Better, Stronger, More Conservative

This has been the most pro-taxpayer legislative session in recent history and will create a better and brighter future for Iowa.

When legislators returned to the Capitol in January, ITR encouraged them to "think big and don't back down" and that it was "time to seize the opportunity to create a better and brighter future for Iowa."

Now, after the legislative session has adjourned, did it happen? Absolutely!

Simply put, this year has been the most pro-taxpayer legislative session in recent history. Here is a quick summary of how reforms passed this year will make Iowa a better, stronger, and more conservative state for future generations:

Taxpayer Victories:

Income Tax Reform

HF 2317
Passed Senate 32-16 on February 24
Passed House 61-34 on February 24
Signed by the governor on March 1

When you paid your taxes this year, Iowa's highest individual income tax rate was 8.53%, the ninth-highest rate in the country.

State government has enough money. Rainy-day funds aren't just full, they are bursting at the seams. One of them, the Taxpayer Relief Fund, currently has a balance of almost TWO BILLION DOLLARS.

Clearly, Iowans were overpaying on their taxes!

This substantial overcollection of tax dollars necessitated a major reform to the Iowa tax code.

Governor Reynolds and the legislature worked to pass the most significant tax relief legislation in state history. When fully implemented, the reform will:

• Create a 3.9% flat individual income tax rate
• Eliminate state income taxes on retirement income in 2023
• Set a path to reduce the corporate income tax from 9.8% to 5.5%
• Phase-out special tax incentives in the corporate tax code

Individual income tax rates will be reduced as follows:

• 6.0 percent (2023)
• 5.7 percent (2024)
• 4.82 percent (2025)
• 3.9 percent (2026)

Why Is This a Big Deal?

First, you, your neighbors, and every other Iowan will have a lower tax bill and keep more money in their bank account. One estimate states the average Iowa family will save around $1,600 every year.

Second, Iowa will become more attractive to businesses and individuals. The state can become a destination for those looking to relocate and keep current residents as the world embraces remote technology.

Third, it is our name -- IOWANS FOR TAX RELIEF. As an ITR member, you helped influence this outcome. A few weeks before the bill passed, Governor Reynolds thanked ITR and said we are "incredible, indispensable partners in this ongoing effort." That ongoing effort achieved a fantastic victory: The most significant tax reform in Iowa's history.

Unemployment Reform

HF 2355
Passed House 58-37 on March 23
Passed Senate 30-14 on April 26
Sent to the governor 

Iowa weathered the economic storm brought upon us by COVID better than any other state. However, there are still help wanted signs and businesses reducing hours or closing because they can't find workers.

To help solve this problem, a major unemployment overhaul was passed, bringing us much more in line with other states. This reform:

1. Reduces regular unemployment weeks from 26 to 16 weeks, and reduces unemployment weeks from plant closures from 39 to 26 weeks
2. Adds a definition of employee "misconduct"
3. Reduces the percentage of unemployment benefits one receives each week a person refuses a job offer

Why does this matter?

This reform will reduce the amount of time individuals spend on unemployment and help get Iowans back to work faster. Instead of having generous, big-labor benefits, the system will now be more responsible and recognize our economy's need for workers.

Open Records Request Costs

SF 2355 
Passed Senate 40-0 on February 23
Passed House 93-0 on March 24
Signed by the governor on May 2

Accessing open records has become problematic in some situations. Under the guise of "legal review," some local governments were charging exorbitant fees.

This new law states that if copies of public records can be provided in less than 30 minutes, the documents should be free except for copying costs. If it takes longer than 30 minutes, the cost should be reasonable.

Why does this matter?

Citizens need to have access to open records to hold their government accountable. Iowans deserve to know precisely how elected officials and their employees use tax dollars.

Home-Based Business Protections