The chair of one of Iowa's powerful tax-writing committees said March 19 that allowing certain local projects to keep their own sales-tax revenue - rather than sending the money to the state - is a slippery slope.
"I think it's a very dangerous road to go down," Iowa House Ways & Means Chair Tom Sands (R-Wapello), told IowaPolitics.com. "The state started down that road just a little bit with the racetrack, and now, here are two other proposals that are coming off of that. So the next question is: Where will this end?"
In 2005, lawmakers and the governor first used this economic-development tool to bring NASCAR to Iowa. Then-Governor Tom Vilsack signed a law that paved the way for construction of the Iowa Speedway in Newton by allowing the racetrack to keep $12.5 million of its own future sales-tax revenue.
An Iowa policy group warned then that the Newton project would encourage other cities to seek similar subsidies from state funds. The group, it appears, was right.