House File 588 - Introduced

HOUSE FILE  	
BY	FORD, HUNTER, and PETERSEN

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

A BILL FOR

An Act creating an excise tax on paint, primer, and speciality
finish and directing moneys to fund the childhood lead
poisoning prevention program.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
TLSB 2242YH 83
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PAG LIN

1	1	Section 1.	NEW SECTION.	135.105E	PAINT EXCISE TAX.
1	2	1.	a.	An excise tax of twenty=five cents is imposed on
1	3 each container of paint, primer, and specialty finish sold.
1	4	b.	This section does not apply to stains, sealers, or
1	5 spray paints.
1	6	2.	The excise tax as established in subsection 1 is
1	7 imposed on paint, primer, and specialty finish sold or used in
1	8 the state of Iowa.	This excise tax shall be collected and
1	9 paid over to the department of revenue by any retailer,
1 10 retailer maintaining a place of business in this state, or
1 11 user who would be responsible for collection and payment of
1 12 the excise tax as if it were a sales or use tax imposed under
1 13 chapter 423.	A user of paint, primer, or specialty finish in
1 14 this state is not subject to this excise tax if the paint,
1 15 primer, or specialty finish was subject to the excise tax at
1 16 the time of the sale of the paint, primer, or speciality
1 17 finish and the user has paid the excise tax.
1 18	3.	a.	The director of revenue shall administer the excise
1 19 tax on the sale and use of paint, primer, and specialty finish
1 20 as nearly as possible in conjunction with the administration
1 21 of the state sales and use tax law, except that portion of the
1 22 law which implements the streamlined sales and use tax
1 23 agreement.	The director shall provide appropriate forms, or
1 24 provide on the regular state tax forms, for reporting the sale
1 25 and use of paint, primer, and specialty finish excise tax
1 26 liability.	All moneys received and all refunds shall be
1 27 deposited in or withdrawn from the lead paint clean=up fund as
1 28 established in section 135.105F.
1 29	b.	The director may require all persons who are engaged in
1 30 the business of deriving any income from the use of paint,
1 31 primer, or specialty finish subject to tax under this section
1 32 to register with the department.	The director may also
1 33 require a tax permit applicable only to this section for any
1 34 retailer not collecting, or any user not paying, taxes under
35 chapter 423.
1	c.	Section 422.25, subsection 4, sections 422.30, 422.67,
2	2 and 422.68, section 422.69, subsection 1, sections 422.70,
2	3 422.71, 422.72, 422.74, and 422.75, section 423.14, subsection
2	4 1, and sections 423.23, 423.24, 423.25, 423.31 through 423.35,
2	5 423.37 through 423.42, 423.45, 423.46, and 423.47, consistent
2	6 with the provisions of this section, apply with respect to the
2	7 tax authorized under this section, in the same manner and with
2	8 the same effect as if the excise taxes on paint, primer, or
2	9 specialty finish sales or uses were retail sales taxes within
2 10 the meaning of those statutes.	Notwithstanding this
2 11 paragraph, the director shall provide for quarterly filing of
2 12 returns and for other than quarterly filing of returns both as
2 13 prescribed in section 423.31.	All taxes collected under this
2 14 section by a retailer or any user are deemed to be held in
2 15 trust for the state of Iowa.
2 16	Sec. 2.	NEW SECTION.	135.105F	LEAD PAINT CLEAN=UP FUND.
2 17	1.	A lead paint clean=up fund is created in the state
2 18 treasury under the control of the department of public health.

2 19 The fund is composed of moneys collected pursuant to the
2 20 excise tax in section 135.105E.	Notwithstanding section
2 21 12C.7, all interest earned on moneys in the fund shall be
2 22 credited to and remain in the fund.	Section 8.33 does not
2 23 apply to moneys in the fund.
2 24	2.	Moneys in the fund that are authorized by the
2 25 department for expenditure are appropriated, and shall be
2 26 used, for the following purposes:
2 27	a.	The continued implementation of the childhood lead
2 28 poisoning prevention program as established in this division.
2 29	b.	The protection of children and families in this state
2 30 from lead poisoning, and the removal of lead paint from their
2 31 homes.
2 32	EXPLANATION
2 33	This bill creates an excise tax on the sale or use of
2 34 paints, primers, and specialty finishes and directs the moneys
35 from the tax to the department of public health to continue
1 funding the childhood lead poisoning prevention program.
3	2	An excise tax of 25 cents is imposed on the sale or use of
3	3 each container of paint, primer, or specialty finish.	The tax
3	4 does not apply to stains, sealers, or spray paints.
3	5	The director of revenue shall administer the paint excise
3	6 tax as nearly as possible in conjunction with the
3	7 administration of state sales and use tax laws.	The director
3	8 shall provide forms or entries on the regular state tax forms
3	9 for reporting excise tax liability.
3 10	The bill creates a lead paint clean=up fund, and excise
3 11 taxes collected on the sale or use of paint, primer, or
3 12 specialty finish are deposited into the fund.	The department
3 13 of public health shall use the fund for the following
3 14 purposes:	to continue implementation of the childhood lead
3 15 poisoning prevention program in Code chapter 135, division
3 16 VIII, and to protect children and families in Iowa from lead
3 17 poisoning and remove lead paint from their homes. 3 18 LSB 2242YH 83
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