Hunter
02/22/23
The Iowa Senate has advanced a bill that would set a uniform sales tax rate across the state.
The Gazette reports that the bill would increase the state sales tax from 6 to 7 percent, while eliminating the local-option sales tax. A portion of the increased revenue would be earmarked to local governments to make up for the lost revenue. Other revenue would be earmarked to fund the Natural Resources and Outdoor Recreation Trust Fund, an entity that was created in 2010 but has never been funded.
Also included in the bill is an expansion of the homestead, elderly and military service property tax credits. Certain commercial properties would have assessment value limited, while others would see limits on tax exemptions.
The tax increase would be in effect until 2051, then go back to 6 percent.