H.F. 2459 Section 1. Section 423.3, Code 2018, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 103. The sales price from the sale of 3 tangible personal property to a nonprofit food bank, which 4 tangible personal property is to be used by the nonprofit 5 food bank for a charitable purpose. For purposes of this 6 subsection, “nonprofit food bank” means an organization 7 organized under chapter 504 and qualifying under section 8 501(c)(3) of the Internal Revenue Code as an organization 9 exempt from federal income tax under section 501(a) of the 10 Internal Revenue Code that maintains an established operation 11 involving the provision of food or edible commodities or the 12 products thereof on a regular basis to persons in need or to 13 food pantries, soup kitchens, hunger relief centers, or other 14 food or feeding centers that, as an integral part of their 15 normal activities, provide meals or food on a regular basis to 16 persons in need. 17 EXPLANATION 18 The inclusion of this explanation does not constitute agreement with 19 the explanation’s substance by the members of the general assembly. 20 This bill exempts from the sales tax the purchase price from 21 the sale of tangible personal property to a nonprofit food bank 22 if the property is to be used by the nonprofit food bank for a 23 charitable purpose. “Nonprofit food bank” is defined in the 24 bill. 25 By operation of Code section 423.6, an item exempt from the 26 imposition of the sales tax is also exempt from the use tax 27 imposed in Code section 423.5. 28 -1- LSB 5888YH (1) 87 mm/jh 1/ 1