Senate
Study
Bill
1114
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
WAYS
AND
MEANS
BILL
BY
CHAIRPERSON
FEENSTRA)
A
BILL
FOR
An
Act
exempting
from
the
sales
tax
certain
items
and
services
1
sold
or
furnished
to
nonprofit
blood
centers,
including
2
effective
date
and
retroactive
applicability
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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Section
1.
Section
423.3,
subsection
26A,
Code
2019,
is
1
amended
to
read
as
follows:
2
26A.
The
sales
price
of
reagents
and
related
accessory
3
equipment
to
a
regional
blood
testing
facility
if
all
of
the
4
following
conditions
are
met:
5
a.
The
regional
blood
testing
facility
tangible
personal
6
property
directly
and
primarily
used
in
the
processes
of
7
testing
blood,
collecting
blood
donations,
or
producing
blood
8
products
sold
to
a
nonprofit
blood
center
that
is
registered
by
9
the
federal
food
and
drug
administration.
10
b.
The
regional
blood
testing
facility
performs
donor
11
testing
for
other
blood
centers.
12
c.
The
regional
blood
testing
facility
is
located
in
this
13
state
on
or
before
January
1,
2011.
14
Sec.
2.
Section
423.3,
subsection
104,
paragraph
b,
15
subparagraph
(1),
Code
2019,
is
amended
to
read
as
follows:
16
(1)
“Commercial
enterprise”
means
the
same
as
defined
in
17
section
423.3,
subsection
47
,
paragraph
“d”
,
subparagraph
(1),
18
but
also
includes
nonprofit
blood
centers,
professions
,
and
19
occupations.
20
Sec.
3.
REFUNDS.
Refunds
of
taxes,
interest,
or
penalties
21
that
arise
from
claims
resulting
from
the
enactment
of
22
this
Act,
for
sales
occurring
between
May
30,
2018,
and
the
23
effective
date
of
this
Act,
shall
not
be
allowed
unless
refund
24
claims
are
filed
prior
to
October
1,
2019,
notwithstanding
any
25
other
provision
of
law
to
the
contrary.
26
Sec.
4.
EFFECTIVE
DATE.
This
Act,
being
deemed
of
immediate
27
importance,
takes
effect
upon
enactment.
28
Sec.
5.
RETROACTIVE
APPLICABILITY.
This
Act
applies
29
retroactively
to
May
30,
2018.
30
EXPLANATION
31
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
32
the
explanation’s
substance
by
the
members
of
the
general
assembly.
33
This
bill
relates
to
exempting
from
the
sales
tax
certain
34
items
and
services
sold
or
furnished
to
a
nonprofit
blood
35
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_____
center.
1
The
bill
amends
Code
section
423.3(26A)
by
exempting
from
2
the
sales
tax
the
sales
price
of
tangible
personal
property
3
directly
and
primarily
used
in
the
processes
of
testing
blood,
4
collecting
blood
donations,
or
producing
blood
products
sold
5
to
a
nonprofit
blood
center
that
is
registered
by
the
federal
6
food
and
drug
administration.
The
bill
strikes
a
provision
7
exempting
the
sales
price
of
reagents
and
related
accessory
8
equipment
to
a
regional
blood
testing
facility
if
certain
9
conditions
are
met.
10
The
bill
expands
the
definition
of
“commercial
enterprise”
11
in
Code
section
423.3(104)
to
include
a
nonprofit
blood
center.
12
As
a
result,
the
sales
price
of
specified
digital
products,
13
prewritten
computer
software,
and
other
enumerated
digital
and
14
computer
services
furnished
to
a
nonprofit
blood
center
are
15
exempt
from
the
sales
tax,
if
exclusively
used
by
the
blood
16
center.
17
By
operation
of
Code
section
423.6,
an
item
exempt
from
the
18
imposition
of
the
sales
tax
is
also
exempt
from
the
use
tax
19
imposed
in
Code
section
423.5.
20
The
bill
permits
refunds
of
taxes,
interest,
or
penalties
21
arising
from
claims
resulting
from
the
enactment
of
the
bill
22
for
sales
occurring
between
May
30,
2018,
and
the
effective
23
date
of
the
bill,
and
requires
such
claims
to
be
filed
prior
to
24
October
1,
2019.
25
The
bill
takes
effect
upon
enactment
and
applies
26
retroactively
to
May
30,
2018.
27
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