House
Study
Bill
257
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
WAYS
AND
MEANS
BILL
BY
CHAIRPERSON
HEIN)
A
BILL
FOR
An
Act
relating
to
the
administration
of
the
tax
and
1
related
laws
by
the
department
of
revenue,
including
the
2
administration
and
modification
of
certain
tax
credits
3
and
refunds,
the
individual
and
corporate
income
taxes,
4
franchise
taxes,
sales
and
use
taxes,
and
automobile
rental
5
excise
taxes,
the
assessment
of
property
owned
by
certain
6
long
distance
telephone
companies,
establishing
a
taxation
7
and
exemption
of
computers
task
force,
and
providing
for
8
other
properly
related
matters,
making
penalties
applicable,
9
and
including
effective
date
and
retroactive
applicability
10
provisions.
11
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
12
TLSB
2786YC
(14)
88
jm/jh
H.F.
_____
DIVISION
I
1
INCOME
TAX
2
Section
1.
Section
422.4,
subsection
16,
paragraph
e,
3
unnumbered
paragraph
1,
Code
2019,
is
amended
to
read
as
4
follows:
5
Add
back
the
following
percentage
of
the
qualified
business
6
income
deduction
deductions
under
section
199A
sections
199A(a)
7
and
199A(g)
of
the
Internal
Revenue
Code
taken
and
allowable
in
8
calculating
federal
taxable
income
for
the
applicable
tax
year:
9
Sec.
2.
Section
422.9,
subsection
2A,
paragraph
a,
10
unnumbered
paragraph
1,
Code
2019,
is
amended
to
read
as
11
follows:
12
The
following
percentage
of
the
qualified
business
income
13
deduction
deductions
under
section
199A
sections
199A(a)
and
14
199A(g)
of
the
Internal
Revenue
Code
taken
and
allowable
in
15
calculating
federal
taxable
income
for
the
applicable
tax
year:
16
Sec.
3.
Section
422.9,
subsection
2A,
paragraph
b,
Code
17
2019,
is
amended
to
read
as
follows:
18
b.
Notwithstanding
paragraph
“a”
,
and
section
422.4,
19
subsection
16
,
paragraph
“e”
,
for
an
entity
electing
or
20
required
to
file
a
composite
return
under
section
422.13,
21
subsection
5
,
the
deduction
allowed
under
this
subsection
for
22
purposes
of
the
composite
return
shall
be
an
amount
equal
to
23
the
applicable
percentage
described
in
paragraph
“a”
of
the
24
deduction
deductions
that
would
be
allowable
for
federal
income
25
tax
purposes
under
section
199A
sections
199A(a)
and
199A(g)
of
26
the
Internal
Revenue
Code
by
an
individual
taxpayer
reporting
27
the
same
items
of
income
and
loss
that
are
included
in
the
28
composite
return.
29
Sec.
4.
Section
422.11S,
subsection
7,
paragraph
b,
Code
30
2019,
is
amended
to
read
as
follows:
31
b.
The
department
shall
authorize
a
school
tuition
32
organization
to
issue
tax
credit
certificates
for
contributions
33
made
to
the
school
tuition
organization.
The
aggregate
amount
34
of
tax
credit
certificates
that
the
department
shall
authorize
35
-1-
LSB
2786YC
(14)
88
jm/jh
1/
24
H.F.
_____
for
a
school
tuition
organization
for
a
tax
calendar
year
shall
1
be
determined
for
that
organization
pursuant
to
subsection
8
.
2
However,
a
school
tuition
organization
shall
not
be
authorized
3
to
issue
tax
credit
certificates
unless
the
organization
is
4
controlled
by
a
board
of
directors
consisting
of
at
least
5
seven
members.
The
names
and
addresses
of
the
members
shall
6
be
provided
to
the
department
and
shall
be
made
available
7
by
the
department
to
the
public,
notwithstanding
any
state
8
confidentiality
restrictions.
9
Sec.
5.
Section
422.11S,
subsection
8,
paragraph
a,
10
subparagraph
(2),
Code
2019,
is
amended
to
read
as
follows:
11
(2)
“Total
approved
tax
credits”
means
for
the
tax
year
12
beginning
in
the
2006
calendar
year,
two
million
five
hundred
13
thousand
dollars,
for
the
tax
year
beginning
in
the
2007
14
calendar
year,
five
million
dollars,
for
tax
calendar
years
15
beginning
on
or
after
January
1,
2008,
but
before
January
1,
16
2012,
seven
million
five
hundred
thousand
dollars,
for
tax
17
calendar
years
beginning
on
or
after
January
1,
2012,
but
18
before
January
1,
2014,
eight
million
seven
hundred
fifty
19
thousand
dollars,
and
for
tax
calendar
years
beginning
on
or
20
after
January
1,
2014,
but
before
January
1,
2019,
twelve
21
million
dollars,
and
for
tax
calendar
years
beginning
on
or
22
after
January
1,
2019,
thirteen
million
dollars.
23
Sec.
6.
Section
422.11S,
subsection
8,
paragraph
b,
24
unnumbered
paragraph
1,
Code
2019,
is
amended
to
read
as
25
follows:
26
Each
year
by
December
1,
the
department
shall
authorize
27
school
tuition
organizations
to
issue
tax
credit
certificates
28
for
the
following
tax
calendar
year.
However,
for
the
tax
year
29
beginning
in
the
2006
calendar
year
only,
the
department,
by
30
September
1,
2006,
shall
authorize
school
tuition
organizations
31
to
issue
tax
credit
certificates
for
the
2006
calendar
tax
32
year.
For
the
tax
year
beginning
in
the
2006
calendar
year
33
only,
each
school
served
by
a
school
tuition
organization
shall
34
submit
a
participation
form
to
the
department
by
August
1,
35
-2-
LSB
2786YC
(14)
88
jm/jh
2/
24
H.F.
_____
2006,
providing
the
certified
enrollment
as
of
the
third
Friday
1
of
September
2005,
along
with
the
school
tuition
organization
2
that
represents
the
school.
Tax
credit
certificates
available
3
for
issue
by
each
school
tuition
organization
shall
be
4
determined
in
the
following
manner:
5
Sec.
7.
Section
422.11S,
subsection
9,
unnumbered
paragraph
6
1,
Code
2019,
is
amended
to
read
as
follows:
7
A
school
tuition
organization
that
receives
a
voluntary
cash
8
or
noncash
contribution
pursuant
to
this
section
shall
report
9
to
the
department,
on
a
form
prescribed
by
the
department,
10
by
January
12
of
each
tax
calendar
year
all
of
the
following
11
information:
12
Sec.
8.
Section
422.11S,
subsection
9,
paragraphs
b
and
c,
13
Code
2019,
are
amended
to
read
as
follows:
14
b.
The
total
number
and
dollar
value
of
contributions
15
received
and
the
total
number
and
dollar
value
of
the
tax
16
credits
approved
during
the
previous
tax
calendar
year.
17
c.
A
list
of
the
individual
donors
for
the
previous
tax
18
calendar
year
that
includes
the
dollar
value
of
each
donation
19
and
the
dollar
value
of
each
approved
tax
credit.
20
Sec.
9.
Section
422.12C,
subsection
4,
Code
2019,
is
amended
21
to
read
as
follows:
22
4.
Married
taxpayers
who
have
filed
joint
federal
returns
23
electing
to
file
separate
returns
or
to
file
separately
on
a
24
combined
return
form
must
determine
the
child
and
dependent
25
care
credit
under
subsection
1
or
the
early
childhood
26
development
tax
credit
under
subsection
2
based
upon
their
27
combined
net
income
and
allocate
the
total
credit
amount
to
28
each
spouse
in
the
proportion
that
each
spouse’s
respective
net
29
income
bears
to
the
total
combined
net
income.
Nonresidents
or
30
part-year
residents
of
Iowa
must
determine
their
Iowa
child
and
31
dependent
care
credit
under
subsection
1
or
the
early
childhood
32
development
tax
credit
under
subsection
2
in
the
ratio
of
33
their
Iowa
source
net
income
to
their
all
source
net
income.
34
Nonresidents
or
part-year
residents
who
are
married
and
elect
35
-3-
LSB
2786YC
(14)
88
jm/jh
3/
24
H.F.
_____
to
file
separate
returns
or
to
file
separately
on
a
combined
1
return
form
must
allocate
the
Iowa
child
and
dependent
care
2
credit
under
subsection
1
or
the
early
childhood
development
3
tax
credit
under
subsection
2
between
the
spouses
in
the
ratio
4
of
each
spouse’s
Iowa
source
net
income
to
the
combined
Iowa
5
source
net
income
of
the
taxpayers.
6
Sec.
10.
Section
422.60,
subsection
2,
paragraph
b,
Code
7
2019,
is
amended
by
adding
the
following
new
subparagraph:
8
NEW
SUBPARAGRAPH
.
(6)
For
purposes
of
this
paragraph,
9
“Internal
Revenue
Code”
means
the
Internal
Revenue
Code
of
10
1954,
prior
to
the
date
of
its
redesignation
as
the
Internal
11
Revenue
Code
of
1986
by
the
Tax
Reform
Act
of
1986,
or
means
12
the
Internal
Revenue
Code
of
1986
as
amended
and
in
effect
on
13
December
21,
2017.
This
definition
shall
not
be
construed
to
14
include
any
amendment
to
the
Internal
Revenue
Code
enacted
15
after
the
date
specified
in
the
preceding
sentence,
including
16
any
amendment
with
retroactive
applicability
or
effectiveness.
17
Sec.
11.
LIKE-KIND
EXCHANGES
OF
PERSONAL
PROPERTY
18
UNDER
CORPORATE
INCOME
TAX
AND
FRANCHISE
TAX
FOR
TAX
YEAR
19
2019.
Notwithstanding
any
other
provision
of
law
to
the
20
contrary,
all
of
the
following
shall
apply
when
computing
net
21
income
for
purposes
of
the
corporation
income
tax
or
franchise
22
tax
under
section
422.35
for
tax
years
beginning
during
the
23
2019
calendar
year:
24
1.
The
rules
for
nonrecognition
of
gain
or
loss
from
25
exchanges
of
real
property
held
for
productive
use
or
26
investment
and
not
held
primarily
for
sale,
as
provided
in
27
section
1031
of
the
Internal
Revenue
Code,
as
amended
up
to
and
28
including
March
24,
2018,
apply
for
state
income
tax
purposes
29
with
regard
to
exchanges
of
real
property.
30
2.
The
rules
for
nonrecognition
of
gain
or
loss
from
31
exchanges
of
property
other
than
real
property
held
for
32
productive
use
or
investment
as
provided
in
section
1031
of
the
33
Internal
Revenue
Code,
as
amended
up
to
and
including
December
34
21,
2017,
apply
for
state
income
tax
purposes,
notwithstanding
35
-4-
LSB
2786YC
(14)
88
jm/jh
4/
24
H.F.
_____
any
other
provision
of
law
to
the
contrary.
If
the
taxpayer’s
1
federal
taxable
income
includes
gain
or
loss
from
property,
2
other
than
real
property
described
in
subsection
1,
and
the
3
taxpayer
elects
to
have
this
subsection
apply,
the
following
4
adjustments
shall
be
made:
5
a.
(1)
Subtract
the
total
amount
of
gain
related
to
the
6
sale
or
exchange
of
the
property
as
properly
reported
for
7
federal
tax
purposes
under
the
Internal
Revenue
Code.
8
(2)
Add
back
any
gain
related
to
the
sale
or
exchange
of
the
9
property
to
the
extent
such
gain
does
not
qualify
for
deferral
10
under
section
1031
of
the
Internal
Revenue
Code,
as
amended
11
up
to
and
including
December
21,
2017,
which
gain
shall
be
12
calculated
using
the
taxpayer’s
adjusted
basis
in
the
property
13
for
state
tax
purposes.
14
b.
(1)
Add
the
total
amount
of
loss
related
to
the
sale
or
15
exchange
of
the
property
as
properly
reported
for
federal
tax
16
purposes
under
the
Internal
Revenue
Code.
17
(2)
Subtract
any
loss
related
to
the
sale
or
exchange
of
the
18
property
to
the
extent
such
loss
does
not
qualify
for
deferral
19
under
section
1031
of
the
Internal
Revenue
Code,
as
amended
20
up
to
and
including
December
21,
2017,
which
loss
shall
be
21
calculated
using
the
taxpayer’s
adjusted
basis
in
the
property
22
for
state
tax
purposes.
23
c.
Any
other
adjustments
to
gains,
losses,
deductions,
or
24
tax
basis
for
the
property
given
up
or
received
in
the
sale
or
25
exchange
pursuant
to
rules
adopted
by
the
director.
26
Sec.
12.
REFUNDS
——
EARLY
CHILDHOOD
DEVELOPMENT
TAX
27
CREDIT.
Notwithstanding
any
provision
of
law
to
the
contrary,
28
for
tax
years
beginning
prior
to
January
1,
2019,
refunds
of
29
the
early
childhood
development
tax
credit
provided
in
section
30
422.12C,
subsection
2,
requested
on
or
after
the
effective
31
date
of
the
provision
of
this
division
of
this
Act
amending
32
section
422.12C,
subsection
4,
shall
not
exceed
the
amount
33
allowed
under
section
422.12C,
subsection
4,
as
amended
by
this
34
division
of
this
Act.
35
-5-
LSB
2786YC
(14)
88
jm/jh
5/
24
H.F.
_____
Sec.
13.
LEGISLATIVE
INTENT.
It
is
the
intent
of
the
1
general
assembly
that
the
provisions
of
this
division
of
2
this
Act
amending
section
422.11S
are
conforming
amendments
3
consistent
with
current
state
law,
and
that
the
amendments
do
4
not
change
the
application
of
current
law
but
instead
reflect
5
current
law
both
before
and
after
the
enactment
of
this
Act.
6
Sec.
14.
EFFECTIVE
DATE.
The
following,
being
deemed
of
7
immediate
importance,
take
effect
upon
enactment:
8
1.
The
section
of
this
division
of
this
Act
amending
section
9
422.12C,
subsection
4.
10
2.
The
section
of
this
division
of
this
Act
relating
to
11
refunds
for
the
early
childhood
development
tax
credit.
12
3.
The
section
of
this
division
of
this
Act
relating
to
13
like-kind
exchanges
of
personal
property
under
corporate
income
14
tax
and
franchise
tax.
15
Sec.
15.
RETROACTIVE
APPLICABILITY.
The
following
apply
16
retroactively
to
January
1,
2019,
for
tax
years
beginning
on
17
or
after
that
date:
18
1.
The
section
of
this
division
of
this
Act
amending
section
19
422.4,
subsection
16,
paragraph
“e”,
unnumbered
paragraph
1.
20
2.
The
sections
of
this
division
of
this
Act
amending
21
section
422.9,
subsection
2A.
22
3.
The
section
of
this
division
of
this
Act
amending
section
23
422.12C,
subsection
4.
24
4.
The
section
of
this
division
of
this
Act
amending
section
25
422.60,
subsection
2,
paragraph
“b”.
26
Sec.
16.
RETROACTIVE
APPLICABILITY
——
LIKE-KIND
EXCHANGES
27
OF
PERSONAL
PROPERTY.
The
section
of
this
division
of
this
28
Act
relating
to
like-kind
exchanges
of
personal
property
under
29
corporate
income
tax
and
franchise
tax
applies
retroactively
to
30
January
1,
2019,
for
tax
years
beginning
on
or
after
that
date,
31
but
before
January
1,
2020.
32
DIVISION
II
33
ADMINISTRATIVE
PROVISIONS
34
Sec.
17.
Section
422.20,
Code
2019,
is
amended
by
adding
the
35
-6-
LSB
2786YC
(14)
88
jm/jh
6/
24
H.F.
_____
following
new
subsection:
1
NEW
SUBSECTION
.
5.
The
department
may
permit,
by
rule,
the
2
disclosure
of
state
tax
information
to
a
person
a
taxpayer
has
3
authorized
to
receive
such
state
tax
information,
in
the
manner
4
prescribed
by
the
department.
5
Sec.
18.
Section
422.72,
Code
2019,
is
amended
by
adding
the
6
following
new
subsection:
7
NEW
SUBSECTION
.
8.
The
department
may
permit,
by
rule,
the
8
disclosure
of
state
tax
information
to
a
person
a
taxpayer
has
9
authorized
to
receive
such
state
tax
information,
in
the
manner
10
prescribed
by
the
department.
11
DIVISION
III
12
SALES
AND
USE
TAX
13
Sec.
19.
Section
423.2,
subsection
1,
paragraph
a,
14
subparagraph
(5),
subparagraph
division
(a),
Code
2019,
is
15
amended
to
read
as
follows:
16
(a)
If
a
service
or
warranty
contract
does
not
specify
a
fee
17
amount
for
nontaxable
services
or
taxable
personal
property,
18
the
tax
imposed
pursuant
to
this
section
shall
be
imposed
upon
19
an
amount
equal
to
one-half
of
the
sales
price
of
the
contract.
20
Sec.
20.
Section
423.2,
subsection
6,
paragraph
k,
Code
21
2019,
is
amended
to
read
as
follows:
22
k.
Carpentry
repair
and
installation
.
23
Sec.
21.
Section
423.3,
Code
2019,
is
amended
by
adding
the
24
following
new
subsection:
25
NEW
SUBSECTION
.
16A.
a.
The
sales
price
from
the
sale
of
26
a
grain
bin,
including
material
or
replacement
parts
used
to
27
construct
or
repair
a
grain
bin.
28
b.
For
purposes
of
this
subsection,
“grain
bin”
means
29
property
that
is
vented
and
covered
with
corrugated
metal
or
30
similar
material,
and
that
is
primarily
used
to
hold
loose
31
grain
for
drying
or
storage.
32
Sec.
22.
Section
423.3,
subsection
47,
paragraph
c,
33
subparagraph
(3),
Code
2019,
is
amended
by
striking
the
34
subparagraph
and
inserting
in
lieu
thereof
the
following:
35
-7-
LSB
2786YC
(14)
88
jm/jh
7/
24
H.F.
_____
(3)
The
following
within
the
scope
of
section
427A.1,
1
subsection
1,
paragraphs
“h”
and
“i”
:
2
(a)
Computers.
3
(b)
Machinery.
4
(c)
Equipment,
including
pollution
control
equipment.
5
(d)
Replacement
parts.
6
(e)
Supplies.
7
(f)
Materials
used
to
construct
or
self-construct
the
8
following:
9
(i)
Computers.
10
(ii)
Machinery.
11
(iii)
Equipment,
including
pollution
control
equipment.
12
(iv)
Replacement
parts.
13
(v)
Supplies.
14
Sec.
23.
Section
423.3,
subsection
104,
paragraph
a,
Code
15
2019,
is
amended
to
read
as
follows:
16
a.
The
sales
price
of
specified
digital
products
and
of
17
prewritten
computer
software
sold,
and
of
enumerated
services
18
described
in
section
423.2,
subsection
1,
paragraph
“a”
,
19
subparagraph
(5),
or
section
423.2,
subsection
6
,
paragraphs
20
“bq”
,
“br”
,
“bs”
,
and
“bu”
furnished,
to
a
commercial
enterprise
21
for
use
exclusively
by
the
commercial
enterprise.
The
use
of
22
prewritten
computer
software,
a
specified
digital
product,
or
23
service
fails
to
qualify
as
a
use
exclusively
by
the
commercial
24
enterprise
if
its
use
for
noncommercial
purposes
is
more
than
25
de
minimis.
26
Sec.
24.
Section
423.14A,
subsection
3,
paragraph
b,
Code
27
2019,
is
amended
by
striking
the
paragraph.
28
Sec.
25.
Section
423.14A,
subsection
3,
paragraph
d,
29
subparagraph
(1),
Code
2019,
is
amended
to
read
as
follows:
30
(1)
A
marketplace
facilitator
that
makes
or
facilitates
31
Iowa
sales
on
its
own
behalf
or
for
one
or
more
marketplace
32
sellers
equal
to
or
exceeding
one
hundred
thousand
dollars
,
33
or
in
two
hundred
or
more
separate
transactions,
for
an
34
immediately
preceding
calendar
year
or
a
current
calendar
year.
35
-8-
LSB
2786YC
(14)
88
jm/jh
8/
24
H.F.
_____
Sec.
26.
Section
423.14A,
subsection
3,
paragraph
e,
1
subparagraph
(1),
unnumbered
paragraph
1,
Code
2019,
is
amended
2
to
read
as
follows:
3
A
referrer
if,
for
any
immediately
preceding
calendar
year
4
or
a
current
calendar
year,
one
hundred
thousand
dollars
or
5
more
in
Iowa
sales
or
two
hundred
or
more
separate
Iowa
sales
6
transactions
result
from
referrals
from
a
platform
of
the
7
referrer.
A
referrer
is
not
required
to
collect
and
remit
8
sales
and
use
tax
pursuant
to
this
paragraph
if
the
referrer
9
does
all
of
the
following:
10
Sec.
27.
Section
423.14A,
subsection
3,
paragraph
e,
11
subparagraph
(1),
subparagraph
division
(c),
unnumbered
12
paragraph
1,
Code
2019,
is
amended
to
read
as
follows:
13
The
referrer
provides
the
department
with
monthly
annual
14
reports
in
an
electronic
format
and
in
the
manner
prescribed
15
by
the
department,
which
monthly
annual
reports
contain
all
of
16
the
following:
17
Sec.
28.
Section
423.14A,
subsection
3,
paragraph
e,
Code
18
2019,
is
amended
by
adding
the
following
new
subparagraph:
19
NEW
SUBPARAGRAPH
.
(5)
This
paragraph
is
subject
to
20
implementation
by
the
department
by
rule
and
shall
not
require
21
a
referrer
to
collect
tax
or
comply
with
the
notice
and
22
reporting
requirements
and
other
provisions
of
this
paragraph
23
unless
and
until
such
administrative
rules
take
effect.
24
Sec.
29.
Section
423.48,
subsection
2,
paragraph
c,
Code
25
2019,
is
amended
by
striking
the
paragraph.
26
Sec.
30.
TAXATION
AND
EXEMPTION
OF
COMPUTERS
TASK
FORCE.
A
27
taxation
and
exemption
of
computers
task
force
is
created.
The
28
department
of
revenue
shall
initiate
and
coordinate
the
task
29
force
and
provide
staff
assistance.
It
is
the
intent
of
the
30
general
assembly
that
the
task
force
include
representatives
31
of
appropriate
stakeholders
identified
by
the
director
of
32
the
department
of
revenue.
The
director
of
revenue
or
the
33
director’s
designee
shall
serve
as
chairperson
of
the
task
34
force.
35
-9-
LSB
2786YC
(14)
88
jm/jh
9/
24
H.F.
_____
The
task
force
shall
be
charged
with
reviewing
the
1
definition
of
“computer”
as
used
throughout
the
portions
of
the
2
Iowa
Code
and
the
Iowa
Administrative
Code
administered
by
the
3
department
of
revenue
including
the
exemption
for
computers
4
provided
in
section
423.3,
subsection
47,
paragraph
“a”,
5
subparagraph
(4).
If
the
task
force
recommends
modifications
6
to
the
current
definition
of
“computer”
including
the
exemption
7
for
computers
provided
in
section
423.3,
subsection
47,
8
paragraph
“a”,
subparagraph
(4),
the
department
of
revenue
9
shall
provide
any
recommendations
to
the
general
assembly
by
10
January
1,
2020.
11
Sec.
31.
EFFECTIVE
DATE.
The
following,
being
deemed
of
12
immediate
importance,
take
effect
upon
enactment:
13
The
section
of
this
division
of
this
Act
amending
section
14
423.3,
subsection
47,
paragraph
“c”,
subparagraph
(3).
15
Sec.
32.
RETROACTIVE
APPLICABILITY.
The
following
applies
16
retroactively
to
January
1,
2016,
for
tax
years
beginning
on
17
or
after
that
date:
18
The
section
of
this
division
of
this
Act
amending
section
19
423.3,
subsection
47,
paragraph
“c”,
subparagraph
(3).
20
DIVISION
IV
21
AUTOMOBILE
RENTAL
EXCISE
TAX
22
Sec.
33.
Section
423.14A,
subsection
1,
paragraph
b,
23
subparagraph
(3),
Code
2019,
is
amended
to
read
as
follows:
24
(3)
A
“rental
platform”
,
as
defined
in
section
423C.2
,
that
25
meets
the
requirements
described
in
person
who
is
not
required
26
to
collect
and
remit
automobile
rental
excise
tax
pursuant
to
27
section
423C.3,
subsection
3
,
paragraph
“c”
,
subparagraph
(2),
28
shall
not
be
considered
a
“marketplace
facilitator”
with
respect
29
to
any
sale
of
a
transportation
service
under
section
423.2,
30
subsection
6
,
paragraph
“bf”
,
or
section
423.5,
subsection
1
,
31
paragraph
“e”
,
consisting
of
the
rental
of
vehicles
subject
32
to
registration
which
are
registered
for
a
gross
weight
of
33
thirteen
tons
or
less
for
a
period
of
sixty
days
or
less.
34
Sec.
34.
Section
423C.2,
subsection
3,
paragraphs
a
and
b,
35
-10-
LSB
2786YC
(14)
88
jm/jh
10/
24
H.F.
_____
Code
2019,
are
amended
to
read
as
follows:
1
a.
A
person
or
any
affiliate
of
a
person
that
owns
or
2
controls
an
automobile
and
makes
the
automobile
available
for
3
rent
through
the
person
or
any
affiliate,
or
through
a
rental
4
platform
or
rental
facilitator
any
other
person
required
to
5
collect
sales
or
use
tax
under
chapter
423
.
6
b.
A
person
or
any
affiliate
of
a
person
who
possesses
or
7
acquires
a
right
or
interest
in
any
automobile
with
an
intent
8
to
rent
the
automobile
to
another
person
,
or
through
the
person
9
or
any
affiliate,
or
through
a
rental
platform
or
a
rental
10
facilitator
any
other
person
required
to
collect
sales
or
use
11
tax
under
chapter
423
.
12
Sec.
35.
Section
423C.2,
subsection
6,
Code
2019,
is
amended
13
to
read
as
follows:
14
6.
“Facilitation
fee”
means
any
consideration,
by
whatever
15
name
called,
that
a
rental
facilitator
or
a
rental
platform
16
person
charges
to
a
user
for
facilitating
the
user’s
rental
17
of
an
automobile.
“Facilitation
fee”
does
not
include
any
18
commission
an
automobile
provider
pays
to
a
rental
facilitator
19
or
a
rental
platform
person
for
facilitating
the
rental
of
an
20
automobile.
21
Sec.
36.
Section
423C.2,
subsections
9
and
10,
Code
2019,
22
are
amended
by
striking
the
subsections.
23
Sec.
37.
Section
423C.2,
subsection
11,
Code
2019,
is
24
amended
to
read
as
follows:
25
11.
“Rental
price”
means
all
consideration
charged
for
26
the
renting
and
facilitation
of
renting
of
an
automobile
27
before
taxes,
including
but
not
limited
to
facilitation
fees,
28
reservation
fees,
services
fees,
nonrefundable
deposits,
and
29
any
other
direct
or
indirect
charge
made
or
consideration
30
provided
in
connection
with
the
renting
or
facilitation
of
31
renting
of
an
automobile
the
same
as
“sales
price”
as
defined
32
in
section
423.1,
which
term
includes
but
is
not
limited
33
to
facilitation
fees,
reservation
fees,
services
fees,
34
nonrefundable
deposits,
and
any
other
direct
or
indirect
charge
35
-11-
LSB
2786YC
(14)
88
jm/jh
11/
24
H.F.
_____
made
or
consideration
provided
in
connection
with
the
renting
1
or
facilitation
of
renting
an
automobile
.
2
Sec.
38.
Section
423C.3,
Code
2019,
is
amended
to
read
as
3
follows:
4
423C.3
Tax
on
rental
of
automobiles
——
collection
and
5
remittance
of
tax.
6
1.
For
purposes
of
this
section
:
7
a.
“Discount
rental
charge”
means
the
amount
an
automobile
8
provider
charges
to
a
rental
facilitator
for
the
rental
of
an
9
automobile,
excluding
any
applicable
tax.
10
b.
“Travel
package”
means
an
automobile
rental
bundled
11
with
one
or
more
separate
components
such
as
lodging,
air
12
transportation,
or
similar
items
and
charged
for
a
single
13
retail
price.
14
2.
1.
A
tax
of
five
percent
is
imposed
upon
the
rental
15
price
of
an
automobile
if
the
rental
transaction
is
subject
to
16
the
sales
and
services
tax
under
chapter
423,
subchapter
II
,
or
17
the
use
tax
under
chapter
423,
subchapter
III
.
The
tax
shall
18
not
be
imposed
on
any
rental
transaction
not
taxable
under
the
19
state
sales
and
services
tax,
as
provided
in
section
423.3
,
or
20
the
state
use
tax,
as
provided
in
section
423.6
,
on
automobile
21
rental
receipts.
22
3.
2.
This
subsection
shall
govern
the
collection
and
23
remittance
of
the
tax
imposed
under
subsection
2
The
tax
24
imposed
under
subsection
1
shall
be
collected
and
remitted
to
25
the
department
by
all
persons
required
to
collect
state
sales
26
and
use
tax
on
the
rental
transaction
under
chapter
423
.
27
a.
Unless
otherwise
provided
in
this
subsection
,
the
28
automobile
provider
shall
collect
the
tax
by
adding
the
tax
to
29
the
rental
price
of
the
automobile
and
the
tax,
when
collected,
30
shall
be
stated
as
a
distinct
item
separate
and
apart
from
31
the
rental
price
of
the
automobile
and
the
sales
and
services
32
tax
imposed
under
chapter
423,
subchapter
II
,
or
the
use
tax
33
imposed
under
chapter
423,
subchapter
III
.
34
b.
If
a
transaction
for
the
rental
of
an
automobile
involves
35
-12-
LSB
2786YC
(14)
88
jm/jh
12/
24
H.F.
_____
a
rental
facilitator,
all
of
the
following
shall
occur
in
the
1
order
prescribed:
2
(1)
The
rental
facilitator
shall
collect
the
tax
on
any
3
rental
price
that
the
user
pays
to
the
rental
facilitator
in
4
the
same
manner
as
an
automobile
provider
under
paragraph
“a”
.
5
(2)
(a)
Unless
otherwise
required
by
rule
or
order
of
6
the
department,
the
rental
facilitator
shall
remit
to
the
7
automobile
provider
that
portion
of
the
tax
collected
on
the
8
rental
price
that
represents
the
discount
rental
charge.
9
(b)
No
assessment
shall
be
made
against
a
rental
facilitator
10
for
tax
due
on
a
discount
rental
charge
if
the
rental
11
facilitator
collected
the
tax
and
remitted
it
to
an
automobile
12
provider
that
has
a
valid
tax
permit
required
under
this
13
chapter
or
under
chapter
423
.
This
subparagraph
division
shall
14
not
apply
if
the
rental
facilitator
and
automobile
provider
15
are
affiliates,
or
if
the
department
requires
the
rental
16
facilitator
to
remit
taxes
collected
on
that
portion
of
the
17
sales
price
that
represents
the
discount
rental
charge
directly
18
to
the
department.
19
(3)
The
rental
facilitator
shall
remit
any
remaining
tax
it
20
collected
to
the
department.
21
(4)
(a)
The
automobile
provider
shall
collect
and
remit
22
to
the
department
any
taxes
the
rental
facilitator
remitted
to
23
the
automobile
provider,
and
shall
collect
and
remit
to
the
24
department
any
taxes
due
on
any
amount
of
rental
price
the
user
25
paid
to
the
automobile
provider.
26
(b)
No
assessment
shall
be
made
against
an
automobile
27
provider
for
any
tax
due
on
a
discount
rental
charge
that
28
was
not
remitted
to
the
automobile
provider
by
a
rental
29
facilitator.
This
subparagraph
division
shall
not
apply
if
the
30
automobile
provider
and
the
rental
facilitator
are
affiliates.
31
(5)
Notwithstanding
any
other
provision
of
this
paragraph
32
to
the
contrary,
if
a
rental
facilitator
and
its
affiliates
33
facilitate
total
rentals
under
this
chapter
and
chapter
34
423A
that
are
equal
to
or
less
than
an
aggregate
amount
of
35
-13-
LSB
2786YC
(14)
88
jm/jh
13/
24
H.F.
_____
rental
price
and
sales
price
of
ten
thousand
dollars
for
an
1
immediately
preceding
calendar
year
or
a
current
calendar
year,
2
or
in
ten
or
fewer
separate
transactions
for
an
immediately
3
preceding
calendar
year
or
a
current
calendar
year,
the
4
rental
facilitator
shall
not
be
required
to
collect
tax
on
the
5
amount
of
sales
price
that
represents
the
rental
facilitator’s
6
facilitation
fee.
7
c.
(1)
If
a
transaction
for
the
rental
of
an
automobile
8
involves
a
rental
platform,
other
than
a
rental
platform
9
described
in
subparagraph
(2),
the
rental
platform
shall
10
collect
and
remit
the
tax
imposed
under
this
chapter
in
the
11
same
manner
as
an
automobile
provider
under
paragraph
“a”
.
12
(2)
3.
A
rental
platform
person
is
not
required
to
collect
13
and
remit
the
tax
imposed
under
this
chapter
in
the
same
manner
14
as
an
automobile
provider
under
paragraph
“a”
if
the
rental
15
platform
person
meets
all
of
the
following
requirements:
16
a.
The
person
or
any
affiliate
of
the
person
is
not
an
17
automobile
provider.
18
b.
The
person
or
any
affiliate
of
the
person
facilitates
the
19
renting
of
an
automobile
by
doing
all
of
the
following:
20
(1)
The
person
owns,
operates,
or
controls
an
automobile
21
rental
marketplace
that
allows
an
automobile
provider
who
is
22
not
an
affiliate
of
the
person
to
offer
or
list
an
automobile
23
for
rent
on
the
marketplace.
For
purposes
of
this
paragraph,
24
it
is
immaterial
whether
or
not
the
automobile
provider
has
25
a
tax
permit
under
this
chapter
or
chapter
423
or
whether
26
the
automobile
is
owned
by
a
natural
person
or
by
a
business
27
entity.
28
(2)
The
person
or
affiliate
of
the
person
collects
or
29
processes
the
rental
price
charged
to
the
user.
30
(a)
c.
The
only
sales
the
rental
platform
person
and
31
its
affiliates
of
the
person
facilitate
that
are
subject
to
32
tax
under
chapter
423
are
sales
of
a
transportation
service
33
under
section
423.2,
subsection
6
,
paragraph
“bf”
,
or
section
34
423.5,
subsection
1
,
paragraph
“e”
,
consisting
of
the
rental
35
-14-
LSB
2786YC
(14)
88
jm/jh
14/
24
H.F.
_____
of
vehicles
subject
to
registration
which
are
registered
for
1
a
gross
weight
of
thirteen
tons
or
less
for
a
period
of
sixty
2
days
or
less.
3
(b)
d.
The
rental
platform
person
operates
a
peer-to-peer
4
automobile
sharing
marketplace.
5
(3)
4.
For
any
rental
transaction
for
which
the
rental
6
platform
a
person
is
required
to
or
elects
to
collect
and
7
remit
the
tax
under
this
chapter
,
the
rental
platform
person
8
shall
also
be
liable
for
the
collection
and
remittance
of
any
9
sales
or
use
tax
due
on
that
transaction
under
section
423.2,
10
subsection
6
,
paragraph
“bf”
,
or
section
423.5,
subsection
11
1
,
paragraph
“e”
,
notwithstanding
any
other
provision
to
the
12
contrary
in
chapter
423
.
13
(4)
5.
For
any
rental
transaction
for
which
the
rental
14
platform
person
is
not
required
to
collect
and
remit
the
15
tax
under
this
chapter
as
provided
under
subparagraph
(2)
16
subsection
3
,
the
automobile
provider
shall
be
solely
liable
17
for
any
amount
of
uncollected
or
unremitted
tax
under
this
18
chapter
and
chapter
423
.
19
DIVISION
V
20
TELEPHONE
COMPANY
PROPERTY
21
Sec.
39.
Section
476.1D,
Code
2019,
is
amended
by
adding
the
22
following
new
subsection:
23
NEW
SUBSECTION
.
10.
a.
The
board,
at
the
request
of
a
24
long
distance
telephone
company,
shall
classify
such
company
25
as
a
competitive
long
distance
telephone
company
if
more
26
than
half
of
the
company’s
revenues
from
its
Iowa
intrastate
27
telecommunications
services
and
facilities
are
received
28
from
services
and
facilities
that
the
board
has
determined
29
to
be
subject
to
effective
competition,
or
if
more
than
30
half
of
the
company’s
revenues
from
its
Iowa
intrastate
31
telecommunications
services
and
facilities
are
received
from
32
intralata
interexchange
services
and
facilities.
For
purposes
33
of
this
subsection,
“intralata
interexchange
services”
means
34
those
interexchange
services
that
originate
and
terminate
35
-15-
LSB
2786YC
(14)
88
jm/jh
15/
24
H.F.
_____
within
the
same
local
access
transport
area.
1
b.
The
board
shall
promptly
notify
the
director
of
revenue
2
that
a
long
distance
telephone
company
has
been
classified
3
as
a
competitive
long
distance
telephone
company.
Upon
such
4
notification
by
the
board,
the
director
of
revenue
shall
assess
5
the
property
of
such
competitive
long
distance
telephone
6
company,
which
property
is
first
assessed
for
taxation
in
this
7
state
on
or
after
January
1,
1996,
in
the
same
manner
as
all
8
other
property
assessed
as
commercial
property
by
the
local
9
assessor
under
chapters
427,
427A,
427B,
428,
and
441.
As
used
10
in
this
section,
“long
distance
telephone
company”
means
an
11
entity
that
provides
telephone
service
and
facilities
between
12
local
exchanges,
but
does
not
include
a
cellular
service
13
provider
or
a
local
exchange
utility
holding
a
certificate
14
issued
under
section
476.29,
subsection
12.
15
Sec.
40.
Section
476.1D,
subsection
10,
as
enacted
in
this
16
division
of
this
Act,
is
amended
by
striking
the
subsection.
17
Sec.
41.
EFFECTIVE
DATE.
The
following,
being
deemed
of
18
immediate
importance,
takes
effect
upon
enactment:
19
The
section
of
this
division
of
this
Act
enacting
section
20
476.1D,
subsection
10.
21
Sec.
42.
RETROACTIVE
APPLICABILITY.
The
following
applies
22
retroactively
to
July
1,
2018,
for
assessment
years
beginning
23
on
or
after
that
date:
24
The
section
of
this
division
of
this
Act
enacting
section
25
476.1D,
subsection
10.
26
Sec.
43.
EFFECTIVE
DATE.
The
following
takes
effect
July
27
1,
2021:
28
The
section
of
this
division
of
this
Act
striking
section
29
476.1D,
subsection
10.
30
Sec.
44.
APPLICABILITY.
The
following
applies
to
31
assessment
years
beginning
on
or
after
January
1,
2022:
32
The
section
of
this
division
of
this
Act
striking
section
33
476.1D,
subsection
10.
34
DIVISION
VI
35
-16-
LSB
2786YC
(14)
88
jm/jh
16/
24
H.F.
_____
TARGETED
JOBS
WITHHOLDING
CREDIT
1
Sec.
45.
Section
403.19A,
subsection
3,
paragraph
c,
2
subparagraph
(2),
Code
2019,
is
amended
to
read
as
follows:
3
(2)
The
pilot
project
city
and
the
economic
development
4
authority
shall
not
enter
into
a
withholding
agreement
after
5
June
30,
2019
2020
.
6
DIVISION
VII
7
SCHOOL
TUITION
ORGANIZATION
TAX
CREDITS
8
Sec.
46.
Section
422.11S,
subsection
8,
paragraph
a,
9
subparagraph
(2),
Code
2019,
is
amended
to
read
as
follows:
10
(2)
“Total
approved
tax
credits”
means
for
the
tax
year
11
beginning
in
the
2006
calendar
year,
two
million
five
hundred
12
thousand
dollars,
for
the
tax
year
beginning
in
the
2007
13
calendar
year,
five
million
dollars,
for
tax
years
beginning
14
on
or
after
January
1,
2008,
but
before
January
1,
2012,
seven
15
million
five
hundred
thousand
dollars,
for
tax
years
beginning
16
on
or
after
January
1,
2012,
but
before
January
1,
2014,
eight
17
million
seven
hundred
fifty
thousand
dollars,
and
for
tax
years
18
beginning
on
or
after
January
1,
2014,
but
before
January
1,
19
2019,
twelve
million
dollars,
and
for
tax
years
beginning
on
20
or
after
January
1,
2019,
but
before
January
1,
2020,
thirteen
21
million
dollars
,
and
for
tax
years
beginning
on
or
after
22
January
1,
2020,
fourteen
million
dollars
.
23
Sec.
47.
CONTINGENT
CODE
EDITOR
DIRECTIVE.
The
Code
editor
24
is
directed
to
harmonize
the
section
of
this
division
of
this
25
Act
amending
section
422.11S
with
the
other
division
of
this
26
Act
amending
section
422.11S,
if
enacted,
by
changing
tax
year
27
to
calendar
year
where
appropriate
and
to
make
other
related
28
changes,
if
necessary,
to
effectuate
such
changes.
29
EXPLANATION
30
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
31
the
explanation’s
substance
by
the
members
of
the
general
assembly.
32
This
bill
relates
to
the
administration
of
the
tax
and
33
related
laws
by
the
department
of
revenue,
including
the
34
administration
and
modification
of
certain
taxes,
tax
credits,
35
-17-
LSB
2786YC
(14)
88
jm/jh
17/
24
H.F.
_____
and
refunds.
1
DIVISION
I
——
INCOME
TAX.
The
amendments
to
Code
sections
2
422.4(16)
and
422.9
modify
Internal
Revenue
Code
references
3
relating
to
the
qualified
business
income
deduction.
The
4
amendments
to
Code
sections
422.4(16)
and
422.9
apply
5
retroactively
for
tax
years
beginning
on
or
after
January
1,
6
2019.
7
The
amendments
to
Code
section
422.11S
specify
that
school
8
tuition
organization
tax
credits
shall
be
authorized
by
the
9
department
of
revenue
on
a
calendar
year
basis
rather
than
10
a
tax
year
basis.
The
amendments
to
Code
section
422.11S
11
also
specify
that
a
school
tuition
organization
shall
be
12
controlled
by
a
board
of
directors
consisting
of
at
least
seven
13
members.
Under
current
law,
the
board
of
directors
shall
be
14
seven
members.
The
bill
provides
that
it
is
the
intent
of
the
15
general
assembly
that
the
amendments
to
Code
section
422.11S
16
are
conforming
amendments
consistent
with
current
law,
and
that
17
the
amendments
do
not
change
the
application
of
current
law.
18
The
bill
also
amends
Code
section
422.11S
in
division
VII
of
19
the
bill.
20
The
amendment
to
Code
section
422.12C
specifies
that
a
21
nonresident
or
part-year
resident
shall
determine
their
early
22
childhood
development
tax
credit
in
the
ratio
of
the
taxpayer’s
23
Iowa
source
net
income
to
their
all
source
net
income.
The
24
amendment
to
Code
section
422.12C
takes
effect
upon
enactment
25
and
applies
retroactively
for
tax
years
beginning
on
or
26
after
January
1,
2019.
The
bill
specifies
that
for
tax
years
27
beginning
prior
to
January
1,
2019,
refunds
of
the
early
28
childhood
development
tax
credit
requested
on
or
after
July
1,
29
2019,
shall
not
exceed
the
amount
allowed
under
Code
section
30
422.12C(4),
as
amended
by
the
bill.
31
The
amendment
to
Code
section
422.60
aligns
the
definition
32
of
“Internal
Revenue
Code”
for
franchise
alternative
minimum
33
tax
purposes
with
the
definition
of
“Internal
Revenue
Code”
34
for
corporate
alternative
minimum
tax
purposes.
The
amendment
35
-18-
LSB
2786YC
(14)
88
jm/jh
18/
24
H.F.
_____
to
Code
section
422.60
applies
retroactively
for
tax
years
1
beginning
on
or
after
January
1,
2019.
2
The
bill
provides
for
a
deferral
of
a
gain
or
loss
resulting
3
from
exchanging
of
property
(1031
exchange)
that
meet
certain
4
conditions.
The
federal
Tax
Cuts
and
Jobs
Act
of
2017
repealed
5
1031
exchanges
with
respect
to
exchanges
of
personal
property.
6
The
Iowa
tax
bill
enacted
last
year
(2018
Iowa
Acts,
chapter
7
1161)
decouples,
for
Iowa
individual
tax
purposes,
from
the
8
federal
repeal
of
1031
exchanges
relating
to
personal
property,
9
and
permits
individuals
to
defer
gain
or
loss
on
qualifying
10
personal
property
for
tax
year
2019
to
the
extent
such
deferral
11
would
have
been
permitted
under
federal
law
prior
to
its
12
amendment
by
the
federal
Tax
Cuts
and
Jobs
Act
of
2017.
The
13
bill
permits
a
corporation
or
financial
institution,
for
Iowa
14
corporate
income
tax
or
franchise
income
tax
purposes,
the
same
15
deferral
of
gain
or
loss
as
individuals
on
qualifying
personal
16
property
for
tax
year
2019
to
the
extent
such
deferral
would
17
have
been
permitted
under
federal
law
prior
to
its
amendment
18
by
the
federal
Tax
Cuts
and
Jobs
Act
of
2017.
The
1031
19
exchange
provision
takes
effect
upon
enactment,
and
applies
20
retroactively
for
tax
years
beginning
January
1,
2019,
but
21
before
January
1,
2020.
22
DIVISION
II
——
ADMINISTRATIVE
PROVISIONS.
The
amendments
23
to
Code
sections
422.20
and
422.72
permit
the
department
of
24
revenue,
by
rule,
to
disclose
state
tax
information
to
a
person
25
a
taxpayer
has
identified
to
receive
such
information
in
the
26
manner
prescribed
by
the
department
of
revenue.
27
DIVISION
III
——
SALES
AND
USE
TAX.
The
amendment
to
Code
28
section
423.2(1)
provides
that
if
a
service
or
warranty
29
contract
does
not
specify
a
fee
amount
for
nontaxable
services
30
or
taxable
personal
property,
the
sales
tax
shall
be
imposed
31
upon
an
amount
equal
to
the
sales
price
of
the
contract.
32
Currently,
the
sales
tax
is
imposed
upon
an
amount
equal
to
33
one-half
of
the
sales
price
of
such
a
contract.
34
The
amendment
to
Code
section
432.2(6)
specifies
that
35
-19-
LSB
2786YC
(14)
88
jm/jh
19/
24
H.F.
_____
the
sales
price
from
the
furnishing
of
carpentry
repair
and
1
installation
services
are
subject
to
the
sales
tax.
Currently,
2
carpentry
services
are
subject
to
sales
tax.
3
The
bill
enacts
new
Code
section
423.3(16A),
exempting
from
4
the
state
sales
and
use
tax
the
purchase
price
of
a
grain
bin,
5
including
material
or
replacement
parts
used
to
construct
or
6
repair
a
grain
bin.
“Grain
bin”
is
defined
to
mean
property
7
that
is
vented
and
covered
with
corrugated
metal
or
similar
8
material,
and
that
is
primarily
used
to
hold
loose
grain
for
9
drying
or
storage.
10
The
amendment
to
Code
section
423.3(47)
changes
the
11
exclusions
from
the
sales
tax
exemptions
in
that
subsection
by
12
aligning
the
exclusions
with
the
changes
made
to
the
exemptions
13
enacted
in
2016
Iowa
Acts,
chapter
1007.
This
provision
takes
14
effect
upon
enactment
and
applies
retroactively
to
tax
years
15
beginning
January
1,
2016,
for
tax
years
beginning
on
or
after
16
that
date.
17
The
amendment
to
Code
section
423.3(104)
exempts
from
the
18
sales
tax
the
sales
of
optional
service
or
warranty
contracts
19
for
computer
software
maintenance
or
support
services
furnished
20
to
a
commercial
enterprise
used
exclusively
by
the
commercial
21
enterprise.
“Commercial
enterprise”
is
defined
in
423.3(104).
22
Currently,
a
retailer
making
Iowa
sales,
as
defined
in
Code
23
section
423.14A(1)(a),
shall
collect
and
remit
sales,
use,
and
24
local
option
taxes,
if
the
retailer
has
gross
revenue
from
25
Iowa
sales
equal
to
or
exceeding
$100,000
for
an
immediately
26
preceding
calendar
year
or
a
current
calendar
year,
or
has
200
27
or
more
separate
transactions
for
an
immediately
preceding
28
calendar
year
or
a
current
calendar
year.
The
bill
amends
29
Code
section
423.14A(3)(b)
by
striking
the
requirement
that
30
retailers
making
Iowa
sales
collect
such
taxes
if
the
retailer
31
has
200
or
more
separate
transactions
for
an
immediately
32
preceding
calendar
year
or
a
current
calendar
year.
33
The
bill
amends
Code
section
423.14A(3)(d)
by
striking
34
the
requirement
that
a
marketplace
facilitator,
as
defined
35
-20-
LSB
2786YC
(14)
88
jm/jh
20/
24
H.F.
_____
in
Code
section
423.14A(1)(b),
making
Iowa
sales,
as
defined
1
in
Code
section
423.14A(1)(a),
collect
sales,
use,
and
local
2
option
taxes
if
the
marketplace
facilitator
has
200
or
more
3
separate
transactions
for
an
immediately
preceding
calendar
4
year
or
a
current
calendar
year.
The
bill
does
not
strike
the
5
requirement
that
a
marketplace
facilitator
collect
such
taxes
6
if
the
marketplace
facilitator
makes
or
facilitates
Iowa
sales
7
on
its
own
behalf
or
for
one
or
more
marketplace
sellers
equal
8
to
or
exceeding
$100,000.
9
The
bill
amends
Code
section
423.14A(3)(e)
by
striking
10
the
requirement
that
a
referrer,
as
defined
in
Code
section
11
423.14A(3)(e)(3),
making
Iowa
sales,
as
defined
in
Code
section
12
423.14A(1)(a),
collect
sales,
use,
and
local
option
taxes
if
13
the
referrer
has
200
or
more
separate
transactions
for
an
14
immediately
preceding
calendar
year
or
a
current
calendar
15
year.
The
bill
does
not
strike
the
requirement
that
a
referrer
16
collect
such
taxes
if
the
referrer
has
Iowa
sales
equal
to
or
17
exceeding
$100,000.
18
Currently,
a
referrer
is
required
to
provide
the
department
19
of
revenue,
on
a
monthly
basis,
a
list
of
marketplace
sellers
20
who
collect
and
remit
Iowa
sales
and
use
tax
on
the
platform
21
of
the
referrer.
Otherwise,
the
referrer
is
required
to
22
collect
and
remit
Iowa
sales
and
use
tax.
The
amendment
to
23
Code
section
423A.14A(3)(e)(1)(c)
provides
that
a
referrer
may
24
provide
the
department
of
revenue
such
a
report
on
an
annual
25
basis,
and
avoid
collecting
the
sales
and
use
tax
if
other
26
conditions
in
Code
section
423.14(3)(e)(1)
are
met.
27
The
bill
enacts
new
Code
section
423.14A(3)(e)(5)
specifying
28
that
the
paragraph
relating
to
“referrers”
is
subject
to
29
implementation
by
the
department
of
revenue
by
rule,
and
shall
30
not
require
a
referrer
to
collect
tax
or
comply
with
the
notice
31
and
reporting
requirements
unless
such
administrative
rules
32
take
effect.
33
The
bill
amends
Code
section
423.48(2)(c)
by
striking
the
34
paragraph
specifying
that
registering
under
the
streamlined
35
-21-
LSB
2786YC
(14)
88
jm/jh
21/
24
H.F.
_____
sales
and
use
tax
agreement
in
another
member
state
shall
be
1
considered
to
be
registered
in
this
state
for
purposes
of
the
2
streamlined
sales
and
use
tax
agreement.
3
The
bill
establishes
a
taxation
and
exemption
computers
4
task
force
to
be
initiated,
coordinated,
and
staffed
by
5
the
department
of
revenue.
The
task
force
shall
review
the
6
definition
of
“computer”
as
used
throughout
the
portions
of
7
the
Iowa
Code
and
the
Iowa
Administrative
Code
administered
8
by
the
department
of
revenue
including
the
exemption
for
9
computers
provided
in
Code
section
423.3(47)(a)(4).
If
the
10
task
force
recommends
modifications
to
the
current
definition
11
of
“computer”
including
the
exemption
for
computers
provided
in
12
Code
section
423.3(47)(a)(4),
the
department
of
revenue
shall
13
provide
any
recommendations
to
the
general
assembly
by
January
14
1,
2020.
15
DIVISION
IV
——
AUTOMOBILE
RENTAL
EXCISE
TAX.
The
amendment
16
to
Code
section
423.14A
provides
that
a
person
who
is
not
17
required
to
collect
and
remit
automobile
rental
excise
tax
18
shall
not
be
considered
a
“marketplace
facilitator”
with
19
respect
to
the
sale
of
certain
transportation
services.
20
The
amendment
to
Code
section
423C.2
substitutes
a
person
21
required
to
collect
sales
or
use
tax
under
Code
chapter
423
22
for
“rental
facilitator”
and
“rental
platform”
and
strikes
the
23
definitions
of
“rental
facilitator”
and
“rental
platform”
from
24
Code
section
423C.2.
25
The
amendment
to
Code
section
423C.2(11)
modifies
the
26
definition
of
“rental
price”
to
mean
the
same
as
“sales
price”
27
defined
in
Code
section
423.1,
which
includes
facilitation
28
fees,
reservation
fees,
service
fees,
nonrefundable
deposits,
29
and
any
other
direct
or
indirect
charge
made
or
consideration
30
provided
in
connection
with
the
renting
or
facilitation
of
31
renting
automobiles.
32
The
amendment
to
Code
section
423C.3
strikes
the
definitions
33
of
“discount
rental
charge”
and
“travel
package”.
34
The
amendment
to
Code
section
423C.3
specifies
that
the
35
-22-
LSB
2786YC
(14)
88
jm/jh
22/
24
H.F.
_____
automobile
rental
excise
tax
shall
be
imposed
upon
the
rental
1
price
of
an
automobile
if
the
rental
is
subject
to
the
state
2
sales
or
use
tax.
3
The
bill
strikes
numerous
provisions
in
Code
section
423C.3
4
relating
to
the
collection
of
the
automobile
rental
excise
tax
5
by
a
“rental
facilitator”
and
“rental
platform”
due
to
these
6
definitions
being
stricken
by
another
part
of
this
division
of
7
the
bill.
8
The
amendment
to
Code
section
423C.3
requires
that
any
9
person
required
to
collect
state
sales
and
use
tax
on
the
10
rental
transaction
under
Code
chapter
423
shall
collect
the
11
automobile
rental
excise
tax
as
applicable.
The
amendment
to
12
Code
section
423C.3
provides
that
a
person
is
not
required
13
to
collect
and
remit
the
automobile
rental
excise
tax
if
the
14
person
meets
certain
circumstances.
For
any
rental
transaction
15
for
which
the
person
is
not
required
to
collect
and
remit
the
16
automobile
rental
excise
tax,
the
amendment
to
Code
section
17
423C.3
requires
an
automobile
provider
to
be
solely
liable
18
for
any
amount
of
uncollected
or
unremitted
automobile
rental
19
excise
tax
and
sales
and
use
tax
under
Code
chapter
423.
20
DIVISION
V
——
TELEPHONE
COMPANY
PROPERTY.
Division
V
of
21
the
bill
authorizes
the
Iowa
utilities
board
to
classify
a
22
long
distance
telephone
company
as
a
competitive
long
distance
23
telephone
company
if
certain
revenue
source
criteria
are
24
met.
In
the
event
of
such
a
classification,
the
board
is
25
required
to
promptly
notify
the
director
of
revenue.
Upon
26
such
notification
by
the
board,
the
director
of
revenue
is
27
required
to
assess
the
property
of
such
competitive
long
28
distance
telephone
company,
which
property
is
first
assessed
29
for
taxation
in
this
state
on
or
after
January
1,
1996,
in
30
the
same
manner
as
all
other
property
assessed
as
commercial
31
property
by
the
local
assessor.
The
provisions
established
in
32
the
bill
are
the
same
as
provisions
repealed
on
July
1,
2018,
33
by
2018
Iowa
Acts,
chapter
1160.
34
The
section
of
Division
V
of
the
bill
enacting
Code
section
35
-23-
LSB
2786YC
(14)
88
jm/jh
23/
24
H.F.
_____
476.1D,
subsection
10,
takes
effect
upon
enactment
and
applies
1
retroactively
to
July
1,
2018,
for
assessment
years
beginning
2
on
or
after
that
date.
3
Division
V
also
strikes
Code
section
476.1D,
subsection
10,
4
as
enacted
in
the
bill,
effective
July
1,
2021.
The
future
5
strike
of
Code
section
476.1D,
subsection
10,
applies
to
6
assessment
years
beginning
on
or
after
January
1,
2022.
7
DIVISION
VI
——
TARGETED
JOBS
WITHHOLDING
CREDIT.
The
8
amendment
to
Code
section
403.19A
extends
by
one
year
the
9
deadline
for
entering
into
withholding
agreements
under
the
10
targeted
jobs
withholding
credit
pilot
project
from
June
30,
11
2019,
to
June
30,
2020.
12
DIVISION
VII
——
SCHOOL
TUITION
ORGANIZATION
TAX
CREDITS.
13
The
amendment
to
Code
section
422.11S
increases
the
total
14
amount
of
school
tuition
organization
tax
credits
that
may
be
15
issued
per
tax
year
to
$14
million
from
$13
million
for
tax
16
years
beginning
on
or
after
January
1,
2020.
17
The
bill
also
directs
the
Code
editor
to
harmonize
the
18
amendments
to
Code
section
422.11S
in
division
I
with
the
19
amendment
to
Code
section
422.11S
in
division
VII,
if
enacted.
20
-24-
LSB
2786YC
(14)
88
jm/jh
24/
24