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HSB 96

A bill for an act relating to permissible local sales and services tax expenditures.

2025-2026 Regular Session

HSB 96 allows cities and counties to use local sales tax revenues for emergency medical services and nonprofit support, enhancing public service availability and quality.

Subcommittee recommends passage.
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WeVote Research Nonpartisan
Bill Summary · HSB 96

Summary of HSB 96: Local Sales and Services Tax Expenditures

Bill Overview

  • Bill Number: HSB 96
  • Title: A bill for an act relating to permissible local sales and services tax expenditures.
  • Status: Subcommittee recommends passage.
  • Introduced: January 28, 2025
  • Classification: Proposed bill
  • Subject: Sales taxes, services taxes

Purpose and Intent

HSB 96 aims to clarify and expand the permissible uses of local sales and services tax revenues collected by cities and counties. The bill specifically allows these funds to be used for a broader range of purposes, particularly emphasizing support for emergency medical services and nonprofit organizations that provide public services.

Key Provisions

  • Amendment to Section 423B.7:
    • The bill amends subsection 7, paragraph a of the Code 2025.
    • It states that local sales and services tax revenues may be used for any lawful purpose of the city or county.
    • Notably, it includes provisions for:
    • Emergency Medical Services: Funds can be allocated for expenses related to providing emergency medical services within the city or county.
    • Nonprofit Payments: Local governments may make payments to nonprofit entities that are exempt from federal income tax under section 501(c)(3) of the Internal Revenue Code, provided these entities offer public services in the area.

Impact

  • Affected Entities:

    • Cities and counties will have increased flexibility in how they utilize local sales and services tax revenues.
    • Nonprofit organizations providing public services will potentially receive funding from local governments, enhancing their capacity to serve the community.

  • Public Services Enhancement: The bill aims to improve the availability and quality of public services, particularly in emergency medical response and community support through nonprofit organizations.

Legislative Timeline

  • January 28, 2025:

    • Bill introduced and referred to the Local Government committee.
    • Subcommittee formed, consisting of members Wengryn, Determann, and Gosa.

  • January 29, 2025:

    • Subcommittee recommends passage of the bill.

Conclusion

HSB 96 represents a significant step towards empowering local governments to better allocate sales and services tax revenues for essential public services. By allowing funds to support both emergency medical services and nonprofit organizations, the bill seeks to enhance community welfare and responsiveness to public needs.

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

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