House
File
56
-
Introduced
HOUSE
FILE
56
BY
PETTENGILL
,
DOLECHECK
,
HANUSA
,
HORBACH
,
MASSIE
,
HEATON
,
HUSEMAN
,
PAUSTIAN
,
HELLAND
,
LOFGREN
,
SCHULTZ
,
DE
BOEF
,
and
J.
TAYLOR
A
BILL
FOR
An
Act
exempting
certain
sales
by
qualified
organizations
1
representing
veterans
from
sales
tax.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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56
Section
1.
Section
423.2,
subsection
4,
paragraph
b,
Code
1
2011,
is
amended
to
read
as
follows:
2
b.
The
tax
imposed
under
this
subsection
covers
the
total
3
amount
from
the
operation
of
games
of
skill,
games
of
chance,
4
raffles,
and
bingo
games
as
defined
in
chapter
99B
,
card
5
game
tournaments
conducted
under
section
99B.7B
,
and
musical
6
devices,
weighing
machines,
shooting
galleries,
billiard
and
7
pool
tables,
bowling
alleys,
pinball
machines,
slot-operated
8
devices
selling
merchandise
not
subject
to
the
general
sales
9
taxes
and
on
the
total
amount
from
devices
or
systems
where
10
prizes
are
in
any
manner
awarded
to
patrons
and
upon
the
11
receipts
from
fees
charged
for
participation
in
any
game
or
12
other
form
of
amusement,
and
generally
upon
the
sales
price
13
from
any
source
of
amusement
operated
for
profit,
not
specified
14
in
this
section
,
and
upon
the
sales
price
from
which
tax
is
15
not
collected
for
tickets
or
admission,
but
tax
shall
not
be
16
imposed
upon
any
activity
exempt
from
sales
tax
under
section
17
423.3,
subsection
78
or
78A
.
Every
person
receiving
any
sales
18
price
from
the
sources
described
in
this
section
is
subject
to
19
all
provisions
of
this
subchapter
relating
to
retail
sales
tax
20
and
other
provisions
of
this
chapter
as
applicable.
21
Sec.
2.
Section
423.3,
Code
2011,
is
amended
by
adding
the
22
following
new
subsection:
23
NEW
SUBSECTION
.
78A.
a.
The
sales
price
from
sales
or
24
rental
of
tangible
personal
property,
or
services
rendered,
25
by
a
qualified
organization
representing
veterans
where
the
26
profits
from
the
sales
or
rental
of
the
tangible
personal
27
property
or
services
rendered
are
used
for
the
benefit
of
the
28
same
qualified
organization
representing
veterans.
29
b.
This
exemption
applies
to
the
sales
price
from
games
of
30
skill,
games
of
chance,
raffles,
and
bingo
games,
as
defined
in
31
chapter
99B,
but
only
to
the
extent
the
profits
from
the
sales,
32
rental,
or
services
are
used
by
or
donated
to
the
qualified
33
organization
representing
veterans.
34
c.
For
the
purposes
of
this
subsection,
“qualified
35
-1-
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56
organization
representing
veterans”
means
any
licensed
1
organization
representing
veterans
that
is
a
post,
branch,
2
or
chapter
of
a
national
association
of
veterans
of
the
3
armed
forces
of
the
United
States,
is
a
federally
chartered
4
corporation,
is
exempt
from
federal
income
taxes
under
section
5
501(c)(19)
of
the
Internal
Revenue
Code
as
defined
in
section
6
422.3,
has
an
active
membership
of
not
less
than
twelve
7
persons,
and
does
not
have
a
self-perpetuating
governing
body
8
and
officers.
9
EXPLANATION
10
This
bill
exempts
sales
by
veterans
organizations
from
11
state
sales
tax.
The
bill
also
provides
that
the
6
percent
12
tax
on
games
of
skill,
games
of
chance,
raffles,
and
bingo
13
games
is
exempted
when
the
games
are
operated
by
a
qualified
14
organization
representing
veterans
and
the
money
from
the
games
15
is
donated
to
the
veterans
organization.
16
The
definition
of
a
“qualified
organization
representing
17
veterans”
is
a
licensed
organization
that
is
a
post,
branch,
18
or
chapter
of
a
national
association
of
veterans
of
the
United
19
States
armed
forces,
is
a
federally
chartered
corporation,
20
is
exempt
from
federal
income
taxes,
has
more
than
12
active
21
members,
and
does
not
have
a
self-perpetuating
governing
body
22
and
officers.
23
By
operation
of
Code
section
423.6,
an
item
exempt
from
the
24
imposition
of
the
sales
tax
is
also
exempt
from
the
use
tax
25
imposed
in
Code
section
423.5.
26
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