Senate File 2272 S-5105 Amend Senate File 2272 as follows: 1 1. Page 15, after line 26 by inserting: 2 < Sec. ___. Section 423.3, subsection 47, paragraph 3 a, unnumbered paragraph 1, Code 2014, is amended to 4 read as follows: 5 The sales price from the sale or rental of 6 computers, machinery, and equipment, including 7 replacement parts , supplies , and materials used to 8 construct or self-construct computers, machinery, and 9 equipment , replacement parts, and supplies, if such 10 items are any of the following: 11 Sec. ___. Section 423.3, subsection 47, paragraph 12 d, Code 2014, is amended by adding the following new 13 subparagraphs: 14 NEW SUBPARAGRAPH . (7) “Replacement part” means 15 tangible personal property other than computers, 16 machinery, equipment, or supplies, regardless of the 17 cost or useful life of the tangible personal property, 18 that meets all of the following conditions: 19 (a) The tangible personal property replaces a 20 component of a computer, machinery, or equipment, 21 which component is capable of being separated from the 22 computer, machinery, or equipment. 23 (b) The tangible personal property performs the 24 same or similar function as the component it replaced. 25 (c) The tangible personal property restores the 26 computer, machinery, or equipment to an operational 27 condition, or upgrades or improves the efficiency of 28 the computer, machinery, or equipment. 29 NEW SUBPARAGRAPH . (8) “Supplies” means tangible 30 personal property, other than computers, machinery, 31 equipment, or replacement parts, that meets one of the 32 following conditions: 33 (a) The tangible personal property is to be 34 connected to a computer, machinery, or equipment and 35 requires regular replacement because the property is 36 consumed or deteriorates during use, including but not 37 limited to saw blades, drill bits, filters, and other 38 similar items with a short useful life. 39 (b) The tangible personal property is used in 40 conjunction with a computer, machinery, or equipment 41 and is specially designed for use in manufacturing 42 specific products and may be used interchangeably and 43 intermittently on a particular computer, machine, or 44 piece of equipment, including but not limited to jigs, 45 dies, tools, and other similar items. 46 (c) The tangible personal property comes into 47 physical contact with other tangible personal property 48 used in processing and is used to assist with or 49 maintain conditions necessary for processing, including 50 -1- SF2272.3590 (2) 85 mm/sc 1/ 3 #1.

but not limited to cutting fluids, oils, coolants, 1 lubricants, and other similar items with a short useful 2 life. 3 (d) The tangible personal property is directly and 4 primarily used in an activity described in paragraph 5 “a” , subparagraphs (1) through (6), including but not 6 limited to prototype materials and testing materials. > 7 2. By renumbering as necessary. 8 ______________________________ RANDY FEENSTRA ______________________________ BILL ANDERSON ______________________________ MARK CHELGREN ______________________________ NANCY J. BOETTGER ______________________________ JAKE CHAPMAN ______________________________ DAN ZUMBACH ______________________________ ROBY SMITH ______________________________ DENNIS GUTH ______________________________ DAVID JOHNSON ______________________________ AMY SINCLAIR -2- SF2272.3590 (2) 85 mm/sc 2/ 3 #2.

______________________________ MARK SEGEBART ______________________________ JULIAN GARRETT ______________________________ CHARLES SCHNEIDER ______________________________ MICHAEL BREITBACH ______________________________ JERRY BEHN ______________________________ TIM L. KAPUCIAN ______________________________ KEN ROZENBOOM ______________________________ BILL DIX ______________________________ JACK WHITVER ______________________________ SANDRA H. GREINER -3- SF2272.3590 (2) 85 mm/sc 3/ 3