Signed by Governor Kim Reynolds

Vote Smart's Synopsis:

Vote to pass a bill that repeals revenue triggers that had been put in place to delay state income tax reductions until state revenue grows at a certain level.

Highlights:

• Establishes for property passing from the estate of a decedent dying on or after January 1, 2021, but before January 1, 2022, there will be imposed a rate of tax equal to the applicable tax rate reduced by 20%t, and rounded to the nearest one-hundredth of 1% (Sec. 11.a).

• Specifies this law does not apply to property of estates of decedents dying on or after January 1, 2025. The inheritance tax will not be imposed under this chapter in the event the decedent dies on or after January 1, 2025, and, to this extent, this chapter is repealed (Sec. 12).

• Transfers funds to the housing trust fund in any one fiscal year but these funds must not exceed 7 million dollars. Any money that otherwise would be transferred according to this law to the housing trust fund in excess of that amount will be deposited in the general fund of the state (Sec. 17).

• Prohibits the economic development authority from presuming that a reduction in operations is a reduction in operations while simultaneously applying for assistance with regard to a business that submits an application on or before June 30, 2022, if the business demonstrates the satisfaction of the authority all of the following (Sec. 28-1):

• That the reduction in operations occurred after March 1, 2020; and

• That the reduction in operations was caused by the COVID-19pandemic.

• Amends tax laws to ensure the following (Sec. 60):

• A beginning farmer tax credit is allowed only for agricultural assets that are subject to an agricultural lease agreement entered into by an eligible taxpayer and a qualifying beginning farmer participation in the beginning farmer tax credit program; and

• The tax credit is allowed regardless of whether the principal agricultural asset is soil, pasture, a building, or other structures used in farming.

• Establishes the contrary, the tax rate imposed on a licensee each fiscal year on any amount of promotional play receipts on gambling games included as adjusted gross receipts will be determined by multiplying the adjusted percentage by the wagering tax applicable to the licensee (Sec. 70.a).

• Authorizes a person who files an individual or a joint income tax return with the department of revenue to designate one dollar or more to be paid to the foundation fund of the Iowa state fair foundation was established in section 173.22 (Sec. 77-1).

• Requires a county exempted under this law to maintain a county mental health and disability services fund for the deposit of funding received and appropriations specifically authorized to be made from the county mental health and disability services fund shall not be made from any other fund of the county (Sec. 81-1).

• Establishes the financing of a regional mental health and disability service system is limited to a fixed budget amount. The fixed budget amount shall be the amount identified in a regional service system management plan and budget for the fiscal year (Sec. 92).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that repeals revenue triggers that had been put in place to delay state income tax reductions until state revenue grows at a certain level.

Highlights:

• Establishes for property passing from the estate of a decedent dying on or after January 1, 2021, but before January 1, 2022, there will be imposed a rate of tax equal to the applicable tax rate reduced by 20%t, and rounded to the nearest one-hundredth of 1% (Sec. 11.a).

• Specifies this law does not apply to property of estates of decedents dying on or after January 1, 2025. The inheritance tax will not be imposed under this chapter in the event the decedent dies on or after January 1, 2025, and, to this extent, this chapter is repealed (Sec. 12).

• Transfers funds to the housing trust fund in any one fiscal year but these funds must not exceed 7 million dollars. Any money that otherwise would be transferred according to this law to the housing trust fund in excess of that amount will be deposited in the general fund of the state (Sec. 17).

• Prohibits the economic development authority from presuming that a reduction in operations is a reduction in operations while simultaneously applying for assistance with regard to a business that submits an application on or before June 30, 2022, if the business demonstrates the satisfaction of the authority all of the following (Sec. 28-1):

• That the reduction in operations occurred after March 1, 2020; and

• That the reduction in operations was caused by the COVID-19pandemic.

• Amends tax laws to ensure the following (Sec. 60):

• A beginning farmer tax credit is allowed only for agricultural assets that are subject to an agricultural lease agreement entered into by an eligible taxpayer and a qualifying beginning farmer participation in the beginning farmer tax credit program; and

• The tax credit is allowed regardless of whether the principal agricultural asset is soil, pasture, a building, or other structures used in farming.

• Establishes the contrary, the tax rate imposed on a licensee each fiscal year on any amount of promotional play receipts on gambling games included as adjusted gross receipts will be determined by multiplying the adjusted percentage by the wagering tax applicable to the licensee (Sec. 70.a).

• Authorizes a person who files an individual or a joint income tax return with the department of revenue to designate one dollar or more to be paid to the foundation fund of the Iowa state fair foundation was established in section 173.22 (Sec. 77-1).

• Requires a county exempted under this law to maintain a county mental health and disability services fund for the deposit of funding received and appropriations specifically authorized to be made from the county mental health and disability services fund shall not be made from any other fund of the county (Sec. 81-1).

• Establishes the financing of a regional mental health and disability service system is limited to a fixed budget amount. The fixed budget amount shall be the amount identified in a regional service system management plan and budget for the fiscal year (Sec. 92).

Full Bill Text