March 7th marked the first legislative deadline of the 91st General Assembly; legislation introduced in either the House or Senate must have received committee support to remain eligible for the remainder of the session. Bills assigned to either the Appropriations or Ways and Means Committee are exempt from the funnel deadline.

Several contentious policy proposals failed to advance this week, including legislation that would impose fines for sleeping in public property, repealing the Natural Resources and Outdoor Recreation Trust Fund, and banning gene-based vaccines in Iowa.

On Thursday, the House and Senate Ways and Means Chair’s introduced companion property tax reform bills. Senate Study Bill 1208 and House Study Bill 313 would overhaul Iowa’s property tax system to simplify and lower taxes for Iowans. Senator Dawson and Representative Kaufman shared that the proposed legislation would cut property taxes by an estimated $426 million.

The legislation would make the following changes:

“We either needed to do something big, or do nothing at all, and these bills filed today deliver additional big, bold reforms to Iowa’s property tax system,” said Rep. Kaufmann. “Throughout our work on our last property tax bill, we learned a lot about the property tax system and its gaps and problems. This proposal is the biggest overhaul to the property tax system in decades, puts Iowa homeowners first, brings much needed relief to property taxpayers, and puts restraints on local governments to limit spending while the system is updated and modernized.”

“Our previous property tax reform, House File 718, was the first step to make immediate changes for Iowans and bringing them the relief they needed, and this proposal builds on those successes and provides deeper reforms to property taxes in Iowa,” said Senator Dawson. “We heard a lot from Iowans that rising property taxes continued to be an issue in their communities and are looking to the legislature for solutions. This solution, I believe, Iowans will support, cities and counties can support, and I am looking forward to the continued conversation about how we can rebuild this entire system to make it simpler and fairer, prioritize Iowa property taxpayers and their families, and help make Iowa a more competitive state.”

The Iowa Economic Development Authority introduced Senate Study Bill 1205 and House Study Bill 305 on Tuesday. The legislation was referred to the Ways and Means Committees and would make significant changes to Iowa’s tax credits and incentives programs, including:

Governor Reynolds introduced 10 policy priorities this session, all of which survived the first funnel deadline in one, if not both, chambers.

Senate File 383 and House File 852 both survived the first funnel deadline. The legislation would place additional regulations on Pharmacy Benefit Managers and prohibit a PBM from reimbursing a pharmacy for an amount less than the national drug acquisition cost or the Iowa average acquisition cost.

House File 796 appropriates $1 million to support the Double-Up Food Bucks Program and requires the Department of Health and Human Services to request a waiver from USDA to provide that eligible foods under state administration of SNAP only include healthy food including but not limited to health grains, dairy, meat, eggs, peanut butter and nuts, pasta, rice, legumes, and fruits and vegetables.

Senate File 544 would increase the salaries for state officials. Legislator salaries would be increased to $45,000 per year, with higher salaries for leadership positions, while also providing for an annual cost-of-living adjustment. The Governor, Lt. Governor, Secretary of State, State Auditor, State Treasurer, Secretary of Agriculture, and Attorney General would also receive salary increases and annual cost of living adjustments. The legislation was introduced on February 27th and advanced out of the Senate State Government Committee on Thursday.

This week: Both chambers are expected to hold floor debate to send priority legislation to the opposite chamber prior to the second funnel deadline on April 4. Only the Appropriations and Ways and Means Committees are scheduled to meet in both chambers next week.