Exempting the sale of laundry soap or detergent 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. Taylor R. Collins (R), Rep. Pat Grassley (R), Rep. Bill Gustoff (R), Rep. Bob Henderson (R), Rep. Steven C. Holt (R), Rep. Heather Hora (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 963

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Official bill page Lobbyist declarations One-pager to print

Where it is now

Done: IntroducedMarch 17, 2025
Done: SubcommitteeApril 8, 2025
Done: House committeeApril 16, 2025
Done: Passes the HouseApril 24, 202584–5
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 will no longer have to pay sales tax or use tax when they buy laundry soap or detergent. This change makes these cleaning products cheaper for shoppers.¹

Read the official explanation

This bill exempts the sale of laundry soap or detergent. 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 laundry soap or detergent would no longer pay state sales or use tax on these items. This change is estimated to decrease annual revenues to the General Fund by $9.7 million, the SAVE Fund by $1.9 million, and the LOST by $1.9 million in fiscal year 2026.²

Full bill text³

Senate subcommittee

Named April 30, 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 laundry soap and laundry detergent from the state sales and use tax. It is estimated to decrease annual revenues to the General Fund, the SAVE Fund, and the LOST by $9.7 million, $1.9 million, and $1.9 million respectively in fiscal year 2026. These decreases are projected to grow slightly each year through fiscal year 2030.⁴

Read the fiscal note

Description

House File 1022 exempts the sale of laundry soap and laundry detergent 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 soaps and detergents 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 laundry soap and laundry detergent are assumed to be 10.0% of household expenditures on laundry soap and laundry detergent.
Expenditures on laundry soap and laundry detergent are assumed to represent 75.0% of expenditures on laundry and cleaning products.
The cost of laundry soap and laundry detergent in Iowa is assumed to be 88.8% of the national average.
The value of purchases of laundry soap and laundry detergent 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 1022 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 1022 (in Millions)

Sources

Iowa Department of Revenue
Bureau of Economic Analysis
Bureau of Labor Statistics
United States Census BureauGeneral Fund SAVE LOST
FY 2026 -9.7$ -1.9$ -1.9$
FY 2027 -9.8 -2.0 -1.9
FY 2028 -10.0 -2.0 -1.9
FY 2029 -10.2 -2.0 -2.0
FY 2030 -10.5 -2.1 -2.0

Sales Tax Exemption for Soap and Detergents · April 23, 2025

Reading a fiscal note⁵

Iowa Code it changes

Amends§423.3

How the Code works⁶

Lobbying

2 for · 0 against · 2 undecided · Who →

Family tree

91st General Assembly

HF 963Renumbered HF 1022Passed a chamberfrom HF 963

Similar bills

HF 1019 Exempting the sale of toilet paper from the sales tax
91st General Assembly · Passed House
Similar

Matched by wording or an identical title.

Notes

The summary is written by an AI model from the official explanation. It can miss details; the explanation and the bill are what count. ↩
Written by an AI model from the official explanation and fiscal note only, for bills that passed a chamber, drew heavy lobbying or carry a large cost. It doesn’t weigh whether the bill is a good idea. ↩
The explanation is printed with the bill as introduced and written by the Legislative Services Agency, the Legislature’s nonpartisan staff. Amendments adopted later aren’t reflected in it. ↩
Written by an AI model from the newest fiscal note. It can miss details; the note itself is what counts. ↩
Fiscal notes are nonpartisan cost estimates from the Legislative Services Agency’s Fiscal Services Division. The newest is listed first. ↩
Code sections are read from the bill as introduced. Each links to every bill touching that chapter of the Iowa Code. ↩