House File 579 - Introduced HOUSE FILE 579 BY SALMON , BROWN-POWERS , KRESSIG , HANSEN , GUSTAFSON , GOBBLE , THOMPSON , SORENSEN , MOORE , BAXTER , BRADLEY , BODEN , STONE , FISHER , GERHOLD , KURTH , STECKMAN , DONAHUE , WINCKLER , CAHILL , SMITH , WOLFE , THEDE , MASCHER , JUDGE , HUNTER , EHLERT , JAMES , JACOBY , GJERDE , STAED , OSMUNDSON , McCONKEY , KONFRST , SUNDE , B. MEYER , WILLIAMS , FORBES , JENEARY , and ANDREWS A BILL FOR An Act exempting from the state sales tax and use tax the 1 purchase price of tangible personal property or specified 2 digital products sold and services furnished to a nonprofit 3 food bank. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1163YH (4) 89 jm/jh

H.F. 579 Section 1. Section 423.3, Code 2021, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 107. The sales price from the sale or 3 rental of tangible personal property or specified digital 4 products, or services furnished, to a nonprofit food bank, 5 which tangible personal property, specified digital products, 6 or services are to be used by the nonprofit food bank for a 7 charitable purpose. For purposes of this subsection, “nonprofit 8 food bank” means an organization organized under chapter 504 9 and qualifying under section 501(c)(3) of the Internal Revenue 10 Code as an organization exempt from federal income tax under 11 section 501(a) of the Internal Revenue Code that maintains 12 an established operation involving the provision of food or 13 edible commodities or the products thereof on a regular basis 14 to persons in need with distribution through food pantries, 15 soup kitchens, hunger relief centers, or other food or feeding 16 centers that, as an integral part of their normal activities, 17 provide meals or food on a regular basis to persons in need. 18 EXPLANATION 19 The inclusion of this explanation does not constitute agreement with 20 the explanation’s substance by the members of the general assembly. 21 This bill exempts from the sales tax the purchase price from 22 the sale or rental of tangible personal property or specified 23 digital products, or services furnished, to a nonprofit 24 food bank if the property or services are to be used by the 25 nonprofit food bank for a charitable purpose. “Nonprofit food 26 bank” is defined in the bill. 27 By operation of Code section 423.6, an item exempt from the 28 imposition of the sales tax is also exempt from the use tax 29 imposed in Code section 423.5. 30 -1- LSB 1163YH (4) 89 jm/jh 1/ 1