Senate Study Bill 1182 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON FEENSTRA) A BILL FOR An Act exempting from the sales tax the sale of instructional 1 materials required for use in a course of instruction at a 2 public or private nonprofit educational institution in this 3 state. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 2651XC (2) 87 mm/rj
S.F. _____ Section 1. Section 423.3, Code 2017, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 103. a. The sales price from the sale of 3 instructional materials required for a course of instruction 4 at a public or private nonprofit educational institution in 5 this state, when purchased for use by a student enrolled in 6 such course of instruction at the public or private nonprofit 7 educational institution. 8 b. For purposes of this subsection: 9 (1) “Educational institution” means the same as defined in 10 section 423.3, subsection 17. 11 (2) “Instructional materials” means books, textbooks, and 12 other course materials, whether in printed form or another 13 tangible storage media. 14 EXPLANATION 15 The inclusion of this explanation does not constitute agreement with 16 the explanation’s substance by the members of the general assembly. 17 This bill provides a sales tax exemption for the sale of 18 instructional materials required for a course of instruction 19 at a public or private nonprofit educational institution in 20 this state, when purchased for use by a student enrolled in 21 such course of instruction at the public or private nonprofit 22 educational institution. “Educational institution” and 23 “instructional materials” are defined in the bill. 24 By operation of Code section 423.6, an item exempt from the 25 imposition of the sales tax is also exempt from the use tax 26 imposed in Code section 423.5. 27 -1- LSB 2651XC (2) 87 mm/rj 1/ 1