A bill for an act exempting the services furnished by private employment agencies from the state sales and use tax.

This bill exempts private employment agencies in Iowa from paying state sales and use tax on their services. It amends Iowa Code by removing a tax obligation that currently applies to these agencies, meaning they will no longer pay tax on the fees they charge for job placement services. Under the bill, this exemption also extends to use tax under Code section 423.5 due to the automatic linkage between sales and use tax exemptions. The change directly affects private employment agencies operating in Iowa, reducing their tax burden on core service fees.