SF 199 repeals Iowa's education savings account program, which provided state funds for eligible students to cover tuition and related expenses at nonpublic schools. The bill removes this funding source and adjusts related calculations in school finance formulas that previously accounted for students using these accounts. It directly affects students who would have qualified for the program (enrolled in kindergarten through grade 12) for school years beginning July 1, 2025. The repeal takes effect immediately upon enactment, ending the program's availability for future school years.
This bill caps annual sewer rate increases for Iowa local governments (counties, sanitary districts, and sewer boards) at the lower of 102% of the previous year's total rates or the Midwest region's Consumer Price Index (CPI) increase. It excludes pre-July 1, 2025, debt repayment increases from this cap. If rates exceed the limit, the governing body must submit a voter referendum at the next general election; if rejected, customers receive refunds for overpaid amounts from the start of the budget year. The policy directly affects sewer service providers and ratepayers in communities operating municipal sewer systems.
This bill prohibits cities, counties, and other local governments (political subdivisions) from using tax revenue to hire lobbyists. It specifically bans using money collected through taxes to pay anyone who influences legislation, regulations, or official decisions. Violators face serious misdemeanor penalties, including fines up to $2,560 and potential job sanctions for lobbyists. The law aims to prevent local governments from using public tax funds to influence state policy through lobbying.
SF 511 prohibits urban renewal and revitalization projects involving properties related to gaming licenses first issued on or after January 1, 2025, including the gaming property itself, nonprofits directly benefiting it, or commercial properties that directly benefit it. The bill blocks these properties from being included in urban renewal plans, excludes their taxes from revenue-sharing funds for urban projects, and removes tax exemptions for such properties in revitalization areas. It applies retroactively to assessment years beginning January 1, 2025, and affects property taxes due after July 1, 2025. This law directly impacts gaming licensees, their affiliated properties, and local governments managing urban renewal funds.
SF 493 prohibits local governments in Iowa (such as cities, counties, and school districts) from using tax revenue to hire lobbyists or pay government-affiliated groups that hire lobbyists. It specifically targets organizations like the Iowa League of Cities, the Iowa State Association of Counties, and the Iowa School Board Association, while excluding certain insurance or benefits groups. Violating this law constitutes a serious misdemeanor, punishable by fines up to $2,560 and potential job sanctions for the person involved. The bill aims to prevent the use of public tax funds for lobbying activities by local entities.
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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.
This bill exempts certified public accountants (CPAs) from state income tax on fees earned from auditing or examining governmental subdivisions (like cities, counties, or school districts) in Iowa. It directly affects CPAs who perform these required audits, removing tax liability on that specific income under Iowa's individual (Code 422.7) and corporate (Code 422.35) tax codes. The key mechanism is amending those tax codes to exclude income from such governmental audits, effective retroactively for tax years beginning January 1, 2025. This creates a concrete tax benefit for CPAs working with local government entities, with no new reporting requirements for the affected income.
HF 101 limits bond issuance for certain public projects in Iowa. For projects where voters approved bond sales after July 1, 2025, the bill restricts bond amounts to no more than 80% of the project’s total cost. The remaining 20% must be funded through non-bond sources, such as general tax revenue or other existing funds. This applies specifically to projects with bond propositions approved in elections held after the specified date, directly affecting local governments and school districts seeking to finance large capital projects.
This bill creates new conservation area designations for landowners, replacing Iowa's existing forest and fruit-tree tax exemption program. Land designated as a conservation area will be taxed at $12 per acre for commercial uses (like fruit production or pasture managed with a certified plan) or $8 per acre for other conservation uses, starting in 2026. To qualify, areas must cover at least five continuous acres and meet specific land-use requirements, such as maintaining pasture stubble height or having hunting/fishing leases. The bill phases out the old exemption program, which applied only before 2026 and will be fully repealed by 2031.
SF 201 exempts up to $500,000 of income from nonqualified deferred compensation plans (employer retirement plans for select employees) from Iowa's individual income tax for eligible individuals. It directly affects disabled people, those aged 55 or older, and surviving spouses with an insurable interest in a qualifying deceased person. The bill allows these taxpayers to exclude both the plan amount and its earnings from taxable income, mirroring existing retirement income exclusion rules. This exemption applies retroactively to tax years beginning on or after January 1, 2025.
