House File 484 - Introduced HOUSE FILE 484 BY KELLEY A BILL FOR An Act relating to a sales tax holiday for instructional 1 materials sold to college students. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 2493YH (1) 86 mm/sc
H.F. 484 Section 1. Section 423.3, Code 2015, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 68A. a. The sales price of instructional 3 materials sold to students for classroom use at a postsecondary 4 educational institution, or for use in an extracurricular 5 activity sponsored by the postsecondary educational 6 institution, if all of the following apply: 7 (1) The sale is made to a person who is a student at a 8 postsecondary educational institution in this state and who has 9 verified that status to the retailer. 10 (2) The instructional materials have been uniquely 11 identified and certified to a retailer by a postsecondary 12 educational institution as required for classroom use or for 13 use in a sponsored extracurricular activity. 14 (3) The sale takes place during one of the following: 15 (a) The period beginning at 12:01 a.m. on the third Monday 16 in August and ending at midnight on the following Tuesday. 17 (b) The period beginning at 12:01 a.m. on the third Monday 18 in January and ending at midnight on the following Tuesday. 19 b. For purposes of this subsection: 20 (1) “Extracurricular activity” includes a sporting event, 21 musical or dramatic event, speech activity, or programs of a 22 similar nature. 23 (2) “Instructional materials” means books, textbooks, 24 printed materials, and equipment required for classroom use 25 in attending a postsecondary educational institution in this 26 state, or required for use in an extracurricular activity 27 sponsored by a postsecondary educational institution in this 28 state. “Instructional materials” does not include books, 29 textbooks, printed materials, or equipment used in the teaching 30 of religious tenets, doctrines, or worship, the purpose of 31 which is to inculcate those tenets, doctrines, or worship. 32 (3) “Postsecondary educational institution” means an 33 accredited higher education institution, as defined in 34 section 261.92, an Iowa community college, or a postsecondary 35 -1- LSB 2493YH (1) 86 mm/sc 1/ 2
H.F. 484 educational institution under the control of the state board 1 of regents. 2 c. The department shall adopt rules pursuant to chapter 17A 3 to administer this section, including but not limited to rules 4 to establish the manner by which a person shall verify to a 5 retailer the person’s status as a student, and the manner by 6 which a postsecondary educational institution shall identify 7 and certify required instructional materials to a retailer. 8 EXPLANATION 9 The inclusion of this explanation does not constitute agreement with 10 the explanation’s substance by the members of the general assembly. 11 This bill provides a sales tax exemption for a limited 12 time period for the sales price of instructional materials to 13 students at postsecondary educational institutions in this 14 state if the instructional materials are required for classroom 15 use or for use in an extracurricular activity sponsored by 16 the postsecondary educational institution. The exemption is 17 available to sales in which the student verifies his or her 18 status as a student to the retailer, the items being sold 19 have been uniquely identified and certified to the retailer 20 as required for classroom use or for use in a sponsored 21 extracurricular activity, and the sale takes place during the 22 calendar day on the third Monday in January or August. 23 “Extracurricular activity”, “instructional materials”, and 24 “postsecondary educational institution” are all defined in the 25 bill. 26 By operation of Code section 423.6, an item exempt from the 27 imposition of the sales tax is also exempt from the use tax 28 imposed in Code section 423.5. 29 -2- LSB 2493YH (1) 86 mm/sc 2/ 2