The bill introduces several amendments to the Iowa Code, focusing on tax provisions administered by the Iowa Department of Revenue, including personal income, property, sales and use, motor fuel, and inheritance taxes. Key changes include granting the department the authority to disclose state tax information to law enforcement in cases of suspected tax evasion or criminal activity, as well as updating confidentiality language for tax returns. The bill also establishes new provisions for tax expenditure reviews, modifies the excise tax rate for biodiesel blended fuel, and increases the threshold for direct pay tax permits from $4,000 to $8,000 in tax liability. Additionally, it sets effective dates for various provisions, with some applying retroactively.

Significant amendments include the repeal of the inheritance tax for estates of decedents dying on or after January 1, 2025, and the introduction of compliance requirements for tax obligations related to deaths occurring before this date. The bill clarifies inheritance tax treatments for Iowa educational savings plans and ABLE savings plans, while also establishing new reporting requirements for personal representatives of estates. Furthermore, it eliminates the annual reporting requirement on taxpayer noncompliance and adjusts the process for claiming refunds on erroneous property taxes. Overall, the bill aims to enhance tax administration efficiency, clarify tax obligations, and streamline compliance processes.

Statutes affected:
Introduced: 421.19, 422.20, 8G.4, 422.75, 421.60, 445.60, 422.7, 422.25C, 422.25, 423.36, 452A.3, 452A.33, 452A.15, 452A.41, 452A.44, 12D.9, 450.4, 321.47, 321.20, 331.756, 421.27, 422.14, 496C.14, 524.805, 541A.2, 633.21, 633.31, 450.22, 633.356, 633.361, 633.365, 633.399, 633.477, 633.479, 633.481, 654.16, 450.24, 422.16, 2.48