Bill Text: IA HF2035 | 2023-2024 | 90th General Assembly | Introduced


Bill Title: A bill for an act providing sales and use tax refunds on the sales price of materials, equipment, and services used in the performance of a written construction contract with a nonprofit hospital, and including applicability provisions.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2024-01-31 - Subcommittee recommends passage. Vote Total: 3-0. [HF2035 Detail]

Download: Iowa-2023-HF2035-Introduced.html
House File 2035 - Introduced HOUSE FILE 2035 BY BEST A BILL FOR An Act providing sales and use tax refunds on the sales 1 price of materials, equipment, and services used in the 2 performance of a written construction contract with a 3 nonprofit hospital, and including applicability provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5558YH (1) 90 jm/jh
H.F. 2035 Section 1. Section 423.4, subsection 1, paragraph a, Code 1 2024, is amended by adding the following new subparagraph: 2 NEW SUBPARAGRAPH . (10) A hospital defined in section 135B.1 3 that is a nonprofit and is located in this state. 4 Sec. 2. APPLICABILITY. This Act applies to written 5 contracts for construction projects entered into with a 6 nonprofit hospital on or after January 1, 2025. 7 EXPLANATION 8 The inclusion of this explanation does not constitute agreement with 9 the explanation’s substance by the members of the general assembly. 10 This bill provides sales and use tax refunds on the sales 11 price of materials, equipment, and services used in the 12 performance of a written construction contract with a nonprofit 13 hospital. 14 Under the bill, a nonprofit hospital may apply to the 15 department of revenue for the refund of the sales or use tax 16 upon the sales price of materials, equipment, and services 17 if all of the following apply: the materials, equipment, 18 and services are completely consumed in the performance of 19 the construction project with the nonprofit hospital; the 20 property that is subject of the construction project becomes 21 public property or the property of the nonprofit hospital; and 22 the construction project is not used in connection with the 23 operation of a municipal utility or used in a construction 24 project under Code chapter 419 (municipal support projects). 25 The bill defines “hospital” to mean the same as a hospital 26 defined in Code section 135B.1 that is a nonprofit and is 27 located in this state. 28 The bill applies to written contracts for construction 29 projects entered into with a nonprofit hospital on or after 30 January 1, 2025. 31 -1- LSB 5558YH (1) 90 jm/jh 1/ 1
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