House File 142 - Introduced
HOUSE FILE
BY PETTENGILL, LUKAN, S. OLSON,
DE BOEF, UPMEYER, STRUYK,
ALONS, HORBACH, DRAKE, DEYOE,
and PAULSEN
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act exempting certain sales by qualified organizations
2 representing veterans from sales tax.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
4 TLSB 1640HH 83
5 ak/sc/5
PAG LIN
1 1 Section 1. Section 423.2, subsection 4, paragraph b, Code
1 2 2009, is amended to read as follows:
1 3 b. The tax imposed under this subsection covers the total
1 4 amount from the operation of games of skill, games of chance,
1 5 raffles, and bingo games as defined in chapter 99B, card game
1 6 tournaments conducted under section 99B.7B, and musical
1 7 devices, weighing machines, shooting galleries, billiard and
1 8 pool tables, bowling alleys, pinball machines, slot=operated
1 9 devices selling merchandise not subject to the general sales
1 10 taxes and on the total amount from devices or systems where
1 11 prizes are in any manner awarded to patrons and upon the
1 12 receipts from fees charged for participation in any game or
1 13 other form of amusement, and generally upon the sales price
1 14 from any source of amusement operated for profit, not
1 15 specified in this section, and upon the sales price from which
1 16 tax is not collected for tickets or admission, but tax shall
1 17 not be imposed upon any activity exempt from sales tax under
1 18 section 423.3, subsection 78 or 78A. Every person receiving
1 19 any sales price from the sources described in this section is
1 20 subject to all provisions of this subchapter relating to
1 21 retail sales tax and other provisions of this chapter as
1 22 applicable.
1 23 Sec. 2. Section 423.3, Code 2009, is amended by adding the
1 24 following new subsection:
1 25 NEW SUBSECTION. 78A. a. The sales price from sales or
1 26 rental of tangible personal property, or services rendered, by
1 27 a qualified organization representing veterans where the
1 28 profits from the sales or rental of the tangible personal
1 29 property or services rendered are used for the benefit of the
1 30 same qualified organization representing veterans.
1 31 b. This exemption applies to the sales price from games of
1 32 skill, games of chance, raffles, and bingo games as defined in
1 33 chapter 99B, but only to the extent the profits from the
1 34 sales, rental, or services are used by or donated to the
1 35 qualified organization representing veterans.
2 1 c. For the purposes of this subsection, "qualified
2 2 organization representing veterans" means any licensed
2 3 organization representing veterans that is a post, branch, or
2 4 chapter of a national association of veterans of the armed
2 5 forces of the United States, is a federally chartered
2 6 corporation, is exempt from federal income taxes under section
2 7 501(c)(19) of the Internal Revenue Code as defined in section
2 8 422.3, has an active membership of not less than twelve
2 9 persons, and does not have a self=perpetuating governing body
2 10 and officers.
2 11 EXPLANATION
2 12 This bill exempts sales by veterans organizations from
2 13 state sales tax. The bill also provides that the 6 percent
2 14 tax on games of skill, games of chance, raffles, and bingo
2 15 games is exempted when the games are operated by a qualified
2 16 organization representing veterans and the money from the
2 17 games is donated to the veterans organization.
2 18 The definition of a "qualified organization representing
2 19 veterans" is a licensed organization that is a post, branch,
2 20 or chapter of a national association of veterans of the United
2 21 States armed forces, is a federally chartered corporation, is
2 22 exempt from federal income taxes, has more than 12 active
2 23 members, and does not have a self=perpetuating governing body
2 24 and officers.
2 25 LSB 1640HH 83
2 26 ak/sc/5