Hunter
05/18/21
Statehouse Republicans have reportedly come to an agreement on tax policies and mental health funding after weeks of negotiations, indicating that the 2021 Iowa legislative session is nearing an end.
The Gazette reports that the Senate passed the measure Monday night and it now heads to the House.
Among the bullet points in the legislation are the removal of state revenue triggers that would have to be reached before additional tax cuts would be implemented. The removal guarantees that the tax cuts will go into effect in 2023.
Mental health funding will be shifted from local property tax revenue to the state’s general fund. In addition, state inheritance tax will be phased out, and any COVID 19 grant monies or federal relief loans awarded to businesses will be tax-free.
The legislation also phases out the backfill payments to cities, counties and schools to make up for revenue lost when commercial and industrial property tax rates were cut by 10 percent. Democrats pushed back on this part of the bill, saying that without those payments, those entities may be forced to raise property taxes.
In other Senate action, they passed a bill that would protect law enforcement officers from certain lawsuits under the form of qualified immunity, and changes rioting charges from an aggravated misdemeanor to a Class D Felony. The House will now consider the bill before it goes to the Governor.