A bill for an act eliminating the state sales and use taxes and including effective date provisions.

HF 498 eliminates Iowa's 6% state sales and use tax on retail purchases, services, and digital products, effective January 1, 2026. It removes the tax from all taxable transactions previously subject to the 6% rate, including goods, services, mobile telecommunications, and digital products. The bill also eliminates the 1% tax dedicated to the SAVE fund (Secure an Advanced Vision for Education). Local option taxes adopted under Chapter 423B remain unaffected by this change.