Iowa lawmakers advance state tax hike for outdoor improvements

DES MOINES - A Senate panel Thursday approved a state sales tax hike to generate money that would be earmarked for enhancing Iowa's natural resources that backers said would fulfill the wishes of Iowa voters who established a constitutionally protected natural resources and outdoor recreation trust fund in 2010.

'It's really a legacy issue for the Legislature and the state,” said Sen. Rob Hogg, D-Cedar Rapids, before members of the Senate Ways and Means Committee voted 8-7 to approve Senate Study Bill 1272, which seeks to raise the state's 6 percent sales tax by 3/8 of a penny effective July 1, 2016, and transfer the $120 million to $180 million it would generate to the trust account.

Sen. Chaz Allen, D-Newton, joined GOP senators in opposing the measure. Sen. Randy Feenstra, R-Hull, said lawmakers already raised the state's gas tax by 10 cents a gallon this session and should be looking at ways to reduce tax burdens rather than increasing the sales tax.

'Most of us didn't run on a promise we'd raise taxes,” said Sen. Matt McCoy, D-Des Moines, 'but this bill is different.” He said representatives of conservation, environmental, farm and outdoor recreation groups have come to the Statehouse to support increased funding to enhance Iowa's natural resources in a way that will keep future generations from leaving for other places that have invested in those amenities.

Committee chairman Sen. Joe Bolkcom, D-Iowa City, said he viewed the proposal as a 'strategic infrastructure investment,” while Sen. Herman Quirmbach, D-Ames, said grateful generations would remember the bill as the 2015 Legislature's biggest accomplishment if lawmakers get it passed and signed by Gov. Terry Branstad.

In other action, the committee voted 10-5 to approve a bill that would create a fee schedule for commercial animal businesses, shelters and handlers to cover annual inspections by the Iowa Department of Agriculture and Land Stewardship.

McCoy said the fees contained in Senate File 357 would generate about $150,000 to cover the cost of two full-time inspectors to keep tabs on 220 federally licensed pet shops, commercial dealers, groomers and kennels. Yearly fees would range from $75 up to $7,500 for operations selling more than 400 dogs or cats annually.

The committee also voted 14-1 Thursday to approve a bill that would authorize the state Department of Transportation to issue vehicle registration plates containing a space to place a DOT-approved decal produced, issued and sold by qualifying not-for-profit organizations.

Sen. Bill Dotzler, D-Waterloo, expressed misgivings that the proposed plate would produce an opening for 'someone to get cute” by putting something inappropriate in the display area that would only trigger a $20 fine for a violation. However, Quirmbach, the only dissenter, said he worried that content would be regulated in a way that might restrict constitutional freedom of expression.