Budget & Taxes (Revenue)

HF 1008 creates a legal framework for Iowa municipalities to establish "land redevelopment trusts" aimed at addressing blighted, abandoned, or dilapidated properties. These trusts, created by city ordinance or county resolution, can acquire, rehabilitate, and manage such properties to revitalize neighborhoods and boost tax revenue. The bill defines key terms like "blighted" (unsafe, deteriorated properties) and outlines that trusts must be governed by local boards composed of officials or employees, serving without pay. This enables communities to proactively restore non-productive properties into productive uses, such as affordable housing or commercial spaces, without mandating specific actions.

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 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 1044 is an appropriations bill that provides funding for multiple Iowa state agencies and offices, including the Department of Administrative Services, Auditor of State, Ethics Board, governor's offices, and the Department of Revenue. It allocates budget authority for the operation and regulation of these state entities, covering their administrative needs and existing functions. The bill directly affects the agencies listed by authorizing their use of state funds for day-to-day operations and regulatory activities. It does not create new policies or programs but ensures continued funding for current state government functions. The bill passed both chambers and was signed into law by the governor on June 11, 2025.