HF 722 (LSB 2505HV (1) 90)

HOUSE FILE 722

BY  COMMITTEE ON WAYS AND MEANS

(SUCCESSOR TO HSB 247)

A BILL FOR

An Act expanding the sales and use tax exemption allowed for nonprofit blood centers.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 423.3, subsection 18, Code 2023, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  h.  (1)  Blood collection and processing establishments.
   (2)  As used in this paragraph, “blood collection and processing establishment” means the same as an establishment described in 216 C.F.R. §607.3(c).
    Sec. 2.  Section 423.3, subsection 26A, Code 2023, is amended by striking the subsection.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill expands the current sales and use tax exemption allowed for nonprofit blood centers.
   Under current law, tangible personal property sold or test laboratory services furnished are exempt from sales and use tax if sold or furnished to a nonprofit blood center that is registered by the federal food and drug administration, and the property or services are directly and primarily used in the processing of human blood.
   The bill provides that tangible personal property or specified digital products sold or any services furnished are exempt from sales and use tax if sold or furnished to a blood collection and processing establishment. The bill defines blood collection and processing establishment to mean the same as an establishment described in 216 C.F.R. §607.3(c), which means a place of business under one management at one general physical location. The term includes, among others, human blood and plasma donor centers, blood banks, transfusion services, and other blood product manufacturers and independent laboratories that engage in quality control and testing for registered blood product establishments.