Bills › 91st General Assembly
Eliminating the state sales and use taxes and including effective date provisions
Sponsored by Rep. David Jacoby (D)
Topics:Taxes
Where it is now
- Done: IntroducedFebruary 20, 2025
- Stopped: SubcommitteeDied when the General Assembly ended
- Next: House committeeFunnel: by February 20, 2026
- Next: Passes the House
- 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 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 Starting in 2026, this law would remove the 6 percent statewide sales tax for people buying things in Iowa. It also gets rid of the 1 percent tax used to fund education. Local taxes that cities or counties choose to keep would not change.1
Read the official explanation
Beginning on after January 1, 2026, this bill reduces the statewide sales and use tax from 6 percent to 0. By reducing the statewide sales tax to zero, the bill also eliminates the 1 percent sales tax dedicated to the secure an advanced vision for education fund (SAVE). A local option tax adopted pursuant to Code chapter 423B is not reduced by the bill.