(Radio 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 helps pay for school improvements that would otherwise be paid for with a hike in local property taxes.
“This is important,” Sinclair said. “This is important particularly for rural schools that don’t have growing student populations to help off-set the costs of the facilities.” 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.
“Our public school buildings are paid for with taxpayer money and we have an obligation to maintain them,” Cournoyer said, “…so we can prepare our students to compete in the global workforce and continue to grow our Iowa economy.” 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.
“Our school board officials out there, who do not get paid for these jobs, who do the best that they can to try to plan forward for what the needs are for not tomorrow, but 10 years, 20 years when they’re looking at having to replace buildings, upgrade buildings,” Dawson said.
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 today (Thursday) 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.
“Both are priorities for my constituents,” Bossman says. “It’s a win-win.” Critics say the plan siphons off too much revenue for property tax relief, money that’s needed for school construction and renovation projects. “Like others, I am going to hold my nose and vote yes on this bill.” 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.
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