HOUSE FILE 632

BY  SANDS

A BILL FOR

An Act providing a sales tax exemption for substance abuse treatment programs.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

   Section 1.  Section 423.3, Code 2011, is amended by adding the following new subsection:
   NEW SUBSECTION.  96.  The sales price of a substance abuse treatment program.  For purposes of this subsection,“substance abuse” means the same as defined in section 125.2.
EXPLANATION
   This bill provides a sales tax exemption for the sales price of a substance abuse treatment program.
   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.