ABI Testifies Against Department of Revenue “Marketable Food Products” Rule

May 28, 2021

On Tuesday, ABI Vice President of Public Policy JD Davis testified during a public hearing on ARC 5614C, a rule which relates to marketable food products for human consumption. Davis spoke against the proposed rule as it would vastly expand the amount of taxes that the Iowa Department of Revenue (IDR) can collect from the food processing industry. The proposed rule as drafted significantly narrows the sales tax exemption in Iowa Code related to “marketable food products for human consumption.” ABI believes the proper channel for enacting such a change is through the legislative branch via the Legislature, not through rule via the Executive Branch. In addition to oral comments, ABI also submitted formal written comments. We will continue to monitor this issue closely and keep members updated.