House Study Bill 662 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON SANDS) A BILL FOR An Act providing a sales tax exemption for sales of textbooks 1 for limited time periods annually and including effective 2 date provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 6093YC (2) 84 mm/sc
H.F. _____ Section 1. Section 423.3, Code Supplement 2011, is amended 1 by adding the following new subsection: 2 NEW SUBSECTION . 96. a. The sales price of new and used 3 textbooks for use in attending a postsecondary educational 4 institution if the sale takes place during either of the 5 following periods: 6 (1) The period beginning at 12:01 a.m. on the first Friday 7 in August and ending at midnight on the following Saturday. 8 (2) The period beginning at 12:01 a.m. on the first Friday 9 in January and ending at midnight on the following Saturday. 10 b. For purposes of this subsection: 11 (1) “Postsecondary educational institution” means an 12 accredited higher education institution as defined in section 13 261.92, an Iowa community college, a postsecondary educational 14 institution under the control of the state board of regents, a 15 school of cosmetology arts and sciences licensed under chapter 16 157, or a barber school licensed under chapter 158. 17 (2) “Textbooks” means books and other printed materials used 18 in attending a postsecondary educational institution in this 19 state. 20 c. Postsecondary educational institutions are required 21 to provide the titles of required and recommended textbooks 22 for all courses and the corresponding authors, publishers, 23 and international standard book numbers for such textbooks on 24 the postsecondary educational institution’s internet site for 25 access to all booksellers and all students. The state board 26 of regents shall designate the format by which the textbook 27 information shall be provided. 28 d. In order to receive the sales tax exemption, a person is 29 required to show a current official identification card from a 30 postsecondary educational institution and either the purchaser 31 or the bookseller must show that a textbook intended to be 32 purchased is on a list of textbooks provided by a postsecondary 33 educational institution under paragraph “c” . 34 Sec. 2. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 35 -1- LSB 6093YC (2) 84 mm/sc 1/ 2
H.F. _____ immediate importance, takes effect upon enactment. 1 EXPLANATION 2 This bill provides an annual limited-time sales tax 3 exemption for textbooks used in attending a public or private 4 Iowa postsecondary educational institution, including licensed 5 cosmetology and barber schools. “Textbooks” is defined as 6 books and other printed materials. 7 Postsecondary educational institutions are required to 8 provide the titles of textbooks for all courses and the 9 authors, publishers, and corresponding international standard 10 book numbers for the textbooks on the institution’s internet 11 site in order for all booksellers and students to have access 12 to the information. The state board of regents is required to 13 provide the format in which the textbook information must be 14 provided. 15 In order to qualify for the exemption, the textbook sale must 16 take place during either of the periods beginning at 12:01 a.m. 17 on the first Friday in January or August and ending at midnight 18 on the following Saturday, and a person must show a current 19 official identification card from a postsecondary educational 20 institution and either the purchaser or the bookseller must 21 show that the textbook intended to be purchased is on an 22 institution’s textbooks list. 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 The bill takes effect upon enactment. 27 -2- LSB 6093YC (2) 84 mm/sc 2/ 2