Senate
Study
Bill
3185
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
WAYS
AND
MEANS
BILL
BY
CHAIRPERSON
BOLKCOM)
A
BILL
FOR
An
Act
providing
a
sales
tax
exemption
for
the
sale
of
certain
1
items
to
a
substance
abuse
treatment
provider.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
TLSB
5489XC
(1)
84
mm/sc
S.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
materials,
3
supplies,
or
equipment
sold
to
a
substance
abuse
treatment
4
provider
if
such
materials,
supplies,
or
equipment
shall
be
5
directly
and
primarily
used
by
the
substance
abuse
treatment
6
provider
in
the
treatment
of
substance
abuse.
7
b.
For
purposes
of
this
subsection:
8
(1)
“Substance
abuse”
means
the
same
as
defined
in
section
9
125.2.
10
(2)
“Substance
abuse
treatment
provider”
means
any
person
11
maintaining
or
conducting
any
chemical
substitutes
or
12
antagonists
program,
residential
program,
or
nonresidential
13
outpatient
program,
the
primary
purpose
of
which
is
the
14
treatment
and
rehabilitation
of
substance
abusers
or
substance
15
abuse,
which
program
is
licensed
by
the
Iowa
department
of
16
public
health
under
section
125.13,
subsection
1,
or
which
17
is
exempt
from
licensure
under
section
125.13,
subsection
2,
18
or
which
is
a
state
mental
health
institute
designated
under
19
chapter
226
that
provides
substance
abuse
treatment.
20
EXPLANATION
21
This
bill
provides
a
sales
tax
exemption
for
the
sales
price
22
of
materials,
supplies,
and
equipment
sold
to
a
substance
abuse
23
treatment
provider,
as
defined
in
the
bill,
if
the
materials,
24
supplies,
and
equipment
are
directly
and
primarily
used
by
25
the
substance
abuse
treatment
provider
in
the
treatment
of
26
substance
abuse.
27
By
operation
of
Code
section
423.6,
an
item
exempt
from
the
28
imposition
of
the
sales
tax
is
also
exempt
from
the
use
tax
29
imposed
in
Code
section
423.5.
30
-1-
LSB
5489XC
(1)
84
mm/sc
1/
1