Dozens of environmentalists and hunters crowded into a committee room at the statehouse Tuesday to show support for a bill that would increase the state sales tax by three-eighths of a percent.
The extra 150-million dollars that would be raised each year would be deposited in a state trust fund for water quality and wildlife habitat projects, as well as parks and trails. Kristin Aschenbrenner is a policy coordinator for the Nature Conservancy, one of more than 85 groups that support the move.
“When we had our lobby day, I guess it was about a month ago, we had hundreds of Iowans up here, the halls were packed full of people trying to talk to their legislators,” Aschenbrenner says, “so I think that we’ve shown in multiple ways that Iowans really care about this.”
In 2010 Iowa voters passed a constitutional amendment that created the trust fund, but it remains empty until the state sales tax is raised.
“We know that Iowans overwhelmingly support funding the trust,” Aschenbrenner says. The constitutional amendment creating the Iowa Natural Resources and Outdoor Recreation Trust Fund passed with 63 percent of the vote in 2010.
“In recent polling, support for the creation of the trust has gone up to 81 percent,” Aschenbrenner says. “Sixty-six percent of Iowans would take a straight tax increase. That goes up to about 73 percent if you do it in some way that’s revenue neutral.”
The bill that cleared a senate subcommittee Tuesday would raise Iowa’s sales tax rate by three-eighths of a percent and put the extra money generated in the trust fund. Aschenbrenner suggests it’s a way to keep up with other states in the region.
Governor Branstad told Radio Iowa in January he’s not interested in raising the state sales tax for this purpose and key House Republicans have also expressed opposition to the idea.
A House committee, meanwhile, is considering a bill that would create a two-tiered state income tax system. It would give Iowans the option of choosing a so-called “flat tax” on their income. Republicans have proposed similar legislation in the past, but Democrats have opposed the move, saying it’s a significant tax cut for wealthy Iowans.
