Bill Text: IA SSB1157 | 2019-2020 | 88th General Assembly | Introduced
Bill Title: A bill for an act relating to sales tax exemptions on the sale of instructional materials at postsecondary institutions and on sales where profits are used by or donated to such institutions.
Spectrum: Committee Bill
Status: (N/A - Dead) 2019-02-14 - Subcommittee: Feenstra, Jochum and Schultz. [SSB1157 Detail]
Download: Iowa-2019-SSB1157-Introduced.html
Senate
Study
Bill
1157
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
WAYS
AND
MEANS
BILL
BY
CHAIRPERSON
FEENSTRA)
A
BILL
FOR
An
Act
relating
to
sales
tax
exemptions
on
the
sale
of
1
instructional
materials
at
postsecondary
institutions
2
and
on
sales
where
profits
are
used
by
or
donated
to
such
3
institutions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
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Section
1.
Section
423.3,
subsection
78,
Code
2019,
is
1
amended
by
adding
the
following
new
paragraph:
2
NEW
PARAGRAPH
.
d.
This
exemption
does
not
apply
to
the
3
sales
price
from
the
sale
of
tangible
personal
property
or
4
services
the
profits
from
which
are
used
by
or
donated
to
a
5
postsecondary
institution
or
an
entity
under
the
control
of
a
6
postsecondary
institution.
For
purposes
of
this
paragraph,
7
“postsecondary
institution”
means
the
same
as
defined
in
8
subsection
107.
9
Sec.
2.
Section
423.3,
Code
2019,
is
amended
by
adding
the
10
following
new
subsection:
11
NEW
SUBSECTION
.
107.
a.
The
sales
price
from
the
sale
of
12
instructional
materials
required
for
a
course
of
instruction
13
at
a
postsecondary
institution
in
this
state,
when
purchased
14
for
use
by
a
student
enrolled
in
such
course
of
instruction
at
15
the
postsecondary
institution.
16
b.
For
purposes
of
this
subsection:
17
(1)
“Instructional
materials”
means
books,
textbooks,
18
and
other
written
course
materials,
whether
in
printed
or
19
electronic
form,
and
classroom
equipment.
20
(2)
“Postsecondary
institution”
means
an
institution
21
of
higher
learning
under
the
control
of
the
state
board
of
22
regents,
a
community
college
established
under
chapter
260C,
or
23
an
accredited
private
institution
as
defined
in
section
261.9.
24
(3)
“Required
for
a
course
of
instruction”
means
integral
to
25
completion
of
a
course
of
instruction
and
uniquely
identified
26
by
a
postsecondary
institution
as
required
for
such
course.
27
Instructional
materials
that
primarily
enhance
or
assist
in
the
28
facilitation
of
learning
shall
not
be
considered
to
be
“required
29
for
a
course
of
instruction”
.
30
EXPLANATION
31
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
32
the
explanation’s
substance
by
the
members
of
the
general
assembly.
33
This
bill
relates
to
sales
tax
exemptions
on
the
sale
of
34
instructional
materials
at
postsecondary
institutions
and
35
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_____
on
the
sales
where
profits
are
used
by
or
donated
to
such
1
institutions.
2
The
bill
provides
a
sales
tax
exemption
for
the
sale
of
3
instructional
materials
required
for
a
course
of
instruction
4
at
a
postsecondary
institution
in
this
state,
when
purchased
5
for
use
by
a
student
enrolled
in
such
course
of
instruction
at
6
the
postsecondary
institution.
“Postsecondary
institution”,
7
“instructional
materials”,
and
“required
for
a
course
of
8
instruction”
are
defined
in
the
bill.
9
The
bill
excludes
postsecondary
institutions
from
the
10
sales
tax
exemption
for
sales
where
the
profits
are
used
by
11
or
donated
to
certain
nonprofit
entities
for
educational,
12
religious,
or
charitable
purposes.
13
By
operation
of
Code
section
423.6,
an
item
exempt
from
the
14
imposition
of
the
sales
tax
is
also
exempt
from
the
use
tax
15
imposed
in
Code
section
423.5.
16
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