This bill exempts sales and use taxes incurred by a nonprofit corporation for the construction of a regional water trail system. It designates a nonprofit corporation organized under Code chapter 504 as a "designated exempt entity," allowing it to apply for refunds of sales and use tax on purchases of building materials, supplies, and services related to its construction projects. The nonprofit is defined as one that has a majority of its voting board members appointed by political subdivisions of the state and is involved in implementing a regional recreational and dam safety plan.

Additionally, the bill amends existing tax code provisions to clarify that the sales price of tangible personal property or specified digital products sold to the nonprofit, as well as services provided under written contracts with the nonprofit, are exempt from sales tax. The bill also specifies that the exemption applies even if another designated exempt entity ultimately owns the property involved in the construction project. The legislation takes effect immediately upon enactment and has retroactive applicability to January 1, 2025, for all relevant transactions occurring on or after that date.

Statutes affected:
Introduced: 423.3, 423.4