Senate Study Bill 1114 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON EDUCATION BILL BY CHAIRPERSON QUIRMBACH) A BILL FOR An Act providing a sales tax exemption for textbooks used in 1 attending a postsecondary educational institution. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1701XC (3) 84 tw/sc

S.F. _____ Section 1. Section 423.3, Code 2011, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 96. a. The sales price of new and 3 used textbooks if the textbooks are for use in attending a 4 postsecondary educational institution. 5 b. For purposes of this subsection: 6 (1) “Postsecondary educational institution” means an 7 accredited higher education institution, as defined in section 8 261.92, an Iowa community college, a postsecondary educational 9 institution under the control of the state board of regents, a 10 school of cosmetology arts and sciences licensed under chapter 11 157, or a barber school licensed under chapter 158. 12 (2) “Textbooks” means books and other printed materials used 13 in attending a postsecondary educational institution in this 14 state. 15 c. Postsecondary educational institutions are required 16 to provide the titles of required and recommended textbooks 17 for all courses and the corresponding authors, publishers, 18 and international standard book numbers for such textbooks on 19 the postsecondary educational institution’s internet site for 20 access to all booksellers and all students. The department 21 of education shall designate the format by which the textbook 22 information shall be provided. 23 d. In order to receive the sales tax exemption, a person 24 is required to show a current official identification card 25 from a postsecondary educational institution and either the 26 purchaser or the bookseller must show that the textbooks 27 intended to be purchased are on a list of textbooks provided by 28 a postsecondary educational institution under paragraph “c” . 29 EXPLANATION 30 This bill provides a sales tax exemption for textbooks used 31 in attending a public or private Iowa postsecondary educational 32 institution, including licensed cosmetology and barber schools. 33 “Textbooks” is defined as books and other printed materials. 34 Postsecondary educational institutions are required to 35 -1- LSB 1701XC (3) 84 tw/sc 1/ 2

S.F. _____ provide the titles of textbooks for all courses and the 1 authors, publishers, and corresponding international standard 2 book numbers for the textbooks on the institution’s internet 3 site in order for all booksellers and students to have access 4 to the information. The department of education is required 5 to provide the format in which the textbook information must 6 be provided. 7 In order to receive the sales tax exemption, a person 8 must show a current official identification card from a 9 postsecondary educational institution and either the purchaser 10 or the bookseller must show that the textbooks intended to be 11 purchased are on an institution’s textbooks list. 12 By operation of Code section 423.6, an item exempt from the 13 imposition of the sales tax is also exempt from the use tax 14 imposed in Code section 423.5. 15 -2- LSB 1701XC (3) 84 tw/sc 2/ 2