasons her district needs this extra sales tax money long into the future.
Senator Dan Dawson, a Republican from Council Bluffs, says this means schools will be able to use the sales tax money as collateral to finance long-term construction projects.
The bill also clarifies that the sales taxes raised for school infrastructure can be used to enhance school safety and security. It cleared the Iowa Senate Wednesday on a 48-to-two vote. The House vote was 94-to-four. Representative Jacob Bossman, a Republican from Sioux City, says the bill simultaneously addresses school infrastructure needs AND provides an estimated 325 million in property tax relief each year.
Critics say the plan siphons off too much revenue for property tax relief, money that’s needed for school construction and renovation projects.
That’s Representative Mary Erin Donahue, a Democrat from Cedar Rapids, who is a teacher. The bill, which now goes to the governor, has been a priority for education groups.
