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House File 2 - IntroducedA Bill ForAn Act 1relating to sales tax exemptions on the sale of
2instructional materials at postsecondary institutions
3and on sales where profits are used by or donated to such
4institutions.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 423.3, subsection 78, Code 2019, is
2amended by adding the following new paragraph:
3 NEW PARAGRAPH. d. This exemption does not apply to the
4sales price from the sale of tangible personal property or
5services the profits from which are used by or donated to a
6postsecondary institution or an entity under the control of a
7postsecondary institution. For purposes of this paragraph,
8“postsecondary institution” means the same as defined in
9subsection 107.
10 Sec. 2. Section 423.3, Code 2019, is amended by adding the
11following new subsection:
12 NEW SUBSECTION. 107. a. The sales price from the sale of
13instructional materials required for a course of instruction
14at a postsecondary institution in this state, when purchased
15for use by a student enrolled in such course of instruction at
16the postsecondary institution.
17b. For purposes of this subsection:
18(1) “Instructional materials” means books, textbooks,
19and other written course materials, whether in printed or
20electronic form, and classroom equipment.
21(2) “Postsecondary institution” means an institution
22of higher learning under the control of the state board of
23regents, a community college established under chapter 260C, or
24an accredited private institution as defined in section 261.9.
25(3) “Required for a course of instruction” means integral to
26completion of a course of instruction and uniquely identified
27by a postsecondary institution as required for such course.
28Instructional materials that primarily enhance or assist in the
29facilitation of learning shall not be considered to be “required
30for a course of instruction”.
31EXPLANATION
32The inclusion of this explanation does not constitute agreement with
33the explanation’s substance by the members of the general assembly.
34This bill relates to sales tax exemptions on the sale of
35instructional materials at postsecondary institutions and
-1-1on the sales where profits are used by or donated to such
2institutions.
3The bill provides a sales tax exemption for the sale of
4instructional materials required for a course of instruction
5at a postsecondary institution in this state, when purchased
6for use by a student enrolled in such course of instruction at
7the postsecondary institution. “Postsecondary institution”,
8“instructional materials”, and “required for a course of
9instruction” are defined in the bill.
10The bill excludes postsecondary institutions from the
11sales tax exemption for sales where the profits are used by
12or donated to certain nonprofit entities for educational,
13religious, or charitable purposes.
14By operation of Code section 423.6, an item exempt from the
15imposition of the sales tax is also exempt from the use tax
16imposed in Code section 423.5.
-2-jm/jh
2instructional materials at postsecondary institutions
3and on sales where profits are used by or donated to such
4institutions.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 423.3, subsection 78, Code 2019, is
2amended by adding the following new paragraph:
3 NEW PARAGRAPH. d. This exemption does not apply to the
4sales price from the sale of tangible personal property or
5services the profits from which are used by or donated to a
6postsecondary institution or an entity under the control of a
7postsecondary institution. For purposes of this paragraph,
8“postsecondary institution” means the same as defined in
9subsection 107.
10 Sec. 2. Section 423.3, Code 2019, is amended by adding the
11following new subsection:
12 NEW SUBSECTION. 107. a. The sales price from the sale of
13instructional materials required for a course of instruction
14at a postsecondary institution in this state, when purchased
15for use by a student enrolled in such course of instruction at
16the postsecondary institution.
17b. For purposes of this subsection:
18(1) “Instructional materials” means books, textbooks,
19and other written course materials, whether in printed or
20electronic form, and classroom equipment.
21(2) “Postsecondary institution” means an institution
22of higher learning under the control of the state board of
23regents, a community college established under chapter 260C, or
24an accredited private institution as defined in section 261.9.
25(3) “Required for a course of instruction” means integral to
26completion of a course of instruction and uniquely identified
27by a postsecondary institution as required for such course.
28Instructional materials that primarily enhance or assist in the
29facilitation of learning shall not be considered to be “required
30for a course of instruction”.
31EXPLANATION
32The inclusion of this explanation does not constitute agreement with
33the explanation’s substance by the members of the general assembly.
34This bill relates to sales tax exemptions on the sale of
35instructional materials at postsecondary institutions and
-1-1on the sales where profits are used by or donated to such
2institutions.
3The bill provides a sales tax exemption for the sale of
4instructional materials required for a course of instruction
5at a postsecondary institution in this state, when purchased
6for use by a student enrolled in such course of instruction at
7the postsecondary institution. “Postsecondary institution”,
8“instructional materials”, and “required for a course of
9instruction” are defined in the bill.
10The bill excludes postsecondary institutions from the
11sales tax exemption for sales where the profits are used by
12or donated to certain nonprofit entities for educational,
13religious, or charitable purposes.
14By operation of Code section 423.6, an item exempt from the
15imposition of the sales tax is also exempt from the use tax
16imposed in Code section 423.5.
-2-jm/jh