Exempts services provided by private employment agencies from the state sales and use tax.

This bill amends the Iowa Code to exempt the services provided by private employment agencies from the state sales and use tax. By striking the relevant paragraph in Section 423.2, subsection 6, paragraph aq, Code 2025, the bill ensures that these services are no longer subject to the sales tax. Additionally, by operation of Code section 423.6, the exemption from sales tax also applies to the use tax imposed in Code section 423.5.

Exempts services provided by private employment agencies from the state sales and use tax.

This bill amends the Iowa Code to exempt the services provided by private employment agencies from the state sales and use tax. By striking the relevant paragraph in Section 423.2, subsection 6, paragraph aq, Code 2025, the bill ensures that these services are no longer subject to the sales tax. Additionally, by operation of Code section 423.6, the exemption from sales tax also applies to the use tax imposed in Code section 423.5.