Bills › 91st General Assembly
Exempting the sale of toilet paper from the sales tax
Sponsored by the House Ways and Means Committee, Rep. Eddie Andrews (R), Rep. Brett Barker (R), Rep. Brooke Boden (R), Rep. Jacob Bossman (R), Rep. Taylor R. Collins (R), Rep. Cindy Golding (R), Rep. Pat Grassley (R), Rep. Bill Gustoff (R), Rep. Bob Henderson (R), Rep. Steven C. Holt (R), Rep. Heather Hora (R), Rep. Chad Ingels (R), Rep. Craig P. Johnson (R), Rep. Megan Jones (R), Rep. Joshua Meggers (R), Rep. Ann Meyer (R), Rep. Matthew Rinker (R), Rep. Jennifer J. Smith (R), Rep. Ryan Weldon (R), Rep. Hans C. Wilz (R), Rep. Derek Wulf (R), Rep. David E. Young (R)
Topics:Taxes
Same legislation: HF 964
Where it is now
- Done: IntroducedMarch 17, 2025
- Done: SubcommitteeApril 8, 2025
- Done: House committeeApril 16, 2025
- Done: Passes the HouseApril 23, 202582–11
- Stopped: Senate committeeDied when the General Assembly ended
- Next: Passes the Senate
- Next: To the Governor
- Next: Signed into law
Died when the session ended The 2026 session adjourned on May 3, 2026, the General Assembly’s last regular session. Bills that didn’t pass both chambers died. What’s a funnel?
What’s in it
AI summary People in Iowa would no longer have to pay sales tax when they buy toilet paper. This change also means they won't have to pay a use tax on these items.1
Read the official explanation
This bill exempts the sale of toilet paper from the sales tax. By operation of Code section 423.6, an item exempt from the imposition of the sales tax is also exempt from the use tax imposed in Code section 423.5.
Why it matters. People buying toilet paper would no longer pay state sales or use tax on these purchases. This change is estimated to decrease annual revenues for the state's General Fund by $6.0 million, the SAVE Fund by $1.2 million, and the LOST by $1.2 million in fiscal year 2026.2
Senate subcommittee
Named April 28, 2025. It hasn’t reported yet.
Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part
Fiscal note
AI summary This bill exempts the sale of toilet paper from the state sales and use tax. It is estimated to decrease annual revenues for the state's General Fund, the SAVE Fund, and the LOST by $6.0 million, $1.2 million, and $1.2 million, respectively, in fiscal year 2026. These decreases are projected to continue through fiscal year 2030.4
Read the fiscal note
Description
House File 1019 exempts the sale of toilet paper from the sales and use tax.
Assumptions
- The Bill is effective July 1, 2025 (FY 2026).
- Iowa’s population is 0.96% of the U.S. population.
- The quantity of toilet paper purchased by each household is the same.
- The average number of people in each Iowa household is the same as the average number of people in each national household.
- Business expenditures on toilet paper are assumed to be 50.0% of household expenditures on toilet paper.
- The cost of toilet paper in Iowa is assumed to be 88.8% of the national average.
- The value of purchases of toilet paper is assumed to increase by 2.0% annually.
- Secure an Advanced Vision for Education (SAVE) refunds are 1.0% of taxable expenditures. Local Option Sales Tax (LOST) distributions are estimated to be 0.97% of taxable expenditures.
Fiscal Impact
House File 1019 is estimated to decrease annual revenues to the General Fund, the SAVE Fund, and the LOST by the amounts in Figure 1.
Figure 1 — Fiscal Impact of HF 1019 (in Millions)
Sources
- Iowa Department of Revenue
- Bureau of Economic Analysis
- Bureau of Labor Statistics
- United States Census BureauGeneral Fund SAVE LOST
- FY 2026 -6.0$ -1.2$ -1.2$
- FY 2027 -6.2 -1.2 -1.2
- FY 2028 -6.3 -1.3 -1.2
- FY 2029 -6.4 -1.3 -1.2
- FY 2030 -6.5 -1.3 -1.3
- Toilet Paper, Sales Tax Exemption · April 23, 2025
Family tree
91st General Assembly
Similar bills
- HF 1022 Exempting the sale of laundry soap or detergent from the sales tax91st General Assembly · Passed HouseSimilar
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