HF 681 (LSB 1774HV (2) 90)

HOUSE FILE 681

BY  COMMITTEE ON WAYS AND MEANS

(SUCCESSOR TO HSB 225)

A BILL FOR

An Act exempting from the sales and use tax the sales price of tangible personal property or specified digital products sold and services furnished to a county or district fair.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 423.3, subsection 23, Code 2023, is amended to read as follows:
   23.  The sales price of tangible personal property or specified digital products sold, or of services furnished, if such tangible personal property, specified digital products, or services are sold to or by a fair organized under chapter 174.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill exempts from the state sales and use tax the sales price of tangible personal property or specified digital products sold and services furnished to a county or district fair. Currently, the sales price of tangible personal property or specified digital products sold or services furnished by a county or district fair is exempt from the sales and use tax.
   By operation of Code section 423.6, an item exempt from the imposition of the sales tax is also exempt from the use tax imposed in Code section 423.5.