HF 2153 (LSB 5370YH (4) 83)

HOUSE FILE 2153

BY  HELLAND

A BILL FOR

An Act exempting from sales tax charges paid for membership in a physical exercise club.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 423.3, Code Supplement 2009, is amended by adding the following new subsection:
   NEW SUBSECTION.  96.  The sales price of charges paid for membership in a physical exercise club. For the purposes of this subsection, “charges paid for membership” means “contract price” as defined in section 552.1, and “physical exercise club” means as defined in section 552.1.
EXPLANATION
   This bill creates a sales tax exemption for the price of a membership to a physical exercise club or to use the services or facilities of a physical exercise club. The sales tax exemption applies to the contract price paid as defined in Code section 552.1, which includes service charges or membership fees. A physical exercise club, as defined in Code section 552.1, includes a facility offering services for the preservation, maintenance, encouragement, or development of physical fitness or well-being.