Tell Iowa Legislators to Repeal the Rural Energy Tax!
In 2018, the Legislature tackled significant tax policy by passing a bill that included a new sales and use tax rate of 6% on digital products and software. Recognizing that this tax would balloon revenue from business and industry, the bill included an exemption covering for-profit companies and some non-profits. Unfortunately, rural electric cooperatives, which are non-profit and owned by those they serve, were unintentionally left out of this exemption.
As a result, for the last 3 years, rural Iowans have been paying higher taxes through their energy bills than urban and suburban residents. The Iowa Association of Electric Cooperatives estimates that the total increase is approaching $1 million in additional taxes on rural Iowans… based on an unintended consequence of the 2018 law.
Iowa’s electric cooperatives are asking the Iowa Legislature to solve this rural-urban tax inequality by putting rural member-consumers in the same sales tax status as their urban/suburban counterparts. Simply because a person lives in rural Iowa should not mean that taxes on their utilities be higher than those who live in population-rich areas!
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