Iowa SF 496: A bill for an act relating to state and local government revenue and finance by requiring the legislative services agency to conduct a biennial tax expenditure study and report to the general assembly and the legislative tax expenditure committee, making the availability of tax expenditures in future fiscal years subject to approval by the general assembly, and limiting appropriations for certain property tax credits in future fiscal years.

Bill Text

Senate
File
496
-
Introduced

SENATE
FILE
496

BY
DANIELSON

A
BILL
FOR

An
Act
relating
to
state
and
local
government
revenue
and
1

finance
by
requiring
the
legislative
services
agency
to
2

conduct
a
biennial
tax
expenditure
study
and
report
to
3

the
general
assembly
and
the
legislative
tax
expenditure
4

committee,
making
the
availability
of
tax
expenditures
in
5

future
fiscal
years
subject
to
approval
by
the
general
6

assembly,
and
limiting
appropriations
for
certain
property
7

tax
credits
in
future
fiscal
years.
8

BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
9

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2194SS
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S.F.
496

DIVISION
I
1

TAX
EXPENDITURE
STUDY
2

Section
1.
NEW
SECTION

.
2A.9
Tax
expenditure
study
and
3

report.
4

1.
For
purposes
of
this
section,
“tax
expenditure”
means
the
5

same
as
defined
in
section
2.48,
subsection
1,
paragraph
“a”
.
6

2.
Beginning
in
2018,
and
every
even-numbered
year
7

thereafter,
the
legislative
services
agency
shall
conduct
a
8

study
and
prepare
a
written
report
on
the
fiscal
impact
that
9

tax
expenditures
have
on
state
and
local
government
capacity
10

to
raise
revenue.
The
study
shall
examine
tax
expenditures
11

related
to
the
following:
12

a.
The
individual
income
tax
imposed
in
chapter
422,
13

division
II.
14

b.
The
corporate
income
tax
imposed
in
chapter
422,
division
15

III.
16

c.
Tax
credits
available
against
the
franchise
tax
imposed
17

in
chapter
422,
division
V,
the
insurance
companies
tax
imposed
18

in
chapter
432,
and
the
moneys
and
credits
tax
imposed
in
19

section
533.329.
20

d.
The
sales
and
use
taxes
imposed
in
chapter
423.
21

e.
Property
taxes
levied
by
or
on
behalf
of
political
22

subdivisions.
23

3.
a.
The
2018
study
shall
examine
the
relevant
tax
24

expenditures
for
the
most
recent
year
for
which
complete
tax
25

expenditure
data
is
available.
26

b.
Each
subsequent
study
shall
examine
the
relevant
tax
27

expenditure
data
for
the
year
or
years
for
which
complete
28

tax
expenditure
data
is
available
since
the
last
complete
29

year
that
was
the
subject
of
a
previous
report.
However,
if
30

there
is
not
a
new
year
for
which
complete
tax
expenditure
31

data
is
available,
the
study
shall
examine
the
available
tax
32

expenditure
data
for
the
year
following
the
last
year
for
which
33

complete
tax
expenditure
data
was
included
in
the
previous
34

report.
35

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S.F.
496

4.
The
legislative
services
agency
shall
submit
the
written
1

report
to
the
general
assembly
and
the
chairpersons
of
the
2

legislative
tax
expenditure
committee
by
January
31,
2019,
and
3

by
January
31
of
each
odd-numbered
year
thereafter,
containing
4

the
results
of
the
study
conducted
during
the
previous
year.
5

5.
The
department
of
revenue
and
any
other
state
or
local
6

agency
shall
cooperate
with
the
legislative
services
agency
in
7

providing
the
information
necessary
to
complete
each
study.
8

DIVISION
II
9

TAX
EXPENDITURE
LIMITATION
10

Sec.
2.
NEW
SECTION

.
421C.1
Tax
expenditure
defined.
11

Any
reference
to
“tax
expenditure”
in
this
chapter
includes
12

all
of
the
following:
13

1.
Withholding
tax
credits.
14

a.
The
accelerated
career
education
program
job
credit
15

allowed
under
section
260G.4A.
16

b.
The
new
jobs
credit
from
withholding
allowed
under
17

section
15A.7,
or
section
15E.197,
Code
2014,
or
section
18

260E.5.
19

c.
The
targeted
jobs
withholding
tax
credit
allowed
under
20

chapter
403.19A.
21

2.
Tax
credits.
22

a.
The
agricultural
assets
transfer
tax
credit
allowed
under
23

sections
16.80
and
422.11M
and
section
422.33,
subsection
21.
24

b.
The
custom
farming
contract
tax
credit
allowed
under
25

sections
16.81
and
422.11M
and
section
422.33,
subsection
21.
26

c.
The
farm
to
food
donation
tax
credit
allowed
under

27

chapter
190B,
section
422.11R,
and
section
422.33,
subsection
28

30.

29

d.
The
charitable
conservation
contribution
tax
credit

30

allowed
under
section
422.11W
and
section
422.33,
subsection

31

25.

32

e.
The
school
tuition
organization
tax
credit
allowed
under
33

section
422.11S
and
section
422.33,
subsection
28.
34

f.
The
personal
exemption
credits
allowed
under
section
35

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S.F.
496

422.12,
subsection
2,
paragraph
“a”
.
1

g.
The
tuition
and
textbook
tax
credit
allowed
under
section
2

422.12,
subsection
2,
paragraph
“b”
.
3

h.
The
volunteer
fire
fighter
and
emergency
medical
services
4

personnel
tax
credit
allowed
under
section
422.12,
subsection
5

2,
paragraph
“c”
.
6

i.
The
reserve
peace
officer
tax
credit
allowed
under
7

section
422.12,
subsection
2,
paragraph
“d”
.
8

j.
The
adoption
tax
credit
allowed
under
section
422.12A.
9

k.
The
child
and
dependent
care
tax
credit
allowed
under
10

section
422.12C.
11

l.
The
early
childhood
development
tax
credit
allowed
under
12

section
422.12C.
13

m.
The
earned
income
tax
credit
allowed
under
section
14

422.12B.
15

n.
The
geothermal
heat
pump
tax
credit
allowed