SF 2323 (LSB 5984XS (2) 85)

SENATE FILE 2323

BY  DOTZLER

A BILL FOR

An Act exempting from the state sales tax the purchase price of tangible personal property sold and services furnished to a nonprofit food bank.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 423.3, Code 2014, is amended by adding the following new subsection:
   NEW SUBSECTION.  101.  The sales price from the sale or rental of tangible personal property, or services furnished, to a nonprofit food bank, which tangible personal property or services are to be used by the nonprofit food bank for a charitable purpose. For purposes of this subsection, “nonprofit food bank” means an organization organized under chapter 504 and qualifying under section 501(c)(3) of the Internal Revenue Code as an organization exempt from federal income tax under section 501(a) of the Internal Revenue Code that maintains an established operation involving the provision of food or edible commodities or the products thereof on a regular basis to persons in need or to food pantries, soup kitchens, hunger relief centers, or other food or feeding centers that, as an integral part of their normal activities, provide meals or food on a regular basis to persons in need.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill exempts from the sales tax the purchase price from the sale or rental of tangible personal property, or services furnished, to a nonprofit food bank if the property or services are to be used by the nonprofit food bank for a charitable purpose. “Nonprofit food bank” is 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.