Gov. Chet Culver on Tuesday signed into law a measure taking statewide a 1 cent local option sales tax already approved in all 99 counties.
The money will be spent on school buildings and to ease local property tax collections.
As he signed the measure into law before students and local leaders at a Sioux City school, Culver emphasized that the legislation won't increase taxes.
"Let me be clear, this legislation is intended to provide millions in property tax relief to Iowans," said Culver. "All 99 counties have passed the local option sales tax for schools. Iowans will not notice any increase in tax when this legislation takes effect on July 1, but in the coming years Iowans will notice improved schools and greater educational opportunities for children."