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HF 1022 – Sales Tax Exemption for Soap and Detergents (LSB1910HV)
Staff Contact: Evan Johnson (515.281.6301) evan.johnson@legis.iowa.gov
Fiscal Note Version – New
Description
House File 1022 exempts the sale of laundry soap and laundry detergent from the sales and
use tax.
Assumptions
• The Bill is effective July 1, 2025 (FY 2026).
• Iowa’s population is 0.96% of the U.S. population.
• The quantity of soaps and detergents purchased by each household is the same.
• The average number of people in each Iowa household is the same as the average number
of people in each national household.
• Business expenditures on laundry soap and laundry detergent are assumed to be 10.0% of
household expenditures on laundry soap and laundry detergent.
• Expenditures on laundry soap and laundry detergent are assumed to represent 75.0% of
expenditures on laundry and cleaning products.
• The cost of laundry soap and laundry detergent in Iowa is assumed to be 88.8% of the
national average.
• The value of purchases of laundry soap and laundry detergent is assumed to increase by
2.0% annually.
• Secure an Advanced Vision for Education (SAVE) refunds are 1.0% of taxable expenditures.
Local Option Sales Tax (LOST) distributions are estimated to be 0.97% of taxable
expenditures.
Fiscal Impact
House File 1022 is estimated to decrease annual revenues to the General Fund, the SAVE
Fund, and the LOST by the amounts in Figure 1.
Figure 1 — Fiscal Impact of HF 1022
(in Millions)
Sources
Iowa Department of Revenue
Bureau of Economic Analysis
Bureau of Labor Statistics
United States Census Bureau
General Fund SAVE LOST
FY 2026 -9.7$ -1.9$ -1.9$
FY 2027 -9.8 -2.0 -1.9
FY 2028 -10.0 -2.0 -1.9
FY 2029 -10.2 -2.0 -2.0
FY 2030 -10.5 -2.1 -2.0
Fiscal Note
Fiscal Services Division 2
/s/ Jennifer Acton
April 23, 2025
Doc ID 1526423
The fiscal note for this Bill was prepared pursuant to Joint Rule 17 and the Iowa Code. Data used in developing this
fiscal note is available from the Fiscal Services Division of the Legislative Services Agency upon request.
www.legis.iowa.gov 1
HF 1022 – Sales Tax Exemption for Soap and Detergents (LSB1910HV )
Staff Contact: Evan Johnson ( 515.281.6301) evan.johnson@legis.iowa.gov
Fiscal Note Version – New
Description
House File 1022 exempts the sale of laundry soap and laundry detergent from the sales and
use tax.
Assumptions
•The Bill is effective July 1, 2025 (FY 2026).
•Iowa’s population is 0.96% of the U.S. population.
•The quantity of soaps and detergents purchased by each household is the same.
•The average number of people in each Iowa household is the same as the average number
of people in each national household.
•Business expenditures on laundry soap and laundry detergent are assumed to be 10 .0% of
household expenditures on laundry soap and laundry detergent.
•Expenditures on laundry soap and laundry detergent are assumed to represent 75.0% of
expenditures on laundry and cleaning products.
•The cost of laundry soap and laundry detergent in Iowa is assumed to be 88.8% of the
national average.
•The value of purchases of laundry soap and laundry detergent is assumed to increase by
2.0% annually.
•Secure an Advanced Vision for Education (SAVE) refunds are 1.0% of taxable expenditures.
Local Option Sales Tax (LOST) distributions are estimated to be 0.97% of taxable
expenditures.
Fiscal Impact
House File 1022 is estimated to decrease annual revenues to the General Fund, the SAVE
Fund, and the LOST by the amounts in Figure 1 .
Figure 1 — Fiscal Impact of HF 1022
(in Millions)
Sources
Iowa Department of Revenue
Bureau of Economic Analysis
Bureau of Labor Statistics
United States Census Bureau
General Fund SAVE LOST
FY 2026 -9.7$ -1.9$ -1.9$
FY 2027 -9.8 -2.0 -1.9
FY 2028 -10.0 -2.0 -1.9
FY 2029 -10.2 -2.0 -2.0
FY 2030 -10.5 -2.1 -2.0
Fiscal Note
Fiscal Services Division
JO 4/23/25
CJU - no additional edits
Accept all edits 2
April 21, 2025
Doc ID 1526423
The fiscal note for this B ill was prepared pursuant to Joint Rule 17 and the Iowa Code. Data used in
developing this fiscal note is available from the Fiscal Services Division of the Legislative Services
Agency upon request.
www.legis.iowa.gov
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