SILO bill provides secure funding for Iowa’s school districts; Eases property tax burden
SIOUX CITY – Today, Governor Chet Culver signed House File 2663, which establishes Iowa’s sales tax at 6% and uses the extra 1 cent on every dollar spent in Iowa for school infrastructure funding.
“The local-option tax has helped transform Iowa’s schools, and fulfilled our commitment to giving our children the best education in the country,” said Governor Culver. “All children in Iowa deserve the opportunity to learn in a modern, safe school building. And I’m proud to say House File 2663 will help us do just that.”
House File 2663 creates a dedicated funding stream for school infrastructure in Iowa. The legislation sets the funding to be distributed on a per-pupil basis, ensuring all school districts receive equal funding. By setting the sales tax at 6%, school districts stand to receive an extra $200 per pupil on average for school modernization and construction.
Governor Culver signed the legislation in Sioux City before a crowd of 600 elementary students, as well as teachers, parents, local leaders and local citizens. Sioux City stands to receive more than $2.8 million next year and is projected to receive $22 million over the next six years.
In addition, the legislation will provide property tax relief for Iowans. The new law stipulates that any unused funds, as well as tax collected on goods purchased out of state and shipped to Iowa, be used to fund the Property Tax Equity and Relief Fund. It is projected that this law will provide $32 million per year for property tax relief.
“Let me be clear – this legislation is intended to provide to provide millions in property tax relief to Iowans,” said Governor Culver. “All 99 counties in Iowa have passed the local option sales tax for schools. Iowans will not notice any increase in tax when this legislation takes effect on July 1st, but in the coming years Iowans will notice improved schools and greater educational opportunities for their children.”
Earlier in the day, Governor Culver touted House File 2663 at a stop in Council Bluffs, which is projected to receive nearly $11 million in school infrastructure funding and nearly $7 million in property tax relief as a result of this legislation.
