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House File 42 - IntroducedA Bill ForAn Act 1exempting from the sales tax certain items and services
2sold to a nonprofit human blood collection and processing
3establishment.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 423.3, Code 2019, is amended by adding
2the following new subsection:
3 NEW SUBSECTION. 44. The sales price of chemicals, solvents,
4sorbents, or reagents sold, or test laboratory services
5furnished, to a nonprofit human blood collection and processing
6establishment that meets the definition of establishment in 21
7C.F.R.§607.3(c).
8EXPLANATION
9The inclusion of this explanation does not constitute agreement with
10the explanation’s substance by the members of the general assembly.
11This bill exempts from the sales tax the sales price of
12chemicals, solvents, sorbents, or reagents sold, or test
13laboratory services furnished, to a nonprofit human blood
14collection and processing establishment that meets the
15definition of establishment in 21 C.F.R.§607.3(c). That
16federal regulation defines “establishment” to mean a place of
17business under one management at one general physical location.
18The term includes, among others, human blood and plasma donor
19centers, blood banks, transfusion services, other blood product
20manufacturers, and independent laboratories that engage in
21quality control and testing for registered blood product
22establishments.
23By operation of Code section 423.6, an item exempt from the
24imposition of the sales tax is also exempt from the use tax
25imposed in Code section 423.5.
-1-jm/jh
2sold to a nonprofit human blood collection and processing
3establishment.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 423.3, Code 2019, is amended by adding
2the following new subsection:
3 NEW SUBSECTION. 44. The sales price of chemicals, solvents,
4sorbents, or reagents sold, or test laboratory services
5furnished, to a nonprofit human blood collection and processing
6establishment that meets the definition of establishment in 21
7C.F.R.§607.3(c).
8EXPLANATION
9The inclusion of this explanation does not constitute agreement with
10the explanation’s substance by the members of the general assembly.
11This bill exempts from the sales tax the sales price of
12chemicals, solvents, sorbents, or reagents sold, or test
13laboratory services furnished, to a nonprofit human blood
14collection and processing establishment that meets the
15definition of establishment in 21 C.F.R.§607.3(c). That
16federal regulation defines “establishment” to mean a place of
17business under one management at one general physical location.
18The term includes, among others, human blood and plasma donor
19centers, blood banks, transfusion services, other blood product
20manufacturers, and independent laboratories that engage in
21quality control and testing for registered blood product
22establishments.
23By operation of Code section 423.6, an item exempt from the
24imposition of the sales tax is also exempt from the use tax
25imposed in Code section 423.5.
-1-jm/jh