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.
This bill imposes a new tax on alternative nicotine products (like nicotine gum or lozenges) and vapor products (such as e-cigarettes), with tax revenue directed to a newly created Iowa Cancer Research Fund. The fund, managed by the Department of Health and Human Services, is separate from the general state fund and cannot be used for any purpose other than cancer research starting July 1, 2026. Businesses selling these products - including manufacturers, distributors, and retailers - will pay the tax on their sales. The bill also defines key terms like "vapor product" and "nicotine analog" to clarify which products are subject to the tax.
This bill allows the surviving spouse of an emergency services member (including firefighters, police officers, correctional officers, emergency medical providers, and volunteers) killed in the line of duty to request a property tax waiver for their primary residence. To qualify, the spouse must submit a sworn petition with proof of the member’s death being directly caused by a duty-related injury and certification from the member’s agency. The local board of supervisors reviews petitions, and if approved, the tax abatement applies to all eligible property taxes and special assessments for the filing year and potentially future years, subject to ongoing eligibility. The bill also applies retroactively to tax years starting January 1, 2025, and excludes cases involving suicide, intoxication, gross negligence, or the spouse’s contributing actions.
This bill modifies Iowa county property tax rates for general and rural services. It sets new annual tax rate formulas based on assessed value, with specific calculations for fiscal years starting in 2024-2028. Key provisions include requiring counties to maintain tax revenue at 101.5% of the previous year's actual levy (for 2027-2028) and linking rate adjustments to changes in the consumer price index (CPI), using a "budget adjustment factor" that ranges from 102% to 105% based on CPI growth. These changes directly affect county governments' ability to set property tax levies for local services.
HF 970 allocates $1 million for Iowa's Double Up Food Bucks program, which helps SNAP recipients buy fresh produce at farmers markets and grocery stores. It requires grant recipients to match funds dollar-for-dollar and ensures the funds remain available beyond the fiscal year. The bill also seeks federal approval to restrict SNAP-eligible foods to healthy items like fruits, vegetables, whole grains, and lean proteins. This food eligibility change would take effect only after the USDA approves the modification. The program funding becomes effective upon federal approval of the food rules.
HF 1024 proposes to exclude overtime pay from the individual income tax in Iowa. This bill directly affects individuals who earn compensation at a rate of one and a half times their regular pay by allowing them to subtract this income from their taxable earnings. The bill amends the state's tax code to implement this exclusion. If enacted, these provisions would apply to tax years beginning on or after January 1, 2026.
HF 1030 proposes to exempt certain cash tips from the individual income tax for qualifying Iowans. Individuals whose net income is less than $155,000 could subtract up to $25,000 in "qualified tips" from their taxable income. "Qualified tips" are defined as cash tips received in occupations that traditionally and customarily received cash tips before December 31, 2023. This exemption would apply to tax years beginning on or after January 1, 2026, unless the federal government enacts similar legislation.
House File 1004 proposes to exempt the sales price of honeybees from Iowa's state sales and use tax. This means that individuals or businesses purchasing honeybees would no longer be subject to these taxes on their acquisition. The bill achieves this by adding honeybees to the list of items specifically excluded from sales tax under existing state law. Consequently, honeybees would also be exempt from the state's use tax.
HF 1033 designates rural water districts, organized under specific state chapters, as exempt entities for sales and use tax purposes. This change allows these districts to apply for refunds on sales and use tax paid for building materials, supplies, equipment, and services from contractors under written agreements. The bill specifically makes construction services provided to these districts exempt from sales tax, which differs from existing law. It also removes a current, more limited sales tax exemption for building materials to prevent duplicate provisions.
HF 1034 creates a new individual income tax credit in Iowa for taxpayers who purchase firearm safety devices. The credit is equal to the sales price of the device, up to a maximum of $500. Eligible devices include those designed to prevent a firearm from being operated without deactivation, or a new, personal-use "qualified gun safe" made of steel or similar strong material. Any unused credit can be carried over to the following tax year, and the bill applies retroactively to purchases made on or after January 1, 2025.
