House
File
2520
-
Introduced
HOUSE
FILE
2520
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
HSB
615)
A
BILL
FOR
An
Act
exempting
from
the
state
sales
and
use
tax
the
purchase
1
price
of
specified
digital
products,
prewritten
computer
2
software,
and
related
services
sold
to
public
utilities,
and
3
including
effective
date
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
TLSB
5513HV
(1)
89
jm/jh
H.F.
2520
Section
1.
Section
423.3,
subsection
104,
paragraph
b,
1
subparagraph
(1),
Code
2022,
is
amended
to
read
as
follows:
2
(1)
“Commercial
enterprise”
means
the
same
as
defined
in
3
section
423.3,
subsection
47
,
paragraph
“d”
,
subparagraph
(1),
4
but
also
includes
professions
and
occupations
,
and
includes
5
public
utilities
as
defined
in
section
476.1,
subsection
3
.
6
Sec.
2.
EFFECTIVE
DATE.
This
Act
takes
effect
January
1,
7
2023.
8
EXPLANATION
9
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
10
the
explanation’s
substance
by
the
members
of
the
general
assembly.
11
This
bill
exempts
from
the
state
sales
and
use
tax
the
12
purchase
price
of
specified
digital
products,
prewritten
13
computer
software,
and
related
services
sold
to
public
14
utilities.
15
The
bill
expands
the
definition
of
“commercial
enterprise”
16
to
include
a
“public
utility”
as
defined
in
Code
section
17
476.1(3).
As
a
result,
the
sales
price
of
specified
digital
18
products,
prewritten
computer
software,
and
other
enumerated
19
digital
and
computer
services
furnished
to
a
public
utility
are
20
exempt
from
the
sales
tax,
if
exclusively
used
by
the
public
21
utility.
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
The
bill
takes
effect
January
1,
2023.
26
-1-
LSB
5513HV
(1)
89
jm/jh
1/
1