SF 604 modifies how units of cigarettes and tobacco products are measured for state regulation and taxation purposes. This bill directly affects businesses involved in the sale of these products and the government agencies responsible for their oversight and tax collection. It changes the specific criteria or definitions used to determine the volume of sales for these products.
This bill modifies how criminal case fines collected within a county are distributed, reducing the percentages allocated to the state court administrator and county treasurer. It establishes a new "victim restitution fund" in the state treasury, which will receive 7% of these collected fines. The fund is dedicated to providing restitution for crime victims, covering "pecuniary damages" and restitution for the death of a victim, as defined by existing law. Monies in this fund will remain available for expenditure year-to-year and will not revert at the close of a fiscal year.
HF 1019 is a bill that exempts the sale of toilet paper from sales tax in Iowa. This means that consumers purchasing toilet paper would no longer pay the state's sales tax on these items. The bill amends Section 423.3 of the Code 2025 to add toilet paper to the list of sales tax exemptions. Due to existing state law, this exemption also applies to the use tax on toilet paper.
This bill establishes a new property tax assessment limitation specifically for commercial properties primarily used as licensed child care facilities. It allows the portion of a commercial property dedicated to child care to be assessed for tax purposes at the same rate as residential property, rather than the standard commercial rate. To qualify, facility owners must apply to their local assessor by July 1st of the assessment year, providing proof of their child care license and property details. This assessment limitation, effective for valuations beginning January 1, 2025, is also factored into state appropriations that help compensate local governments for certain assessment limitations.
HF 1020 modifies the child and dependent care tax credit available to individual income taxpayers in Iowa. The bill revises the structure of the credit by reducing the number of income thresholds from seven to four. It removes the previous maximum income threshold of $90,000, making all taxpayers eligible, with those earning $25,000 or more now able to claim 50% of the federal credit. These changes apply retroactively to tax years beginning on or after January 1, 2025.
HF 1021 proposes to exempt the sale of dietary supplements from sales tax in Iowa. This bill amends existing law to include dietary supplements, such as vitamins and minerals, within the category of "food and food ingredients" that are not subject to sales tax. As a result, consumers purchasing these products would no longer pay sales tax. The exemption would also apply to the state's use tax.
House File 1027 addresses radon by establishing new requirements for residential construction and offering tax incentives for mitigation systems. It mandates that new single-family and two-family homes built after the requirement's adoption must include passive methods for radon mitigation. The bill also creates a non-refundable income tax credit, up to $1,000, for individuals and corporations to help cover the cost of purchasing and installing a radon mitigation system. This tax credit applies retroactively to systems installed for tax years beginning on or after January 1, 2025.
HF 996 proposes to eliminate the state sales tax on services provided by parking facilities. This bill directly affects individuals and businesses who pay for parking, as they would no longer be charged sales tax on these transactions. The legislation achieves this by striking a specific paragraph in the Iowa Code related to sales tax provisions for parking facilities services. This change would reduce the overall cost of parking for consumers.
HF 1000 establishes a veterans service organization grant program and fund under the Department of Veterans Affairs. This program provides matching funds to eligible veterans service organizations to help them employ staff. These staff members are specifically tasked with assisting veterans in filing claims. To receive a grant, organizations must demonstrate they have budgeted their own funds, and the bill initially appropriates $250,000 to the fund for the fiscal year starting July 1, 2025.
HF 872 proposes to amend the criteria for an enterprise to qualify as a "targeted small business" in Iowa. The bill directly affects small businesses that are majority-owned and operated by women, minority persons, service-disabled veterans, or persons with a disability. It increases the maximum annual gross income threshold for these businesses to qualify, raising it from less than $4 million to less than $10 million, averaged over the three preceding fiscal years. This change would allow more businesses to be recognized under the "targeted small business" designation.
