House File 2502 S-5322 Amend House File 2502, as amended, passed, and reprinted by 1 the House, as follows: 2 1. Page 37, after line 28 by inserting: 3 < DIVISION ___ 4 MANUFACTURER SALES TAX EXEMPTION 5 Sec. ___. Section 423.3, subsection 47, paragraph d, 6 subparagraph (4), Code 2018, as amended by 2018 Iowa Acts, 7 Senate File 2417, section 183, is amended to read as follows: 8 (4) (a) “Manufacturer” means a any of the following: 9 (1) A business that primarily purchases, receives, or holds 10 personal property of any description for the purpose of adding 11 to its value by a process of manufacturing with a view to 12 selling the property for gain or profit. 13 (b) “Manufacturer” includes 14 (2) A contract manufacturers manufacturer . A contract 15 manufacturer is a manufacturer that otherwise falls within the 16 definition of manufacturer, except that a contract manufacturer 17 does not sell the tangible personal property the contract 18 manufacturer processes on behalf of other manufacturers. 19 (3) A nonprofit blood center. 20 (c) (b) “Manufacturer” does not include persons who are not 21 commonly understood as manufacturers, including but not limited 22 to persons engaged in any of the following activities: 23 (i) Construction contracting. 24 (ii) Repairing tangible personal property or real property. 25 (iii) Providing health care. 26 (iv) Farming, including cultivating agricultural products 27 and raising livestock. 28 (v) Transporting for hire. 29 (d) (c) For purposes of this subparagraph: 30 (i) “Business” means those businesses conducted for 31 profit, but excludes professions and occupations , and excludes 32 nonprofit organizations that are not a nonprofit blood center . 33 (ii) “Manufacturing” means those activities commonly 34 understood within the ordinary meaning of the term, and shall 35 -1- HF2502.5823 (2) 87 tm/rn 1/ 2 #1.
include: 1 (A) Refining. 2 (B) Purifying. 3 (C) Combining of different materials. 4 (D) Packing of meats. 5 (E) Activities subsequent to the extractive process of 6 quarrying or mining, such as crushing, washing, sizing, or 7 blending of aggregate materials. 8 (iii) “Manufacturing” does not include activities occurring 9 on premises primarily used to make retail sales. 10 Sec. ___. EFFECTIVE DATE. This division of this Act, being 11 deemed of immediate importance, takes effect upon enactment. > 12 2. By renumbering as necessary. 13 ______________________________ JIM LYKAM -2- HF2502.5823 (2) 87 tm/rn 2/ 2 #2.