HF1033 • 2026

A bill for an act making a rural water district a designated exempt entity for purposes of the sales and use tax.(Formerly HSB 226 .)

Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: COMMITTEE ON WAYS AND MEANS
Last action: 2025-05-14
Official status: Subcommittee: Dawson, Bisignano, and Rowley. S.J. 1042 .
Effective date: Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

A bill for an act making a rural water district a designated exempt entity for purposes of the sales and use tax.(Formerly HSB 226 .)

What This Bill Does

A bill for an act making a rural water district a designated exempt entity for purposes of the sales and use tax.(Formerly HSB 226 .)

Limits and Unknowns

This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

2025-05-20 Iowa Legislature
Explanation of vote. H.J. 1223 .
2025-05-14 Iowa Legislature
Subcommittee: Dawson, Bisignano, and Rowley. S.J. 1042 .
2025-05-12 Iowa Legislature
Read first time, referred to Ways and Means. S.J. 968 .
2025-05-12 Iowa Legislature
Message from House. S.J. 968 .
2025-05-12 Iowa Legislature
Immediate message. H.J. 1140 .
2025-05-12 Iowa Legislature
Passed House , yeas 86, nays 4. H.J. 1134 .
2025-05-05 Iowa Legislature
Fiscal note .
2025-04-24 Iowa Legislature
Introduced, placed on Ways and Means calendar. H.J. 1054 .

Official Summary Text

A bill for an act making a rural water district a designated exempt entity for purposes of the sales and use tax.(Formerly HSB 226 .)

Current Bill Text

Read the full stored bill text

House

File

1033

-

Introduced

HOUSE

FILE

1033

BY

COMMITTEE

ON

WAYS

AND

MEANS

(SUCCESSOR

TO

HSB

226)

A

BILL

FOR

An

Act

making

a

rural

water

district

a

designated

exempt

entity

1

for

purposes

of

the

sales

and

use

tax.

2

BE

IT

ENACTED

BY

THE

GENERAL

ASSEMBLY

OF

THE

STATE

OF

IOWA:

3

TLSB

1258HV

(1)

91

jm/jh

H.F.

1033

Section

1.

Section

423.4,

subsection

1,

paragraph

a,

Code

1

2025,

is

amended

by

adding

the

following

new

subparagraph:

2

NEW

SUBPARAGRAPH

.

(11)

A

rural

water

district

organized

3

under

chapter

504

as

provided

in

chapter

357A.

4

Sec.

2.

Section

423.3,

subsection

38,

Code

2025,

is

amended

5

by

striking

the

subsection.

6

EXPLANATION

7

The

inclusion

of

this

explanation

does

not

constitute

agreement

with

8

the

explanation’s

substance

by

the

members

of

the

general

assembly.

9

This

bill

makes

a

nonprofit

rural

water

district

organized

10

under

Code

chapter

504

as

provided

in

Code

chapter

357A

a

11

designated

exempt

entity,

which

allows

the

nonprofit

rural

12

water

district

to

apply

to

the

department

of

revenue

for

13

the

refund

of

the

sales

and

use

tax

upon

sales

of

building

14

materials,

supplies,

and

equipment,

or

from

services

furnished

15

by

a

contractor

in

the

performance

of

a

written

contract

with

16

the

rural

water

district,

if

certain

circumstances

relating

to

17

the

contract

are

met.

By

designating

a

rural

water

district

a

18

designated

exempt

entity

under

the

bill,

construction

services

19

provided

to

the

water

district

also

become

exempt

from

the

20

sales

tax

which

is

different

than

the

sales

tax

exemption

under

21

current

law.

22

Under

current

law,

the

building

materials,

supplies,

or

23

equipment

sold

to

a

rural

water

district

for

the

construction

24

of

facilities

are

exempt

from

the

sales

tax

in

Code

section

25

423.3(38).

The

bill

strikes

the

current

rural

water

sales

26

tax

exemption

in

Code

section

423.3(38)

so

two

separate

and

27

distinct

sales

tax

exemptions

do

not

exist

at

the

same

time

28

relating

to

building

materials,

supplies,

or

equipment

sold

to

29

a

rural

water

district.

30

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