House File 101 - Introduced HOUSE FILE BY LUKAN, STRUYK, KAUFMANN, and S. OLSON Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act exempting the sale of toys to certain nonprofit 2 organizations from state sales and use taxes. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1508HH 81 5 mg/pj/5 PAG LIN 1 1 Section 1. Section 423.3, Code 2005, is amended by adding 1 2 the following new subsection: 1 3 NEW SUBSECTION. 85. The sales price from the sales of 1 4 toys to a nonprofit organization exempt from federal income 1 5 tax under section 501 of the Internal Revenue Code that 1 6 purchases the toys from donations collected by the nonprofit 1 7 organization and distributes the toys to children at no cost. 1 8 EXPLANATION 1 9 This bill exempts from the sales and use taxes the sales of 1 10 toys to a nonprofit section 501 organization that purchases 1 11 the toys from donations collected by it and distributes the 1 12 toys to children at no cost. An example of such an 1 13 organization would be the United States marine corps auxiliary 1 14 that operates the toys for tots program. 1 15 LSB 1508HH 81 1 16 mg/pj/5