SF 652 modifies Iowa's economic development programs and urban renewal laws, primarily focusing on housing initiatives. It broadens the definition of "economic development" to include workforce housing and allows urban renewal funds to be used for low and moderate-income family housing. The bill adjusts how certain property taxes, including some school district levies, are allocated in urban renewal areas. It also introduces limitations on the amount of tax revenue municipalities can retain from urban renewal areas over time and sets specific requirements for housing projects within these areas, including a minimum for low and moderate-income housing.
This bill (HSB 96) clarifies that cities and counties in Iowa may use local sales and services tax revenue to fund nonprofit organizations (specifically those exempt under IRS 501(c)(3)) that provide public services within their communities. It directly affects local governments and qualifying nonprofits by expanding eligible recipients for these tax funds beyond previous interpretations. The key change adds explicit language to the tax code, allowing payments to 501(c)(3) nonprofits for services like emergency medical support or other public programs. This does not create new taxes or change tax rates but specifies existing tax money can now be directed to these nonprofits for public service delivery.
HF 197 allows counties in Iowa to use supplemental taxes for the maintenance and operation of a county commission that provides services to veterans. It amends existing law to explicitly include "the maintenance and operation of a county commission of veteran affairs, including providing services to veterans" as a permissible purpose for supplemental levies. This means counties can now certify additional taxes specifically to fund these veteran affairs commissions when basic tax revenue is insufficient. The bill does not create new commissions but expands the existing process for funding county-level veteran services through supplemental levies.
HF 222 allocates hotel and motel tax revenue collected between August 23 and Labor Day to schools that begin their academic year after Labor Day. It creates an "alternate school start date fund" in the state treasury, managed by the Department of Education, which distributes funds to qualifying schools based on enrollment. Schools must meet the standard 1,080 hours of instruction (as if starting August 23, excluding weather-related closures) to receive funding. The funds are deposited into school districts' general funds as "miscellaneous income" but are not counted toward district costs.
This bill requires water utilities in Iowa to accept and retain valid exemption certificates that allow certain water users to avoid sales or water service taxes. It directly affects water utilities and customers who possess these certificates, preventing utilities from forcing customers to seek tax refunds instead of applying the exemption directly. Utilities that refuse valid certificates must pay a civil penalty equal to the tax amount plus interest to the state revenue department. The bill also defines key terms and mandates the revenue department to create rules for implementation.
SJR 6 is a constitutional amendment proposing to repeal Iowa’s natural resources and outdoor recreation trust fund (which funded parks, trails, and conservation) and replace it with a new property tax relief trust fund. The amendment would dedicate a portion of increased sales and use tax revenue (capped at 0.375% of taxable sales) to lower school district property tax levies uniformly across the state. This fund would replace revenue previously generated from the foundation property tax levy, directly reducing property taxes for homeowners and businesses that fund public schools. As a constitutional amendment, it requires voter approval after legislative passage.
This bill imposes taxes on specific nicotine and nonnicotine products sold at retail in Iowa. It charges $1.15 per vapor cartridge, $0.068 per nicotine pouch, and 15% of the retail price for vapor products requiring e-liquids or separately sold e-liquids. All tax revenue flows to the new Iowa Cancer Research Fund, managed by the Department of Health and Human Services, and cannot be used before July 1, 2026, for cancer research funding only. The tax applies to products defined in the bill, including e-liquids, nicotine pouches, and vapor cartridges, and is in addition to existing state taxes.
HSB 274 creates the "Iowa Rural Development Tax Credit Program," allowing tax credits for cash investments in certified rural business growth funds. These funds must invest in qualified rural businesses (under 250 employees, not in Iowa's 12 most populous counties) and must demonstrate a positive state revenue impact exceeding the tax credits issued. Investors receive credits based on eligible capital contributions - cash investments in equity or specific debt instruments - while funds must provide revenue impact studies and job creation/retention metrics. The program requires certification by Iowa's economic development authority, with applications due starting in 2026.
This bill modifies Iowa's Emergency Medical Services (EMS) Trust Fund by changing how related property taxes are collected and what the fund can be used for. It removes taxes for EMS services (under Chapter 422D) from urban renewal tax revenue streams, ensuring these taxes are collected separately starting July 2026. The bill also restricts fund expenditures to directly supporting EMS services aligned with county council resolutions, prohibits using funds to pay debt, and requires compliance with existing EMS service laws. These changes apply to all counties using the EMS Trust Fund.
SF 658 is a state budget bill that allocates funds for the administration and regulation of various state government departments and offices. For the budget year starting July 1, 2025, it provides money for salaries, operational costs, and sets staffing levels for entities such as the Department of Administrative Services, the Auditor of State, and the Governor's office. The bill also includes specific provisions, such as maintaining a workers' compensation fund for state employees and setting an administrative charge for state employee health insurance plans.
