Iowa governor signs tax cut, mental health care funding law

Kim Reynolds
Posted at 2:27 PM, Jun 16, 2021
and last updated 2021-06-16 15:27:27-04

DES MOINES, Iowa (AP) — Iowa. Gov. Kim Reynolds has signed into law a tax bill that requires the state to take over funding of mental health care services, removing them from local property taxes.

The measure that became law Wednesday also phases out the state inheritance tax by 2025 and allows income tax cuts approved three years ago to begin in January 2023.

It also eliminates state funding to cities, counties and schools intended to restore lost money from a previous commercial property tax cut approved by lawmakers in 2013.

Some city officials have complained that the state reneging on that promise could result in future property tax increases to sustain services to citizens.

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