Budget & Taxes

This bill provides funding and sets operational rules for the Iowa Department of Justice, the Office of Consumer Advocate, and the Department of Corrections for the 2026-2027 fiscal year. It allocates specific amounts to support the Attorney General's office, victim assistance programs, legal aid for low-income individuals, cybersecurity improvements, and the operation of state correctional facilities. The legislation also mandates that the Department of Justice track and report non-state funding sources, such as reimbursements from other agencies, and authorizes the hiring of additional staff for victim services and human trafficking training.

HF 2769 allocates approximately $202.7 million from the state general fund to the Iowa judicial branch for the fiscal year 2026-2027, primarily to pay salaries for judges, court staff, and administrative personnel. The bill also provides specific funding for jury and witness fees, interpreter costs, and court-ordered services for juveniles, including a provision that prevents counties from being billed for these state-funded juvenile services. Additionally, it establishes a $500,000 reserve for a potential specialty business court and mandates that district court clerk offices remain open during regular hours in all 99 counties. To ensure accountability, the legislation requires the judicial branch to submit monthly financial reports and semiannual updates on collected fines and court costs to state agencies.

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.