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BIG CHANGES AT DHS
06.17.19
Big news today out of the Department of Human Services - Director Jerry Foxhoven resigned effective immediately.  Department of Public Health Director... Read More...
LEGISLATOR RESIGNING, SENATE COMMITTEE CHANGES
06.14.19
Rep. Lisa Heddens (D-Ames) announces she will resign from the Iowa Legislature, prompting a special election for this Ames sweat.  Rep. Heddens is a... Read More...
Governor Finishes Actions on Bills
05.24.19
With just minutes to spare before the three-day Memorial Day weekend, Governor Kim Reynolds took final action on the remaining bills sent to her this... Read More...
Session Ends!
04.27.19
After late nights and long debates, controversy and agreement, the 2019 Iowa Legislature has adjourned for the year.  They will not come back together... Read More...
State Representative Changes Parties; Now a Democrat
04.23.19
As. hard as we try, we just cannot keep our Guide to the Iowa Legislature updated!!!  First, Sen. Danielson resigned early in session.  Now, Rep. Andy... Read More...


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TAX CUT SIGNED INTO LAW

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It was no secret that the Legislature spent weeks behind closed doors working on a tax reform package that would cut taxes and modernize our sales tax system.  It's a complicated bill, but here are the highlights:

  • There will be fewer income tax brackets and the top tax rate is reduced (from 8.53% to 6.5% for individuals, and from 12% to 9.8% for businesses).
     
  • Federal deductibility is eliminated in tax year 2019 for businesses and tax year 2023 for individuals (that is, the ability to deduct federal taxes from your state taxes).  
     
  • Iowa's sales tax system is "modernized" to allow for the taxation of online good and services (such as software, games, subscription services such as Netflix) and other services like taxis, Lyft, and Uber.   
     
  • Requires a review of all tax credits next summer (during the summer/fall of 2019).  Legislators will look at every tax credit and determine whether the state is getting a return on these investments.  There are many tax credits in Iowa law - volunteer firefighters, adoptions, school tuition, historic preservation, child care, beginning farmers, and many, many more.  

You can see a financial summary of the plan prepared by the non-partisan Legislative Services Agency at  www.legis.iowa.gov/docs/publications/FN/965637.pdf