House File 2153 - Introduced HOUSE FILE 2153 BY HELLAND A BILL FOR An Act exempting from sales tax charges paid for membership in 1 a physical exercise club. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5370YH (4) 83 ak/sc

H.F. 2153 Section 1. Section 423.3, Code Supplement 2009, is amended 1 by adding the following new subsection: 2 NEW SUBSECTION . 96. The sales price of charges paid for 3 membership in a physical exercise club. For the purposes of 4 this subsection, “charges paid for membership” means “contract 5 price” as defined in section 552.1, and “physical exercise club” 6 means as defined in section 552.1. 7 EXPLANATION 8 This bill creates a sales tax exemption for the price 9 of a membership to a physical exercise club or to use the 10 services or facilities of a physical exercise club. The sales 11 tax exemption applies to the contract price paid as defined 12 in Code section 552.1, which includes service charges or 13 membership fees. A physical exercise club, as defined in Code 14 section 552.1, includes a facility offering services for the 15 preservation, maintenance, encouragement, or development of 16 physical fitness or well-being. 17 -1- LSB 5370YH (4) 83 ak/sc 1/ 1