Overview / Major Events
Big pieces of legislation are starting to move, particularly in the Senate, where debate focused on a comprehensive new approach to prosecute instances of work comp fraud and passage of a tax reform package that a new fiscal analysis shows would reduce individual income tax collections in Iowa over one billion dollars.
Also, the Governor released her annual list of appointees to Iowa’s numerous boards and commissions. That list contains some familiar names to readers of this newsletter and those people are highlighted below. The Senate now has until April 15 to act on these appointments (and confirmation requires a 2/3 vote of the Senate’s 50 members).
Senate Passes $1.3 Billion Income Tax Reduction
On Wednesday night the Iowa Senate passed SF 2383 (successor to SSB 3197), a comprehensive tax reform bill that, according to an analysis by the Legislative Services Agency, will reduce individual and corporate income taxes in Iowa by nearly $1.3 billion by 2023. Here are the highlights from the fiscal analysis (by tax year):
Individual Income Tax Revenue (dollars in millions):
TY 2019 TY 2023
Current Law: $4,071.5 $4,545.2
Proposed Law: $3,375.0 $3,513.7
Difference: -$696.2 -$1,031.5
Percentage: -17.1% -22.7%
Corporate Income Tax Revenue (dollars in millions):
TY 2019 TY 2023
Current Law: $444.3 $504.6
Proposed Law: $386.8 $239.8
Difference: -$57.5 -$264.8
Percentage: -12.9% -52.5%
Governor Reynolds appoints former Speaker Kraig Paulsen to DOT Commission
Today Governor Reynolds made public her appointments to Iowa’s hundreds of boards and commissions and prominent among those is the name of former Iowa House Speaker Kraig Paulsen who has been selected to serve on the Transportation Commission (which overseas state spending on the state’s transportation network). During his legislative career, Paulsen was frequently a champion for investments in the state’s transportation infrastructure. In fact, one of his highest priorities in his last year as House Speaker was passage of a 10-cent a gallon increase in the state’s fuel tax.
Work Comp Fraud legislation heads to the House
A number of interesting bills passed in the House and Senate this week in addition to the Senate’s tax overhaul, chief amongst them was SF 2305, a priority for Senate Commerce Chair Jake Chapman to crack down on fraud committed against work comp insurance carriers:
Efforts on Behalf of Community Bankers of Iowa: