SEVERE WX: Winter Weather Advisory View Alerts
STREAMING NOW: Watch Now
CLOSINGS: View Closings

IA Gov. Reynolds signs tax cut bill

Cuts will take place over six years if revenue targets are hit.

Posted: May. 30, 2018 3:41 PM

HIAWATHA, Iowa (AP) — Iowa income taxes will begin to fall under a tax bill signed into law by Republican Gov. Kim Reynolds.

Reynolds signed the bill Wednesday in Hiawatha. Under the law, the state will cut $2.8 billion in corporate and personal income taxes over six years if it meets certain revenue targets. If not, some cuts would be delayed.

Middle-class families are expected to save an average of $86 to $257 next year. A typical family of four would save about $7 every two weeks.

The legislation also expands sales tax to digital goods like e-books, subscription services such as Netflix, ride-sharing apps such as Uber and physical goods purchased online. Sales taxes are forecast to grow by $867 million over six years, but a forthcoming U.S. Supreme Court decision may affect Iowa's ability to collect the taxes.

Article Comments

Mason City
Overcast
19° wxIcon
Hi: 23° Lo: 7°
Feels Like: 7°
Albert Lea
Broken Clouds
16° wxIcon
Hi: 22° Lo: 4°
Feels Like: 5°
Austin
Clear
19° wxIcon
Hi: 27° Lo: 7°
Feels Like: 11°
Charles City
Overcast
19° wxIcon
Hi: 24° Lo: 9°
Feels Like: 9°
Rochester
Overcast
17° wxIcon
Hi: 23° Lo: 5°
Feels Like: 4°
Tracking below average air and more snow chances.
KIMT Radar
KIMT Eye in the sky

Latest Video

Image

How to fight the flu with peak of season possibly coming soon

Image

Iowa and Minnesota seeing low flu activity

Image

11th Annual Martin Luther King Jr. Poetry contest

Image

Testing water for Nitrates

Image

Wrestling state championship

Image

Highlights: Grizzlies host Pink in the Rink night

Image

Prep basketball highlights: Iowa girls regionals

Image

Amy Klobuchar stops in Mason City

Image

Tracking More Snow For Sunday

Image

Minnesota section wrestling finals

Community Events