Members,

Last Week

Both chambers held floor debate on mostly non-controversial policy bills last week. The House Appropriations Committee met on Wednesday and Thursday to begin advancing budget bills. On Thursday, Governor Reynolds signed several enrolled bills into law including:

• HF 2227: A bill for an act relating to land restoration following the initial construction of electric transmission lines and including effective date and retroactive applicability provisions.
• HF 2296: A bill for an act restricting counties and cities from issuing a local form of identification.
• HF 2583: A bill for an act relating to emergency planning and coordination for electric transmission line owners and providing penalties.

The full list of bills signed into law in the 91^st General Assembly can be found here.

 

Property Taxes

On Thursday, the House dropped a new amendment to House File 2745. The amendment makes the following changes to the original bill:

• The amendment keeps the 2% cap on all local government revenue growth, but adds language excluding new valuation connected to new construction, debt service, and school funding from the 2% cap.
• Removes the existing low- or moderate-income requirements for future Tax Increment Financing Districts (TIFs)
• The bill originally excluded the $5.40 school aid levy from TIF districts; the amendment allows schools to opt in with approval.
• Shift the burden of proof from the taxpayer to the assessor when assessment increases are above 10%, with requirements for the method used to be provided.
• Disabled Vet Homestead Credit will exclude appurtenances and limit the homestead to ½ acre.
• Removes the creation of the Utility Replacement Tax Credit task force

 

Budget Overview 

Budget	Status	General Fund Appropriation	NOBA
Administration and Regulation	Passed committee in both chambers	Senate: $73.1M House: $73.3M	Senate NOBA House NOBA
Agriculture and Natural Resources	Passed committee in both chambers	Senate: $46.9M House: $46.8M	Senate NOBA House NOBA
Economic Development	Passed committee in both chambers	Senate: $38.4M House: $39.3M	Senate NOBA House NOBA
Health & Human Services	Passed committee in both chambers	Senate: $2,558.3M House: $2,561.3M	Senate NOBA House NOBA
Education	Passed committee Senate	Senate: $1.047B House: $1,041.2M, $9.5M contingent funding.	Senate NOBA House NOBA
Infrastructure	Passed committee in Senate	Senate: $196.3M	Senate NOBA
Judicial Branch	Passed committee in both chambers	Senate: $221.8M House: $222.8M	Senate NOBA House NOBA
Justice Systems	Passed committee in both chambers	Senate: $714.2M House: 4714.3M	Senate NOBA House NOBA
Transportation	Passed committee in Senate	Senate: $495.3M	Senate NOBA

Please note the Senate General Fund Appropriations and NOBA’s do not reflect the Senate’s overall budget target of $9.623 billion; instead, they show the proposed Governor’s budgets and will likely be amended later during floor debate with the Senate’s proposed budgets. The House released an overall budget target of $9.662 billion.

During the March meeting, the Revenue Estimating Conference projected the state to bring in $8.472 billion in FY 2027.

Other Bills of Interest

House File 2774: Exempts sales and use taxes incurred by a non-profit corporation for the construction of a regional water trail system. The bill advanced out of subcommittee and committee this week with unanimous approval.

House File 2777: Excludes property taxes for emergency medical services from TIF districts. The bill passed out of the House Ways and Means Committee unanimously on Wednesday.

Senate File 2480: Imposes a 5‑cent per unit tax on nicotine pouches and a 5‑cent‑per‑milliliter tax on nicotine used in vapor products. Revenue generated by the tax is deposited into the Health Care Trust Fund, which supports Medicaid. $3 million annually is directed to the Iowa Board of Regents for pediatric cancer research and clinical trials at the University of Iowa Stead Family Children’s Hospital. The bill passed out of both the Ways and Means subcommittee and the Ways and Means Committee this week.

Senate File 2492: Aligns Iowa’s corporate income tax system with federal law by ensuring the state deduction for federally taxed foreign income continues to apply after Congress replaced GILTI with NCTI. The bills passed out of the Senate Ways and Means Committee on Wednesday.

This Week

Both chambers will hold limited debate while leadership continues negotiations on key issues, including eminent domain, property taxes, the Governor’s priorities, and the budget. April 21^stis the final day for legislators to receive per diem payments for the 2026 session.

House Schedule

Senate Schedule

 

Take Care,

Chris LaFerla
President & CEO
Council Bluffs Chamber