House File 2486 - Reprinted HOUSE FILE 2486 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO HSB 683) (As Amended and Passed by the House May 2, 2018 ) A BILL FOR An Act relating to postsecondary institutions by exempting from 1 the sales tax the sale of instructional materials required 2 for use in a course of instruction at a postsecondary 3 institution in this state and by excluding postsecondary 4 institutions from the sales tax exemption for sales where 5 the profits are used by or donated to certain nonprofit 6 entities for educational, religious, or charitable purposes. 7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 8 HF 2486 (2) 87 mm/jh/md
H.F. 2486 Section 1. Section 423.3, subsection 78, Code 2018, is 1 amended by adding the following new paragraph: 2 NEW PARAGRAPH . d. This exemption does not apply to the 3 sales price from the sale of tangible personal property or 4 services the profits from which are used by or donated to a 5 postsecondary institution or an entity under the control of a 6 postsecondary institution. For purposes of this paragraph, 7 “postsecondary institution” means the same as defined in 8 subsection 103. 9 Sec. 2. Section 423.3, Code 2018, is amended by adding the 10 following new subsection: 11 NEW SUBSECTION . 103. a. The sales price from the sale of 12 instructional materials required for a course of instruction 13 at a postsecondary institution in this state, when purchased 14 for use by a student enrolled in such course of instruction at 15 the postsecondary institution. 16 b. For purposes of this subsection: 17 (1) “Instructional materials” means books, textbooks, 18 and other written course materials, whether in printed or 19 electronic form, and classroom equipment. 20 (2) “Postsecondary institution” means an institution 21 of higher learning under the control of the state board of 22 regents, a community college established under chapter 260C, or 23 an accredited private institution as defined in section 261.9. 24 (3) “Required for a course of instruction” means integral to 25 completion of a course of instruction and uniquely identified 26 by a postsecondary institution as required for such course. 27 Instructional materials that primarily enhance or assist in the 28 facilitation of learning shall not be considered to be “required 29 for a course of instruction” . 30 -1- HF 2486 (2) 87 mm/jh/md 1/ 1