Budget & Taxes

passed both · Iowa · Senate May 11, 2026

SJR 11: A joint resolution proposing an amendment to the Constitution of the State of Iowa relating to requirements for certain state tax law changes.

SJR 11 proposes an amendment to the Iowa Constitution that would change the requirements for passing certain state tax laws. It mandates that any bill increasing state individual or corporate income tax rates, or establishing a new state tax on income or reserves, must receive a two-thirds majority vote in both the House and Senate. This requirement does not apply to taxes imposed by local governments. The amendment also sets a one-year limit for legal challenges to the enactment of such tax bills. If passed by two consecutive General Assemblies, Iowa voters would consider this amendment in the November 2026 general election.

Topics ✗ Budget & TaxesOpposes Budget & TaxesRequires two-thirds majority for income/corporate tax increases, restricting legislative ability to raise taxes per constitutional amendment.90% confidence

Sub-Topics Business Taxes State Budget

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in committee · Iowa · House Apr 17, 2025

HF 110: A bill for an act excluding overtime pay from the individual income tax, and including applicability provisions.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesExcludes overtime pay from taxable income, providing direct tax relief for workers earning overtime compensation.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentExcludes overtime pay from income tax, increasing take-home pay for workers earning overtime compensation.95% confidence

Sub-Topics Income Tax Labor Standards

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in committee · Iowa · Senate Apr 22, 2025

SF 475: A bill for an act imposing a tax on certain products containing nicotine or nonnicotine substances, creating the Iowa cancer research fund, and including effective date provisions.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesImposes new excise taxes on nicotine products to fund Iowa cancer research, directly allocating tax revenue to a state health program per bill's purpose.95% confidence

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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 991: A bill for an act placing assessment limitations for property tax purposes on commercial child care facilities, and including effective date, applicability, and retroactive applicability provisions.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill reduces property tax burden on child care facilities by applying residential tax rates, providing tax relief for essential services and aligning with fiscal support indicators.95% confidence

Sub-Topics Property Tax

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passed · Iowa · House Apr 28, 2025

HF 1020: A bill for an act modifying the child and dependent care credit available against the individual income tax, and including retroactive applicability provisions.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands tax credit eligibility to middle-income earners ($25k+), providing tax relief through modified structure and retroactive application.95% confidence

Sub-Topics Tax Credits

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