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Text: HF00125                           Text: HF00127
Text: HF00100 - HF00199                 Text: HF Index
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House File 126

Partial Bill History

Bill Text

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
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