Below is a brief update on the past week’s happenings at the Iowa legislature specifically in regards to economic development issues. Information on all bills, amendments, and floor action can be
found on the Iowa General Assembly website at: www.legis.iowa.gov. We have also included links to the bills mentioned below.
Property Tax
HF 2274, is a compromise bill brokered between House Republicans and the Governor. The new bill combines aspects of both original bills (HSB 500 and HSB 519). The bill includes the House of Representatives provision to move the School Foundation Aid from local property taxes onto State General Fund dollars. The bill also includes rollback of 5% a year over 8 years as well as a 15% exemption for properties under $400,000 valuation in order to bring more relief to smaller businesses sooner. The bill includes the same spending limitations for local government as both bills originally included and a 2% cap on the rate at which taxes can increase. The bill passed out of committee on Wednesday and should see action on the House floor as early as next week.
Tax Increment Financing (TIF)
HSB 540 and SSB 3118 were discussed in subcommittee meetings this past week. Both bills are aimed at limiting TIF, although the Senate bill is more measured in its approach.
Economic Development Programs
SSB 3110, introduced by the Iowa Economic Development Authority overhauls and cleans up several aspects of existing economic development programs and makes an effort to create a new funding stream for economic development incentives. The subcommittee met for the first time this past week regarding the bill.
Chamber members mark your calendar for next week’s Government Relations meeting with guest speaker Rep. Jeremy Taylor. The meeting will be on Friday, February 17th at 7:00 a.m. in the lower level conference room at the Chamber of Commerce.










