Senate Study Bill 1239 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON BOLKCOM) A BILL FOR An Act relating to an exemption from sales tax for the sales 1 price from furnishing certain environmental testing 2 services. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2200XC (1) 85 mm/sc

S.F. _____ Section 1. Section 423.2, subsection 6, paragraph a, Code 1 2013, is amended to read as follows: 2 a. The sales price of any of the following enumerated 3 services is subject to the tax imposed by subsection 4 5 : alteration and garment repair; armored car; vehicle 5 repair; battery, tire, and allied; investment counseling; 6 service charges of all financial institutions; barber and 7 beauty; boat repair; vehicle wash and wax; campgrounds; 8 carpentry; roof, shingle, and glass repair; dance schools 9 and dance studios; dating services; dry cleaning, pressing, 10 dyeing, and laundering; electrical and electronic repair 11 and installation; excavating and grading; farm implement 12 repair of all kinds; flying service; furniture, rug, carpet, 13 and upholstery repair and cleaning; fur storage and repair; 14 golf and country clubs and all commercial recreation; gun 15 and camera repair; house and building moving; household 16 appliance, television, and radio repair; janitorial and 17 building maintenance or cleaning; jewelry and watch repair; 18 lawn care, landscaping, and tree trimming and removal; 19 limousine service, including driver; machine operator; machine 20 repair of all kinds; motor repair; motorcycle, scooter, and 21 bicycle repair; oilers and lubricators; office and business 22 machine repair; painting, papering, and interior decorating; 23 parking facilities; pay television; pet grooming; pipe 24 fitting and plumbing; wood preparation; executive search 25 agencies; private employment agencies, excluding services 26 for placing a person in employment where the principal place 27 of employment of that person is to be located outside of the 28 state; reflexology; security and detective services; sewage 29 services for nonresidential commercial operations; sewing 30 and stitching; shoe repair and shoeshine; sign construction 31 and installation; storage of household goods, mini-storage, 32 and warehousing of raw agricultural products; swimming pool 33 cleaning and maintenance; tanning beds or salons; taxidermy 34 services; telephone answering service; test laboratories, 35 -1- LSB 2200XC (1) 85 mm/sc 1/ 2

S.F. _____ including mobile testing laboratories and field testing by 1 testing laboratories, and excluding tests on humans or animals 2 and excluding environmental testing services ; termite, bug, 3 roach, and pest eradicators; tin and sheet metal repair; 4 transportation service consisting of the rental of recreational 5 vehicles or recreational boats, or the rental of motor vehicles 6 subject to registration which are registered for a gross 7 weight of thirteen tons or less for a period of sixty days or 8 less, or the rental of aircraft for a period of sixty days or 9 less; Turkish baths, massage, and reducing salons, excluding 10 services provided by massage therapists licensed under chapter 11 152C ; water conditioning and softening; weighing; welding; 12 well drilling; wrapping, packing, and packaging of merchandise 13 other than processed meat, fish, fowl, and vegetables; wrecking 14 service; wrecker and towing. 15 Sec. 2. Section 423.3, Code 2013, is amended by adding the 16 following new subsection: 17 NEW SUBSECTION . 99. The sales price from the furnishing 18 of environmental testing services performed at a laboratory, 19 in the field, or by a mobile testing service. For purposes 20 of this subsection, “environmental testing” means the physical 21 or chemical analysis of soil, water, wastewater, air, or 22 solid waste performed in order to ascertain the presence of 23 environmental contamination or degradation. 24 EXPLANATION 25 This bill provides a sales tax exemption for the furnishing 26 of environmental testing services performed at a laboratory, 27 in the field, or by a mobile testing service. “Environmental 28 testing” means the physical or chemical analysis of soil, 29 water, wastewater, air, or solid waste performed in order 30 to ascertain the presence of environmental contamination or 31 degradation. 32 By operation of Code section 423.6, an item exempt from the 33 imposition of the sales tax is also exempt from the use tax 34 imposed in Code section 423.5. 35 -2- LSB 2200XC (1) 85 mm/sc 2/ 2