April 19, 2024

You Need to Know

• The end is near. The Legislators’ per diem ended on April 16, but the end of the session, sine die, while in sight, is still not known. 

• The Iowa House and Iowa Senate Ways & Means committees introduced identical bills that both contain technical fixes, as well as policy changes, that relate to property taxes and income taxes. Read more about these proposals below.

• A few weeks following the conclusion of the final adjournment, the League will publish New Laws of Interest to Cities which summarizes bills passed in the 2024 legislative session that have an impact on city government. Look for this in Cityscape, and in Interim Legislative Link editions.
  

• Because the Legislature is working to adjourn this weekend, they will be “gaveled in” continuously until sine die. Therefore, it is possible that between when this edition of Legislative Link was written, published, and read that the below information is outdated.

Legislation

SF 2442 & HF 2705  |  Tax Omnibus Bill

• This tax omnibus bill has nine divisions, several of which impact various taxes. The bill alters the property tax notification statement in advance of certifying a levy rate;  “softens” the Consolidated General Fund Levy CGFL ratchet mechanism* for cities that fall within a certain property tax growth rate that was implemented in 2023, effective for FY 2026; grants cities with more than 15,000 in population the ability to extend certain housing Tax Increment Finance projects for three years with the approval of other taxing entities; extends the Targeted Job Withholdings Credit to 2027 and increases a qualified investment threshold from $500k to $1M. It includes income tax cuts and corrective provisions to last year’s property tax bill and allows for the dissolution of county compensation boards. Contains other provisions.

• * Please note that once this legislation passes into law, the above link describing the CGFL ratchet mechanism will be out of date. The above link should be used for reference only.

• The League is registered undecided. While several requests on tax credits and exemptions were not included in this legislation, the League continues to advocate for these changes and will continue to in the 2025 session.

League Registered Undecided

HF 2681 | Automated Traffic Enforcement Regulation

• Provides a regulatory framework for the use and implementation of Automated Traffic Enforcement (ATE). Requires local governments to submit an application to the Iowa Department of Transportation. Restricts uses of revenue from ATE to public safety or infrastructure improvements. Allows systems in place prior to January 1, 2024 to remain in place and places a moratorium on new systems until January 1, 2026.

• Passed the Senate and sent to the Governor for consideration.

HF 2464 | Firearm Record Retention Prohibition

• Prohibits local governments from maintaining registries or lists of firearm owners except in the course of a criminal investigation. Also deals with credit card merchant category codes of firearms.

• Passed the Senate and will be sent to the Governor for consideration.

HF 2661 | Sheriff Pension, New Public Safety Tax Credit

• Provides additional benefits to Sheriffs and Sheriff Deputies through Code of Iowa Section 97B.49C. Adds enhanced penalties for assaulting an officer. Provides a tax credit for moving expenses for officers who relocate to Iowa.

• Passed out of the Senate and will be eligible for consideration by the Governor.

• The League is registered undecided on this legislation. While we appreciate additional tools and resources to recruit new officers, we often hear about the disparity between city and county benefits as a challenge to keeping qualified officers.

League Registered Undecided

HF 2319 | Guaranteed Income Program Preemption

• Preempts a local government from providing a guaranteed income program. Under the legislation, a guaranteed income program does not include programs in which the individual receiving payment is required to work or attend training as a condition of their payments. 

• Passed the Senate and will be eligible for consideration by the Governor.

SF 2424 | Volunteer Public Safety Tax Abatement

• Allows a volunteer emergency services provider who’s homestead is located in their service area the ability to apply for an additional homestead tax credit equal to $500 or 10% of their property tax liability, whichever is less. 

• Passed Ways & Means Committee and will be eligible for consideration on the House floor.

Upcoming Legislative Forums

Fairfield Legislative Forum

When: April 20, 7:30 – 9 a.m.

Where: Fairfield Arts & Convention Center, 200 N. Main St., Fairfield

Eldridge Legislative Forum

When: April 20, 8 – 9 a.m.

Where: Tasty Café, 209 E. Le Claire Rd., Eldridge

Confirmed Participants: Rep. Vondran

Linn County Legislative Forum

When: April 20, 10:30 – 11:30 a.m.

Where: Linn County Fairgrounds - Lynn Dunn Building, 201 Central City Rd., Central City

Council Bluffs Legislative Coffee

When: April 20, 11:30 a.m. – 12:30 p.m.

Where: J's Coffee & Donuts, 149 W. Broadway, Council Bluffs

Confirmed Participants: Rep. Josh Turek

Louisa County Town Meeting with U.S. Senator Chuck Grassley

When: April 23, 1:15 – 2:15 p.m.

Where: Briggs Civic Center, 317 N. Water St., Wapello

Confirmed Participants: U.S. Senator Chuck Grassley

Crawford County Town Meeting with U.S. Senator Chuck Grassley

When: April 24, 3 – 4 p.m.

Where: Denison Municipal Utilities - Municipal Utilities Room, 721 Broadway, Denison

Confirmed Participants: U.S. Senator Chuck Grassley

Shelby County Town Meeting with U.S. Senator Chuck Grassley

When: April 25, 10:45 – 11:45 a.m.

Where: Harlan Public Library, 718 Court St., Harlan

Confirmed Participants: U.S. Senator Chuck Grassley

Guthrie County Town Meeting with U.S. Senator Chuck Grassley

When: April 25, 2:15 – 3:15 p.m.

Where: Panora Community Center, 115 W. Main St., Panora

Confirmed Participants: U.S. Senator Chuck Grassley

You can view all editions of Legislative Link at iowaleague.org/resource/legislative-link.

Like our membership, the Iowa League of Cities is a non-partisan, service-oriented organization that does not participate in elections, make campaign contributions, or have a political action committee (PAC).