Iowa House Bill HSB734

Iowa 2023-2024 Regular Session

• Introduced: 3/6/24
• Refer: 3/6/24

Caption

A bill for an act repealing the excise tax on the handling of grain.(See HF 2657.)

Impact

If enacted, HSB734 will directly affect grain-handling operations and could provide cost savings for grain elevators, warehouses, and agricultural producers in Iowa. By removing this tax, the bill may incentivize local grain handling and potentially boost the agricultural economy within the state. However, the repeal could lead to decreased tax revenue for local governments, necessitating adjustments in their budgets or the implementation of alternative taxation mechanisms to make up for potential losses in revenue.

Summary

House Study Bill 734 (HSB734) proposes the repeal of the excise tax on the handling of grain, which is currently set at one-fourth of a mill per bushel on all grain handled in Iowa. The legislation seeks to amend Section 428.35 of the Code 2024, effectively discontinuing the tax that applies to various grains such as wheat, corn, barley, and soybeans. The excise tax revenue is typically distributed among local taxing authorities, which could impact funding for local services depending on how reliant those services are on this tax revenue.

Contention

Notable points of contention surrounding HSB734 could stem from the balance between supporting the agricultural industry and ensuring sufficient funding for local governments. Proponents of the bill might argue that eliminating the tax will stimulate growth within the agricultural sector, while opponents may raise concerns about the consequences for public services funded by local taxes. The discussions may also revolve around the implications for state authority over local tax matters, particularly in the context of broader tax policy.