Bills › 91st General Assembly
Exempting sales and use taxes incurred for constructing a regional water trail system by a nonprofit corporation, and including effective date and retroactive applicability provisions
Sponsored by the House Ways and Means Committee
Topics:Taxes
Same legislation: HSB 774
Where it is now
- Done: IntroducedApril 8, 2026
- Done: SubcommitteeApril 8, 2026
- Done: House committeeApril 15, 2026
- Stopped: Passes the HouseDied when the General Assembly ended
- Next: Senate committeeFunnel: by March 20, 2026
- Next: Passes the Senate
- Next: To the Governor
- Next: Signed into law
Died when the session ended The General Assembly adjourned on October 2, 2026. Bills that didn’t pass both chambers died. What’s a funnel?
What’s in it
This bill exempts sales and use taxes incurred by a nonprofit corporation for the construction of a regional water trail system. The bill makes a nonprofit corporation (nonprofit) organized under Code chapter 504 a designated exempt entity, which allows the nonprofit corporation to apply to the department of revenue for the refund of the sales and use tax upon sales of building materials, supplies, and equipment, or from services furnished, by a contractor in the performance of a written contract with the nonprofit.
Read the full explanation
The nonprofit is generally defined to mean an Iowa nonprofit corporation that has a majority of voting board members appointed by political subdivisions of the state, that implements a regional recreational and dam safety plan, and constructs a regional water trail system. The bill also exempts from the sales tax the sales price of tangible personal property or specified digital products sold or of services furnished to the nonprofit.3(80).3(80)(c)(1) to specify written contracts with an exempt entity for the sales tax exemption even if another designated exempt entity ultimately owns the property subject to the construction project.5. The bill takes effect upon enactment and applies retroactively to January 1, 2025, to all tangible personal property or specified digital products sold, or services furnished, to the designated exempt entity occurring on or after that date. The bill also applies retroactively to January 1, 2025, to building materials, supplies, equipment, or services furnished to a contractor and used in the performance of a written contract with the designated exempt entity occurring on or after that date.
From the explanation printed with the bill as introduced, written by the Legislative Services Agency. Amendments adopted later aren’t reflected. Full bill text
House subcommittee
Named April 8, 2026 (as HSB 774). On April 13, 2026 it recommended passage.
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
House File 2774 is estimated to decrease revenue to the General Fund, the SAVE Fund, and the LOST by the amounts shown in Figure 1.
- Sales Tax Exemptions, Water Trails · April 17, 2026
Nonpartisan cost estimates from the Legislative Services Agency’s Fiscal Services Division. The newest is first. Reading a fiscal note
Iowa Code it changes
Read from the bill as introduced. Each links to every bill touching that chapter of the Iowa Code. How the Code works
Lobbying
4 for · 0 against · 4 undecided · Who →
Family tree
Where this legislation came from and where it went: earlier tries, the versions it moved through this Assembly, and later bills built on it.
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91st General Assembly
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