The 2021 MBI Legislative Priorities, as approved by the Board, are as follows:
Construction Manager At-Risk Legislation
MBI will introduce legislation that will allow the CMaR delivery for public owners, excluding the Department of Transportation. This legislation will mirror what was proposed last year that passed the Iowa Senate, but ultimately fell short of votes in the House. The proposal is a compromise between construction-related associations that includes a prohibition on the use of Design-Build at the Board of Regents.
Sales Tax Exemption for Sister-Companies
MBI will be pursuing an exemption of sales tax for companies that lease or rent equipment to another of their sister companies. We believe this was an unintended consequence of previous legislation and are working with the Department of Revenue to fix this issue. For example, a simple risk-management strategy businesses sometimes use it to put all equipment under one LLC for liability purposes. Companies would be faced with paying sales tax on the purchase of the equipment, and also the leasing or rental transaction. We believe this is a double tax and needs to be clarified.
MBI has a long-standing principle of protecting precious RIIF (Rebuild Iowa Infrastructure Fund) dollars. These are gambling revenue dollars used for public vertical infrastructure. We will continue to be judicious and watch closely how the Legislature plans to spend these dollars. The COVID crisis has certainly impacted gambling revenues, so it will be important we have a say.