HF 2486 (LSB 6232HV (2) 87)

HOUSE FILE 2486

BY  COMMITTEE ON WAYS AND MEANS

(SUCCESSOR TO HSB 683)

(As Amended and Passed by the House 2018-05-02)

A BILL FOR

An Act relating to postsecondary institutions by exempting from the sales tax the sale of instructional materials required for use in a course of instruction at a postsecondary institution in this state and by excluding postsecondary institutions from the sales tax exemption for sales where the profits are used by or donated to certain nonprofit entities for educational, religious, or charitable purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 423.3, subsection 78, Code 2018, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  d.  This exemption does not apply to the sales price from the sale of tangible personal property or services the profits from which are used by or donated to a postsecondary institution or an entity under the control of a postsecondary institution. For purposes of this paragraph, “postsecondary institution” means the same as defined in subsection 103.
    Sec. 2.  Section 423.3, Code 2018, is amended by adding the following new subsection:
   NEW SUBSECTION.  103.  a.  The sales price from the sale of instructional materials required for a course of instruction at a postsecondary institution in this state, when purchased for use by a student enrolled in such course of instruction at the postsecondary institution.
   b.  For purposes of this subsection:
   (1)  “Instructional materials” means books, textbooks, and other written course materials, whether in printed or electronic form, and classroom equipment.
   (2)  “Postsecondary institution” means an institution of higher learning under the control of the state board of regents, a community college established under chapter 260C, or an accredited private institution as defined in section 261.9.
   (3)  “Required for a course of instruction” means integral to completion of a course of instruction and uniquely identified by a postsecondary institution as required for such course. Instructional materials that primarily enhance or assist in the facilitation of learning shall not be considered to be “required for a course of instruction”.