Senate File 2228

                                       SENATE FILE       
                                       BY  McKIBBEN


    Passed Senate,  Date              Passed House, Date              
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act exempting from the state sales and use taxes services
  2    furnished for the production of master audio, video, film, and
  3    digital recordings, providing limited refunds, and including
  4    effective and retroactive applicability date provisions.
  5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  6 TLSB 5613SS 80
  7 mg/gg/14

PAG LIN

  1  1    Section 1.  Section 422.45, Code Supplement 2003, is
  1  2 amended by adding the following new subsection:
  1  3    NEW SUBSECTION.  66.  The gross receipts from services
  1  4 rendered, furnished, or performed for the production of master
  1  5 audio, video, film, or digital recordings or similar media.
  1  6    Sec. 2.  Section 423.3, as enacted by 2003 Iowa Acts, First
  1  7 Extraordinary Session, chapter 2, section 96, is amended by
  1  8 adding the following new subsection:
  1  9    NEW SUBSECTION.  84.  The sales price of services furnished
  1 10 for the production of master audio, video, film, or digital
  1 11 recordings or similar media.
  1 12    Sec. 3.  REFUNDS.  Refunds of taxes, interest, or penalties
  1 13 which arise from claims resulting from the enactment of
  1 14 section 1 of this Act, for sales of services furnished which
  1 15 are used in the production of master audio, video, film, or
  1 16 digital recordings or similar media occurring between January
  1 17 1, 1994, and the effective date of section 1 of this Act,
  1 18 shall be limited to twenty-five thousand dollars in the
  1 19 aggregate and shall not be allowed unless refund claims are
  1 20 filed prior to October 1, 2004, notwithstanding any other
  1 21 provision of law.  If the amount of claims totals more than
  1 22 twenty=five thousand dollars in the aggregate, the department
  1 23 of revenue shall prorate the twenty=five thousand dollars
  1 24 among all claimants in relation to the amounts of the
  1 25 claimants' valid claims.
  1 26    Sec. 4.  EFFECTIVE DATES AND RETROACTIVE APPLICABILITY
  1 27 PROVISIONS.
  1 28    1.  This Act, except for section 2 of this Act, being
  1 29 deemed of immediate importance, takes effect upon enactment
  1 30 and applies retroactively to January 1, 1994.
  1 31    2.  Section 2 of this Act takes effect July 1, 2004.
  1 32    3.  Section 1 of this Act is void on and after July 1,
  1 33 2004.
  1 34    4.  Section 3 of this Act ceases to apply after September
  1 35 30, 2004.
  2  1                           EXPLANATION
  2  2    This bill exempts from state sales and use taxes the
  2  3 provision of services for the production of master audio,
  2  4 video, film, or digital recordings or similar media.  The bill
  2  5 takes effect upon enactment and applies retroactively to
  2  6 January 1, 1994.  Because of the retroactive applicability
  2  7 provision, refunds of any taxes are limited to $25,000 and
  2  8 claims for refund must be filed before October 1, 2004.
  2  9 Because Code section 422.45 is repealed and transferred to
  2 10 Code section 423.3 as a result of action taken in the 2003
  2 11 Special Session, the exemption for these services is also
  2 12 added to Code section 423.3 as provided in section 2 of this
  2 13 bill.
  2 14 LSB 5613SS 80
  2 15 mg/gg/14