On Feb. 13, Iowa Governor Kim Reynolds and Lt. Gov. Adam Gregg announced a significant tax reform package that would provide “immediate relief to middle class workers, small business owners, farmers, families and teachers across Iowa,” according to a press release from the office of the governor.
The package, unofficially dubbed the Reynolds Reform Plan, features a seven straightforward keys including lower tax rates for middle class Iowans, tax savings for teachers, lower tax rates for small business owners, protected state budget priorities and Main Street businesses, and a simplified tax code.
On May 30, Gov. Reynolds approved and signed the tax overhaul into law, which promises to provide individual and corporate taxpayers with $2.16 billion in relief over six years. And on June 1, the Iowa Department of Revenue announced that it is beginning to prepare guidance on state tax reform.
“Iowa’s tax system is one of the most complicated in the country. This legislation will make the tax laws easier for Iowa taxpayers,” said Iowa Department of Revenue Director Courtney Kay-Decker. “The Department has started to provide information and guidance for our taxpayers and tax professionals on the various pieces of reform. We look forward to doing our part to implement and administer the new law with the fairness Iowans expect.”
For more information on Iowa’s tax reform and how it may impact you, visit https://tax.iowa.gov/iowa-tax-reform.