House File 2062 - Introduced HOUSE FILE 2062 BY BOSSMAN and MOHR A BILL FOR An Act exempting from the sales tax the purchase price of 1 specified digital products sold to a nonprofit food bank or 2 blood center. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5483YH (5) 88 jm/jh

H.F. 2062 Section 1. Section 423.3, Code 2020, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 25A. The sales price of specified digital 3 products sold to a nonprofit food bank that are to be used by 4 the nonprofit food bank for a charitable purpose. For purposes 5 of this subsection, “nonprofit food bank” means an organization 6 organized under chapter 504 and qualifying under section 7 501(c)(3) of the Internal Revenue Code as an organization 8 exempt from federal income tax under section 501(a) of the 9 Internal Revenue Code that maintains an established operation 10 involving the provision of food or edible commodities or the 11 products thereof on a regular basis to persons in need or to 12 food pantries, soup kitchens, hunger relief centers, or other 13 food or feeding centers that, as an integral part of its normal 14 activities, provide meals or food on a regular basis to persons 15 in need. 16 Sec. 2. Section 423.3, subsection 26A, paragraph a, Code 17 2020, is amended to read as follows: 18 a. The sales price of tangible personal property or 19 specified digital products sold , or of test laboratory services 20 furnished, if such tangible personal property , specified 21 digital products, or test laboratory services are sold or 22 furnished to a nonprofit blood center that is registered by the 23 federal food and drug administration, and the tangible personal 24 property , specified digital products, or test laboratory 25 services are directly and primarily used in the processing of 26 human blood. 27 EXPLANATION 28 The inclusion of this explanation does not constitute agreement with 29 the explanation’s substance by the members of the general assembly. 30 This bill exempts from the sales tax the purchase price of 31 specified digital products sold to a nonprofit food bank or a 32 nonprofit blood center registered with the federal food and 33 drug administration. 34 “Nonprofit food bank” is defined in the bill. “Specified 35 -1- LSB 5483YH (5) 88 jm/jh 1/ 2

H.F. 2062 digital products” is defined in Code section 423.1(55B) to mean 1 electronically transferred digital audio-visual works, digital 2 audio works, digital books, or other digital products. 3 By operation of Code section 423.6, an item exempt from the 4 imposition of the sales tax is also exempt from the use tax 5 imposed in Code section 423.5. 6 -2- LSB 5483YH (5) 88 jm/jh 2/ 2