Senate File 2001 - Introduced SENATE FILE BY ANGELO Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to a sales tax exemption for the operation of 2 nonprofit private performing arts centers, allowing a sales 3 tax refund for construction of such centers, and including a 4 retroactive applicability date. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 5160SS 82 7 ak/sc/5 PAG LIN 1 1 Section 1. Section 423.3, subsection 22, Code Supplement 1 2 2007, is amended to read as follows: 1 3 22. The sales price from sales of goods, wares, or 1 4 merchandise, or from services furnished, to a nonprofit 1 5 private art center or performing arts center to be used in the 1 6 operation of the art center or performing arts center. 1 7 Sec. 2. Section 423.4, subsection 1, unnumbered paragraph 1 8 1, Code Supplement 2007, is amended to read as follows: 1 9 A private nonprofit educational institution in this state, 1 10 nonprofit Iowa affiliate of a nonprofit international 1 11 organization whose primary activity is the promotion of the 1 12 construction, remodeling, or rehabilitation of one=family or 1 13 two=family dwellings for low=income families, nonprofit 1 14 private museum in this state, nonprofit private performing 1 15 arts center, tax=certifying or tax=levying body or 1 16 governmental subdivision of the state, including the state 1 17 board of regents, state department of human services, state 1 18 department of transportation, a municipally owned solid waste 1 19 facility which sells all or part of its processed waste as 1 20 fuel to a municipally owned public utility, and all divisions, 1 21 boards, commissions, agencies, or instrumentalities of state, 1 22 federal, county, or municipal government which do not have 1 23 earnings going to the benefit of an equity investor or 1 24 stockholder, may make application to the department for the 1 25 refund of the sales or use tax upon the sales price of all 1 26 sales of goods, wares, or merchandise, or from services 1 27 furnished to a contractor, used in the fulfillment of a 1 28 written contract with the state of Iowa, any political 1 29 subdivision of the state, or a division, board, commission, 1 30 agency, or instrumentality of the state or a political 1 31 subdivision, a private nonprofit educational institution in 1 32 this state, a nonprofit Iowa affiliate described in this 1 33 subsection, or a nonprofit private museum in this state if the 1 34 property becomes an integral part of the project under 1 35 contract and at the completion of the project becomes public 2 1 property, is devoted to educational uses, becomes part of a 2 2 low=income one=family or two=family dwelling in the state,or2 3 becomes a nonprofit private museum, or becomes a nonprofit 2 4 private performing arts center; except goods, wares, or 2 5 merchandise, or services furnished which are used in the 2 6 performance of any contract in connection with the operation 2 7 of any municipal utility engaged in selling gas, electricity, 2 8 or heat to the general public or in connection with the 2 9 operation of a municipal pay television system; and except 2 10 goods, wares, and merchandise used in the performance of a 2 11 contract for a "project" under chapter 419 as defined in that 2 12 chapter other than goods, wares, or merchandise used in the 2 13 performance of a contract for a "project" under chapter 419 2 14 for which a bond issue was approved by a municipality prior to 2 15 July 1, 1968, or for which the goods, wares, or merchandise 2 16 becomes an integral part of the project under contract and at 2 17 the completion of the project becomes public property or is 2 18 devoted to educational uses. 2 19 Sec. 3. RETROACTIVE APPLICABILITY. The section of this 2 20 Act amending section 423.4 applies retroactively to July 1, 2 21 2005, for construction contracts entered into on or after that 2 22 date. 2 23 EXPLANATION 2 24 This bill exempts from sales tax the sale of materials and 2 25 services provided that are used in the operation of a 2 26 nonprofit private performing arts center. The bill allows the 2 27 sales tax from construction materials and services used to 2 28 build a nonprofit private performing arts center to be 2 29 refunded upon application to the Iowa department of revenue. 2 30 The bill makes the refund provision retroactively applicable 2 31 to construction contracts entered into on or after July 1, 2 32 2005. 2 33 LSB 5160SS 82 2 34 ak/sc/5