Holz Supports Tax Relief for Iowans (DES MOINES) – This morning, Rep. Holz (R-Plymouth) supported House File 2433, a bill that provides direct and immediate tax relief to thousands of Iowans and also provides permanent tax clarity for Iowa businesses. “Iowans know how to invest their own money and don’t need the government telling them how to spend it,” said Rep. NAME. “With more money left in the pockets of Iowans, this is a huge win for taxpayers of Iowa.” House File 2433 prevents a $95 million tax increase on Iowans by coupling with the federal tax code. Coupling benefitted more than 177,000 taxpayers in 2014 including small businesses, farmers, teachers, homeowners, and college students. House File 2433 also includes provisions to codify the sales tax exemption for supplies used in manufacturing. Known as “consumables,” this provision ensures that the state is not unfairly taxing supplies and replacement parts during the manufacturing process. Under the current law, this often amounts to a double taxation on manufacturers. 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. The bill passed the House on a vote of 78-17 with all Republicans supporting the bill.
