Dems: Ways & Means – week of April 4, 2016

April 8, 2016

SF 503 – Study of fees collected by the county sheriff

SF 2223 –Biofuels tax credits

SF 2306 – Facilitating natural disaster response



SF 503 provides for a report to the Ways & Means committees in the House and the Senate on fees collected by county sheriffs for duties they are required to perform, including issuing warrants, eviction notices and summons for jury. The county sheriffs must issue these orders and collect a set fee for the performance of these duties. However, the fees collected have not increased and are not sufficient to cover costs. Property taxpayers end up subsidizing the cost of issuing orders on behalf of private parties. The report would collect information from a sampling of rural and urban counties to help legislators decide on the fees necessary to cover costs. The bill returned to the Senate from the House with a technical amendment to update the year of the Code cited in the legislation, which was adopted by the Senate prior to final approval of the bill.

[4/6: 50-0]


SF 2306 would streamline the process for out-of-state companies that repair critical infrastructure in response to natural disasters in the Iowa. The bill is based on model legislation developed by the National Conference of State Legislatures, which has so far been adopted in 22 states.


The bill helps out-of-state businesses by removing requirements for the business or its employees to be registered and licensed as if they were residents or establishing a business in Iowa. This removes responsibilities related to paying income taxes for the time they are in the state and being subject to sales and use taxes related to bringing equipment and property into the state.


The bill only applies to presidential or gubernatorial declared disasters or states of emergency. The out-of-state businesses that enter the state to repair critical infrastructure pursuant to this legislation must register with the Secretary of State and must leave the state after 60 calendar days following the end of the designated state of disaster or emergency. Otherwise, they will be required to meet all licensing and registration requirements of resident businesses and employees.

[4/6: 50-0]



SF 2223 extends the expiration date of four biofuel tax credits from January 1, 2018, to January 1, 2025. The four programs are: E15 Plus Gasoline Promotion Tax Credit, E85 Gasoline Promotion Tax Credit, Biodiesel Blended Fuel Tax Credit and Biodiesel Production Refund. The bill increase the tax credit rate for biodiesel blended fuels of B-11 or higher from 4.5 cents per gallon to 7 cents per gallon. This change is retroactive to tax years beginning on or after January 1, 2016. Finally, the bill repeals references (in the E85 and E15 tax credit programs) to the Ethanol Promotion Tax Credit claimed by a retail dealer. This becomes effective on January 1, 2021, when the Ethanol Promotion Tax credit expires.


An amendment adopted in committee delayed the expansion of the tax credit for B-11 until 2018. The amendment also adjusts the rate of the biodiesel tax credit beginning on January 1, 2018, so that blends less than B-11 will receive a credit of 3.5 cents per gallon and those B-11 or above will receive a credit at the rate of 5.5 cents per gallon.

[4/6: short form]

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