Senate
File
2325
-
Reprinted
SENATE
FILE
2325
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
SSB
3168)
(As
Amended
and
Passed
by
the
Senate
April
28,
2016
)
A
BILL
FOR
An
Act
providing
a
sales
tax
refund
for
the
sale
of
goods
and
1
services
furnished
in
fulfillment
of
a
written
construction
2
contract
with
a
qualifying
nonprofit
hospital,
and
providing
3
penalties.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
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Section
1.
Section
423.4,
Code
2016,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
12.
a.
For
purposes
of
this
subsection,
3
“designated
nonprofit
hospital”
means
a
nonprofit
hospital
4
licensed
pursuant
to
chapter
135B
that
satisfies
all
of
the
5
following
requirements:
6
(1)
The
hospital
entered
into
a
written
construction
7
contract
on
or
after
January
1,
2014,
but
prior
to
December
31,
8
2016,
or
the
hospital
issued
bonds
to
fund
construction
on
or
9
after
July
1,
2014,
but
prior
to
December
31,
2016.
10
(2)
The
hospital
is
located
in
a
county
that
borders
11
Illinois
and
has
a
population
of
at
least
one
hundred
fifty
12
thousand
according
to
the
2010
certified
federal
census.
13
(3)
Between
July
1,
2014,
and
December
31,
2018,
the
14
hospital,
including
any
affiliated
system
hospital
located
15
in
the
same
county,
expends
more
than
two
million
dollars
on
16
capital
expenditures
for
facilities
to
provide
inpatient
or
17
outpatient
behavioral
health
services,
as
determined
by
the
18
department
from
the
Medicare
cost
reports
prepared
by
the
19
hospital.
20
b.
Beginning
July
1,
2017,
a
designated
nonprofit
hospital
21
in
this
state
may
make
application
to
the
department
for
the
22
refund
of
the
sales
or
use
tax
upon
the
sales
price
of
all
sales
23
of
goods,
wares,
or
merchandise,
or
from
services
furnished
to
24
a
contractor,
used
in
the
fulfillment
of
a
written
construction
25
contract
with
the
designated
nonprofit
hospital
entered
into
on
26
or
after
January
1,
2014,
but
prior
to
December
31,
2016.
In
27
order
to
qualify
for
the
refund,
the
sale
and
delivery
of
the
28
goods,
wares,
or
merchandise,
or
the
services
furnished,
must
29
have
occurred
between
January
1,
2014,
and
December
31,
2017,
30
and
must
have
been
purchased
directly
by
a
contractor,
or
by
a
31
contractor
as
the
agent
for
the
designated
nonprofit
hospital,
32
or
directly
by
the
designated
nonprofit
hospital.
33
c.
Such
contractor
shall
state
under
oath,
on
forms
provided
34
by
the
department,
the
amount
of
such
sales
of
goods,
wares,
or
35
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merchandise,
or
services
furnished
and
used
in
the
performance
1
of
such
contract,
and
upon
which
sales
or
use
tax
has
been
2
paid,
and
shall
file
such
forms
with
the
designated
nonprofit
3
hospital
which
has
made
any
written
contract
for
performance
4
by
the
contractor.
5
d.
On
or
after
July
1,
2017,
but
not
more
than
three
6
years
after
final
settlement
has
been
made,
the
designated
7
nonprofit
hospital
shall
make
application
to
the
department
8
for
any
refund
of
the
amount
of
the
sales
or
use
tax
which
9
shall
have
been
paid
upon
any
goods,
wares,
or
merchandise,
10
or
services
furnished.
The
application
shall
be
made
in
the
11
manner
prescribed
by
the
department
and
upon
forms
provided
by
12
the
department.
The
department
shall
audit
the
claim
and,
if
13
approved,
issue
a
warrant
to
the
designated
nonprofit
hospital
14
in
the
amount
of
the
sales
or
use
tax
which
has
been
paid
to
the
15
state
of
Iowa
under
the
contract.
However,
for
sales
and
use
16
tax
paid
between
January
1,
2014,
and
July
1,
2017,
the
total
17
eligible
refund
shall
be
amortized
equally
over
two
calendar
18
years,
and
the
department
shall
issue
one
warrant
each
calendar
19
quarter
for
forty-eight
calendar
quarters
until
the
total
20
applicable
refund
amount
has
been
issued.
21
e.
The
total
amount
of
refunds
provided
pursuant
to
this
22
subsection
shall
not
exceed
two
million
dollars.
23
f.
Any
contractor
who
willfully
makes
a
false
report
of
24
tax
paid
under
the
provisions
of
this
subsection
is
guilty
of
25
a
simple
misdemeanor
and
in
addition
shall
be
liable
for
the
26
payment
of
the
tax
and
any
applicable
penalty
and
interest.
27
g.
This
subsection
is
repealed
July
1,
2022,
or
thirty
28
days
following
the
date
on
which
two
million
dollars
in
total
29
refunds
have
been
provided.
30
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