This bill amends Iowa's sales tax law to exempt the sale of dietary supplements from sales tax. Specifically, it modifies Section 423.3, subsection 57, to include dietary supplements in the definition of food and food ingredients that are exempt from sales tax. The language now states that the sales price from all sales of food and food ingredients includes dietary supplements, while explicitly excluding alcoholic beverages, candy, food sold through vending machines, prepared food, soft drinks, and tobacco.

Additionally, the bill clarifies that dietary supplements, which are defined in Code section 423.3(57)(c) to include vitamins and minerals, will not be subject to sales tax. This exemption also extends to the use tax imposed under Code section 423.5, meaning that items exempt from sales tax are also exempt from use tax. Overall, the bill aims to reduce the financial burden on consumers purchasing dietary supplements in Iowa.

Statutes affected:
Introduced: 423.3