Bills › 91st General Assembly
Relating to state and local taxation and regulations by changing certain tax credits, cigarette and tobacco-related regulations, and certain city budget certification deadlines, providing for penalties, and including retroactive applicability and effective date provisions
Sponsored by the House Ways and Means Committee
Proposed by the Department of Revenue · their explanation · all agency proposals
Where it is now
- Done: IntroducedJanuary 28, 2025
- Done: SubcommitteeJanuary 28, 2025
- Done: House committeeMay 12, 2025
- Done: Passes the HouseMay 14, 202581–0
- Skipped: Senate committeeSkipped
- Done: Passes the SenateApril 16, 202547–0
- Done: To the GovernorMay 23, 2025
- Done: Signed into lawJune 6, 2025
SF 612 became law → The same legislation passed as SF 612, so this version was set aside. Go to SF 612 What’s a funnel?
What’s in it
This bill relates to state and local taxation and regulations. DIVISION I —— CIGARETTE AND TOBACCO-RELATED REGULATIONS. The bill specifies that cities and counties may approve tobacco-related retail permits but the department shall issue the permit to the applicant on behalf of the city or county. The bill requires the city or county to use the electronic portal of the department to process retail permit applications. If a city or county is unable to use the electronic portal of the department, the city or county may request permission from the director of revenue to process retail applications by another method.
Read the full explanation
The bill provides that all tobacco-related permit fees shall be collected by the department, and the department shall credit the fees to the city or county where the permit is in effect. The bill specifies that a person who fails to timely file or submit a required return, report, or other documentation upon which no tax is shown due is subject to a penalty in the amount of $50 for each occurrence. The bill requires cigarette and tobacco tax returns, reports, invoices, bonds, and payments to be filed with or submitted to the department electronically beginning on or after July 1, 2025. The bill provides any report, return, remittance, or other documentation required to be submitted electronically that is submitted in a manner other than in an electronic format shall be considered not a valid submission. However, the bill does allow a person required to make a submission electronically to request permission from the director of revenue to make the submission in another manner.57 (submitting documents —— alternative method) in subchapter IV. DIVISION II —— RESEARCH ACTIVITIES TAX CREDIT. The bill modifies the research activities tax credit available against the individual and corporate income taxes.1. The bill provides that a person engaged in agriscience research does qualify for the credit. The bill defines “agriscience research”. The division applies retroactively to tax years beginning on or after January 1, 2017, for tax years beginning on or after that date. DIVISION III —— CITY BUDGET CERTIFICATION DEADLINE. The bill defines “qualified city” to mean a city in this state having a population between 20,400 and 20,500 persons, according to the 2020 federal decennial census. The bill allows a qualified city that failed to certify a budget as required by law to nevertheless comply with the budget deadline requirements by certifying the budget on or before July 1, 2025. The division takes effect upon enactment.
From the explanation printed with the bill as introduced, written by the Legislative Services Agency. Changed since by amendments H-1329, H-1328; see Amendments. Full bill text · What changed before it passed
House subcommittee
Named January 28, 2025 (as HSB 90). On February 12, 2025 it recommended passage.
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Fiscal note
Minimal Compare with other bills
The creation of a $50 penalty for the failure to timely submit certain documentation to the IDR in Division I of the Bill may increase revenue to the General Fund; however, this is anticipated to be minimal.
- Final Fiscal Note — Cigarette and Tobacco Taxes, Permits, and Reports · June 6, 2025
- Cigarette and Tobacco Taxes, Permits, and Reports · May 14, 2025
- Cigarette and Tobacco Taxes, Permits, and Reports · May 13, 2025
Nonpartisan cost estimates from the Legislative Services Agency’s Fiscal Services Division. The newest is first. Reading a fiscal note
Iowa Code it changes
Creates§453A.57
Amends§422.10§422.33§453A.1§453A.13§453A.14§453A.15§453A.16§453A.17§453A.18§453A.23§453A.24§453A.28§453A.35§453A.39§453A.40§453A.45§453A.46§453A.47A§453A.52§453A.52B§453A.52D§453A.6§453A.8§453D.5
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Lobbying
2 for · 0 against · 14 undecided · Who →
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91st General Assembly
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