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.
If ratified, SJR6 would establish a property tax relief trust fund within the state's treasury, earmarked for funding elementary and secondary education. The generated funds would be allocated to lower property tax rates, ensuring these reductions are applied uniformly across different school districts in Iowa. An increase in the sales and use tax rate is required for the fund to start accruing revenue, specifically targeting a new rate that would contribute an amount equivalent to three-eighths of one percent on sales of tangible personal property and specified digital products.
Senate Joint Resolution 6 (SJR6) proposes a significant amendment to the Iowa Constitution, which entails the repeal of the natural resources and outdoor recreation trust fund. This resolution aims to dedicate a portion of the state revenue generated from sales and use taxes specifically for property tax relief. The primary intent of this proposed amendment is to alleviate the financial burden of property taxes on residents by creating a new property tax relief trust fund, which would replace revenues lost from the foundation property tax levy that supports education in Iowa's school districts.
The contention surrounding SJR6 primarily revolves around the potential implications of repealing the existing natural resources and outdoor recreation trust fund, which plays a crucial role in protecting Iowa's environmental assets, including water quality, parks, and wildlife habitats. Advocates for retaining the trust fund argue that environmental protections should not be sacrificed for tax relief. In contrast, supporters of SJR6 assert that property tax relief is a pressing need for residents, and reallocating these funds is a necessary step to provide fiscal relief, particularly as it relates to education funding at the state level.