SSB 1114 – Sales tax exemption for nonprofit blood centers
SSB 1114, as amended in committee, would provide a sales tax exemption for tangible property sold or laboratory test services furnished to a nonprofit blood center, as long as the tangible property or laboratory testing services is directly and primarily used in the processing of human blood. The nonprofit blood centers must be registered with the federal Food and Drug Administration (FDA).
This exemption is needed because tax legislation passed last session (SF 2417) redefined the term “manufacturing” to apply to a narrower scope of activity. This change in definition subjected tangible property and laboratory testing services used by nonprofit blood centers to the sales tax. SSB 1114 replaces the sales tax exemption the nonprofit blood centers had operated under and makes the change retroactive to May 30, 2018, which is the date SF 2417 was signed into law by Governor Reynolds.
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