Overview
- As of January 1, Indiana, Iowa, Nebraska, Utah and West Virginia are enforcing the new limits, with additional states scheduled to phase in restrictions through October 2026.
- Iowa’s rule bars any item the state treats as taxable for sales tax purposes, with exceptions for food-producing plants and seeds.
- The initiative, advanced by Health Secretary Robert F. Kennedy Jr. and Agriculture Secretary Brooke Rollins, has backing from 18 states for a staggered rollout.
- Retail groups estimate about $1.6 billion in upfront costs for stores to retool checkout systems plus roughly $759 million in annual expenses.
- USDA guidance allows approved exemptions for two years with a potential three-year extension, and states must evaluate the policy’s effects during the trial period.