HSB 180 (LSB 2270HC (5) 85)

HOUSE FILE _____

BY  (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON SANDS)

A BILL FOR

An Act providing a sales tax exemption for hydroelectricity conversion property.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 423.3, subsection 54, Code 2013, is amended to read as follows:
   54.
  a.  The sales price from the sale of wind energy conversion property
 
or hydroelectricity conversion property to be used as an electric power source and the sale of the materials used to manufacture, install, or construct wind energy conversion property
 
or hydroelectricity conversion property used or to be used as an electric power source.
   b.  For purposes of this subsection, “wind:
   (1)  “Wind energy conversion property” means any device, including but not limited to a wind charger, windmill, wind turbine, tower and electrical equipment, pad mount transformers, power lines, and substation, which converts wind energy to a form of usable energy.
   (2)  “Hydroelectricity conversion property” means any device, including but not limited to a generator, turbine, powerhouse, intake, coffer dam, walls, water conduit, tailrace, any other concrete components, electrical equipment substation, poles, wires, transformers, breakers, and switches used to convert water, water power, or hydroelectricity to a form of usable energy.
EXPLANATION
   This bill exempts hydroelectricity conversion property from sales tax.
   Currently, Code section 423.3, subsection 54, provides a sales tax exemption for the sales price of wind energy conversion property to be used as an electric power source and the sale of the materials used to manufacture, install, or construct wind energy conversion property used or to be used as an electric power source. The bill makes this provision equally applicable to hydroelectricity conversion property, as defined in the bill.
   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.