House Joint Resolution 5 - Introduced HOUSE JOINT RESOLUTION 5 BY ISENHART HOUSE JOINT RESOLUTION A Joint Resolution proposing an amendment to the Constitution 1 of the State of Iowa relating to the funding of the natural 2 resources and outdoor recreation trust fund. 3 BE IT RESOLVED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1336HH (2) 87 mm/sc
H.J.R. 5 Section 1. The following amendment to the Constitution of 1 the State of Iowa is proposed: 2 Section 10 of Article VII of the Constitution of the State of 3 Iowa is amended to read as follows: 4 Natural resources. SEC. 10. A natural resources and outdoor 5 recreation trust fund is created within the treasury for the 6 purposes of protecting and enhancing water quality and natural 7 areas in this state including parks, trails, and fish and 8 wildlife habitat, and conserving agricultural soils in this 9 state. Moneys in the fund shall be exclusively appropriated by 10 law for these purposes. 11 The general assembly shall provide by law for the 12 implementation of this section, including by providing for the 13 administration of the fund and at least annual audits of the 14 fund. 15 Except as otherwise provided in this section, the amount 16 generated by a sales tax rate of three-eighths of one percent 17 as may be imposed upon the retail sales price of tangible 18 personal property and the furnishing of enumerated services 19 sold in this state. 20 No revenue shall be credited to the fund until the tax 21 rate for the sales tax imposed upon the retail sales price of 22 tangible personal property and the furnishing of enumerated 23 services sold in this state in effect on the effective date of 24 this section is increased. After such an increased tax rate 25 becomes effective, an amount equal to the amount generated by 26 the increase in the tax rate shall be annually credited to the 27 fund, not to exceed an amount equal to the amount generated 28 by a tax rate of three-eighths of one percent imposed upon 29 the retail sales price of tangible personal property and the 30 furnishing of enumerated services sold in this state. 31 The fund shall be annually credited with an amount equal to 32 three-fortieths of the tax revenues generated and collected 33 from the tax imposed by the state upon the retail sales price 34 of tangible personal property and the furnishing of enumerated 35 -1- LSB 1336HH (2) 87 mm/sc 1/ 3
H.J.R. 5 services sold in this state that remain after any transfers 1 of such tax revenues required by law of this state in effect 2 on the date of ratification of this amendment to local school 3 districts to be used solely for school infrastructure purposes 4 or school district property tax relief. 5 Sec. 2. REFERRAL AND PUBLICATION. The foregoing proposed 6 amendment to the Constitution of the State of Iowa is referred 7 to the general assembly to be chosen at the next general 8 election for members of the general assembly, and the secretary 9 of state is directed to cause the proposed amendment to be 10 published for three consecutive months previous to the date of 11 that election as provided by law. 12 EXPLANATION 13 The inclusion of this explanation does not constitute agreement with 14 the explanation’s substance by the members of the general assembly. 15 This joint resolution proposes an amendment to the 16 Constitution of the State of Iowa relating to the funding of 17 the natural resources and outdoor recreation trust fund. 18 A previous amendment to the Iowa Constitution ratified on 19 November 2, 2010, created the natural resources and outdoor 20 recreation trust fund (fund) and dedicated a portion of 21 state tax revenues to the fund for the purposes of protecting 22 and enhancing water quality and natural areas in the state 23 including parks, trails, and fish and wildlife habitat, and 24 conserving agricultural soils in the state. Pursuant to the 25 constitutional amendment, the amount credited to the fund 26 will be equal to the amount generated by an increase in the 27 state sales tax rate occurring after the effective date of the 28 constitutional amendment, but shall not exceed the amount that 29 a state sales tax rate of 0.375 percent would generate. The 30 state sales tax rate has not been increased since the effective 31 date of the constitutional amendment, so no amounts have been 32 credited to the fund. 33 The joint resolution would strike the language dedicating 34 to the fund a portion of the state tax revenues generated by 35 -2- LSB 1336HH (2) 87 mm/sc 2/ 3
H.J.R. 5 an increase in the state sales tax rate and replace it with 1 the requirement that the fund be credited with 3/40 of the 2 state sales tax revenues that remain after any transfers of 3 such state tax revenues required by law of this state in effect 4 on the date of ratification of the amendment to local school 5 districts to be used solely for school infrastructure purposes 6 or school district property tax relief. In other words, 3/40 7 of the state sales tax revenues remaining after the transfers 8 required to be made to the secure an advanced vision for 9 education (SAVE) fund under Code chapter 423F (statewide school 10 infrastructure funding), shall be credited to the fund. 11 The joint resolution, if adopted, would be published and 12 then referred to the next general assembly (Eighty-eighth) 13 for adoption a second time, before being submitted to the 14 electorate for ratification. 15 -3- LSB 1336HH (2) 87 mm/sc 3/ 3