Iowa’s public schools are lobbying for an extension of the statewide one percent sales tax that helps pay for new buildings and other school-related infrastructure. The tax is scheduled to end in 2029. Republicans in the legislature say they’re willing to continue the tax for 20 years beyond that — but may require a portion to be used for direct property tax relief. Representative Ashley Hinson is a Republican from Marion.
School officials say they’ve used nearly all the tax that will be collected now through the end of 2029 as leverage to pay off bonds borrowed to finance infrastructure projects. Hinson says she and her Republican colleagues haven’t settled on “specific language” yet — but may prevent sales tax money from being spent on certain projects.
An analysis from the Legislative Services Agency indicates the 20-year extension of the statewide one-cent sales tax could generate as much as 16 BILLION dollars for school infrastructure over those two decades.
