Relating to the distribution of water exempt from taxation and the use of tax exemption certificates, and providing civil penalties

Where it is now

1. ✓
   Done: IntroducedFebruary 4, 2025
2. ✓
   Done: SubcommitteeFebruary 11, 2025
3. ✕
   Stopped: Senate committeeDied when the General Assembly ended
4. Next: Passes the Senate
5. Next: House committeeFunnel: by March 20, 2026
6. Next: Passes the House
7. Next: To the Governor
8. 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 relates to the distribution of water exempt from taxation. The bill requires a water utility to accept and retain a valid exemption certificate and shall not unnecessarily require a person who presents a valid exemption certificate to obtain a sales or water service tax refund from the department of revenue rather than receiving the exemption. A water utility that does not accept a valid exemption certificate shall pay a civil penalty to the department of revenue equal to the amount of tax refunded to the person who possessed a valid exemption certificate plus interest. The bill defines “exemption certificate” and “water utility”. The department of revenue is required to adopt rules to administer the bill.

From the explanation printed with the bill as introduced, written by the Legislative Services Agency. Amendments adopted later aren’t reflected. Full bill text

Senate subcommittee

Named February 11, 2025. It hasn’t reported yet.

• Sen. Jason Schultz REmail
• Sen. Dawn Driscoll REmail
• Sen. Thomas Townsend DEmail

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

Iowa Code it changes

Creates§421.72

Read from the bill as introduced. Each links to every bill touching that chapter of the Iowa Code. How the Code works

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.

Earlier and later bills are matched by wording or an identical title; check the text to be sure it’s the same idea.