House Study Bill 615 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON HEIN) 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 5513YC (2) 89 jm/jh

H.F. _____ 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 5513YC (2) 89 jm/jh 1/ 1