SJR 6 (LSB 1901XS (2) 91)

SENATE JOINT RESOLUTION 6

BY  COSTELLO, GRUENHAGEN, CAMPBELL, ALONS, SHIPLEY, SWEENEY, WEBSTER, EVANS, BOUSSELOT, GUTH, WESTRICH, KLIMESH, LOFGREN, GREEN, REICHMAN, DICKEY, and PIKE

SENATE JOINT RESOLUTION

A Joint Resolution proposing an amendment to the Constitution of the State of Iowa by repealing the natural resources and outdoor recreation trust fund, and dedicating a portion of state revenue from sales and use taxes imposed for the benefit of property tax relief.

BE IT RESOLVED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  The following amendment to the Constitution of the State of Iowa is proposed:
   Section 10 of Article VII of the Constitution of the State of Iowa is repealed January 1 immediately following ratification and the following adopted in lieu thereof:
   Sec. 10.  Property tax relief.  A property tax relief trust fund is created within the treasury for the purposes of replacing revenue generated from the foundation property tax levy or any other succeeding property tax levy imposed in lieu thereof that provides funding for elementary and secondary education in each school district in the state. Moneys in the fund shall be exclusively appropriated by law to lower the foundation property tax levy rate on an equal basis across school districts or similarly lower any succeeding property tax levy rate. The amount allocated annually from the trust fund shall be considered property taxes and shall be treated as if received from the foundation property tax levy or any succeeding property tax levy and the foundation property tax levy or succeeding property tax levy rate shall be reduced accordingly.
   No revenue shall be credited to the fund until the tax rate for the sales and use tax imposed upon the retail sales price of tangible personal property, specified digital products, and the furnishing of enumerated services sold or used in this state in effect on the effective date of this section is increased. After such an increased tax rate becomes effective, an amount equal to the amount generated by the increase in the tax rate shall be annually credited to the fund, not to exceed an amount equal to the amount generated by a tax rate of three-eighths of one percent imposed upon the retail sales price of tangible personal property, specified digital products, and the furnishing of enumerated services sold or used in this state.
    Sec. 2.
  REFERRAL AND PUBLICATION.
  The foregoing proposed amendment to the Constitution of the State of Iowa is referred to the general assembly to be chosen at the next general election for members of the general assembly, and shall be published as provided by law for three months previous to the date of that election.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This joint resolution proposes an amendment to the Constitution of the State of Iowa by repealing the natural resources and outdoor recreation trust fund, and dedicating a portion of state revenue from sales and use taxes for the benefit of property tax relief.
   The resolution creates a property tax relief trust fund (fund) within the treasury for the purposes of replacing revenue generated from the foundation property tax levy or succeeding property tax levy imposed in lieu thereof that provides funding for elementary and secondary education in each school district in the state. Moneys in the fund shall be exclusively appropriated by law to lower the foundation property tax levy rate on an equal basis across school districts or similarly lower any succeeding property tax levy rate. The amount allocated annually from the trust fund shall be considered property taxes and shall be treated as if received from the foundation property tax levy.
   The funding mechanisms of the property tax relief trust fund are similar to the natural resources outdoor recreation trust fund.
   No revenue shall be credited to the fund until the sales and use tax rate imposed is increased upon the sales price of tangible personal property, specified digital products, and the furnishing of enumerated services sold or used in this state in effect on the effective date of the resolution. After an increased tax rate becomes effective, an amount equal to the amount generated by the increase in the tax rate shall be annually credited to the fund, not to exceed an amount equal to the amount generated by a tax rate of three-eighths of one percent imposed upon the retail sales price of tangible personal property, specified digital products, and the furnishing of enumerated services sold or used in this state.
   The natural resources and outdoor recreation trust fund repealed by the resolution, is a fund established for the purpose of protecting and enhancing water quality and natural areas in this state including parks, trails, and fish and wildlife habitat, and conserving agricultural soils in this state.
   The resolution, if adopted, would be published and then referred to the next general assembly (92nd) for adoption, before being submitted to the electorate for ratification.