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.