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New law bans city, county licenses or fees on temp businesses run by kids

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July 7th, 2021 by Ric Hanson

(Radio Iowa) – Under a new state law, kids who mow lawns, walk dogs or launch other temporary businesses don’t have to pay any business-related fees to cities or counties. Representative Jon Jacobsen of Council Bluffs calls it the Youth Entrepreneurship Act.

Under the new law, cities and counties cannot require permits, licenses or any fees for businesses run by Iowans under the age of 18 – as long as the business operates for no more than 89 days every year. The Iowa Senate gave the proposal unanimous support. Senator Roby Smith of Davenport was the only senator who spoke during senate consideration of the policy.

The proposal got the support of 79 House members, but a dozen voted against it. Representative Mary Wolfe of Clinton says the law is unnecessary because cities and counties aren’t imposing fees or requiring kids to get licenses or permits for their temporary businesses.

LAST year the legislature passed a law that forbids local city or county policies that require kids who run food stands to get permits or licenses. In 2011, Coralville police shut down three child-operated lemonade stands as thousands of bicyclists on RAGBRAI came through town because the kids didn’t have city permits to operate.