A bill for an act exempting from the sales and use tax the sales price of tangible personal property or specified digital products sold and services furnished to a county or district fair, and making a county or district fair a designated exempt entity. (Formerly HSB 225.) Effective date: 07/01/2024.
Impact
The passage of HF681 represents a significant change in how sales tax is applied to certain local events, specifically fairs. This exemption could reduce costs for vendors and service providers involved with county and district fairs, allowing them to allocate resources elsewhere, possibly improving the quality and appeal of these events. As fairs often serve as crucial community gatherings, this bill is expected to positively influence local economies and encourage participation from residents and visitors alike.
Summary
House File 681 aims to exempt sales and use tax for specified tangible personal property or digital products sold, and services provided, to county or district fairs in Iowa. By designating county and district fairs as exempt entities, the bill seeks to promote and support these local events, which are vital for community engagement and local economic stimulation. The measure is set to take effect on July 1, 2024, reinforcing the state's commitment to aiding local fairs financially through tax exemption.
Sentiment
Overall, sentiment surrounding HF681 has been positive, with support coming primarily from community leaders and local officials who recognize the importance of fairs in enhancing community spirit and local culture. The unanimous voting outcome, with 92 yeas and 0 nays, indicates strong bipartisan support for the legislation. Communities see the bill as a way to strengthen local traditions while also addressing the economic challenges faced by event organizers.
Contention
While the bill's intent is well-received, there are subtle concerns regarding how the tax exemption may affect state revenue in the long term. Critics may argue that significant revenue losses from sales tax could lead to budget constraints for local services or state-funded programs. Nonetheless, supporters maintain that the economic benefits generated by more vibrant and financially supported fairs will outweigh these potential drawbacks, fostering a more engaged and economically viable local environment.
Similar To
A bill for an act establishing a fair as a designated exempt entity and allowing for refunds of state sales tax in the performance of certain written contracts and including effective date and retroactive applicability provisions.
Related
A bill for an act establishing a fair as a designated exempt entity and allowing for refunds of state sales tax in the performance of certain written contracts and including effective date and retroactive applicability provisions.(See HF 681.)
A bill for an act exempting from the sales tax and the use tax certain building materials, supplies, goods, wares, merchandise, or specified digital products sold, or services furnished, to a nonprofit whose primary activity is the construction of low-cost homes by incarcerated individuals, and providing for an effective date.
A bill for an act relating to the state sales and use tax by expanding nonprofit exemptions on the state sales and use tax to include all nonprofit entities exempt from federal taxation.
A bill for an act exempting from the state sales and use tax the sales price of adaptive driving equipment sold or adaptive driving equipment services furnished for installation in a motor vehicle.
A bill for an act exempting from the state sales and use tax the sales price of adaptive driving equipment sold or adaptive driving equipment services furnished for installation in a motor vehicle primarily used by a veteran.
A bill for an act relating to the administration of the tax by the department of revenue by modifying provisions related to personal income, property, sales and use, motor fuel, and inheritance taxes, changing tax expenditure reviews, and including effective date and retroactive applicability provisions. (Formerly HSB 89.) Effective date: 06/06/2025, 07/01/2025, 01/01/2026. Applicability date: 01/01/2024, 01/01/2025, 01/01/2026.