Don’t tax my blood!
Who is LifeServe Blood Center?
- One of two nonprofit blood centers in the State of Iowa.
- Relies on volunteer blood donors
- The exclusive blood provider to 85 Iowa counties and 120 hospitals.
- A federally regulated drug manufacturer. All blood transfusions are considered to be a drug that must be prescribed by a doctor.
- Ensures public safety and health by performing 15 federally required tests on every volunteer blood donor.
What is our tax issue?
The 2018 Iowa Tax Reform Bill increased the tax burden for LifeServe Blood Center to approximately $1M annually.
- The tax bill removed nonprofits from being considered as manufacturers. As of May 30, 2018, LifeServe will pay tax on the bags used to collect blood, the equipment we use and any other supply that is used by our team to provide lifesaving blood products.
- The tax bill expanded sales and use tax for specified digital products and services such as software as a service will require nonprofit blood centers to pay tax on all software products including such things as the software a hospital uses to order blood products. An exemption has been created for purchases of specified digital products and the enumerated services if such purchases are made by commercial enterprises. 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.
The State of Iowa is one of three states that taxes its nonprofit blood centers.
For several years, we have been lobbying to remove the tax on blood testing reagents and testing services.
What are we asking of our legislators?
LifeServe Blood Center needs to be treated the same way as hospitals, hospices and organ procurement organizations by being exempt from state sales and use taxes. These organizations are exempt from these taxes and are not accidentally being burdened by new taxes.
How you can help:
- Reach out to us at email@example.com to become an advocate for LifeServe!