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Governor Signs Bill Cutting Bank Franchise Tax

6 17 bill signing

Gov. Kim Reynolds signed SF 2367, a bill supported by the Iowa Bankers Association that includes a phase down in the bank franchise tax from the current 5% to 3.5% over five years.

The legislation, which passed the House and Senate with unanimous support, provides IBA-member banks with state level tax parity with credit unions. It also improves banks’ ability to compete with the Farm Credit System. Best of all, it keeps financial resources local, allowing Iowa banks to invest in their communities.

The bill signing represents a significant achievement for the Iowa banking industry. The IBA expresses sincere gratitude for the countless banker advocates who contributed to this moment through — donations to BUILD, visiting with legislators at town halls, fundraisers or the Capitol, attending advocacy events like Bankers Day on the Hill and more. Special thanks also go to Gov. Reynolds and legislative leadership at the statehouse.

Pictured, from left: Mike Rozenboom (IBA), Sen. Ken Rozenboom, Jenica Lensmeyer (IBA), Sharon Presnall (IBA), Elliott Gebel (IBA), Gov. Reynolds, Mike Olson (Lincoln Savings Bank, Grinnell), Lt. Gov. Adam Gregg, John Sorensen (IBA), Senate Majority Leader Jack Whitver and lobbyist Scott Newhard (Cornerstone, Des Moines).

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