Senate Study Bill 1254 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON DAWSON) A BILL FOR An Act exempting from the state sales tax and use tax the 1 purchase price of tangible personal property sold and 2 services furnished to a nonprofit food bank. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2808XC (2) 89 jm/jh

S.F. _____ Section 1. Section 423.3, Code 2021, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 107. The sales price of the sale or 3 rental of tangible personal property sold to and of services 4 furnished to a nonprofit food bank, if the property or 5 services are used by the nonprofit food bank for a charitable 6 purpose. For purposes of this subsection, “nonprofit food 7 bank” means an organization organized under chapter 504 and 8 qualifying under section 501(c)(3) of the Internal Revenue 9 Code as an organization exempt from federal income tax under 10 section 501(a) of the Internal Revenue Code that maintains 11 an established operation involving the provision of food or 12 edible commodities or the products thereof on a regular basis 13 to persons in need or to food pantries, soup kitchens, hunger 14 relief centers, or other food or feeding centers that, as an 15 integral part of their normal activities, provide meals or food 16 on a regular basis to persons in need. 17 EXPLANATION 18 The inclusion of this explanation does not constitute agreement with 19 the explanation’s substance by the members of the general assembly. 20 This bill exempts from the sales tax the purchase price of 21 the sale or rental of tangible personal property sold to and of 22 services furnished to a nonprofit food bank if the property or 23 services are used by the nonprofit food bank for a charitable 24 purpose. “Nonprofit food bank” is defined in the bill. 25 By operation of Code section 423.6, an item exempt from the 26 imposition of the sales tax is also exempt from the use tax 27 imposed in Code section 423.5. 28 -1- LSB 2808XC (2) 89 jm/jh 1/ 1