Bill
Bill > HF1052
IA HF1052
IA HF1052A bill for an act relating to state and local taxation and regulations by changing certain tax credits, cigarette and tobacco-related regulations, and certain city budget certification deadlines, providing for penalties, and including retroactive applicability and effective date provisions.(Formerly HSB 90.)
summary
Introduced
05/13/2025
05/13/2025
In Committee
Crossed Over
Passed
Dead
Introduced Session
91st General Assembly
Bill Summary
This bill relates to state and local taxation and regulations. DIVISION I —— CIGARETTE AND TOBACCO-RELATED REGULATIONS. The bill specifies that cities and counties may approve tobacco-related retail permits but the department shall issue the permit to the applicant on behalf of the city or county. The bill requires the city or county to use the electronic portal of the department to process retail permit applications. If a city or county is unable to use the electronic portal of the department, the city or county may request permission from the director of revenue to process retail applications by another method. The bill provides that all tobacco-related permit fees shall be collected by the department, and the department shall credit the fees to the city or county where the permit is in effect. The bill specifies that a person who fails to timely file or submit a required return, report, or other documentation upon which no tax is shown due is subject to a penalty in the amount of $50 for each occurrence. The bill requires cigarette and tobacco tax returns, reports, invoices, bonds, and payments to be filed with or submitted to the department electronically beginning on or after July 1, 2025. The bill provides any report, return, remittance, or other documentation required to be submitted electronically that is submitted in a manner other than in an electronic format shall be considered not a valid submission. However, the bill does allow a person required to make a submission electronically to request permission from the director of revenue to make the submission in another manner. The bill directs the Code editor to place new Code section 453A.57 (submitting documents —— alternative method) in subchapter IV. DIVISION II —— RESEARCH ACTIVITIES TAX CREDIT. The bill modifies the research activities tax credit available against the individual and corporate income taxes. Currently, a person does not qualify for the tax credit if the person is engaged in agricultural production as defined in Code section 423.1. The bill provides that a person engaged in agriscience research does qualify for the credit. The bill defines “agriscience research”. The division applies retroactively to tax years beginning on or after January 1, 2017, for tax years beginning on or after that date. DIVISION III —— CITY BUDGET CERTIFICATION DEADLINE. The bill defines “qualified city” to mean a city in this state having a population between 20,400 and 20,500 persons, according to the 2020 federal decennial census. The bill allows a qualified city that failed to certify a budget as required by law to nevertheless comply with the budget deadline requirements by certifying the budget on or before July 1, 2025. The division takes effect upon enactment.
AI Summary
This bill addresses several key areas of state taxation and regulation, primarily focusing on cigarette and tobacco-related regulations, research activities tax credits, and a specific city budget certification deadline. First, the bill mandates that all cigarette and tobacco-related permits, reports, tax returns, and payments must be submitted electronically beginning July 1, 2025, with provisions for requesting alternative submission methods. The bill also introduces a $50 penalty for failing to timely file or submit required documentation. Second, the bill modifies the research activities tax credit to allow businesses engaged in "agriscience research" (specifically bovine and porcine veterinary research) to qualify for the tax credit, retroactively applying to tax years beginning January 1, 2017. The definition of agriscience research includes specific criteria such as oversight by a board with university-trained researchers, conducting research in applied animal science, and publishing research results. Third, the bill provides a unique provision for a "qualified city" (defined as having a population between 20,400 and 20,500 based on the 2020 census) to certify its budget by July 1, 2025, without the typical hearing and protest requirements. This comprehensive bill aims to modernize state taxation processes, support scientific research, and provide flexibility for a specific municipal budget situation.
Committee Categories
Budget and Finance
Sponsors (0)
No sponsors listed
Other Sponsors (1)
Ways and Means (House)
Last Action
Withdrawn. H.J. 1204. (on 05/14/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.legis.iowa.gov/legislation/BillBook?ga=91&ba=HF1052 |
| Fiscal Note - Cigarette and Tobacco Taxes, Permits, and Reports | https://www.legis.iowa.gov/docs/publications/FN/1527463.pdf |
| BillText | https://www.legis.iowa.gov/docs/publications/LGI/91/attachments/HF1052.html |
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