Senate
Study
Bill
3197
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
WAYS
AND
MEANS
BILL
BY
CHAIRPERSON
CHAPMAN)
A
BILL
FOR
An
Act
exempting
the
sales
price
of
tangible
personal
property
1
or
specified
digital
products
sold,
or
services
furnished,
2
to
a
nonprofit
hospital,
and
including
effective
date
and
3
retroactive
applicability
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
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S.F.
_____
Section
1.
Section
423.3,
subsection
27,
Code
2020,
is
1
amended
to
read
as
follows:
2
27.
The
sales
price
of
tangible
personal
property
or
3
specified
digital
products
sold,
or
of
services
furnished,
to
4
a
nonprofit
hospital
licensed
pursuant
to
chapter
135B
to
be
5
used
in
the
operation
of
the
hospital.
For
purposes
of
this
6
subsection,
“nonprofit
hospital
licensed
pursuant
to
chapter
7
135B”
includes
a
group
of
qualifying
organizations
acting
in
8
concert.
9
Sec.
2.
REFUNDS.
Refunds
of
taxes,
interest,
or
penalties
10
that
arise
from
claims
resulting
from
the
enactment
of
this
11
Act,
for
sales
occurring
between
January
1,
2013,
and
the
12
effective
date
of
this
Act,
shall
not
be
allowed
unless
refund
13
claims
are
filed
prior
to
October
1,
2020,
notwithstanding
any
14
other
provision
of
law
to
the
contrary.
15
Sec.
3.
EFFECTIVE
DATE.
This
Act,
being
deemed
of
immediate
16
importance,
takes
effect
upon
enactment.
17
Sec.
4.
RETROACTIVE
APPLICABILITY.
This
Act
applies
18
retroactively
to
January
1,
2013.
19
EXPLANATION
20
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
21
the
explanation’s
substance
by
the
members
of
the
general
assembly.
22
Under
current
law,
the
sales
price
of
tangible
personal
23
property
or
specified
digital
products
sold,
or
services
24
furnished,
to
a
nonprofit
hospital
licensed
pursuant
to
Code
25
chapter
135B,
are
exempt
from
the
sales
tax.
For
purposes
of
26
qualifying
for
the
sales
tax
exemption
for
nonprofit
hospitals,
27
this
bill
specifies
that
a
“nonprofit
hospital
licensed
28
pursuant
to
chapter
135B”
includes
a
group
of
qualifying
29
organizations
acting
in
concert.
30
The
bill
requires
refunds
of
taxes,
interest,
or
penalties
31
arising
from
claims
resulting
from
the
enactment
of
the
bill
32
for
sales
occurring
between
January
1,
2013,
and
the
effective
33
date
of
the
bill
to
be
filed
prior
to
October
1,
2020.
34
By
operation
of
Code
section
423.6,
an
item
exempt
from
the
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_____
imposition
of
the
sales
tax
is
also
exempt
from
the
use
tax
1
imposed
in
Code
section
423.5.
2
The
bill
takes
effect
upon
enactment,
and
applies
3
retroactively
to
January
1,
2013.
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