Senate Joint Resolution 6 - Introduced SENATE JOINT RESOLUTION 6 BY COSTELLO , GRUENHAGEN , CAMPBELL , ALONS , SHIPLEY , SWEENEY , WEBSTER , EVANS , BOUSSELOT , GUTH , WESTRICH , KLIMESH , LOFGREN , GREEN , REICHMAN , DICKEY , and PIKE SENA TE JOINT RESOLUTION A Joint Resolution proposing an amendment to the Constitution 1 of the State of Iowa by repealing the natural resources and 2 outdoor recreation trust fund, and dedicating a portion 3 of state revenue from sales and use taxes imposed for the 4 benefit of property tax relief. 5 BE IT RESOLVED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 1901XS (2) 91 jm/md
S.J.R. 6 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of 1 the State of Iowa is proposed: 2 Section 10 of Article VII of the Constitution of the State of 3 Iowa is repealed January 1 immediately following ratification 4 and the following adopted in lieu thereof: 5 Sec. 10. Property tax relief. A property tax relief 6 trust fund is created within the treasury for the purposes of 7 replacing revenue generated from the foundation property tax 8 levy or any other succeeding property tax levy imposed in lieu 9 thereof that provides funding for elementary and secondary 10 education in each school district in the state. Moneys in the 11 fund shall be exclusively appropriated by law to lower the 12 foundation property tax levy rate on an equal basis across 13 school districts or similarly lower any succeeding property 14 tax levy rate. The amount allocated annually from the trust 15 fund shall be considered property taxes and shall be treated 16 as if received from the foundation property tax levy or any 17 succeeding property tax levy and the foundation property tax 18 levy or succeeding property tax levy rate shall be reduced 19 accordingly. 20 No revenue shall be credited to the fund until the tax rate 21 for the sales and use tax imposed upon the retail sales price 22 of tangible personal property, specified digital products, 23 and the furnishing of enumerated services sold or used in 24 this state in effect on the effective date of this section is 25 increased. After such an increased tax rate becomes effective, 26 an amount equal to the amount generated by the increase in 27 the tax rate shall be annually credited to the fund, not 28 to exceed an amount equal to the amount generated by a tax 29 rate of three-eighths of one percent imposed upon the retail 30 sales price of tangible personal property, specified digital 31 products, and the furnishing of enumerated services sold or 32 used in this state. 33 Sec. 2. REFERRAL AND PUBLICATION. The foregoing proposed 34 amendment to the Constitution of the State of Iowa is referred 35 -1- LSB 1901XS (2) 91 jm/md 1/ 3
S.J.R. 6 to the general assembly to be chosen at the next general 1 election for members of the general assembly, and shall be 2 published as provided by law for three months previous to the 3 date of that election. 4 EXPLANATION 5 The inclusion of this explanation does not constitute agreement with 6 the explanations substance by the members of the general assembly. 7 This joint resolution proposes an amendment to the 8 Constitution of the State of Iowa by repealing the natural 9 resources and outdoor recreation trust fund, and dedicating 10 a portion of state revenue from sales and use taxes for the 11 benefit of property tax relief. 12 The resolution creates a property tax relief trust fund 13 (fund) within the treasury for the purposes of replacing 14 revenue generated from the foundation property tax levy or 15 succeeding property tax levy imposed in lieu thereof that 16 provides funding for elementary and secondary education in 17 each school district in the state. Moneys in the fund shall 18 be exclusively appropriated by law to lower the foundation 19 property tax levy rate on an equal basis across school 20 districts or similarly lower any succeeding property tax levy 21 rate. The amount allocated annually from the trust fund 22 shall be considered property taxes and shall be treated as if 23 received from the foundation property tax levy. 24 The funding mechanisms of the property tax relief trust fund 25 are similar to the natural resources outdoor recreation trust 26 fund. 27 No revenue shall be credited to the fund until the sales 28 and use tax rate imposed is increased upon the sales price of 29 tangible personal property, specified digital products, and 30 the furnishing of enumerated services sold or used in this 31 state in effect on the effective date of the resolution. After 32 an increased tax rate becomes effective, an amount equal to 33 the amount generated by the increase in the tax rate shall be 34 annually credited to the fund, not to exceed an amount equal 35 -2- LSB 1901XS (2) 91 jm/md 2/ 3
S.J.R. 6 to the amount generated by a tax rate of three-eighths of 1 one percent imposed upon the retail sales price of tangible 2 personal property, specified digital products, and the 3 furnishing of enumerated services sold or used in this state. 4 The natural resources and outdoor recreation trust fund 5 repealed by the resolution, is a fund established for the 6 purpose 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. 10 The resolution, if adopted, would be published and then 11 referred to the next general assembly (92nd) for adoption, 12 before being submitted to the electorate for ratification. 13 -3- LSB 1901XS (2) 91 jm/md 3/ 3