Bill Text: IA HSB629 | 2019-2020 | 88th General Assembly | Introduced
Bill Title: A bill for an act relating to the sales and use tax by modifying the sales and use tax exemption for materials and certain machinery and equipment used in agricultural production.
Spectrum: Committee Bill
Status: (N/A - Dead) 2020-02-06 - Subcommittee Meeting: 02/11/2020 4:00PM House Lounge. [HSB629 Detail]
Download: Iowa-2019-HSB629-Introduced.html
House
Study
Bill
629
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
WAYS
AND
MEANS
BILL
BY
CHAIRPERSON
HEIN)
A
BILL
FOR
An
Act
relating
to
the
sales
and
use
tax
by
modifying
the
sales
1
and
use
tax
exemption
for
materials
and
certain
machinery
2
and
equipment
used
in
agricultural
production.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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Section
1.
Section
423.1,
subsection
5,
Code
2020,
is
1
amended
to
read
as
follows:
2
5.
“Agricultural
production”
includes
means
the
production
3
of
flowering,
ornamental,
or
vegetable
plants
in
commercial
4
greenhouses
or
otherwise,
and
production
from
aquaculture,
and
5
production
from
silvicultural
activities
agricultural
products
6
for
intended
sale
or
livestock
consumption
and
related
land
7
management
practices
.
“Agricultural
products”
includes
but
is
8
not
limited
to
corn,
eggs,
fruit,
hay,
honey,
livestock,
milk,
9
oats,
soybeans,
vegetables,
wheat,
and
includes
flowering,
10
ornamental,
or
vegetable
plants
and
those
products
of
11
aquaculture
and
silviculture.
12
Sec.
2.
Section
423.3,
subsection
6,
Code
2020,
is
amended
13
to
read
as
follows:
14
6.
a.
The
sales
price
of
tangible
personal
property
which
15
will
be
consumed
as
fuel
in
creating
heat,
power,
or
steam
for
16
grain
drying,
or
for
providing
heat
or
cooling
for
livestock
or
17
livestock
buildings
or
for
greenhouses
or
buildings
or
parts
of
18
buildings
dedicated
to
the
production
of
flowering,
ornamental,
19
or
vegetable
plants
intended
for
sale
in
the
ordinary
course
of
20
business,
or
for
use
in
cultivation
of
agricultural
products
21
by
aquaculture,
or
in
implements
of
husbandry
engaged
in
22
agricultural
production.
23
b.
(1)
The
sales
price
of
tangible
personal
property
that
24
is
designed
to
hold
propane
which
will
be
consumed
as
fuel
25
in
creating
heat,
power,
or
steam
for
grain
drying,
or
for
26
providing
heat
or
cooling
for
livestock
or
livestock
buildings.
27
(2)
Exempt
property
in
subparagraph
(1)
includes
attached
28
valves,
regulators,
and
piping.
29
Sec.
3.
Section
423.3,
subsection
8,
paragraph
a,
30
subparagraph
(1),
Code
2020,
is
amended
to
read
as
follows:
31
(1)
The
farm
machinery
and
equipment
shall
be
directly
and
32
primarily
used
in
production
of
agricultural
products.
33
Sec.
4.
Section
423.3,
subsection
11,
paragraph
a,
Code
34
2020,
is
amended
to
read
as
follows:
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a.
The
implement,
machinery,
or
equipment
is
directly
and
1
primarily
used
in
livestock
or
dairy
production,
aquaculture
2
production,
or
the
production
of
flowering,
ornamental,
or
3
vegetable
plants.
4
EXPLANATION
5
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
6
the
explanation’s
substance
by
the
members
of
the
general
assembly.
7
This
bill
relates
to
the
sales
and
use
tax
by
modifying
the
8
sales
and
use
tax
exemption
for
materials
used
in
agricultural
9
production,
and
for
certain
machinery
and
equipment
used
in
10
such
production.
11
The
bill
modifies
the
definition
of
“agricultural
12
production”
in
Code
section
423.3(5)
to
include
the
13
production
of
agricultural
products
for
intended
sale
or
14
livestock
consumption
and
related
land
management
practices.
15
“Agricultural
products”
is
modified
to
include
corn,
eggs,
16
fruit,
hay,
honey,
livestock,
milk,
oats,
soybeans,
vegetables,
17
and
wheat.
18
The
amendment
to
the
definition
of
“agricultural
production”
19
in
Code
section
423.1(5)
affects
the
application
of
the
20
following
provisions:
Code
sections
423.1(19)
(definition
of
21
farm
machinery
and
equipment),
423.2(6)(ax)
(services
related
22
to
the
storage
of
agricultural
products),
423.3(5)
(exempt
23
agricultural
products),
423.3(6)
(exempt
sales
price
of
fuel
24
used
in
agricultural
production),
423.3(8)
(exempt
specialized
25
machinery
used
in
agricultural
production),
423.3(10)
26
(exempt
gas,
electricity,
water,
or
heat
used
in
agricultural
27
production),
423.3(47)
(machinery
and
equipment),
and
423.45(5)
28
(refunds
of
taxed
fuel
used
in
agricultural
production).
29
The
amendment
to
Code
section
423.3(6)
exempts
from
the
30
sales
and
use
tax
the
sales
price
of
fuel
for
providing
heat
or
31
cooling
for
livestock.
Currently,
the
sales
price
of
such
fuel
32
is
exempt
from
the
sales
and
use
tax
if
the
fuel
heats
or
cools
33
a
livestock
building.
34
The
amendment
to
Code
section
423.3(6)
exempts
from
the
35
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sales
and
use
tax
the
sales
price
of
tangible
personal
property
1
that
is
designed
to
hold
propane
which
will
be
consumed
as
fuel
2
in
creating
heat,
power,
or
steam
for
grain
drying,
livestock,
3
or
livestock
buildings.
The
exemption
also
includes
valves,
4
regulators,
and
piping
attached
to
the
property
designed
to
5
hold
propane.
6
The
amendment
to
Code
section
423.3(8)(a)(1)
exempts
from
7
the
sales
and
use
tax
the
sales
price
of
farm
machinery
and
8
equipment
used
primarily
in
the
production
of
agricultural
9
products.
Currently,
the
sales
price
of
farm
machinery
and
10
equipment
must
be
used
directly
and
primarily
in
production
of
11
agricultural
products
in
order
to
be
exempt
from
the
sales
and
12
use
tax.
13
The
amendment
to
Code
section
423.3(11)
requires
that
14
the
sales
price
of
an
implement,
machinery,
or
equipment
be
15
primarily
used
in
livestock
or
dairy
production,
aquaculture
16
production,
or
the
production
of
flowering,
ornamental,
or
17
vegetable
plants
in
order
for
the
sales
of
such
items
to
be
18
exempt
from
the
sales
and
use
tax.
Current
law
requires
such
19
items
to
be
directly
and
primarily
used
for
such
purposes.
20
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