The bill introduces a series of amendments to Iowa's tax laws, focusing on enhancing tax administration and compliance across various tax categories, including personal income, property, sales and use, motor fuel, and inheritance taxes. Notable changes include the Department of Revenue's new authority to disclose tax-related information to law enforcement in cases of suspected tax evasion, as well as updates to the confidentiality provisions surrounding tax returns. The bill also establishes new tax expenditure reviews, modifies filing deadlines, and clarifies tax treatment for specific transactions, such as sales of building materials and electric fuel. Additionally, it introduces a checkoff option on income tax returns for contributions to an Animal Care Organization Fund, which will support no-kill animal care initiatives.

Significant deletions from current law include the removal of the requirement for the Department to report annually on taxpayer noncompliance and the elimination of the inheritance tax for estates of decedents dying on or after January 1, 2025. The bill also modifies the eligibility criteria for property tax refunds and adjusts the estimated tax payment threshold. Furthermore, it mandates that data center businesses file annual reports on their energy usage and presents new requirements for web search portal businesses regarding tax exemptions. Overall, the legislation aims to streamline tax processes, clarify obligations, and promote economic growth while ensuring effective tax compliance and administration.

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, 476.46A, 423.3, 423.4, 423.43, 423.5