Budget & Taxes (Sales Tax)

in committee · Iowa · House Feb 24, 2026

HF 2027: A bill for an act relating to the sales tax holiday.

This bill raises the price limit for tax-free purchases during Iowa's annual sales tax holiday from $100 to $200. The holiday occurs on the first weekend in August each year. Residents purchasing qualifying items (like clothing or school supplies) under $200 will not pay state sales tax during this period. The change directly affects Iowa consumers buying eligible items during the designated weekend.

Topics ✓ Budget & TaxesSupports Budget & TaxesRaises tax-free purchase limit from $100 to $200 during sales tax holiday, providing direct tax relief to consumers on essential items like clothing/school supplies.95% confidence

Sub-Topics Procurement Sales Tax

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in committee · Iowa · Senate Feb 3, 2026

SSB 3025: A bill for an act relating to the excise tax on certain ethanol blended gasoline purchased exclusively for use in an implement used in agricultural production.

This bill exempts ethanol-blended gasoline containing over 85% ethanol from Iowa's excise tax when purchased exclusively for use in farm equipment. It directly affects Iowa farmers and agricultural businesses that use such fuel in machinery for farming operations. The key provision removes the tax at the point of purchase (at terminals or refineries) for qualifying fuel, eliminating the need to pay the tax and seek a refund under current law. This change applies specifically to gasoline meeting the 85% ethanol threshold used solely in agricultural implements, streamlining the tax process for this sector.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts ethanol-blended gasoline tax for farmers, providing direct tax relief to agricultural sector under tax exemptions.95% confidence ✓ EnergySupports EnergyExempts high-ethanol fuel from tax, promoting renewable energy use in agriculture by reducing costs for farmers using ethanol-blended gasoline.90% confidence

Sub-Topics Sales Tax

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in committee · Iowa · Senate Feb 3, 2025

SSB 1045: A bill for an act relating to the fee for duplicates or other evidence of interstate fuel use tax permits or licenses.

This bill increases the fee for duplicate or evidence of interstate fuel use tax permits from 50 cents to $1. It directly affects commercial vehicles operating across state lines that use fuel purchased in another state but operate in Iowa, requiring them to carry this permit evidence. The key provision amends Iowa law to set the new fee amount for these duplicates or evidence, which must be carried in or on the vehicle. This change applies to vehicles using motor fuel, special fuel, or electric fuel acquired out-of-state while operating in Iowa. The bill does not alter the underlying requirement to pay Iowa fuel taxes on fuel consumed within the state.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill increases fee for interstate fuel permit duplicates from 50¢ to $1, generating additional state revenue through a tax-related fee adjustment.90% confidence

Sub-Topics Sales Tax

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in committee · Iowa · Senate Mar 17, 2025

SF 488: A bill for an act relating to vehicle registration plates, including registration plate frames and Gadsden flag special registration plates, providing fees, and making appropriations.

This bill creates Gadsden flag special vehicle registration plates in Iowa, featuring a specific design with a yellow-to-white background, black text, a rattlesnake image, and the phrase "Don’t Tread on Me." Owners paying a $50 annual special fee (plus $5 for personalized plates) can obtain these plates, with fees deposited into the road use tax fund. Monthly, funds from these fees (minus $1 per plate) are transferred to the state general fund to provide grants for firearm safety education and training, prioritizing NRA-affiliated groups. The bill directly affects vehicle owners seeking specialty plates and modifies plate design rules and fee structures.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates $50 annual special fee generating revenue deposited into road use fund, with transfers to general fund for firearm safety education grants, advancing public safety funding.95% confidence

Sub-Topics Sales Tax State Budget

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introduced · Iowa · Legislature

1388XD: Tobacco Products, Units Sold (1388XD) - Revenue, Department of

This bill clarifies how "units sold" are measured for tobacco tax purposes in Iowa. It specifies that for cigarettes, "units sold" means packs bearing the state tax stamp, and for roll-your-own tobacco, it means containers where tax is due under existing law. The Department of Revenue must adopt rules to track state excise tax payments from tobacco manufacturers annually. This change directly affects tobacco manufacturers and the Department of Revenue by updating the method used to calculate tax liability. The bill takes effect immediately upon enactment.

Topics ✓ Budget & TaxesSupports Budget & TaxesClarifies tax collection method for tobacco products to ensure accurate state revenue tracking, strengthening fiscal management and tax compliance under existing law.90% confidence

Sub-Topics Sales Tax

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in committee · Iowa · House Apr 24, 2025

HSB 226: A bill for an act making a rural water district a designated exempt entity for purposes of the sales and use tax.

HSB 226 designates rural water districts, organized under specific state chapters, as exempt entities for sales and use tax purposes. This allows these districts to apply for refunds of sales and use tax paid on building materials, supplies, equipment, and services provided by contractors for written contracts. A key change is that construction services furnished to the water district also become exempt from sales tax. To avoid overlapping provisions, the bill removes a current sales tax exemption that applies only to building materials sold to rural water districts.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax exemptions for rural water districts, reducing their tax burden on construction materials and services under sales/use tax policy.95% confidence

Sub-Topics Sales Tax Tax Incentives

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in committee · Iowa · House Jan 29, 2025

HSB 96: A bill for an act relating to permissible local sales and services tax expenditures.

This bill (HSB 96) clarifies that cities and counties in Iowa may use local sales and services tax revenue to fund nonprofit organizations (specifically those exempt under IRS 501(c)(3)) that provide public services within their communities. It directly affects local governments and qualifying nonprofits by expanding eligible recipients for these tax funds beyond previous interpretations. The key change adds explicit language to the tax code, allowing payments to 501(c)(3) nonprofits for services like emergency medical support or other public programs. This does not create new taxes or change tax rates but specifies existing tax money can now be directed to these nonprofits for public service delivery.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands eligible recipients for local tax revenue to fund public services via 501(c)(3) nonprofits, strengthening fiscal management of existing tax funds.90% confidence

Sub-Topics Revenue Sales Tax Tax Incentives

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in committee · Iowa · Senate Feb 19, 2025

SJR 6: A joint resolution proposing an amendment to the Constitution of the State of Iowa by repealing the natural resources and outdoor recreation trust fund, and dedicating a portion of state revenue from sales and use taxes imposed for the benefit of property tax relief.

SJR 6 is a constitutional amendment proposing to repeal Iowa’s natural resources and outdoor recreation trust fund (which funded parks, trails, and conservation) and replace it with a new property tax relief trust fund. The amendment would dedicate a portion of increased sales and use tax revenue (capped at 0.375% of taxable sales) to lower school district property tax levies uniformly across the state. This fund would replace revenue previously generated from the foundation property tax levy, directly reducing property taxes for homeowners and businesses that fund public schools. As a constitutional amendment, it requires voter approval after legislative passage.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill dedicates sales tax revenue (capped at 0.375%) to lower school district property taxes, directly providing tax relief as a core mechanism.95% confidence ✓ EducationSupports EducationDedicates 0.375% sales tax revenue to lower school district property tax levies uniformly, replacing foundation levy revenue to provide stable funding for K-12 schools.85% confidence ✗ EnvironmentOpposes EnvironmentRepeals natural resources trust fund (funded parks/trails) and redirects revenue to property tax relief, defunding conservation efforts95% confidence

Sub-Topics Property Tax Revenue Sales Tax Parks & Recreation

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in committee · Iowa · House Mar 3, 2025

HSB 236: A bill for an act relating to the sales tax imposed on amusement devices.

This bill amends Iowa's sales tax code to exempt the portion of revenue from amusement devices that will be paid out as prizes. It applies to operators of pinball machines, bowling alleys, slot machines, and similar games where prizes are awarded, such as raffles or card tournaments. The 6% sales tax will now only apply to the net revenue after prize amounts are subtracted, not the full sales price. This change directly affects businesses operating these devices by reducing their taxable income. The bill does not legalize any currently prohibited games or devices.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts prize revenue from sales tax, reducing taxable income for amusement device operators, providing direct tax relief per bill's explicit amendment to tax code.95% confidence

Sub-Topics Sales Tax

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in committee · Iowa · House Mar 6, 2025

HF 141: A bill for an act imposing a sales tax on the sales price of items containing traceable amounts of piper methysticum.

HF 141 imposes a sales tax on items containing traceable amounts of kava (piper methysticum), such as kava root products sold as beverages or supplements. The bill directly affects businesses selling these kava-containing items by requiring them to collect and remit the sales tax on the full sales price. Key provisions amend Iowa's tax code to explicitly define "piper methysticum" and exclude kava from the list of non-taxable food items. This creates a new tax category for kava products, separate from other dietary supplements or food.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates new sales tax category for kava products, directly increasing state tax revenue through tax code amendments.90% confidence

Sub-Topics Sales Tax

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