This bill allocates state funds for the 2026-2027 fiscal year to support economic development agencies, including the Economic Development Authority, Iowa Finance Authority, Department of Workforce Development, and State Board of Regents. The legislation sets specific goals for these agencies to expand the state economy, increase wealth, and boost population by prioritizing business recruitment, expansion, and entrepreneurial support. It also establishes financial restrictions requiring businesses receiving state assistance to hire only individuals legally authorized to work in the United States and prohibits funding for geothermal snow-melting projects. Additionally, the bill provides separate appropriations for the World Food Prize, a tourism office, and the Iowa Arts Council, while requiring annual performance reports for the tourism office.
This bill establishes new formulas for calculating state funding increases for schools starting in 2026, directly affecting all public school districts. It modifies how property tax replacement payments are handled, changes transportation equity aid funding rules, and sets new methods for adjusting school district budgets based on enrollment changes. The bill also creates a salary supplement for education support personnel and includes funding appropriations to implement these changes. All provisions take effect for the 2026 budget year.
HF 960 expands Iowa's sales tax exemption to cover all purchases of central office or transmission equipment used by telecom companies providing commercial services, removing the prior requirement that such equipment be "primarily" used for those services. It directly affects local carriers, cable operators, municipal utilities, cooperatives, and other telecom providers that offer commercial telecommunications services. The key change broadens the existing tax exemption to include all qualifying equipment purchases, meaning these businesses will pay no sales tax on such equipment (and no use tax under Iowa law). This policy change simplifies the exemption without adding new regulations or costs to the state.
SJR 11 proposes an amendment to the Iowa Constitution that would change the requirements for passing certain state tax laws. It mandates that any bill increasing state individual or corporate income tax rates, or establishing a new state tax on income or reserves, must receive a two-thirds majority vote in both the House and Senate. This requirement does not apply to taxes imposed by local governments. The amendment also sets a one-year limit for legal challenges to the enactment of such tax bills. If passed by two consecutive General Assemblies, Iowa voters would consider this amendment in the November 2026 general election.
SF 633 establishes a yearly program fee for landowners with forest or fruit-tree reservations that are currently exempt from property taxes under Iowa law. Starting in 2026, these landowners must pay $2-$3 per acre (depending on location relative to homesteads) to their county treasurer by September 1 each year. Fees collected before 2028 can fund general county spending, but after 2028, they must be used for property tax relief beginning in 2029, with adjustments tied to inflation. The bill directly affects landowners maintaining tax-exempt forest or fruit-tree reservations, particularly those in counties with homestead owners nearby.
This bill creates a new health care-related tax on health maintenance organizations operating in Iowa, requiring them to pay 0.95% of their taxable funds to a newly established Medicaid managed care organization premiums health care tax fund. The tax applies to payments received from enrollees for health care services and benefits, while excluding certain federal payments, and includes provisions for prepayment, credit refunds, and enforcement measures like license suspension for nonpayment. Additionally, the legislation appropriates funds from the taxpayer relief fund and supplements appropriations to the Department of Health and Human Services, with specific effective dates and retroactive applicability provisions included.
SF 167 is a school funding bill that establishes the state's funding increase rates for the budget year beginning July 1, 2025, covering both general and specific categorical programs. It modifies provisions related to property tax replacement payments, which help offset local property taxes for schools. The bill also adjusts the regular program state cost per pupil, which is the base amount of state funding provided for each student. Finally, it modifies funding mechanisms for shared operational functions among school districts.
