Senate File 2033 - Introduced SENATE FILE 2033 BY RAGAN A BILL FOR An Act exempting from the sales tax certain items and services 1 sold to a nonprofit human blood collection and processing 2 establishment, including effective date and retroactive 3 applicability provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5210XS (2) 86 mm/sc
S.F. 2033 Section 1. Section 423.3, Code 2016, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 44. The sales price of chemicals, solvents, 3 sorbents, or reagents sold, or test laboratory services 4 furnished, to a nonprofit human blood collection and processing 5 establishment that meets the definition of establishment in 21 6 C.F.R. §607.3(c). 7 Sec. 2. REFUNDS. Refunds of taxes, interest, or penalties 8 that arise from claims resulting from the enactment of 9 this Act, for sales occurring between July 1, 2005, and 10 the effective date of this Act, shall not be allowed, 11 notwithstanding any other provision of law to the contrary. 12 Sec. 3. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 13 immediate importance, takes effect upon enactment. 14 Sec. 4. RETROACTIVE APPLICABILITY. This Act applies 15 retroactively to July 1, 2005. 16 EXPLANATION 17 The inclusion of this explanation does not constitute agreement with 18 the explanation’s substance by the members of the general assembly. 19 This bill exempts from the sales tax the sales price of 20 chemicals, sorbents, or reagents sold, or test laboratory 21 services furnished, to a nonprofit human blood collection 22 and processing establishment that meets the definition of 23 establishment in 21 C.F.R. §607.3(c). That federal regulation 24 defines “establishment” to mean a place of business under 25 one management at one general physical location. The term 26 includes, among others, human blood and plasma donor centers, 27 blood banks, transfusion services, other blood product 28 manufacturers, and independent laboratories that engage in 29 quality control and testing for registered blood product 30 establishments. 31 By operation of Code section 423.6, an item exempt from the 32 imposition of the sales tax is also exempt from the use tax 33 imposed in Code section 423.5. 34 The bill prohibits refunds of taxes, interest, or penalties 35 -1- LSB 5210XS (2) 86 mm/sc 1/ 2
S.F. 2033 arising from claims resulting from the enactment of the bill 1 for sales occurring between July 1, 2005, and the effective 2 date of the bill. 3 The bill takes effect upon enactment and applies 4 retroactively to July 1, 2005. 5 -2- LSB 5210XS (2) 86 mm/sc 2/ 2