House Study Bill 230 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON KAUFMANN) A BILL FOR An Act exempting the services furnished by private employment 1 agencies from the state sales and use tax. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1196YC (2) 91 jm/jh

H.F. _____ Section 1. Section 423.2, subsection 6, paragraph aq, Code 1 2025, is amended by striking the paragraph. 2 EXPLANATION 3 The inclusion of this explanation does not constitute agreement with 4 the explanation’s substance by the members of the general assembly. 5 This bill exempts the services furnished by a private 6 employment agency from the state sales and use tax. 7 By operation of Code section 423.6, an item exempt from the 8 imposition of the sales tax is also exempt from the use tax 9 imposed in Code section 423.5. 10 -1- LSB 1196YC (2) 91 jm/jh 1/ 1