Marketable Foods for Human Consumption - The Saga Continues

July 16, 2021

On Tuesday, ABI public policy staff testified before the Administrative Rules Review Committee (ARRC) and objected to ARC 5720C, which is related to a marketable foods for human consumption sales tax exemption that was promulgated by the Iowa Department of Revenue (IDR). This is the second hearing in front of that body following two hearings before the department itself. The second round of hearings was conducted upon the request of the Governor’s office.

Taxpayers and revenue collectors are at odds over the way the IDR has crafted the definition of this term. Taxpayers maintain the new rule will limit the exemption and raise taxes beyond the statutory authority of the IDR. The IDR maintains it has only stated the manner in which they have been interpreting the exemption historically. The purpose of ABI’s appearance before the AARC was to inform the legislative members that while IDR and affected ABI members could not agree on the revenue impact of their new rule, work was underway between the parties to develop language for legislative adoption that would supercede the IDR’s interpretation and define terms in the Iowa Code that comports with the common understanding of the law by Iowa’s food processors. For more information please contact JD Davis at