Week 8 Legislative Update

The Governor signed a major tax overhaul bill on Tuesday before her response to the State of the Union.

The tax policy ratchets down the income tax to an eventual 3.9% flat tax by Tax Year 2026. It also contains triggers for lowering the corporate rate to an eventual 5.5%. The initial trigger is if net corporate receipts exceed $700 million then the Department of Revenue sets a lower rate depending on how much over $700 million the receipts are. The triggers start over every year until it gets to 5.5%.

This new policy also exempts retirement income from state income tax including farmer income for cash rent payments or capital gains exclusion on sale of land and livestock in certain circumstances. A farmer must be 55 or older and “materially participated” in the farming operation for 10 years to qualify for either of these exclusions.

Bill Tracking

This is a list of the bills IIC has declared on this session.

HSB 654- Third party CDL testing- FOR

This bill would allow regional transit authorities to act as third party testers for CDL tests, which will hopefully free up other testing options. It also allows third party testers to offer the new written portion of the CDL test to comply with the new ELDT regulations. This bill passed out of committee this week surviving the funnel. Renumbered as HF 2530.

HSB 655 -Ag commodity weight limit increase- FOR

This bill would allow vehicles transporting corn, soybeans, hay, straw, silage, stover, or manure to exceed weight limits by 12.5% up to 90,000. This bill is very similar to the harvest proclamation the governor signs every fall but would be year round. Renumbered as HF 2536.

HSB 615 -Digital sales tax- FOR

This digital sales tax bill addresses an issue the rural electric coops have been fighting for a few years. Passed full Ways and Means committee. Renumbered as HF 2520.

HF 2329 -Prize linked savings- FOR

This bill passed full State Government committee and is now eligible for floor debate.

HF 2128 -Biofuel access standard- UNDECIDED/MONITORING

Passed the House 82-10. This week, the bill passed the Senate Ag committee and is currently in Ways and Means.

General interest articles

KEY LEGISLATIVE DATES

A full session timetable can be found here.

March 18: Second funnel

April 19: 100th day of session

Please reach out if you have any questions about what happened this week, what the rest of session might look like, or if you have any other questions or need assistance with a governmental organization or agency.

Rebecca Boyer

Director of Government Affairs

cell: 712-363-4397

office: 515-292-2667

rboyer@iowainstitute.coop