ISSLA-Sponsored Bill Sails Through Both Houses of State Legislature
A bill sponsored by the Iowa Self-Service Laundry Association to repeal the existing sales tax on coin-operated laundry recently passed unanimously in the Iowa Senate and is now on its way to Gov. Terry Branstad’s desk for his signature.
Iowa laundry owners have been paying nearly 9 percent of their gross sales each year to satisfy this tax. And this victory marks one of the largest legislative wins for the self-service laundry industry in years.
“We made some history in the process it seems,” said Daryl Johnson, president of the Iowa Self-Service Laundry Association. “I was told that there has not been a tax bill passed in the Iowa Senate 50-0 in at least three decades or more, and we also won the vote in the House with a 76-14 margin. Those are just about unprecedented wins. We also got the bill done in one legislative session after hiring a lobbyist – that never happens!
“This whole process was a bit of a blur, and it took a ton of work from many more than just me,” he added. “We had some amazing owners spending a ton of time at the Capitol and digging deep to fund the fight.”
“I couldn’t be happier – or prouder – of our members in Iowa who have had the incredible will and tenacity to see this through,” said Coin Laundry Association President and CEO Brian Wallace. “It’s amazing what a group of like-minded business owners can accomplish. It’s just a monumental legislative victory.”
The ISSLA spent about $35,000 during its five-year battle to repeal the tax. And, of course, similar battles to keep self-service laundries exempt from sales tax are occurring more frequently each year. Essentially, due to the nature of the coin laundry business, these taxes become a direct income tax on laundry owners’ gross sales.
How would a tax of 8 percent or more impact your bottom line? For more information on how you can make a difference in this fight, visit: http://www.coinlaundry.org/advocacy/stop-laundry-tax.
“We still have some financial needs to replenish our coffers, but all in all we are very excited and exhausted,” Johnson said. “I expect the governor to sign the bill before the end of June, so the effective date will be July 1.”
