Fiscal Note
Fiscal Services Division
HF 2657 – Grain Handling Excise Tax, Repeal (LSB6343HV)
Staff Contact: Evan Johnson (515.281.6301) evan.johnson@legis.iowa.gov
Fiscal Note Version – New
Description
House File 2657 repeals the grain handling excise tax of one-fourth mill per bushel ($0.25 per
1,000 bushels) upon all grain handled. Iowa Code section 25B.7 (State Funding of Property
Tax Credits and Exemptions) is made inapplicable to this tax change.
Background
The grain handling tax was enacted in 1947 Iowa Acts, chapter 236 (Excise Tax on Grain
Handling Act). The tax is paid to the local property tax system and distributed to local
governments, such as cities, counties, and schools, in the same proportions as the tax on real
property is distributed.
Grain is defined as wheat, corn, barley, oats, rye, flaxseed, field peas, soybeans, grain
sorghums, spelts, and other products that are usually stored in grain elevators. This excludes
such seeds after being processed and the products of such processing when packaged or
sacked.
Handling is defined as the receiving of grain at or in each elevator, warehouse, mill, processing
plant, or other facility in this State in which it is received for storage, accumulation, sale,
processing, or for any purpose whatsoever.
Assumptions
• The Bill is effective July 1, 2024 (FY 2025).
• Taxes based on assessments for a given assessment year (AY) are credited in the fiscal
year beginning in the subsequent calendar year.
• The Department of Revenue reports that the statewide amount of grain handling tax
collected for AY 2023 was $1.2 million. The amount of grain handled is assumed to remain
steady over the forecast period.
Fiscal Impact
The elimination of the grain handling tax is estimated to reduce annual local government
revenue by $1.2 million beginning with FY 2027.
Source
Iowa Department of Revenue
/s/ Jennifer Acton
March 27, 2024
Doc ID 1448419
The fiscal note for this Bill was prepared pursuant to Joint Rule 17 and the Iowa Code. Data used in developing this
fiscal note is available from the Fiscal Services Division of the Legislative Services Agency upon request.
www.legis.iowa.gov
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Statutes affected:
Introduced: 445.3, 446.9