SSB 3197 (LSB 6387XC (2) 88)

SENATE FILE _____ 

BY  (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON CHAPMAN)

A BILL FOR

An Act exempting the sales price of tangible personal property or specified digital products sold, or services furnished, to a nonprofit hospital, and including effective date and retroactive applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 423.3, subsection 27, Code 2020, is amended to read as follows:
   27.  The sales price of tangible personal property or specified digital products sold, or of services furnished, to a nonprofit hospital licensed pursuant to chapter 135B to be used in the operation of the hospital.  For purposes of this subsection, “nonprofit hospital licensed pursuant to chapter 135B” includes a group of qualifying organizations acting in concert.
    Sec. 2.  REFUNDS.  Refunds of taxes, interest, or penalties that arise from claims resulting from the enactment of this Act, for sales occurring between January 1, 2013, and the effective date of this Act, shall not be allowed unless refund claims are filed prior to October 1, 2020, notwithstanding any other provision of law to the contrary.
    Sec. 3.  EFFECTIVE DATE.  This Act, being deemed of immediate importance, takes effect upon enactment.
    Sec. 4.  RETROACTIVE APPLICABILITY.  This Act applies retroactively to January 1, 2013.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   Under current law, the sales price of tangible personal property or specified digital products sold, or services furnished, to a nonprofit hospital licensed pursuant to Code chapter 135B, are exempt from the sales tax. For purposes of qualifying for the sales tax exemption for nonprofit hospitals, this bill specifies that a “nonprofit hospital licensed pursuant to chapter 135B” includes a group of qualifying organizations acting in concert.
   The bill requires refunds of taxes, interest, or penalties arising from claims resulting from the enactment of the bill for sales occurring between January 1, 2013, and the effective date of the bill to be filed prior to October 1, 2020.
   By operation of Code section 423.6, an item exempt from the imposition of the sales tax is also exempt from the use tax imposed in Code section 423.5.
   The bill takes effect upon enactment, and applies retroactively to January 1, 2013.