Proyectos de ley › 89.ª Asamblea General
Modifying the sales tax holiday to include emergency preparedness supplies
Dónde está ahora
- Hecho: Presentado24 de febrero de 2021
- Hecho: Subcomité25 de febrero de 2021
- Se detuvo: Comité de la CámaraMurió al terminar la Asamblea General
- Sigue: Lo aprueba la Cámara
- Sigue: Comité del Senado
- Sigue: Lo aprueba el Senado
- Sigue: A gobernador(a)
- Sigue: Firmado como ley
Murió al terminar la sesión La sesión de 2022 terminó el 24 de mayo de 2022, la última sesión ordinaria de la Asamblea General. Los proyectos que no pasaron por ambas cámaras murieron. ¿Qué es el embudo (funnel)?
Qué contiene
Resumen con IA During the annual clothing sales tax holiday in August, people could also buy emergency preparedness supplies without paying sales tax. To qualify, these basic household items must cost less than $100, though some specific items are exceptions to this rule. (Todavía no está traducido al español.)1
Lea la explicación oficial (en inglés)
This bill modifies the sales tax holiday. The bill adds the purchase of emergency preparedness supplies to the existing sales tax holiday for clothing during the period beginning at 12:01 a.m. on the first Friday of August and ending at midnight the following Saturday. As with an article of clothing, an emergency preparedness supply item must be under $100 to qualify for the sales tax holiday, except for certain specified items. The bill defines “emergency preparedness supplies” to mean a collection of basic household items needed in the event of an emergency, including a list of some of the items.
House subcommittee
Named February 25, 2021. On March 10, 2021 it recommended passage. Vote Total: 3-0.
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Nota fiscal
Resumen con IA Senate File 604 expands the annual sales tax holiday to include emergency preparedness supplies and removes the $100 price limit on certain items like generators and inverters. This bill is estimated to reduce revenues for the state's General Fund, the Secure an Advanced Vision for Education (SAVE) Fund, and local option sales tax (LOST). For fiscal year 2022, the maximum estimated reductions are $848,500 for the General Fund, $169,700 for the SAVE Fund, and $164,600 for LOST. (en inglés)3
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Description
Senate File 604 expands the Iowa sales tax holiday to include emergency preparedness supplies. An exception to the selling price limit of $100 per item is provided for tie down kits, portable generators, transfer switches, and inverters.
Background
The State currently has an annual sales tax holiday held on the first Friday and Saturday of August. During this period, clothing and footwear that meet certain criteria are exempt from sales tax and local option sales tax. The exemption does not apply to any item selling for $100 or more. The Department of Revenue estimates for the amount of sales tax exempted in recent years during the sales tax holiday are listed below:
- FY 2018 = $4.1 million
- FY 2019 = $4.4 million
- FY 2020 = $4.6 million
Alabama, Florida, Texas, and Virginia currently have a sales tax holiday for certain emergency preparedness supplies.
Assumptions
- Current FY 2022 annual sales of emergency preparedness supplies in the State are estimated to be $18.0 million.
- An estimated 5.0% of emergency preparedness supplies will be purchased during the sales tax holiday. Additionally, 5.0% of purchasers will use the sales tax holiday period to purchase higher-priced items than they would purchase without the holiday.
- States with a similar sales tax holiday or similar legislation were reviewed to determine the estimated fiscal impact percentage based on the total sales tax revenue collected by the state. The estimated fiscal impact percentages were in a range from 0.01% to 0.07%, with an average of 0.05%.
- Growth trends in future fiscal years are based on Consumer Price Index Urban (CPI-U) average estimated increases of 2.34% from FY 2022 to FY 2026.
Fiscal Impact
Senate File 604 would reduce revenues to the General Fund, Secure an Advanced Vision for Education (SAVE) Fund, and local option sales tax (LOST) by the estimated ranges listed below.
Sources
- Department of Revenue
- Iowa Emergency Management Association
- Arkansas Department of Finance and Administration
- Florida Finance and Tax Committee
- Texas Comptroller of Public Accounts
- LSA analysis and calculations
- Sales Tax Holiday, Emergency Preparedness Supplies · 23 de abril de 2021
Lo que cambia del Código de Iowa (Iowa Code)
Modifica§423.3
Cabildeo
8 a favor · 0 en contra · 7 indecisos · Quiénes →
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89th General Assembly