A bill for an act exempting the sales price of honeybees from the state sales and use tax.(See HF 1004.)
Summary
HF 247 would exempt the sales price of honeybees from Iowa’s state sales tax. Because Iowa law generally ties sales-tax exemptions to use-tax exemptions, the bill would also make honeybees exempt from the state use tax. The bill amends Iowa Code section 423.3 by adding honeybees to the list of specifically exempted items.
In practical terms, the measure would reduce the tax burden on purchases of honeybees by beekeepers, farmers, and others who buy bees for agricultural or apicultural purposes. The bill is narrow in scope and does not change broader tax rates or the structure of the sales and use tax system; it simply creates a targeted exemption for one type of livestock/insect purchase.
Impact
The bill would amend Iowa’s sales tax exemption statute to add honeybees as a tax-exempt item, and by operation of existing law, the exemption would extend to the use tax as well. This would affect purchasers and sellers of honeybees by removing state sales and use tax from those transactions, while leaving local tax treatment and other tax provisions unchanged unless separately addressed. The bill was later renumbered as HF 1004 after committee action.
Sentiment
The available voting history suggests the bill was received favorably, at least in committee. The House Committee on Appropriations reported the bill unanimously, with 24 yeas and 0 nays, indicating broad support and little visible opposition in the recorded action. No committee transcript was provided, so there is no additional recorded debate to indicate divided views.
Contention
There is little evidence of controversy in the available record. The main policy question is whether honeybees should receive a targeted tax exemption, which would benefit beekeepers and related agricultural interests by lowering acquisition costs. Any potential concern would likely center on the creation of another narrow sales-tax carveout and the resulting reduction in state tax revenue, but no specific opposition or competing arguments are reflected in the provided materials.