House
File
91
-
Introduced
HOUSE
FILE
91
BY
ANDREWS
A
BILL
FOR
An
Act
relating
to
the
state
sales
and
use
tax
by
expanding
1
nonprofit
exemptions
on
the
state
sales
and
use
tax
to
2
include
all
nonprofit
entities
exempt
from
federal
taxation.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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91
Section
1.
Section
321.105A,
subsection
2,
paragraph
c,
1
subparagraph
(1),
Code
2023,
is
amended
to
read
as
follows:
2
(1)
Entities
listed
in
section
423.3,
subsections
17,
18,
3
19,
20,
21,
22,
26,
27,
28,
31,
and
79
,
Code
2023,
and
entities
4
listed
in
section
423.3,
subsection
31,
to
the
extent
that
5
those
entities
are
exempt
from
the
tax
imposed
on
the
sale
6
of
tangible
personal
property
sold
at
retail
in
the
state
to
7
consumers
or
users.
8
Sec.
2.
Section
321.105A,
subsection
3,
paragraph
f,
9
subparagraph
(1),
Code
2023,
is
amended
to
read
as
follows:
10
(1)
Vehicles
leased
to
entities
listed
in
section
423.3,
11
subsections
17,
18,
19,
20,
21,
22,
26,
27,
28,
31,
and
79
,
Code
12
2023,
and
entities
listed
in
section
423.3,
subsection
31,
to
13
the
extent
that
those
entities
are
exempt
from
the
tax
imposed
14
on
the
sale
of
tangible
personal
property
sold
at
retail
in
the
15
state
to
consumers
or
users.
16
Sec.
3.
Section
423.3,
subsections
17,
18,
19,
20,
21,
22,
17
23,
24,
25,
26,
26A,
27,
28,
30,
79,
87,
88,
97,
and
107,
Code
18
2023,
are
amended
by
striking
the
subsections.
19
Sec.
4.
Section
423.3,
Code
2023,
is
amended
by
adding
the
20
following
new
subsection:
21
NEW
SUBSECTION
.
29.
The
sales
price
of
tangible
personal
22
property
or
specified
digital
products
sold,
or
services
23
furnished,
to
a
nonprofit
entity
whose
income
is
exempt
from
24
federal
taxation
under
section
501
of
the
Internal
Revenue
25
Code.
26
Sec.
5.
Section
423.3,
subsection
47,
paragraph
d,
27
subparagraph
(1),
Code
2023,
is
amended
to
read
as
follows:
28
(1)
“Commercial
enterprise”
means
businesses
and
29
manufacturers
conducted
for
profit,
for-profit
and
nonprofit
30
insurance
companies,
and
for-profit
and
nonprofit
financial
31
institutions,
but
excludes
other
nonprofits
and
professions
and
32
occupations.
33
Sec.
6.
Section
423.3,
subsection
78,
paragraph
a,
34
unnumbered
paragraph
1,
Code
2023,
is
amended
to
read
as
35
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follows:
1
The
sales
price
from
the
sale
of
tangible
personal
property,
2
specified
digital
products,
or
services
rendered
by
any
entity
3
where
the
profits
from
the
sale
of
the
tangible
personal
4
property,
specified
digital
products,
or
services
rendered,
are
5
used
by
or
donated
to
a
nonprofit
entity
that
is
exempt
from
6
federal
income
taxation
pursuant
to
section
501(c)(3)
501
of
7
the
Internal
Revenue
Code,
a
government
entity,
or
a
nonprofit
8
private
educational
institution,
and
where
the
entire
profits
9
are
expended
for
any
of
the
following
purposes:
10
EXPLANATION
11
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
12
the
explanation’s
substance
by
the
members
of
the
general
assembly.
13
This
bill
relates
to
the
state
sales
and
use
tax
by
expanding
14
nonprofit
exemptions
on
the
state
sales
and
use
tax
to
include
15
all
nonprofit
entities
exempt
from
federal
taxation
under
16
section
501
of
the
Internal
Revenue
Code
(IRC).
17
The
bill
consolidates
existing
nonprofit
sales
and
use
tax
18
exemptions
by
striking
such
exemptions
and
moving
most
of
the
19
exemptions
into
the
newly
created
nonprofit
exemption
in
Code
20
section
423.3(29).
21
The
bill
exempts
from
the
sales
and
use
tax
the
sale
of
22
tangible
personal
property
or
specified
digital
products
sold,
23
or
services
furnished,
to
a
nonprofit
entity
whose
income
is
24
exempt
from
federal
taxation
under
section
501
of
the
IRC.
The
25
bill
expands
current
law
and
makes
a
sale
by
any
such
nonprofit
26
exempt
from
the
sales
and
use
tax
if
the
entire
profits
from
27
the
sale
are
used
for
an
educational,
religious,
or
charitable
28
purpose.
29
The
bill
does
not
change
the
nonprofit
exemptions
to
the
fees
30
assessed
for
new
vehicle
registration
in
Code
section
321.105A.
31
By
operation
of
Code
section
423.6,
an
item
exempt
from
the
32
imposition
of
the
sales
tax
is
also
exempt
from
the
use
tax
33
imposed
in
Code
section
423.5.
34
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