Senate File 614 S-3172 Amend Senate File 614 as follows: 1 1. By striking everything after the enacting clause and 2 inserting: 3 < DIVISION I 4 DISCLOSURE OF TAX INFORMATION 5 Section 1. Section 421.19, subsection 2, Code 2025, is 6 amended by striking the subsection and inserting in lieu 7 thereof the following: 8 2. The department may notify federal, state, or local 9 law enforcement agencies, and may disclose state returns, 10 state return information, state investigative information or 11 audit information, or any other state information, to such law 12 enforcement agencies, if the department has information that 13 indicates any of the following: 14 a. A person intentionally filed a false claim, affidavit, 15 return, or other information with intent to evade tax or obtain 16 a refund, credit, or other benefit from the department. 17 b. A person failed to file a return with intent to evade a 18 tax or filing requirement. 19 c. A person failed to pay with the intent to evade tax. 20 d. A person committed any act or omission that is a criminal 21 offense under a provision of this title administered by the 22 department. 23 Sec. 2. Section 421.19, subsection 3, Code 2025, is amended 24 to read as follows: 25 3. Notwithstanding sections 422.20 and 422.72 , the 26 department may disclose state returns, state return 27 information, state investigative or audit information, or any 28 other state information as provided under this section . 29 Sec. 3. Section 422.20, subsection 3, paragraph a, Code 30 2025, is amended to read as follows: 31 a. Unless otherwise expressly permitted by section 8G.4 , 32 section 11.41 , section 96.11, subsection 6 , section 421.17, 33 subsections 22, 23, and 26 , section 421.17, subsection 27 , 34 paragraph “k” , section 421.17, subsection 31 , section 252B.9 , 35 -1- SF 614.1945 (1) 91 (amending this SF 614 to CONFORM to HF 976) jm/jh 1/ 33 #1.

section 321.40, subsection 6 , sections 321.120 , 421.19 , 421.28 , 1 421.59 , 421.65 , 422.72 , and 452A.63 , and 556.19, subsection 2, 2 this section , or another provision of law, a tax return, return 3 information, or investigative or audit information shall not 4 be divulged to any person or entity, other than the taxpayer, 5 the department, or internal revenue service for use in a matter 6 unrelated to tax administration. 7 Sec. 4. Section 422.72, subsection 3, paragraph a, Code 8 2025, is amended to read as follows: 9 a. Unless otherwise expressly permitted by section 8G.4 , 10 section 11.41 , section 96.11, subsection 6 , section 421.17, 11 subsections 22, 23, and 26 , section 421.17, subsection 27 , 12 paragraph “k” , section 421.17, subsection 31 , section 252B.9 , 13 section 321.40, subsection 6 , sections 321.120 , 421.19 , 421.28 , 14 421.65 , 422.20 , and 452A.63 , and section 556.19, subsection 2, 15 this section , or another provision of law, a tax return, return 16 information, or investigative or audit information shall not 17 be divulged to any person or entity, other than the taxpayer, 18 the department, or internal revenue service for use in a matter 19 unrelated to tax administration. 20 Sec. 5. EFFECTIVE DATE. This division of this Act, being 21 deemed of immediate importance, takes effect upon enactment. 22 DIVISION II 23 ANNUAL REPORTING 24 Sec. 6. Section 421.60, subsection 2, paragraph k, Code 25 2025, is amended by striking the paragraph. 26 Sec. 7. Section 422.75, Code 2025, is amended to read as 27 follows: 28 422.75 Statistics —— publication. 29 The department shall prepare and publish an annual report 30 which shall include statistics reasonably available, with 31 respect to the operation of this chapter , including amounts 32 collected, classification of taxpayers, and such other facts 33 as are deemed pertinent and valuable. The annual report shall 34 also include the reports and information required pursuant to 35 -2- SF 614.1945 (1) 91 (amending this SF 614 to CONFORM to HF 976) jm/jh 2/ 33

section 421.60, subsection 2 , paragraph “k” . 1 DIVISION III 2 PROPERTY TAX —— CHANGES 3 Sec. 8. Section 425.20, subsection 3, Code 2025, is amended 4 to read as follows: 5 3. In case of sickness, absence, or other disability of 6 the claimant or if, in the judgment of the director of revenue 7 or the director of health and human services , as applicable, 8 good cause exists and the claimant requests an extension, the 9 director of health and human services may extend the time for 10 filing a claim for reimbursement and the director of revenue 11 may extend the time for filing a claim for credit . However, 12 any further time granted shall not extend beyond December 31 13 of the year following the year in which the claim was required 14 to be filed. Claims filed as a result of this subsection shall 15 be filed with the director of health and human services or the 16 director of revenue, as applicable, who shall provide for the 17 reimbursement of the claim to the claimant. 18 Sec. 9. Section 445.60, Code 2025, is amended to read as 19 follows: 20 445.60 Refunding erroneous tax. 21 The board of supervisors shall direct the county treasurer 22 to refund to the taxpayer any tax or portion of a tax found to 23 have been erroneously or illegally paid, with all interest, 24 fees, and costs actually paid. A refund shall not be ordered 25 or made unless a claim for refund is presented to the board 26 within two years of the date the tax was due, or if appealed 27 to the board of review, the property assessment appeal board, 28 director of revenue, or district court, within two years of the 29 final decision. 30 Sec. 10. EFFECTIVE DATE. The following, being deemed of 31 immediate importance, takes effect upon enactment: 32 The section of this division of this Act amending section 33 445.60. 34 DIVISION IV 35 -3- SF 614.1945 (1) 91 (amending this SF 614 to CONFORM to HF 976) jm/jh 3/ 33

FARM TENANCY INCOME TAX EXCLUSION 1 Sec. 11. Section 422.7, subsection 14, paragraph a, Code 2 2025, is amended to read as follows: 3 a. Subtract, to the extent included, net income received 4 by an eligible individual pursuant to a farm tenancy agreement 5 covering real property held by the eligible individual for 6 ten or more years, if the eligible individual materially 7 participated in a farming business for ten or more years in the 8 aggregate . 9 Sec. 12. Section 422.7, subsection 14, paragraph f, Code 10 2025, is amended by adding the following new subparagraph: 11 NEW SUBPARAGRAPH . (04) “Held” shall be determined with 12 reference to the holding period provisions of section 1223 of 13 the Internal Revenue Code and the federal regulations pursuant 14 thereto. 15 DIVISION V 16 PASS-THROUGH ENTITIES 17 Sec. 13. Section 422.25C, subsection 2, Code 2025, is 18 amended to read as follows: 19 2. For tax years beginning on or after January 1, 2020, any 20 adjustments to a partnership’s or pass-through entity’s items 21 of income, gain, loss, expense, or credit, or an adjustment to 22 such items allocated to a partner that holds an interest in a 23 partnership or pass-through entity for the reviewed year by 24 the department as a result of a state partnership audit, shall 25 be determined at the partnership level or pass-through entity 26 level in the same manner as provided by section 6221(a) of the 27 Internal Revenue Code and the regulations thereunder unless a 28 different treatment is specifically provided in this title . 29 The provisions of sections 6222, 6223, and 6227 of the Internal 30 Revenue Code and the regulations thereunder shall also apply to 31 a partnership or pass-through entity and its direct or indirect 32 partners in the same manner as provided in such sections unless 33 a different treatment is specifically provided in this title . 34 For purposes of applying such sections, due account shall be 35 -4- SF 614.1945 (1) 91 (amending this SF 614 to CONFORM to HF 976) jm/jh 4/ 33

made for differences in federal and Iowa terminology. The 1 adjustment provided by section 6221(a) of the Internal Revenue 2 Code shall be determined as provided in such section but shall 3 be based on Iowa taxable income or other tax attributes of 4 the partnership or pass-through entity as determined pursuant 5 to this chapter for the reviewed year. The department shall 6 issue a notice of adjustment to the partnership or pass-through 7 entity. Such notice shall be treated as an assessment for the 8 purposes of section 422.25 , and the notice shall be appealable , 9 except as provided in section 422.25, by the partnership or 10 pass-through entity pursuant to sections 422.28 and 422.29 and 11 shall be issued within the time period provided by section 12 422.25 . Once the adjustments to partnership-related or 13 pass-through entity-related items or reallocations of income, 14 gains, losses, expenses, credits, and other attributes among 15 such partners for the reviewed year are finally determined, 16 the partnership or pass-through entity and any direct partners 17 or indirect partners shall then be subject to the provisions 18 of section 422.25, subsection 1 , paragraph “e” , and section 19 422.25A in the same manner as if the state partnership audit 20 were a federal partnership level audit, and as if the final 21 state partnership audit adjustment were a final federal 22 partnership adjustment. The penalty exceptions in section 23 421.27, subsection 2 , paragraphs “b” and “c” , shall not apply 24 to a state partnership audit. 25 Sec. 14. EFFECTIVE DATE. This division of this Act, being 26 deemed of immediate importance, takes effect upon enactment. 27 Sec. 15. RETROACTIVE APPLICABILITY. This division of this 28 Act applies retroactively to January 1, 2024. 29 DIVISION VI 30 SALES TAX CHANGES 31 Sec. 16. Section 423.2, subsection 1, paragraph b, Code 32 2025, is amended to read as follows: 33 b. (1) Sales of building materials, supplies, and equipment 34 to owners , contractors, subcontractors, or builders for the 35 -5- SF 614.1945 (1) 91 (amending this SF 614 to CONFORM to HF 976) jm/jh 5/ 33

erection of buildings or the alteration, repair, or improvement 1 of real property are retail sales of tangible personal property 2 in whatever quantity sold . Where the owner, contractor, 3 subcontractor, or builder is also a retailer holding a sales 4 or use tax permit and transacting retail sales of building 5 materials, supplies, and equipment, the person shall purchase 6 such items of tangible personal property without liability for 7 the tax if such property will be subject to the tax at the 8 time of resale or at the time it is withdrawn from inventory 9 for construction purposes. The sales tax shall be due in the 10 reporting period when the materials, supplies, and equipment 11 are withdrawn from inventory for construction purposes or 12 when sold at retail. The tax shall not be due when materials 13 are withdrawn from inventory for use in construction outside 14 of Iowa and the tax shall not apply to tangible personal 15 property purchased and consumed by the manufacturer as building 16 materials in the performance by the manufacturer or its 17 subcontractor of construction outside of Iowa. The sale of 18 carpeting is not a sale of building materials. The sale of 19 carpeting to owners, contractors, subcontractors, or builders 20 shall be treated as the sale of ordinary tangible personal 21 property and subject to the tax imposed under this subsection 22 and the use tax Sales of building materials and supplies to 23 contractors, subcontractors, or builders for the erection of 24 buildings and other structures or for the reconstruction, 25 alteration, expansion, or remodeling of buildings and other 26 structures are retail sales of tangible personal property. 27 Sales of building materials and supplies to contractors, 28 subcontractors, or builders for use in repairs to or for 29 installation in existing buildings and other structures 30 are purchases for resale. Sales of building equipment to 31 contractors, subcontractors, or builders are retails sales of 32 tangible personal property . 33 (2) Where the owner, contractor, subcontractor, or builder 34 is also a retailer holding a sales and use tax permit and 35 -6- SF 614.1945 (1) 91 (amending this SF 614 to CONFORM to HF 976) jm/jh 6/ 33

transacting retail sales of building materials, supplies, and 1 equipment, the person shall purchase such items of tangible 2 personal property without liability for the tax if such 3 property will be subject to sales tax at the time of resale 4 or subject to use tax at the time the retailer withdraws 5 such property from inventory for use by the retailer in 6 erecting buildings and other structures or for reconstruction, 7 alteration, expansion, or remodeling of buildings and other 8 structures. The tax shall be due in the reporting period 9 when the materials, supplies, or equipment are withdrawn from 10 inventory or when sold at retail. The tax shall not be due when 11 materials and supplies are withdrawn from inventory for use in 12 construction outside of Iowa. 13 (3) The sale of carpeting is not a sale of building 14 materials. Sales of carpeting to owners, contractors, 15 subcontractors, or builders are retail sales of tangible 16 personal property and subject to tax. 17 Sec. 17. Section 423.36, subsection 9, paragraph a, Code 18 2025, is amended to read as follows: 19 a. Except as provided in paragraph “b” , purchasers, users, 20 and consumers of tangible personal property, specified digital 21 products, or enumerated services taxed pursuant to subchapter 22 II or III of this chapter or chapter 423B may be authorized, 23 pursuant to rules adopted by the director, to remit tax owed 24 directly to the department instead of the tax being collected 25 and paid by the seller. To qualify for a direct pay tax permit, 26 the purchaser, user, or consumer must accrue a tax liability of 27 more than four eight thousand dollars in tax under subchapters 28 II and III in a semimonthly monthly period and make deposits 29 and file returns pursuant to section 423.31 . This authority 30 shall not be granted or exercised except upon application to 31 the director and then only after issuance by the director of a 32 direct pay tax permit. 33 DIVISION VII 34 MOTOR FUEL TAXES 35 -7- SF 614.1945 (1) 91 (amending this SF 614 to CONFORM to HF 976) jm/jh 7/ 33

Sec. 18. Section 452A.3, subsection 1, paragraph b, 1 unnumbered paragraph 1, Code 2025, is amended to read as 2 follows: 3 On and after July 1, 2030, an excise tax of thirty cents is 4 imposed on each gallon of ethanol blended gasoline classified 5 as E-15 or higher. Before July 1, 2030, the rate of the excise 6 tax on ethanol blended gasoline classified as E-15 or higher 7 shall be based on the number of gallons of ethanol blended 8 gasoline classified as E-15 or higher that are distributed 9 in this state as expressed as a percentage of the number of 10 gallons of motor fuel distributed in this state, which is 11 referred to as the distribution percentage. For purposes 12 of this paragraph “b” , only ethanol blended gasoline and 13 nonblended gasoline, not including aviation gasoline, shall be 14 used in determining the percentage basis for the excise tax. 15 The department shall determine the percentage basis for each 16 determination period beginning January 1 and ending December 31 17 based on information from reports submitted to the department 18 for filing pursuant to section 452A.33 . Before June 1, the 19 department may amend the distribution percentage due to a 20 mistake, if there is a late report filed by a retail dealer 21 to the department under section 452A.33, subsection 1, or if 22 the distribution percentage is not accurate. The rate for the 23 excise tax shall apply for the period beginning July 1 and 24 ending June 30 following the end of the determination period. 25 Before July 1, 2030, the rate of the excise tax on each gallon 26 of ethanol blended gasoline classified as E-15 or higher shall 27 be as follows: 28 Sec. 19. Section 452A.3, subsection 3, paragraph a, 29 subparagraph (2), unnumbered paragraph 1, Code 2025, is amended 30 to read as follows: 31 Except as otherwise provided in this section and in this 32 subchapter , this subparagraph shall apply to the excise tax 33 imposed on each gallon of biodiesel blended fuel classified 34 as B-20 or higher used for any purpose for the privilege of 35 -8- SF 614.1945 (1) 91 (amending this SF 614 to CONFORM to HF 976) jm/jh 8/ 33

operating motor vehicles in this state. On and after July 1, 1 2030, the rate of the excise tax on each gallon of biodiesel 2 blended fuel classified as B-20 or higher is thirty-two and 3 five-tenths cents. Before July 1, 2030, the rate of the excise 4 tax on each gallon of biodiesel blended fuel classified as 5 B-20 or higher shall be based on the number of gallons of 6 biodiesel blended fuel classified as B-20 or higher that are 7 distributed in this state as expressed as a percentage of the 8 number of gallons of special fuel for diesel engines of motor 9 vehicles distributed in this state, which is referred to as 10 the distribution percentage. The department shall determine 11 the percentage basis for each determination period beginning 12 January 1 and ending December 31 based on information from 13 reports submitted to the department for filing pursuant to 14 section 452A.33 . Before June 1, the department may amend the 15 distribution percentage due to a mistake, if there is a late 16 report filed by a retail dealer to the department under section 17 452A.33, subsection 1, or if the distribution percentage is 18 not accurate. The rate of the excise tax shall apply for the 19 period beginning July 1 and ending June 30 following the end of 20 the determination period. Before July 1, 2030, the rate of the 21 excise tax on each gallon of biodiesel blended fuel classified 22 as B-20 or higher shall be as follows: 23 Sec. 20. Section 452A.15, subsection 5, Code 2025, is 24 amended to read as follows: 25 5. The director may impose a civil penalty against any 26 person who fails to timely file the reports or keep the records 27 required under this section . The penalty shall be one hundred 28 dollars for the first violation and shall increase by one 29 hundred dollars for each additional violation occurring in the 30 calendar year in which the first violation occurred. 31 Sec. 21. Section 452A.33, subsection 2, unnumbered 32 paragraph 1, Code 2025, is amended to read as follows: 33 On or before April 1 the department shall deliver a report 34 to the governor and the legislative services agency. Before 35 -9- SF 614.1945 (1) 91 (amending this SF 614 to CONFORM to HF 976) jm/jh 9/ 33

June 1, the department may amend the report due to a mistake, 1 if there is a late report by a retail dealer under subsection 2 1, or if the report is not accurate. The report shall compile 3 information reported by retail dealers to the department as 4 provided in this section and shall at least include all of the 5 following: 6 Sec. 22. Section 452A.41, subsection 5, paragraph a, Code 7 2025, is amended to read as follows: 8 a. For the purpose of determining the amount of liability 9 for the electric fuel tax, each dealer and user shall file with 10 the department not later than July 31 for the period beginning 11 January 1 and ending June 30, and not later than January 30 12 31 for the period beginning July 1 and ending December 30 31 , 13 a biannual tax return certified under penalties for false 14 certification. The return shall show, with reference to each 15 location at which fuel is delivered or placed by the dealer or 16 user into the battery or other energy storage device of any 17 electric motor vehicle during the next preceding six calendar 18 months, information as required by the department. On and 19 after January 1, 2026, the department may require by rule that 20 such tax returns be filed quarterly. 21 Sec. 23. Section 452A.44, Code 2025, is amended by adding 22 the following new subsection: 23 NEW SUBSECTION . 4. If electric fuel is sold or dispensed 24 for a nontaxable purpose, the purchaser may complete and 25 provide an exemption certificate produced by the department to 26 the license holder. 27 DIVISION VIII 28 INHERITANCE TAX —— FUTURE CODE CHANGES DUE TO REPEAL 29 Sec. 24. Section 12D.9, subsection 3, Code 2025, is amended 30 to read as follows: 31 3. State For a death occurring before January 1, 2025, state 32 inheritance tax treatment of interests in Iowa educational 33 savings plans shall be as provided in section 450.4, subsection 34 8 . This subsection shall apply to all Iowa educational savings 35 -10- SF 614.1945 (1) 91 (amending this SF 614 to CONFORM to HF 976) jm/jh 10/ 33

plans existing on or after July 1, 1998. 1 Sec. 25. Section 12I.8, subsection 3, Code 2025, is amended 2 to read as follows: 3 3. State For a death occurring before January 1, 2025, state 4 inheritance tax treatment of interests in Iowa ABLE savings 5 plans shall be as provided in section 450.4, subsection 9 . 6 Sec. 26. Section 12I.10, subsection 3, Code 2025, is amended 7 to read as follows: 8 3. State For a death occurring before January 1, 2025, state 9 inheritance tax treatment of interests in the qualified ABLE 10 program with which the state has contracted pursuant to this 11 section shall be as provided in section 450.4, subsection 9 . 12 Sec. 27. Section 16.177, subsection 8, Code 2025, is amended 13 to read as follows: 14 8. Bonds issued under this section are declared to be issued 15 for an essential public and governmental purpose and all bonds 16 issued under this section shall be exempt from taxation by the 17 state of Iowa and the interest on the bonds shall be exempt 18 from the state income tax and the any state inheritance tax. 19 Sec. 28. Section 321.47, subsection 2, paragraph a, Code 20 2025, is amended to read as follows: 21 a. The persons entitled under the laws of descent and 22 distribution to the possession and ownership of a vehicle owned 23 in whole or in part by a decedent who died intestate, upon 24 filing an affidavit stating the name and date of death of the 25 decedent, the right to possession and ownership of the persons 26 filing the affidavit, and that there has been no administration 27 of the decedent’s estate, which instrument must also contain 28 an agreement by the affiant to indemnify creditors of the 29 decedent who would be entitled to levy execution upon the motor 30 vehicle to the extent of the value of the motor vehicle, shall, 31 upon complying with the other title transfer requirements of 32 this chapter , be issued a registration card for the decedent’s 33 interest in the vehicle and a certificate of title to the 34 vehicle. If a decedent died testate, and either the will is 35 -11- SF 614.1945 (1) 91 (amending this SF 614 to CONFORM to HF 976) jm/jh 11/ 33

not probated or is admitted to probate without administration, 1 the persons entitled to the possession and ownership of 2 a vehicle owned in whole or in part by the decedent may 3 file an affidavit and, upon complying with the other title 4 transfer requirements of this chapter , shall be issued a 5 registration card for the decedent’s interest in the vehicle 6 and a certificate of title to the vehicle. The affidavit 7 must contain the same information and indemnity agreement 8 as is required in cases of intestacy under this subsection . 9 Chapter 450 is not For a death occurring before January 1, 10 2025, a requirement of chapter 450 shall not be considered 11 satisfied by the filing of the affidavit provided for in this 12 subsection . If, from the records in the office of the county 13 treasurer, there appear to be any liens on the vehicle, the 14 certificate of title must contain a statement of the liens 15 unless the application is accompanied by proper evidence of 16 the satisfaction or extinction of such liens. Evidence of 17 extinction includes but is not limited to an affidavit of the 18 applicant stating that a security interest was foreclosed as 19 provided in chapter 554, article 9, part 6 . The department 20 shall waive the certificate of title fee and surcharge required 21 under sections 321.20 , 321.20A , 321.23 , 321.46 , 321.52 , and 22 321.52A if the person entitled to possession and ownership of 23 a vehicle, as provided in this subsection , is the surviving 24 spouse of a decedent. 25 Sec. 29. Section 331.602, subsection 23, Code 2025, is 26 amended to read as follows: 27 23. Forward For deaths occurring before January 1, 2025, 28 forward to the director of revenue a copy of any deed, bill of 29 sale, or other transfer which shows that it is made or intended 30 to take effect at or after the death of the person executing 31 the instrument as provided in section 450.81 . 32 Sec. 30. Section 331.756, subsection 57, Code 2025, is 33 amended to read as follows: 34 57. Represent For deaths occurring before January 1, 2025, 35 -12- SF 614.1945 (1) 91 (amending this SF 614 to CONFORM to HF 976) jm/jh 12/ 33

represent the state in litigation relating to the inheritance 1 tax if requested by the department of revenue as provided in 2 section 450.1 . 3 Sec. 31. Section 421.27, subsection 1, paragraph d, 4 subparagraph (13), Code 2025, is amended to read as follows: 5 (13) That For a death occurring before January 1, 2025, 6 that an Iowa inheritance tax return is filed for an estate 7 within the later of nine months from the date of death or sixty 8 days from the filing of a disclaimer by the beneficiary of the 9 estate refusing to take the property or right or interest in 10 the property. 11 Sec. 32. Section 421.60, subsection 2, paragraph c, 12 subparagraph (1), Code 2025, is amended to read as follows: 13 (1) If the notice of assessment or denial of a claim for 14 refund relates to a tax return filed pursuant to section 15 422.14 , or pursuant to chapter 450 for a death occurring before 16 January 1, 2025, by the taxpayer which designates an individual 17 as an authorized representative of the taxpayer with respect to 18 that return, or if a power of attorney has been filed with the 19 department by the taxpayer which designates an individual as 20 an authorized representative of the taxpayer with respect to 21 any tax that is included in the notice of assessment or denial 22 of a claim for refund, a copy of the notice together with any 23 additional information required to be sent to the taxpayer 24 shall be sent to the authorized representative as well. 25 Sec. 33. Section 422.27, subsection 1, Code 2025, is amended 26 to read as follows: 27 1. A final account of a personal representative , as defined 28 in section 450.1 , shall not be allowed by any court unless the 29 account shows, and the judge of the court finds, that all taxes 30 imposed by this subchapter upon the personal representative, 31 which have become payable, have been paid, and that all taxes 32 which may become due are secured by bond or deposit, or are 33 otherwise secured. The certificate of acquittances of the 34 department of revenue is conclusive as to the payment of the 35 -13- SF 614.1945 (1) 91 (amending this SF 614 to CONFORM to HF 976) jm/jh 13/ 33

tax to the extent of the acquittance. This subsection does 1 not apply if all property in the estate of a decedent is 2 held in joint tenancy with right of survivorship by husband 3 and wife alone. For purposes of this subsection, “personal 4 representative” means an administrator, executor, or trustee as 5 each is defined in section 633.3. 6 Sec. 34. Section 496C.14, subsection 6, paragraph h, Code 7 2025, is amended to read as follows: 8 h. Notwithstanding the provisions of this section , 9 payment of any part of the purchase price for shares of a 10 deceased shareholder shall not be required until the executor 11 or administrator of the deceased shareholder provides 12 any indemnity, release, or other document from any taxing 13 authority, which is reasonably necessary to protect the 14 corporation against liability for any estate , inheritance, and 15 death taxes tax, or any inheritance tax for a death occurring 16 before January 1, 2025 . 17 Sec. 35. Section 524.805, subsection 8, Code 2025, is 18 amended to read as follows: 19 8. A state bank may receive deposits from one or more 20 persons with the provision that upon the death of the 21 depositors the deposit account shall be the property of the 22 person or persons designated by the deceased depositors as 23 shown on the deposit account records of the state bank. After 24 payment by the state bank, the proceeds shall remain subject 25 to the any debts of the decedent and the any payment of Iowa 26 inheritance tax , if any for a death occurring prior to January 27 1, 2025 . A state bank paying the person or persons designated 28 shall not be liable as a result of that action for any debts 29 of the decedent or for any estate, inheritance, or succession 30 taxes which may be due this state. 31 Sec. 36. Section 541A.2, subsection 6, unnumbered paragraph 32 1, Code 2025, is amended to read as follows: 33 An individual development account closed in accordance 34 with this subsection is not subject to the limitations and 35 -14- SF 614.1945 (1) 91 (amending this SF 614 to CONFORM to HF 976) jm/jh 14/ 33

benefits provided by this chapter but is subject to state tax 1 in accordance with the provisions of section 422.7, subsection 2 17 , and in accordance with the provisions of section 450.4, 3 subsection 6 , for a death occurring before January 1, 2025 . An 4 individual development account may be closed for any of the 5 following reasons: 6 Sec. 37. Section 602.8102, subsection 63, Code 2025, is 7 amended to read as follows: 8 63. Carry out duties relating to the inheritance tax as 9 provided in chapter 450 for deaths occurring before January 1, 10 2025 . 11 Sec. 38. Section 633.21, Code 2025, is amended to read as 12 follows: 13 633.21 Appraisers’ fees and referees’ fees fixed by rule. 14 The district judges of each judicial district shall by rule 15 fix the fees of probate referees, and also provide, insofar as 16 practicable, a uniform schedule of compensation for inheritance 17 tax appraisers, other appraisers, brokers, and agents employed 18 at estate expense. 19 Sec. 39. Section 633.31, subsection 2, paragraph a, Code 20 2025, is amended to read as follows: 21 a. For services performed in short form probates 22 pursuant to sections 450.22 and 450.44 for deaths occurring 23 before January 1, 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 15.00 24 Sec. 40. Section 633.356, subsection 1, unnumbered 25 paragraph 1, Code 2025, is amended to read as follows: 26 When the gross value of the decedent’s personal property 27 that would otherwise be distributed by will or intestate 28 succession is or has been, at any time since the decedent’s 29 death, fifty thousand dollars or less and there is no real 30 property , or for deaths occurring before January 1, 2025, the 31 real property passes to persons exempt from inheritance tax 32 as joint tenants with full rights of survivorship pursuant to 33 chapter 450 , and if forty days have elapsed since the death of 34 the decedent, a successor as defined in subsection 2 may, by 35 -15- SF 614.1945 (1) 91 (amending this SF 614 to CONFORM to HF 976) jm/jh 15/ 33

furnishing an affidavit prepared pursuant to subsection 3 or 1 8 , and without procuring letters of appointment, do any of the 2 following with respect to one or more items of such personal 3 property: 4 Sec. 41. Section 633.356, subsection 3, paragraph a, 5 subparagraph (3), Code 2025, is amended to read as follows: 6 (3) That the gross value of the decedent’s personal property 7 that would otherwise be distributed by will or intestate 8 succession is, or has been at any time since the decedent’s 9 death, fifty thousand dollars or less and there is no real 10 property , or for deaths occurring before January 1, 2025, the 11 real property passes to persons exempt from inheritance tax 12 as joint tenants with full rights of survivorship pursuant to 13 chapter 450 . 14 Sec. 42. Section 633.356, subsection 3, paragraph a, 15 subparagraph (10), Code 2025, is amended to read as follows: 16 (10) That no inheritance or other taxes are owed to the 17 department of revenue for a death occurring prior to January 1, 18 2025 , or if taxes are owed, that the taxes will be paid to the 19 extent of funds received pursuant to the affidavit. 20 Sec. 43. Section 633.356, subsection 9, Code 2025, is 21 amended to read as follows: 22 9. Upon receipt of an affidavit under subsection 3 and 23 reasonable proof under subsection 5 of the identity of each 24 successor seeking distribution by virtue of the affidavit, 25 the holder of the property shall disclose to the affiant 26 whether the value of the property held by the holder is, or has 27 been at any time since the decedent’s death, fifty thousand 28 dollars or less. An affidavit furnished for the purpose of 29 determining whether the value of the property is, or has 30 been at any time since the decedent’s death, fifty thousand 31 dollars or less need not contain the language required under 32 subsection 3 , paragraph “a” , subparagraph (3), but shall state 33 that the affiant reasonably believes that the gross value 34 of the decedent’s personal property that would otherwise be 35 -16- SF 614.1945 (1) 91 (amending this SF 614 to CONFORM to HF 976) jm/jh 16/ 33

distributed by will or intestate succession is, or has been at 1 any time since the decedent’s death, fifty thousand dollars 2 or less and there is no real property or for deaths occurring 3 before January 1, 2025, the real property passes to persons 4 exempt from inheritance tax as joint tenants with full rights 5 of survivorship pursuant to chapter 450 . 6 Sec. 44. Section 633.361, subsection 12, Code 2025, is 7 amended to read as follows: 8 12. A listing of all other items, with estimated values, 9 which are subject to Iowa inheritance tax for deaths occurring 10 before January 1, 2025, or federal estate tax. 11 Sec. 45. Section 633.365, Code 2025, is amended to read as 12 follows: 13 633.365 Appraisement. 14 Property belonging to the estate need not be appraised 15 unless required for inheritance tax purposes for deaths 16 occurring before January 1, 2025 , under the provisions of this 17 probate code, or by order of court. 18 Sec. 46. Section 633.399, Code 2025, is amended to read as 19 follows: 20 633.399 Report for approval. 21 After making any such sale, mortgage, exchange or lease 22 of real property, the personal representative shall make 23 a verified report thereof to the court. The court shall 24 examine said report, and if satisfied that the sale, mortgage, 25 exchange, or lease has been at a price and upon terms 26 advantageous to the estate, and, in all respects, made in 27 conformity with law, and that it ought to be confirmed, shall 28 confirm the same and order the personal representative to 29 deliver a deed, mortgage, lease or other proper instruments 30 to the persons entitled thereto; provided, however, that in 31 the event said real property has been sold at private sale 32 without an appraisal for inheritance tax purposes for a death 33 occurring before January 1, 2025, or for purpose of such sale, 34 or, if it has been so appraised and has been sold at private 35 -17- SF 614.1945 (1) 91 (amending this SF 614 to CONFORM to HF 976) jm/jh 17/ 33

sale for less than the appraised value thereof, then, upon the 1 filing of such report, the court may enter an order fixing a 2 time and place for hearing thereon and prescribe a notice of 3 such hearing to be served upon all interested persons, any one 4 of whom, prior to the time fixed for such hearing, may file 5 written objections to the entry of an order approving said 6 sale. If not satisfied that the sale, mortgage, exchange, or 7 lease has been made in conformity with law and that it is to the 8 best interests of the estate, the court may reject the sale, 9 mortgage, exchange, or lease, and enter such orders as the 10 court may deem advisable. 11 Sec. 47. Section 633.477, subsection 10, Code 2025, is 12 amended to read as follows: 13 10. A statement as to whether or not all statutory 14 requirements pertaining to taxes have been complied with 15 including whether the federal estate tax due has been paid, 16 whether a lien continues to exist for any federal estate tax, 17 and whether inheritance tax was paid or a return was filed in 18 this state for a death occurring before January 1, 2025 . 19 Sec. 48. Section 633.479, subsection 2, paragraph a, 20 subparagraph (5), Code 2025, is amended to read as follows: 21 (5) Compliance with sections section 422.27 , and section 22 450.58 for deaths occurring before January 1, 2025, have been 23 fulfilled. 24 Sec. 49. Section 633.481, Code 2025, is amended to read as 25 follows: 26 633.481 Certificate to county recorder for tax purposes 27 without administration. 28 When an inventory or report is filed under section 450.22 for 29 deaths occurring before January 1, 2025 , without administration 30 of the estate of the decedent, the heir or heir’s attorney 31 shall prepare and deliver to the county recorder of the county 32 in which the real estate is situated a certificate pertaining 33 to each parcel of real estate described in the inventory or 34 report. Any fees for certificates or recording fees required 35 -18- SF 614.1945 (1) 91 (amending this SF 614 to CONFORM to HF 976) jm/jh 18/ 33