House Study Bill 96 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON LOCAL GOVERNMENT BILL BY CHAIRPERSON JONES) A BILL FOR An Act relating to permissible local sales and services tax 1 expenditures. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1161YC (2) 91 jm/md
H.F. _____ Section 1. Section 423B.7, subsection 7, paragraph a, Code 1 2025, is amended to read as follows: 2 a. Subject to the requirement of paragraph b , local 3 sales and services tax moneys received by a city or county 4 may be expended for any lawful purpose of the city or county, 5 including but not limited to expenses related to providing 6 emergency medical services within the applicable city or county 7 and payments to a nonprofit entity exempt from federal income 8 tax pursuant to section 501(c)(3) of the Internal Revenue Code 9 that provides public services in the applicable city or county . 10 EXPLANATION 11 The inclusion of this explanation does not constitute agreement with 12 the explanations substance by the members of the general assembly. 13 This bill specifies that local sales and services tax moneys 14 received by a city or county may be expended to a nonprofit 15 entity exempt from income tax under section 501(c)(3) of the 16 Internal Revenue Code that is providing public services in the 17 applicable city or county. 18 -1- LSB 1161YC (2) 91 jm/md 1/ 1