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House File 2159 - IntroducedA Bill ForAn Act 1exempting from the sales tax certain building materials,
2supplies, goods, wares, merchandise, or specified digital
3products sold, or services furnished, to a nonprofit whose
4primary activity is the construction of low-cost homes by
5incarcerated individuals, and providing for an effective
6date.
7BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 423.3, Code 2020, is amended by adding
2the following new subsection:
3 NEW SUBSECTION. 107. The sales price from the sale of
4building materials, supplies, goods, wares, merchandise,
5or specified digital products sold, or services furnished,
6to a nonprofit organization whose primary activity is the
7construction of new, low-cost homes by incarcerated individuals
8for use by qualified persons in areas of the state in need of
9housing and where the building materials, supplies, goods,
10wares, merchandise, specified digital products, or services,
11are used in the construction of such homes.
12 Sec. 2. EFFECTIVE DATE. This Act, being deemed of immediate
13importance, takes effect upon enactment.
14EXPLANATION
15The inclusion of this explanation does not constitute agreement with
16the explanation’s substance by the members of the general assembly.
17This bill exempts from the sales tax certain building
18materials, supplies, goods, wares, merchandise, or specified
19digital products sold, or services furnished, to a nonprofit
20organization whose primary activity is the construction of new,
21low-cost homes by incarcerated individuals for use by qualified
22persons in areas of the state in need of housing. The bill
23requires the building materials, supplies, good, wares,
24merchandise, specified digital products, or services exempt
25from sales tax to be used in the construction of new homes.
26By operation of Code section 423.6, an item exempt from the
27imposition of the sales tax is also exempt from the use tax
28imposed in Code section 423.5.
29The bill takes effect upon enactment.
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2supplies, goods, wares, merchandise, or specified digital
3products sold, or services furnished, to a nonprofit whose
4primary activity is the construction of low-cost homes by
5incarcerated individuals, and providing for an effective
6date.
7BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 423.3, Code 2020, is amended by adding
2the following new subsection:
3 NEW SUBSECTION. 107. The sales price from the sale of
4building materials, supplies, goods, wares, merchandise,
5or specified digital products sold, or services furnished,
6to a nonprofit organization whose primary activity is the
7construction of new, low-cost homes by incarcerated individuals
8for use by qualified persons in areas of the state in need of
9housing and where the building materials, supplies, goods,
10wares, merchandise, specified digital products, or services,
11are used in the construction of such homes.
12 Sec. 2. EFFECTIVE DATE. This Act, being deemed of immediate
13importance, takes effect upon enactment.
14EXPLANATION
15The inclusion of this explanation does not constitute agreement with
16the explanation’s substance by the members of the general assembly.
17This bill exempts from the sales tax certain building
18materials, supplies, goods, wares, merchandise, or specified
19digital products sold, or services furnished, to a nonprofit
20organization whose primary activity is the construction of new,
21low-cost homes by incarcerated individuals for use by qualified
22persons in areas of the state in need of housing. The bill
23requires the building materials, supplies, good, wares,
24merchandise, specified digital products, or services exempt
25from sales tax to be used in the construction of new homes.
26By operation of Code section 423.6, an item exempt from the
27imposition of the sales tax is also exempt from the use tax
28imposed in Code section 423.5.
29The bill takes effect upon enactment.
-1-jm/jh