Legislation

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Lowering tax rates and reducing spending is a formula that will lead to economic growth in Iowa. As legislation is considered at the Capitol in subcommittees, full committees, or on the floor of either Chamber, Iowans for Tax Relief will register for, against, or undecided on bills based on how the bill impacts Iowa taxpayers.

Bill NumberITR DeclarationBill DescriptionITR Position
SSB 1186AgainstA bill for an act repealing the beverage containers control program, creating a recycling program and a litter control and community enhancement initiative, imposing certain recycling program fees and litter control and community enhancement excise taxes, repealing and creating funds within the state treasury, and including effective date and transition provisions.Iowans for Tax Relief believes that the existing bottle bill is sufficient and no new taxpayers’ dollars should be used. ITR does not necessarily oppose reforming Iowa’s current bottle redemption law, but creating a new program does not warrant a complete overhaul.
HF 575AgainstAn Act repealing the beverage containers control program, creating a recycling program and a litter control and community enhancement initiative, imposing certain recycling program fees and litter control and community enhancement excise taxes, modifying references to the waste volume reduction and recycling fund, and including effective date provisions.Iowans for Tax Relief believes that the existing bottle bill is sufficient and no new taxpayers’ dollars should be used. ITR does not necessarily oppose reforming Iowa’s current bottle redemption law, but creating a new program does not warrant a complete overhaul.
SF 2383ForThis plan reduces the number of individual income tax brackets from nine to five and the top rate of 8.98% will be lowered to eventually 6.30%. The bill also couples Iowa’s tax code with the federal tax code. The AMT tax is eliminated and the sales and use tax is modernized. This bill reduces corporate tax rates to four brackets and taking the top rate of 12% and lowering it to 7%. The bill also eliminates and reforms Iowa’s complex system of tax credits. Credit unions would also be taxed under this proposal.ITR supports this comprehensive tax reform and relief. This bill will lower both the individual and corporate income tax rates, which will allow Iowa to be more competitive. This is a pro-growth bill, which also addresses spending reductions in order to achieve the goal of lower rates.
SSB 3195ForThe Governor’s plan calls for $1.7 billion in tax relief through 2023. The proposal would gradually phase out federal deductibility, lower individual income tax rates from 8.98 percent to 6.9 percent, and modernize Iowa’s sales and use tax to include online sales. The bill also uses revenue triggers that will require Iowa to collect a certain amount of revenues in order for tax rates to be lowered. ITR supports this bill because Iowa has one of the highest individual income tax rates in the country. This bill would provide tax relief to a majority of Iowans who otherwise would see a tax increase because of federal deductibility and the recent Tax Cuts and Jobs Act. ITR views this bill as pro-growth and will make Iowa more competitive and benefit taxpayers.
HSB 671ForThe Governor’s plan calls for $1.7 billion in tax relief through 2023. The proposal would gradually phase out federal deductibility, lower individual income tax rates from 8.98 percent to 6.9 percent, and modernize Iowa’s sales and use tax to include online sales. The bill also uses revenue triggers that will require Iowa to collect a certain amount of revenues in order for tax rates to be lowered.ITR supports this bill because Iowa has one of the highest individual income tax rates in the country. This bill would provide tax relief to a majority of Iowans who otherwise would see a tax increase because of federal deductibility and the recent Tax Cuts and Jobs Act. ITR views this bill as pro-growth and will make Iowa more competitive and benefit taxpayers.
HF 2121AgainstThis bill provides a county senior services property tax levy that may be imposed by the county board of supervisors following receipt of a petition and majority approval at election by the voters of the county. The levy may not exceed 30 cents per $1,000 of assessed value and must be used for the purpose of contracting with persons to provide services for seniors within the county.ITR believes that Iowans are faced with an already high property tax burden and all governments need to fund the priorities. If a county believes that services are needed they should find the programs with their existing revenues.
SF 2255ForAllows the Auditor to review expenditure of state or federal funds by a department at the request of a legislator. Allows the Auditor to determine whether an audit or a review should be conducted when taxpayers request an audit of a city or township.ITR supports greater transparency and accountability at all levels of government and this legislation would provide both greater transparency and greater accountability for the taxpayer.
HF 2226ForAllows the Auditor to review expenditure of state or federal funds by a department at the request of a legislator. Allows the Auditor to determine whether an audit or a review should be conducted when taxpayers request an audit of a city or township.ITR supports greater transparency and accountability at all levels of government and this legislation would provide both greater transparency and greater accountability for the taxpayer.
HF 2063ForRequires LSA rural improvement zone reports to list all such zones that filed a report and to report on indebtedness. Excludes the use of funds from an urban renewal zone for public buildings for plans filed after the effective date of the bill. Defines blighted areas. Limits the development of century farms for housing. Establishes duration limits for urban renewal areas that do not have time limits. Limits the use of renewal funds to help businesses relocate. TIF: Requires that school taxes not be divided under TIF and used to pay urban renewal indebtedness but paid to the schools. Allows counties to adopt a resolution precluding the division of county taxes for TIF. Other: Includes various effective dates.ITR supports reforming TIF or Tax Increment Financing. TIF was originally supposed to be used to develop blighted areas for purposes of economic development, but TIF has been abused by many localities as a tool for economic development. This bill would reform TIF (urban renewal law) as well as end the state’s backfill for education dollars.
HF 656ForThis legislation eliminates the state backfill for new TIFs or property added to existing TIFs. This legislation would exclude the school foundation levy. This bill is successor to HSB 195.ITR believes that Tax Increment Financing (TIF) should only be used for specific blighted and slum areas. TIF has been abused to be used by localities and should not be used at the taxpayers’ expense for non-blighted areas.
HF 655AgainstLocal Option Sales Tax: An act relating to the approval and imposition of local option sales and services. This measure would allow localities to vote for and impose the tax independent of it contiguity with other jurisdictions. This bill is successor to HSB 43.ITR believes each level of government should live within the revenue provided by existing taxes and rates. Government should not demand increases, especially when many taxpayers are living with tight household budgets. If a local option sales tax is implemented, however, that tax should be re-submitted to the voters every five years.
HF 477AgainstAn Act relating to the exemption from the hotel and motel taxes for the renting of lodging exceeding a certain number of consecutive days.This measure serves as a tax increase by raising the time of long-term stay from 31 to 90 or more days. This is also an example of why Iowa’s tax code is complex.
HF 633ForAn act relating to the shared operational functions for purposes of supplementary weighting for school districts.We believe the supplemental weighting encourages greater efficiency and serves the interest of the taxpayers. This not only helps to save total education costs by having districts share resources but also helps more rural districts offer needed services for students.
SJR 9ForA joint resolution proposing an amendment to the Constitution of the State of Iowa relating to the state budget by creating a state general fund expenditure limitation.ITR has long supported a spending limitation amendment. This amendment, if already in the Constitution, would have saved Iowa taxpayers close to $500 million. This spending limitation amendment is needed to help control the growth in state spending. Lower spending is necessary to achieve lower tax rates.

Passed Senate in 2017 (referred to House Appropriations HJ 682)
SJR 8ForA Joint Resolution applying for an Article V convention to propose amendments to the Constitution of the United States that impose fiscal restraints, and limit the power and jurisdiction of the federal government, and requesting Congress to similarly propose such amendments.ITR has long supported a constitutional amendment to require the federal government to balance its budget and to limit the size and scope of government.