This bill exempts ethanol-blended gasoline containing over 85% ethanol (E-85) from Iowa's excise tax when purchased at a terminal or refinery rack exclusively for use in farm machinery. It directly affects Iowa farmers and agricultural businesses that use E-85 fuel in tractors, harvesters, and other equipment for crop production. The key provision removes the requirement to pay the tax upfront and seek a refund under current law, making the exemption automatic for this specific agricultural use. This change applies only to fuel bought for farm equipment, not general vehicle use.
This bill exempts agricultural drones used directly for farming from Iowa's aircraft registration requirements and sales tax. It amends two laws: removing the need for farmers to register these drones with the state transportation department (which currently charges fees up to $5,000 annually) and waiving the standard 6% sales tax on such purchases. The exemption applies only to remotely piloted aircraft specifically used for agricultural purposes, as defined in state law. This directly affects Iowa farmers who operate drones for crop monitoring, spraying, or other farm-related tasks. The policy change simplifies compliance and reduces costs for this specific agricultural use case.
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.
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.
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.
SSB 1209 expands an existing sales tax exemption for telecommunications companies. Currently, these companies are exempt from sales tax on central office or transmission equipment *primarily* used for providing telecommunications services. The bill removes the word "primarily" from the statute. This change means that all purchases of such equipment used in furnishing telecommunications services on a commercial basis will be exempt from sales tax. This affects various entities, including local exchange carriers, cable television operators, long distance companies, and commercial mobile radio service providers.
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.
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.
This bill exempts the sales price of parking facility services from state sales tax in Iowa. It directly affects businesses that operate parking facilities, such as garages, lots, or parking management services. The bill achieves this by amending the Iowa Code to remove an existing tax provision that previously applied to these services. The change simplifies the tax treatment for parking providers without altering other tax rules.
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.
