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Tax on tobacco products like glassware passes Iowa Senate, but could be lowered in House version Senate File 363 approved taxing glass pipes at 40% in February. However, House members have proposed lowering the tax to 20%. Author: Lakyn McGee Updated: 7:03 PM CDT April 22, 2021 DES MOINES, Iowa A bill in the Iowa House that could increase sales tax on glass pipes used to smoke combustion tobacco and hemp is being reevaluated. Senate File 363 approved taxing glass pipes at 40% in February. However, House, members have proposed lowering the tax to 20%. We’re obviously not going to be able to eat the full tax on the backside, explained Zerron Horton, the owner of Unkl Ruckus s Smoke Emporium and Skate Shop. So we’re going to have to pass at least a portion of that, if not all of it, on to the consumer. ....
Iowa would levy a new tax of at least 20% on the sale of glass and metal pipes designed for smoking tobacco and other substances, and require the retailers who sell the pipes to obtain a separate permit, under a bill the Legislature is advancing this session. The revenue from the tax and permit fees would support specialty courts that address substance use disorder and mental health issues, according to Senate File 363. It unanimously passed the Senate and is moving through committees in the House. Lawmakers are still determining the amount of the tax. The Senate approved taxing the popes at 40% in February but House lawmakers are now proposing to lower the tax to 20%. ....