IA
Iowa Senate Bill SSB3207

Iowa 2023-2024 Regular Session

Iowa Senate Bill SSB3207

Introduced
4/17/24  
Introduced
4/17/24  

Caption

A bill for an act relating to state and local finances by modifying individual and alternate income tax rates, withholding credits, franchise tax deductions, methodologies for determining property taxes, and property tax assessment limitations, changing methods of determining compensation of county officials, making contingent transfers from the taxpayer relief fund, and making corrections, and including effective date and applicability provisions.(See SF 2442.)

Impact

In addition to the tax rate modifications, SSB3207 introduces adjustments to the methodologies for determining property taxes and property tax assessment limitations. For instance, the bill proposes to gradually reduce the percentage of actual value at which certain properties assessed by the Iowa Department of Revenue are taxed, aiming for a 90% assessment rate by January 2029. The legislation will also revise the processes surrounding the setting of county and city tax levy rates, aligning them with growth thresholds and previous fiscal years' rates to provide more predictable financial management for local governments.

Summary

Senate Study Bill 3207 proposes a comprehensive set of modifications regarding state and local finances in Iowa. The bill emphasizes adjustments to the individual and alternate income tax rates, notably moving up the effective date for a tax rate reduction from January 1, 2026, to January 1, 2025. It decreases the primary tax rate from 3.90% to 3.80%, and the corresponding alternate income tax rate from 4.40% to 4.30%. The bill also makes critical corrections to how withholding rates and income tax brackets are calculated, paving the way for a streamlined tax structure. These changes are set to take effect on January 1, 2025, and apply to tax years beginning after this date.

Contention

Notably, SSB3207 contains provisions that may trigger contention among various stakeholders. While supporters argue that the bill will drive economic development by reducing tax burdens and streamlining tax processes, opponents may raise concerns about potential impacts on local governance, particularly regarding property tax assessments and county compensation protocols. The bill also reflects a shift in authority, as it allows counties to consolidate designated county seats, potentially challenging longstanding local governance structures. Overall, SSB3207 is positioned as a significant legislative effort aimed at reshaping Iowa's financial landscape.

Latest SSB3207 Activity

Companion Bills

IA SF2442

Replaced by A bill for an act relating to state and local finances by modifying individual and alternate income tax rates, withholding credits, franchise tax deductions, methodologies for determining property taxes, and property tax assessment limitations, changing methods of determining compensation of county officials, making contingent transfers from the taxpayer relief fund, and making corrections, and including effective date and applicability provisions. (Formerly SSB 3207.) Effective date: Enactment, 05/01/2024, 07/01/2024, 01/01/2025. Applicability date: 01/01/2024, 01/01/2025, 07/01/2025.

Similar Bills

IA HSB752

A bill for an act relating to state and local finances by modifying individual and alternate income tax rates, withholding credits, franchise tax deductions, methodologies for determining property taxes, and property tax assessment limitations, changing methods of determining compensation of county officials, making contingent transfers from the taxpayer relief fund, and making corrections, and including effective date and applicability provisions.(See HF 2705.)

IA HF2705

A bill for an act relating to state and local finances by modifying individual and alternate income tax rates, withholding credits, franchise tax deductions, methodologies for determining property taxes, and property tax assessment limitations, changing methods of determining compensation of county officials, making contingent transfers from the taxpayer relief fund, and making corrections, and including effective date and applicability provisions.(Formerly HSB 752.)

IA SF2442

A bill for an act relating to state and local finances by modifying individual and alternate income tax rates, withholding credits, franchise tax deductions, methodologies for determining property taxes, and property tax assessment limitations, changing methods of determining compensation of county officials, making contingent transfers from the taxpayer relief fund, and making corrections, and including effective date and applicability provisions. (Formerly SSB 3207.) Effective date: Enactment, 05/01/2024, 07/01/2024, 01/01/2025. Applicability date: 01/01/2024, 01/01/2025, 07/01/2025.

IA HF718

A bill for an act relating to local government property taxes, financial authority, operations, and budgets, modifying certain transit funding, property tax credits and exemptions, and appropriations, requiring certain information related to property taxation to be provided to property owners and taxpayers, modifying provisions relating to fees for driver's licenses and nonoperator's identification cards, modifying provisions relating to certain writing fees, modifying certain bonding procedures, making penalties applicable, and including effective date, applicability, and retroactive applicability provisions. (Formerly HF 1.) Effective date: 05/04/2023, 07/01/2023, 07/01/2024. Applicability date: 01/01/2023, 07/01/2023, 07/01/2024.

IA SSB1218

A bill for an act relating to local government property taxes, financial authority, operations, and budgets, modifying certain transit funding, property tax credits and exemptions, and appropriations, requiring certain information related to property taxation to be provided to property owners and taxpayers, modifying provisions relating to fees for driver's licenses and nonoperator's identification cards, modifying provisions relating to certain writing fees, making penalties applicable, and including effective date, retroactive applicability, and applicability provisions.(See SF 569.)

IA SF569

A bill for an act relating to local government property taxes, financial authority, operations, and budgets, modifying certain transit funding, property tax credits and exemptions, and appropriations, requiring certain information related to property taxation to be provided to property owners and taxpayers, modifying provisions relating to fees for driver's licenses and nonoperator's identification cards, modifying provisions relating to certain writing fees, making penalties applicable, and including effective date, retroactive applicability, and applicability provisions. (Formerly SSB 1218.)

IA SSB1208

A bill for an act relating to local government property taxes, financial authority, and budgets, modifying appropriations, and including effective date, applicability, and retroactive applicability provisions.

IA HSB313

A bill for an act relating to local government property taxes, financial authority, and budgets, modifying appropriations, and including effective date, applicability, and retroactive applicability provisions.