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House File 2520 - IntroducedA Bill ForAn Act 1exempting from the state sales and use tax the purchase
2price of specified digital products, prewritten computer
3software, and related services sold to public utilities, and
4including effective date provisions.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 423.3, subsection 104, paragraph b,
2subparagraph (1), Code 2022, is amended to read as follows:
3(1) “Commercial enterprise” means the same as defined in
4section 423.3, subsection 47, paragraph “d”, subparagraph (1),
5but also includes professions and occupations, and includes
6public utilities as defined in section 476.1, subsection 3.
7 Sec. 2. EFFECTIVE DATE. This Act takes effect January 1,
82023.
9EXPLANATION
10The inclusion of this explanation does not constitute agreement with
11the explanation’s substance by the members of the general assembly.
12This bill exempts from the state sales and use tax the
13purchase price of specified digital products, prewritten
14computer software, and related services sold to public
15utilities.
16The bill expands the definition of “commercial enterprise”
17to include a “public utility” as defined in Code section
18476.1(3). As a result, the sales price of specified digital
19products, prewritten computer software, and other enumerated
20digital and computer services furnished to a public utility are
21exempt from the sales tax, if exclusively used by the public
22utility.
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.
26The bill takes effect January 1, 2023.
-1-jm/jh
2price of specified digital products, prewritten computer
3software, and related services sold to public utilities, and
4including effective date provisions.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 423.3, subsection 104, paragraph b,
2subparagraph (1), Code 2022, is amended to read as follows:
3(1) “Commercial enterprise” means the same as defined in
4section 423.3, subsection 47, paragraph “d”, subparagraph (1),
5but also includes professions and occupations, and includes
6public utilities as defined in section 476.1, subsection 3.
7 Sec. 2. EFFECTIVE DATE. This Act takes effect January 1,
82023.
9EXPLANATION
10The inclusion of this explanation does not constitute agreement with
11the explanation’s substance by the members of the general assembly.
12This bill exempts from the state sales and use tax the
13purchase price of specified digital products, prewritten
14computer software, and related services sold to public
15utilities.
16The bill expands the definition of “commercial enterprise”
17to include a “public utility” as defined in Code section
18476.1(3). As a result, the sales price of specified digital
19products, prewritten computer software, and other enumerated
20digital and computer services furnished to a public utility are
21exempt from the sales tax, if exclusively used by the public
22utility.
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.
26The bill takes effect January 1, 2023.
-1-jm/jh