Senate File 174 - IntroducedA Bill ForAn Act 1relating to the manufacturing and equipment sales and
2use tax exemption, and including effective date provisions.
1   Section 1.  Section 423.3, subsection 47, paragraph d,
2subparagraph (4), Code 2019, is amended to read as follows:
   3(4)  (a)  “Manufacturer” means a any of the following:
   4(i)   Abusiness that primarily purchases, receives, or holds
5personal property of any description for the purpose of adding
6to its value by a process of manufacturing with a view to
7selling the property for gain or profit.
   8(b)  “Manufacturer” includes
   9(ii)   Acontract manufacturers manufacturer. A contract
10manufacturer is a manufacturer that otherwise falls within the
11definition of manufacturer, except that a contract manufacturer
12does not sell the tangible personal property the contract
13manufacturer processes on behalf of other manufacturers.
   14(iii)  A nonprofit blood center.
   15(c)    (b)  “Manufacturer” does not include persons who are not
16commonly understood as manufacturers, including but not limited
17to persons engaged in any of the following activities:
   18(i)  Construction contracting.
   19(ii)  Repairing tangible personal property or real property.
   20(iii)  Providing health care.
   21(iv)  Farming, including cultivating agricultural products
22and raising livestock.
   23(v)  Transporting for hire.
   24(d)    (c)  For purposes of this subparagraph:
   25(i)  “Business” means those businesses conducted for
26profit, but excludes professions and occupations, and excludes
27 nonprofit organizations that are not nonprofit blood centers.
   28(ii)  “Manufacturing” means those activities commonly
29understood within the ordinary meaning of the term, and shall
   31(A)  Refining.
   32(B)  Purifying.
   33(C)  Combining of different materials.
   34(D)  Packing of meats.
   35(E)  Activities subsequent to the extractive process of
-1-1quarrying or mining, such as crushing, washing, sizing, or
2blending of aggregate materials.
   3(iii)  “Manufacturing” does not include activities occurring
4on premises primarily used to make retail sales.
5   Sec. 2.  EFFECTIVE DATE.  This Act, being deemed of immediate
6importance, takes effect upon enactment.
8The inclusion of this explanation does not constitute agreement with
9the explanation’s substance by the members of the general assembly.
   10This bill relates to the manufacturing and equipment sales
11and use tax exemption.
   12The bill amends the definition of “manufacturer” and
13“business” in Code section 423.3(47) to include a nonprofit
14blood center. As a result, a nonprofit blood center is
15eligible for the manufacturing and equipment sales and use tax
16exemption for sales described in Code section 423.3(47).
   17The bill takes effect upon enactment.