Senate Study Bill 1188 - IntroducedA Bill ForAn Act 1relating to the imposition of the sales and use tax by
2modifying the definition of agricultural production.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1   Section 1.  Section 423.1, subsection 5, Code 2019, is
2amended to read as follows:
   35.  “Agricultural production” includes means the commercial
4 production of livestock, milk, honey, eggs, or plants,
5including but not limited to
flowering, ornamental, or
6vegetable plants in commercial greenhouses or otherwise,
7and commercial production from aquaculture, and commercial
8 production from silvicultural activities. “Agricultural
9products”
includes flowering, ornamental, or vegetable plants
10and those products of aquaculture and silviculture.
11EXPLANATION
12The inclusion of this explanation does not constitute agreement with
13the explanation’s substance by the members of the general assembly.
   14This bill relates to the imposition of the sales and use tax
15by modifying the definition of agricultural production.
   16The bill modifies the definition of “agricultural
17production” to include the commercial production of livestock,
18milk, honey, eggs, or certain ornamental vegetable plants
19in greenhouses. “Agricultural production” is also modified
20to include commercial production from aquaculture and
21silvicultural activities.
   22The amendment to “agricultural production” in Code chapter
23423 affects the application of the following provisions
24which are not amended by the bill: Code sections 423.1(19)
25(definition of farm machinery and equipment), 423.3(5) (exempt
26agricultural products), 423.3(6) (exempt sales price of fuel
27used in agricultural production), 423.3(8) (exempt specialized
28machinery used in agricultural production), 423.3(10)
29(exempt gas, electricity, water, or heat used in agricultural
30production), and 423.45(5) (refunds of taxed fuel used in
31agricultural production).
   32By operation of Code section 423.6, an item exempt from
33imposition of the sales tax is also exempt from the use tax
34imposed in Code section 423.5.
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