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.
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