Exempting from the state sales and use tax the purchase price of specified digital products, prewritten computer software, and related services sold to public utilities, and including effective date provisions

Where it is now

1. ✓
   Done: IntroducedFebruary 23, 2022
2. –
   Skipped: SubcommitteeSkipped
3. ✓
   Done: House committeeMarch 7, 2022
4. ✓
   Done: Passes the HouseMarch 7, 202295–0
5. ✕
   Stopped: Senate committeeDied when the General Assembly ended
6. Next: Passes the Senate
7. Next: To the Governor
8. Next: Signed into law

Died when the session ended The General Assembly adjourned on May 24, 2022. Bills that didn’t pass both chambers died. What’s a funnel?

What’s in it

This bill exempts from the state sales and use tax the purchase price of specified digital products, prewritten computer software, and related services sold to public utilities. The bill expands the definition of “commercial enterprise” to include a “public utility” as defined in Code section 476.1(3). As a result, the sales price of specified digital products, prewritten computer software, and other enumerated digital and computer services furnished to a public utility are exempt from the sales tax, if exclusively used by the public utility. By operation of Code section 423.6, an item exempt from the imposition of the sales tax is also exempt from the use tax imposed in Code section 423.5. The bill takes effect January 1, 2023.

From the explanation printed with the bill as introduced, written by the Legislative Services Agency. Amendments adopted later aren’t reflected. Full bill text

Senate subcommittee

Named March 8, 2022. It hasn’t reported yet.

• Sen. Tim Goodwin R
• Sen. Dan Dawson REmail
• Sen. Pam Jochum D

Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part

Fiscal note

Less revenue: up to $20,000 Compare with other bills

House File 2520 will reduce revenues to the General Fund and local option sales tax (LOST) by the estimated amounts listed below.General Fund LOST FY 2023 130,000$ 20,000$ FY 2024 230,000 40,000 FY 2025 240,000 40,000 FY 2026 240,000 40,000 FY 2027 250,000 40,000 Estimated Revenue Reduction of HF 2520 Fiscal Note Fiscal Services Division 2

• Sales Tax Exemption, Digital Goods · February 28, 2022

Nonpartisan cost estimates from the Legislative Services Agency’s Fiscal Services Division. The newest is first. Reading a fiscal note

Iowa Code it changes

Amends§423.3

Read from the bill as introduced. Each links to every bill touching that chapter of the Iowa Code. How the Code works