Iowa House lawmakers pass proposals making some household items tax-free

written by TheFeedWired

A few everyday household items would be tax-free under new proposals moving forward through the legislature. Under three separate proposals, Iowans would not have to pay sales tax on toilet paper, laundry detergent, or dietary supplements. The nonpartisan Legislative Services Agency estimates it'll save taxpayers roughly $31 million in the first year alone.

"I will rinse, cycle, and repeat my comments from the toilet paper and vitamin supplements bill," State Rep. Aime Wichtendahl (D- Hiawatha) said. "Anytime that we can put more money in to the pockets of Iowans for everyday items is always a good thing." While Iowans would spend a little less money on those products, that means state funding would decrease.

In the upcoming fiscal year, the general fund would see $22.4 million less. Iowa's SAVE fund, which goes to schools to help pay for things like infrastructure, would see revenue decrease by $4.4 million, along with a $4.4 million decrease for Iowa's local option sales tax. "This bill is about doing the right thing, cutting taxes on everyday essentials and helping Iowans keep a little more of their hard earned money," State Rep. Christian Hermanson (R- Mason City) said.

If signed by the governor, all three bills would go into effect July 1. The proposals did advance with bipartisan support in the House and now head to the Senate.

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