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Senate File 597 - IntroducedA Bill ForAn Act 1exempting from the sales tax certain items and services
2sold or furnished to nonprofit blood centers, including
3effective date and retroactive applicability provisions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 423.3, subsection 26A, Code 2019, is
2amended by striking the subsection and inserting in lieu
3thereof the following:
426A. a. The sales price of tangible personal property sold
5or of test laboratory services furnished, if such tangible
6personal property or test laboratory services are sold or
7furnished to a nonprofit blood center that is registered by the
8federal food and drug administration, and the tangible personal
9property or test laboratory services are directly and primarily
10used in the processing of human blood.
11b. As used in this subsection, “processing” means the
12same as defined in section 423.3, subsection 47, except that
13for purposes of the definition of “processing” used in this
14subsection, a “manufacturer” shall be construed to include a
15nonprofit blood center.
16 Sec. 2. Section 423.3, subsection 104, paragraph b,
17subparagraph (1), Code 2019, is amended to read as follows:
18(1) “Commercial enterprise” means the same as defined in
19section 423.3, subsection 47, paragraph “d”, subparagraph (1),
20but also includes nonprofit blood centers, professions, and
21occupations.
22 Sec. 3. REFUNDS. Refunds of taxes, interest, or penalties
23that arise from claims resulting from the enactment of
24this Act, for sales occurring between May 30, 2018, and the
25effective date of this Act, shall not be allowed unless refund
26claims are filed prior to October 1, 2019, notwithstanding any
27other provision of law to the contrary.
28 Sec. 4. EFFECTIVE DATE. This Act, being deemed of immediate
29importance, takes effect upon enactment.
30 Sec. 5. RETROACTIVE APPLICABILITY. This Act applies
31retroactively to May 30, 2018.
32EXPLANATION
33The inclusion of this explanation does not constitute agreement with
34the explanation’s substance by the members of the general assembly.
35This bill relates to exempting from the sales tax certain
-1-1items and services sold or furnished to a nonprofit blood
2center.
3The bill amends Code section 423.3(26A) by exempting from
4the sales tax the sales price of tangible personal property
5sold or test laboratory services furnished, if such tangible
6personal property or test laboratory services are sold or
7furnished to a nonprofit blood center that is registered by the
8federal food and drug administration, and the tangible personal
9property or test laboratory services are directly and primarily
10used in the processing of human blood.
11The bill expands the definition of “commercial enterprise”
12in Code section 423.3(104) to include a nonprofit blood center.
13As a result, the sales price of specified digital products,
14prewritten computer software, and other enumerated digital and
15computer services furnished to a nonprofit blood center are
16exempt from the sales tax, if exclusively used by the blood
17center.
18By operation of Code section 423.6, an item exempt from the
19imposition of the sales tax is also exempt from the use tax
20imposed in Code section 423.5.
21The bill permits refunds of taxes, interest, or penalties
22arising from claims resulting from the enactment of the bill
23for sales occurring between May 30, 2018, and the effective
24date of the bill, and requires such claims to be filed prior to
25October 1, 2019.
26The bill takes effect upon enactment and applies
27retroactively to May 30, 2018.
-2-jm/jh
2sold or furnished to nonprofit blood centers, including
3effective date and retroactive applicability provisions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 423.3, subsection 26A, Code 2019, is
2amended by striking the subsection and inserting in lieu
3thereof the following:
426A. a. The sales price of tangible personal property sold
5or of test laboratory services furnished, if such tangible
6personal property or test laboratory services are sold or
7furnished to a nonprofit blood center that is registered by the
8federal food and drug administration, and the tangible personal
9property or test laboratory services are directly and primarily
10used in the processing of human blood.
11b. As used in this subsection, “processing” means the
12same as defined in section 423.3, subsection 47, except that
13for purposes of the definition of “processing” used in this
14subsection, a “manufacturer” shall be construed to include a
15nonprofit blood center.
16 Sec. 2. Section 423.3, subsection 104, paragraph b,
17subparagraph (1), Code 2019, is amended to read as follows:
18(1) “Commercial enterprise” means the same as defined in
19section 423.3, subsection 47, paragraph “d”, subparagraph (1),
20but also includes nonprofit blood centers, professions, and
21occupations.
22 Sec. 3. REFUNDS. Refunds of taxes, interest, or penalties
23that arise from claims resulting from the enactment of
24this Act, for sales occurring between May 30, 2018, and the
25effective date of this Act, shall not be allowed unless refund
26claims are filed prior to October 1, 2019, notwithstanding any
27other provision of law to the contrary.
28 Sec. 4. EFFECTIVE DATE. This Act, being deemed of immediate
29importance, takes effect upon enactment.
30 Sec. 5. RETROACTIVE APPLICABILITY. This Act applies
31retroactively to May 30, 2018.
32EXPLANATION
33The inclusion of this explanation does not constitute agreement with
34the explanation’s substance by the members of the general assembly.
35This bill relates to exempting from the sales tax certain
-1-1items and services sold or furnished to a nonprofit blood
2center.
3The bill amends Code section 423.3(26A) by exempting from
4the sales tax the sales price of tangible personal property
5sold or test laboratory services furnished, if such tangible
6personal property or test laboratory services are sold or
7furnished to a nonprofit blood center that is registered by the
8federal food and drug administration, and the tangible personal
9property or test laboratory services are directly and primarily
10used in the processing of human blood.
11The bill expands the definition of “commercial enterprise”
12in Code section 423.3(104) to include a nonprofit blood center.
13As a result, the sales price of specified digital products,
14prewritten computer software, and other enumerated digital and
15computer services furnished to a nonprofit blood center are
16exempt from the sales tax, if exclusively used by the blood
17center.
18By operation of Code section 423.6, an item exempt from the
19imposition of the sales tax is also exempt from the use tax
20imposed in Code section 423.5.
21The bill permits refunds of taxes, interest, or penalties
22arising from claims resulting from the enactment of the bill
23for sales occurring between May 30, 2018, and the effective
24date of the bill, and requires such claims to be filed prior to
25October 1, 2019.
26The bill takes effect upon enactment and applies
27retroactively to May 30, 2018.
-2-jm/jh