Senate File 2325 S-5185 Amend Senate File 2325 as follows: 1 1. By striking everything after the enacting clause 2 and inserting: 3 < Section 1. Section 423.4, Code 2016, is amended by 4 adding the following new subsection: 5 NEW SUBSECTION . 12. a. For purposes of this 6 subsection, “designated nonprofit hospital” means a 7 nonprofit hospital licensed pursuant to chapter 135B 8 that satisfies all of the following requirements: 9 (1) The hospital entered into a written 10 construction contract on or after January 1, 2014, but 11 prior to December 31, 2016, or the hospital issued 12 bonds to fund construction on or after July 1, 2014, 13 but prior to December 31, 2016. 14 (2) The hospital is located in a county that 15 borders Illinois and has a population of at least one 16 hundred fifty thousand according to the 2010 certified 17 federal census. 18 (3) Between July 1, 2014, and December 31, 2018, 19 the hospital, including any affiliated system hospital 20 located in the same county, expends more than two 21 million dollars on capital expenditures for facilities 22 to provide inpatient or outpatient behavioral health 23 services, as determined by the department from the 24 Medicare cost reports prepared by the hospital. 25 b. Beginning July 1, 2017, a designated nonprofit 26 hospital in this state may make application to the 27 department for the refund of the sales or use tax 28 upon the sales price of all sales of goods, wares, 29 or merchandise, or from services furnished to a 30 contractor, used in the fulfillment of a written 31 construction contract with the designated nonprofit 32 hospital entered into on or after January 1, 2014, 33 but prior to December 31, 2016. In order to qualify 34 for the refund, the sale and delivery of the goods, 35 -1- SF2325.3942 (3) 86 mm/rj 1/ 3 #1.

wares, or merchandise, or the services furnished, must 1 have occurred between January 1, 2014, and December 2 31, 2017, and must have been purchased directly by a 3 contractor, or by a contractor as the agent for the 4 designated nonprofit hospital, or directly by the 5 designated nonprofit hospital. 6 c. Such contractor shall state under oath, on forms 7 provided by the department, the amount of such sales 8 of goods, wares, or merchandise, or services furnished 9 and used in the performance of such contract, and upon 10 which sales or use tax has been paid, and shall file 11 such forms with the designated nonprofit hospital which 12 has made any written contract for performance by the 13 contractor. 14 d. On or after July 1, 2017, but not more than 15 three years after final settlement has been made, the 16 designated nonprofit hospital shall make application 17 to the department for any refund of the amount of the 18 sales or use tax which shall have been paid upon any 19 goods, wares, or merchandise, or services furnished. 20 The application shall be made in the manner prescribed 21 by the department and upon forms provided by the 22 department. The department shall audit the claim 23 and, if approved, issue a warrant to the designated 24 nonprofit hospital in the amount of the sales or use 25 tax which has been paid to the state of Iowa under 26 the contract. However, for sales and use tax paid 27 between January 1, 2014, and July 1, 2017, the total 28 eligible refund shall be amortized equally over two 29 calendar years, and the department shall issue one 30 warrant each calendar quarter for forty-eight calendar 31 quarters until the total applicable refund amount has 32 been issued. 33 e. The total amount of refunds provided pursuant to 34 this subsection shall not exceed two million dollars. 35 -2- SF2325.3942 (3) 86 mm/rj 2/ 3

f. Any contractor who willfully makes a false 1 report of tax paid under the provisions of this 2 subsection is guilty of a simple misdemeanor and in 3 addition shall be liable for the payment of the tax and 4 any applicable penalty and interest. 5 g. This subsection is repealed July 1, 2022, or 6 thirty days following the date on which two million 7 dollars in total refunds have been provided. > 8 2. Title page, by striking lines 1 through 5 and 9 inserting < An Act providing a sales tax refund for the 10 sale of goods and services furnished in fulfillment 11 of a written construction contract with a qualifying 12 nonprofit hospital, and providing penalties. > 13 ______________________________ CHRIS BRASE ______________________________ ROBY SMITH -3- SF2325.3942 (3) 86 mm/rj 3/ 3 #2.