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Bill

HSB 88

A bill for an act relating to electronic filing of sales and use tax returns, and including effective date provisions.

2025-2026 Regular Session

HF 653 mandates electronic filing for Iowa sales and use tax returns, improving efficiency for taxpayers and the state while ensuring accurate reporting and compliance.

Committee report approving bill, renumbered as HF 653.
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WeVote Research Nonpartisan
Bill Summary · HSB 88

Summary of HSB 88 (Renumbered as HF 653)

Purpose and Intent

HSB 88, now renumbered as HF 653, is a legislative bill aimed at modernizing the process for filing sales and use tax returns in Iowa. The primary intent of the bill is to mandate electronic filing for these tax returns, thereby streamlining the process and improving efficiency for both taxpayers and the state tax department.

Key Provisions

The bill introduces several significant changes to the existing sales and use tax filing requirements:

  1. Mandatory Electronic Filing:

    • All individuals and entities subject to sales and use tax must file their returns electronically by the last day of the month following the close of each calendar month.
    • Returns must include detailed information on sales prices, exemptions, and tax calculations.

  2. Certification Requirement:

    • Returns must be signed by the retailer or an authorized agent and certified as correct according to forms and rules set by the director of the tax department.

  3. Exceptions for Filing:

    • If a person is unable to file electronically, they may request permission from the director to file using an alternative method.

  4. Invalid Returns:

    • Returns filed in a non-electronic format will be deemed invalid unless an exception is granted by the department.

  5. Rule Adoption:

    • The tax department is authorized to adopt rules to administer the electronic filing requirements effectively.

Affected Parties

The bill primarily affects:
- Retailers and businesses required to file sales and use tax returns in Iowa.
- The Iowa Department of Revenue, which will oversee the implementation and administration of the new electronic filing system.

Procedural Aspects and Timeline

  • Introduced: January 28, 2025
  • Committee Actions:
    • The bill was reported approvingly by the committee on February 25, 2025, with a vote of 23 in favor, 1 against, and 1 excused.
    • A subcommittee recommended passage on February 18, 2025.
  • Current Status: As of February 28, 2025, the bill has been renumbered as HF 653 and is awaiting further legislative action.

Conclusion

HSB 88 (HF 653) represents a significant shift towards digitalization in tax filing processes in Iowa. By requiring electronic submissions, the bill aims to enhance efficiency, reduce errors, and streamline tax administration for both taxpayers and the state.

Compiled from official sources — confirm details with the bill’s official record.

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