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HF 996 – Parking Facilities Services, Sales Tax Exemption (LSB1900HV)
Staff Contact: Evan Johnson (515.281.6301) evan.johnson@legis.iowa.gov
Fiscal Note Version – New
Description
House File 996 exempts the sales price of parking facility services from the sales and use tax.
Background
Under current law, the sales price of parking facility services provided by cities or counties is
exempt from the sales and use tax. Parking services provided by private entities are taxable.
A parking facility is defined in 701 IAC 211.12 as any place that is used for parking a vehicle for
consideration.
Assumptions
• The Bill takes effect July 1, 2025 (FY 2026).
• According to U.S. Census Bureau data, total sales of parking lot and garage services in
Iowa subject to federal income tax equaled $13.9 million in calendar year (CY) 2022.
• Taxable sales of parking facility services are assumed to increase by 2.0% annually.
• Secure an Advanced Vision for Education (SAVE) refunds are 1.0% of taxable expenditures.
Local Option Sales Tax (LOST) distributions are estimated to be 0.97% of taxable
expenditures.
Fiscal Impact
House File 996 is estimated to reduce annual revenues to the General Fund, the SAVE Fund,
and the LOST by the amounts in Figure 1.
Figure 1 — Fiscal Impact of HF 996
General Fund SAVE LOST
FY 2026 -755,000$ -151,000$ -146,000$
FY 2027 -770,000 -154,000 -149,000
FY 2028 -785,000 -157,000 -152,000
FY 2029 -801,000 -160,000 -155,000
FY 2030 -817,000 -163,000 -158,000
Fiscal Note
Fiscal Services Division 2
Sources
Iowa Department of Revenue
U.S. Census Bureau
LSA calculations
/s/ Jennifer Acton
April 8, 2025
Doc ID 1525853
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