Bill Text: IA HF484 | 2015-2016 | 86th General Assembly | Introduced

Iowa House Bill 484 (Prior Session Legislation)

Introduced

Bill Title: A bill for an act relating to a sales tax holiday for instructional materials sold to college students.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Introduced - Dead) 2015-03-04 - Introduced, referred to Ways & Means. H.J. 461. [HF484 Detail]

Download: Iowa-2015-HF484-Introduced.html

House File 484 - Introduced




                                 HOUSE FILE       
                                 BY  KELLEY

                                      A BILL FOR

  1 An Act relating to a sales tax holiday for instructional
  2    materials sold to college students.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN



  1  1    Section 1.  Section 423.3, Code 2015, is amended by adding
  1  2 the following new subsection:
  1  3    NEW SUBSECTION.  68A.  a.  The sales price of instructional
  1  4 materials sold to students for classroom use at a postsecondary
  1  5 educational institution, or for use in an extracurricular
  1  6 activity sponsored by the postsecondary educational
  1  7 institution, if all of the following apply:
  1  8    (1)  The sale is made to a person who is a student at a
  1  9 postsecondary educational institution in this state and who has
  1 10 verified that status to the retailer.
  1 11    (2)  The instructional materials have been uniquely
  1 12 identified and certified to a retailer by a postsecondary
  1 13 educational institution as required for classroom use or for
  1 14 use in a sponsored extracurricular activity.
  1 15    (3)  The sale takes place during one of the following:
  1 16    (a)  The period beginning at 12:01 a.m. on the third Monday
  1 17 in August and ending at midnight on the following Tuesday.
  1 18    (b)  The period beginning at 12:01 a.m. on the third Monday
  1 19 in January and ending at midnight on the following Tuesday.
  1 20    b.  For purposes of this subsection:
  1 21    (1)  "Extracurricular activity" includes a sporting event,
  1 22 musical or dramatic event, speech activity, or programs of a
  1 23 similar nature.
  1 24    (2)  "Instructional materials" means books, textbooks,
  1 25 printed materials, and equipment required for classroom use
  1 26 in attending a postsecondary educational institution in this
  1 27 state, or required for use in an extracurricular activity
  1 28 sponsored by a postsecondary educational institution in this
  1 29 state.  "Instructional materials" does not include books,
  1 30 textbooks, printed materials, or equipment used in the teaching
  1 31 of religious tenets, doctrines, or worship, the purpose of
  1 32 which is to inculcate those tenets, doctrines, or worship.
  1 33    (3)  "Postsecondary educational institution" means an
  1 34 accredited higher education institution, as defined in
  1 35 section 261.92, an Iowa community college, or a postsecondary
  2  1 educational institution under the control of the state board
  2  2 of regents.
  2  3    c.  The department shall adopt rules pursuant to chapter 17A
  2  4 to administer this section, including but not limited to rules
  2  5 to establish the manner by which a person shall verify to a
  2  6 retailer the person's status as a student, and the manner by
  2  7 which a postsecondary educational institution shall identify
  2  8 and certify required instructional materials to a retailer.
  2  9                           EXPLANATION
  2 10 The inclusion of this explanation does not constitute agreement with
  2 11 the explanation's substance by the members of the general assembly.
  2 12    This bill provides a sales tax exemption for a limited
  2 13 time period for the sales price of instructional materials to
  2 14 students at postsecondary educational institutions in this
  2 15 state if the instructional materials are required for classroom
  2 16 use or for use in an extracurricular activity sponsored by
  2 17 the postsecondary educational institution. The exemption is
  2 18 available to sales in which the student verifies his or her
  2 19 status as a student to the retailer, the items being sold
  2 20 have been uniquely identified and certified to the retailer
  2 21 as required for classroom use or for use in a sponsored
  2 22 extracurricular activity, and the sale takes place during the
  2 23 calendar day on the third Monday in January or August.
  2 24    "Extracurricular activity", "instructional materials", and
  2 25 "postsecondary educational institution" are all defined in the
  2 26 bill.
  2 27    By operation of Code section 423.6, an item exempt from the
  2 28 imposition of the sales tax is also exempt from the use tax
  2 29 imposed in Code section 423.5.
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