This bill extends Iowa's existing tax credit for E-15 gasoline, allowing retail gas dealers to continue claiming the credit against individual and corporate income taxes through 2028 (previously set to expire in 2026). It specifically allows dealers to claim the E-15 promotion tax credit for the full tax year, even if their tax year doesn't align with calendar years. The extension also preserves eligibility for the E-85 promotion tax credit when a dealer claims the E-15 credit in the same year. This change directly affects retail gasoline dealers who sell E-15 fuel, providing continued tax relief for their business operations.
SF 598 modifies Iowa property tax rules for land developed after January 1, 2020. It keeps such property taxed at its pre-development rate during construction or development activities (e.g., clearing land, installing utilities, or zoning changes) until a permanent structure is built or the property is sold. Property owners can opt out of this rule by notifying the assessor by March 1 each year, reverting to standard tax assessment. The law applies retroactively to tax assessments starting January 1, 2025, and does not affect taxes paid before that date.
SF 439 allows Iowa cities to levy a tax of up to 27 cents per $1,000 in property value to fund public libraries, directly affecting city residents who vote on the tax. The tax requires voter approval through a petition and election process: a majority must approve it at a regular city election, and it can be removed the same way. This bill reestablishes a library funding mechanism eliminated by a prior law (HF 718), restoring the specific tax rate and voter approval requirements that existed before that change. The tax would be part of a city's general fund levy, supporting library operations and services.
HF 30 creates a tax deduction for Iowa law firms representing indigent clients in specific court-appointed cases. It directly affects eligible law firms with two or more attorneys (who practice at least half the year) and attorneys licensed for fewer than 10 years, for cases appointed on or after July 1, 2025. The deduction equals the difference between $150 per hour (or the firm's actual rate) and the state's standard hourly rate ($76-$86) for such cases, calculated based on the firm's pro rata share. The deduction applies retroactively to tax years beginning January 1, 2025.
This bill (HSB 316) changes property tax rules for licensed commercial child care facilities in Iowa. It allows these facilities to be taxed at the same rate as residential property (instead of commercial property) for assessments starting in 2025, if they qualify and apply. To qualify, facilities must submit an application by July 1 each year with proof of licensing, and the county board must approve it by September 1. The state will cover the resulting tax loss with annual funding of $125 million, ensuring child care providers pay lower property taxes without increasing local government revenue.
This bill provides two key benefits for Iowa veterans with a 100% service-connected disability rating certified by the U.S. Department of Veterans Affairs: (1) It waives vehicle title fees and annual registration fees for up to three vehicles, including free standard license plates (special plates require extra fees); and (2) It creates a property tax credit equal to the full amount of property tax owed on a veteran’s primary residence. The credit is processed by county officials and funded through state appropriations, with strict confidentiality rules for veteran information except when shared with veterans service officers. These changes directly affect qualifying Iowa veterans, reducing their vehicle ownership costs and property tax burden.
HSB 325 allows Iowa counties, cities, school districts, and townships (defined as "governmental units") to formally combine tax-related services like levying, collecting, and property assessment through joint agreements. The bill creates a legal framework for these units to merge portions or all of their tax functions to achieve cost savings and operational efficiency. It specifically permits shared authority over tax collection and property valuation under Chapter 28E of Iowa law. The bill does not mandate combinations but provides a structured process for local governments to voluntarily collaborate.
This bill (HSB 324) requires credit and debit card networks to exclude sales tax amounts from the total transaction when calculating interchange fees charged to sellers. It directly affects retailers and businesses that collect sales tax on credit/debit card purchases, as they currently pay fees on the full transaction amount including tax. The key provision mandates that payment networks either deduct tax amounts from interchange fees at settlement or provide rebates proportional to the tax portion. This change aims to reduce costs for sellers by ensuring they are not charged fees on tax amounts collected for the government. The bill also includes penalties for non-compliance and a process for sellers to claim rebates if tax wasn't captured at checkout.
This bill (HF 247) removes the state sales and use tax on purchases of honeybees in Iowa. It directly affects beekeepers, apiaries, and businesses that sell honeybees by eliminating the tax they would otherwise pay when buying these insects. The key provision amends Iowa’s tax code to specifically exempt honeybee sales from both the sales tax (under Code section 423.3) and the use tax (under Code section 423.5, due to existing tax code rules). This change means customers buying honeybees will pay no state tax on the purchase price.
This bill adjusts property tax rates for Iowa counties, directly affecting local governments and property owners. It sets new tax rate formulas for general and rural county services, requiring counties to maintain tax revenue at least 1.5% above the prior year’s actual collections (with exceptions for inflation). The rates are tied to the consumer price index, adjusting the maximum allowable tax increase based on inflation thresholds (e.g., 4-6% inflation triggers a 103% adjustment factor). These changes apply to fiscal years starting July 1, 2024, through 2028, with specific rules for 2026-2027 budget cycles.
