With a brand new year comes brand new laws taking effect in states across the country. Iowa has a few of their own that took effect at the stroke of midnight on January 1st, 2023. Some of these range from menial to important. I've broken down four that appear to be the most significant:

A fun fact, to start, however. Per KWWL, more than 150 bills passed through Iowa state legislature in 2022. 11 of them have now gone into effect with the start of a new year.

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Changes to Iowa's Income Tax Rate:

Governor Kim Reynolds' 2022 tax package has a significant piece that will gradually eliminate the highest tax bracket. Essentially, it's a flat income tax rate of 3.9%, and the figure will be reduced incrementally, taking full effect in 2026, when everyone is at 3.9%.

Corporate taxes will almost be halved, with the top rate going from 9.8% to 5.5%.

Starting this year too, 401ks, pensions, and IRAs will no longer be taxed. Retired farmers will be eligible for new exemptions this year. You can find more information about that here.

Photo Credit: LorenzoPatoia, Getty Stock
Photo Credit: LorenzoPatoia, Getty Stock

New Year, New Gas Requirements for Iowa:

This law doesn't necessarily effect us at the pump, but gas station owners by and large. Iowa fuel stations are now required to sell gas with 15% ethanol (known as E-15). Gas stations that don't own compatible equipment can apply for waivers online.

Iowa's newly enacted gas law also requires any new gas equipment to be compatible with 85% ethanol gas and 20% biodiesel gas as well.

Changes to the Bottle Bill Law:

Another significant piece of legislature is one that impacts Iowa's "bottle bill." As of 2023, Iowa grocery and convenience stores no longer have to accept empty cans or bottles that customers may bring into the store. The new law raises redemption centers' handling fee to three cents per container (up from one cent).

Read more about new/changing Iowa laws on KWWL.

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