Senate File 26 



                                       SENATE FILE       
                                       BY  ANGELO


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

                                      A BILL FOR

  1 An Act providing a sales tax exemption for operation of nonprofit
  2    private performing arts centers, providing a sales tax refund
  3    for construction of such centers, and including a retroactive
  4    applicability date.
  5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  6 TLSB 1579XS 82
  7 ak/je/5

PAG LIN



  1  1    Section 1.  Section 423.3, subsection 22, Code 2007, is
  1  2 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 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, or
  2  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 2006, 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 2006.
  2 33 LSB 1579XS 82
  2 34 ak:sc/je/5