House
File
2035
-
Introduced
HOUSE
FILE
2035
BY
BEST
A
BILL
FOR
An
Act
providing
sales
and
use
tax
refunds
on
the
sales
1
price
of
materials,
equipment,
and
services
used
in
the
2
performance
of
a
written
construction
contract
with
a
3
nonprofit
hospital,
and
including
applicability
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
TLSB
5558YH
(1)
90
jm/jh
H.F.
2035
Section
1.
Section
423.4,
subsection
1,
paragraph
a,
Code
1
2024,
is
amended
by
adding
the
following
new
subparagraph:
2
NEW
SUBPARAGRAPH
.
(10)
A
hospital
defined
in
section
135B.1
3
that
is
a
nonprofit
and
is
located
in
this
state.
4
Sec.
2.
APPLICABILITY.
This
Act
applies
to
written
5
contracts
for
construction
projects
entered
into
with
a
6
nonprofit
hospital
on
or
after
January
1,
2025.
7
EXPLANATION
8
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
9
the
explanation’s
substance
by
the
members
of
the
general
assembly.
10
This
bill
provides
sales
and
use
tax
refunds
on
the
sales
11
price
of
materials,
equipment,
and
services
used
in
the
12
performance
of
a
written
construction
contract
with
a
nonprofit
13
hospital.
14
Under
the
bill,
a
nonprofit
hospital
may
apply
to
the
15
department
of
revenue
for
the
refund
of
the
sales
or
use
tax
16
upon
the
sales
price
of
materials,
equipment,
and
services
17
if
all
of
the
following
apply:
the
materials,
equipment,
18
and
services
are
completely
consumed
in
the
performance
of
19
the
construction
project
with
the
nonprofit
hospital;
the
20
property
that
is
subject
of
the
construction
project
becomes
21
public
property
or
the
property
of
the
nonprofit
hospital;
and
22
the
construction
project
is
not
used
in
connection
with
the
23
operation
of
a
municipal
utility
or
used
in
a
construction
24
project
under
Code
chapter
419
(municipal
support
projects).
25
The
bill
defines
“hospital”
to
mean
the
same
as
a
hospital
26
defined
in
Code
section
135B.1
that
is
a
nonprofit
and
is
27
located
in
this
state.
28
The
bill
applies
to
written
contracts
for
construction
29
projects
entered
into
with
a
nonprofit
hospital
on
or
after
30
January
1,
2025.
31
-1-
LSB
5558YH
(1)
90
jm/jh
1/
1