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
Iowa General Assembly
Search: House Bills and Amendments (77th General Assembly)
© 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