House File 125 - Introduced HOUSE FILE 125 BY PETTENGILL , HEIN , HESS , KOESTER , STANERSON , and ALONS A BILL FOR An Act providing a sales tax exemption for textbooks used in 1 attending a postsecondary educational institution. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1347YH (3) 85 kh/sc

H.F. 125 Section 1. Section 423.3, Code 2013, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 99. a. The sales price of new and 3 used textbooks if the textbooks are for use in attending a 4 postsecondary educational institution. 5 b. For purposes of this subsection: 6 (1) “Textbooks” means books and other instructional 7 materials and equipment used in attending a postsecondary 8 educational institution in this state, including books and 9 materials for extracurricular activities, which include 10 sporting events, musical or dramatic events, speech activities, 11 or programs of a similar nature. “Textbooks” does not include 12 instructional books and materials used in the teaching of 13 religious tenets, doctrines, or worship, the purpose of which 14 is to inculcate those tenets, doctrines, or worship. 15 (2) “Postsecondary educational institution” means an 16 accredited private institution, as defined in section 261.9, an 17 Iowa community college, or an institution of higher education 18 governed by the state board of regents. 19 c. Postsecondary educational institutions are required to 20 provide a list of required and suggested textbooks for all 21 courses and the corresponding international standard book 22 numbers for such textbooks at least fourteen days, or as soon 23 as practicable, before the start of each semester or term, at 24 the locations where textbooks are sold on campus and on the 25 internet site for the respective postsecondary educational 26 institution. 27 d. In order to receive the sales tax exemption, a person 28 is required to show a current official identification card 29 from a postsecondary educational institution and show that the 30 textbooks intended to be purchased are on the list of textbooks 31 provided by the postsecondary educational institution under 32 paragraph “c” . 33 EXPLANATION 34 This bill provides a sales tax exemption for textbooks used 35 -1- LSB 1347YH (3) 85 kh/sc 1/ 2

H.F. 125 in attending a public or accredited private Iowa postsecondary 1 educational institution. “Textbooks” are defined as books and 2 other instructional materials and equipment, including books 3 and materials for extracurricular activities, but does not 4 include instructional books and materials used for teaching 5 religious tenets, doctrines, or worship if the purpose is to 6 inculcate those tenets, doctrines, or worship. 7 Postsecondary educational institutions are required 8 to provide a list of textbooks for all courses and the 9 corresponding international standard book numbers for the 10 textbooks at least 14 days, or as soon as practicable, before 11 the start of each semester or term, where textbooks are sold on 12 campus and on the institution’s internet site. 13 In order to receive the sales tax exemption, a person 14 must show a current official identification card from a 15 postsecondary educational institution and show that the 16 textbooks intended to be purchased are on the institution’s 17 textbooks list. 18 By operation of Code section 423.6, an item exempt from the 19 imposition of the sales tax is also exempt from the use tax 20 imposed in Code section 423.5. 21 -2- LSB 1347YH (3) 85 kh/sc 2/ 2