House File 544 - Introduced HOUSE FILE 544 BY JOHNSON (COMPANION TO SF 394 BY KOELKER) A BILL FOR An Act exempting from the state sales and use tax the sales 1 price of lodging supplies sold to a lodging provider. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 2263YH (2) 90 jm/jh

H.F. 544 Section 1. Section 423.3, Code 2023, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 110. a. The sales price of lodging 3 supplies sold to a lodging provider if the lodging supplies are 4 consumed or used by the customer of the lodging provider. 5 b. As used in this subsection: 6 (1) “Customer” means a user as defined in section 423A.2. 7 (2) “Lodging provider” means the same as defined in section 8 423A.2. 9 (3) “Lodging supplies” means toilet tissue, facial tissue, 10 shampoo, conditioner, complimentary toiletries, running water, 11 electrical service provided to a guest room, bottled water, 12 towels, sheets, blankets, pillows, wrapped glasses, coffee 13 cups, internet service, television service, pens, paper, phone 14 service, and cleaning supplies. 15 EXPLANATION 16 The inclusion of this explanation does not constitute agreement with 17 the explanation’s substance by the members of the general assembly. 18 This bill exempts from the state sales and use tax the sales 19 price of lodging supplies sold to a lodging provider. 20 Under the bill, such lodging supplies are exempt if the 21 lodging supplies are consumed or used by the customer of the 22 lodging provider. 23 The bill defines customer, lodging provider, and lodging 24 supplies. 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 2263YH (2) 90 jm/jh 1/ 1