Vote YES for SF597

Vote YES for SF597

We’re asking for Iowa to support fairness and Vote Yes for SF597. We’re asking that Iowa support nonprofit blood centers the same way they do for-profit plasma centers, by having the same tax exemptions in the state of Iowa.

We were very excited to hear that SF597 was passed with a unanimous vote of 47-0 by the Senate on Monday, April 2. We are now reaching out asking for the House to also support the Bill.

The new tax bill that was signed into law last May resulted in $750,000 in new taxes on LifeServe. We are a nonprofit blood center committed to saving lives by collecting blood from volunteer blood donors and providing it to hospital patients. 79 hospitals in 64 counties have selected LifeServe as their exclusive provider of blood products.

We are hopeful that the House can also pass this Bill through this session. This would not only benefit local nonprofit blood centers but also local hospital partners and community members.

A nonprofit community blood center is vital to the health and safety of any community. 70% of the Iowa population will need a transfusion during their lifetime. Those transfusions rely on volunteer donors and nonprofit blood centers. I believe Iowa can join the other 47 states that have voted Yes to not taxing their nonprofit blood centers.

Did you know…

  • LifeServe Blood Center is one of only two non-profit blood centers in state of Iowa.
  • LifeServe relies on the goodwill of volunteer blood donors and professional staff to test and prepare the donations.
  • More than 79 local Iowa hospitals in 64 counties depend on LifeServe and its volunteer blood donors to deliver blood critical to saving lives.
  • Iowa is one of only three states in the nation with a tax that impacts blood donations organizations.

This is why we need your help!

LifeServe Blood Center has been saddled with significant tax liabilities as a result of legislation passed into Iowa law in 2018. Here are the facts:

  • This tax costs LifeServe Blood Center $750,000 each year.
  • The FDA recognizes LifeServe as a federally regulated drug manufacturer because all blood transfusions are considered to be a drug that must be prescribed by a doctor. The tax bill removed non-profits from being considered as manufacturers.
  • LifeServe must now pay tax on necessary supplies for collecting blood, including the bags we use to collect blood, the equipment we use and any other supply our team uses to provide lifesaving blood products.
  • The tax bill also expanded sales and use tax for specified digital products and services, such as software as a service, and requires non-profit blood centers to pay tax on all software products, including the software a hospital uses to order blood products.
  • The problem for LifeServe Blood Center is that the definition of “commercial enterprise” specifically excludes nonprofit organizations. Nonprofit organizations with a specific exemption, such as hospitals, hospices and organ procurement organizations, had their exemption broadened to be exempt from this new tax.

How can you help?

Local Legislators – Vote YES for SF597!

Community members – help us spread the word!

For more information about this matter, please contact us at blooddonor@lifeservebloodcenter.org.

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