A bill for an act exempting the sale of laundry soap or detergent from the sales tax.(Formerly HF 963.)

Iowa House File 1022 (HF 1022) is a legislative proposal that aims to exempt the sale of laundry soap and detergent from the state's sales tax. This means that if the bill becomes law, consumers in Iowa would not have to pay sales tax when purchasing these items. The bill was introduced on April 17, 2025, and passed the House with a vote of 84 in favor and 5 against on April 24, 2025. It was then referred to the Senate Ways and Means Committee on April 28, 2025, where it was assigned to a subcommittee on April 30, 2025. As of that date, the bill was pending further action in the Senate.

Supporters of HF 1022 argue that exempting laundry soap and detergent from sales tax would provide financial relief to Iowa households, particularly benefiting low-income families for whom these essential items constitute a significant portion of their household expenses. Proponents also suggest that this tax exemption could simplify the tax code and reduce administrative burdens for retailers.

Critics of the bill express concerns about the potential loss of state revenue resulting from the tax exemption, which could impact funding for public services. They also argue that selectively exempting certain items from sales tax could lead to a more complex tax system and set a precedent for other products to seek similar exemptions, potentially eroding the tax base over time.