Bill Text: IA HF132 | 2017-2018 | 87th General Assembly | Introduced
Bill Title: A bill for an act exempting from the sales tax certain items and services sold to a nonprofit human blood collection and processing establishment, including effective date and retroactive applicability provisions.
Sponsorship: Partisan Bill (Republican 1)
Status: (Introduced - Dead) 2017-01-27 - Introduced, referred to Ways and Means. H.J. 132. [HF132 Detail]
Download: Iowa-2017-HF132-Introduced.html
House File 132 - Introduced HOUSE FILE BY NUNN A BILL FOR 1 An Act exempting from the sales tax certain items and services 2 sold to a nonprofit human blood collection and processing 3 establishment, including effective date and retroactive 4 applicability provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 1918YH (2) 87 mm/sc PAG LIN 1 1 Section 1. Section 423.3, Code 2017, is amended by adding 1 2 the following new subsection: 1 3 NEW SUBSECTION. 44. The sales price of chemicals, solvents, 1 4 sorbents, or reagents sold, or test laboratory services 1 5 furnished, to a nonprofit human blood collection and processing 1 6 establishment that meets the definition of establishment in 21 1 7 C.F.R. {607.3(c). 1 8 Sec. 2. REFUNDS. Refunds of taxes, interest, or penalties 1 9 that arise from claims resulting from the enactment of 1 10 this Act, for sales occurring between July 1, 2005, and the 1 11 effective date of this Act, shall be limited to twenty=five 1 12 thousand dollars in the aggregate and shall not be allowed 1 13 unless refund claims are filed prior to October 1, 2017, 1 14 notwithstanding any other provision of law to the contrary. 1 15 If the amount of claims totals more than twenty=five thousand 1 16 dollars in the aggregate, the department of revenue shall 1 17 prorate the twenty=five thousand dollars among all claimants in 1 18 relation to the amounts of the claimants' valid claims. 1 19 Sec. 3. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 1 20 immediate importance, takes effect upon enactment. 1 21 Sec. 4. RETROACTIVE APPLICABILITY. This Act applies 1 22 retroactively to July 1, 2005. 1 23 EXPLANATION 1 24 The inclusion of this explanation does not constitute agreement with 1 25 the explanation's substance by the members of the general assembly. 1 26 This bill exempts from the sales tax the sales price of 1 27 chemicals, sorbents, or reagents sold, or test laboratory 1 28 services furnished, to a nonprofit human blood collection 1 29 and processing establishment that meets the definition of 1 30 establishment in 21 C.F.R. {607.3(c). That federal regulation 1 31 defines "establishment" to mean a place of business under 1 32 one management at one general physical location. The term 1 33 includes, among others, human blood and plasma donor centers, 1 34 blood banks, transfusion services, other blood product 1 35 manufacturers, and independent laboratories that engage in 2 1 quality control and testing for registered blood product 2 2 establishments. 2 3 By operation of Code section 423.6, an item exempt from the 2 4 imposition of the sales tax is also exempt from the use tax 2 5 imposed in Code section 423.5. 2 6 The bill limits refunds of taxes, interest, or penalties 2 7 arising from claims resulting from the enactment of the bill 2 8 for sales occurring between July 1, 2005, and the effective 2 9 date of the bill to $25,000 in the aggregate, and requires such 2 10 claims to be filed prior to October 1, 2017. If the aggregate 2 11 amount of refund claims exceeds $25,000, the department of 2 12 revenue is required to prorate the $25,000 among all claimants 2 13 in relation to each claim amount. 2 14 The bill takes effect upon enactment and applies 2 15 retroactively to July 1, 2005. LSB 1918YH (2) 87 mm/sc
