House and Senate Reach Agreement on Key Issues

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(DES MOINES) — Today, House Republicans announced agreements on key issues before the Legislature.

“This agreement provides certainty to thousands of Iowa taxpayers and ensures that Iowans are not faced with an unexpected tax increase,” said House Speaker Linda Upmeyer (R-Clear Lake).  “At the end the day, the taxpayers are the real winners with this agreement.”

The agreement has led to the creation of House Study Bill 642, which includes provisions related to coupling as well as consumables.

House Study Bill 642 includes House File 2092, the tax coupling bill, which prevents a $95 million tax increase on Iowans.  Coupling with the federal tax code benefitted more than 177,000 taxpayers in 2014 including small businesses, farmers, teachers, homeowners, and college students.

House Study Bill 642 also includes provisions to codify the sales tax exemption for supplies used in manufacturing, which passed the House in 2014.  For too long, ambiguity in the code led to inconsistent interpretations by the Department of Revenue based on the state’s revenue needs.  By codifying this exemption, manufacturers are given a clear and consistent definition of what is subject to sales tax.

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