Senate File 6 - Introduced SENATE FILE 6 BY LOFGREN A BILL FOR An Act exempting from the sales tax and the use tax certain 1 building materials, supplies, goods, wares, merchandise, or 2 specified digital products sold, or services furnished, to 3 a nonprofit whose primary activity is the construction of 4 low-cost homes by incarcerated individuals, and providing 5 for an effective date. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 7 TLSB 1347XS (1) 90 jm/jh
S.F. 6 Section 1. Section 423.3, Code 2023, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 110. The sales price from the sale of 3 building materials, supplies, goods, wares, merchandise, 4 or specified digital products sold, or services furnished, 5 to a nonprofit organization whose primary activity is the 6 construction of new, low-cost homes by incarcerated individuals 7 for use by qualified persons in areas of the state in need of 8 housing and where the building materials, supplies, goods, 9 wares, merchandise, specified digital products, or services, 10 are used in the construction of such homes. 11 Sec. 2. EFFECTIVE DATE. This Act, being deemed of immediate 12 importance, takes effect upon enactment. 13 EXPLANATION 14 The inclusion of this explanation does not constitute agreement with 15 the explanation’s substance by the members of the general assembly. 16 This bill exempts from the sales tax certain building 17 materials, supplies, goods, wares, merchandise, or specified 18 digital products sold, or services furnished, to a nonprofit 19 organization whose primary activity is the construction of new, 20 low-cost homes by incarcerated individuals for use by qualified 21 persons in areas of the state in need of housing. The bill 22 requires the building materials, supplies, good, wares, 23 merchandise, specified digital products, or services exempt 24 from sales tax to be used in the construction of new homes. 25 By operation of Code section 423.6, an item exempt from the 26 imposition of the sales tax is also exempt from the use tax 27 imposed in Code section 423.5. 28 The bill takes effect upon enactment. 29 -1- LSB 1347XS (1) 90 jm/jh 1/ 1