House File 42 - Introduced HOUSE FILE 42 BY SALMON 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. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1076YH (3) 88 jm/jh

H.F. 42 Section 1. Section 423.3, Code 2019, 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 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 sales price of 11 chemicals, solvents, sorbents, or reagents sold, or test 12 laboratory services furnished, to a nonprofit human blood 13 collection and processing establishment that meets the 14 definition of establishment in 21 C.F.R. §607.3(c). That 15 federal regulation defines “establishment” to mean a place of 16 business under one management at one general physical location. 17 The term includes, among others, human blood and plasma donor 18 centers, blood banks, transfusion services, other blood product 19 manufacturers, and independent laboratories that engage in 20 quality control and testing for registered blood product 21 establishments. 22 By operation of Code section 423.6, an item exempt from the 23 imposition of the sales tax is also exempt from the use tax 24 imposed in Code section 423.5. 25 -1- LSB 1076YH (3) 88 jm/jh 1/ 1