Senate File 2026 SENATE FILE BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO SSB 3006) Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to the phaseout of the sales and use taxes on the 2 sale and furnishing of gas, electricity, and fuel to 3 residential customers. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 SF 2026 6 mg/cc/26 PAG LIN 1 1 Section 1. Section 423.3, as enacted by 2003 Iowa Acts, 1 2 First Extraordinary Session, chapter 2, section 96, is amended 1 3 by adding the following new subsection: 1 4 NEW SUBSECTION. 84. a. Subject to paragraph "b", the 1 5 sales price from the sale or furnishing of metered gas, 1 6 electricity, and fuel, including propane and heating oil, to 1 7 residential customers which is used to provide energy for 1 8 residential dwellings and units of apartment and condominium 1 9 complexes used for human occupancy. 1 10 b. The exemption in this subsection shall be phased in by 1 11 means of a reduction in the tax rate as follows: 1 12 (1) If the date of the utility billing or meter reading 1 13 cycle of the residential customer for the sale or furnishing 1 14 of metered gas and electricity is on or after January 1, 2004, 1 15 through December 31, 2004, or if the sale or furnishing of 1 16 fuel for purposes of residential energy and the delivery of 1 17 the fuel occurs on or after January 1, 2004, through December 1 18 31, 2004, the rate of tax is two percent of the sales price. 1 19 (2) If the date of the utility billing or meter reading 1 20 cycle of the residential customer for the sale or furnishing 1 21 of metered gas and electricity is on or after January 1, 2005, 1 22 through December 31, 2005, or if the sale or furnishing of 1 23 fuel for purposes of residential energy and the delivery of 1 24 the fuel occurs on or after January 1, 2005, through December 1 25 31, 2005, the rate of tax is one percent of the sales price. 1 26 (3) If the date of the utility billing or meter reading 1 27 cycle of the residential customer for the sale or furnishing 1 28 of metered gas and electricity is on or after January 1, 2006, 1 29 or if the sale, furnishing, or service of fuel for purposes of 1 30 residential energy and the delivery of the fuel occurs on or 1 31 after January 1, 2006, the rate of tax is zero percent of the 1 32 sales price. 1 33 c. The exemption in this subsection does not apply to 1 34 local option sales and services tax imposed pursuant to 1 35 chapters 423B and 423E. 2 1 SF 2026 2 2 mg/cc/26