House
File
2440
-
Introduced
HOUSE
FILE
2440
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
HSB
617)
A
BILL
FOR
An
Act
establishing
the
facilitating
business
rapid
response
to
1
state-declared
disasters
Act,
and
including
effective
date
2
and
retroactive
applicability
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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Section
1.
Section
29C.1,
subsection
3,
Code
2016,
is
1
amended
to
read
as
follows:
2
3.
To
provide
for
the
rendering
of
mutual
aid
among
the
3
political
subdivisions
of
the
state
and
with
other
states
,
4
and
to
cooperate
with
the
federal
government
with
respect
to
5
the
carrying
out
of
emergency
management
functions
,
and
to
6
ensure
the
state
government
and
its
departments
and
agencies
7
facilitate
the
rapid
response
of
businesses
and
workers
in
the
8
state
and
other
states
to
a
disaster
.
9
Sec.
2.
NEW
SECTION
.
29C.24
Facilitating
business
rapid
10
response
to
state-declared
disasters
Act.
11
1.
Title.
This
section
may
be
cited
as
the
“Facilitating
12
Business
Rapid
Response
to
State-Declared
Disasters
Act”
.
13
2.
Definitions.
For
purposes
of
this
section,
unless
the
14
context
otherwise
requires:
15
a.
(1)
“Critical
infrastructure”
means
real
and
personal
16
property
and
equipment
owned
or
used
by
any
of
the
following
17
networks
or
systems,
including
related
support
facilities,
18
which
network
or
system
provides
service
to
more
than
one
19
customer
or
person:
20
(a)
Communication
and
video
networks.
21
(b)
Electric
generation,
transmission,
and
distribution
22
systems.
23
(c)
Gas
distribution
systems.
24
(d)
Water
and
wastewater
pipeline
systems.
25
(2)
“Critical
infrastructure”
includes
but
is
not
limited
26
to
buildings,
structures,
offices,
lines,
poles,
pipes,
and
27
equipment.
28
b.
“Declared
state
disaster
or
emergency”
means
a
disaster
29
or
emergency
event
that
meets
at
least
one
of
the
following
30
conditions:
31
(1)
A
disaster
emergency
proclamation
has
been
issued
by
the
32
governor
pursuant
to
section
29C.6
in
relation
to
the
event.
33
(2)
A
presidential
declaration
of
a
major
disaster
has
been
34
issued
in
relation
to
the
event.
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c.
“Disaster
or
emergency-related
work”
means
repairing,
1
renovating,
installing,
building,
or
rendering
services
2
or
other
business
activities,
that
relate
to
critical
3
infrastructure
that
has
been
damaged,
impaired,
or
destroyed
by
4
a
declared
state
disaster
or
emergency.
5
d.
“Disaster
response
period”
means,
with
respect
to
6
each
declared
state
disaster
or
emergency,
a
period
of
time
7
that
begins
ten
calendar
days
prior
to
the
day
the
governor
8
proclaims
a
disaster
emergency
or
the
president
declares
a
9
major
disaster,
whichever
occurs
first,
and
extends
for
a
10
period
of
sixty
calendar
days
after
the
end
of
the
declared
11
state
disaster
or
emergency.
12
e.
(1)
“Out-of-state
business”
means
a
business
entity
that
13
meets
all
of
the
following
requirements:
14
(a)
The
business
entity
is
requested
to
perform
disaster
or
15
emergency-related
work
in
the
state
by
a
registered
business
or
16
by
the
state
or
a
political
subdivision
of
the
state.
17
(b)
Except
for
disaster
and
emergency-related
work,
the
18
business
entity
has
no
presence
in
the
state
and
conducts
no
19
business
in
the
state.
20
(c)
Except
for
disaster
and
emergency-related
work,
the
21
business
entity
had
no
registrations,
tax
filings,
or
nexus
in
22
the
state
for
the
tax
year
immediately
preceding
the
year
in
23
which
the
relevant
declared
state
disaster
or
emergency
occurs.
24
(2)
“Out-of-state
business”
may
include
a
business
entity
25
that
is
affiliated
with
a
registered
business
solely
through
26
common
ownership.
27
f.
“Out-of-state
employee”
means
an
employee
who
does
28
not
work
in
this
state
except
to
perform
disaster
or
29
emergency-related
work
during
a
disaster
response
period.
30
g.
“Registered
business”
means
a
business
entity
that
is
31
registered
to
do
business
in
the
state
prior
to
the
declared
32
state
disaster
or
emergency.
33
3.
Business
and
employee
status
during
disaster
response
34
period.
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a.
Notwithstanding
any
other
provision
of
law
to
the
1
contrary,
an
out-of-state
business
that
conducts
operations
2
within
the
state
solely
for
the
purpose
of
performing
disaster
3
or
emergency-related
work
during
a
disaster
response
period
4
shall
not
be
considered
to
have
established
a
level
of
presence
5
that
would
subject
the
out-of-state
business
to
any
of
the
6
following:
7
(1)
The
requirement
to
complete
or
obtain
any
state
or
local
8
registration,
license,
or
similar
authorization
as
a
condition
9
of
doing
business
in
this
state
or
engaging
in
an
occupation
10
in
this
state,
or
to
pay
any
related
fee,
including
but
not
11
limited
to
the
requirement
to
register
with
the
secretary
of
12
state
or
a
political
subdivision.
This
subparagraph
(1)
does
13
not
apply
to
the
notification
requirement
in
subsection
5.
14
(2)
(a)
The
requirement
to
collect
and
remit
any
tax
15
imposed
upon
another
person
or
file
any
related
tax
return
or
16
obtain
any
related
tax
permit.
This
subparagraph
division
(a)
17
does
not
apply
to
an
out-of-state
business
for
the
collection
18
and
remittance
of
sales
and
use
taxes
under
chapter
423
if
the
19
out-of-state
business
is
registered
voluntarily
as
a
seller
20
under
the
streamlined
sales
and
use
tax
agreement.
21
(b)
Subparagraph
division
(a)
shall
not
be
construed
to
22
protect
or
otherwise
exempt
any
person
liable
for
the
payment
23
of
a
tax,
other
than
the
out-of-state
business,
from
the
24
responsibility
to
pay
such
tax.
25
(3)
The
imposition
of
income
taxes
under
chapter
422,
26
divisions
II
and
III,
including
the
requirement
to
file
tax
27
returns
under
sections
422.13
through
422.15
or
422.36,
as
28
applicable,
and
including
the
requirement
to
withhold
and
remit
29
income
tax
from
out-of-state
employees
under
section
422.16.
30
In
addition,
the
performance
of
disaster
or
emergency-related
31
work
during
a
disaster
response
period
by
an
out-of-state
32
business
or
out-of-state
employee
shall
not
require
an
33
out-of-state
business
to
be
included
in
a
consolidated
return
34
under
section
422.37,
and
shall
not
increase
the
amount
of
net
35
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income
of
the
out-of-state
business
allocated
and
apportioned
1
to
the
state
under
sections
422.8
or
422.33,
as
applicable.
2
(4)
The
employment
security
requirements
under
chapter
3
96,
including
but
not
limited
to
the
payment
of
employer
4
contributions
under
section
96.7.
5
(5)
The
use
tax
under
chapter
423,
subchapter
III,
or
6
the
equipment
tax
under
chapter
423D,
on
tangible
personal
7
property
or
equipment
purchased
outside
the
state
and
brought
8
into
the
state
to
aid
in
the
performance
of
disaster
or
9
emergency-related
work
during
a
disaster
response
period
if
10
such
tangible
personal
property
or
equipment
does
not
remain
in
11
the
state
after
the
conclusion
of
the
disaster
response
period.
12
(6)
The
assessment
of
property
taxes
by
the
department
13
of
revenue
under
sections
428.24
through
428.26,
428.28,
and
14
428.29,
or
chapters
433,
434,
435,
and
437
through
438,
or
by
15
a
local
assessor
under
another
provision
of
law,
on
property
16
brought
into
the
state
to
aid
in
the
performance
of
disaster
17
or
emergency-related
work
during
a
disaster
period
if
such
18
property
does
not
remain
in
the
state
after
the
conclusion
of
19
the
disaster
response
period.
20
b.
Notwithstanding
any
other
provision
of
law
to
the
21
contrary,
the
performance
of
disaster
or
emergency-related
22
work
during
a
disaster
response
period
by
an
out-of-state
23
employee
shall
not
be
used
as
the
basis
to
determine
that
the
24
out-of-state
employee
has
established
residency
or
a
level
of
25
presence
that
would
subject
the
out-of-state
employee
to
any
26
of
the
following:
27
(1)
The
requirement
to
complete
or
obtain
any
state
or
local
28
registration,
license,
or
similar
authorization
as
a
condition
29
of
doing
business
in
this
state
or
engaging
in
an
occupation
30
in
this
state,
or
to
pay
any
related
fee,
including
but
not
31
limited
to
the
requirement
to
register
with
the
secretary
of
32
state
or
a
political
subdivision.
33
(2)
The
imposition
of
income
taxes
under
chapter
422,
34
division
II,
including
the
requirement
to
file
tax
returns
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under
section
422.13
and
the
requirement
to
be
subject
to
1
withholding
of
income
tax
under
section
422.16.
In
addition,
2
the
performance
of
disaster
or
emergency-related
work
during
a
3
disaster
response
period
by
an
out-of-state
employee
shall
not
4
increase
the
amount
of
net
income
of
the
out-of-state
employee
5
allocated
and
apportioned
to
the
state
under
section
422.8.
6
(3)
The
use
tax
under
chapter
423,
subchapter
III,
or
the
7
equipment
tax
under
chapter
423D,
on
tangible
personal
property
8
or
equipment
purchased
outside
the
state
and
used
in
the
state
9
to
aid
in
the
performance
of
disaster
or
emergency-related
work
10
during
a
disaster
response
period
if
such
tangible
personal
11
property
or
equipment
does
not
remain
in
the
state
after
the
12
conclusion
of
the
disaster
response
period.
13
c.
During
a
disaster
response
period,
an
out-of-state
14
business
or
an
out-of-state
employee
shall
be
subject
to
all
15
taxes
and
fees
not
included
in
paragraphs
“a”
and
“b”
,
and
this
16
subsection
shall
not
be
construed
to
provide
protection
or
17
exemption
during
a
disaster
response
period
or
any
other
period
18
from
taxes
or
taxable
events
not
included
in
paragraphs
“a”
and
19
“b”
.
20
4.
Business
and
employee
status
after
a
disaster
response
21
period.
An
out-of-state
business
or
out-of-state
employee
22
that
remains
in
the
state
after
the
conclusion
of
the
disaster
23
response
period
for
which
the
disaster
or
emergency-related
24
work
was
performed
shall
be
fully
subject
to
the
state’s
25
standards
for
establishing
presence,
residency,
or
doing
26
business
as
otherwise
provided
by
law,
and
shall
be
responsible
27
for
any
resulting
taxes,
fees,
licensing,
registration,
filing,
28
or
other
requirements.
29
5.
Notification
of
out-of-state
business
during
disaster
30
response
period.
31
a.
An
out-of-state
business
that
enters
the
state
to
perform
32
disaster
and
emergency-related
work
during
a
disaster
response
33
period
shall
provide
notification
to
the
secretary
of
state,
34
which
notification
shall
contain
all
the
following
information
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related
to
the
out-of-state
business:
1
(1)
Name.
2
(2)
State
of
domicile.
3
(3)
Principal
business
address.
4
(4)
Federal
employer
identification
number.
5
(5)
The
date
the
out-of-state
business
entered
the
state.
6
(6)
Contact
information.
7
(7)
A
statement
that
the
out-of-state
business
is
in
8
the
state
for
the
purpose
of
responding
to
a
declared
state
9
disaster
or
emergency.
10
b.
For
an
out-of-state
business
that
enters
this
state
to
11
perform
disaster
and
emergency-related
work
during
a
disaster
12
response
period
as
an
affiliate
of
a
registered
business,
the
13
registered
business
shall
provide,
on
behalf
of
the
affiliate
14
out-of-state
business,
the
notification
required
in
paragraph
15
“a”
,
which
notification
shall
also
include
contact
information
16
for
the
registered
business.
17
c.
The
secretary
of
state
shall
transmit
notification
18
information
to
the
department,
department
of
revenue,
and
other
19
appropriate
state
and
local
government
agencies
and
officials.
20
6.
Powers
and
duties
not
created.
This
Act
shall
not
be
21
construed
to
place
any
new
mandates
or
duties
upon
a
local
22
emergency
management
commission
or
create
any
new
authority
or
23
power
for
a
local
emergency
management
commission
not
already
24
expressly
granted
in
another
provision
of
this
chapter.
25
7.
Rules.
The
department,
the
secretary
of
state,
and
26
the
department
of
revenue
shall
each
adopt
rules
pursuant
to
27
chapter
17A
to
jointly
administer
this
section.
28
Sec.
3.
Section
422.8,
subsection
2,
paragraph
a,
Code
2016,
29
is
amended
to
read
as
follows:
30
a.
Nonresident’s
net
income
allocated
to
Iowa
is
the
net
31
income,
or
portion
of
net
income,
which
is
derived
from
a
32
business,
trade,
profession,
or
occupation
carried
on
within
33
this
state
or
income
from
any
property,
trust,
estate,
or
34
other
source
within
Iowa.
However,
income
derived
from
a
35
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business,
trade,
profession,
or
occupation
carried
on
within
1
this
state
and
income
from
any
property,
trust,
estate,
or
2
other
source
within
Iowa
shall
not
include
distributions
from
3
pensions,
including
defined
benefit
or
defined
contribution
4
plans,
annuities,
individual
retirement
accounts,
and
deferred
5
compensation
plans
or
any
earnings
attributable
thereto
so
long
6
as
the
distribution
is
directly
related
to
an
individual’s
7
documented
retirement
and
received
while
the
individual
is
a
8
nonresident
of
this
state.
If
a
business,
trade,
profession,
9
or
occupation
is
carried
on
partly
within
and
partly
without
10
the
state,
only
the
portion
of
the
net
income
which
is
fairly
11
and
equitably
attributable
to
that
part
of
the
business,
trade,
12
profession,
or
occupation
carried
on
within
the
state
is
13
allocated
to
Iowa
for
purposes
of
section
422.5,
subsection
1
,
14
paragraph
“j”
,
and
section
422.13
and
income
from
any
property,
15
trust,
estate,
or
other
source
partly
within
and
partly
without
16
the
state
is
allocated
to
Iowa
in
the
same
manner,
except
that
17
annuities,
interest
on
bank
deposits
and
interest-bearing
18
obligations,
and
dividends
are
allocated
to
Iowa
only
to
the
19
extent
to
which
they
are
derived
from
a
business,
trade,
20
profession,
or
occupation
carried
on
within
the
state.
Net
21
income
described
in
section
29C.24,
subsection
3,
paragraph
22
“a”
,
subparagraph
(3),
and
paragraph
“b”
,
subparagraph
(2),
23
shall
not
be
allocated
and
apportioned
to
the
state,
as
24
provided
in
section
29C.24.
25
Sec.
4.
Section
422.13,
Code
2016,
is
amended
by
adding
the
26
following
new
subsection:
27
NEW
SUBSECTION
.
6.
Notwithstanding
subsections
1
through
5
28
and
sections
422.14
and
422.15,
a
return
is
not
required
by
a
29
taxpayer
as
provided
in
section
29C.24.
30
Sec.
5.
Section
422.16,
subsection
1,
Code
2016,
is
amended
31
by
adding
the
following
new
paragraph:
32
NEW
PARAGRAPH
.
g.
Individuals
described
in
section
29C.24
33
are
not
subject
to
withholding,
as
provided
in
that
section.
34
Sec.
6.
Section
422.33,
subsection
2,
paragraph
a,
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subparagraph
(2),
Code
2016,
is
amended
by
adding
the
following
1
new
subparagraph
division:
2
NEW
SUBPARAGRAPH
DIVISION
.
(0f)
Notwithstanding
3
subparagraph
division
(c),
income
described
in
section
29C.24,
4
subsection
3,
paragraph
“a”
,
subparagraph
(3),
shall
not
be
5
allocated
and
apportioned
to
the
state,
as
provided
in
section
6
29C.24.
7
Sec.
7.
Section
422.36,
Code
2016,
is
amended
by
adding
the
8
following
new
subsection:
9
NEW
SUBSECTION
.
7.
Notwithstanding
subsection
1,
a
return
10
is
not
required
by
a
taxpayer
as
provided
in
section
29C.24.
11
Sec.
8.
Section
422.37,
subsection
2,
Code
2016,
is
amended
12
to
read
as
follows:
13
2.
All
members
of
the
affiliated
group
shall
join
in
the
14
filing
of
an
Iowa
consolidated
return
to
the
extent
they
15
are
subject
to
the
tax
imposed
by
section
422.33
,
except
as
16
otherwise
provided
in
section
29C.24
.
17
Sec.
9.
Section
423.6,
Code
2016,
is
amended
by
adding
the
18
following
new
subsection:
19
NEW
SUBSECTION
.
17.
Tangible
personal
property
exempt
from
20
the
use
tax
as
provided
in
section
29C.24.
21
Sec.
10.
Section
423.33,
subsection
1,
Code
2016,
is
amended
22
to
read
as
follows:
23
1.
Liability
of
purchaser
for
sales
tax.
If
a
purchaser
24
fails
to
pay
sales
tax
to
the
retailer
required
to
collect
the
25
tax,
then
in
addition
to
all
of
the
rights,
obligations,
and
26
remedies
provided,
the
tax
is
payable
by
the
purchaser
directly
27
to
the
department,
and
sections
423.31
,
423.32
,
423.37
,
423.38
,
28
423.39
,
423.40
,
423.41
,
and
423.42
apply
to
the
purchaser.
For
29
failure
to
pay,
the
retailer
and
purchaser
are
liable,
unless
30
the
circumstances
described
in
section
29C.24,
subsection
3,
31
paragraph
“a”
,
subparagraph
(2),
section
421.60,
subsection
2
,
32
paragraph
“m”
,
section
423.34A
,
or
section
423.45,
subsection
33
4
,
paragraph
“b”
or
“e”
,
or
subsection
5
,
paragraph
“c”
or
“e”
,
34
are
applicable.
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Sec.
11.
NEW
SECTION
.
423.58
Collection,
permit,
and
tax
1
return
exemption
for
certain
out-of-state
businesses.
2
Notwithstanding
sections
423.14,
423.29,
423.31,
423.32,
and
3
423.36,
a
person
meeting
the
requirements
of
section
29C.24
is
4
not
required
to
obtain
a
sales
or
use
tax
permit,
collect
and
5
remit
sales
and
use
tax,
or
make
and
file
applicable
sales
or
6
use
tax
returns,
as
provided
in
section
29C.24,
subsection
3,
7
paragraph
“a”
,
subparagraph
(2).
8
Sec.
12.
Section
423D.3,
Code
2016,
is
amended
to
read
as
9
follows:
10
423D.3
Exemption.
11
There
is
exempted
from
tax
imposed
by
this
chapter
the
12
following:
13
1.
The
sales
price
on
the
lease
or
rental
of
equipment
14
to
contractors
for
direct
and
primary
use
in
construction
is
15
exempt
from
the
tax
imposed
by
this
chapter
.
16
2.
The
sales
price
or
purchase
price
of
equipment
exempt
17
from
the
equipment
tax
as
provided
in
section
29C.24.
18
Sec.
13.
Section
427.1,
Code
2016,
is
amended
by
adding
the
19
following
new
subsection:
20
NEW
SUBSECTION
.
41.
Property
described
in
and
meeting
the
21
requirements
of
section
29C.24,
subsection
3,
paragraph
“a”
,
22
subparagraph
(6).
23
Sec.
14.
EFFECTIVE
UPON
ENACTMENT.
This
Act,
being
deemed
24
of
immediate
importance,
takes
effect
upon
enactment.
25
Sec.
15.
RETROACTIVE
APPLICABILITY.
The
following
26
provision
or
provisions
of
this
Act
apply
retroactively
to
27
January
1,
2016,
for
tax
years
beginning
on
or
after
that
date:
28
1.
The
section
of
this
Act
amending
section
422.8.
29
2.
The
section
of
this
Act
amending
section
422.13.
30
3.
The
section
of
this
Act
amending
section
422.16.
31
4.
The
section
of
this
Act
amending
section
422.33.
32
5.
The
section
of
this
Act
amending
section
422.36.
33
6.
The
section
of
this
Act
amending
section
422.37.
34
EXPLANATION
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The
inclusion
of
this
explanation
does
not
constitute
agreement
with
1
the
explanation’s
substance
by
the
members
of
the
general
assembly.
2
This
bill
establishes
the
“Facilitating
Business
Rapid
3
Response
to
State-Declared
Disasters
Act”
and
provides
4
definitions.
The
bill
also
amends
the
statement
of
policy
in
5
Code
chapter
29C
(Emergency
Management
and
Security).
6
The
bill
provides
that
notwithstanding
any
law
to
the
7
contrary,
an
out-of-state
business
or
an
out-of-state
employee
8
that
performs
disaster
and
emergency-related
work
during
a
9
disaster
response
period
will
be
protected
from,
and
shall
not
10
be
subject
to,
certain
taxes,
fees,
licensing,
registration,
11
filing,
and
other
requirements,
as
specified
in
the
bill.
12
“Disaster
response
period”
is
defined
as
a
period
of
time
13
beginning
10
days
before
the
governor
proclaims
a
state
14
disaster
or
emergency
or
the
president
declares
a
major
15
disaster
in
the
state,
and
ends
60
days
after
the
end
of
16
the
declared
state
disaster
or
emergency.
“Disaster
and
17
emergency-related
work”
is
defined
to
include
a
variety
of
work
18
on
critical
infrastructure
damaged,
impaired,
or
destroyed
19
by
the
declared
state
disaster
or
emergency.
“Critical
20
infrastructure”
is
defined
to
include
property
and
equipment
21
owned
or
used
by
a
communication
and
video
network;
electric
22
generation,
transmission,
and
distribution
system;
gas
23
distribution
system;
water
and
wastewater
pipeline
system;
24
or
a
related
support
facility
of
those
networks
or
systems.
25
The
network
or
system
must
provide
service
to
more
than
one
26
customer
or
person.
“Critical
infrastructure”
includes
but
is
27
not
limited
to
buildings,
structures,
offices,
lines,
poles,
28
pipes,
and
equipment.
29
OUT-OF-STATE
BUSINESSES.
The
bill
defines
“out-of-state
30
business”
and
provides
that
an
out-of-state
business
performing
31
disaster
and
emergency-related
work
during
a
disaster
response
32
period
shall
not
be
considered
to
have
established
a
level
of
33
presence
that
would
subject
it
to
the
following:
34
1.
The
requirement
to
obtain
any
state
or
local
business
or
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registration,
license,
or
similar
authorization
as
a
condition
1
of
doing
business
or
engaging
in
an
occupation
in
this
state,
2
or
pay
any
related
fee.
3
2.
The
requirement
to
collect
and
remit
any
tax
imposed
upon
4
another
person,
or
file
any
related
tax
return
or
obtain
any
5
related
tax
permit,
except
for
the
collection
of
sales
and
use
6
tax
by
an
out-of-state
business
registered
voluntarily
as
a
7
seller
under
the
streamlined
sales
and
use
tax
agreement.
8
3.
The
requirement
to
pay
the
individual
or
corporate
9
income
tax,
including
the
requirement
to
file
a
tax
return
10
or
be
included
in
a
consolidated
tax
return,
withhold
and
11
remit
income
tax
from
out-of-state
employees,
or
increase
the
12
amount
of
the
out-of-state
business’s
net
income
allocated
13
and
apportioned
to
Iowa
as
a
result
of
the
disaster
and
14
emergency-related
work.
15
4.
The
requirement
to
be
subject
to
the
employment
security
16
requirements
of
Code
chapter
96,
including
but
not
limited
to
17
the
requirement
to
make
employer
contributions.
18
5.
For
tangible
personal
property
and
equipment
purchased
19
outside
of
Iowa
and
brought
into
the
state
to
aid
in
the
20
performance
of
disaster
or
emergency-related
work,
the
21
requirement
to
pay
use
tax
or
equipment
tax
on
the
property,
or
22
have
the
property
assessed
for
property
tax
purposes,
provided
23
the
property
does
not
remain
in
the
state
after
the
disaster
24
response
period.
25
Out-of-state
businesses
that
enter
the
state
to
perform
26
disaster
and
emergency-related
work
during
a
disaster
response
27
period
are
required
to
provide
a
notification
containing
28
various
information
to
the
secretary
of
state.
If
the
29
out-of-state
business
enters
the
state
as
an
affiliate
of
a
30
registered
business,
the
registered
business
must
provide
the
31
required
notification
on
behalf
of
the
out-of-state
business.
32
“Registered
business”
is
defined
in
the
bill.
The
secretary
of
33
state
is
required
to
share
the
notification
information
with
34
various
state
and
local
agencies
and
officials
as
specified
in
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the
bill.
1
OUT-OF-STATE
EMPLOYEES.
The
bill
defines
“out-of-state
2
employee”
and
provides
that
the
performance
of
disaster
or
3
emergency-related
work
during
a
disaster
response
period
by
4
an
out-of-state
employee
shall
not
be
used
as
the
basis
to
5
determine
the
out-of-state
employee
has
established
residency
6
or
a
level
of
presence
that
would
subject
the
out-of-state
7
employee
to
the
following:
8
1.
The
requirement
to
obtain
any
state
or
local
9
registration,
license,
or
similar
authorization
as
a
condition
10
of
doing
business
or
engaging
in
an
occupation
in
this
state,
11
or
pay
any
related
fee.
12
2.
The
requirement
to
pay
the
individual
income
tax
or
13
file
a
tax
return,
be
subject
to
income
tax
withholding,
or
14
increase
the
amount
of
the
out-of-state
employee’s
net
income
15
allocated
and
apportioned
to
Iowa
as
a
result
of
the
disaster
16
and
emergency-related
work.
17
3.
The
requirement
to
pay
use
tax
or
equipment
tax
on
18
tangible
personal
property
and
equipment
purchased
outside
of
19
Iowa
and
brought
into
the
state
to
aid
in
the
performance
of
20
disaster
or
emergency-related
work,
provided
the
property
does
21
not
remain
in
the
state
after
the
disaster
response
period.
22
The
bill
provides
that
out-of-state
businesses
and
23
out-of-state
employees
shall
be
subject
to
all
taxes
and
fees
24
not
specifically
included
in
the
bill,
and
provides
that
25
out-of-state
businesses
and
out-of-state
employees
that
remain
26
in
Iowa
after
the
conclusion
of
the
disaster
response
period
27
shall
be
fully
subject
to
Iowa’s
standards
for
establishing
28
presence,
residency,
or
doing
business
as
otherwise
provided
by
29
law,
and
shall
be
responsible
for
any
resulting
taxes,
fees,
30
licensing,
registration,
filing,
or
other
requirements.
31
The
bill
includes
cross
references
to
the
tax
exclusions
32
and
exemptions
created
in
the
bill
in
several
sections
of
the
33
Code
relating
to
the
individual
and
corporate
income
tax
(Code
34
chapter
422),
the
sales
and
use
tax
(Code
chapter
423),
the
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equipment
tax
(Code
chapter
423D),
and
the
property
tax
(Code
1
chapter
427).
The
cross
references
to
the
individual
and
2
corporate
income
tax
in
Code
chapter
422
are
retroactive
to
3
January
1,
2016,
for
tax
years
beginning
on
or
after
that
date.
4
The
bill
provides
that
the
“Facilitating
Business
Rapid
5
Response
to
State-Declared
Disasters
Act”
shall
not
be
6
construed
to
place
any
new
mandates
or
duties
upon
a
local
7
emergency
management
commission
or
create
any
new
authority
or
8
power
for
a
local
emergency
management
commission
not
already
9
expressly
provided
in
another
provision
of
Code
chapter
29C
10
(Emergency
Management
and
Security).
11
The
bill
takes
effect
upon
enactment.
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