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House File 132 - IntroducedA Bill ForAn Act 1exempting from the sales tax certain items and services
2sold to a nonprofit human blood collection and processing
3establishment, including effective date and retroactive
4applicability provisions.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 423.3, Code 2017, is amended by adding
2the following new subsection:
3 NEW SUBSECTION. 44. The sales price of chemicals, solvents,
4sorbents, or reagents sold, or test laboratory services
5furnished, to a nonprofit human blood collection and processing
6establishment that meets the definition of establishment in 21
7C.F.R.§607.3(c).
8 Sec. 2. REFUNDS. Refunds of taxes, interest, or penalties
9that arise from claims resulting from the enactment of
10this Act, for sales occurring between July 1, 2005, and the
11effective date of this Act, shall be limited to twenty-five
12thousand dollars in the aggregate and shall not be allowed
13unless refund claims are filed prior to October 1, 2017,
14notwithstanding any other provision of law to the contrary.
15If the amount of claims totals more than twenty-five thousand
16dollars in the aggregate, the department of revenue shall
17prorate the twenty-five thousand dollars among all claimants in
18relation to the amounts of the claimants’ valid claims.
19 Sec. 3. EFFECTIVE UPON ENACTMENT. This Act, being deemed of
20immediate importance, takes effect upon enactment.
21 Sec. 4. RETROACTIVE APPLICABILITY. This Act applies
22retroactively to July 1, 2005.
23EXPLANATION
24The inclusion of this explanation does not constitute agreement with
25the explanation’s substance by the members of the general assembly.
26This bill exempts from the sales tax the sales price of
27chemicals, sorbents, or reagents sold, or test laboratory
28services furnished, to a nonprofit human blood collection
29and processing establishment that meets the definition of
30establishment in 21 C.F.R.§607.3(c). That federal regulation
31defines “establishment” to mean a place of business under
32one management at one general physical location. The term
33includes, among others, human blood and plasma donor centers,
34blood banks, transfusion services, other blood product
35manufacturers, and independent laboratories that engage in
-1-1quality control and testing for registered blood product
2establishments.
3By operation of Code section 423.6, an item exempt from the
4imposition of the sales tax is also exempt from the use tax
5imposed in Code section 423.5.
6The bill limits refunds of taxes, interest, or penalties
7arising from claims resulting from the enactment of the bill
8for sales occurring between July 1, 2005, and the effective
9date of the bill to $25,000 in the aggregate, and requires such
10claims to be filed prior to October 1, 2017. If the aggregate
11amount of refund claims exceeds $25,000, the department of
12revenue is required to prorate the $25,000 among all claimants
13in relation to each claim amount.
14The bill takes effect upon enactment and applies
15retroactively to July 1, 2005.
-2-mm/sc
2sold to a nonprofit human blood collection and processing
3establishment, including effective date and retroactive
4applicability provisions.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 423.3, Code 2017, is amended by adding
2the following new subsection:
3 NEW SUBSECTION. 44. The sales price of chemicals, solvents,
4sorbents, or reagents sold, or test laboratory services
5furnished, to a nonprofit human blood collection and processing
6establishment that meets the definition of establishment in 21
7C.F.R.§607.3(c).
8 Sec. 2. REFUNDS. Refunds of taxes, interest, or penalties
9that arise from claims resulting from the enactment of
10this Act, for sales occurring between July 1, 2005, and the
11effective date of this Act, shall be limited to twenty-five
12thousand dollars in the aggregate and shall not be allowed
13unless refund claims are filed prior to October 1, 2017,
14notwithstanding any other provision of law to the contrary.
15If the amount of claims totals more than twenty-five thousand
16dollars in the aggregate, the department of revenue shall
17prorate the twenty-five thousand dollars among all claimants in
18relation to the amounts of the claimants’ valid claims.
19 Sec. 3. EFFECTIVE UPON ENACTMENT. This Act, being deemed of
20immediate importance, takes effect upon enactment.
21 Sec. 4. RETROACTIVE APPLICABILITY. This Act applies
22retroactively to July 1, 2005.
23EXPLANATION
24The inclusion of this explanation does not constitute agreement with
25the explanation’s substance by the members of the general assembly.
26This bill exempts from the sales tax the sales price of
27chemicals, sorbents, or reagents sold, or test laboratory
28services furnished, to a nonprofit human blood collection
29and processing establishment that meets the definition of
30establishment in 21 C.F.R.§607.3(c). That federal regulation
31defines “establishment” to mean a place of business under
32one management at one general physical location. The term
33includes, among others, human blood and plasma donor centers,
34blood banks, transfusion services, other blood product
35manufacturers, and independent laboratories that engage in
-1-1quality control and testing for registered blood product
2establishments.
3By operation of Code section 423.6, an item exempt from the
4imposition of the sales tax is also exempt from the use tax
5imposed in Code section 423.5.
6The bill limits refunds of taxes, interest, or penalties
7arising from claims resulting from the enactment of the bill
8for sales occurring between July 1, 2005, and the effective
9date of the bill to $25,000 in the aggregate, and requires such
10claims to be filed prior to October 1, 2017. If the aggregate
11amount of refund claims exceeds $25,000, the department of
12revenue is required to prorate the $25,000 among all claimants
13in relation to each claim amount.
14The bill takes effect upon enactment and applies
15retroactively to July 1, 2005.
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