House Study Bill 683 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON VANDER LINDEN) A BILL FOR An Act excluding entities under the control of an institution 1 of higher learning governed by the state board of regents 2 from the sales tax exemption for sales where the profits 3 are used by or donated to certain nonprofit entities for 4 educational, religious, or charitable purposes. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 6232YC (3) 87 mm/jh

H.F. _____ Section 1. Section 423.3, subsection 78, Code 2018, is 1 amended by adding the following new paragraph: 2 NEW PARAGRAPH . d. This exemption does not apply to the 3 sales price from the sale of tangible personal property or 4 services the profits from which are used by or donated to an 5 entity under the control of an institution of higher learning 6 governed by the state board of regents. 7 EXPLANATION 8 The inclusion of this explanation does not constitute agreement with 9 the explanation’s substance by the members of the general assembly. 10 Under current law, Code section 423.3(78) provides a 11 sales tax exemption for sales of tangible personal property 12 or services by any entity where the profits from the sale 13 are used by or donated to a tax-exempt Internal Revenue Code 14 §501(c)(3) nonprofit organization, to a government entity, or 15 to a nonprofit private educational institution, and expended 16 for educational, religious, or charitable purposes. 17 This bill provides that the exemption in Code section 18 423.3(78) does not apply to sales for which the profits 19 are used by or donated to an entity under the control of an 20 institution of higher learning governed by the state board of 21 regents. 22 -1- LSB 6232YC (3) 87 mm/jh 1/ 1