HF 125 (LSB 1347YH (3) 85)

HOUSE FILE 125

BY  PETTENGILL, HEIN, HESS, KOESTER, STANERSON, and ALONS

A BILL FOR

An Act providing a sales tax exemption for textbooks used in attending a postsecondary educational institution.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 423.3, Code 2013, is amended by adding the following new subsection:
   NEW SUBSECTION.  99.
  a.  The sales price of new and used textbooks if the textbooks are for use in attending a postsecondary educational institution.
   b.  For purposes of this subsection:
   (1)  “Textbooks” means books and other instructional materials and equipment used in attending a postsecondary educational institution in this state, including books and materials for extracurricular activities, which include sporting events, musical or dramatic events, speech activities, or programs of a similar nature. “Textbooks” does not include instructional books and materials used in the teaching of religious tenets, doctrines, or worship, the purpose of which is to inculcate those tenets, doctrines, or worship.
   (2)  “Postsecondary educational institution” means an accredited private institution, as defined in section 261.9, an Iowa community college, or an institution of higher education governed by the state board of regents.
   c.  Postsecondary educational institutions are required to provide a list of required and suggested textbooks for all courses and the corresponding international standard book numbers for such textbooks at least fourteen days, or as soon as practicable, before the start of each semester or term, at the locations where textbooks are sold on campus and on the internet site for the respective postsecondary educational institution.
   d.  In order to receive the sales tax exemption, a person is required to show a current official identification card from a postsecondary educational institution and show that the textbooks intended to be purchased are on the list of textbooks provided by the postsecondary educational institution under paragraph “c”.
EXPLANATION
   This bill provides a sales tax exemption for textbooks used in attending a public or accredited private Iowa postsecondary educational institution. “Textbooks” are defined as books and other instructional materials and equipment, including books and materials for extracurricular activities, but does not include instructional books and materials used for teaching religious tenets, doctrines, or worship if the purpose is to inculcate those tenets, doctrines, or worship.
   Postsecondary educational institutions are required to provide a list of textbooks for all courses and the corresponding international standard book numbers for the textbooks at least 14 days, or as soon as practicable, before the start of each semester or term, where textbooks are sold on campus and on the institution’s internet site.
   In order to receive the sales tax exemption, a person must show a current official identification card from a postsecondary educational institution and show that the textbooks intended to be purchased are on the institution’s textbooks list.
   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.