Hunter
09/08/25
State revenue in Iowa decreased by 6.7 percent in August compared to the same time period last year.
That’s according to a report issued last week by the Iowa Legislative Services Agency.
The Gazette reports the dip is primarily due to a decrease in income tax revenue collected by the state stemming from tax cuts enacted by the Republican-led legislature in recent years. The cuts, enacted over multiple bills starting in 2019, have gradually reduced the number of state income tax brackets and lowered rates. In January, most Iowans started paying a 3.8% state income tax rate.
Revenue from corporate income taxes and sales taxes both saw increases in August, but not enough to make up for the decrease in personal income taxes, according to the report.