HF 30 creates a tax deduction for Iowa law firms representing indigent clients in specific court-appointed cases. It directly affects eligible law firms with two or more attorneys (who practice at least half the year) and attorneys licensed for fewer than 10 years, for cases appointed on or after July 1, 2025. The deduction equals the difference between $150 per hour (or the firm's actual rate) and the state's standard hourly rate ($76-$86) for such cases, calculated based on the firm's pro rata share. The deduction applies retroactively to tax years beginning January 1, 2025.
HF 773 changes how costs are awarded to taxpayers in disputes with Iowa's Department of Revenue over tax, penalty, or interest collection. The bill removes the current $25,000 cap on recoverable costs and shifts the burden of proof: if a taxpayer substantially prevails on the amount in dispute or key issues, the Department must prove its position was "substantially justified." If the Department fails to meet this burden, the taxpayer can recover reasonable costs, including court fees, expert witness expenses, and attorney/accountant fees incurred after the initial tax notice. This directly affects taxpayers challenging tax assessments in administrative hearings or court.
This bill (HSB 316) changes property tax rules for licensed commercial child care facilities in Iowa. It allows these facilities to be taxed at the same rate as residential property (instead of commercial property) for assessments starting in 2025, if they qualify and apply. To qualify, facilities must submit an application by July 1 each year with proof of licensing, and the county board must approve it by September 1. The state will cover the resulting tax loss with annual funding of $125 million, ensuring child care providers pay lower property taxes without increasing local government revenue.
This bill provides two key benefits for Iowa veterans with a 100% service-connected disability rating certified by the U.S. Department of Veterans Affairs: (1) It waives vehicle title fees and annual registration fees for up to three vehicles, including free standard license plates (special plates require extra fees); and (2) It creates a property tax credit equal to the full amount of property tax owed on a veteran’s primary residence. The credit is processed by county officials and funded through state appropriations, with strict confidentiality rules for veteran information except when shared with veterans service officers. These changes directly affect qualifying Iowa veterans, reducing their vehicle ownership costs and property tax burden.
HSB 325 allows Iowa counties, cities, school districts, and townships (defined as "governmental units") to formally combine tax-related services like levying, collecting, and property assessment through joint agreements. The bill creates a legal framework for these units to merge portions or all of their tax functions to achieve cost savings and operational efficiency. It specifically permits shared authority over tax collection and property valuation under Chapter 28E of Iowa law. The bill does not mandate combinations but provides a structured process for local governments to voluntarily collaborate.
This bill (HSB 324) requires credit and debit card networks to exclude sales tax amounts from the total transaction when calculating interchange fees charged to sellers. It directly affects retailers and businesses that collect sales tax on credit/debit card purchases, as they currently pay fees on the full transaction amount including tax. The key provision mandates that payment networks either deduct tax amounts from interchange fees at settlement or provide rebates proportional to the tax portion. This change aims to reduce costs for sellers by ensuring they are not charged fees on tax amounts collected for the government. The bill also includes penalties for non-compliance and a process for sellers to claim rebates if tax wasn't captured at checkout.
This bill proposes a constitutional amendment requiring a two-thirds vote in both Iowa House and Senate for any bill that increases income tax rates (individual or corporate) or creates new income-based taxes. It would directly affect Iowa's legislative process for tax changes, making it harder to raise taxes without broad bipartisan support. Key provisions include a one-year deadline for legal challenges to tax bills passed under this rule and a requirement that all such bills include a specific statement about the two-thirds vote requirement. If approved by voters in 2026, this amendment would change how Iowa enacts most tax legislation.
This bill (HF 247) removes the state sales and use tax on purchases of honeybees in Iowa. It directly affects beekeepers, apiaries, and businesses that sell honeybees by eliminating the tax they would otherwise pay when buying these insects. The key provision amends Iowa’s tax code to specifically exempt honeybee sales from both the sales tax (under Code section 423.3) and the use tax (under Code section 423.5, due to existing tax code rules). This change means customers buying honeybees will pay no state tax on the purchase price.
This bill adjusts property tax rates for Iowa counties, directly affecting local governments and property owners. It sets new tax rate formulas for general and rural county services, requiring counties to maintain tax revenue at least 1.5% above the prior year’s actual collections (with exceptions for inflation). The rates are tied to the consumer price index, adjusting the maximum allowable tax increase based on inflation thresholds (e.g., 4-6% inflation triggers a 103% adjustment factor). These changes apply to fiscal years starting July 1, 2024, through 2028, with specific rules for 2026-2027 budget cycles.
This bill (HSB 311) allows Iowa public school districts to use funds from their district management levy to cover school safety and security costs. Specifically, it authorizes spending on weapons detection systems, door monitoring, and hiring qualified personnel - including school resource officers (as defined federally), private security officers with weapon permits, reserve peace officers, or certified peace officers. The policy change applies to school budgets starting July 1, 2025, and directly affects school districts managing their local levies. It provides a clear funding mechanism for safety infrastructure and staffing without altering existing levy authorization rules.
