Bill Text: IA SF2325 | 2015-2016 | 86th General Assembly | Amended

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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 SSB 3168.)

Spectrum: Committee Bill

Status: (Engrossed - Dead) 2016-04-29 - Read first time, referred to Ways & Means. H.J. 784. [SF2325 Detail]

Download: Iowa-2015-SF2325-Amended.html

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Senate File 2325 - Reprinted




                                 SENATE FILE       
                                 BY  COMMITTEE ON WAYS AND
                                     MEANS

                                 (SUCCESSOR TO SSB
                                     3168)
       (As Amended and Passed by the Senate April 28, 2016)

                                      A BILL FOR

  1 An Act providing a sales tax refund for the sale of goods and
  2    services furnished in fulfillment of a written construction
  3    contract with a qualifying nonprofit hospital, and providing
  4    penalties.
  5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
    SF 2325 (3) 86
    mm/sc/jh

PAG LIN



  1  1    Section 1.  Section 423.4, Code 2016, is amended by adding
  1  2 the following new subsection:
  1  3    NEW SUBSECTION.  12.  a.  For purposes of this subsection,
  1  4 "designated nonprofit hospital" means a nonprofit hospital
  1  5 licensed pursuant to chapter 135B that satisfies all of the
  1  6 following requirements:
  1  7    (1)  The hospital entered into a written construction
  1  8 contract on or after January 1, 2014, but prior to December 31,
  1  9 2016, or the hospital issued bonds to fund construction on or
  1 10 after July 1, 2014, but prior to December 31, 2016.
  1 11    (2)  The hospital is located in a county that borders
  1 12 Illinois and has a population of at least one hundred fifty
  1 13 thousand according to the 2010 certified federal census.
  1 14    (3)  Between July 1, 2014, and December 31, 2018, the
  1 15 hospital, including any affiliated system hospital located
  1 16 in the same county, expends more than two million dollars on
  1 17 capital expenditures for facilities to provide inpatient or
  1 18 outpatient behavioral health services, as determined by the
  1 19 department from the Medicare cost reports prepared by the
  1 20 hospital.
  1 21    b.  Beginning July 1, 2017, a designated nonprofit hospital
  1 22 in this state may make application to the department for the
  1 23 refund of the sales or use tax upon the sales price of all sales
  1 24 of goods, wares, or merchandise, or from services furnished to
  1 25 a contractor, used in the fulfillment of a written construction
  1 26 contract with the designated nonprofit hospital entered into on
  1 27 or after January 1, 2014, but prior to December 31, 2016.  In
  1 28 order to qualify for the refund, the sale and delivery of the
  1 29 goods, wares, or merchandise, or the services furnished, must
  1 30 have occurred between January 1, 2014, and December 31, 2017,
  1 31 and must have been purchased directly by a contractor, or by a
  1 32 contractor as the agent for the designated nonprofit hospital,
  1 33 or directly by the designated nonprofit hospital.
  1 34    c.  Such contractor shall state under oath, on forms provided
  1 35 by the department, the amount of such sales of goods, wares, or
  2  1 merchandise, or services furnished and used in the performance
  2  2 of such contract, and upon which sales or use tax has been
  2  3 paid, and shall file such forms with the designated nonprofit
  2  4 hospital which has made any written contract for performance
  2  5 by the contractor.
  2  6    d.  On or after July 1, 2017, but not more than three
  2  7 years after final settlement has been made, the designated
  2  8 nonprofit hospital shall make application to the department
  2  9 for any refund of the amount of the sales or use tax which
  2 10 shall have been paid upon any goods, wares, or merchandise,
  2 11 or services furnished.  The application shall be made in the
  2 12 manner prescribed by the department and upon forms provided by
  2 13 the department.  The department shall audit the claim and, if
  2 14 approved, issue a warrant to the designated nonprofit hospital
  2 15 in the amount of the sales or use tax which has been paid to the
  2 16 state of Iowa under the contract.  However, for sales and use
  2 17 tax paid between January 1, 2014, and July 1, 2017, the total
  2 18 eligible refund shall be amortized equally over two calendar
  2 19 years, and the department shall issue one warrant each calendar
  2 20 quarter for forty=eight calendar quarters until the total
  2 21 applicable refund amount has been issued.
  2 22    e.  The total amount of refunds provided pursuant to this
  2 23 subsection shall not exceed two million dollars.
  2 24    f.  Any contractor who willfully makes a false report of
  2 25 tax paid under the provisions of this subsection is guilty of
  2 26 a simple misdemeanor and in addition shall be liable for the
  2 27 payment of the tax and any applicable penalty and interest.
  2 28    g.  This subsection is repealed July 1, 2022, or thirty
  2 29 days following the date on which two million dollars in total
  2 30 refunds have been provided.
       SF 2325 (3) 86
       mm/sc/jh