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Should Iowa Increase the State Sales Tax?

  • Jan 28, 2015 | Gail Cole

 Iowa needs to devote more money to natural resources.

There is a movement afoot in Iowa to increase the state sales tax rate by one percent to raise revenue for the state’s natural resources. Back in 2010, Iowa voters decided that three-eighths of each penny added to the sales tax would go toward bettering the state’s natural resources.

Members of the Iowa Natural Resources Commission have called on Governor Terry Branstad (R) and state legislators to raise the rate during the current legislative session. The commission says approximately $150 million annually “from a dedicated portion of a state sales tax increase would provide more money to Iowa’s ‘woefully underfunded conservation, habitat and recreation initiatives’” (kcrg.com).

At least one lawmaker is open to a state sales tax rate increase. Pam Jochum, the Democratic Iowa Senate President, has said “she would support a three-eighths of one cent increase in Iowa’s sales tax for a state Natural Resources and Outdoor Recreation Trust Fund” (Des Moines Register).

Yet support for a rate increase is not widespread. It is said that the governor “doesn’t believe there is an appetite for a sales tax increase in the Iowa Legislature”, and he did not mention a rate increase during his Condition of the State address.

Stay on top of sales tax rates in Iowa and other states. Learn more.

photo credit: U.S. Fish and Wildlife Service - Midwest Region via photopin cc

Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.