We’re over halfway through the Legislative Session, and NFIB Iowa is fighting hard for small business priorities. Here is a quick update on some legislation that reforms and lowers taxes

Property Tax Reform – HSB313/SSB1208:

The Senate Ways & Means Chair Dan Dawson and House Ways & Means Chair Bobby Kaufmann introduced a joint property tax reform measure with NFIB’s requested 2% local government revenue cap. This legislation is a comprehensive effort to revamp Iowa’s property tax system addressing the out-of-control local government spending. Along with the local government revenue growth cap of 2%, it will also eliminate Iowa’s confusing rollback system and return all property classes, except agriculture, to 100% of its value. Additionally, the measure would create a $25,000 exemption for residential property taxes, replacing the current Homestead Tax Credit and provide $400 million in property tax relief by increasing the state general fund share of school aid while reducing the share paid by property taxpayers. NFIB Supports this legislation.

Risk-Based Taxation Legislation – HSB321/SSB1212:

As adult smokers are looking now more than ever for less harmful alternatives to traditional cigarettes, smoke-free products like nicotine pouches and heated tobacco products (HTPs) have emerged as innovative options. These products offer reduced-risk choices for those trying to move away from smoking. By lowering taxes on these products, it will encourage consumers to adopt smoke-free alternatives, the expected decrease in smoking rates among adults in Iowa could have a significant offsetting effect on the state’s healthcare costs and also potentially increase workforce productivity. NFIB supports this legislation. 

Unemployment Insurance Tax Reform – SF607/HSB315:

Iowa has over-collected nearly $1 billion dollars in unemployment Insurance taxes over the past several years. In 2025, Iowa employers will pay unemployment tax on the first $39,500 of each employee’s wages, which ranks second highest in the Midwest. Thanks to the Governor’s leadership she wants to “right-size” Iowa’s unemployment insurance tax system by lowering the taxable wage base from $39,500 to $19,500, while also lowering and simplifying the various tax brackets. This legislation will help save employers over $800 million dollars over the next few years, while keeping benefits the same and most important ensuring the trust fund remains solvent.  NFIB Supports this legislation