Budget & Taxes (Sales Tax)

in committee · Iowa · House Mar 5, 2026

HSB 324: A bill for an act excluding interchange fees imposed upon certain taxes at points of sale.

This bill (HSB 324) requires credit and debit card networks to exclude sales tax amounts from the total transaction when calculating interchange fees charged to sellers. It directly affects retailers and businesses that collect sales tax on credit/debit card purchases, as they currently pay fees on the full transaction amount including tax. The key provision mandates that payment networks either deduct tax amounts from interchange fees at settlement or provide rebates proportional to the tax portion. This change aims to reduce costs for sellers by ensuring they are not charged fees on tax amounts collected for the government. The bill also includes penalties for non-compliance and a process for sellers to claim rebates if tax wasn't captured at checkout.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill reduces business costs by excluding sales tax from interchange fees, promoting fiscal responsibility in transaction processing related to taxation.90% confidence

Sub-Topics Business Taxes Fees & Licensing Sales Tax

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in committee · Iowa · House Apr 10, 2025

HF 247: A bill for an act exempting the sales price of honeybees from the state sales and use tax.

This bill (HF 247) removes the state sales and use tax on purchases of honeybees in Iowa. It directly affects beekeepers, apiaries, and businesses that sell honeybees by eliminating the tax they would otherwise pay when buying these insects. The key provision amends Iowa’s tax code to specifically exempt honeybee sales from both the sales tax (under Code section 423.3) and the use tax (under Code section 423.5, due to existing tax code rules). This change means customers buying honeybees will pay no state tax on the purchase price.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts honeybee sales from state sales/use tax, providing tax relief to beekeepers/apiaries, aligning with tax relief indicators for support.95% confidence

Sub-Topics Sales Tax

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passed · Iowa · House Apr 24, 2025

HF 996: A bill for an act providing a sales tax exemption for the furnishing of parking facilities services.

HF 996 proposes to eliminate the state sales tax on services provided by parking facilities. This bill directly affects individuals and businesses who pay for parking, as they would no longer be charged sales tax on these transactions. The legislation achieves this by striking a specific paragraph in the Iowa Code related to sales tax provisions for parking facilities services. This change would reduce the overall cost of parking for consumers.

Topics ✓ Budget & TaxesSupports Budget & TaxesEliminates sales tax on parking services, providing direct tax relief to consumers and reducing government revenue from this source.90% confidence

Sub-Topics Sales Tax Tax Incentives

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died · Iowa · House Apr 28, 2025

HF 963: A bill for an act exempting the sale of laundry soap or detergent from the sales tax.

House File 963 proposes to exempt the sale of laundry soap or detergent from the state sales tax. This bill directly affects consumers who purchase these cleaning products and the retailers who sell them. It achieves this by adding a new subsection to Section 423.3 of the state's Code, specifically exempting the sales price of laundry soap or detergent. As a result, these items would also be exempt from the state's use tax.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts essential cleaning products from sales tax, providing direct tax relief to consumers, aligning with support for tax relief measures.90% confidence

Sub-Topics Sales Tax

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died · Iowa · House Apr 28, 2025

HF 964: A bill for an act exempting the sale of toilet paper from the sales tax.

HF 964 proposes to exempt the sale of toilet paper from the state's sales tax. This would directly affect consumers, who would no longer pay sales tax on toilet paper purchases, and retailers, who would stop collecting sales tax on this item. The bill achieves this by amending Section 423.3 of the state's code, adding the sale of toilet paper to the list of items exempt from sales tax. By operation of existing code, this exemption would also apply to the use tax.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts essential household item (toilet paper) from sales tax, providing direct tax relief to consumers, aligning with support indicators for middle-income tax relief.95% confidence

Sub-Topics Sales Tax

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died · Iowa · House Apr 28, 2025

HF 966: A bill for an act exempting the sale of dietary supplements from the sales tax.

HF 966 proposes to exempt the sale of dietary supplements from the state sales tax. Currently, dietary supplements are subject to sales tax, similar to candy or soft drinks. This bill would amend existing law to remove dietary supplements from the list of items subject to sales tax. This change would reduce the cost for consumers purchasing products like vitamins and minerals, as the exemption also extends to the use tax.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts dietary supplements from sales tax, providing tax relief to consumers purchasing vitamins and minerals, aligning with tax relief indicators.95% confidence

Sub-Topics Procurement Sales Tax

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passed · Iowa · House Apr 28, 2025

HF 1019: A bill for an act exempting the sale of toilet paper from the sales tax.

HF 1019 is a bill that exempts the sale of toilet paper from sales tax in Iowa. This means that consumers purchasing toilet paper would no longer pay the state's sales tax on these items. The bill amends Section 423.3 of the Code 2025 to add toilet paper to the list of sales tax exemptions. Due to existing state law, this exemption also applies to the use tax on toilet paper.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts essential household item from sales tax, providing direct tax relief to lower-income households per tax exemption policy.95% confidence

Sub-Topics Procurement Sales Tax

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passed · Iowa · House Apr 28, 2025

HF 1021: A bill for an act exempting the sale of dietary supplements from the sales tax.

HF 1021 proposes to exempt the sale of dietary supplements from sales tax in Iowa. This bill amends existing law to include dietary supplements, such as vitamins and minerals, within the category of "food and food ingredients" that are not subject to sales tax. As a result, consumers purchasing these products would no longer pay sales tax. The exemption would also apply to the state's use tax.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts dietary supplements from sales tax, providing tax relief to consumers purchasing essential health products.95% confidence

Sub-Topics Procurement Sales Tax

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passed · Iowa · House Apr 30, 2025

HF 1022: A bill for an act exempting the sale of laundry soap or detergent from the sales tax.

HF 1022 proposes to exempt the sale of laundry soap and detergent from the state's sales tax. This change would directly affect consumers by reducing the cost of purchasing these household items. The bill amends existing state code to specifically remove sales tax from laundry soap and detergent, an exemption that would also apply to use tax.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts laundry soap/detergent from sales tax, providing direct tax relief to consumers for essential household items, aligning with tax relief indicators.95% confidence

Sub-Topics Procurement Sales Tax

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in committee · Iowa · House May 15, 2025

HF 1004: A bill for an act exempting the sales price of honeybees from the state sales and use tax.

House File 1004 proposes to exempt the sales price of honeybees from Iowa's state sales and use tax. This means that individuals or businesses purchasing honeybees would no longer be subject to these taxes on their acquisition. The bill achieves this by adding honeybees to the list of items specifically excluded from sales tax under existing state law. Consequently, honeybees would also be exempt from the state's use tax.

Topics ✗ Budget & TaxesOpposes Budget & TaxesExempts honeybees from sales/use tax, reducing state tax revenue and weakening fiscal management within Budget & Taxes framework.90% confidence

Sub-Topics Procurement Sales Tax

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