HF 419 (LSB 2197HH (2) 91)

HOUSE FILE 419

BY  C. JOHNSON, NORDMAN, DUNWELL, MOMMSEN, SHIPLEY, THOMSON, JENEARY, and FISHER

A BILL FOR

An Act exempting from the state sales and use tax the sales price of lodging supplies sold to a lodging provider.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 423.3, Code 2025, is amended by adding the following new subsection:
   NEW SUBSECTION.  111.  a.  The sales price of lodging supplies sold to a lodging provider if the lodging supplies are consumed or used by the customer of the lodging provider.
   b.  As used in this subsection:
   (1)  “Customer” means a user as defined in section 423A.2.
   (2)  “Lodging provider” means the same as defined in section 423A.2.
   (3)  “Lodging supplies” means toilet tissue, facial tissue, shampoo, conditioner, complimentary toiletries, running water, electrical service provided to a guest room, bottled water, towels, sheets, blankets, pillows, wrapped glasses, coffee cups, television service, pens, paper, phone service, and cleaning supplies.
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 lodging supplies sold to a lodging provider.
   Under the bill, such lodging supplies are exempt if the lodging supplies are consumed or used by the customer of the lodging provider.
   The bill defines customer, lodging provider, and lodging supplies.
   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.