A bill for an act exempting the sale of toilet paper from the sales tax.(See HF 1019.)
Summary
House File 964 would exempt the sale of toilet paper from Iowa’s sales tax. The bill adds toilet paper to the list of items excluded from the sales tax under Iowa Code section 423.3, and because Iowa law ties sales-tax exemptions to use-tax treatment, the exemption would also apply to the use tax under section 423.5. In practical terms, consumers would no longer pay state sales tax on toilet paper purchases, and retailers would stop collecting that tax on the item.
The measure is narrowly focused and does not create a broader tax overhaul; it targets a single household necessity. The bill was introduced in the House, received a favorable 24-0 committee report from the House Ways and Means Committee, and was later withdrawn. The caption notes it was superseded by HF 1019, indicating the policy idea may have been carried forward in another bill.
Impact
If enacted, HF 964 would amend Iowa’s sales tax exemption statute by adding toilet paper to the list of exempt items in Code section 423.3. Under existing cross-reference rules, that exemption would also remove toilet paper from the state use tax base in Code section 423.5. The immediate legal effect would be to reduce the tax burden on toilet paper purchases for consumers and to require sellers to stop charging sales tax on that product.
Sentiment
The available voting history suggests strong support and little to no opposition at the committee stage: the House Ways and Means Committee reported the bill 24-0. No committee transcript is available, but the unanimous vote indicates the proposal was viewed favorably, at least in committee. The later withdrawal of the bill appears procedural rather than reflective of controversy, especially given the note that it was replaced or continued in HF 1019.
Contention
There is no recorded substantive debate in the provided materials, so no clear points of contention are documented. Any potential concerns would likely center on the revenue impact of exempting a commonly purchased consumer good and on whether creating a product-specific tax exemption is an appropriate use of the sales tax code. However, the committee vote and lack of opposing testimony suggest these issues were not strongly contested in the available record.