THE IOWA HOUSE HAS SENT THE GOVERNOR A TAX PLAN THAT ENSURES ANOTHER ROUND OF INCOME TAX CUTS GO INTO EFFECT IN 2023.
IT GETS RID OF THE STATE INHERITANCE TAX AND IT SHIFTS THE RESPONSIBILITY FOR FUNDING FOR MENTAL HEALTH SERVICES FROM COUNTIES TO THE STATE. REPRESENTATIVE DUSTIN HITE, A REPUBLICAN FROM NEW SHARON, SAYS THAT SHIFT ELIMINATES A PROPERTY TAX LEVY THAT’S SUPPORTED THE MENTAL HEALTH SYSTEM.
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NINE DEMOCRATS JOINED 55 REPUBLICANS TO PASS THE BILL. REPRESENTATIVE TIMI BROWN-POWERS, A DEMOCRAT FROM WATERLOO, VOTED AGAINST THE PLAN.
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THE BILL ENDS STATE PAYMENTS TO CITIES AND COUNTIES TO COVER A COMMERCIAL PROPERTY TAX CUT THE LEGISLATURE ORDERED IN 2013.
REPUBLICANS SAY THE STATE PAYMENTS ARE BEING PHASED OUT IN THE NEXT FIVE TO EIGHT YEARS, GIVING CITY AND COUNTY OFFICIALS TIME TO MAKE BUDGET ADJUSTMENTS.
THE BILL HAS A HOST OF OTHER PROVISIONS, INCLUDING MORE TAX CREDITS FOR HOUSING DEVELOPERS AND CHILD CARE OPERATORS.
IT ALSO ENSURES SMALL BUSINESSES THAT GOT FEDERAL LOANS FROM THE PAYCHECK PROTECTION PROGRAM WON’T HAVE TO PAY STATE INCOME TAXES ON THAT PANDEMIC RELIEF.
