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.
- IA Gov. Reynolds signs tax cut bill
- 'Lunch shaming' bill awaits Gov. Reynolds' signature
- Reynolds signs bill requiring school concussion rules
- UPDATE: Gov. Reynolds signs 6-week abortion ban into law
- Gov. Kim Reynolds makes North Iowa stop
- Local reaction to Gov. Kim Reynolds approval poll
- Gov. Reynolds relaunches "See Something, Say Something" campaign
- Gov. Kim Reynolds announces run for re-election
- Gov. Reynolds says President Trump 'understands' farmers' needs
- Gov. Reynolds issues a Disaster Proclamation for seven counties