Iowa lawmakers eye ending voter-approved recreation trust fund

DES MOINES — Iowa lawmakers are considering taking steps to replace a voter-enacted taxpayer trust fund dedicated to outdoor recreation and conservation with one focused on property tax relief.

The Iowa Senate State Government Subcommittee on Wednesday advanced Senate Joint Resolution 6, which would initiate the process of passing a state constitutional amendment to replace the Natural Resource and Outdoor Recreation Trust Fund first established in 2010.

The trust fund has sat empty for nearly 15 years since voters approved the measure with 63 percent of the vote. Funds would be allocated to the trust fund only if lawmakers approve a sales tax increase — which they haven’t done since 2008.

If ever funded, money from the trust would go toward projects such as improving soil, water and air quality and increasing outdoor recreational opportunities.

Under the new measure, 0.375 percent of any increased sales taxes would instead go toward property tax relief and not to the trust fund.

If the resolution is successful this legislative session, it would need to be approved by lawmakers after the 2026 elections in the 2027 or 2028 sessions, and then could go before Iowa voters in 2028.

While at least 17 Senate Republicans who cosponsored the resolution made it clear they want to shuttle the resolution through the chamber, it may face an uphill battle in the House.

Rep. Mike Sexton, a Republican from Rockwell City who chairs the House Agriculture Committee, expresses skepticism about the proposal, suggesting it is not the right approach for property tax reduction.

Sexton told a reporter he was caught off guard by the issue and questioned whether it would even pass the Iowa Senate. He said he has no desire to pursue the resolution as chair of the Iowa House Agriculture Committee.

"I don't think anybody over here is thinking about doing it," Sexton said of the House. "... I think my gut would tell me it's the wrong way to take care of property tax reduction."

Plans to fill the trust fund in Gov. Kim Reynolds’ “Invest in Iowa Act” were curtailed in 2021 when she paused the proposal. The act would have established a 1-cent sales tax increase to contribute to programs Reynolds noted were underfunded, including mental health services and environmental conservation.

Subcommittee member Sen. Jesse Green, R-Boone, cited government farmland acquisition that could result from the current trust fund as the leading reason for his support of the legislation.

“There's something very wrong about the government being the No. 1 competitor of land,” Green said. “I think everybody's for the water quality and for the parks and the recreational stuff, bike trails. I'm all for that, but we got to be careful when it comes to land acquisition.”

Sen. Art Staed, D-Cedar Rapids, said the legislation “undermines the will of the people” after Iowans voted to establish the trust fund.

“It was a vote of hope, a vote for a future where our natural resources, our outdoor spaces and our way of life are prioritized,” Staed said. “We can ensure that our farmers continue to thrive on healthy soil, our children grow up surrounded by clean water and future generations of Iowa has a chance of experiencing the same beautiful outdoor spaces that we cherish today. It is time for us to listen to the people of Iowa and show some respect.”

Maintaining the current trust fund

In a packed committee room Wednesday with speakers and listeners spilling out the door, multiple attendees made the case that tossing out the trust fund would be a blow to keeping younger Iowans in the state by limiting outdoor recreation opportunities and efforts to improve water and air quality.

Kerri Johannsen, representing the Iowa Environmental Council, argued making outdoor spaces accessible to Iowans is essential to combating obesity in the state, which is linked to increased rates of cancer.

Iowa has the fastest-growing rate of new cancers and ranks second-highest in the nation — behind Kentucky — in cancer rates, according to the Iowa Cancer Registry.

Chris Sprott, chair of Iowa Ducks Unlimited, said the trust fund should be kept and funded to continue conservation efforts and make land available for recreation. He said his 25-year-old son was involved in Ducks Unlimited since he was a kid and dedicated a lot of time to conservation efforts.

“I'm a registered Republican; that doesn't matter, I’m an Iowan,” Sprott said. “I'm racking my brain today. He (Sprott’s son) is scratching his head, all the hard work he did back then as a kid is being laughed at.”

Executive Director of Iowa Rivers Revival Molly Hanson said investments in outdoor recreation projects help grow the state's economy and attract new residents.

“The opportunity to come out of this trust is truly about improving recreation, quality of life and the opportunity to attract and retain talent to our state," Hanson said

Property taxes, farmland acquisition

Kevin Holst, a fifth-generation farmer from Scott County, said the Iowa Department of Natural Resources has acquired some of his family’s land over the past few decades. But he and other farmers in attendance said farmers shouldn’t have to “compete” with the government for land.

Holst also expressed concern that losing land and having to keep up with property taxes would stop him from passing down his farm to his sons.

“I would love to get them involved in farming,” Holst said. “I don't know how I'm going to do that. The price of land keeps going up, property taxes keep going up, making it unaffordable for us year and year after year.”

Blake White, who farms in Appanoose County, said he spends a lot of time on land conservation.

“We’re not the bad guy here,” White said. “I probably spend more money on conservation than most of the people in this room.”

Iowa ranks near the bottom of the list of U.S. states for its share of publicly-owned land. About 3 percent of the state is public land, according to a Texas A&M University Natural Resources Institute study.

In 2022, Iowa had 30.5 million acres of farmland, according to the U.S. Department of Agriculture. Nearly 400,000 acres of land in Iowa currently are managed by the Iowa DNR.

The Iowa DNR acquired 2,229 acres through land acquisition through 39 separate purchases in 2024, according to the department.

Subcommittee Chair Sen. Mike Bousselot, R-Ankeny, said the resolution would not stop conservation efforts in the state, adding that it instead would address increasing property taxes.

“When you look at the property tax burden, that is a tax paid by all Iowa, is a tax on every single Iowan,” Bousselot said.

Tom Barton of The Gazette Des Moines Bureau contributed.