4/13/2018 Legislative Update

Katie P. Hall

Director of Government Affairs

[email protected]

O: 515-292-2667

C: 515-686-1066

Week 14: April 13, 2018

State

1. Tax Reform — Monitoring, UPDATED

· SSB3195 : The original Governor's bill now coming out of the Senate: click on button below for the one page Senate summary

· Would increase taxes on credit unions

· 20% QBI deduction coupled at 100%

· Section 179 deduction increased to $500,000

· Increases standard deduction to $12,000/$24,000

Senate Summary of SSB3195

· HF2489 (old HSB671) : The Governor's bill with House amendments-- passed out of committee on a party line vote, click button below for summary

· Does NOT increase taxes for Credit Unions, cuts $1.3 billion in taxes over 5 years`

· Tax hearing Monday night allowed 30 folks to speak (max 3 min.) and was largely dominated by credit unions and banks (picture above of Helen Pearce of CFCCU during her speech)

· Waiting on joint budget targets to move forward

· Monitoring to make sure taxes are not increased for members

House Summary of HF2489

2. Telephone Property Tax: SF2388 — Support, UPDATED

· Amendment clarifying language on towers

· House subcommittee recommended passage on 4.4.18

· Passed out of Senate on 39 to 8 vote with amendment S5189: would delay portions of implementation by 3 years

· Would change property tax structure for telephone companies from an outdated unit valuation to an assessment mechanism that is neutral, competitive, simple & consistent

3. Utility Matters: SF2311 —Monitoring, UPDATED

· 20+ amendments filed: Summary below does not include the latest Carlson amendment on federal tax reform

· Sections 3-7, 10, 11, 13 and 16 are still good policy changes for our REC members

· Provides regulatory parity and clarifies IUB oversight of locally rate-regulated utilities

· Includes several code “clean-up” provisions helping streamline the statute for locally rate-regulated utilities

Summary of SF2311

4. Property Tax Backfill: HSB678 —Monitoring, UNCHANGED

· P hases out the property tax backfill payments to local/county governments

· P ut in place in 2013 as property tax reform, replacing decline in revenue

· FY 2018, reduces payments from ~$150 million to $100 million, then an additional $25 million each fiscal year until 2021, leaving $25 million as the new backfill budget

5. Industrial Hemp: SF2398 —Monitoring, UPDATED

· Subcommittee recommends passage on 4.11.18

· Passed out of Senate unanimously on 4.4.18-- sent to House

· Provides provisions for statewide industrial hemp research, marketing and enforcement