Bills › 91st General Assembly
Where it is now
- Done: IntroducedFebruary 20, 2025
- Done: SubcommitteeFebruary 20, 2025
- Done: House committeeApril 2, 2025
- Skipped: Passes the HouseContinued as HF 996
- Next: Senate committee
- Next: Passes the Senate
- Next: To the Governor
- Next: Signed into law
Became HF 996 → Its progress continues under the new number. Go to HF 996 What’s a funnel?
What’s in it
AI summary People who pay for parking services would no longer have to pay sales tax on that cost. This change removes the tax from the price of using parking facilities.1
Read the official explanation
This bill exempts the sales price of parking facility services from the sales tax.
House subcommittee
Named February 20, 2025. On March 12, 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
1 written public comment to its subcommittee: March 12, 2025 (1) · on the Legislature’s site
Fiscal note
AI summary This bill makes the sale of parking facility services exempt from the sales and use tax. It is estimated to reduce annual revenues to the state's General Fund, the SAVE Fund, and the LOST by $755,000, $151,000, and $146,000 respectively in fiscal year 2026. These reductions are projected to increase each year through fiscal year 2030.3
Read the fiscal note
Description
House File 996 exempts the sales price of parking facility services from the sales and use tax.
Background
Under current law, the sales price of parking facility services provided by cities or counties is exempt from the sales and use tax. Parking services provided by private entities are taxable. A parking facility is defined in 701 IAC 211.12 as any place that is used for parking a vehicle for consideration.
Assumptions
- The Bill takes effect July 1, 2025 (FY 2026).
- According to U.S. Census Bureau data, total sales of parking lot and garage services in Iowa subject to federal income tax equaled $13.9 million in calendar year (CY) 2022.
- Taxable sales of parking facility services are assumed to increase by 2.0% annually.
- Secure an Advanced Vision for Education (SAVE) refunds are 1.0% of taxable expenditures. Local Option Sales Tax (LOST) distributions are estimated to be 0.97% of taxable expenditures.
Fiscal Impact
House File 996 is estimated to reduce annual revenues to the General Fund, the SAVE Fund, and the LOST by the amounts in Figure 1.
Figure 1 — Fiscal Impact of HF 996General Fund SAVE LOST FY 2026 -755,000$ -151,000$ -146,000$ FY 2027 -770,000 -154,000 -149,000 FY 2028 -785,000 -157,000 -152,000 FY 2029 -801,000 -160,000 -155,000 FY 2030 -817,000 -163,000 -158,000
Sources
- Iowa Department of Revenue
- U.S. Census Bureau
- LSA calculations
- Parking Facilities Services, Sales Tax Exemption · April 8, 2025
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Tried before
Study bill
91st General Assembly
Earlier and later bills are matched by wording or an identical title.
Tried before
This idea has been filed in an earlier General Assembly. None got through a chamber.
- HF 2096 Providing a sales tax exemption for the furnishing of parking facilities services90th General Assembly · Subcommittee recommends passage · same titleCleared committee
Matched by wording or an identical title.