Iowa 2025-2026 Regular Session

Iowa Senate Bill SSB1181

Introduced
2/25/25  

Caption

A bill for an act prohibiting franchise fees imposed by cities and counties.

Impact

The removal of the ability to assess franchise fees has a considerable financial implication for local governments. these have typically used these funds to support various public services and infrastructure project. By restricting their capacity to collect such fees, SSB1181 could lead to budget shortfalls for several municipalities, prompting discussions about alternative revenue sources or budget reallocations. Proponents of the bill argue that eliminating franchise fees can alleviate financial burdens on businesses operating in these jurisdictions, promoting economic development.

Summary

Senate Study Bill 1181 proposes the prohibition of franchise fees imposed by cities and counties in Iowa. Specifically, the bill establishes that beginning July 1, 2025, both counties and cities will be unable to assess or collect franchise fees. Currently, cities are permitted to charge these fees based on a percentage of gross revenues generated from franchise operations, but this legislation seeks to eliminate that practice entirely. This move could significantly impact the revenue structure for local governments that rely on these fees as part of their operating budgets.

Contention

There may be notable points of contention surrounding SSB1181, particularly in terms of local government authority and revenue autonomy. Advocates for the bill may endorse it for its potential to provide relief to businesses from what they see as excessive local taxation. Conversely, opponents could argue that the bill undermines local control and restricts the ability of cities and counties to fund essential services. This debate highlights a broader discussion regarding the balance between economic development initiatives and the necessity of adequate funding for local government operations.

Companion Bills

No companion bills found.

Previously Filed As

IA SF550

A bill for an act relating to state and local revenue and finances by modifying sales and use taxes, the charitable conservation contribution tax credit available against individual and corporate income taxes, the water service tax, property taxes, transit funding, and local option taxes, crediting moneys to the natural resources and outdoor recreation trust fund, modifying allocations of road use tax fund moneys, making appropriations, and including effective date, retroactive applicability, and applicability provisions.(Formerly SSB 1125.)

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 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 SSB1125

A bill for an act relating to state and local revenue and finances by modifying sales and use taxes, the charitable conservation contribution tax credit available against individual and corporate income taxes, the water service tax, property taxes, transit funding, and local option taxes, crediting moneys to the natural resources and outdoor recreation trust fund, making appropriations, and including effective date, retroactive applicability, and applicability provisions.(See SF 550.)

IA SSB3207

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.)

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 SF309

A bill for an act authorizing cities to establish self-supported entertainment areas.

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 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 SF2037

A bill for an act prohibiting counties and cities from regulating certain behavioral health and human services.

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