The Second Regular Session of the 88th Iowa General Assembly officially began at 10:00 am on Monday, January 13th, 2020. Marion Economic Development Corporation leverages its relationship with Professional Developers of Iowa to stay informed on the latest happenings in Des Moines. This relationships gives us access to PDI’s contract lobbyists who advocate important business topics at the statehouse.
On Tuesday, January 14th, the second day of the Legislative Session (as is the custom), Governor Reynolds delivered her Condition of the State address to the Iowa Legislature, which included her Budget Recommendations. You can find information from the Governor’s office HERE.
The Governor’s budget is also built around the centerpiece of her Condition of the State Address, the Invest In Iowa Act, the boldest initiative she has ever brought before the Iowa General Assembly. The proposal is being drafted now, so we don’t know all the details, but the broad strokes are these:
- Increase the State Sales Tax by 1%, raising an estimated $540 million per year
- Fully fund the Natural Resources and Outdoor Recreation Trust Fund that voters approved in 2010
- Provide an overall tax reduction for Iowans
- Cut individual income taxes by an average of 10%, lowering the highest bracket from 8.5% to 5.5% by 2023
- Reduce property taxes by lowering the per capita county mental health levy from $47.28 to $12.50, resulting in $771 million less in collected property taxes
- Increase the Early Childhood Development and Child and Dependent Care tax credit by doubling the maximum net income amount for eligibility from $45,000 to $90,000
- Eliminate the triggers from a previous tax cut bill – Instead of requiring 4% revenue growth for the tax cut to take effect, future tax cuts would be locked in
Throughout the legislative session, use PDI’S Bill Tracker to stay informed on key bills that PDI monitors.