Proyectos de ley › 91.ª Asamblea General
Relating to the administration of the tax by the department of revenue by modifying provisions related to personal income, property, sales and use, motor fuel, and inheritance taxes, changing tax expenditure reviews, and including effective date and retroactive applicability provisions
Presentado por el comité Ways and Means del Senado
Proposed by the Department of Revenue · their explanation · all agency proposals
Dónde está ahora
- Hecho: Presentado18 de febrero de 2025
- Hecho: Subcomité19 de febrero de 2025
- Hecho: Comité del Senado18 de marzo de 2025
- Hecho: Lo aprueba el Senado13 de mayo de 202545–0
- Se saltó: Comité de la CámaraSe saltó
- Hecho: Lo aprueba la Cámara8 de mayo de 202584–0
- Hecho: A gobernador(a)27 de mayo de 2025
- Hecho: Firmado como ley6 de junio de 2025
HF 976 se hizo ley → La misma legislación se aprobó como HF 976, así que esta versión se dejó de lado. Ir a HF 976 ¿Qué es el embudo (funnel)?
Qué contiene
Resumen con IA Este proyecto de ley actualiza varias reglas de impuestos estatales para personas y empresas. Cambia cuánto ingreso pueden excluir ciertos agricultores de los impuestos, modifica las reglas del impuesto sobre las ventas para la construcción y los centros de datos, y actualiza cómo se gravan los ingresos de jubilación. Además, permite que las personas donen dinero a un fondo de cuidado de animales a través de sus declaraciones de impuestos y cambia las reglas sobre cuándo las personas deben hacer pagos de impuestos estimados.1
Lea la explicación oficial (en inglés)
This bill relates to the administration of the tax by the department of revenue by modifying provisions related to personal income, property, sales and use, motor fuel, inheritance tax, and changing tax expenditure reviews. DIVISION I —— DISCLOSURE OF TAX INFORMATION. The bill specifies and updates the circumstances the department of revenue (department) may disclose state tax return and audit information to law enforcement. The bill also makes conforming changes related to disclosure of state tax return information to the treasurer of state for purposes of determining ownership of abandoned property. The division takes effect upon enactment. DIVISION II —— ANNUAL REPORTING. The bill strikes the requirement that the department annually report to the general assembly the areas of recurrent taxpayer noncompliance with the rules of the department including any recommendations relating to the noncompliance. DIVISION III —— PROPERTY TAX —— EXTENSIONS. Under current law, a claimant may ask the director of the department, the county treasurer, or the director of the department of health and human services for an extension to claim a reimbursement for rent constituting property taxes in case of sickness, absence, or disability. The bill strikes the director of the department from involvement in the extension request by the claimant. Under current law, when issuing a refund for an erroneous property tax paid by a taxpayer, the taxpayer must have presented a claim of refund to the board of supervisors, or if appealed, a claim to the property assessment appeal or district court within two years of the final decision on the property taxes owed. Under the bill, a taxpayer is eligible to claim a refund for an erroneous tax if the taxpayer had previously appealed the claim for a refund of an erroneous tax to the director of revenue within two years of the director’s final decision. This provision takes effect upon enactment. DIVISION IV —— FARM TENANCY INCOME TAX EXCLUSION. Currently, an eligible individual may exclude income received by the individual pursuant to a farm tenancy covering real property held by the individual for 10 or more years, if the individual materially participated in a farming business for 10 or more years. The bill allows the eligible individual to exclude such income under such circumstances, if the individual materially participated in a farming business for 10 or more years in the aggregate.7(13). DIVISION V —— PASS-THROUGH ENTITIES.29.25. The division takes effect upon enactment and applies retroactively to January 1, 2024. DIVISION VI —— SALES TAX CHANGES. The bill makes changes to the collection of sales taxes on building materials, supplies, and equipment where an owner, contractor, subcontractor, or builder is also a retailer holding a sales and use tax permit. Under such circumstances, if a customer of the retailer purchases tangible personal property from the retailer, the bill provides that such property will not be subject to sales tax if the property will be subject to sales tax at resale at a later date or if the property will be subject to use tax at the time the retailer withdraws the property from inventory for use by the retailer in construction. The bill makes other related changes to enhance the readability of the provision. Under current law, a purchaser, user, and consumer of taxable property or services may be authorized to remit tax owed directly to the department instead of the tax being collected and paid by the seller. The bill specifies that in order to qualify for the direct pay tax permit such a taxpayer must accrue a tax liability of more than $8,000 on a monthly basis. Currently, such a taxpayer must accrue a tax liability of $4,000 on a semimonthly basis in order to qualify for the direct pay tax permit. DIVISION VII —— MOTOR FUEL TAXES.3(3)(a)(2).33. The bill allows the department to amend the initial distribution percentage due to a mistake, or if there is a late report filed by a retail dealer to the department, or the distribution percentage is not accurate. The bill changes the due date of a biannual tax return relating to electric fuel tax due in January by one day, and modifies the biannual tax period by one day. The bill allows a person who uses electric fuel for a nontaxable purpose to provide an exemption certificate to the license holder selling or dispensing the fuel, if the certificate is produced by the department. DIVISION VIII —— INHERITANCE TAX —— FUTURE CODE CHANGES DUE TO REPEAL. The bill changes numerous Code sections to reflect the repeal of the inheritance tax beginning for the estates of decedents dying on or after January 1, 2025. However, other provisions of Code chapter 450 relating to the inheritance tax have not been repealed. The division takes effect upon enactment and applies retroactively to the estates of decedents dying on or after January 1, 2025. DIVISION IX —— LUMP SUM DISTRIBUTION OF RETIREMENT INCOME. Under current law, commencing with tax years beginning on or after January 1, 2023, retirement income is not subject to Iowa individual income tax.5(8) at a rate of 25 percent of the federal tax rate imposed on the amount of the lump sum distribution. The bill provides that the taxation of a lump sum distribution from a retirement account is also exempt from state taxation by exempting the lump sum distribution for a person who is disabled, or 55 years of age or older, or who is the surviving spouse of an individual or is a survivor having an insurable interest in an individual who would have qualified for the exemption for the tax year.5(2) and (3). The division takes effect upon enactment and applies retroactively to tax years beginning on or after January 1, 2025. DIVISION X —— ESTIMATED TAX THRESHOLD. Under the bill, a taxpayer filing a return is required to make estimated tax payments if Iowa income tax liability can reasonably be expected to exceed $1,000 or more. Under current law, such a taxpayer filing a return is required to make estimated tax payments if Iowa income tax liability can reasonably be expected to exceed $200 or more. The division takes effect January 1, 2026, and applies to tax years beginning on or after that date. DIVISION XI —— TAX EXPENDITURE REVIEW. The bill specifies that the department administering a tax expenditure (tax credit) is not required to review the tax expenditure if the tax expenditure has been repealed or if a zero amount of the tax expenditure remains available to be awarded or claimed.11B (Code 2018).48 with the future repeal of the renewable chemical tax credit program. DIVISION XII —— LIMITATIONS ON SALES TAX EXEMPTIONS AND REFUNDS AND TRANSFERS TO THE ENERGY INFRASTRUCTURE FUND. The bill modifies the sales and use tax exemptions (exemptions) related to web search portal businesses and data center businesses (data centers). The division take effect upon enactment (effective date). Currently, the exemptions apply to the sale of computers and equipment for the maintenance and operation of a data center, the sale of backup power generation fuel, and the sale of electricity for use in the data center, without any limitations. The bill does not change the exemptions available for data centers that began operating prior to the effective date. The bill limits the exemptions for newly constructed data centers or additions upon existing property completed on or after the effective date, to the first 10 years of operation, if the property is located entirely or partly within a city having a population of more than 30,000. The bill limits the exemptions for newly constructed data centers or additions upon existing property completed on or after the effective date, to the first 15 years of operation, if the property is not located entirely or partly within a city having a population of more than 30,000. Currently, the exemptions apply from the date the initial investment occurs or the initiation of site preparation activities. The bill defines “initiation of site preparation activities”. The bill requires a data center to register with the department of revenue beginning January 31, 2026, and file an annual report with the department describing the backup power generation fuel and electricity used to obtain the exemption, and describe any other information the department of revenue may require. The bill requires a data center to present an exemption certificate, issued annually to the data center after filing the annual report, to the retailer selling the backup power generation fuel and the electricity to the data center. The bill provides that a business leasing space to operate a data center as a lessee is eligible to qualify for an exemption. A data center includes the lease of a business facility leased by an entity operating a data center at the location of the data center. The bill specifies the exemptions apply from the beginning date of the initial lease term.46A. DIVISION XIII —— ANIMAL CARE ORGANIZATION CHECKOFF. The bill provides that taxpayers filing individual income tax returns will be allowed to designate $1 or more on the return to be paid to the animal care organization fund (fund). The bill creates the fund in the state treasury under the control of the department of agriculture and land stewardship. The bill requires the department of revenue to annually remit moneys collected from the checkoff to the fund.12E, which allows no more than four checkoffs on the individual tax return form and provides for the automatic repeal of the two checkoffs receiving the least in contributions over a two-year period. Currently, there are two checkoffs that appear on the individual income tax return, the checkoff for the fish and game protection fund and the checkoff for the child abuse prevention program fund. Moneys in the fund shall be used by an animal care organization committee (committee) to provide grants to animal care organizations. The committee, which is created within and administered by the department of agriculture and land stewardship, shall consist of three members: one member appointed by the secretary of agriculture who is an animal warden, one member appointed by the secretary of agriculture from the executive director or the director’s designee of an animal rescue organization in this state, and a veterinarian appointed by the president of the Iowa veterinarian medical association. The bill defines “animal care organization” to mean an animal shelter operating pursuant to a certificate of registration or a renewed certification of operation issued by the department of agriculture and land stewardship under Code chapter 162 (animals in commercial establishments) that has adopted a no-kill policy, except when medically necessary. The bill defines “medically necessary”.
Por qué importa. Los contribuyentes podrían ver cambios en la forma en que solicitan reembolsos de impuestos sobre la propiedad, en cómo se excluyen los ingresos por arrendamiento de granjas de los impuestos y en cómo se tratan ciertas distribuciones de jubilación. Las empresas y los contratistas enfrentarán nuevas reglas con respecto a la recaudación del impuesto sobre las ventas en materiales de construcción y la elegibilidad para permisos de pago directo de impuestos. Se estima que la exención para ciertas distribuciones de jubilación en suma global disminuirá los ingresos del General Fund en $11,000 a partir del año fiscal 2026.2
Cambiado después por la enmienda S-3172; vea Enmiendas.
Texto completo del proyecto (en inglés) · Qué cambió antes de aprobarse3
Senate subcommittee
Named March 4, 2025 (as SSB 1156). On March 5, 2025 it recommended passage.
Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part
Nota fiscal
Less revenue: up to $11,000 Compare con otros proyectos
Resumen con IA This bill modifies various tax provisions and sets expiration dates for certain sales tax exemptions used by data centers and web search businesses. It also exempts lump sum distributions from retirement accounts from state taxation for disabled individuals, those aged 55 or older, or surviving spouses. These changes are estimated to decrease General Fund revenue by $11,000 beginning in fiscal year 2026. The fiscal impact of the sales tax and property tax changes for data centers cannot be fully estimated from the provided information. (en inglés)4
Lea la nota fiscal (en inglés)
Description
House File 976 modifies tax provisions by the Iowa Department of Revenue (IDR) related to personal income tax, property tax, sales and use tax, motor fuel tax, and inheritance tax and changes tax expenditure reviews.
The following divisions of the Bill have no fiscal impact:
- Division I — Disclosure of Tax Information. Division I takes effect upon enactment.
- Division II — Annual Reporting.
- Division III — Property Tax — Section 9 of Division III amending Iowa Code section 445.60 takes effect upon enactment.
- Division IV — Farm Tenancy Income Tax Exclusion.
- Division V — Pass-Through Entities. Division V takes effect upon enactment and is retroactively effective to January 1, 2024.
- Division VI — Sales Tax Changes.
- Division VII — Motor Fuel Taxes.
- Division VIII — Inheritance Tax — Future Code Changes Due to Repeal. Division VIII takes effect upon enactment and applies retroactively to January 1, 2025, for the estates of decedents dying on or after January 1, 2025.
- Division X — Estimated Tax Threshold. Division X takes effect January 1, 2026, for tax years beginning on or after that date.
- Division XI — Tax Expenditure Review — Section 65 of Division XI amends Section 169 of 2017 Iowa Acts, chapter 29 (Substantive Code Editor’s Act), to take effect on July 1, 2039. The following divisions of the Bill have a fiscal impact and are described in further detail below:
- Division IX — Lump Sum Distribution of Retirement Income. Division IX takes effect upon enactment and is retroactive for tax years beginning on or after January 1, 2025.
- Division XII — Limitations on Sales Tax Exemptions and Refunds and Transfers to the Energy Infrastructure Revolving Fund. Division XII takes effect upon enactment. Division IX — Lump Sum Distribution of Retirement Income
Description
Division IX of the Bill does the following:
- Exempts a lump sum distribution from a retirement account from State taxation for a person who is disabled, who is 55 years of age or older, or who is the surviving spouse of an individual or a survivor having an insurable interest in an individual who would have qualified for the exemption for the tax year.
- Excludes the lump sum distribution exempt from State taxation in the Bill from the individual income tax filing calculation thresholds in Iowa Code section 422.5.
- Takes effect upon enactment and applies retroactively to tax years beginning on or after January 1, 2025.
Background
2022 Iowa Acts, House File 2317 (Income Tax Rate Reduction and Exemptions Act), exempted all income defined as retirement income from the State individual income tax for disabled taxpayers and taxpayers aged 55 years or older. The exemption also applies to a deceased person’s retirement income that is received by a surviving spouse or a person with an insurable interest in the deceased person. The change did not alter the full retirement pay exemption available to retired military personnel, which is not based on age or disability. House File 2317 also excluded retirement income from the calculation of Iowa’s universal and age-based low-income full exemptions from individual income tax.
26 U.S.C. §402(e) controls federal taxability of the beneficiary of employees’ trusts and lump-sum distributions and defines the laws for federal taxation of these transfers.
Assumptions
- In available data from the three most recent tax years (TYs), TY 2020, TY 2021, and TY 2022, the total amount of lump-sum tax reported averaged $20,000 per tax year, with an average of 92 households per year reporting income.
- The IDR estimates that out of the total of $20,000 on average per tax year, approximately $11,000 on average per tax year would have been eligible for the tax exemption under Division IX of the Bill.
Fiscal Impact
Division IX of the Bill will decrease General Fund revenue by $11,000 beginning in FY 2026, increasing annually by the rate of growth in Iowa personal income.
Division XII — Limitations on Sales Tax Exemptions and Refunds and Transfers to the Energy Infrastructure Revolving Fund.
Description
Division XII pertains to sales tax exemptions, sales tax refunds, and property tax exemptions. The Division establishes an expiration date for the current sales and use tax exemption for backup power generation fuel and electricity purchased by web search portals, web search portal businesses, and data center businesses. The exemption expires 10 years after relevant new construction in a city with a population of more than 30,000 and expires 15 years after relevant new construction outside of a city with a population of more than 30,000. The Division requires sales and use tax received after the expiration of the sales and use tax exemption to be deposited in the Energy Infrastructure Revolving Loan Fund. The Division allows a data center business that leases a data center to qualify for the sales and use tax exemption or refund related to backup power generation fuel, electricity, computers, and equipment.
Eligible businesses are required to register and file a report with the IDR before receiving the exemption.
The Division expands the property tax exemption under Iowa Code section 427.1(37) to include instances where a data center is leased by an entity operating a data center business. This provision extends eligibility for property tax exemptions to leased facilities, whereas previously, only owner-occupied data centers qualified.
Division XII of the Bill takes effect upon enactment.
Background
Under current law, there is no expiration of the sales and use tax exemption for backup power generation fuel and electricity purchased by a web search portal, a web search portal business, or a data center for maintenance and operation.
Data centers ineligible for a sales tax exemption may receive a 50.0% sales tax refund if certain conditions are met. The refund is available at 5.0% of the sales price. Leased data centers are not eligible for a sales tax refund related to backup power generation fuel, electricity, computers, and equipment or a property tax exemption related to computers and equipment. The Energy Infrastructure Revolving Loan Fund provides financial assistance for the development and construction of energy infrastructure related to electric or gas generation, electric grid modernization, energy sector workforce development, emergency preparedness, biomass, biogas, renewable natural gas, innovative technologies, and alternative fuel vehicle infrastructure. As of March 20, 2025, the Fund balance was $13.7 million.
Assumptions
- Businesses receiving tax exemptions and refunds will remain compliant with necessary statutes to continue receiving the exemptions and refunds throughout the projection period.
- Annual inflation is 2.3% during the projection period.
- The average value of a data center is $160.8 million.
- The Division goes into effect July 1, 2025.
Sales Tax Exemption and Sales Tax Refunds
- Backup power generation fuel and electricity purchases by web search portals, web search portal businesses, and data center businesses are assumed to be comparable for purposes of this estimate.
- Information technology infrastructure composes 80.0% of a data center’s value.
- Each year, beginning in the fifth year after construction, 25.0% of a data center’s information technology infrastructure will be replaced.
- The value of purchases of backup power generation fuel, electricity, computers, and equipment is made proportionally to minimum investment requirements to qualify for sales and use tax exemptions and refunds.
- Purchases of backup power generation fuel are included in electricity costs.
- The first sales and use tax-related equipment purchases will occur in FY 2026. The first sales and use tax-related electricity purchases will occur in FY 2027.
- Data centers eligible for the sales and use tax exemption average a 100-megawatt capacity. Server operational time in data centers with a 100-megawatt capacity or greater averages 45.0% and consumes 394.2 million kilowatt-hours per year.
- Data centers eligible for the refund in Iowa Code section 423.4(8) average a 10-megawatt capacity. Server operational time in data centers with between 1-megawatt capacity and 100-megawatt capacity averages 20.0% and consumes 17.5 million kilowatt-hours per year.
- Data centers eligible for the refund in Iowa Code section 423.4(7) average a 1-megawatt capacity. Server operational time in data centers with 1-megawatt capacity or less averages 20.0% and consumes 1.75 million kilowatt-hours per year.
- The price of electricity is $0.07 per kilowatt-hour for industrial customers.
- One data center under each of the following Iowa Code sections will become eligible in FY 2026 for a sales and use tax exemption or refund: Iowa Code sections 423.3(95), 423.4(7), and 423.4(8). The data center eligible for an exemption is in a city with a population of more than 30,000.
- There is no new construction or addition to a relevant property under Iowa Code sections 423.3(92) and 423.3(93) for web search portals or web search portal businesses during the projection period.
- Secure an Advanced Vision for Education (SAVE) refunds are 1.0% of taxable expenditures. Local Option Sales Tax (LOST) distributions are estimated to be 0.97% of taxable expenditures.
Property Tax Exemption
- The first property tax impact will occur beginning in the second half of assessment year (AY) 2027 and apply to FY 2029 property tax receipts.
- Data center construction is estimated to be completed after two years.
- The industrial property consolidated tax rate is $30.52937 per $1,000 of taxable value in FY 2024. This rate will continue in future years.
- Industrial property has a 90.0% assessment limitation.
- The State Foundation Aid formula provides a General Fund backfill of $5.40 per $1,000 of taxable value.
- One data center will become eligible for the property tax exemption under Iowa Code section 427.1(37) in FY 2026. The data center is in a city with a population of more than 30,000.
Fiscal Impact
Division XII of the Bill is estimated to decrease revenue to the General Fund, the SAVE Fund, and local governments by the amounts shown in Figure 1.
Figure 1 — Division XII Fiscal Impact (in Millions) The fiscal impact related to the removal of the sales and use tax exemptions for backup power generation fuel and electricity in 10 years and 15 years for web search portals, web search portal businesses, and data center businesses is estimated to increase revenue to the Energy Infrastructure Revolving Loan Fund by approximately $1.7 million annually beginning in FY 2036.General Fund SAVE Local Revenue FY 2026 -6.7$ -1.3$ -1.3$ FY 2027 -1.5 -0.3 -0.3 FY 2028 -1.5 -0.3 -0.3 FY 2029 -2.3 -0.3 -2.8 FY 2030 -5.2 -0.7 -5.5
Fiscal Impact
The total fiscal impact of HF 976 is estimated to reduce State revenue by the amounts shown in Figure 2.
Figure 2 — State Revenue Impact (in Millions) The Bill is estimated to reduce local government revenue by the amounts shown in Figure 3. Figure 3 — Local Government Revenue Impact (in Millions)
Sources
- Iowa Department of Revenue
- Iowa Department of Transportation
- Legislative Services Agency analysis
El cálculo no cambió
5- Final Fiscal Note — Department of Revenue, Omnibus Tax · 6 de junio de 2025 · $11,000
- Department of Revenue, Omnibus Tax · 27 de marzo de 2025 · $11,000
- Department of Revenue, Omnibus Tax · 26 de marzo de 2025 · $11,000
Lo que cambia del Código de Iowa (Iowa Code)
Modifica§12D.9§12I.10§12I.8§16.177§2.48§321.47§331.602§331.756§421.19§421.27§421.60§422.16§422.20§422.25C§422.27§422.5§422.7§422.72§422.75§423.2§423.2A§423.3§423.36§423.4§423.43§425.20§427.1§445.60§452A.15§452A.3§452A.33§452A.41§452A.44§496C.14§524.805§541A.2§602.8102§633.21§633.31§633.356y 9 más
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91st General Assembly