Iowa Senate Bill SSB1207

Iowa 2023-2024 Regular Session

• Introduced: 3/21/23
• Refer: 3/21/23

Caption

A joint resolution proposing amendments to the Constitution of the State of Iowa relating to requirements for certain state tax law changes and creating a taxpayer relief fund.(See SJR 14.)

Impact

If enacted, the bill's provisions would not only restrict the legislative authority to raise income taxes but also ensure that any future bills impacting tax rates are subject to greater scrutiny and support from elected officials. The establishment of a taxpayer relief fund is an additional feature, which would be designated for reductions in income, sales, and property tax rates as determined by the assembly. This places an explicit emphasis on taxpayer relief, reinforcing the commitment to lower tax burdens in Iowa.

Summary

Senate Study Bill 1207 (SSB1207) proposes significant amendments to the Constitution of the State of Iowa, focusing on taxation limitations and the establishment of a taxpayer relief fund. The bill requires that any changes to state income tax rates, including increases or the creation of new income taxes, must receive a two-thirds majority vote from both the House and Senate. This is designed to create a higher threshold for enacting tax increases, aiming to protect taxpayers from potential burdens while enhancing accountability in the legislative process.

Contention

The proposals within SSB1207 have sparked debate among legislators and various stakeholders. Proponents argue that requiring a two-thirds majority for tax increases is a necessary step toward fiscal responsibility and will mandate lawmakers to carefully consider the implications of tax legislation. On the contrary, critics may view this as a restriction on the legislature's ability to respond to fiscal emergencies or the needs of the state, potentially stalling economic recovery efforts during downturns. The implementation of such structural changes to the taxation process raises questions regarding governmental efficiency and effectiveness in meeting public service demands.