Leah Courtney Senior Media Manager – Midwest | Official Website
Leah Courtney Senior Media Manager – Midwest | Official Website
NFIB Iowa is actively advocating for legislative reforms aimed at benefiting small businesses by pushing for lower taxes. Midway through the legislative session, three key pieces of legislation are under consideration.
Property tax reform, introduced by Senate Ways & Means Chair Dan Dawson and House Ways & Means Chair Bobby Kaufmann, proposes to streamline Iowa’s property tax system. The proposed reform introduces a 2% local government revenue cap, a measure requested by NFIB. It intends to counteract excessive local government spending, eliminate the rollback system, and equalize the valuation of property classes, excluding agriculture. This reform includes a new $25,000 exemption for residential property taxes and pledges $400 million in property tax relief by altering the funding model for school aid. NFIB endorses this legislation.
Risk-based taxation legislation seeks to reduce taxes on smoke-free products like nicotine pouches and heated tobacco products. These products are considered less harmful alternatives to traditional cigarettes. NFIB supports this initiative with the aim of encouraging the adoption of smoke-free options, which could lead to decreased smoking rates, reduced healthcare costs, and enhanced workforce productivity.
The unemployment insurance tax reform proposes significant changes to Iowa's current system. With Iowa's unemployment tax among the highest in the Midwest, the proposed legislation plans to decrease the taxable wage base from $39,500 to $19,500. The intention is to lower and simplify tax brackets, yielding employer savings of over $800 million while maintaining current benefits and ensuring the trust fund's stability. NFIB voices support for this measure as well.
NFIB Iowa’s advocacy reflects its commitment to easing the tax burden on small businesses in the state.