- The Senate has proposed triggering IWILL by making Local Option Sales and Service Tax (LOSST) a statewide retail sales tax and then distributing 1% to local governments.
- The second funnel is March 18. Read about this and other important deadlines on the Legislative Timetable.
- Stay in communication with your legislator. Legislators have more time now than previously to hear your concerns and discuss legislation. Legislation moving through the process at this point can move very quickly. Please let us and your legislators know how these bills impact your city.
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SSB 3157 | Local Option Sales and Service Tax Alteration and IWILL Funding |
- Restructures the existing Local Option Sales and Service Tax (LOSST) as a 1% increase to the statewide sales tax, to be collected and redistributed to all cities.
- Establishes a base year minimum to ensure that no city that currently has LOSST sees a reduction in current revenue. Future increases in LOSST receipts to local governments, either by higher sales tax collections or repealed tax exemptions, would be redistributed in order to fund any gaps. This redistribution would be effective until January 1, 2043.
- Includes stated requirements that portions of the local government distributions from the newly structured statewide retail sales tax be used for property tax relief, except in certain cases where pre-existing revenue purpose statements exist.
- This legislation will trigger an amount equal to ⅜ of 1% sales tax to be deposited by the state in the Iowa Water Land and Legacy Trust and amends Code of Iowa Chapter 461, which directs the distribution of the fund with the goal of improving Iowa’s drinking and recreational waters.
- The League is analyzing this new format and we hope to be able to release additional information in the near future.
- This bill was introduced but has not been given a subcommittee hearing.
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SF 2372 | Sales Tax Exemptions and Expansions |
- Expands the revenues of sales taxes, including Local Option Sales and Services Tax, by making web hosting and digitally automated services subject to sales tax. Provides an exemption to sales tax for feminine hygiene products and diapers for all ages. Phases in an insurance and banking franchise fee reduction.
- Passed out of the Senate Ways & Means Committee and will be eligible for consideration on the Senate Floor.
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- Division 11 restructures the Business Property Tax Credit (BPTC). In an attempt to lessen the burden of administering the BPTC, this legislation removes the application process for the BPTC, applies a new rollback equal to the rollback percentage applied to residential property to all commercial, industrial and railway property owners on the first $150,000 of assessed value per property/parcel.
- The state will provide up to $125 million appropriation to backfill related revenue reductions to local governments. If the state appropriation were insufficient, local government revenues would be reduced. Because the current BPTC credit requires an application, and the proposed reduction will apply to all eligible property owners, it is unknown how much additional revenue reduction would occur.
- This language is currently being considered in both the House and Senate Ways & Means Committee. This bill is funnel proof.
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HF 2411 | Replacement of Prosthetic Limbs |
- Requires workers’ compensation to provide a replacement prosthetic limb if medically necessary and the original injury was compensable.
- Passed out of subcommittee and will be eligible for consideration in the Labor and Business Relations Committee.
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HSB 726 | Required Notice for Property Tax Process |
- Requires a local government to direct the Iowa Department of Management to send out mail providing property tax levies, an individual parcel's tax liability, net difference, as well as the time and place of the public hearing to approve the levy.
- Passed out of subcommittee and will be eligible for consideration in the House Ways & Means Committee.
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SF 2285 | Planning and Zoning Membership Requirements |
- Requires the county to appoint one person with agricultural experience as one of their two appointments to city planning and zoning boards if a city zones into the two-mile border around the city.
- States that a city may request but shall not require annexation as a condition of granting a zoning change in the two-mile zoning authority outside of city limits.
- Passed out of committee and will be eligible for consideration in the House Local Government Committee.
- The League has heard from members about the impact this could have on pre-annexation agreements or other existing practices.
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HF 750 | Length of Service Award Program |
- Allows cities to provide volunteer public safety members a Length of Service Award as a benefit.
- Passed out of subcommittee and will be eligible for consideration by the House Appropriations Committee.
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- Creates a definition of "no-impact home-based business" and preempts cities from regulating them.
- Passed out of the House and will be sent to the Senate where it will need to pass through committee before funnel on March 18.
- The League is registered undecided.
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HF 2357 | Board of Review Requirements |
- Requires a board of review pursuant to Code of Iowa Chapter 441 to meet by May 7. This bill will be effective upon enactment.
- Passed out of the Local Government Committee and will be eligible for consideration by the full Senate.
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Important Legislation With No Action Last Week |
- HF 2441 | Square Footage Tax on Mobile Homes
- SF 2361 | Workforce/Housing Omnibus
- SF 2350 | Alcohol License and Permit Fees
- SF 2282 & HF 2475 | Utility Board Removal Preemption
- SF 2319 & SF 2352 | Automated Traffic Cameras
- SF 2319 seeks to ban automatic traffic cameras entirely
- SF 2352 provides additional regulation and requirements to utilize automated traffic cameras.
- HF 2296 | Right-of-Way Management Deregulation
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Communication with your legislators is crucial to impacting policy in the statehouse. Take advantage of the local legislative forums listed below. Additionally, you can contact your legislative directly.
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