DAVENPORT, Iowa (KWQC) — Gov. Kim Reynolds signed the tax reform bill, Senate File 2417, Wednesday at MobileDemand, a tablet manufacturer, in Hiawatha.
The governor said the new tax plan will unleash opportunity across the state and help families struggling to make ends meet.
“I signed this bill for every Iowan who works hard to earn a paycheck and deserves to keep more of it,” she continued. “It’s one of the reasons why I feel so strongly that government must never forget that it’s the people’s money they’re spending.”
The bill has a major income tax cut which would eliminate an estimated $2 billion in revenue over the next six years. The bill will add sales tax to online purchases, streaming sites, and ride-sharing services.
Senate File 2417 is an Act relating to state and local revenue and finance by modifying the individual and corporate income taxes, the franchise tax, tax credits, the sales and use taxes and local option sales tax, the hotel and motel excise tax, the automobile rental excise tax, the Iowa Educational Savings Plan Trust, providing for other properly related matters, making penalties applicable, and including immediate and contingent effective date and retroactive and other applicability provisions.