H.F. _____ Section 1. Section 423.3, subsection 18, Code 2023, is 1 amended by adding the following new paragraph: 2 NEW PARAGRAPH . h. (1) Blood collection and processing 3 establishments. 4 (2) As used in this paragraph, “blood collection and 5 processing establishment” means the same as an establishment 6 described in 216 C.F.R. §607.3(c). 7 Sec. 2. Section 423.3, subsection 26A, Code 2023, is amended 8 by striking the subsection. 9 EXPLANATION 10 The inclusion of this explanation does not constitute agreement with 11 the explanation’s substance by the members of the general assembly. 12 This bill expands the current sales and use tax exemption 13 allowed for nonprofit blood centers. 14 Under current law, tangible personal property sold or test 15 laboratory services furnished are exempt from sales and use 16 tax if sold or furnished to a nonprofit blood center that is 17 registered by the federal food and drug administration, and the 18 property or services are directly and primarily used in the 19 processing of human blood. 20 The bill provides that tangible personal property or 21 specified digital products sold or any services furnished are 22 exempt from sales and use tax if sold or furnished to a blood 23 collection and processing establishment. The bill defines 24 blood collection and processing establishment to mean the 25 same as an establishment described in 216 C.F.R. §607.3(c), 26 which means a place of business under one management at one 27 general physical location. The term includes, among others, 28 human blood and plasma donor centers, blood banks, transfusion 29 services, and other blood product manufacturers and independent 30 laboratories that engage in quality control and testing for 31 registered blood product establishments. 32 -1- LSB 2505YC (3) 90 jm/jh 1/ 1