SSB 3185 (LSB 5489XC (1) 84)

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 items to a substance abuse treatment provider.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 423.3, Code Supplement 2011, is amended by adding the following new subsection:
   NEW SUBSECTION.  96.
  a.  The sales price of materials, supplies, or equipment sold to a substance abuse treatment provider if such materials, supplies, or equipment shall be directly and primarily used by the substance abuse treatment provider in the treatment of substance abuse.
   b.  For purposes of this subsection:
   (1)  “Substance abuse” means the same as defined in section 125.2.
   (2)  “Substance abuse treatment provider” means any person maintaining or conducting any chemical substitutes or antagonists program, residential program, or nonresidential outpatient program, the primary purpose of which is the treatment and rehabilitation of substance abusers or substance abuse, which program is licensed by the Iowa department of public health under section 125.13, subsection 1, or which is exempt from licensure under section 125.13, subsection 2, or which is a state mental health institute designated under chapter 226 that provides substance abuse treatment.
EXPLANATION
   This bill provides a sales tax exemption for the sales price of materials, supplies, and equipment sold to a substance abuse treatment provider, as defined in the bill, if the materials, supplies, and equipment are directly and primarily used by the substance abuse treatment provider in the treatment of substance abuse.
   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.