Rep. Harris to Iowa LC: Additional Tax Reforms on the Table in 2024

October 4, 2023 Last Edit: June 5, 2025

Rep. Austin Harris says Iowans can expect additional income tax reforms in 2024.

Rep. Harris to Iowa LC: Additional Tax Reforms on the Table in 2024

On October 4, Iowa’s Leadership Council met with Rep. Austin Harris to discuss small business issues and give feedback on concerns and issues they are seeing at their small business. Rep. Harris is new at the Iowa Capitol and told the small business owners gathered at the roundtable that he appreciates hearing the issues and problems they’re experiencing directly from them.

Rep. Austin Harris told Iowa Leadership Council members that he expects additional tax reform in 2024.

Harris recapped small business wins from this year’s legislative session, which include education reforms in the form of school choice, tort reform that will make it harder for attorneys to sue small business owners, and tax reform which will give small businesses more money to invest back in their business. Many leadership council members expressed frustration with property taxes and the fact they are seeing large increases every year. Rep. Harris agreed that property taxes are a major issue and said it will likely come up during the next legislative session which starts in January 2024. Harris said that the recent reforms by legislators resulted in a surplus of several million dollars. The intent was for that money to go back to the taxpayer, however, cities and counties used the money to pay for local projects on their agenda. Harris pointed out that Iowa spends responsibly, not simply adding projects and services because the state has the money. Iowa is unique in that it started a “Taxpayer Relief Fund” in 2018, which collects excess revenue for the sole purpose of providing tax relief. Collections go to the Fund after state tax collections exceed projections from the Revenue Estimating Conference and two other state funds are accounted for. Recently, the legislature expanded the Fund’s authority so that Iowa can provide broad tax relief how they see fit. Right now, the Taxpayer Relief Fund has $2.74 billion, thanks to smart spending by the government. The strength of the fund allowed lawmakers the flexibility to pass historic tax relief in the form of lowering the individual tax rate for all Iowans to a flat 3.9% by 2026 and overhauling Iowa’s corporate tax system. The fund is an innovative way to keep the interests of taxpayers at the top of lawmaker’s minds and a reminder that state revenues belong to the taxpayer and not the state. Harris said that another positive reform this year was to state government, which went from 37 different departments down to 16. The move will save $214 million in taxpayer money. Harris assured small business owners that he and other legislators are committed to spending responsibly and invested in getting tax money back to small business owners, who can then use it to invest back in their business.

Topics:

Taxes

State:

Iowa

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