This bill amends Section 423.3 of the Iowa Code to exempt the sales price of lodging supplies sold to lodging providers from state sales and use tax. The exemption applies specifically when these supplies are consumed or used by the customers of the lodging providers. The bill provides definitions for key terms, including "customer," "lodging provider," and "lodging supplies," which encompass items such as toiletries, towels, and other amenities typically provided in guest accommodations.

By establishing this exemption, the bill aims to reduce the tax burden on lodging providers, potentially lowering costs for consumers. Additionally, it clarifies that items exempt from sales tax are also exempt from use tax, as per Code section 423.6. This legislative change is intended to support the hospitality industry in Iowa by making it more financially feasible for lodging providers to offer essential supplies to their guests.

Statutes affected:
Introduced: 423.3