Bill Text: IA HF2459 | 2017-2018 | 87th General Assembly | Introduced

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Bill Title: A bill for an act exempting from the state sales tax the purchase price of tangible personal property sold to a nonprofit food bank.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2018-02-28 - Subcommittee: Vander Linden, Jacoby and Windschitl. H.J. 430. [HF2459 Detail]

Download: Iowa-2017-HF2459-Introduced.html

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House File 2459 - Introduced




                                 HOUSE FILE       
                                 BY  KRESSIG

                                      A BILL FOR

  1 An Act exempting from the state sales tax the purchase price of
  2    tangible personal property sold to a nonprofit food bank.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN



  1  1    Section 1.  Section 423.3, Code 2018, is amended by adding
  1  2 the following new subsection:
  1  3    NEW SUBSECTION.  103.  The sales price from the sale of
  1  4 tangible personal property to a nonprofit food bank, which
  1  5 tangible personal property is to be used by the nonprofit
  1  6 food bank for a charitable purpose.  For purposes of this
  1  7 subsection, "nonprofit food bank" means an organization
  1  8 organized under chapter 504 and qualifying under section
  1  9 501(c)(3) of the Internal Revenue Code as an organization
  1 10 exempt from federal income tax under section 501(a) of the
  1 11 Internal Revenue Code that maintains an established operation
  1 12 involving the provision of food or edible commodities or the
  1 13 products thereof on a regular basis to persons in need or to
  1 14 food pantries, soup kitchens, hunger relief centers, or other
  1 15 food or feeding centers that, as an integral part of their
  1 16 normal activities, provide meals or food on a regular basis to
  1 17 persons in need.
  1 18                           EXPLANATION
  1 19 The inclusion of this explanation does not constitute agreement with
  1 20 the explanation's substance by the members of the general assembly.
  1 21    This bill exempts from the sales tax the purchase price from
  1 22 the sale of tangible personal property to a nonprofit food bank
  1 23 if the property is to be used by the nonprofit food bank for a
  1 24 charitable purpose.  "Nonprofit food bank" is defined in the
  1 25 bill.
  1 26    By operation of Code section 423.6, an item exempt from the
  1 27 imposition of the sales tax is also exempt from the use tax
  1 28 imposed in Code section 423.5.
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