Governor Kim Reynolds recently signed a law providing a sales tax exemption for honeybees. Beginning July 1st, the sale of honeybees is exempt from Iowa sales and use tax, making the purchase of bees less expensive for commercial and hobbyist beekeepers alike. Iowa is home to thousands of honeybee colonies that contribute to agricultural productivity through pollination of crops and other plants. 

The exemption was included in Senate File 2465 and is intended to support Iowa's beekeeping industry, which plays an important role in agriculture through pollination services and honey production. Prior to the change, honeybee purchases were subject to the state's sales tax. Under the new law, the sales price of honeybees is now specifically exempt from both sales and use tax. 

However, the exemption applies only to the bees themselves. Honey sold by beekeepers and retailers remains subject to Iowa sales tax under existing law. Likewise, beekeeping supplies and equipment continue to be taxable purchases. This includes:

  • Bee food
  • Bee medications and treatments
  • Hives and hive components
  • Protective clothing and gear
  • Other beekeeping equipment and supplies

These items do not qualify for the new exemption and remain taxable. 

The new exemption is a positive step for Iowa beekeepers, but it does not extend to the many costs associated with honeybee production. Expanding Iowa's agricultural sales tax exemption to include honeybee sales provides additional support to an industry that plays a critical role in crop pollination and agricultural productivity across the state.

For more information about Iowa's sales tax and its agricultural exemptions, click here.