Iowa Bills

HF 951 appropriates $2 million from Iowa's 911 emergency communications fund to provide grants for counties with populations between 16,000 and 16,500 (per the 2020 census) to repair or replace E911 systems damaged by natural disasters in 2024. The funds are specifically allocated for counties meeting this population threshold and must be used for disaster-related E911 system repairs or replacements. Unspent funds remain available until June 30, 2026, to ensure timely implementation. This bill directly affects eligible counties and ensures dedicated funding for critical emergency communication infrastructure recovery.

HF 271 creates a scholarship program providing up to $5,000 annually for Iowa residents with intellectual, developmental, or learning disabilities who are enrolled in approved comprehensive transition and postsecondary programs (college programs designed for students with disabilities). The College Student Aid Commission, working with vocational rehabilitation services, will administer the program, requiring annual applications and prioritizing Iowa residents. Funds for the program will be held in a dedicated state treasury account that carries over each year instead of reverting to the general fund. This bill establishes the program structure and funding mechanism but requires separate annual appropriations from the legislature to operate.

This bill modifies property tax calculation rules for Iowa counties and cities, directly affecting local governments and property owners. It establishes a new formula where tax levies for general county services, rural county services, and city general funds cannot exceed 102% of the previous year's actual tax revenue, adjusted for new property valuations (like construction or annexation). The change applies to fiscal years starting July 1, 2026, and replaces previous fixed-rate thresholds. For example, a city's property tax rate must align with this 102% growth cap instead of a set dollar amount, ensuring tax increases mirror revenue growth while accounting for new property assessments.

This bill redefines "cigarette" to include heated tobacco products for tax and regulatory purposes, while creating a separate definition for these products. It imposes a 3.4-cent tax per unit of heated tobacco (half the 6.8-cent tax on traditional cigarettes) and excludes heated tobacco products from the 22% wholesale tax applied to other tobacco products like cigars. The bill specifically clarifies that heated tobacco products are distinct from vapor products (e.g., e-cigarettes), which remain regulated under different provisions. These changes directly affect manufacturers, retailers, and consumers of heated tobacco products within Iowa.

This bill changes how Iowa taxes income from airlines and certain air freight forwarders. It requires airlines to calculate their Iowa tax liability based on the proportion of their total flight miles traveled within Iowa. For qualified air freight forwarders (businesses that arrange air cargo without operating planes), the bill gradually shifts more of their income to be taxed based on Iowa mileage - from 90% in 2025 down to 10% by 2033, then fully based on Iowa mileage starting in 2034. The changes apply retroactively to tax years beginning January 1, 2025, directly affecting these businesses' Iowa corporate tax calculations.

This bill appropriates $1.2 million for the 2025-2026 fiscal year to create a drug interdiction program within Iowa's Department of Public Safety, partnering with the Iowa National Guard. The program will hire 12 full-time equivalent staff (10 drug interdiction specialists and 2 criminal analysts) to combat illicit drug trafficking across the state. Funds not spent by June 2026 can carry over into the next fiscal year. The measure directly affects state law enforcement agencies by providing dedicated personnel and resources to address drug trafficking.

HF 846 authorizes Iowa's director of administrative services to sell the Henry A. Wallace state office building (502 E. 9th St., Des Moines) and its adjacent parking structure (628 E. Grand Ave., Des Moines), along with associated property. The director may set the sale terms, conditions, and price. Proceeds from the sale must be deposited into the state's general fund. The bill takes immediate effect upon enactment.

HF 567 excludes net capital gains from selling gold or silver from Iowa's individual income tax calculations. It directly affects Iowa taxpayers who sell gold or silver coins, bars, ingots, or pure gold/silver, allowing them to subtract these gains when computing taxable income. The bill defines "gold or silver" broadly to include common forms like coins and bars, and applies retroactively to tax years starting January 1, 2025. This change modifies how certain investment gains are taxed but does not alter the tax rate applied to other income.

HF 369 proposes a grant program within Iowa's Department of Education to expand high school agriculture education. It allows school districts to apply for grants covering up to 100% of costs for teachers providing up to 60 days of extra instruction in agriculture, food, and natural resources programs (for new programs under 10 years) or 50% of costs (for established programs). Grants must supplement, not replace, existing district funding, and the program includes a statewide tracking system for teacher hours. Funds would be held in a dedicated state treasury account that rolls over annually, avoiding fiscal year expiration. This bill directly affects Iowa public school districts offering agriculture education for grades 9-12.

SF 600 exempts certain property owners from storm water drainage system service charges under two conditions. If a property has at least 1½ inches of standing water during a billing cycle, or if it contains a retention pond meeting specific environmental standards (as defined by a national permit), the county, city, or district cannot charge for these services that billing period. The bill directly affects residential and commercial property owners connected to storm water systems who meet these criteria. It creates clear, objective triggers for fee exemptions without altering broader storm water management requirements.

This bill sets new limits on property tax rates for Iowa counties and cities. It caps annual tax rates for general services based on a formula comparing current tax collections to property values, excluding increases from new construction or boundary changes. For counties and cities, rates cannot exceed a specific dollar amount per $1,000 of assessed value, with adjustments tied to prior years' actual tax collections and property value growth. The rules apply to fiscal years starting July 1, 2026, and directly affect local government budgeting for property taxes.

HF 693 restricts grants from Iowa's county endowment funds to charitable organizations physically located within Iowa. Currently, these funds (partially funded by gambling tax revenue) distribute 75% of moneys as grants to charitable organizations in the county; the bill narrows the definition of "charitable organization" to only those operating in-state, excluding out-of-state groups. It also updates a probate code provision about charitable organizations obtaining property via affidavit, but this change is not restricted to in-state organizations. The bill directly affects county funds managing these grants and qualifying charities seeking funding. The key change is limiting eligibility for grants to Iowa-based charities only.