HOUSE FILE 2100

BY  KRESSIG

A BILL FOR

An Act providing a sales tax exemption for textbooks used in attending a postsecondary educational institution.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 423.3, Code Supplement 2011, is amended by adding the following new subsection:
   NEW SUBSECTION.  96.
  a.  The sales price of new and used textbooks if the textbooks are for use in attending a postsecondary educational institution.
   b.  For purposes of this subsection:
   (1)  “Postsecondary educational institution” means an accredited higher education institution as defined in section 261.92, an Iowa community college, a postsecondary educational institution under the control of the state board of regents, a school of cosmetology arts and sciences licensed under chapter 157, or a barber school licensed under chapter 158.
   (2)  “Textbooks” means books and other printed materials used in attending a postsecondary educational institution in this state.
   c.  Postsecondary educational institutions are required to provide the titles of required and recommended textbooks for all courses and the corresponding authors, publishers, and international standard book numbers for such textbooks on the postsecondary educational institution’s internet site for access to all booksellers and all students. The state board of regents shall designate the format by which the textbook information shall be provided.
   d.  In order to receive the sales tax exemption, a person is required to show a current official identification card from a postsecondary educational institution and either the purchaser or the bookseller must show that a textbook intended to be purchased is on a list of textbooks provided by a postsecondary educational institution under paragraph “c”.
EXPLANATION
   This bill provides a sales tax exemption for textbooks used in attending a public or private Iowa postsecondary educational institution, including licensed cosmetology and barber schools. “Textbooks” is defined as books and other printed materials.
   Postsecondary educational institutions are required to provide the titles of textbooks for all courses and the authors, publishers, and corresponding international standard book numbers for the textbooks on the institution’s internet site in order for all booksellers and students to have access to the information. The state board of regents is required to provide the format in which the textbook information must be provided.
   In order to receive the sales tax exemption, a person must show a current official identification card from a postsecondary educational institution and either the purchaser or the bookseller must show that the textbook intended to be purchased is on an institution’s textbooks list.
   By operation of Code section 423.6, an item exempt from the imposition of the sales tax is also exempt from the use tax imposed in Code section 423.5.