Text: HF00125 Text: HF00127 Text: HF00100 - HF00199 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 HOUSE FILE 126 1 2 1 3 AN ACT 1 4 RELATING TO THE STATE SALES AND USE TAX EXEMPTION ON 1 5 CERTAIN COMPUTERS, MACHINERY, EQUIPMENT, AND FUEL. 1 6 1 7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 1 8 1 9 Section 1. Section 422.45, subsection 27, Code 1997, is 1 10 amended by striking the subsection and inserting in lieu 1 11 thereof the following: 1 12 27. a. The gross receipts from the sale or rental of 1 13 computers, machinery, and equipment, including replacement 1 14 parts, and materials used to construct or self-construct 1 15 computers, machinery, and equipment if such items are any of 1 16 the following: 1 17 (1) Directly and primarily used in processing by a 1 18 manufacturer. 1 19 (2) Directly and primarily used to maintain the integrity 1 20 of the product or to maintain unique environmental conditions 1 21 required for either the product or the computers, machinery, 1 22 and equipment used in processing by a manufacturer, including 1 23 test equipment used to control quality and specifications of 1 24 the product. 1 25 (3) Directly and primarily used in research and 1 26 development of new products or processes of processing. 1 27 (4) Computers used in processing or storage of data or 1 28 information by an insurance company, financial institution, or 1 29 commercial enterprise. 1 30 (5) Directly and primarily used in recycling or 1 31 reprocessing of waste products. 1 32 (6) Pollution control equipment used by a manufacturer, 1 33 including but not limited to that required or certified by an 1 34 agency of this state or of the United States government. 1 35 b. The gross receipts from the sale of fuel used in 2 1 creating heat, power, steam, or for generating electrical 2 2 current, or from the sale of electricity, directly and 2 3 primarily used in processing by a manufacturer. 2 4 c. However, the gross receipts from the sale or rental of 2 5 the following shall not be exempt from the tax imposed by this 2 6 division: 2 7 (1) Hand tools. 2 8 (2) Point-of-sale equipment and computers. 2 9 (3) Industrial machinery, equipment and computers, 2 10 including pollution control equipment, within the scope of 2 11 section 427A.1, subsection 1, paragraphs "h" and "i". 2 12 d. As used in this subsection: 2 13 (1) "Commercial enterprise" includes businesses and 2 14 manufacturers conducted for profit and includes centers for 2 15 data processing services to insurance companies, financial 2 16 institutions, businesses, and manufacturers but excludes 2 17 professions and occupations and nonprofit organizations. 2 18 (2) "Financial institution" means as defined in section 2 19 527.2. 2 20 (3) "Insurance company" means an insurer organized or 2 21 operating under chapter 508, 514, 515, 518, 518A, 519, or 520, 2 22 or authorized to do business in Iowa as an insurer or a 2 23 licensed insurance agent under chapter 522. 2 24 (4) "Manufacturer" means as defined in section 428.20, but 2 25 also includes contract manufacturers. A contract manufacturer 2 26 is a manufacturer that otherwise falls within the definition 2 27 of manufacturer under section 428.20, except that a contract 2 28 manufacturer does not sell the tangible personal property the 2 29 contract manufacturer processes on behalf of other 2 30 manufacturers. 2 31 (5) "Processing" means a series of operations in which 2 32 materials are manufactured, refined, purified, created, 2 33 combined, or transformed by a manufacturer, ultimately into 2 34 tangible personal property. Processing encompasses all 2 35 activities commencing with the receipt or producing of raw 3 1 materials by the manufacturer and ending at the point products 3 2 are delivered for shipment or transferred from the 3 3 manufacturer. Processing includes but is not limited to 3 4 refinement or purification of materials; treatment of 3 5 materials to change their form, context, or condition; 3 6 maintenance of the quality or integrity of materials, 3 7 components, or products; maintenance of environmental 3 8 conditions necessary for materials, components, or products; 3 9 quality control activities; and construction of packaging and 3 10 shipping devices, placement into shipping containers or any 3 11 type of shipping devices or medium, and the movement of 3 12 materials, components, or products until shipment from the 3 13 processor. 3 14 3 15 3 16 3 17 RON J. CORBETT 3 18 Speaker of the House 3 19 3 20 3 21 3 22 MARY E. KRAMER 3 23 President of the Senate 3 24 3 25 I hereby certify that this bill originated in the House and 3 26 is known as House File 126, Seventy-seventh General Assembly. 3 27 3 28 3 29 3 30 ELIZABETH ISAACSON 3 31 Chief Clerk of the House 3 32 Approved , 1997 3 33 3 34 3 35 4 1 TERRY E. BRANSTAD 4 2 Governor
Text: HF00125 Text: HF00127 Text: HF00100 - HF00199 Text: HF Index Bills and Amendments: General Index Bill History: General Index
© 1997 Cornell College and League of Women Voters of Iowa
Comments about this site or page? webmaster@legis.iowa.gov. Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.
Last update: Sat Jun 21 03:41:39 CDT 1997
URL: /DOCS/GA/77GA/Legislation/HF/00100/HF00126/970414.html
jhf