ABI-Supported Regulatory Clarification Saves Millions; Session Delay Issued on Lease Vehicle Taxation Rule

November 12, 2020

The Administrative Rules Review Committee (ARRC) held its monthly meeting this past Tuesday and took two ABI-supported actions that will benefit employers. The first was the approval of filed rule ARC5226C. The rule updates the current aquatic life water quality criteria with the latest scientific information on metal toxicity. Based on new data, the current approach to measuring total recoverable metals is overly stringent and is being relaxed. Due to this change, the DNR estimates that total cost savings for certain wastewater dischargers will be between $85-$95 million. ABI, along with others, submitted comments in support of this rule change, which will provide greater flexibility for industry compliance.

A separate filed rule ARC5201C, which was put forward by the Department of Revenue, would have ended up double taxing transactions between members of a controlled group of business entities. ABI member Master Builders of Iowa laid out the case for why this rule shouldn’t move forward at this time, requesting a session delay on the rule so the Legislature could address this in 2021. Members of the ARRC voted unanimously in favor of delaying the implementation of the rule, which is very positive news for employers who would have been affected by it. If you have any questions about either rule, please contact JD Davis or Brad Hartkopf.