Iowa 2023-2024 Regular Session

Iowa House Bill HF2096

Introduced
1/22/24  
Introduced
1/22/24  

Caption

A bill for an act providing a sales tax exemption for the furnishing of parking facilities services.

Impact

The exemption would impact Iowa's existing tax code specifically within Section 423.2, thereby altering the financial obligations of businesses providing parking services. Supporters of the bill believe that this tax change will encourage the development and maintenance of parking infrastructure, as reduced costs might incentivize more investment in parking solutions. This could be particularly beneficial in urban areas, where adequate parking facilities are often crucial to the success of local commerce and tourism.

Summary

House File 2096 proposes a significant change to the sales tax policy in Iowa by providing an exemption for the sales price of services related to parking facilities. This legislative initiative aims to make it more economically feasible for consumers and businesses by reducing the overall costs associated with using parking services. By eliminating the sales tax requirement on these services, proponents argue that it will stimulate local economies and potentially lead to increased patronage of urban areas where parking is a concern.

Contention

Despite the potential benefits, there may be points of contention regarding the financial implications of HF2096. Critics may raise concerns about the fiscal impact of removing sales tax revenue from the state budget, as these funds contribute to essential services and programs. Additionally, there could be debates around fairness, as some may argue that exempting sales tax for a specific service creates an uneven playing field among various types of businesses and services, potentially leading to calls for broader tax reforms to evenly distribute tax responsibilities.

Notable points

As HF2096 moves through the legislative process, it will likely undergo scrutiny regarding its economic implications and the extent to which it addresses the needs of Iowa residents. Discussion may also revolve around ensuring that such exemptions do not inadvertently lead to revenue shortfalls, which could impact local government operations. Lawmakers will need to balance the desire for economic stimulation with the need for sustainable fiscal policy.

Companion Bills

No companion bills found.

Previously Filed As

IA HSB239

A bill for an act providing a sales tax exemption for the furnishing of parking facilities services.(See HF 996.)

IA HF996

A bill for an act providing a sales tax exemption for the furnishing of parking facilities services.(Formerly HSB 239.)

IA HF678

A bill for an act providing a sales and use tax exemption for the furnishing of certain parking facilities services.(Formerly HSB 231.)

IA HSB231

A bill for an act providing a sales and use tax exemption for the furnishing of certain parking facilities services.(See HF 678.)

IA HF2635

A bill for an act relating to the sales tax exemption for the purchase of central office equipment or transmission equipment used by certain entities primarily in the furnishing of telecommunications services on a commercial basis.(Formerly HSB 681.)

IA HSB681

A bill for an act relating to the sales tax exemption for the purchase of central office equipment or transmission equipment used by certain entities primarily in the furnishing of telecommunications services on a commercial basis.(See HF 2635.)

IA HSB126

A bill for an act relating to the sales tax exemption for the purchase of central office equipment or transmission equipment used by certain entities primarily in the furnishing of telecommunications services on a commercial basis.

IA HSB72

A bill for an act exempting the storage of household goods and mini-storage from the sales tax on services.

IA HF960

A bill for an act relating to the sales tax exemption for the purchase of central office equipment or transmission equipment used by certain entities primarily in the furnishing of telecommunications services on a commercial basis.(Formerly HSB 235.)

IA SF636

A bill for an act relating to the sales tax exemption for the purchase of central office equipment or transmission equipment used by certain entities primarily in the furnishing of telecommunications services on a commercial basis.(Formerly SSB 1209.)

Similar Bills

No similar bills found.