House File 720 - Introduced



                                       HOUSE FILE       
                                       BY  WISE


    Passed House,  Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act providing a sales tax exemption for the purchase of
  2    fitness equipment by a physical exercise club.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 2395HH 82
  5 ak/es/88

PAG LIN



  1  1    Section 1.  Section 423.3, Code 2007, is amended by adding
  1  2 the following new subsection:
  1  3    NEW SUBSECTION.  92.  The sales price from the sale of
  1  4 fitness equipment that is primarily used by a customer of a
  1  5 physical exercise club for exercise or fitness.  For the
  1  6 purposes of this subsection, "physical exercise club" includes
  1  7 those entities defined in section 552.1 and a company or
  1  8 organization that purchases fitness equipment for its
  1  9 employees or members to use free of charge.
  1 10                           EXPLANATION
  1 11    This bill provides a sales tax exemption for the sale of
  1 12 fitness equipment to a physical exercise club.  The fitness
  1 13 equipment must be primarily used by a customer of the club for
  1 14 exercise or fitness in order to be exempt.  A physical
  1 15 exercise club is a facility offering services for the
  1 16 preservation, maintenance, encouragement, or development of
  1 17 physical fitness or well=being, including businesses defined
  1 18 in Code section 552.1 and companies or organizations that
  1 19 provide services free of charge to employees or members.
  1 20 LSB 2395HH 82
  1 21 ak:sc/es/88