HF 980 changes Iowa's unemployment insurance tax system for employers. It reduces the percentage used to calculate taxable wages from 66.66% to 33.33% of the statewide average weekly wage (previously used for maximum benefit calculations), and adjusts the contribution rate tables to lower tax rates for most employers. The bill also requires employers to use any tax savings from these changes to pay employee salaries/benefits or cover seasonal unemployment, rather than keeping the savings. This directly affects all Iowa employers paying unemployment insurance taxes, particularly those with out-of-state workers, by lowering their tax burden under the new structure.
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.
SF 297 sets new rules for contracts state agencies in Iowa must use when buying goods or services. It bans 19 specific contract terms that could unfairly burden the state, such as clauses requiring the state to cover a vendor’s legal costs, using foreign law, hiding payment terms, or forcing arbitration. The bill also requires all contracts to follow Iowa law and be litigated in Iowa courts. These rules apply to all state agency contracts signed or renewed after the bill takes effect, directly affecting how state agencies negotiate and manage vendor agreements.
This bill primarily mandates that individuals and businesses required to file sales and use tax returns must do so electronically. It directly affects all taxpayers subject to sales and use tax filing requirements. A key provision states that any return not filed electronically, when required, will not be considered valid by the department unless an exception is granted. Taxpayers unable to file electronically can request permission from the director to use an alternative filing method. The bill also allows the department to adopt rules to administer these new electronic filing requirements and takes effect immediately upon enactment.
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 579 adjusts funding limits for school districts providing programs for at-risk students, alternative school attendees, or returning dropouts. It sets a 2.5% cap on supplemental funding relative to a district's total regular program costs for fiscal years starting July 1, 2013, and later, with a historical adjustment for districts exceeding this cap before 2013. Starting in 2026, districts could exceed the 2.5% limit to 5% if approved by local voters through an election. The bill directly affects school districts receiving these specific supplemental funds, requiring voter approval for higher funding levels beyond 2025.
