Iowa governor calls for sales tax increase, other tax cuts

Iowa state capitol building. (Jim Bowen / MGN)
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DES MOINES, Iowa (AP) — Iowa Gov Kim Reynolds asked lawmakers Tuesday to consider increasing the state sales tax by 1 cent to fund increased spending on water quality, the environment, and mental health care programs.

To offset the tax increase she proposed an income tax cut of 10% and a property tax cut.

Reynolds made the proposals in her annual Condition of the State address delivered to lawmakers on the second day of the 2020 legislative session.

Reynolds also again called for a constitutional amendment to allow felons to vote upon completing their sentences and an amendment declaring there is no right to an abortion under the Iowa Constitution.

If lawmakers approved the sales tax increase, Reynolds proposed spending $100 million a year on water quality and $52 million a year for conservation and outdoor recreation programs.

Reynolds said the top income tax bracket in Iowa a year ago was nearly 9%. She proposed cuts to reduce that rate to 5.5% by 2023.

She’s also proposing to remove mental health funding from the traditional property tax source and take the money from the state general fund.