House File 103 - Introduced HOUSE FILE 103 BY HINSON A BILL FOR An Act relating to the sales tax exemption for certain 1 wastewater treatment or effluent treatment services. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1942YH (2) 87 gh/sc

H.F. 103 Section 1. Section 423.3, subsection 32, paragraph c, Code 1 2017, is amended to read as follows: 2 c. The sale or furnishing of sewage service for 3 nonresidential commercial operations , except for water 4 treatment or effluent treatment services to a paper recycling 5 mill . 6 EXPLANATION 7 The inclusion of this explanation does not constitute agreement with 8 the explanation’s substance by the members of the general assembly. 9 This bill relates to the sales tax exemption for certain 10 wastewater treatment or effluent treatment services. 11 Currently, the sales price of tangible personal property 12 sold, or of services furnished, by a county or city are exempt 13 from sales tax with four listed exceptions to the exemption. 14 One of the exceptions is for the sale or furnishing of sewage 15 service for nonresidential commercial operations which makes 16 such service subject to the sales tax. The bill excludes from 17 the exception water treatment or effluent treatment services to 18 a paper recycling mill which makes such services exempt from 19 sales tax. 20 By operation of Code section 423.6, an item exempt from the 21 imposition of the sales tax is also exempt from the use tax 22 imposed in Code section 423.5. 23 -1- LSB 1942YH (2) 87 gh/sc 1/ 1