Senate
File
174
-
Introduced
SENATE
FILE
174
BY
LYKAM
,
COURNOYER
,
KINNEY
,
KOELKER
,
QUIRMBACH
,
BOLKCOM
,
PETERSEN
,
RAGAN
,
J.
SMITH
,
WAHLS
,
BOULTON
,
DOTZLER
,
R.
TAYLOR
,
CELSI
,
and
DANIELSON
A
BILL
FOR
An
Act
relating
to
the
manufacturing
and
equipment
sales
and
1
use
tax
exemption,
and
including
effective
date
provisions.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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174
Section
1.
Section
423.3,
subsection
47,
paragraph
d,
1
subparagraph
(4),
Code
2019,
is
amended
to
read
as
follows:
2
(4)
(a)
“Manufacturer”
means
a
any
of
the
following:
3
(i)
A
business
that
primarily
purchases,
receives,
or
holds
4
personal
property
of
any
description
for
the
purpose
of
adding
5
to
its
value
by
a
process
of
manufacturing
with
a
view
to
6
selling
the
property
for
gain
or
profit.
7
(b)
“Manufacturer”
includes
8
(ii)
A
contract
manufacturers
manufacturer
.
A
contract
9
manufacturer
is
a
manufacturer
that
otherwise
falls
within
the
10
definition
of
manufacturer,
except
that
a
contract
manufacturer
11
does
not
sell
the
tangible
personal
property
the
contract
12
manufacturer
processes
on
behalf
of
other
manufacturers.
13
(iii)
A
nonprofit
blood
center.
14
(c)
(b)
“Manufacturer”
does
not
include
persons
who
are
not
15
commonly
understood
as
manufacturers,
including
but
not
limited
16
to
persons
engaged
in
any
of
the
following
activities:
17
(i)
Construction
contracting.
18
(ii)
Repairing
tangible
personal
property
or
real
property.
19
(iii)
Providing
health
care.
20
(iv)
Farming,
including
cultivating
agricultural
products
21
and
raising
livestock.
22
(v)
Transporting
for
hire.
23
(d)
(c)
For
purposes
of
this
subparagraph:
24
(i)
“Business”
means
those
businesses
conducted
for
25
profit,
but
excludes
professions
and
occupations
,
and
excludes
26
nonprofit
organizations
that
are
not
nonprofit
blood
centers
.
27
(ii)
“Manufacturing”
means
those
activities
commonly
28
understood
within
the
ordinary
meaning
of
the
term,
and
shall
29
include:
30
(A)
Refining.
31
(B)
Purifying.
32
(C)
Combining
of
different
materials.
33
(D)
Packing
of
meats.
34
(E)
Activities
subsequent
to
the
extractive
process
of
35
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174
quarrying
or
mining,
such
as
crushing,
washing,
sizing,
or
1
blending
of
aggregate
materials.
2
(iii)
“Manufacturing”
does
not
include
activities
occurring
3
on
premises
primarily
used
to
make
retail
sales.
4
Sec.
2.
EFFECTIVE
DATE.
This
Act,
being
deemed
of
immediate
5
importance,
takes
effect
upon
enactment.
6
EXPLANATION
7
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
8
the
explanation’s
substance
by
the
members
of
the
general
assembly.
9
This
bill
relates
to
the
manufacturing
and
equipment
sales
10
and
use
tax
exemption.
11
The
bill
amends
the
definition
of
“manufacturer”
and
12
“business”
in
Code
section
423.3(47)
to
include
a
nonprofit
13
blood
center.
As
a
result,
a
nonprofit
blood
center
is
14
eligible
for
the
manufacturing
and
equipment
sales
and
use
tax
15
exemption
for
sales
described
in
Code
section
423.3(47).
16
The
bill
takes
effect
upon
enactment.
17
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