House File 416 - Introduced HOUSE FILE 416 BY OLSON A BILL FOR An Act exempting from the sales and use tax the sale or rental 1 price of gardening materials and supplies used in an urban 2 area. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2215YH (2) 88 jm/jh
H.F. 416 Section 1. Section 423.3, Code 2019, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 107. The sales price from the sale or 3 rental of gardening supplies, implements, or seeds when used 4 for the cultivation of food in an urban area. For purposes of 5 this subsection, “urban area” means the area within the city 6 limits of a city. 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 This bill exempts from the sales tax the purchase price from 11 the sale or rental of garden supplies, implements, or seeds 12 when used for the cultivation of food in an urban area. The 13 bill defines “urban area” to mean the area within the city 14 limits of a city. 15 By operation of Code section 423.6, an item exempt from 16 imposition of the sales tax is also exempt from the use tax 17 imposed in Code section 423.5. 18 -1- LSB 2215YH (2) 88 jm/jh 1/ 1