House File 579 - Introduced
HOUSE FILE 579
BY SALMON, BROWN-POWERS,
KRESSIG, HANSEN, GUSTAFSON,
GOBBLE, THOMPSON, SORENSEN,
MOORE, BAXTER, BRADLEY,
BODEN, STONE, FISHER,
GERHOLD, KURTH, STECKMAN,
DONAHUE, WINCKLER, CAHILL,
SMITH, WOLFE, THEDE,
MASCHER, JUDGE, HUNTER,
EHLERT, JAMES, JACOBY,
GJERDE, STAED, OSMUNDSON,
McCONKEY, KONFRST, SUNDE,
B. MEYER, WILLIAMS, FORBES,
JENEARY, and ANDREWS
A BILL FOR
1 An Act exempting from the state sales tax and use tax the
2 purchase price of tangible personal property or specified
3 digital products sold and services furnished to a nonprofit
4 food bank.
5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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 H.F. 579
1 Section 1. Section 423.3, Code 2021, is amended by adding
2 the following new subsection:
3 NEW SUBSECTION. 107. The sales price from the sale or
4 rental of tangible personal property or specified digital
5 products, or services furnished, to a nonprofit food bank,
6 which tangible personal property, specified digital products,
7 or services are to be used by the nonprofit food bank for a
8 charitable purpose. For purposes of this subsection, “nonprofit
9 food bank” means an organization organized under chapter 504
10 and qualifying under section 501(c)(3) of the Internal Revenue
11 Code as an organization exempt from federal income tax under
12 section 501(a) of the Internal Revenue Code that maintains
13 an established operation involving the provision of food or
14 edible commodities or the products thereof on a regular basis
15 to persons in need with distribution through food pantries,
16 soup kitchens, hunger relief centers, or other food or feeding
17 centers that, as an integral part of their normal activities,
18 provide meals or food on a regular basis to persons in need.
19 EXPLANATION
20 The inclusion of this explanation does not constitute agreement with
21 the explanation’s substance by the members of the general assembly.
22 This bill exempts from the sales tax the purchase price from
23 the sale or rental of tangible personal property or specified
24 digital products, or services furnished, to a nonprofit
25 food bank if the property or services are to be used by the
26 nonprofit food bank for a charitable purpose. “Nonprofit food
27 bank” is defined in the bill.
28 By operation of Code section 423.6, an item exempt from the
29 imposition of the sales tax is also exempt from the use tax
30 imposed in Code section 423.5.
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Statutes affected:
Introduced: 423.3