Bill Text: IA SSB3168 | 2015-2016 | 86th General Assembly | Introduced
Bill Title: A study 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.
Spectrum: Unknown
Status: (Introduced - Dead) 2016-04-19 - Voted - Ways and Means. [SSB3168 Detail]
Download: Iowa-2015-SSB3168-Introduced.html
Senate
Study
Bill
3168
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
WAYS
AND
MEANS
BILL
BY
CHAIRPERSON
BOLKCOM)
A
BILL
FOR
An
Act
amending
the
sales
and
use
tax
exemption
for
the
1
sale
of
goods
and
services
furnished
in
fulfillment
of
a
2
written
construction
contract
with
a
nonprofit
hospital,
3
and
including
effective
date
and
retroactive
applicability
4
provisions.
5
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
6
TLSB
6034XC
(1)
86
mm/sc
S.F.
_____
Section
1.
Section
423.3,
subsection
29,
Code
2016,
is
1
amended
to
read
as
follows:
2
29.
The
sales
price
of
all
goods,
wares,
or
merchandise
3
sold,
or
of
services
furnished,
which
are
used
in
the
4
fulfillment
of
a
written
construction
contract
with
a
nonprofit
5
hospital
licensed
pursuant
to
chapter
135B
if
all
of
the
6
following
apply:
7
a.
The
sales
and
delivery
of
the
goods,
wares,
or
8
merchandise,
or
the
services
furnished
,
occurred
between
July
9
January
1,
1998
2014
,
and
December
31,
2001
2016
.
10
b.
The
written
construction
contract
was
entered
into
on
or
11
after
January
1,
2014,
but
prior
to
December
31,
1999
2015
,
or
12
bonds
to
fund
the
construction
were
issued
on
or
after
July
1,
13
2014,
but
prior
to
December
31,
1999
2015
.
14
c.
The
sales
or
services
were
purchased
directly
by
a
15
contractor
,
or
by
a
contractor
as
the
agent
for
the
hospital
,
16
or
were
purchased
directly
by
the
hospital.
17
Sec.
2.
EFFECTIVE
UPON
ENACTMENT.
This
Act,
being
deemed
of
18
immediate
importance,
takes
effect
upon
enactment.
19
Sec.
3.
RETROACTIVE
APPLICABILITY.
This
Act
applies
20
retroactively
to
January
1,
2014,
for
sales
of
tangible
21
personal
property
made,
and
services
furnished,
on
or
after
22
that
date.
23
EXPLANATION
24
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
25
the
explanation’s
substance
by
the
members
of
the
general
assembly.
26
This
bill
relates
to
the
sales
and
use
tax
exemption
for
27
sales
of
goods
and
services
made
in
fulfillment
of
a
written
28
construction
contract
with
a
nonprofit
hospital
licensed
29
pursuant
to
Code
chapter
135B.
In
order
to
qualify
for
the
30
sales
and
use
tax
exemption
under
current
law,
the
sales
of
31
goods
or
services
must
have
occurred
between
July
1,
1998,
and
32
December
31,
2001,
and
the
written
construction
contract
or
33
construction
bonds
must
have
been
entered
into
or
issued
prior
34
to
December
31,
1999.
35
-1-
LSB
6034XC
(1)
86
mm/sc
1/
2
S.F.
_____
The
bill
amends
these
dates
to
provide
that
the
exemption
1
will
apply
if
the
sales
of
goods
or
services
occur
between
2
January
1,
2014,
and
December
31,
2016,
and
if
the
written
3
construction
contract
is
entered
into
on
or
after
January
1,
4
2014,
but
before
December
31,
2015,
or
the
construction
bonds
5
are
issued
on
or
after
July
1,
2014,
but
before
December
31,
6
2015.
7
Also
under
current
law,
the
exemption
only
applies
if
the
8
goods
or
services
were
purchased
by
a
contractor
as
the
agent
9
for
the
hospital
or
were
purchased
directly
by
the
hospital.
10
The
bill
provides
that
the
exemption
will
also
apply
if
the
11
goods
or
services
were
purchased
directly
by
a
contractor.
12
By
operation
of
Code
section
423.6,
an
item
exempt
from
the
13
imposition
of
the
sales
tax
is
also
exempt
from
the
use
tax
14
imposed
in
Code
section
423.5.
15
The
bill
takes
effect
upon
enactment
and
applies
16
retroactively
to
January
1,
2014,
to
sales
of
goods
and
17
services
on
or
after
that
date.
18
-2-
LSB
6034XC
(1)
86
mm/sc
2/
2
