Text: SSB02072                          Text: SSB02074
Text: SSB02000 - SSB02099               Text: SSB Index
Bills and Amendments: General Index     Bill History: General Index

Senate Study Bill 2073

Bill Text

PAG LIN
  1  1    Section 1.  Section 422.45, subsection 27, paragraph b,
  1  2 Code Supplement 1997, is amended to read as follows:
  1  3    b.  The gross receipts from the sale of fuel used in
  1  4 creating heat, power, steam, or for generating electrical
  1  5 current, or from the sale of electricity, directly and
  1  6 primarily used in processing by a manufacturer consumed by
  1  7 computers, machinery, or equipment used in an exempt manner
  1  8 described in paragraph "a", subparagraph (1), (2), (3), (5),
  1  9 or (6).
  1 10    Sec. 2.  Section 422.45, subsection 27, paragraph c, Code
  1 11 Supplement 1997, is amended by adding the following new
  1 12 subparagraph:
  1 13    NEW SUBPARAGRAPH.  (4)  Vehicles subject to registration,
  1 14 except vehicles subject to registration which are directly and
  1 15 primarily used in recycling or reprocessing of waste products.
  1 16    Sec. 3.  Section 422.45, subsection 27, paragraph d,
  1 17 subparagraph (4), Code Supplement 1997, is amended to read as
  1 18 follows:
  1 19    (4)  "Manufacturer" means as defined in section 428.20, but
  1 20 also includes contract manufacturers.  A contract manufacturer
  1 21 is a manufacturer that otherwise falls within the definition
  1 22 of manufacturer under section 428.20, except that a contract
  1 23 manufacturer does not sell the tangible personal property the
  1 24 contract manufacturer processes on behalf of other
  1 25 manufacturers.  A business engaged in activities subsequent to
  1 26 the extractive process of quarrying or mining, such as
  1 27 crushing, washing, sizing, or blending of aggregate materials,
  1 28 is a manufacturer with respect to these activities.
  1 29    Sec. 4.  Section 422.45, subsection 27, paragraph d, Code
  1 30 Supplement 1997, is amended by adding the following new
  1 31 subparagraph:
  1 32    NEW SUBPARAGRAPH.  (6)  "Receipt or producing of raw
  1 33 materials" means activities performed upon tangible personal
  1 34 property only.  With respect to raw materials produced from or
  1 35 upon real estate, the receipt or producing of raw materials is
  2  1 deemed to occur immediately following the severance of the raw
  2  2 materials from the real estate.
  2  3    Sec. 5.  RETROACTIVE APPLICABILITY DATE.  Sections 1, 2,
  2  4 and 4 of this Act are retroactively effective July 1, 1997,
  2  5 for sales and taxable uses occurring on or after that date.  
  2  6                           EXPLANATION
  2  7    This bill amends the statute which exempts sales of certain
  2  8 industrial machinery, equipment, computers, fuel, and
  2  9 electricity from tax.  It expands the exemption allowed to
  2 10 sales of fuel and electricity used in computers, machinery,
  2 11 and equipment.  The bill provides that sales of vehicles
  2 12 subject to registration are not exempt machinery or equipment
  2 13 sales unless the vehicles are directly and primarily used in
  2 14 recycling or reprocessing of waste products.  The bill defines
  2 15 "receipt or producing of raw materials" to confine the phrase
  2 16 to activities performed on tangible personal property only.
  2 17    The bill also exempts from state sales tax machinery and
  2 18 equipment used in activities subsequent to extraction of
  2 19 materials through mining or quarrying by adding a business
  2 20 engaged in that activity to the definition of "manufacturer".
  2 21    The sections of the bill relating to the fuel and
  2 22 electricity exemption, to sales of vehicles subject to
  2 23 registration, and to the definition of "receipt or producing
  2 24 of raw materials" are retroactively effective to July 1, 1997.
  2 25 The section of the bill relating to the definition of
  2 26 "manufacturer" takes effect July 1, 1998.  
  2 27 LSB 3775SC 77
  2 28 sc/cf/24
     

Text: SSB02072                          Text: SSB02074
Text: SSB02000 - SSB02099               Text: SSB Index
Bills and Amendments: General Index     Bill History: General Index

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