In wake of gas tax, another tax would be too much, owners say.
Iowans are fighting back against a bill that would raise the state’s sales tax. On the heels of the recent 10-cent gas tax increase, another tax would be too much, small business owners say.
“Any tax increase will impact our business,” says Roy Skoglund, owner of Laserwash of Iowa. “We try to keep costs as low as possible, but eventually those costs do get passed along to our customers. Our customers will end up paying more down the road.”
Senate File 357, proposed in March, would raise the sales tax—currently 6 percent—to 6 and three-eighths percent. The tax would generate $120 million to $180 million for the Iowa Natural Resources and Outdoor Recreation Trust Fund.
Voters overwhelmingly approved the establishment of the trust fund back in 2010. However, lawmakers have yet to provide the fund with any money.
The money from the sales tax increase would be used to protect and enhance water quality and natural areas in the state, including parks and trails and fish and wildlife habitat. While these might be worthy goals, legislators appear to understand how burdensome another tax hike would be to businesses and residents.
“It is safe to say it will be a challenge securing enough votes in the House and Senate to win approval for a state sales tax increase,” says NFIB Iowa State Director Kristin Failor.
