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Bill > HF1033
IA HF1033
IA HF1033A bill for an act making a rural water district a designated exempt entity for purposes of the sales and use tax.(Formerly HSB 226.)
summary
Introduced
04/24/2025
04/24/2025
In Committee
05/12/2025
05/12/2025
Crossed Over
05/12/2025
05/12/2025
Passed
Dead
Introduced Session
91st General Assembly
Bill Summary
This bill makes a nonprofit rural water district organized under Code chapter 504 as provided in Code chapter 357A a designated exempt entity, which allows the nonprofit rural water district to apply to the department of revenue for the refund of the sales and use tax upon sales of building materials, supplies, and equipment, or from services furnished by a contractor in the performance of a written contract with the rural water district, if certain circumstances relating to the contract are met. By designating a rural water district a designated exempt entity under the bill, construction services provided to the water district also become exempt from the sales tax which is different than the sales tax exemption under current law. Under current law, the building materials, supplies, or equipment sold to a rural water district for the construction of facilities are exempt from the sales tax in Code section 423.3(38). The bill strikes the current rural water sales tax exemption in Code section 423.3(38) so two separate and distinct sales tax exemptions do not exist at the same time relating to building materials, supplies, or equipment sold to a rural water district.
AI Summary
This bill modifies Iowa's sales and use tax regulations for rural water districts by designating them as a new type of exempt entity. Specifically, the bill adds rural water districts organized under chapters 504 and 357A to the list of entities that can apply to the department of revenue for sales and use tax refunds on building materials, supplies, equipment, and construction services. The bill eliminates the previous sales tax exemption for rural water districts found in Code section 423.3(38), effectively replacing the existing exemption with a broader, more comprehensive tax exemption mechanism. By making this change, the bill allows rural water districts to receive refunds on sales and use taxes for purchases and services related to their infrastructure and operational needs, which could potentially reduce the financial burden on these nonprofit water service organizations and ultimately benefit the rural communities they serve.
Committee Categories
Budget and Finance
Sponsors (0)
No sponsors listed
Other Sponsors (1)
Ways and Means (House)
Last Action
Explanation of vote. H.J. 1223. (on 05/20/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.legis.iowa.gov/legislation/BillBook?ga=91&ba=HF1033 |
| Fiscal Note - Sales Tax Exemption, Rural Water Districts | https://www.legis.iowa.gov/docs/publications/FN/1526769.pdf |
| BillText | https://www.legis.iowa.gov/docs/publications/LGI/91/attachments/HF1033.html |
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