This bill exempts ethanol-blended gasoline containing 85% or more ethanol (like E85) from Iowa's excise tax when purchased exclusively for use in farm equipment (implements of husbandry) used in agricultural production. It directly affects farmers and agricultural suppliers who buy this specific fuel for farming operations. To qualify for the exemption, purchasers must provide a valid exemption certificate to the supplier, which must be signed, complete, and retained by the supplier for three years. If the fuel is later used outside agricultural production, the purchaser must pay the excise tax directly to the Iowa Department of Revenue.
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.
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 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.
HF 541 creates a temporary sales tax exemption for firearms, firearm accessories, ammunition, and gun safes purchased on July 3, July 4, or July 5 each year. This exemption directly affects consumers making qualifying purchases on those specific dates by removing the state sales tax. The bill amends Iowa law to exempt these items from sales tax during this three-day period, and by law, this also eliminates the related use tax. The policy change is limited to those exact dates with no ongoing tax relief.
HF 498 eliminates Iowa's 6% state sales and use tax on retail purchases, services, and digital products, effective January 1, 2026. It removes the tax from all taxable transactions previously subject to the 6% rate, including goods, services, mobile telecommunications, and digital products. The bill also eliminates the 1% tax dedicated to the SAVE fund (Secure an Advanced Vision for Education). Local option taxes adopted under Chapter 423B remain unaffected by this change.
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.
HF 419 exempts from Iowa's state sales and use tax the cost of specific items purchased by hotels, motels, and similar lodging providers for direct guest use. The bill covers supplies like toiletries, towels, cleaning products, bottled water, and in-room amenities (e.g., coffee cups, TV service) when these items are actually consumed or used by the guest. This exemption applies only to supplies sold to the lodging provider for guest consumption, not for general business operations. The tax exemption also extends to use tax under Iowa law, as specified in the bill's explanation. The bill defines "lodging provider" as a business offering temporary lodging and "lodging supplies" as listed items used directly by guests.
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.
