Text: SF00446 Text: SF00448 Text: SF00400 - SF00499 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 422.42, subsection 15, Code 2003, is 1 2 amended to read as follows: 1 3 15. "Retail sale" or "sale at retail" means the sale to a 1 4 consumer or to any person for any purpose, other than for 1 5 processing, for resale of tangible personal property or 1 6 taxable services, or for resale of tangible personal property 1 7 in connection with taxable services; and includes the sale of 1 8 gas, electricity, water, and communication service to retail 1 9 consumers or users; but does not include agricultural breeding 1 10 livestock and domesticated fowl; and does not include 1 11 commercial fertilizer, agricultural limestone, herbicide, 1 12 pesticide, insecticide, including adjuvants, surfactants, and 1 13 other products directly related to the application enhancement 1 14 of those products, and food, medication, or agricultural drain 1 15 tile, including installation of agricultural drain tile, any 1 16 of which are to be used in disease control, weed control, 1 17 insect control, or health promotion of plants or livestock 1 18 produced as part of agricultural production for market; and 1 19 does not include electricity, steam, or any taxable service 1 20 when purchased and used in the processing of tangible personal 1 21 property intended to be sold ultimately at retail. 1 22 PARAGRAPH DIVIDED. When used by a manufacturer of food 1 23 products, carbon dioxide in a liquid, solid, or gaseous form, 1 24 electricity, steam, and other taxable services are sold for 1 25 processing when used to produce marketable food products for 1 26 human consumption, including but not limited to, treatment of 1 27 material to change its form, context, or condition, in order 1 28 to produce the food product, maintenance of quality or 1 29 integrity of the food product, changing or maintenance of 1 30 temperature levels necessary to avoid spoilage or to hold the 1 31 food product in marketable condition, maintenance of 1 32 environmental conditions necessary for the safe or efficient 1 33 use of machinery and material used to produce the food 1 34 product, sanitation and quality control activities, formation 1 35 of packaging, placement into shipping containers, and movement 2 1 of the material or food product until shipment from the 2 2 building of manufacture. 2 3 PARAGRAPH DIVIDED. Tangible personal property is sold for 2 4 processing within the meaning of this subsection only when it 2 5 is intended that the property will, by means of fabrication, 2 6 compounding, manufacturing, or germination become an integral 2 7 part of other tangible personal property intended to be sold 2 8 ultimately at retail; or will be consumed as fuel in creating 2 9 heat, power, or steam for processing including grain drying, 2 10 or for providing heat or cooling for livestock buildings or 2 11 for greenhouses or buildings or parts of buildings dedicated 2 12 to the production of flowering, ornamental, or vegetable 2 13 plants intended for sale in the ordinary course of business, 2 14 or for use in cultivation of agricultural products by 2 15 aquaculture, or for generating electric current, or in 2 16 implements of husbandry engaged in agricultural production; or 2 17 the property is a chemical, solvent, sorbent of matter or 2 18 energy, or reagent, which is directly used and is consumed, 2 19 dissipated, or depleted, in processing personal property which 2 20 is intended to be sold ultimately at retail or consumed in the 2 21 maintenance or repair of fabric or clothing, and which may not 2 22 become a component or integral part of the finished product. 2 23 The distribution to the public of free newspapers or shoppers 2 24 guides is a retail sale for purposes of the processing 2 25 exemption. 2 26 Sec. 2. Section 423.1, subsection 15, paragraph c, Code 2 27 2003, is amended to read as follows: 2 28 c. Chemicals, solvents, sorbents of matter or energy, or 2 29 reagents, which are directly used and are consumed, 2 30 dissipated, or depleted in processing personal property, which 2 31 is intended to be sold ultimately at retail, and which may not 2 32 become a component or integral part of the finished product. 2 33 EXPLANATION 2 34 Under the sales and use tax provisions, property used in 2 35 processing tangible personal property for sale at retail is 3 1 exempt when purchased. Sorbents are such property. This bill 3 2 specifies that sorbents of matter or sorbents of energy are 3 3 both considered property used in processing. 3 4 LSB 2953SV 80 3 5 mg/pj/5
Text: SF00446 Text: SF00448 Text: SF00400 - SF00499 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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