Iowans to vote on income tax initiative

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(The Center Square) – Voters in Iowa will decide on a constitutional amendment that could make it harder for the state legislature to raise the income tax rate.

Iowa’s Amendment 1, before voters on Nov. 3, asks residents to vote “yes” or “no” in response to a proposed amendment that would require a two-thirds majority vote in both chambers of the Iowa legislature to pass a bill increasing individual or corporate income taxes or creating a new income tax.

Iowa currently has a flat individual income tax rate of 3.8%.

A “no” vote on the amendment would still allow an increase of the income tax or an additional tax to be approved with a simple majority in the legislature. 

Across the state, advocacy groups have urged voters to choose one side or the other in the heated debate. The Fair Taxes for Iowa’s Future Coalition, a group formed from the League of Women Voters of Iowa and other organizations, urged voters to select “no.”

“This amendment is backed by the same rich donors and corporate lobbyists who have gamed the system for decades to benefit their bottom lines,” the coalition wrote.

The coalition pointed to Iowa’s more than $1 billion budget deficit for fiscal year 2027. The groups warned that state legislators would cut education funding and healthcare throughout the state in order to balance the budget.

“Expect them to raise fees, college tuition and the many taxes not covered by Amendment 1, like the sales tax,” the coalition wrote.

Iowa’s sales tax rate is 6%. The rate was last raised in 2008.

Other advocates throughout the state called on voters to approve the measure, saying it would make it more difficult for politicians to raise taxes on Iowa workers.

“Iowa families and businesses carefully manage their budgets every day,” Iowans for Tax Relief wrote. “Amendment 1 encourages the government to do the same by making higher income taxes a last resort rather than the easiest solution.

Bernie Hayes, chair of the Linn County Republican Party, said the measure will allow for careful consideration of any proposed tax increases. 

"That forces us to look at our spending, to look at our priorities and say, 'Do we really need to do this?' It makes us be more frugal and look at other ways of how we can accomplish the same thing with the funds we have," Hayes told The Center Square.  

Iowa is not the first state to consider implementing a supermajority requirement in order to raise taxes. Across the country, 15 states require a supermajority vote in the legislature to raise taxes, including Arizona, California, Kentucky and Oregon.

Common Good Iowa, another group against passage of Amendment 1, said the initiative would put increased pressure on Medicaid and SNAP recipients after cuts to both programs were made through the “One Big Beautiful Bill.”

Iowans for Tax Relief rejected claims that the amendment would threaten funding for other programs.

“Amendment 1 does not determine how taxpayer dollars are spent or reduce funding for any government program,” the group wrote. “It changes the legislative vote required before state income taxes can be increased. Budget decisions will continue to be made through the normal legislative process.”

The text of the the ballot initiative reads:

“Passage of a bill that increases the individual income tax rate or the corporate income tax rate, or the rate of any other type of tax based upon income or legal and special reserves, shall require the affirmative votes of at least two-thirds of the members elected to each house of the general assembly. This requirement does not apply to taxes imposed at the option of a local government. Passage of a bill that establishes a new tax on any type of income or legal and special reserves imposed by the state shall require the affirmative votes of at least two-thirds of the members elected to each house of the general assembly. A lawsuit challenging the proper enactment of a bill under this section must be filed no later than one year following the enactment. If such a lawsuit is not filed within the one-year limit, the bill shall be considered properly enacted under this section. Each bill to which this section applies must include a separate provision describing the requirements for enactment prescribed by this section. The general assembly shall enact laws to implement this section.”

Early voting in Iowa is from Oct. 14 to Nov. 1. Polls are open on Election Day from 7 a.m. to 8 p.m. For results on Election Day, visit thecentersquare.com/iowa.