This bill (HSB 311) allows Iowa public school districts to use funds from their district management levy to cover school safety and security costs. Specifically, it authorizes spending on weapons detection systems, door monitoring, and hiring qualified personnel - including school resource officers (as defined federally), private security officers with weapon permits, reserve peace officers, or certified peace officers. The policy change applies to school budgets starting July 1, 2025, and directly affects school districts managing their local levies. It provides a clear funding mechanism for safety infrastructure and staffing without altering existing levy authorization rules.
HF 110 proposes to exclude overtime pay from the individual income tax in Iowa. This bill directly affects individuals who earn overtime compensation. It allows taxpayers to subtract the portion of their compensation earned at one and a half times their regular rate from their taxable income. These provisions would apply to tax years beginning on or after January 1, 2026.
This bill imposes new taxes on specific nicotine and non-nicotine products sold in Iowa. It establishes a tax of $1.15 per vapor cartridge and 6.8 cents per nicotine pouch. Additionally, a 15% tax is placed on the retail sales price of vapor products requiring e-liquids and e-liquids sold separately. The revenue generated from these new taxes will be directed to a newly created Iowa cancer research fund, managed by the Department of Health and Human Services, to support cancer research within the state. Disbursements from this fund are set to begin on July 1, 2026.
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.
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.
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.
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.
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.
This bill establishes a new property tax assessment limitation specifically for commercial properties primarily used as licensed child care facilities. It allows the portion of a commercial property dedicated to child care to be assessed for tax purposes at the same rate as residential property, rather than the standard commercial rate. To qualify, facility owners must apply to their local assessor by July 1st of the assessment year, providing proof of their child care license and property details. This assessment limitation, effective for valuations beginning January 1, 2025, is also factored into state appropriations that help compensate local governments for certain assessment limitations.
HF 1020 modifies the child and dependent care tax credit available to individual income taxpayers in Iowa. The bill revises the structure of the credit by reducing the number of income thresholds from seven to four. It removes the previous maximum income threshold of $90,000, making all taxpayers eligible, with those earning $25,000 or more now able to claim 50% of the federal credit. These changes apply retroactively to tax years beginning on or after January 1, 2025.
