Senate Study Bill 1166 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON FEENSTRA) A BILL FOR An Act exempting from the state sales and use tax the purchase 1 price of tangible personal property, specified digital 2 products, or services paid for or reimbursed by Medicaid. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2418XC (2) 88 jm/jh

S.F. _____ Section 1. Section 423.3, Code 2019, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 107. The sales price from sales of all 3 tangible personal property, specified digital products, or 4 services paid for or reimbursed by Medicaid, as defined in 5 section 249A.2. 6 EXPLANATION 7 The inclusion of this explanation does not constitute agreement with 8 the explanation’s substance by the members of the general assembly. 9 This bill exempts from the state sales and use tax the sales 10 of all tangible personal property, specified digital products, 11 or services paid for or reimbursed by Medicaid, as defined in 12 Code section 249A.2(7). 13 By operation of Code section 423.6, an item exempt from the 14 imposition of the sales tax is also exempt from the use tax 15 imposed in Code section 423.5. 16 -1- LSB 2418XC (2) 88 jm/jh 1/ 1