Bill > HF966

This bill proposes to modify the existing sales tax law in Iowa by explicitly including dietary supplements within the category of food and food ingredients that are exempt from sales tax. Currently, the law exempts food and food ingredients from sales tax, but specifically excludes items like alcoholic beverages, candy, and previously, dietary supplements. By removing the explicit exclusion of dietary supplements from this exemption and instead adding them to the list of tax-exempt items, the bill will effectively eliminate sales tax on dietary supplements such as vitamins and minerals. This change means that consumers purchasing dietary supplements in Iowa will no longer have to pay sales tax on these products, potentially making them more affordable. The bill achieves this by amending Section 423.3, subsection 57 of the Iowa Code, and as noted in the government summary, this exemption will also apply to use tax due to existing provisions in Code section 423.6.

Budget and Finance

https://www.legis.iowa.gov/legislation/BillBook?ga=91&ba=HF966