Iowa Sales, Services, and Use Tax Study Committee

Thank you for your interest in the Sales, Services, and Use Tax Study Committee. After discussions with Legislative Leadership and the Governor’s office, it has been determined that the initial purpose and goals for formulating this committee cannot be fully accomplished in the short time that was allocated. With that said, the Streamlined Sales Tax Advisory Council and the Industrial Processing Exemption Committee that are in place will be able to address some of the goals that this committee was to address.

Therefore, this committee will not be formed. Thanks again for your interest and if there are sales/use tax issues that concern you, please feel free to forward them to the department. You may use the e-mail link in the directory at the left.

Committee's Intended Purpose

The committee shall study the current sales, services, and use tax law. Programs funded through special features of the tax code often escape regular review. It is intended that the study committee shall review the current sales, services, and use tax exemptions to improve government accountability. The committee shall study and make recommendations regarding all of the following:

  1. Retaining or eliminating current sales, services, and use tax exemptions or providing new exemptions. Such decisions shall be based at least partially on the issues of effectiveness and competitiveness and their impact on economic behavior.
  2. Tax simplification and consistency issues in applying the tax, including record keeping burdens on retailers and application by the department of revenue.
  3. Streamlining sales tax implementation in Iowa.
  4. The tax rate.
  5. Comparison of Iowa sales, services, and use tax structure with other states.

The committee shall report to the general assembly by January 1, 2004. The report shall provide rationale for each decision made by the study committee.