Senate Study Bill 3112 - Introduced SENATE/HOUSE FILE _____ BY (PROPOSED DEPARTMENT OF REVENUE BILL) A BILL FOR An Act relating to the technical administration of the tax 1 and related laws by the department of revenue, including 2 administration of income taxes, moneys and credits tax, 3 insurance premiums tax, sales and use taxes, fees for new 4 vehicle registration, franchise fees, and the environmental 5 protection charge, making penalties applicable, and 6 including retroactive applicability provisions. 7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 8 TLSB 5383XD (6) 83 tw/sc

S.F. _____ H.F. _____ Section 1. Section 15.119, subsection 1, Code Supplement 1 2009, is amended to read as follows: 2 1. Notwithstanding any provision to the contrary in 3 sections 15.327 through 15.336, section 15.393 , section 15A.9, 4 subsection 8 , sections 15E.191 through 15E.197, 422.11E, 5 and section 422.33, subsection 9, the department shall not 6 authorize an amount of tax credits for purposes specified in 7 subsection 2 in excess of one hundred eighty-five million 8 dollars for any fiscal year. However, the department may 9 authorize an amount of tax credits in one fiscal year in excess 10 of one hundred eighty-five million, and such excess amount 11 shall be counted against the total amount of tax credits that 12 may be authorized in the next fiscal year. 13 Sec. 2. Section 15.119, subsection 2, paragraph c, Code 14 Supplement 2009, is amended by striking the paragraph. 15 Sec. 3. Section 15.293A, subsection 2, paragraph f, Code 16 2009, is amended to read as follows: 17 f. A tax credit shall not be claimed by a transferee 18 under this section until a replacement tax credit certificate 19 identifying the transferee as the proper holder has been 20 issued. The transferee may use the amount of the tax credit 21 transferred against the taxes imposed in chapter 422, divisions 22 II, III, and V, and in chapter 432, and against the moneys and 23 credits tax imposed in section 533.329, for any tax year the 24 original transferor could have claimed the tax credit. Any 25 consideration received for the transfer of the tax credit shall 26 not be included as income under chapter 422, divisions II, III, 27 and V , under chapter 432 , or against the moneys and credits tax 28 imposed in section 533.329 . Any consideration paid for the 29 transfer of the tax credit shall not be deducted from income 30 under chapter 422, divisions II, III, and V , under chapter 31 432 , or against the moneys and credits tax imposed in section 32 533.329 . 33 Sec. 4. Section 15.329, subsection 3, Code Supplement 2009, 34 is amended by striking the subsection. 35 -1- LSB 5383XD (6) 83 tw/sc 1/ 14

S.F. _____ H.F. _____ Sec. 5. Section 15.393, subsection 2, paragraph a, 1 subparagraph (3), Code Supplement 2009, is amended to read as 2 follows: 3 (3) After verifying the eligibility for a tax credit under 4 this paragraph “a” , the department of economic development 5 shall issue a film, television, and video project promotion 6 program tax credit certificate to be attached to the person’s 7 tax return. The tax credit certificate shall contain the 8 taxpayer’s name, address, tax identification number, the date 9 of project completion, the amount of credit, other information 10 required by the department of revenue, and a place for the name 11 and tax identification number of a transferee and the amount 12 of the tax credit being transferred. Tax credit certificates 13 issued under this paragraph “a” may be transferred to any person 14 or entity. Within ninety days of transfer, the transferee 15 shall submit the transferred tax credit certificate to the 16 department of revenue along with a statement containing the 17 transferee’s name, tax identification number, and address, 18 and the denomination that each replacement tax credit 19 certificate is to carry and any other information required by 20 the department of revenue. Within thirty days of receiving 21 the transferred tax credit certificate and the transferee’s 22 statement, the department of revenue shall issue one or more 23 replacement tax credit certificates to the transferee. Each 24 replacement tax credit certificate must contain the information 25 required for the original tax credit certificate and must have 26 the same expiration date that appeared in the transferred 27 tax credit certificate. Tax credit certificate amounts 28 of less than the minimum amount established by rule of the 29 department of economic development shall not be transferable. 30 A tax credit shall not be claimed by a transferee under this 31 paragraph “a” until a replacement tax credit certificate 32 identifying the transferee as the proper holder has been 33 issued. The transferee may use the amount of the tax credit 34 transferred against the taxes imposed in chapter 422, divisions 35 -2- LSB 5383XD (6) 83 tw/sc 2/ 14

S.F. _____ H.F. _____ II, III, and V, and in chapter 432, and against the moneys and 1 credits tax imposed in section 533.329, for any tax year the 2 original transferor could have claimed the tax credit. Any 3 consideration received for the transfer of the tax credit shall 4 not be included as income under chapter 422, divisions II, III, 5 and V , under chapter 432 , or against the moneys and credits tax 6 imposed in section 533.329 . Any consideration paid for the 7 transfer of the tax credit shall not be deducted from income 8 under chapter 422, divisions II, III, and V , under chapter 9 432 , or against the moneys and credits tax imposed in section 10 533.329 . 11 Sec. 6. Section 15.393, subsection 2, paragraph b, 12 subparagraph (2), Code Supplement 2009, is amended to read as 13 follows: 14 (2) After verifying the eligibility for a tax credit under 15 this paragraph “b” , the department of economic development 16 shall issue a film, television, and video project promotion 17 program tax credit certificate to be attached to the person’s 18 tax return. The tax credit certificate shall contain the 19 taxpayer’s name, address, tax identification number, the date 20 of project completion, the amount of credit, other information 21 required by the department of revenue, and a place for the name 22 and tax identification number of a transferee and the amount 23 of the tax credit being transferred. Tax credit certificates 24 issued under this paragraph “b” may be transferred to any person 25 or entity. Within ninety days of transfer, the transferee 26 shall submit the transferred tax credit certificate to the 27 department of revenue along with a statement containing the 28 transferee’s name, tax identification number, and address, 29 and the denomination that each replacement tax credit 30 certificate is to carry and any other information required by 31 the department of revenue. Within thirty days of receiving 32 the transferred tax credit certificate and the transferee’s 33 statement, the department of revenue shall issue one or more 34 replacement tax credit certificates to the transferee. Each 35 -3- LSB 5383XD (6) 83 tw/sc 3/ 14

S.F. _____ H.F. _____ replacement tax credit certificate must contain the information 1 required for the original tax credit certificate and must have 2 the same expiration date that appeared in the transferred 3 tax credit certificate. Tax credit certificate amounts 4 of less than the minimum amount established by rule of the 5 department of economic development shall not be transferable. 6 A tax credit shall not be claimed by a transferee under this 7 paragraph “b” until a replacement tax credit certificate 8 identifying the transferee as the proper holder has been 9 issued. The transferee may use the amount of the tax credit 10 transferred against the taxes imposed in chapter 422, divisions 11 II, III, and V, and in chapter 432, and against the moneys and 12 credits tax imposed in section 533.329, for any tax year the 13 original transferor could have claimed the tax credit. Any 14 consideration received for the transfer of the tax credit shall 15 not be included as income under chapter 422, divisions II, III, 16 and V , under chapter 432 , or against the moneys and credits tax 17 imposed in section 533.329 . Any consideration paid for the 18 transfer of the tax credit shall not be deducted from income 19 under chapter 422, divisions II, III, and V , under chapter 20 432 , or against the moneys and credits tax imposed in section 21 533.329 . 22 Sec. 7. Section 364.2, subsection 4, paragraph f, Code 23 Supplement 2009, is amended to read as follows: 24 f. (1) A franchise fee assessed by a city may be based 25 upon a percentage of gross revenues generated from sales of the 26 franchisee within the city not to exceed five percent, without 27 regard to the city’s cost of inspecting, supervising, and 28 otherwise regulating the franchise. Franchise fees collected 29 pursuant to an ordinance in effect on May 26, 2009, shall be 30 deposited in the city’s general fund and such fees collected 31 in excess of the amounts necessary to inspect, supervise, and 32 otherwise regulate the franchise may be used by the city for 33 any other purpose authorized by law. Franchise fees collected 34 pursuant to an ordinance that is adopted or amended on or 35 -4- LSB 5383XD (6) 83 tw/sc 4/ 14

S.F. _____ H.F. _____ after May 26, 2009, to increase the percentage rate at which 1 franchise fees are assessed shall be credited to the franchise 2 fee account within the city’s general fund and used pursuant 3 to section 384.3A. If a city franchise fee is assessed to 4 customers of a franchise, the fee shall not be assessed to the 5 city as a customer. Before a city adopts or amends a franchise 6 fee rate ordinance or franchise ordinance to increase the 7 percentage rate at which franchise fees are assessed, a revenue 8 purpose statement shall be prepared specifying the purpose or 9 purposes for which the revenue collected from the increased 10 rate will be expended. If property tax relief is listed as 11 a purpose, the revenue purpose statement shall also include 12 information regarding the amount of the property tax relief to 13 be provided with revenue collected from the increased rate. 14 The revenue purpose statement shall be published as provided 15 in section 362.3. 16 (2) If a city adopts, amends, or repeals an ordinance 17 imposing a franchise fee, the city shall promptly notify the 18 director of revenue of such action. 19 Sec. 8. Section 421.27, subsections 1 and 4, Code 2009, are 20 amended to read as follows: 21 1. Failure to timely file a return or deposit form or to 22 timely remit tax . If a person fails to file with the department 23 on or before the due date a return or deposit form or, if 24 no return is required, fails to timely remit the tax due or 25 required to be shown due, there shall be added to the tax shown 26 due or required to be shown due a penalty of ten percent of the 27 tax shown due or required to be shown due. The penalty, if 28 assessed, shall be waived by the department upon a showing of 29 any of the following conditions: 30 a. At least ninety percent of the tax required to be shown 31 due has been paid by the due date of the tax. 32 b. Those taxpayers who are required to file quarterly 33 returns, or monthly or semimonthly deposit forms may have one 34 late return or deposit form within a three-year period. The 35 -5- LSB 5383XD (6) 83 tw/sc 5/ 14

S.F. _____ H.F. _____ use of any other penalty exception will not count as a late 1 return or deposit form for purposes of this exception. 2 c. The death of a taxpayer, death of a member of the 3 immediate family of the taxpayer, or death of the person 4 directly responsible for filing the return and paying the tax, 5 when the death interferes with timely filing. 6 d. The onset of serious, long-term illness or 7 hospitalization of the taxpayer, of a member of the immediate 8 family of the taxpayer, or of the person directly responsible 9 for filing the return and paying the tax. 10 e. Destruction of records by fire, flood, or other act of 11 God. 12 f. The taxpayer presents proof that the taxpayer relied 13 upon applicable, documented, written advice specifically 14 made to the taxpayer, to the taxpayer’s preparer, or to an 15 association representative of the taxpayer from the department, 16 state department of transportation, county treasurer, or 17 federal internal revenue service, whichever is appropriate, 18 that has not been superseded by a court decision, ruling by a 19 quasi-judicial body, or the adoption, amendment, or repeal of 20 a rule or law. 21 g. Reliance upon results in a previous audit was a direct 22 cause for the failure to file where the previous audit 23 expressly and clearly addressed the issue and the previous 24 audit results have not been superseded by a court decision, or 25 the adoption, amendment, or repeal of a rule or law. 26 h. Under rules prescribed by the director, the taxpayer 27 presents documented proof of substantial authority to rely 28 upon a particular position or upon proof that all facts and 29 circumstances are disclosed on a return or deposit form. 30 i. The return, deposit form, or payment is timely, but 31 erroneously, mailed with adequate postage to the internal 32 revenue service, another state agency, or a local government 33 agency and the taxpayer provides proof of timely mailing with 34 adequate postage. 35 -6- LSB 5383XD (6) 83 tw/sc 6/ 14

S.F. _____ H.F. _____ j. The tax has been paid by the wrong licensee and the 1 payments were timely remitted to the department for one or more 2 tax periods prior to notification by the department. 3 k. The failure to file was discovered through a sanctioned 4 self-audit program conducted by the department. 5 l. If the availability of funds in payment of tax required 6 to be made through electronic funds transfer is delayed and the 7 delay of availability is due to reasons beyond the control of 8 the taxpayer. “Electronic funds transfer” means any transfer 9 of funds, other than a transaction originated by check, draft, 10 or similar paper instrument, that is initiated through an 11 electronic terminal telephone, computer, magnetic tape, or 12 similar device for the purpose of ordering, instructing, or 13 authorizing a financial institution to debit or credit an 14 account. 15 m. The failure to file a timely inheritance tax return 16 resulting solely from a disclaimer that required the personal 17 representative to file an inheritance tax return. The penalty 18 shall be waived if such return is filed and any tax due is paid 19 within the later of nine months from the date of death or sixty 20 days from the delivery or filing of the disclaimer pursuant to 21 section 633E.12. 22 n. That an Iowa inheritance tax return is filed for an 23 estate within the later of nine months from the date of 24 death or sixty days from the filing of a disclaimer by the 25 beneficiary of the estate refusing to take the property or 26 right or interest in the property. 27 4. Willful failure to file a return or deposit form or to 28 timely remit tax . 29 a. In case of If there is a willful failure by a taxpayer to 30 file a return or deposit form with the intent to evade tax , or 31 in case of willfully filing , if no return is required, to 32 timely remit the tax due or required to be shown due, or if the 33 taxpayer willfully files a false return or deposit form with 34 the intent to evade tax, in lieu of the penalties otherwise 35 -7- LSB 5383XD (6) 83 tw/sc 7/ 14

S.F. _____ H.F. _____ provided in this section, a penalty of seventy-five percent 1 shall be added to the amount shown due or required to be shown 2 due as tax on the return or deposit form , or the amount due 3 if no return is required . If penalties are applicable for 4 failure to file a return or deposit form and failure to pay 5 the tax shown due or required to be shown due on the return or 6 deposit form, the penalty provision for failure to file shall 7 be in lieu of the penalty provisions for failure to pay the tax 8 shown due or required to be shown due on the return or deposit 9 form, except in the case of willful failure to file a return or 10 deposit form or willfully filing a false return or deposit form 11 with intent to evade tax. 12 b. The penalties imposed under this subsection are not 13 subject to waiver. 14 Sec. 9. Section 422.7, subsection 9, Code Supplement 2009, 15 is amended to read as follows: 16 9. Subtract the amount of the alcohol fuel and cellulosic 17 biofuel fuels credit allowable for the tax year under section 18 40 of the Internal Revenue Code to the extent that the credit 19 increased federal adjusted gross income. 20 Sec. 10. Section 422.33, subsection 5, paragraph f, Code 21 Supplement 2009, is amended by striking the paragraph. 22 Sec. 11. Section 422.33, subsection 12, paragraph b, Code 23 Supplement 2009, is amended to read as follows: 24 b. The taxes imposed under this division shall be 25 reduced by investment tax credits authorized pursuant to 26 sections section 15.333 , 15A.9, subsection 4 , and section 27 15E.193B, subsection 6. 28 Sec. 12. Section 422.35, subsection 7, Code Supplement 29 2009, is amended to read as follows: 30 7. Subtract the amount of the alcohol fuel and cellulosic 31 biofuel fuels credit allowable for the tax year under section 32 40 of the Internal Revenue Code to the extent that the credit 33 increased federal taxable income. 34 Sec. 13. Section 422.36, subsection 4, Code 2009, is amended 1 -8- LSB 5383XD (6) 83 tw/sc 8/ 14

S.F. _____ H.F. _____ to read as follows: 2 4. Foreign and domestic corporations shall file a copy of 3 their federal income tax return for the current tax year with 4 the return required by this section. 5 Sec. 14. Section 422.89, subsection 3, unnumbered paragraph 6 1, Code 2009, is amended to read as follows: 7 An amount equal to ninety one hundred percent of the tax for 8 the taxable year computed by placing on an annualized basis the 9 taxable income: 10 Sec. 15. Section 423.3, subsection 40, Code Supplement 11 2009, is amended to read as follows: 12 40. The sales price from the sale of automotive fluids 13 to a retailer to be used either in providing a service which 14 includes the installation or application of the fluids in 15 or on a motor vehicle, which service is subject to section 16 423.2, subsection 6, or to be installed in or applied to a 17 motor vehicle which the retailer intends to sell, which sale 18 is subject to section 423.26 321.105A . For purposes of this 19 subsection, automotive fluids are all those which are refined, 20 manufactured, or otherwise processed and packaged for sale 21 prior to their installation in or application to a motor 22 vehicle. They include but are not limited to motor oil and 23 other lubricants, hydraulic fluids, brake fluid, transmission 24 fluid, sealants, undercoatings, antifreeze, and gasoline 25 additives. 26 Sec. 16. Section 423.36, subsection 3, paragraph a, Code 27 2009, is amended to read as follows: 28 a. The department shall grant and issue to each applicant 29 a permit for each place of business in this state where sales 30 or use tax is collected. A permit is not assignable and is 31 valid only for the person in whose name it is issued and for the 32 transaction of business at the place designated or at a place 33 of relocation within the state same county, if the ownership 34 remains the same. 35 Sec. 17. Section 423.37, subsections 1 and 2, Code 2009, are 1 -9- LSB 5383XD (6) 83 tw/sc 9/ 14

S.F. _____ H.F. _____ amended to read as follows: 2 1. As soon as practicable after a return is filed and in 3 any event within three years after the return is filed, the 4 department shall examine it, assess and determine the tax due 5 if the return is found to be incorrect, and give notice to the 6 person liable for the tax of the assessment and determination 7 as provided in subsection 2. The period for the examination 8 and determination of the correct amount of tax is unlimited in 9 the case of a false or fraudulent return made with the intent 10 to evade tax or in the case of a failure to file a return or, if 11 no return is required, in the case of a failure to pay the tax 12 due or required to be shown due . 13 2. If a return required by this subchapter is not filed, 14 or if a return when filed is incorrect or insufficient and 15 the maker fails to file a corrected or sufficient return 16 within twenty days after the same is required by notice from 17 the department , or if tax is due but no return is required , 18 the department shall determine the amount of tax due from 19 information as the department may be able to obtain and, if 20 necessary, may estimate the tax on the basis of external 21 indices, such as number of employees of the person concerned, 22 rentals paid by the person, stock on hand, or other factors. 23 The determination may be made using any generally recognized 24 valid and reliable sampling technique, whether or not the 25 person being audited has complete records, as mutually agreed 26 upon by the department and the taxpayer. The department shall 27 give notice of the determination to the person liable for the 28 tax. The determination shall fix the tax unless the person 29 against whom it is assessed shall, within sixty days after the 30 giving of notice of the determination, apply to the director 31 for a hearing or unless the taxpayer contests the determination 32 by paying the tax, interest, and penalty and timely filing a 33 claim for refund. At the hearing, evidence may be offered to 34 support the determination or to prove that it is incorrect. 35 After the hearing the director shall give notice of the 1 -10- LSB 5383XD (6) 83 tw/sc 10/ 14

S.F. _____ H.F. _____ decision to the person liable for the tax. 2 Sec. 18. Section 423.57, Code 2009, is amended to read as 3 follows: 4 423.57 Statutes applicable. 5 The director shall administer this subchapter as it relates 6 to the taxes imposed in this chapter in the same manner and 7 subject to all the provisions of, and all of the powers, 8 duties, authority, and restrictions contained in sections 9 423.14, 423.15, 423.16, 423.17, 423.19, 423.20, 423.21, 423.22, 10 423.23, 423.24, 423.25, 423.28, 423.29, 423.31, 423.32, 423.33, 11 423.34, 423.34A, 423.35, 423.37, 423.38, 423.39, 423.40, 12 423.41, and 423.42, section 423.43, subsection 1, and sections 13 423.45, 423.46, and 423.47. 14 Sec. 19. Section 424.2, subsections 6, 10, and 13, Code 15 2009, are amended to read as follows: 16 6. “Depositor” means the person who deposits petroleum into 17 an underground storage tank subject to regulation under chapter 18 455G or an aboveground petroleum storage tank as defined 19 in section 101.21, located at a retail motor vehicle fuel 20 outlet if the aboveground storage tank is physically connected 21 directly to pumps which dispense petroleum that is sold at the 22 motor vehicle fuel outlet on a retail basis. 23 10. “Owner or operator” means “owner or operator” of an 24 underground storage tank as used in chapter 455G or the 25 “owner” or “operator” of an aboveground petroleum storage 26 tank as defined in section 101.21, located at a retail 27 motor vehicle fuel outlet if the aboveground storage tank is 28 physically connected directly to pumps which dispense petroleum 29 that is sold at the motor vehicle fuel outlet on a retail 30 basis. 31 13. “Tank” means an underground storage tank subject to 32 regulation under chapter 455G or an aboveground petroleum 33 storage tank as defined in section 101.21, located at a retail 34 motor vehicle fuel outlet if the aboveground storage tank is 35 physically connected directly to pumps which dispense petroleum 1 -11- LSB 5383XD (6) 83 tw/sc 11/ 14

S.F. _____ H.F. _____ that is sold at the motor vehicle fuel outlet on a retail 2 basis. 3 Sec. 20. REPEAL. Section 423.28, Code 2009, is repealed. 4 Sec. 21. REPEAL. Section 15A.9, Code Supplement 2009, is 5 repealed. 6 Sec. 22. RETROACTIVE APPLICABILITY. The section of this 7 Act amending section 422.89 applies retroactively to January 1, 8 2010, for tax years beginning on or after that date. 9 EXPLANATION 10 This bill relates to the technical administration of the tax 11 and related laws by the department of revenue. 12 The bill amends Code sections 15.293A and 15.393 to 13 eliminate certain income-related references to the insurance 14 premium tax and moneys and credits tax which are not imposed 15 on an income basis. The amended Code sections relate to the 16 tax credits available for brownfields redevelopment, film 17 expenditures, and film investment. 18 The bill repeals Code section 15A.9, which is the quality 19 jobs enterprise zone program. The program commonly known as 20 the enterprise zone program is currently administered pursuant 21 to Code sections 15E.191 through 15E.198, and the last contract 22 issued under the quality jobs enterprise zone program is now 23 expired making Code section 15A.9 no longer necessary. The 24 bill makes changes to Code sections 15.119, 15.329, and 422.33 25 in conformance with the repeal of this Code section. 26 The bill amends Code section 364.2, relating to franchise 27 fees imposed by cities, to require a city to notify the 28 department whenever an ordinance imposing a franchise fee is 29 adopted, amended, or repealed. Because the imposition of 30 a franchise fee requires utilities to stop collecting the 31 local option sales and services tax and instead collect the 32 franchise fee, the adoption, amendment, or repeal of such a fee 33 impacts the department’s distribution of local option sales and 34 services tax revenue to local governments. 35 The bill amends Code section 421.27 to clarify existing 1 -12- LSB 5383XD (6) 83 tw/sc 12/ 14

S.F. _____ H.F. _____ departmental policy regarding the penalty that applies not only 2 for failure to timely file a return but also for a failure 3 to timely remit taxes to the department. By operation of 4 law, the changes to Code section 421.27 also apply to Code 5 sections 423.40, 424.17, 437A.13, 450.63, 452A.65, 453A.28, and 6 453A.46(3). 7 The bill amends Code sections 422.7 and 422.35 to update 8 the name of the individual and corporate tax credits for the 9 production of alcohol and biofuels to be the same as the name 10 of the credit available in section 40 of the federal Internal 11 Revenue Code. 12 The bill amends Code section 422.36 to provide that domestic 13 corporations must provide a copy of their federal income tax 14 return when filing their Iowa corporation income tax return. 15 Currently, foreign corporations are subject to the same 16 requirement and this change reflects the current practices of 17 the department. 18 In 2009, certain provisions were amended to increase the 19 standard for the exception to the underpayment of estimated 20 tax penalty for Iowa corporation income tax for annualization 21 of income from 90 percent of the tax liability to 100 percent 22 of the tax liability. Code section 422.89, which contains a 23 similar provision, was not amended at that time. The bill 24 amends Code section 422.89 to reflect the substance of the 25 changes made in 2009. This provision of the bill applies 26 retroactively to January 1, 2010, for tax years beginning on 27 or after that date. 28 Code section 423.3 is amended to correct an internal 29 reference to Code section 321.105A relating to the sale of a 30 motor vehicle and the fee for a new vehicle registration. 31 Code section 423.28 required motor vehicle dealers to file 32 reports related to the paying of the sales tax for the sale of 33 motor vehicles. Because such sales are now subject to the fee 34 for new vehicle registration and such reports are no longer 35 required, the bill repeals Code section 423.28. The bill makes 1 -13- LSB 5383XD (6) 83 tw/sc 13/ 14

S.F. _____ H.F. _____ a conforming amendment to Code section 423.57. 2 The bill amends Code section 423.36 to provide that a new 3 sales tax permit must be obtained if a place of business is 4 relocated to a new county. This change reflects the current 5 practice of the department and impacts the distribution of 6 local option sales tax revenue. 7 The bill amends Code section 423.37 to specify that the 8 period for examination and determination of the correct amount 9 of tax is unlimited, not only for failure to timely file a 10 return but also for failure to timely remit the tax due when 11 no return is required to be filed. Code section 423.37 is 12 further amended to specify that certain authority related 13 to determining the amount of tax due applies not only to an 14 incorrectly or insufficiently filed return, or to a failure to 15 timely file a return, but also to a failure to timely remit 16 taxes when no return is required to be filed. 17 The bill amends Code section 424.2, pertaining to the 18 environmental protection charge, by correcting out-of-date 19 language relating to motor fuel outlets. The amendment makes 20 language in Code section 424.2 consistent with similar language 21 used in Code chapter 452A, relating to motor fuel and special 22 fuel taxes. 23 -14- LSB 5383XD (6) 83 tw/sc 14/ 14