Bills › 91st General Assembly
Exempting the sale of laundry soap or detergent from the sales tax
Sponsored by 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 1022
Where it is now
- Done: IntroducedMarch 17, 2025
- Done: SubcommitteeApril 8, 2025
- Done: House committeeApril 16, 2025
- Skipped: Passes the HouseContinued as HF 1022
- Next: Senate committee
- Next: Passes the Senate
- Next: To the Governor
- Next: Signed into law
Became HF 1022 → Its progress continues under the new number. Go to HF 1022 What’s a funnel?
What’s in it
AI summary People in Iowa will no longer have to pay sales 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.
House subcommittee
Named April 8, 2025. On April 9, 2025 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
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 $1.9 million respectively in fiscal year 2026. These decreases are projected to grow slightly each year through fiscal year 2030.3
Read the fiscal note
Description
House File 1022 exempts the sale of laundry soap and laundry detergent from the sales and use tax.
Assumptions
- The Bill is effective July 1, 2025 (FY 2026).
- Iowa’s population is 0.96% of the U.S. population.
- The quantity of soaps and detergents purchased by each household is the same.
- The average number of people in each Iowa household is the same as the average number of people in each national household.
- Business expenditures on laundry soap and laundry detergent are assumed to be 10.0% of household expenditures on laundry soap and laundry detergent.
- Expenditures on laundry soap and laundry detergent are assumed to represent 75.0% of expenditures on laundry and cleaning products.
- The cost of laundry soap and laundry detergent in Iowa is assumed to be 88.8% of the national average.
- The value of purchases of laundry soap and laundry detergent is assumed to increase by 2.0% annually.
- Secure an Advanced Vision for Education (SAVE) refunds are 1.0% of taxable expenditures. Local Option Sales Tax (LOST) distributions are estimated to be 0.97% of taxable expenditures.
Fiscal Impact
House File 1022 is estimated to decrease annual revenues to the General Fund, the SAVE Fund, and the LOST by the amounts in Figure 1.
Figure 1 — Fiscal Impact of HF 1022 (in Millions)
Sources
- Iowa Department of Revenue
- Bureau of Economic Analysis
- Bureau of Labor Statistics
- United States Census BureauGeneral Fund SAVE LOST
- FY 2026 -9.7$ -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
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91st General Assembly
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- HF 1019 Exempting the sale of toilet paper from the sales tax91st General Assembly · Passed HouseSimilar
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