Bill Text: IA HF545 | 2015-2016 | 86th General Assembly | Introduced

Iowa House Bill 545 (Prior Session Legislation)

Introduced

Bill Title: A bill for an act amending the sales and use tax exemption for the sale of goods and services furnished in fulfillment of a written construction contract with a nonprofit hospital, and including effective date and retroactive applicability provisions. (Formerly HSB 190)

Spectrum: Committee Bill

Status: (Introduced - Dead) 2015-03-26 - Passed subcommittee. [HF545 Detail]

Download: Iowa-2015-HF545-Introduced.html

House File 545 - Introduced




                                 HOUSE FILE       
                                 BY  COMMITTEE ON HUMAN
                                     RESOURCES

                                 (SUCCESSOR TO HSB 190)

                                      A BILL FOR

  1 An Act amending the sales and use tax exemption for the
  2    sale of goods and services furnished in fulfillment of a
  3    written construction contract with a nonprofit hospital,
  4    and including effective date and retroactive applicability
  5    provisions.
  6 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, subsection 29, Code 2015, is
  1  2 amended to read as follows:
  1  3    29.  The sales price of all goods, wares, or merchandise
  1  4 sold, or of services furnished, which are used in the
  1  5 fulfillment of a written construction contract with a nonprofit
  1  6 hospital licensed pursuant to chapter 135B if all of the
  1  7 following apply:
  1  8    a.  The sales and delivery of the goods, wares, or
  1  9 merchandise, or the services furnished, occurred between July
  1 10  January 1, 1998 2014, and December 31, 2001 2016.
  1 11    b.  The written construction contract was entered into on or
  1 12 after January 1, 2014, but prior to December 31, 1999 2015, or
  1 13 bonds to fund the construction were issued on or after July 1,
  1 14 2014, but prior to December 31, 1999 2015.
  1 15    c.  The sales or services were purchased directly by a
  1 16 contractor, or by a contractor as the agent for the hospital,
  1 17  or were purchased directly by the hospital.
  1 18    Sec. 2.  EFFECTIVE UPON ENACTMENT.  This Act, being deemed of
  1 19 immediate importance, takes effect upon enactment.
  1 20    Sec. 3.  RETROACTIVE APPLICABILITY.  This Act applies
  1 21 retroactively to January 1, 2014, for sales of tangible
  1 22 personal property made, and services furnished, on or after
  1 23 that date.
  1 24                           EXPLANATION
  1 25 The inclusion of this explanation does not constitute agreement with
  1 26 the explanation's substance by the members of the general assembly.
  1 27    This bill relates to the sales and use tax exemption for
  1 28 sales of goods and services made in fulfillment of a written
  1 29 construction contract with a nonprofit hospital licensed
  1 30 pursuant to Code chapter 135B.  In order to qualify for the
  1 31 sales and use tax exemption under current law, the sales of
  1 32 goods or services must have occurred between July 1, 1998, and
  1 33 December 31, 2001, and the written construction contract or
  1 34 construction bonds must have been entered into or issued prior
  1 35 to December 31, 1999.
  2  1 The bill amends these dates to provide that the exemption
  2  2 will apply if the sales of goods or services occur between
  2  3 January 1, 2014, and December 31, 2016, and if the written
  2  4 construction contract is entered into on or after January 1,
  2  5 2014, but before December 31, 2015, or the construction bonds
  2  6 are issued on or after July 1, 2014, but before December 31,
  2  7 2015.
  2  8    Also under current law, the exemption only applies if the
  2  9 goods or services were purchased by a contractor as the agent
  2 10 for the hospital or were purchased directly by the hospital.
  2 11 The bill provides that the exemption will also apply if the
  2 12 goods or services were purchased directly by a contractor.
  2 13    By operation of Code section 423.6, an item exempt from the
  2 14 imposition of the sales tax is also exempt from the use tax
  2 15 imposed in Code section 423.5.
  2 16    The bill takes effect upon enactment and applies
  2 17 retroactively to January 1, 2014, to sales of goods and
  2 18 services on or after that date.
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