There was not a lot of legislation that happened this session that affected equipment dealers, which is usually a good thing. Most of the time for the house and senate was spent on the governor’s agenda that she unveiled at her condition of the state address in January. The focus was on higher salaries for teachers, restructuring the AEA, and reducing state income tax for Iowans. The session this year ended the earliest it has since 2010.
Even though 2024 and the past few years have been quiet in Iowa for equipment dealers, that doesn’t mean there isn’t legislation around the corner that could possibly be proposed that would affect Iowa dealers. In Nebraska our members faced the governor trying to pass a bill that would eliminate property taxes for landowners and to pay for it they would eliminate tax exemption status for farmers on all ag parts purchased in the state.
This would negatively affect not only farmers, but severely impact dealers in the state, especially where farmers are close to the borders of the state where they can travel across state lines and purchase parts using tax exemption in the surrounding states.
Take it a step further and some service business will be lost due to this proposal also. With the work of our association and members in Nebraska, this effort to eliminate tax exemption status for farmers on all ag parts was defeated That does not mean that it will not come up again in 2025.
For 2025, we feel that there will be a push in IA from some representatives to look at tax exemption status on ag parts and equipment. Especially with the push to lower and get to the goal of 0% state income tax. Right to repair is also another push in states and nationally that seems to not be going away.
It is important to support the PAC and also have a relationship with your local representative to educate them on the impact both of these issues would have on your dealership, farmers, and the local communities that you serve.