Senate
File
2383
-
Reprinted
SENATE
FILE
2383
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
SSB
3197)
(As
Amended
and
Passed
by
the
Senate
February
28,
2018
)
A
BILL
FOR
An
Act
relating
to
state
and
local
revenue
and
finance
by
1
modifying
the
individual
and
corporate
income
taxes,
the
2
franchise
tax,
tax
credits,
the
moneys
and
credits
tax,
3
the
sales
and
use
taxes
and
local
option
sales
tax,
the
4
hotel
and
motel
excise
tax,
the
automobile
rental
excise
5
tax,
the
Iowa
educational
savings
plan
trust,
and
the
6
disabilities
expenses
savings
plan
trust,
providing
for
7
other
properly
related
matters,
making
penalties
applicable,
8
and
including
immediate
effective
date
and
retroactive
and
9
other
applicability
provisions.
10
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
11
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DIVISION
I
1
INCOME
TAX
CHANGES
FOR
TAX
YEAR
2018
2
Section
1.
EARNED
INCOME
TAX
CREDIT
FOR
2018.
3
Notwithstanding
the
definition
of
“Internal
Revenue
Code”
4
in
section
422.3,
for
tax
years
beginning
during
the
2018
5
calendar
year,
any
reference
to
the
term
“Internal
Revenue
6
Code”
in
section
422.12B
shall
mean
the
Internal
Revenue
Code
7
of
1954,
prior
to
the
date
of
its
redesignation
as
the
Internal
8
Revenue
Code
of
1986
by
the
Tax
Reform
Act
of
1986,
or
means
9
the
Internal
Revenue
Code
of
1986
as
amended
and
in
effect
on
10
January
1,
2016,
but
shall
not
be
construed
to
include
any
11
amendment
to
the
Internal
Revenue
Code
enacted
after
January
1,
12
2016,
including
any
amendment
with
retroactive
applicability
13
or
effectiveness.
14
Sec.
2.
ACCOUNTING
METHOD
AND
OTHER
MISCELLANEOUS
15
COUPLING
PROVISIONS
FOR
TAX
YEAR
2018.
Notwithstanding
any
16
other
provision
of
law
to
the
contrary,
amendments
to
the
17
Internal
Revenue
Code
enacted
in
Pub.
L.
No.
115-97,
§13102,
18
§13221,
§13504,
§13541,
§13543,
§13611,
and
§13613,
apply
in
19
calculating
federal
adjusted
gross
income
or
federal
taxable
20
income,
as
applicable,
for
state
tax
purposes
for
purposes
of
21
chapter
422
for
tax
years
beginning
during
the
2018
calendar
22
year
to
the
extent
those
amendments
affect
the
calculation
of
23
federal
adjusted
gross
income
or
federal
taxable
income,
as
24
applicable,
for
federal
tax
purposes
for
tax
years
beginning
25
during
the
2018
calendar
year.
26
Sec.
3.
TEACHER
EXPENSE
DEDUCTION.
Notwithstanding
any
27
other
provision
of
law
to
the
contrary,
for
tax
years
beginning
28
during
the
2018
calendar
year,
a
taxpayer
is
allowed
to
take
29
the
deduction
for
certain
expenses
of
elementary
and
secondary
30
school
teachers
allowed
under
section
62(a)(2)(D)
of
the
31
Internal
Revenue
Code,
as
amended
by
Pub.
L.
No.
114-113,
32
division
Q,
§104,
in
computing
net
income
for
state
tax
33
purposes.
34
Sec.
4.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
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deemed
of
immediate
importance,
takes
effect
upon
enactment.
1
Sec.
5.
RETROACTIVE
APPLICABILITY.
This
division
of
this
2
Act
applies
retroactively
to
January
1,
2018,
for
tax
years
3
beginning
on
or
after
that
date,
but
before
January
1,
2019.
4
DIVISION
II
5
INCOME
TAX
AND
FRANCHISE
TAX
CHANGES
BEGINNING
IN
2019
6
Sec.
6.
Section
217.39,
Code
2018,
is
amended
to
read
as
7
follows:
8
217.39
Persecuted
victims
of
World
War
II
——
reparations
——
9
heirs.
10
Notwithstanding
any
other
law
of
this
state,
payments
paid
11
to
and
income
from
lost
property
of
a
victim
of
persecution
12
for
racial,
ethnic,
or
religious
reasons
by
Nazi
Germany
or
13
any
other
Axis
regime
or
as
an
heir
of
such
victim
which
is
14
exempt
from
state
income
tax
as
provided
described
in
section
15
422.7,
subsection
35
,
Code
2018,
shall
not
be
considered
as
16
income
or
an
asset
for
determining
the
eligibility
for
state
or
17
local
government
benefit
or
entitlement
programs.
The
proceeds
18
are
not
subject
to
recoupment
for
the
receipt
of
governmental
19
benefits
or
entitlements,
and
liens,
except
liens
for
child
20
support,
are
not
enforceable
against
these
sums
for
any
reason.
21
Sec.
7.
Section
422.3,
subsection
5,
Code
2018,
is
amended
22
to
read
as
follows:
23
5.
“Internal
Revenue
Code”
means
the
Internal
Revenue
Code
24
of
1954,
prior
to
the
date
of
its
redesignation
as
the
Internal
25
Revenue
Code
of
1986
by
the
Tax
Reform
Act
of
1986,
or
means
26
the
Internal
Revenue
Code
of
1986
,
as
amended
and
in
effect
27
on
January
1,
2015
.
This
definition
shall
not
be
construed
28
to
include
any
amendment
to
the
Internal
Revenue
Code
enacted
29
after
the
date
specified
in
the
preceding
sentence,
including
30
any
amendment
with
retroactive
applicability
or
effectiveness.
31
Sec.
8.
Section
422.4,
subsection
1,
paragraphs
b
and
c,
32
Code
2018,
are
amended
to
read
as
follows:
33
b.
“Cumulative
inflation
factor”
means
the
product
of
the
34
annual
inflation
factor
for
the
1988
2022
calendar
year
and
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all
annual
inflation
factors
for
subsequent
calendar
years
1
as
determined
pursuant
to
this
subsection
.
The
cumulative
2
inflation
factor
applies
to
all
tax
years
beginning
on
or
after
3
January
1
of
the
calendar
year
for
which
the
latest
annual
4
inflation
factor
has
been
determined.
5
c.
The
annual
inflation
factor
for
the
1988
2022
calendar
6
year
is
one
hundred
percent.
7
Sec.
9.
Section
422.4,
subsection
2,
Code
2018,
is
amended
8
by
striking
the
subsection.
9
Sec.
10.
Section
422.4,
subsection
16,
Code
2018,
is
amended
10
to
read
as
follows:
11
16.
The
words
“taxable
income”
mean
the
net
income
as
12
defined
in
section
422.7
minus
the
deductions
deduction
allowed
13
by
section
422.9
,
if
available,
in
the
case
of
individuals;
14
in
the
case
of
estates
or
trusts,
the
words
“taxable
income”
15
mean
the
taxable
income
(without
a
deduction
for
personal
16
exemption)
as
computed
for
federal
income
tax
purposes
under
17
the
Internal
Revenue
Code,
but
with
the
adjustments
specified
18
in
section
422.7
plus
the
Iowa
income
tax
deducted
in
computing
19
the
federal
taxable
income
and
minus
federal
income
taxes
as
20
provided
in
section
422.9
.
21
Sec.
11.
Section
422.5,
subsection
1,
paragraphs
a,
b,
c,
d,
22
and
e,
Code
2018,
are
amended
by
striking
the
paragraphs
and
23
inserting
in
lieu
thereof
the
following:
24
a.
On
all
taxable
income
from
zero
through
twelve
thousand
25
dollars
in
the
case
of
a
married
couple
filing
jointly,
or
from
26
zero
to
six
thousand
dollars
in
the
case
of
all
other
persons,
27
five
percent.
28
b.
On
all
taxable
income
exceeding
twelve
thousand
dollars
29
but
not
exceeding
thirty
thousand
dollars
in
the
case
of
a
30
married
couple
filing
jointly,
or
exceeding
six
thousand
31
dollars
but
not
exceeding
fifteen
thousand
dollars
in
the
case
32
of
all
other
persons,
five
and
one-quarter
percent.
33
c.
On
all
taxable
income
exceeding
thirty
thousand
dollars
34
but
not
exceeding
sixty
thousand
dollars
in
the
case
of
a
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married
couple
filing
jointly,
or
exceeding
fifteen
thousand
1
dollars
but
not
exceeding
thirty
thousand
dollars
in
the
case
2
of
all
other
persons,
five
and
one-half
percent.
3
d.
On
all
taxable
income
exceeding
sixty
thousand
dollars
4
but
not
exceeding
one
hundred
fifty
thousand
dollars
in
the
5
case
of
a
married
couple
filing
jointly,
or
exceeding
thirty
6
thousand
dollars
but
not
exceeding
seventy-five
thousand
7
dollars
in
the
case
of
all
other
persons,
six
percent.
8
e.
On
all
taxable
income
exceeding
one
hundred
fifty
9
thousand
dollars
in
the
case
of
a
married
couple
filing
10
jointly,
or
exceeding
seventy-five
thousand
dollars
in
the
case
11
of
all
other
persons,
the
following:
12
(1)
Six
and
six-tenths
percent
for
tax
years
beginning
13
during
the
2019
calendar
year.
14
(2)
Six
and
one-half
percent
for
tax
years
beginning
during
15
the
2020
calendar
year.
16
(3)
Six
and
four-tenths
percent
for
tax
years
beginning
17
during
the
2021
calendar
year.
18
(4)
Six
and
three-tenths
percent
for
tax
years
beginning
on
19
or
after
January
1,
2022.
20
Sec.
12.
Section
422.5,
subsection
1,
paragraphs
f,
g,
h,
21
and
i,
Code
2018,
are
amended
by
striking
the
paragraphs.
22
Sec.
13.
Section
422.5,
subsection
1,
paragraph
j,
Code
23
2018,
is
amended
to
read
as
follows:
24
j.
(1)
The
tax
imposed
upon
the
taxable
income
of
a
25
nonresident
shall
be
computed
by
reducing
the
amount
determined
26
pursuant
to
paragraphs
“a”
through
“i”
“e”
by
the
amounts
of
27
nonrefundable
credits
under
this
division
and
by
multiplying
28
this
resulting
amount
by
a
fraction
of
which
the
nonresident’s
29
net
income
allocated
to
Iowa,
as
determined
in
section
30
422.8,
subsection
2
,
paragraph
“a”
,
is
the
numerator
and
the
31
nonresident’s
total
net
income
computed
under
section
422.7
is
32
the
denominator.
This
provision
also
applies
to
individuals
33
who
are
residents
of
Iowa
for
less
than
the
entire
tax
year.
34
(2)
(a)
The
tax
imposed
upon
the
taxable
income
of
a
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resident
shareholder
in
an
S
corporation
or
of
an
estate
1
or
trust
with
a
situs
in
Iowa
that
is
a
shareholder
in
an
S
2
corporation,
which
S
corporation
has
in
effect
for
the
tax
3
year
an
election
under
subchapter
S
of
the
Internal
Revenue
4
Code
and
carries
on
business
within
and
without
the
state,
5
may
be
computed
by
reducing
the
amount
determined
pursuant
to
6
paragraphs
“a”
through
“i”
“e”
by
the
amounts
of
nonrefundable
7
credits
under
this
division
and
by
multiplying
this
resulting
8
amount
by
a
fraction
of
which
the
resident’s
or
estate’s
9
or
trust’s
net
income
allocated
to
Iowa,
as
determined
in
10
section
422.8,
subsection
2
,
paragraph
“b”
,
is
the
numerator
11
and
the
resident’s
or
estate’s
or
trust’s
total
net
income
12
computed
under
section
422.7
is
the
denominator.
If
a
resident
13
shareholder,
or
an
estate
or
trust
with
a
situs
in
Iowa
14
that
is
a
shareholder,
has
elected
to
take
advantage
of
this
15
subparagraph
(2),
and
for
the
next
tax
year
elects
not
to
take
16
advantage
of
this
subparagraph,
the
resident
or
estate
or
17
trust
shareholder
shall
not
reelect
to
take
advantage
of
this
18
subparagraph
for
the
three
tax
years
immediately
following
the
19
first
tax
year
for
which
the
shareholder
elected
not
to
take
20
advantage
of
this
subparagraph,
unless
the
director
consents
to
21
the
reelection.
This
subparagraph
also
applies
to
individuals
22
who
are
residents
of
Iowa
for
less
than
the
entire
tax
year.
23
(b)
This
subparagraph
(2)
shall
not
affect
the
amount
of
24
the
taxpayer’s
checkoffs
under
this
division
,
the
credits
from
25
tax
provided
under
this
division
,
and
the
allocation
of
these
26
credits
between
spouses
if
the
taxpayers
filed
separate
returns
27
or
separately
on
combined
returns
.
28
Sec.
14.
Section
422.5,
subsection
2,
Code
2018,
is
amended
29
by
striking
the
subsection.
30
Sec.
15.
Section
422.5,
subsections
3
and
3B,
Code
2018,
are
31
amended
to
read
as
follows:
32
3.
a.
The
tax
shall
not
be
imposed
on
a
resident
or
33
nonresident
whose
net
income,
as
defined
in
section
422.7
,
is
34
thirteen
thousand
five
hundred
dollars
or
less
in
the
case
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of
married
persons
filing
jointly
or
filing
separately
on
a
1
combined
return
,
heads
of
household,
and
surviving
spouses
or
2
nine
thousand
dollars
or
less
in
the
case
of
all
other
persons;
3
but
in
the
event
that
the
payment
of
tax
under
this
division
4
would
reduce
the
net
income
to
less
than
thirteen
thousand
five
5
hundred
dollars
or
nine
thousand
dollars
as
applicable,
then
6
the
tax
shall
be
reduced
to
that
amount
which
would
result
7
in
allowing
the
taxpayer
to
retain
a
net
income
of
thirteen
8
thousand
five
hundred
dollars
or
nine
thousand
dollars
as
9
applicable.
The
preceding
sentence
does
not
apply
to
estates
10
or
trusts.
For
the
purpose
of
this
subsection
,
the
entire
net
11
income,
including
any
part
of
the
net
income
not
allocated
12
to
Iowa,
shall
be
taken
into
account.
For
purposes
of
this
13
subsection
,
net
income
includes
all
amounts
of
pensions
or
14
other
retirement
income,
except
for
military
retirement
pay
15
excluded
under
section
422.7,
subsection
31A
,
paragraph
“a”
,
16
or
section
422.7,
subsection
31B
,
paragraph
“a”
,
received
from
17
any
source
which
is
not
taxable
under
this
division
as
a
result
18
of
the
government
pension
exclusions
in
section
422.7
,
or
any
19
other
state
law.
If
the
combined
net
income
of
a
husband
and
20
wife
exceeds
thirteen
thousand
five
hundred
dollars,
neither
21
of
them
shall
receive
the
benefit
of
this
subsection
,
and
it
22
is
immaterial
whether
they
file
a
joint
return
or
separate
23
returns.
However,
if
a
husband
and
wife
file
separate
returns
24
and
have
a
combined
net
income
of
thirteen
thousand
five
25
hundred
dollars
or
less,
neither
spouse
shall
receive
the
26
benefit
of
this
paragraph,
if
one
spouse
has
a
net
operating
27
loss
and
elects
to
carry
back
or
carry
forward
the
loss
as
28
provided
under
the
Internal
Revenue
Code
or
in
section
422.9
,
29
subsection
3
.
A
person
who
is
claimed
as
a
dependent
by
30
another
person
as
defined
in
section
422.12
shall
not
receive
31
the
benefit
of
this
subsection
if
the
person
claiming
the
32
dependent
has
net
income
exceeding
thirteen
thousand
five
33
hundred
dollars
or
nine
thousand
dollars
as
applicable
or
the
34
person
claiming
the
dependent
and
the
person’s
spouse
have
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2383
combined
net
income
exceeding
thirteen
thousand
five
hundred
1
dollars
or
nine
thousand
dollars
as
applicable.
2
b.
In
lieu
of
the
computation
in
subsection
1
or
2
,
or
in
3
paragraph
“a”
of
this
subsection
,
if
the
married
persons’
,
4
filing
jointly
or
filing
separately
on
a
combined
return
,
5
head
of
household’s,
or
surviving
spouse’s
net
income
exceeds
6
thirteen
thousand
five
hundred
dollars,
the
regular
tax
imposed
7
under
this
division
shall
be
the
lesser
of
the
maximum
state
8
individual
income
tax
rate
for
the
tax
year
times
the
portion
9
of
the
net
income
in
excess
of
thirteen
thousand
five
hundred
10
dollars
or
the
regular
tax
liability
computed
without
regard
11
to
this
sentence.
Taxpayers
electing
to
file
separately
shall
12
compute
the
alternate
tax
described
in
this
paragraph
using
the
13
total
net
income
of
the
husband
and
wife.
The
alternate
tax
14
described
in
this
paragraph
does
not
apply
if
one
spouse
elects
15
to
carry
back
or
carry
forward
the
loss
as
provided
under
the
16
Internal
Revenue
Code
or
in
section
422.9
,
subsection
3
.
17
3B.
a.
The
tax
shall
not
be
imposed
on
a
resident
or
18
nonresident
who
is
at
least
sixty-five
years
old
on
December
19
31
of
the
tax
year
and
whose
net
income,
as
defined
in
section
20
422.7
,
is
thirty-two
thousand
dollars
or
less
in
the
case
21
of
married
persons
filing
jointly
or
filing
separately
on
a
22
combined
return
,
heads
of
household,
and
surviving
spouses
or
23
twenty-four
thousand
dollars
or
less
in
the
case
of
all
other
24
persons;
but
in
the
event
that
the
payment
of
tax
under
this
25
division
would
reduce
the
net
income
to
less
than
thirty-two
26
thousand
dollars
or
twenty-four
thousand
dollars
as
applicable,
27
then
the
tax
shall
be
reduced
to
that
amount
which
would
result
28
in
allowing
the
taxpayer
to
retain
a
net
income
of
thirty-two
29
thousand
dollars
or
twenty-four
thousand
dollars
as
applicable.
30
The
preceding
sentence
does
not
apply
to
estates
or
trusts.
31
For
the
purpose
of
this
subsection
,
the
entire
net
income,
32
including
any
part
of
the
net
income
not
allocated
to
Iowa,
33
shall
be
taken
into
account.
For
purposes
of
this
subsection
,
34
net
income
includes
all
amounts
of
pensions
or
other
retirement
35
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income,
except
for
military
retirement
pay
excluded
under
1
section
422.7,
subsection
31A
,
paragraph
“a”
,
or
section
422.7,
2
subsection
31B
,
paragraph
“a”
,
received
from
any
source
which
is
3
not
taxable
under
this
division
as
a
result
of
the
government
4
pension
exclusions
in
section
422.7
,
or
any
other
state
law.
5
If
the
combined
net
income
of
a
husband
and
wife
exceeds
6
thirty-two
thousand
dollars,
neither
of
them
shall
receive
the
7
benefit
of
this
subsection
,
and
it
is
immaterial
whether
they
8
file
a
joint
return
or
separate
returns.
However,
if
a
husband
9
and
wife
file
separate
returns
and
have
a
combined
net
income
10
of
thirty-two
thousand
dollars
or
less,
neither
spouse
shall
11
receive
the
benefit
of
this
paragraph,
if
one
spouse
has
a
net
12
operating
loss
and
elects
to
carry
back
or
carry
forward
the
13
loss
as
provided
under
the
Internal
Revenue
Code
or
in
section
14
422.9
,
subsection
3
.
A
person
who
is
claimed
as
a
dependent
by
15
another
person
as
defined
in
section
422.12
shall
not
receive
16
the
benefit
of
this
subsection
if
the
person
claiming
the
17
dependent
has
net
income
exceeding
thirty-two
thousand
dollars
18
or
twenty-four
thousand
dollars
as
applicable
or
the
person
19
claiming
the
dependent
and
the
person’s
spouse
have
combined
20
net
income
exceeding
thirty-two
thousand
dollars
or
twenty-four
21
thousand
dollars
as
applicable.
22
b.
In
lieu
of
the
computation
in
subsection
1
,
2,
or
3
,
if
23
the
married
persons’
,
filing
jointly
or
filing
separately
on
24
a
combined
return
,
head
of
household’s,
or
surviving
spouse’s
25
net
income
exceeds
thirty-two
thousand
dollars,
the
regular
tax
26
imposed
under
this
division
shall
be
the
lesser
of
the
maximum
27
state
individual
income
tax
rate
for
the
tax
year
times
the
28
portion
of
the
net
income
in
excess
of
thirty-two
thousand
29
dollars
or
the
regular
tax
liability
computed
without
regard
30
to
this
sentence.
Taxpayers
electing
to
file
separately
shall
31
compute
the
alternate
tax
described
in
this
paragraph
using
the
32
total
net
income
of
the
husband
and
wife.
The
alternate
tax
33
described
in
this
paragraph
does
not
apply
if
one
spouse
elects
34
to
carry
back
or
carry
forward
the
loss
as
provided
under
the
35
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2383
Internal
Revenue
Code
or
in
section
422.9
,
subsection
3
.
1
c.
This
subsection
applies
even
though
one
spouse
has
not
2
attained
the
age
of
sixty-five,
if
the
other
spouse
is
at
least
3
sixty-five
at
the
end
of
the
tax
year.
4
Sec.
16.
Section
422.5,
subsection
6,
Code
2018,
is
amended
5
by
striking
the
subsection
and
inserting
in
lieu
thereof
the
6
following:
7
6.
Upon
determination
of
the
latest
cumulative
inflation
8
factor,
the
director
shall
reduce
each
tax
rate
in
subsection
9
1,
paragraphs
“a”
through
“d”
,
and
paragraph
“e”
,
subparagraph
10
(4),
by
the
same
percentage
that
the
latest
cumulative
11
inflation
factor
exceeds
one
hundred
percent,
shall
round
off
12
the
resulting
rate
to
the
nearest
one-hundredth
of
one
percent,
13
and
shall
incorporate
the
result
into
the
income
tax
forms
and
14
instructions
for
each
tax
year.
15
Sec.
17.
Section
422.7,
unnumbered
paragraph
1,
Code
2018,
16
is
amended
to
read
as
follows:
17
The
term
“net
income”
means
the
adjusted
gross
income
before
18
the
net
operating
loss
deduction
taxable
income
as
properly
19
computed
for
federal
income
tax
purposes
under
section
63
the
20
Internal
Revenue
Code,
with
the
following
adjustments:
21
Sec.
18.
Section
422.7,
Code
2018,
is
amended
by
adding
the
22
following
new
subsections:
23
NEW
SUBSECTION
.
4.
Add
any
federal
net
operating
loss
24
deduction
carried
over
from
a
taxable
year
beginning
prior
to
25
January
1,
2019.
26
NEW
SUBSECTION
.
6.
a.
For
tax
years
beginning
in
the
2019
27
calendar
year,
subtract
the
amount
of
federal
income
taxes
28
paid
during
the
tax
year
to
the
extent
payment
is
for
a
tax
29
year
beginning
prior
to
January
1,
2019,
and
add
any
federal
30
income
tax
refunds
received
during
the
tax
year
to
the
extent
31
the
federal
income
tax
was
deducted
for
a
tax
year
beginning
32
prior
to
January
1,
2019.
Where
married
persons
who
have
filed
33
a
joint
federal
income
tax
return
file
separately
for
state
tax
34
purposes,
such
total
shall
be
divided
between
them
according
35
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2383
to
the
portion
of
the
total
paid
by
each.
Federal
income
taxes
1
paid
for
a
tax
year
in
which
an
Iowa
return
was
not
required
to
2
be
filed
shall
not
be
subtracted.
3
b.
Notwithstanding
any
other
provision
of
law
to
the
4
contrary,
amounts
subtracted
or
added
pursuant
to
this
5
subsection
shall
not
be
included
in
the
calculation
of
net
6
income
for
purposes
of
section
422.5,
subsection
3
or
3B,
or
7
section
422.13.
8
NEW
SUBSECTION
.
6A.
Subtract,
to
the
extent
included,
9
income
from
interest
and
earnings
received
from
a
burial
trust
10
fund
as
defined
in
section
523A.102.
11
Sec.
19.
Section
422.7,
subsection
12,
paragraph
a,
12
unnumbered
paragraph
1,
Code
2018,
is
amended
to
read
as
13
follows:
14
If
For
tax
years
beginning
prior
to
January
1,
2022,
if
the
15
adjusted
gross
federal
taxable
income
includes
income
or
loss
16
from
a
small
business
operated
by
the
taxpayer,
an
additional
17
deduction
shall
be
allowed
in
computing
the
income
or
loss
from
18
the
small
business
if
the
small
business
hired
for
employment
19
in
the
state
during
its
annual
accounting
period
ending
with
or
20
during
the
taxpayer’s
tax
year
any
of
the
following:
21
Sec.
20.
Section
422.7,
subsection
12A,
paragraph
a,
22
unnumbered
paragraph
1,
Code
2018,
is
amended
to
read
as
23
follows:
24
If
For
tax
years
beginning
prior
to
January
1,
2022,
if
the
25
adjusted
gross
federal
taxable
income
includes
income
or
loss
26
from
a
business
operated
by
the
taxpayer,
and
if
the
business
27
does
not
qualify
for
the
adjustment
under
subsection
12
,
an
28
additional
deduction
shall
be
allowed
in
computing
the
income
29
or
loss
from
the
business
if
the
business
hired
for
employment
30
in
the
state
during
its
annual
accounting
period
ending
with
or
31
during
the
taxpayer’s
tax
year
either
of
the
following:
32
Sec.
21.
Section
422.7,
subsection
13,
Code
2018,
is
amended
33
by
striking
the
subsection
and
inserting
in
lieu
thereof
the
34
following:
35
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13.
Subtract,
to
the
extent
included,
the
amount
of
social
1
security
benefits
taxable
under
section
86
of
the
Internal
2
Revenue
Code.
3
Sec.
22.
Section
422.7,
Code
2018,
is
amended
by
adding
the
4
following
new
subsections:
5
NEW
SUBSECTION
.
18.
Add,
to
the
extent
deducted
for
federal
6
tax
purposes,
charitable
contributions
under
section
170
of
7
the
Internal
Revenue
Code
to
the
extent
such
contribution
was
8
made
to
an
organization
for
the
purpose
of
deposit
in
the
Iowa
9
education
savings
plan
trust
established
in
chapter
12D,
and
10
the
taxpayer
designated
that
any
part
of
the
contribution
be
11
used
for
the
direct
benefit
of
any
dependent
of
the
taxpayer
or
12
any
other
single
beneficiary
designated
by
the
taxpayer.
13
NEW
SUBSECTION
.
19.
a.
Subtract,
to
the
extent
included,
14
income
resulting
from
the
payment
by
an
employer
of
the
15
taxpayer,
whether
paid
to
the
taxpayer
or
to
a
lender,
of
16
principal
or
interest
on
any
qualified
education
loan
incurred
17
by
the
taxpayer.
18
b.
If
the
taxpayer
has
a
deduction
in
computing
federal
19
taxable
income
under
section
221
of
the
Internal
Revenue
Code
20
for
interest
on
a
qualified
education
loan,
the
taxpayer
shall
21
recompute
for
purposes
of
this
subsection
the
amount
of
the
22
deduction
under
paragraph
“a”
by
not
subtracting
any
amount
of
23
income
resulting
from
the
employer’s
payment
of
interest
on
a
24
qualified
education
loan
that
was
also
deducted
by
the
taxpayer
25
under
section
221
of
the
Internal
Revenue
Code.
26
c.
For
purposes
of
this
subsection,
“qualified
education
27
loan”
means
the
same
as
defined
in
section
221
of
the
Internal
28
Revenue
Code.
29
Sec.
23.
Section
422.7,
subsection
31,
Code
2018,
is
amended
30
to
read
as
follows:
31
31.
a.
For
a
person
who
is
disabled,
or
is
fifty-five
32
years
of
age
or
older,
or
is
the
surviving
spouse
of
an
33
individual
or
a
survivor
having
an
insurable
interest
in
an
34
individual
who
would
have
qualified
for
the
exemption
under
35
-11-
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2383
this
subsection
for
the
tax
year,
subtract,
to
the
extent
1
included,
the
total
amount
of
a
governmental
or
other
pension
2
or
retirement
pay,
including,
but
not
limited
to,
defined
3
benefit
or
defined
contribution
plans,
annuities,
individual
4
retirement
accounts,
plans
maintained
or
contributed
to
by
an
5
employer,
or
maintained
or
contributed
to
by
a
self-employed
6
person
as
an
employer,
and
deferred
compensation
plans
or
any
7
earnings
attributable
to
the
deferred
compensation
plans,
up
8
to
a
maximum
of
six
thousand
dollars
amount
as
specified
in
9
paragraph
“b”
for
a
person,
other
than
a
husband
or
wife,
who
10
files
a
separate
state
income
tax
return
and
up
to
a
maximum
11
of
twelve
thousand
dollars
amount
as
specified
in
paragraph
12
“c”
for
a
husband
and
wife
who
file
a
joint
state
income
tax
13
return.
However,
a
surviving
spouse
who
is
not
disabled
or
14
fifty-five
years
of
age
or
older
can
only
exclude
the
amount
15
of
pension
or
retirement
pay
received
as
a
result
of
the
death
16
of
the
other
spouse.
A
husband
and
wife
filing
separate
state
17
income
tax
returns
or
separately
on
a
combined
state
return
18
are
allowed
a
combined
maximum
exclusion
under
this
subsection
19
of
up
to
twelve
thousand
dollars.
The
twelve
thousand
dollar
20
the
maximum
amount
specified
in
paragraph
“c”
,
which
exclusion
21
shall
be
allocated
to
the
husband
or
wife
in
the
proportion
22
that
each
spouse’s
respective
pension
and
retirement
pay
23
received
bears
to
total
combined
pension
and
retirement
pay
24
received.
25
b.
(1)
For
tax
years
beginning
on
or
after
January
1,
2019,
26
but
before
January
1,
2022,
the
maximum
exclusion
amount
equals
27
ten
thousand
dollars.
28
(2)
For
tax
years
beginning
on
or
after
January
1,
2022,
the
29
maximum
exclusion
amount
equals
twelve
thousand
dollars.
30
c.
(1)
For
tax
years
beginning
on
or
after
January
1,
2019,
31
but
before
January
1,
2022,
the
maximum
exclusion
amount
equals
32
twenty
thousand
dollars.
33
(2)
For
tax
years
beginning
on
or
after
January
1,
2022,
the
34
maximum
exclusion
amount
equals
twenty-four
thousand
dollars.
35
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2383
Sec.
24.
Section
422.7,
subsection
41,
Code
2018,
is
amended
1
by
adding
the
following
new
paragraph:
2
NEW
PARAGRAPH
.
0e.
Add,
to
the
extent
deducted
for
3
federal
tax
purposes,
interest,
taxes,
and
other
miscellaneous
4
expenses
to
the
extent
such
amounts
are
eligible
home
costs
5
in
connection
with
a
qualified
home
purchase
that
were
paid
6
or
reimbursed
from
funds
in
a
first-time
homebuyer
savings
7
account.
8
Sec.
25.
Section
422.7,
subsection
44,
paragraph
a,
9
unnumbered
paragraph
1,
Code
2018,
is
amended
to
read
as
10
follows:
11
If
For
tax
years
beginning
before
January
1,
2022,
if
the
12
taxpayer,
while
living,
donates
one
or
more
of
the
taxpayer’s
13
human
organs
to
another
human
being
for
immediate
human
organ
14
transplantation
during
the
tax
year,
subtract,
to
the
extent
15
not
otherwise
excluded,
the
following
unreimbursed
expenses
16
incurred
by
the
taxpayer
and
related
to
the
taxpayer’s
organ
17
donation:
18
Sec.
26.
Section
422.7,
subsection
47,
Code
2018,
is
amended
19
to
read
as
follows:
20
47.
Subtract,
to
the
extent
not
otherwise
deducted
in
21
computing
adjusted
gross
federal
taxable
income,
the
amounts
22
paid
by
the
taxpayer
to
the
department
of
veterans
affairs
for
23
the
purpose
of
providing
grants
under
the
injured
veterans
24
grant
program
established
in
section
35A.14
.
Amounts
25
subtracted
under
this
subsection
shall
not
be
used
by
the
26
taxpayer
in
computing
the
amount
of
charitable
contributions
as
27
defined
by
section
170
of
the
Internal
Revenue
Code.
28
Sec.
27.
Section
422.7,
Code
2018,
is
amended
by
adding
the
29
following
new
subsection:
30
NEW
SUBSECTION
.
51.
The
additional
first-year
depreciation
31
allowance
authorized
in
section
168(k)
of
the
Internal
Revenue
32
Code
does
not
apply
in
computing
net
income
for
state
tax
33
purposes.
If
the
taxpayer
has
taken
the
additional
first-year
34
depreciation
allowance
for
purposes
of
computing
federal
35
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taxable
income,
then
the
taxpayer
shall
make
the
following
1
adjustments
to
federal
taxable
income
when
computing
net
income
2
for
state
tax
purposes:
3
a.
Add
the
total
amount
of
depreciation
taken
under
section
4
168(k)
of
the
Internal
Revenue
Code
for
the
tax
year.
5
b.
Subtract
the
amount
of
depreciation
allowable
under
the
6
modified
accelerated
cost
recovery
system
described
in
section
7
168
of
the
Internal
Revenue
Code
and
calculated
without
regard
8
to
section
168(k).
9
c.
Any
other
adjustments
to
gains
or
losses
necessary
to
10
reflect
the
adjustments
made
in
paragraphs
“a”
and
“b”
.
The
11
director
shall
adopt
rules
for
the
administration
of
this
12
paragraph.
13
Sec.
28.
Section
422.7,
subsections
3,
7,
8,
9,
10,
11,
14,
14
15,
16,
20,
21,
22,
23,
24,
25,
26,
29,
30,
35,
36,
37,
39,
39A,
15
39B,
40,
43,
45,
49,
53,
55,
56,
57,
and
58,
Code
2018,
are
16
amended
by
striking
the
subsections.
17
Sec.
29.
Section
422.8,
subsection
4,
Code
2018,
is
amended
18
by
striking
the
subsection.
19
Sec.
30.
Section
422.9,
Code
2018,
is
amended
by
striking
20
the
section
and
inserting
in
lieu
thereof
the
following:
21
422.9
Iowa
net
operating
loss
incurred
prior
to
January
1,
22
2019.
23
Any
Iowa
net
operating
loss
carried
over
from
a
taxable
year
24
beginning
prior
to
January
1,
2019,
may
be
deducted
as
provided
25
in
section
422.9,
subsection
3,
Code
2018.
26
Sec.
31.
Section
422.11S,
subsection
4,
Code
2018,
is
27
amended
to
read
as
follows:
28
4.
Married
taxpayers
who
file
separate
returns
or
file
29
separately
on
a
combined
return
form
must
determine
the
tax
30
credit
under
subsection
1
based
upon
their
combined
net
income
31
and
allocate
the
total
credit
amount
to
each
spouse
in
the
32
proportion
that
each
spouse’s
respective
net
income
bears
to
33
the
total
combined
net
income.
Nonresidents
or
part-year
34
residents
of
Iowa
must
determine
their
tax
credit
in
the
ratio
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of
their
Iowa
source
net
income
to
their
all
source
net
income.
1
Nonresidents
or
part-year
residents
who
are
married
and
elect
2
to
file
separate
returns
or
to
file
separately
on
a
combined
3
return
form
must
allocate
the
tax
credit
between
the
spouses
4
in
the
ratio
of
each
spouse’s
Iowa
source
net
income
to
the
5
combined
Iowa
source
net
income
of
the
taxpayers.
6
Sec.
32.
Section
422.12B,
subsection
2,
Code
2018,
is
7
amended
to
read
as
follows:
8
2.
Married
taxpayers
electing
to
file
separate
returns
or
9
filing
separately
on
a
combined
return
may
avail
themselves
10
of
the
earned
income
credit
by
allocating
the
earned
income
11
credit
to
each
spouse
in
the
proportion
that
each
spouse’s
12
respective
earned
income
bears
to
the
total
combined
earned
13
income.
Taxpayers
affected
by
the
allocation
provisions
of
14
section
422.8
shall
be
permitted
a
deduction
for
the
credit
15
only
in
the
amount
fairly
and
equitably
allocable
to
Iowa
under
16
rules
prescribed
by
the
director.
17
Sec.
33.
Section
422.12C,
subsection
4,
Code
2018,
is
18
amended
to
read
as
follows:
19
4.
Married
taxpayers
who
have
filed
joint
federal
returns
20
electing
to
file
separate
returns
or
to
file
separately
on
a
21
combined
return
form
must
determine
the
child
and
dependent
22
care
credit
under
subsection
1
or
the
early
childhood
23
development
tax
credit
under
subsection
2
based
upon
their
24
combined
net
income
and
allocate
the
total
credit
amount
to
25
each
spouse
in
the
proportion
that
each
spouse’s
respective
net
26
income
bears
to
the
total
combined
net
income.
Nonresidents
27
or
part-year
residents
of
Iowa
must
determine
their
Iowa
child
28
and
dependent
care
credit
in
the
ratio
of
their
Iowa
source
29
net
income
to
their
all
source
net
income.
Nonresidents
or
30
part-year
residents
who
are
married
and
elect
to
file
separate
31
returns
or
to
file
separately
on
a
combined
return
form
must
32
allocate
the
Iowa
child
and
dependent
care
credit
between
the
33
spouses
in
the
ratio
of
each
spouse’s
Iowa
source
net
income
to
34
the
combined
Iowa
source
net
income
of
the
taxpayers.
35
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Sec.
34.
Section
422.13,
subsection
1,
paragraph
c,
Code
1
2018,
is
amended
by
striking
the
paragraph.
2
Sec.
35.
Section
422.16,
subsection
1,
paragraph
f,
Code
3
2018,
is
amended
by
striking
the
paragraph.
4
Sec.
36.
Section
422.21,
subsections
2,
5,
and
7,
Code
2018,
5
are
amended
to
read
as
follows:
6
2.
An
individual
in
the
armed
forces
of
the
United
States
7
serving
in
an
area
designated
by
the
president
of
the
United
8
States
or
the
United
States
Congress
as
a
combat
zone
or
as
a
9
qualified
hazardous
duty
area,
or
deployed
outside
the
United
10
States
away
from
the
individual’s
permanent
duty
station
while
11
participating
in
an
operation
designated
by
the
United
States
12
secretary
of
defense
as
a
contingency
operation
as
defined
13
in
10
U.S.C.
§101(a)(13),
or
which
became
such
a
contingency
14
operation
by
the
operation
of
law,
or
an
individual
serving
in
15
support
of
those
forces,
is
allowed
the
same
additional
time
16
period
after
leaving
the
combat
zone
or
the
qualified
hazardous
17
duty
area,
or
ceasing
to
participate
in
such
contingency
18
operation,
or
after
a
period
of
continuous
hospitalization,
to
19
file
a
state
income
tax
return
or
perform
other
acts
related
20
to
the
department,
as
would
constitute
timely
filing
of
the
21
return
or
timely
performance
of
other
acts
described
in
section
22
7508(a)
of
the
Internal
Revenue
Code.
An
individual
on
active
23
duty
federal
military
service
in
the
armed
forces,
armed
forces
24
military
reserve,
or
national
guard
who
is
deployed
outside
25
the
United
States
in
other
than
a
combat
zone,
qualified
26
hazardous
duty
area,
or
contingency
operation
is
allowed
the
27
same
additional
period
of
time
described
in
section
7508(a)
28
of
the
Internal
Revenue
Code
to
file
a
state
income
tax
29
return
or
perform
other
acts
related
to
the
department.
For
30
the
purposes
of
this
subsection
,
“other
acts
related
to
the
31
department”
includes
filing
claims
for
refund
for
any
tax
32
administered
by
the
department,
making
tax
payments
other
than
33
withholding
payments,
filing
appeals
on
the
tax
matters,
filing
34
other
tax
returns,
and
performing
other
acts
described
in
the
35
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department’s
rules.
The
additional
time
period
allowed
applies
1
to
the
spouse
of
the
individual
described
in
this
subsection
2
to
the
extent
the
spouse
files
jointly
or
separately
on
the
3
combined
return
form
with
the
individual
or
when
the
spouse
4
is
a
party
with
the
individual
to
any
matter
for
which
the
5
additional
time
period
is
allowed.
6
5.
The
director
shall
determine
for
the
1989
2022
and
each
7
subsequent
calendar
year
the
annual
and
cumulative
inflation
8
factors
for
each
calendar
year
to
be
applied
to
tax
years
9
beginning
on
or
after
January
1
of
that
calendar
year.
The
10
director
shall
compute
the
new
dollar
amounts
tax
rates
11
as
specified
to
be
adjusted
in
section
422.5
by
the
latest
12
cumulative
inflation
factor
and
round
off
the
result
to
the
13
nearest
one
dollar
one-hundredth
of
one
percent
.
The
annual
14
and
cumulative
inflation
factors
determined
by
the
director
15
are
not
rules
as
defined
in
section
17A.2,
subsection
11
.
The
16
director
shall
determine
for
the
1990
calendar
year
and
each
17
subsequent
calendar
year
the
annual
and
cumulative
standard
18
deduction
factors
to
be
applied
to
tax
years
beginning
on
or
19
after
January
1
of
that
calendar
year.
The
director
shall
20
compute
the
new
dollar
amounts
of
the
standard
deductions
21
specified
in
section
422.9,
subsection
1
,
by
the
latest
22
cumulative
standard
deduction
factor
and
round
off
the
result
23
to
the
nearest
ten
dollars.
The
annual
and
cumulative
standard
24
deduction
factors
determined
by
the
director
are
not
rules
as
25
defined
in
section
17A.2,
subsection
11
.
26
7.
If
married
taxpayers
file
a
joint
return
or
file
27
separately
on
a
combined
return
in
accordance
with
rules
28
prescribed
by
the
director,
both
spouses
are
jointly
and
29
severally
liable
for
the
total
tax
due
on
the
return,
except
30
when
one
spouse
is
considered
to
be
an
innocent
spouse
under
31
criteria
established
pursuant
to
section
6015
of
the
Internal
32
Revenue
Code.
33
Sec.
37.
Section
422.32,
subsection
1,
paragraph
h,
Code
34
2018,
is
amended
to
read
as
follows:
35
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2383
h.
“Internal
Revenue
Code”
means
the
Internal
Revenue
Code
1
of
1954,
prior
to
the
date
of
its
redesignation
as
the
Internal
2
Revenue
Code
of
1986
by
the
Tax
Reform
Act
of
1986,
or
means
3
the
Internal
Revenue
Code
of
1986
,
as
amended
and
in
effect
4
on
January
1,
2015
.
This
definition
shall
not
be
construed
5
to
include
any
amendment
to
the
Internal
Revenue
Code
enacted
6
after
the
date
specified
in
the
preceding
sentence,
including
7
any
amendment
with
retroactive
applicability
or
effectiveness.
8
Sec.
38.
Section
422.33,
subsection
1,
paragraphs
a,
b,
c,
9
and
d,
Code
2018,
are
amended
to
read
as
follows:
10
a.
On
the
first
twenty-five
thousand
dollars
of
taxable
11
income,
or
any
part
thereof,
the
rate
of
six
percent
for
tax
12
years
beginning
prior
to
January
1,
2021,
and
the
rate
of
13
five
and
one-half
percent
for
tax
years
beginning
on
or
after
14
January
1,
2021
.
15
b.
On
taxable
income
between
twenty-five
thousand
dollars
16
and
one
hundred
thousand
dollars
or
any
part
thereof,
the
rate
17
of
eight
percent
for
tax
years
beginning
prior
to
January
1,
18
2021,
and
the
rate
of
five
and
one-half
percent
for
tax
years
19
beginning
on
or
after
January
1,
2021
.
20
c.
On
taxable
income
between
one
hundred
thousand
dollars
21
and
two
hundred
fifty
thousand
dollars
or
any
part
thereof,
the
22
rate
of
ten
percent
for
tax
years
beginning
prior
to
January
1,
23
2020,
the
rate
of
eight
percent
for
tax
years
beginning
during
24
the
2020
calendar
year,
and
the
rate
of
five
and
one-half
25
percent
for
tax
years
beginning
on
or
after
January
1,
2021
.
26
d.
On
taxable
income
of
two
hundred
fifty
thousand
dollars
27
or
more,
the
rate
of
twelve
ten
percent
for
tax
years
beginning
28
on
or
after
January
1,
2019,
but
prior
to
January
1,
2021,
the
29
rate
of
eight
percent
for
tax
years
beginning
during
the
2021
30
calendar
year,
and
the
rate
of
seven
percent
for
tax
years
31
beginning
on
or
after
January
1,
2022
.
32
Sec.
39.
Section
422.33,
subsection
4,
Code
2018,
is
amended
33
by
striking
the
subsection.
34
Sec.
40.
Section
422.35,
unnumbered
paragraph
1,
Code
2018,
35
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2383
is
amended
to
read
as
follows:
1
The
term
“net
income”
means
the
taxable
income
before
the
2
net
operating
loss
deduction,
as
properly
computed
for
federal
3
income
tax
purposes
under
the
Internal
Revenue
Code,
with
the
4
following
adjustments:
5
Sec.
41.
Section
422.35,
subsection
4,
Code
2018,
is
amended
6
to
read
as
follows:
7
4.
Subtract
fifty
percent
of
the
federal
income
taxes
paid
8
or
accrued,
as
the
case
may
be,
during
the
tax
year
to
the
9
extent
payment
is
for
a
tax
year
beginning
prior
to
January
1,
10
2019
,
adjusted
by
any
federal
income
tax
refunds
;
and
add
the
11
Iowa
income
tax
deducted
in
computing
said
taxable
income
to
12
the
extent
the
tax
was
deducted
for
a
tax
year
beginning
prior
13
to
January
1,
2019
.
14
Sec.
42.
Section
422.35,
subsection
6,
paragraph
a,
15
unnumbered
paragraph
1,
Code
2018,
is
amended
to
read
as
16
follows:
17
If
For
tax
years
beginning
before
January
1,
2022,
if
the
18
taxpayer
is
a
small
business
corporation,
subtract
an
amount
19
equal
to
sixty-five
percent
of
the
wages
paid
to
individuals,
20
but
not
to
exceed
twenty
thousand
dollars
per
individual,
named
21
in
subparagraphs
(1),
(2),
and
(3)
who
were
hired
for
the
first
22
time
by
the
taxpayer
during
the
tax
year
for
work
done
in
this
23
state:
24
Sec.
43.
Section
422.35,
subsection
6A,
paragraph
a,
25
unnumbered
paragraph
1,
Code
2018,
is
amended
to
read
as
26
follows:
27
If
For
tax
years
beginning
prior
to
January
1,
2022,
if
the
28
taxpayer
is
a
business
corporation
and
does
not
qualify
for
29
the
adjustment
under
subsection
6
,
subtract
an
amount
equal
to
30
sixty-five
percent
of
the
wages
paid
to
individuals,
but
shall
31
not
exceed
twenty
thousand
dollars
per
individual,
named
in
32
subparagraphs
(1)
and
(2)
who
were
hired
for
the
first
time
by
33
the
taxpayer
during
the
tax
year
for
work
done
in
this
state:
34
Sec.
44.
Section
422.35,
subsection
11,
Code
2018,
is
35
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amended
by
striking
the
subsection
and
inserting
in
lieu
1
thereof
the
following:
2
11.
a.
Add
any
federal
net
operating
loss
deduction
carried
3
over
from
a
taxable
year
beginning
prior
to
January
1,
2019.
4
b.
Any
Iowa
net
operating
loss
carried
over
from
a
taxable
5
year
beginning
prior
to
January
1,
2019,
may
be
deducted
as
6
provided
in
section
422.35,
subsection
11,
Code
2018.
7
Sec.
45.
Section
422.35,
Code
2018,
is
amended
by
adding
the
8
following
new
subsection:
9
NEW
SUBSECTION
.
23.
The
additional
first-year
depreciation
10
allowance
authorized
in
section
168(k)
of
the
Internal
Revenue
11
Code
does
not
apply
in
computing
net
income
for
state
tax
12
purposes.
If
the
taxpayer
has
taken
the
additional
first-year
13
depreciation
allowance
for
purposes
of
computing
federal
14
taxable
income,
then
the
taxpayer
shall
make
the
following
15
adjustments
to
federal
taxable
income
when
computing
net
income
16
for
state
tax
purposes:
17
a.
Add
the
total
amount
of
depreciation
taken
under
section
18
168(k)
of
the
Internal
Revenue
Code
for
the
tax
year.
19
b.
Subtract
the
amount
of
depreciation
allowable
under
the
20
modified
accelerated
cost
recovery
system
described
in
section
21
168
of
the
Internal
Revenue
Code
and
calculated
without
regard
22
to
section
168(k).
23
c.
Any
other
adjustments
to
gains
or
losses
necessary
to
24
reflect
the
adjustments
made
in
paragraphs
“a”
and
“b”
.
The
25
director
shall
adopt
rules
for
the
administration
of
this
26
paragraph.
27
Sec.
46.
Section
422.35,
subsections
3,
5,
7,
8,
10,
16,
28
17,
18,
19,
19A,
19B,
20,
22,
and
24,
Code
2018,
are
amended
by
29
striking
the
subsections.
30
Sec.
47.
Section
541B.3,
subsection
1,
paragraph
b,
Code
31
2018,
is
amended
to
read
as
follows:
32
b.
A
married
couple
electing
to
file
a
joint
Iowa
individual
33
income
tax
return
may
establish
a
joint
first-time
homebuyer
34
savings
account.
Married
taxpayers
electing
to
file
separate
35
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2383
tax
returns
or
separately
on
a
combined
tax
return
for
Iowa
tax
1
purposes
shall
not
establish
or
maintain
a
joint
first-time
2
homebuyer
savings
account.
3
Sec.
48.
Section
541B.6,
Code
2018,
is
amended
to
read
as
4
follows:
5
541B.6
Tax
considerations.
6
The
state
income
tax
treatment
of
a
first-time
homebuyer
7
savings
account
shall
be
as
provided
in
section
422.7,
8
subsection
41
,
and
section
422.9,
subsection
2
,
paragraph
“k”
.
9
Sec.
49.
EFFECTIVE
DATE.
This
division
of
this
Act
takes
10
effect
January
1,
2019.
11
Sec.
50.
APPLICABILITY.
This
division
of
this
Act
applies
12
to
tax
years
beginning
on
or
after
January
1,
2019.
13
DIVISION
III
14
TAX
CREDITS
15
Sec.
51.
Section
8.57E,
subsection
2,
Code
2018,
is
amended
16
to
read
as
follows:
17
2.
Moneys
in
the
taxpayers
trust
fund
shall
only
be
used
18
pursuant
to
appropriations
or
transfers
made
by
the
general
19
assembly
for
tax
relief.
During
each
fiscal
year
beginning
on
20
or
after
July
1,
2014,
but
before
June
30,
2020,
in
which
the
21
balance
of
the
taxpayers
trust
fund
equals
or
exceeds
thirty
22
million
dollars,
there
is
transferred
from
the
taxpayers
trust
23
fund
to
the
Iowa
taxpayers
trust
fund
tax
credit
fund
created
24
in
section
422.11E
,
the
entire
balance
of
the
taxpayers
trust
25
fund
to
be
used
for
the
Iowa
taxpayers
trust
fund
tax
credit
in
26
accordance
with
section
422.11E,
subsection
5
.
27
Sec.
52.
Section
15.119,
subsection
2,
paragraph
a,
Code
28
2018,
is
amended
by
striking
the
paragraph
and
inserting
in
29
lieu
thereof
the
following:
30
a.
The
high
quality
jobs
program
administered
pursuant
31
to
sections
15.326
through
15.336.
In
allocating
tax
32
credits
pursuant
to
this
subsection,
the
authority
shall
not
33
allocate
more
than
eighty
million
dollars
for
purposes
of
this
34
paragraph.
35
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Sec.
53.
Section
15.119,
subsection
2,
paragraphs
d,
e,
and
1
g,
Code
2018,
are
amended
to
read
as
follows:
2
d.
The
tax
credits
for
investments
in
qualifying
businesses
3
issued
pursuant
to
section
15E.43
.
In
allocating
tax
credits
4
pursuant
to
this
subsection
,
the
authority
shall
not
allocate
5
two
more
than
four
million
dollars
for
purposes
of
this
6
paragraph
,
unless
the
authority
determines
that
the
tax
credits
7
awarded
will
be
less
than
that
amount
.
8
e.
The
tax
credits
for
investments
in
an
innovation
fund
9
pursuant
to
section
15E.52
.
In
allocating
tax
credits
pursuant
10
to
this
subsection
in
a
fiscal
year
in
which
the
allocation
for
11
purposes
of
paragraph
“d”
does
not
exceed
two
million
dollars
,
12
the
authority
shall
not
allocate
more
than
eight
million
13
dollars
for
purposes
of
this
paragraph
,
unless
the
authority
14
determines
that
the
tax
credits
awarded
will
be
less
than
that
15
amount
.
In
allocating
tax
credits
pursuant
to
this
subsection
16
in
a
fiscal
year
in
which
the
allocation
for
purposes
of
17
paragraph
“d”
exceeds
two
million
dollars,
the
authority
shall
18
not
allocate
for
purposes
of
this
paragraph
an
amount
that
19
exceeds
an
amount
equal
to
the
difference
of
eight
million
20
dollars
less
the
amount
that
the
allocation
for
purposes
of
21
paragraph
“d”
exceeds
two
million
dollars
for
the
same
fiscal
22
year.
23
g.
The
workforce
housing
tax
incentives
program
administered
24
pursuant
to
sections
15.351
through
15.356
.
In
allocating
25
tax
credits
pursuant
to
this
subsection
,
the
authority
shall
26
not
allocate
more
than
twenty
twenty-two
million
dollars
for
27
purposes
of
this
paragraph.
Of
the
moneys
allocated
under
this
28
paragraph,
five
seven
million
dollars
shall
be
reserved
for
29
allocation
to
qualified
housing
projects
in
small
cities,
as
30
defined
in
section
15.352
,
that
are
registered
on
or
after
July
31
1,
2017.
32
Sec.
54.
Section
15.329,
subsection
1,
paragraph
f,
Code
33
2018,
is
amended
to
read
as
follows:
34
f.
The
business
shall
not
be
a
retail
business
or
a
business
35
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where
entrance
is
limited
by
a
cover
charge
or
membership
1
requirement
,
or
a
web
search
portal
business
as
defined
in
2
section
423.3,
subsection
93,
or
a
data
center
business
as
3
defined
in
section
423.3,
subsection
95,
unless
such
web
search
4
portal
business
or
data
center
business
had
a
physical
presence
5
in
this
state
prior
to
January
1,
2019
.
6
Sec.
55.
Section
15.331A,
subsection
1,
Code
2018,
is
7
amended
to
read
as
follows:
8
1.
The
eligible
business
shall
be
entitled
to
a
refund
9
of
the
sales
and
use
taxes
paid
under
chapter
423
for
gas,
10
electricity,
water,
or
sewer
utility
services,
goods,
wares,
or
11
merchandise,
or
on
services
rendered,
furnished,
or
performed
12
to
or
for
a
contractor
or
subcontractor
and
used
in
the
13
fulfillment
of
a
written
contract
relating
to
the
construction
14
or
equipping
of
a
facility
that
is
part
of
a
project
of
the
15
eligible
business.
Taxes
attributable
to
intangible
property
16
and
furniture
and
furnishings
shall
not
be
refunded.
However,
17
an
eligible
business
shall
be
entitled
to
a
refund
for
taxes
18
attributable
to
racks,
shelving,
and
conveyor
equipment
to
be
19
used
in
a
warehouse
or
distribution
center
subject
to
section
20
15.331C
.
21
Sec.
56.
Section
15.331C,
Code
2018,
is
amended
to
read
as
22
follows:
23
15.331C
Corporate
tax
credit
for
certain
sales
taxes
paid
by
24
third-party
developer.
25
1.
An
eligible
business
may
claim
a
corporate
tax
credit
26
in
an
amount
equal
to
the
sales
and
use
taxes
paid
by
a
27
third-party
developer
under
chapter
423
for
gas,
electricity,
28
water,
or
sewer
utility
services,
goods,
wares,
or
merchandise,
29
or
on
services
rendered,
furnished,
or
performed
to
or
for
a
30
contractor
or
subcontractor
and
used
in
the
fulfillment
of
a
31
written
contract
relating
to
the
construction
or
equipping
of
32
a
facility
of
the
eligible
business.
Taxes
attributable
to
33
intangible
property
and
furniture
and
furnishings
shall
not
34
be
included
,
but
taxes
attributable
to
racks,
shelving,
and
35
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conveyor
equipment
to
be
used
in
a
warehouse
or
distribution
1
center
shall
be
included
.
Any
credit
in
excess
of
the
tax
2
liability
for
the
tax
year
may
be
credited
to
the
tax
liability
3
for
the
following
seven
years
or
until
depleted,
whichever
4
occurs
earlier.
An
eligible
business
may
elect
to
receive
a
5
refund
of
all
or
a
portion
of
an
unused
tax
credit.
6
2.
A
third-party
developer
shall
state
under
oath,
on
7
forms
provided
by
the
department
of
revenue,
the
amount
of
8
taxes
paid
as
described
in
subsection
1
and
shall
submit
such
9
forms
to
the
department
of
revenue.
The
taxes
paid
shall
be
10
itemized
to
allow
identification
of
the
taxes
attributable
11
to
racks,
shelving,
and
conveyor
equipment
to
be
used
in
a
12
warehouse
or
distribution
center.
After
receiving
the
form
13
from
the
third-party
developer,
the
department
of
revenue
shall
14
issue
a
tax
credit
certificate
to
the
eligible
business
equal
15
to
the
sales
and
use
taxes
paid
by
a
third-party
developer
16
under
chapter
423
for
gas,
electricity,
water,
or
sewer
17
utility
services,
goods,
wares,
or
merchandise,
or
on
services
18
rendered,
furnished,
or
performed
to
or
for
a
contractor
or
19
subcontractor
and
used
in
the
fulfillment
of
a
written
contract
20
relating
to
the
construction
or
equipping
of
a
facility.
21
The
department
of
revenue
shall
also
issue
a
tax
credit
22
certificate
to
the
eligible
business
equal
to
the
taxes
paid
23
and
attributable
to
racks,
shelving,
and
conveyor
equipment
to
24
be
used
in
a
warehouse
or
distribution
center.
The
aggregate
25
combined
total
amount
of
tax
refunds
under
section
15.331A
for
26
taxes
attributable
to
racks,
shelving,
and
conveyor
equipment
27
to
be
used
in
a
warehouse
or
distribution
center
and
of
tax
28
credit
certificates
issued
by
the
department
of
revenue
for
the
29
taxes
paid
and
attributable
to
racks,
shelving,
and
conveyor
30
equipment
to
be
used
in
a
warehouse
or
distribution
center
31
shall
not
exceed
five
hundred
thousand
dollars
in
a
fiscal
32
year.
If
an
applicant
for
a
tax
credit
certificate
does
not
33
receive
a
certificate
for
the
taxes
paid
and
attributable
34
to
racks,
shelving,
and
conveyor
equipment
to
be
used
in
a
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warehouse
or
distribution
center,
the
application
shall
be
1
considered
in
succeeding
fiscal
years.
The
eligible
business
2
shall
not
claim
a
tax
credit
under
this
section
unless
a
tax
3
credit
certificate
issued
by
the
department
of
revenue
is
4
included
with
the
taxpayer’s
tax
return
for
the
tax
year
for
5
which
the
tax
credit
is
claimed.
A
tax
credit
certificate
6
shall
contain
the
eligible
business’s
name,
address,
tax
7
identification
number,
the
amount
of
the
tax
credit,
and
other
8
information
deemed
necessary
by
the
department
of
revenue.
9
Sec.
57.
Section
15.335,
subsection
7,
paragraph
b,
Code
10
2018,
is
amended
by
striking
the
paragraph
and
inserting
in
11
lieu
thereof
the
following:
12
b.
For
purposes
of
this
section,
“Internal
Revenue
Code”
13
means
the
same
as
defined
in
section
422.3.
14
Sec.
58.
Section
15.335,
subsection
8,
Code
2018,
is
amended
15
by
striking
the
subsection
and
inserting
in
lieu
thereof
the
16
following:
17
8.
Any
tax
credit
in
excess
of
the
taxpayer’s
liability
for
18
the
tax
year
is
not
refundable
and
may
not
be
credited
to
the
19
tax
liability
for
any
other
year.
20
Sec.
59.
Section
16.80,
subsection
5,
paragraphs
a
and
b,
21
Code
2018,
are
amended
to
read
as
follows:
22
a.
Except
as
provided
in
paragraph
“b”
,
the
tax
credit
shall
23
equal
five
seven
percent
of
the
amount
paid
to
the
taxpayer
24
under
the
agreement.
25
b.
The
tax
credit
shall
equal
fifteen
seventeen
percent
26
of
the
amount
paid
to
the
taxpayer
from
crops
or
animals
sold
27
under
an
agreement
in
which
the
payment
is
exclusively
made
28
from
the
sale
of
crops
or
animals.
29
Sec.
60.
Section
16.80,
subsection
10,
Code
2018,
is
amended
30
to
read
as
follows:
31
10.
The
amount
of
tax
credit
certificates
that
may
be
issued
32
pursuant
to
this
section
shall
not
exceed
six
eight
million
33
dollars
in
any
fiscal
year.
The
authority
shall
issue
the
tax
34
credit
certificates
on
a
first-come,
first-served
basis.
35
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Sec.
61.
NEW
SECTION
.
260G.8
Future
repeal.
1
This
chapter
is
repealed
effective
July
1,
2025.
2
Sec.
62.
Section
403.19A,
subsection
3,
paragraph
c,
3
subparagraph
(2),
Code
2018,
is
amended
to
read
as
follows:
4
(2)
The
pilot
project
city
and
the
economic
development
5
authority
shall
not
enter
into
a
withholding
agreement
after
6
June
30,
2018
2019
.
7
Sec.
63.
Section
404A.4,
subsection
1,
paragraph
a,
Code
8
2018,
is
amended
to
read
as
follows:
9
a.
Except
as
provided
in
subsections
2
and
3
,
the
authority
10
shall
not
award
in
any
one
fiscal
year
an
amount
of
tax
credits
11
provided
in
section
404A.2
in
excess
of
forty-five
forty
12
million
dollars.
13
Sec.
64.
Section
404A.4,
subsections
2
and
3,
Code
2018,
are
14
amended
by
striking
the
subsections.
15
Sec.
65.
NEW
SECTION
.
404A.7
Future
repeal.
16
This
chapter
is
repealed
effective
July
1,
2025.
17
Sec.
66.
Section
422.10,
subsection
1,
Code
2018,
is
amended
18
by
adding
the
following
new
paragraph:
19
NEW
PARAGRAPH
.
0a.
An
individual
shall
only
be
eligible
for
20
the
credit
provided
in
this
section
if
the
business
conducting
21
the
research
meets
all
of
the
following
requirements:
22
(1)
(a)
The
business
is
engaged
in
the
manufacturing,
23
life
sciences,
software
engineering,
or
aviation
and
aerospace
24
industry.
25
(b)
A
person
who
is
engaged
in
agricultural
production
26
as
defined
in
section
423.1,
or
who
is
a
contractor,
27
subcontractor,
builder,
or
a
contractor-retailer
that
engages
28
in
commercial
and
residential
repair
and
installation,
29
including
but
not
limited
to
heating
or
cooling
installation
30
and
repair,
plumbing
and
pipe
fitting,
security
system
31
installation,
or
electrical
installation
and
repair,
does
not
32
qualify
under
subparagraph
division
(a)
and
is
not
eligible
33
for
the
credit.
For
purposes
of
this
subparagraph
division,
34
“contractor-retailer”
means
a
business
that
makes
frequent
35
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retail
sales
to
the
public
or
to
other
contractors
and
that
1
also
engages
in
the
performance
of
construction
contracts.
2
(2)
The
business
claims
and
is
allowed
a
research
credit
3
for
such
qualified
research
expenses
under
section
41
of
the
4
Internal
Revenue
Code
for
the
same
taxable
year
as
it
is
5
claiming
the
credit
provided
in
this
section.
6
Sec.
67.
Section
422.10,
subsection
3,
Code
2018,
is
amended
7
by
adding
the
following
new
paragraph:
8
NEW
PARAGRAPH
.
0a.
For
purposes
of
this
section,
“base
9
amount”
means
the
product
of
the
fixed-based
percentage
times
10
the
average
annual
gross
receipts
of
the
taxpayer
for
the
four
11
taxable
years
preceding
the
taxable
year
for
which
the
credit
12
is
being
determined,
but
in
no
event
shall
the
base
amount
be
13
less
than
fifty
percent
of
the
qualified
research
expenses
for
14
the
credit
year.
15
Sec.
68.
Section
422.10,
subsection
3,
paragraph
a,
Code
16
2018,
is
amended
to
read
as
follows:
17
a.
For
purposes
of
this
section
,
“base
amount”
,
“basic
18
research
payment”
,
and
“qualified
research
expense”
mean
the
19
same
as
defined
for
the
federal
credit
for
increasing
research
20
activities
under
section
41
of
the
Internal
Revenue
Code,
21
except
that
for
the
alternative
simplified
credit
such
amounts
22
are
for
research
conducted
within
this
state.
23
Sec.
69.
Section
422.10,
subsection
3,
paragraph
b,
Code
24
2018,
is
amended
by
striking
the
paragraph.
25
Sec.
70.
Section
422.11B,
Code
2018,
is
amended
to
read
as
26
follows:
27
422.11B
Minimum
tax
credit.
28
1.
a.
There
For
tax
years
beginning
before
January
1,
2020,
29
there
is
allowed
as
a
credit
against
the
tax
determined
in
30
section
422.5,
subsection
1
,
paragraphs
“a”
through
“j”
for
a
31
tax
year
an
amount
equal
to
the
minimum
tax
credit
for
that
tax
32
year.
33
b.
The
minimum
tax
credit
for
a
tax
year
is
the
excess,
if
34
any,
of
the
net
minimum
tax
imposed
for
all
prior
tax
years
35
-27-
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2383
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2383
beginning
on
or
after
January
1,
1987,
but
before
January
1,
1
2019,
over
the
amount
allowable
as
a
credit
under
this
section
2
for
those
prior
tax
years.
3
2.
a.
The
allowable
credit
under
subsection
1
for
a
4
tax
year
beginning
before
January
1,
2019,
shall
not
exceed
5
the
excess,
if
any,
of
the
tax
determined
in
section
422.5,
6
subsection
1
,
paragraphs
“a”
through
“j”
over
the
state
7
alternative
minimum
tax
as
determined
in
section
422.5,
8
subsection
2
,
Code
2018
.
The
allowable
credit
under
subsection
9
1
for
a
tax
year
beginning
in
the
2019
calendar
year
shall
not
10
exceed
the
tax
determined
under
section
422.5,
subsection
1.
11
b.
The
net
minimum
tax
for
a
tax
year
is
the
excess,
if
12
any,
of
the
tax
determined
in
section
422.5,
subsection
2
,
13
Code
2018,
for
the
tax
year
over
the
tax
determined
in
section
14
422.5,
subsection
1
,
paragraphs
“a”
through
“j”
for
the
tax
15
year.
16
3.
This
section
is
repealed
January
1,
2020,
for
tax
years
17
beginning
on
or
after
January
1,
2020.
18
Sec.
71.
Section
422.11E,
Code
2018,
is
amended
by
adding
19
the
following
new
subsection:
20
NEW
SUBSECTION
.
6.
This
section
is
repealed
on
January
1,
21
2020.
22
Sec.
72.
Section
422.11S,
subsection
6,
paragraph
a,
Code
23
2018,
is
amended
to
read
as
follows:
24
a.
“Eligible
student”
means
a
student
who
is
a
member
of
a
25
household
whose
total
annual
income
during
the
calendar
year
26
before
the
student
receives
a
tuition
grant
for
purposes
of
27
this
section
does
not
exceed
an
amount
equal
to
three
four
28
times
the
most
recently
published
federal
poverty
guidelines
in
29
the
federal
register
by
the
United
States
department
of
health
30
and
human
services.
31
Sec.
73.
Section
422.11S,
subsection
8,
paragraph
a,
32
subparagraph
(2),
Code
2018,
is
amended
to
read
as
follows:
33
(2)
“Total
approved
tax
credits”
means
for
the
tax
year
34
beginning
in
the
2006
calendar
year,
two
million
five
hundred
35
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2383
thousand
dollars,
for
the
tax
year
beginning
in
the
2007
1
calendar
year,
five
million
dollars,
for
tax
years
beginning
2
on
or
after
January
1,
2008,
but
before
January
1,
2012,
seven
3
million
five
hundred
thousand
dollars,
for
tax
years
beginning
4
on
or
after
January
1,
2012,
but
before
January
1,
2014,
eight
5
million
seven
hundred
fifty
thousand
dollars,
and
for
tax
years
6
beginning
on
or
after
January
1,
2014,
but
before
January
1,
7
2019,
twelve
million
dollars
,
and
for
tax
years
beginning
on
or
8
after
January
1,
2019,
thirteen
million
dollars
.
9
Sec.
74.
Section
422.12,
subsection
2,
paragraph
b,
Code
10
2018,
is
amended
to
read
as
follows:
11
b.
A
For
tax
years
beginning
before
January
1,
2022,
a
12
tuition
credit
equal
to
twenty-five
percent
of
the
first
one
13
thousand
dollars
which
the
taxpayer
has
paid
to
others
for
each
14
dependent
in
grades
kindergarten
through
twelve,
for
tuition
15
and
textbooks
of
each
dependent
in
attending
an
elementary
or
16
secondary
school
situated
in
Iowa,
which
school
is
accredited
17
or
approved
under
section
256.11
,
which
is
not
operated
for
18
profit,
and
which
adheres
to
the
provisions
of
the
federal
19
Civil
Rights
Act
of
1964
and
chapter
216
.
Notwithstanding
20
any
other
provision,
all
other
credits
allowed
under
this
21
subsection
shall
be
deducted
before
the
tuition
credit
under
22
this
paragraph.
The
department,
when
conducting
an
audit
of
23
a
taxpayer’s
return,
shall
also
audit
the
tuition
tax
credit
24
portion
of
the
tax
return.
25
Sec.
75.
Section
422.12,
subsection
2,
paragraph
c,
26
subparagraph
(1),
Code
2018,
is
amended
to
read
as
follows:
27
(1)
A
For
tax
years
beginning
before
January
1,
2022,
28
a
volunteer
fire
fighter
and
volunteer
emergency
medical
29
services
personnel
member
credit
equal
to
one
hundred
dollars
30
to
compensate
the
taxpayer
for
the
voluntary
services
if
the
31
volunteer
served
for
the
entire
tax
year.
A
taxpayer
who
32
is
a
paid
employee
of
an
emergency
medical
services
program
33
or
a
fire
department
and
who
is
also
a
volunteer
emergency
34
medical
services
personnel
member
or
volunteer
fire
fighter
in
35
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a
city,
county,
or
area
governed
by
an
agreement
pursuant
to
1
chapter
28E
where
the
emergency
medical
services
program
or
2
fire
department
performs
services,
shall
qualify
for
the
credit
3
provided
under
this
paragraph
“c”
.
4
Sec.
76.
Section
422.12,
subsection
2,
paragraph
d,
5
subparagraph
(1),
Code
2018,
is
amended
to
read
as
follows:
6
(1)
A
For
tax
years
beginning
before
January
1,
2022,
a
7
reserve
peace
officer
credit
equal
to
one
hundred
dollars
to
8
compensate
the
taxpayer
for
services
as
a
reserve
peace
officer
9
if
the
reserve
peace
officer
served
for
the
entire
tax
year.
10
Sec.
77.
Section
422.33,
subsection
5,
Code
2018,
is
amended
11
by
adding
the
following
new
paragraph:
12
NEW
PARAGRAPH
.
0e.
A
corporation
shall
only
be
13
eligible
for
the
credit
provided
in
this
subsection
if
the
14
business
conducting
the
research
meets
all
of
the
following
15
requirements:
16
(1)
(a)
The
business
is
engaged
in
the
manufacturing,
17
life
sciences,
software
engineering,
or
aviation
and
aerospace
18
industry.
19
(b)
A
person
who
is
engaged
in
agricultural
production
20
as
defined
in
section
423.1,
or
who
is
a
contractor,
21
subcontractor,
builder,
or
a
contractor-retailer
that
engages
22
in
commercial
and
residential
repair
and
installation,
23
including
but
not
limited
to
heating
or
cooling
installation
24
and
repair,
plumbing
and
pipe
fitting,
security
system
25
installation,
or
electrical
installation
and
repair,
does
not
26
qualify
under
subparagraph
division
(a)
and
is
not
eligible
27
for
the
credit.
For
purposes
of
this
subparagraph
division,
28
“contractor-retailer”
means
a
business
that
makes
frequent
29
retail
sales
to
the
public
or
to
other
contractors
and
that
30
also
engages
in
the
performance
of
construction
contracts.
31
(2)
The
business
claims
and
is
allowed
a
research
credit
32
for
such
qualified
research
expenses
under
section
41
of
the
33
Internal
Revenue
Code
for
the
same
taxable
year
as
it
is
34
claiming
the
credit
provided
in
this
subsection.
35
-30-
SF
2383
(2)
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mm/jh/jh
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99
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2383
Sec.
78.
Section
422.33,
subsection
5,
paragraph
e,
Code
1
2018,
is
amended
by
adding
the
following
new
subparagraph:
2
NEW
SUBPARAGRAPH
.
(01)
For
purposes
of
this
section,
“base
3
amount”
means
the
product
of
the
fixed-based
percentage
times
4
the
average
annual
gross
receipts
of
the
taxpayer
for
the
four
5
taxable
years
preceding
the
taxable
year
for
which
the
credit
6
is
being
determined,
but
in
no
event
shall
the
base
amount
be
7
less
than
fifty
percent
of
the
qualified
research
expenses
for
8
the
credit
year.
9
Sec.
79.
Section
422.33,
subsection
5,
paragraph
e,
10
subparagraph
(1),
Code
2018,
is
amended
to
read
as
follows:
11
(1)
For
purposes
of
this
subsection
,
“base
amount”
,
“basic
12
research
payment”
,
and
“qualified
research
expense”
mean
the
13
same
as
defined
for
the
federal
credit
for
increasing
research
14
activities
under
section
41
of
the
Internal
Revenue
Code,
15
except
that
for
the
alternative
simplified
credit
such
amounts
16
are
for
research
conducted
within
this
state.
17
Sec.
80.
Section
422.33,
subsection
5,
paragraph
e,
18
subparagraph
(2),
Code
2018,
is
amended
by
striking
the
19
subparagraph.
20
Sec.
81.
Section
422.33,
subsection
7,
Code
2018,
is
amended
21
to
read
as
follows:
22
7.
a.
(1)
There
For
tax
years
beginning
before
January
1,
23
2020,
there
is
allowed
as
a
credit
against
the
tax
determined
24
in
subsection
1
for
a
tax
year
an
amount
equal
to
the
minimum
25
tax
credit
for
that
tax
year.
26
(2)
The
minimum
tax
credit
for
a
tax
year
is
the
excess,
27
if
any,
of
the
net
minimum
tax
imposed
for
all
prior
tax
years
28
beginning
on
or
after
January
1,
1987,
but
before
January
29
1,
2019,
over
the
amount
allowable
as
a
credit
under
this
30
subsection
for
those
prior
tax
years.
31
b.
(1)
The
allowable
credit
under
paragraph
“a”
for
a
tax
32
year
beginning
before
January
1,
2019,
shall
not
exceed
the
33
excess,
if
any,
of
the
tax
determined
in
subsection
1
over
34
the
state
alternative
minimum
tax
as
determined
in
subsection
35
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4
.
The
allowable
credit
under
paragraph
“a”
for
a
tax
year
1
beginning
in
the
2019
calendar
year
shall
not
exceed
the
tax
2
determined
in
subsection
1.
3
(2)
The
net
minimum
tax
for
a
tax
year
is
the
excess,
if
4
any,
of
the
tax
determined
in
subsection
4
for
the
tax
year
5
over
the
tax
determined
in
subsection
1
for
the
tax
year.
6
c.
This
subsection
is
repealed
January
1,
2020,
for
tax
7
years
beginning
on
or
after
January
1,
2020.
8
Sec.
82.
2018
INTERIM
TAX
CREDIT
STUDY.
The
legislative
tax
9
expenditure
committee
created
in
section
2.45
shall
study
all
10
tax
credits
available
under
Iowa
law
during
the
2018
interim.
11
The
study
shall
comprehensively
review
and
evaluate
each
tax
12
credit
to
assess
its
cost,
equity,
simplicity,
competitiveness,
13
public
purpose,
adequacy,
effectiveness,
and
the
extent
of
14
conformance
with
the
original
purpose
of
the
tax
credit.
The
15
legislative
tax
expenditure
committee
shall
also
consider
16
new
or
different
tax
credits
or
other
incentive
programs
17
for
economic
development
that
will
improve
predictability,
18
flexibility,
and
utilization,
and
put
Iowa
in
the
best
position
19
for
attracting
and
retaining
business
in
the
future.
The
20
legislative
tax
expenditure
committee
shall
submit
its
findings
21
and
recommendations
to
the
general
assembly
for
consideration
22
during
the
2019
legislative
session.
23
Sec.
83.
FUTURE
REPEAL.
Sections
15.326,
15.327,
15.329,
24
15.330,
15.330A,
15.331A,
15.331C,
15.332,
15.333,
15.333A,
25
15.335,
15.335A,
15.335B,
15.335C,
and
15.336,
Code
2018,
are
26
repealed
effective
July
1,
2025.
27
Sec.
84.
REPEAL.
Sections
422.10A,
422.11I,
and
422.11N,
28
Code
2018,
are
repealed.
29
Sec.
85.
REPEAL.
Section
422.11L,
Code
2018,
is
repealed.
30
Sec.
86.
REPEAL.
Chapter
190B,
Code
2018,
is
repealed.
31
Sec.
87.
EFFECTIVE
DATE
AND
APPLICABILITY.
32
1.
Except
as
provided
in
subsections
2
through
15,
this
33
division
of
this
Act
takes
effect
January
1,
2019,
and
applies
34
to
tax
years
beginning
on
or
after
that
date.
35
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SF
2383
(2)
87
mm/jh/jh
32/
99
S.F.
2383
2.
The
section
of
this
division
of
this
Act
repealing
1
section
422.11L,
takes
effect
July
1,
2018,
and
applies
to
2
solar
energy
system
installations
occurring
on
or
after
that
3
date.
4
3.
The
section
of
this
division
of
this
Act
striking
and
5
replacing
section
15.119,
subsection
2,
paragraph
“a”,
takes
6
effect
July
1,
2018.
7
4.
The
section
of
this
division
of
this
Act
amending
section
8
15.119,
subsection
2,
paragraphs
“d”,
“e”,
and
“g”,
takes
9
effect
July
1,
2018.
10
5.
The
sections
of
this
division
of
this
Act
amending
11
section
404A.4
take
effect
July
1,
2018.
12
6.
The
section
of
this
division
of
this
Act
amending
section
13
16.80,
subsection
10,
takes
effect
July
1,
2018.
14
7.
The
sections
of
this
division
of
this
Act
enacting
15
section
422.10,
subsection
1,
paragraph
“0a”,
and
enacting
16
section
422.33,
subsection
5,
paragraph
“0e”,
being
deemed
of
17
immediate
importance,
take
effect
upon
enactment,
and
apply
18
retroactively
to
January
1,
2018,
for
tax
years
beginning
on
or
19
after
that
date
and
for
tax
returns,
including
amended
returns,
20
filed
on
or
after
that
date
for
any
tax
year.
21
8.
The
sections
of
this
division
of
this
Act
amending
22
section
422.10,
subsection
3,
paragraph
“a”,
and
section
23
422.33,
subsection
5,
paragraph
“e”,
subparagraph
(1),
and
24
enacting
section
422.10,
subsection
3,
paragraph
“0a”,
and
25
section
422.33,
subsection
5,
paragraph
“e”,
subparagraph
26
(01),
being
deemed
of
immediate
importance,
take
effect
upon
27
enactment,
and
apply
retroactively
to
January
1,
2010,
for
tax
28
years
beginning
on
or
after
that
date.
29
9.
The
section
of
this
division
of
this
Act
amending
section
30
15.329,
subsection
1,
paragraph
“f”,
takes
effect
July
1,
2018.
31
10.
The
section
of
this
division
of
this
Act
amending
32
section
403.19A,
subsection
3,
paragraph
“c”,
subparagraph
(2),
33
takes
effect
July
1,
2018.
34
11.
The
section
of
this
division
of
this
Act
establishing
35
-33-
SF
2383
(2)
87
mm/jh/jh
33/
99
S.F.
2383
a
2018
interim
tax
credit
study
by
the
legislative
tax
1
expenditure
committee
takes
effect
July
1,
2018.
2
12.
The
sections
of
this
division
of
this
Act
amending
3
section
15.331A,
subsection
1,
section
15.331C,
and
section
4
15.335,
subsection
8,
apply
to
high
quality
jobs
program
5
agreements
entered
into
on
or
after
July
1,
2018,
and
high
6
quality
jobs
program
agreements
entered
into
prior
to
July
7
1,
2018,
shall
be
governed
by
section
15.331A,
subsection
1,
8
section
15.331C,
and
section
15.335,
subsection
8,
Code
2018.
9
13.
The
repeal
of
the
accelerated
career
education
program
10
by
the
section
of
this
division
of
this
Act
enacting
section
11
260G.8,
shall
not
constitute
grounds
for
rescission
or
12
modification
of
agreements
entered
into
under
chapter
260G
13
prior
to
July
1,
2025.
Any
agreement
entered
into
under
14
chapter
260G
prior
to
July
1,
2025,
shall
remain
in
effect
15
until
it
expires
under
its
own
terms,
and
shall
be
governed
by
16
chapter
260G
as
that
chapter
existed
immediately
prior
to
July
17
1,
2025.
18
14.
The
repeal
of
the
historic
preservation
tax
credit
19
program
by
the
section
of
this
division
of
this
Act
enacting
20
section
404A.7,
shall
not
constitute
grounds
for
rescission
21
or
modification
of
agreements
entered
into
under
chapter
404A
22
prior
to
July
1,
2025.
Any
agreement
entered
into
under
23
chapter
404A
prior
to
July
1,
2025,
shall
remain
in
effect
24
until
it
expires
under
its
own
terms,
and
shall
be
governed
by
25
chapter
404A
as
that
chapter
existed
immediately
prior
to
July
26
1,
2025.
27
15.
The
repeal
of
the
high
quality
jobs
program
by
the
28
section
of
this
division
of
this
Act
repealing
sections
15.326,
29
15.327,
15.329,
15.330,
15.330A,
15.331A,
15.331C,
15.332,
30
15.333,
15.333A,
15.335,
15.335A,
15.335B,
15.335C,
and
15.336,
31
shall
not
constitute
grounds
for
rescission
or
modification
of
32
agreements
entered
into
under
those
sections
prior
to
July
1,
33
2025.
Any
agreement
entered
into
under
those
sections
prior
34
to
July
1,
2025,
shall
remain
in
effect
until
it
expires
under
35
-34-
SF
2383
(2)
87
mm/jh/jh
34/
99
S.F.
2383
its
own
terms,
and
shall
be
governed
by
those
sections
as
they
1
existed
immediately
prior
to
July
1,
2025.
2
DIVISION
IV
3
FRANCHISE
TAX
AND
MONEYS
AND
CREDITS
TAX
4
Sec.
88.
Section
15.293A,
subsection
1,
paragraph
a,
Code
5
2018,
is
amended
to
read
as
follows:
6
a.
A
redevelopment
tax
credit
shall
be
allowed
against
7
the
taxes
imposed
in
chapter
422,
divisions
II,
III,
and
V
,
8
and
in
chapter
432
,
and
against
the
moneys
and
credits
tax
9
imposed
in
section
533.329
,
for
a
portion
of
a
taxpayer’s
10
equity
investment,
as
provided
in
subsection
3
,
in
a
qualifying
11
redevelopment
project.
12
Sec.
89.
Section
15.293A,
subsection
2,
paragraphs
c
and
f,
13
Code
2018,
are
amended
to
read
as
follows:
14
c.
The
tax
credit
certificate,
unless
rescinded
by
the
15
authority,
shall
be
accepted
by
the
department
of
revenue
as
16
payment
for
taxes
imposed
pursuant
to
chapter
422,
divisions
17
II,
III,
and
V
,
and
in
chapter
432
,
and
for
the
moneys
and
18
credits
tax
imposed
in
section
533.329
,
subject
to
any
19
conditions
or
restrictions
placed
by
the
authority
upon
20
the
face
of
the
tax
credit
certificate
and
subject
to
the
21
limitations
of
this
section
.
22
f.
A
tax
credit
shall
not
be
claimed
by
a
transferee
23
under
this
section
until
a
replacement
tax
credit
certificate
24
identifying
the
transferee
as
the
proper
holder
has
been
25
issued.
The
transferee
may
use
the
amount
of
the
tax
credit
26
transferred
against
the
taxes
imposed
in
chapter
422,
divisions
27
II,
III,
and
V
,
and
in
chapter
432
,
and
against
the
moneys
and
28
credits
tax
imposed
in
section
533.329
,
for
any
tax
year
the
29
original
transferor
could
have
claimed
the
tax
credit.
Any
30
consideration
received
for
the
transfer
of
the
tax
credit
shall
31
not
be
included
as
income
under
chapter
422,
divisions
II,
III,
32
and
V
.
Any
consideration
paid
for
the
transfer
of
the
tax
33
credit
shall
not
be
deducted
from
income
under
chapter
422,
34
divisions
II,
III,
and
V
.
35
-35-
SF
2383
(2)
87
mm/jh/jh
35/
99
S.F.
2383
Sec.
90.
Section
15.333,
subsection
1,
Code
2018,
is
amended
1
to
read
as
follows:
2
1.
An
eligible
business
may
claim
a
tax
credit
equal
to
a
3
percentage
of
the
new
investment
directly
related
to
new
jobs
4
created
or
retained
by
the
project.
The
tax
credit
shall
be
5
amortized
equally
over
five
calendar
years.
The
tax
credit
6
shall
be
allowed
against
taxes
imposed
under
chapter
422,
7
division
II,
III,
or
V
,
and
against
the
moneys
and
credits
tax
8
imposed
in
section
533.329
.
If
the
business
is
a
partnership,
9
S
corporation,
limited
liability
company,
cooperative
organized
10
under
chapter
501
and
filing
as
a
partnership
for
federal
tax
11
purposes,
or
estate
or
trust
electing
to
have
the
income
taxed
12
directly
to
the
individual,
an
individual
may
claim
the
tax
13
credit
allowed.
The
amount
claimed
by
the
individual
shall
14
be
based
upon
the
pro
rata
share
of
the
individual’s
earnings
15
of
the
partnership,
S
corporation,
limited
liability
company,
16
cooperative
organized
under
chapter
501
and
filing
as
a
17
partnership
for
federal
tax
purposes,
or
estate
or
trust.
The
18
percentage
shall
be
determined
as
provided
in
section
15.335A
.
19
Any
tax
credit
in
excess
of
the
tax
liability
for
the
tax
year
20
may
be
credited
to
the
tax
liability
for
the
following
seven
21
years
or
until
depleted,
whichever
occurs
first.
22
Sec.
91.
Section
15.355,
subsection
3,
paragraph
b,
Code
23
2018,
is
amended
to
read
as
follows:
24
b.
The
tax
credit
shall
be
allowed
against
the
taxes
imposed
25
in
chapter
422,
divisions
II,
III,
and
V
,
and
in
chapter
432
,
26
and
against
the
moneys
and
credits
tax
imposed
in
section
27
533.329
.
28
Sec.
92.
Section
15.355,
subsection
3,
paragraph
e,
29
subparagraphs
(3)
and
(6),
Code
2018,
are
amended
to
read
as
30
follows:
31
(3)
The
tax
credit
certificate,
unless
rescinded
by
the
32
authority,
shall
be
accepted
by
the
department
of
revenue
as
33
payment
for
taxes
imposed
pursuant
to
chapter
422,
divisions
34
II,
III,
and
V
,
and
in
chapter
432
,
and
for
the
moneys
and
35
-36-
SF
2383
(2)
87
mm/jh/jh
36/
99
S.F.
2383
credits
tax
imposed
in
section
533.329
,
subject
to
any
1
conditions
or
restrictions
placed
by
the
authority
upon
2
the
face
of
the
tax
credit
certificate
and
subject
to
the
3
limitations
of
this
program.
4
(6)
A
tax
credit
shall
not
be
claimed
by
a
transferee
5
under
this
section
until
a
replacement
tax
credit
certificate
6
identifying
the
transferee
as
the
proper
holder
has
been
7
issued.
The
transferee
may
use
the
amount
of
the
tax
credit
8
transferred
against
the
taxes
imposed
in
chapter
422,
divisions
9
II,
III,
and
V
,
and
in
chapter
432
,
and
against
the
moneys
and
10
credits
tax
imposed
in
section
533.329
,
for
any
tax
year
the
11
original
transferor
could
have
claimed
the
tax
credit.
Any
12
consideration
received
for
the
transfer
of
the
tax
credit
shall
13
not
be
included
as
income
under
chapter
422,
divisions
II,
14
III,
and
V
.
Any
consideration
paid
for
the
transfer
of
the
tax
15
credit
shall
not
be
deducted
from
income
under
chapter
422,
16
divisions
II,
III,
and
V
.
17
Sec.
93.
Section
15E.43,
subsection
1,
paragraphs
a
and
d,
18
Code
2018,
are
amended
to
read
as
follows:
19
a.
For
tax
years
beginning
on
or
after
January
1,
2015,
20
a
tax
credit
shall
be
allowed
against
the
taxes
imposed
in
21
chapter
422,
divisions
II,
III,
and
V
,
and
in
chapter
432
,
and
22
against
the
moneys
and
credits
tax
imposed
in
section
533.329
,
23
for
a
portion
of
a
taxpayer’s
equity
investment,
as
provided
in
24
subsection
2
,
in
a
qualifying
business.
25
d.
For
a
tax
credit
claimed
against
the
taxes
imposed
in
26
chapter
422,
division
II
,
any
tax
credit
in
excess
of
the
27
tax
liability
is
refundable.
In
lieu
of
claiming
a
refund,
28
the
taxpayer
may
elect
to
have
the
overpayment
shown
on
29
the
taxpayer’s
final,
completed
return
credited
to
the
tax
30
liability
for
the
following
tax
year.
For
a
tax
credit
claimed
31
against
the
taxes
imposed
in
chapter
422,
divisions
III
and
32
V
,
and
in
chapter
432
,
and
against
the
moneys
and
credits
tax
33
imposed
in
section
533.329
,
any
tax
credit
in
excess
of
the
34
taxpayer’s
liability
for
the
tax
year
may
be
credited
to
the
35
-37-
SF
2383
(2)
87
mm/jh/jh
37/
99
S.F.
2383
tax
liability
for
the
following
three
years
or
until
depleted,
1
whichever
is
earlier.
A
tax
credit
shall
not
be
carried
back
2
to
a
tax
year
prior
to
the
tax
year
in
which
the
taxpayer
3
redeems
the
tax
credit.
4
Sec.
94.
Section
15E.44,
subsection
4,
Code
2018,
is
amended
5
to
read
as
follows:
6
4.
After
verifying
the
eligibility
of
a
qualifying
7
business,
the
authority
shall
issue
a
tax
credit
certificate
8
to
be
included
with
the
equity
investor’s
tax
return.
The
tax
9
credit
certificate
shall
contain
the
taxpayer’s
name,
address,
10
tax
identification
number,
the
amount
of
credit,
the
name
of
11
the
qualifying
business,
and
other
information
required
by
the
12
department
of
revenue.
The
tax
credit
certificate,
unless
13
rescinded
by
the
authority,
shall
be
accepted
by
the
department
14
of
revenue
as
payment
for
taxes
imposed
pursuant
to
chapter
15
422,
divisions
II,
III,
and
V
,
and
in
chapter
432
,
and
for
the
16
moneys
and
credits
tax
imposed
in
section
533.329
,
subject
to
17
any
conditions
or
restrictions
placed
by
the
authority
upon
18
the
face
of
the
tax
credit
certificate
and
subject
to
the
19
limitations
of
section
15E.43
.
20
Sec.
95.
Section
15E.52,
subsection
2,
paragraph
a,
Code
21
2018,
is
amended
to
read
as
follows:
22
a.
A
tax
credit
shall
be
allowed
against
the
taxes
imposed
23
in
chapter
422,
divisions
II,
III,
and
V
,
and
in
chapter
432
,
24
and
against
the
moneys
and
credits
tax
imposed
in
section
25
533.329
,
for
a
portion
of
a
taxpayer’s
equity
investment
in
the
26
form
of
cash
in
an
innovation
fund.
27
Sec.
96.
Section
15E.52,
subsection
13,
Code
2018,
is
28
amended
to
read
as
follows:
29
13.
The
transferee
may
use
the
amount
of
the
tax
credit
30
transferred
against
the
taxes
imposed
in
chapter
422,
divisions
31
II,
III,
and
V
,
and
in
chapter
432
,
and
against
the
moneys
and
32
credits
tax
imposed
in
section
533.329
,
for
any
tax
year
the
33
original
transferor
could
have
claimed
the
tax
credit.
Any
34
consideration
received
for
the
transfer
of
the
tax
credit
shall
35
-38-
SF
2383
(2)
87
mm/jh/jh
38/
99
S.F.
2383
not
be
included
as
income
under
chapter
422,
divisions
II,
III,
1
and
V
.
Any
consideration
paid
for
the
transfer
of
the
tax
2
credit
shall
not
be
deducted
from
income
under
chapter
422,
3
divisions
II,
III,
and
V
.
4
Sec.
97.
Section
15E.62,
subsection
8,
Code
2018,
is
amended
5
to
read
as
follows:
6
8.
“Tax
credit”
means
a
contingent
tax
credit
issued
7
pursuant
to
section
15E.66
that
is
available
against
tax
8
liabilities
imposed
by
chapter
422,
divisions
II,
III,
and
9
V
,
and
by
chapter
432
and
against
the
moneys
and
credits
tax
10
imposed
by
section
533.329
.
11
Sec.
98.
Section
15E.305,
subsection
1,
Code
2018,
is
12
amended
to
read
as
follows:
13
1.
For
tax
years
beginning
on
or
after
January
1,
2003,
14
a
tax
credit
shall
be
allowed
against
the
taxes
imposed
in
15
chapter
422,
divisions
II,
III,
and
V
,
and
in
chapter
432
,
and
16
against
the
moneys
and
credits
tax
imposed
in
section
533.329
17
equal
to
twenty-five
percent
of
a
taxpayer’s
endowment
gift
to
18
an
endow
Iowa
qualified
community
foundation.
An
individual
19
may
claim
a
tax
credit
under
this
section
of
a
partnership,
20
limited
liability
company,
S
corporation,
estate,
or
trust
21
electing
to
have
income
taxed
directly
to
the
individual.
The
22
amount
claimed
by
the
individual
shall
be
based
upon
the
pro
23
rata
share
of
the
individual’s
earnings
from
the
partnership,
24
limited
liability
company,
S
corporation,
estate,
or
trust.
A
25
tax
credit
shall
be
allowed
only
for
an
endowment
gift
made
to
26
an
endow
Iowa
qualified
community
foundation
for
a
permanent
27
endowment
fund
established
to
benefit
a
charitable
cause
in
28
this
state.
The
amount
of
the
endowment
gift
for
which
the
29
tax
credit
is
claimed
shall
not
be
deductible
in
determining
30
taxable
income
for
state
income
tax
purposes.
Any
tax
credit
31
in
excess
of
the
taxpayer’s
tax
liability
for
the
tax
year
may
32
be
credited
to
the
tax
liability
for
the
following
five
years
33
or
until
depleted,
whichever
occurs
first.
A
tax
credit
shall
34
not
be
carried
back
to
a
tax
year
prior
to
the
tax
year
in
which
35
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the
taxpayer
claims
the
tax
credit.
1
Sec.
99.
Section
331.427,
subsection
1,
unnumbered
2
paragraph
1,
Code
2018,
is
amended
to
read
as
follows:
3
Except
as
otherwise
provided
by
state
law,
county
revenues
4
from
taxes
and
other
sources
for
general
county
services
shall
5
be
credited
to
the
general
fund
of
the
county,
including
6
revenues
received
under
sections
9I.11
,
101A.3
,
101A.7
,
123.36
,
7
123.143
,
142D.9
,
176A.8
,
321.105
,
321.152
,
321G.7
,
321I.8
,
8
section
331.554,
subsection
6
,
sections
341A.20
,
364.3
,
368.21
,
9
423A.7
,
428A.8
,
433.15
,
434.19
,
445.57
,
453A.35
,
458A.21
,
10
483A.12
,
533.329
,
556B.1
,
583.6
,
602.8108
,
904.908
,
and
906.17
,
11
and
the
following:
12
Sec.
100.
Section
422.60,
subsection
2,
paragraph
a,
Code
13
2018,
is
amended
to
read
as
follows:
14
a.
In
addition
to
all
taxes
imposed
under
this
division
,
15
there
is
imposed
upon
each
financial
institution
doing
business
16
within
the
state
and
that
is
not
exempt
from
the
federal
income
17
tax,
the
greater
of
the
tax
determined
in
section
422.63
or
18
the
state
alternative
minimum
tax
equal
to
sixty
percent
of
19
the
maximum
state
franchise
tax
rate,
rounded
to
the
nearest
20
one-tenth
of
one
percent,
of
the
state
alternative
minimum
21
taxable
income
of
the
taxpayer
computed
under
this
subsection
.
22
Sec.
101.
Section
422.60,
subsection
3,
paragraph
a,
23
subparagraph
(1),
Code
2018,
is
amended
to
read
as
follows:
24
(1)
There
For
a
financial
institution
that
is
not
exempt
25
from
the
federal
income
tax,
there
is
allowed
as
a
credit
26
against
the
tax
determined
in
section
422.63
for
a
tax
year
an
27
amount
equal
to
the
minimum
tax
credit
for
that
tax
year.
28
Sec.
102.
Section
422.61,
subsections
1,
3,
and
4,
Code
29
2018,
are
amended
to
read
as
follows:
30
1.
“Financial
institution”
means
a
state
bank
as
defined
in
31
section
524.103,
subsection
41
,
a
state
bank
chartered
under
32
the
laws
of
any
other
state,
a
national
banking
association,
33
a
trust
company,
a
federally
chartered
savings
and
loan
34
association,
an
out-of-state
state
chartered
savings
bank,
a
35
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credit
union
as
defined
in
section
533.102
that
is
incorporated
1
or
organized
under
chapter
533
or
under
the
laws
of
another
2
state,
a
financial
institution
chartered
by
the
federal
3
home
loan
bank
board,
a
non-Iowa
chartered
savings
and
loan
4
association,
or
a
production
credit
association.
5
3.
a.
“Net
income”
means
one
of
the
following:
6
(1)
For
a
financial
institution
that
is
exempt
from
the
7
federal
income
tax,
the
total
revenue
less
total
expenses
as
8
properly
reported
on
the
financial
institution’s
internal
9
revenue
service
form
990
covering
the
same
period,
with
the
10
adjustments
in
paragraph
“b”
to
the
extent
the
taxes,
income,
11
and
deductions
described
in
such
adjustments
are
applicable
12
to
the
financial
institution’s
calculation
of
revenues
and
13
expenses
as
determined
by
the
director
by
rule.
14
(2)
For
any
other
financial
institution,
the
net
income
of
15
the
financial
institution
computed
in
accordance
with
section
16
422.35
,
with
the
following
adjustments
:
in
paragraph
“b”
.
17
b.
Applicable
adjustments
in
computing
“net
income”
:
18
a.
(1)
Federal
income
taxes
paid
or
accrued
shall
not
be
19
subtracted.
20
b.
(2)
Notwithstanding
section
422.35,
subsection
2
,
or
21
any
other
provisions
of
law,
income
from
obligations
of
the
22
state
and
its
political
subdivisions
and
franchise
taxes
paid
23
or
accrued
under
this
division
during
the
taxable
year
shall
24
be
added.
Income
from
sales
of
obligations
of
the
state
and
25
its
political
subdivisions
and
interest
and
dividend
income
26
from
these
obligations
are
exempt
from
the
taxes
imposed
by
27
this
division
only
if
the
law
authorizing
the
obligations
28
specifically
exempts
the
income
from
the
sale
and
interest
and
29
dividend
income
from
the
state
franchise
tax.
30
c.
(3)
Interest
and
dividends
from
federal
securities
shall
31
not
be
subtracted.
32
d.
(4)
Interest
and
dividends
derived
from
obligations
of
33
United
States
possessions,
agencies,
and
instrumentalities,
34
including
bonds
which
were
purchased
after
January
1,
1991,
and
35
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issued
by
the
governments
of
Puerto
Rico,
Guam,
and
the
Virgin
1
Islands
shall
be
added,
to
the
extent
they
were
not
included
in
2
computing
federal
taxable
income.
3
e.
(5)
A
deduction
disallowed
under
section
265(b)
or
4
section
291(e)(1)(B)
of
the
Internal
Revenue
Code
shall
be
5
subtracted.
6
f.
(6)
A
deduction
shall
not
be
allowed
for
that
portion
of
7
the
taxpayer’s
expenses
computed
under
this
paragraph
which
is
8
allocable
to
an
investment
in
an
investment
subsidiary.
The
9
portion
of
the
taxpayer’s
expenses
which
is
allocable
to
an
10
investment
in
an
investment
subsidiary
is
an
amount
which
bears
11
the
same
ratio
to
the
taxpayer’s
expenses
as
the
taxpayer’s
12
average
adjusted
basis,
as
computed
pursuant
to
section
1016
13
of
the
Internal
Revenue
Code,
of
investment
in
that
investment
14
subsidiary
bears
to
the
average
adjusted
basis
for
all
assets
15
of
the
taxpayer.
The
portion
of
the
taxpayer’s
expenses
that
16
is
computed
and
disallowed
under
this
paragraph
shall
be
added.
17
g.
(7)
Where
a
financial
institution
as
defined
in
section
18
581
of
the
Internal
Revenue
Code
is
not
subject
to
income
tax
19
and
the
shareholders
of
the
financial
institution
are
taxed
on
20
the
financial
institution’s
income
under
the
provisions
of
the
21
Internal
Revenue
Code,
such
tax
treatment
shall
be
disregarded
22
and
the
financial
institution
shall
compute
its
net
income
for
23
franchise
tax
purposes
in
the
same
manner
under
this
subsection
24
as
a
financial
institution
that
is
subject
to
or
liable
for
25
federal
income
tax
under
the
Internal
Revenue
Code
in
effect
26
for
the
applicable
year.
27
4.
“Taxable
year”
means
the
calendar
year
or
the
fiscal
year
28
ending
during
a
calendar
year,
for
which
the
tax
is
payable.
29
“Fiscal
year”
includes
a
tax
period
of
less
than
twelve
months
30
if,
under
the
Internal
Revenue
Code,
a
corporation
is
required
31
to
file
a
tax
return
or
internal
revenue
service
form
990
32
covering
a
tax
period
of
less
than
twelve
months.
33
Sec.
103.
Section
422.62,
Code
2018,
is
amended
to
read
as
34
follows:
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422.62
Due
and
delinquent
dates.
1
The
franchise
tax
is
due
and
payable
on
the
first
day
2
following
the
end
of
the
taxable
year
of
each
financial
3
institution,
and
for
a
financial
institution
that
is
exempt
4
from
the
federal
income
tax,
the
franchise
tax
is
delinquent
5
after
the
last
day
of
the
fifth
month
following
the
due
date.
6
For
all
other
financial
institutions,
the
franchise
tax
is
7
delinquent
after
the
last
day
of
the
fourth
month
following
the
8
due
date
or
forty-five
days
after
the
due
date
of
the
federal
9
tax
return,
excluding
extensions
of
time
to
file,
whichever
is
10
the
later.
Every
financial
institution
shall
file
a
return
as
11
prescribed
by
the
director
on
or
before
the
delinquency
date.
12
Sec.
104.
Section
422.63,
Code
2018,
is
amended
to
read
as
13
follows:
14
422.63
Amount
of
tax.
15
1.
The
franchise
tax
is
imposed
annually
in
an
amount
equal
16
to
five
percent
of
computed
by
applying
the
following
rates
17
of
taxation
to
the
net
income
received
or
accrued
during
the
18
taxable
year
:
19
a.
On
net
income
from
zero
to
seven
million
five
hundred
20
thousand
dollars,
two
percent
.
21
b.
On
net
income
exceeding
seven
million
five
hundred
22
thousand
dollars,
four
percent.
23
2.
If
the
net
income
of
the
financial
institution
is
derived
24
from
its
business
carried
on
entirely
within
the
state,
the
tax
25
in
subsection
1
shall
be
imposed
on
the
entire
net
income,
but
26
if
the
business
is
carried
on
partly
within
and
partly
without
27
the
state,
the
tax
in
subsection
1
shall
be
imposed
on
the
28
portion
of
net
income
reasonably
attributable
to
the
business
29
within
the
state
,
which
net
income
shall
be
specifically
30
allocated
or
equitably
apportioned
within
and
without
the
state
31
under
rules
of
the
director.
32
Sec.
105.
REPEAL.
Section
533.329,
Code
2018,
is
repealed.
33
Sec.
106.
PRESERVATION
OF
EXISTING
RIGHTS.
This
division
34
of
this
Act
is
not
intended
and
shall
not
limit,
modify,
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2383
or
otherwise
adversely
affect
any
tax
credit
or
tax
credit
1
certificate
issued,
awarded,
or
allowed
before
January
1,
2019,
2
nor
shall
it
limit,
modify,
or
otherwise
adversely
affect
3
a
taxpayer’s
right
to
claim
or
redeem
a
tax
credit
issued,
4
awarded,
or
allowed
before
January
1,
2019,
including
but
not
5
limited
to
any
tax
credit
carryforward
amount.
Any
amount
of
6
tax
credit
that
would
have
been
eligible
to
be
claimed
by
a
7
taxpayer
on
or
after
January
1,
2019,
against
the
moneys
and
8
credits
tax
imposed
in
section
533.329,
Code
2018,
shall
be
9
allowed
in
the
same
manner
and
to
the
same
extent
as
a
credit
10
against
the
franchise
tax
imposed
in
chapter
422,
division
V.
11
Sec.
107.
EFFECTIVE
DATE.
This
division
of
this
Act
takes
12
effect
January
1,
2019.
13
Sec.
108.
APPLICABILITY.
This
division
of
this
Act
applies
14
to
tax
years
beginning
on
or
after
January
1,
2019.
15
DIVISION
V
16
CHANGES
TO
IOWA
EDUCATIONAL
SAVINGS
PLAN
TRUST
AND
IOWA
ABLE
17
SAVINGS
PLAN
TRUST
18
Sec.
109.
Section
12D.1,
Code
2018,
is
amended
to
read
as
19
follows:
20
12D.1
Purpose
and
definitions.
21
1.
The
general
assembly
finds
that
the
general
welfare
and
22
well-being
of
the
state
are
directly
related
to
educational
23
levels
and
skills
of
the
citizens
of
the
state,
and
that
a
24
vital
and
valid
public
purpose
is
served
by
the
creation
and
25
implementation
of
programs
which
encourage
and
make
possible
26
the
attainment
of
higher
formal
education
by
the
greatest
27
number
of
citizens
of
the
state.
The
state
has
limited
28
resources
to
provide
additional
programs
for
higher
education
29
funding
and
the
continued
operation
and
maintenance
of
the
30
state’s
public
institutions
of
higher
education
and
the
general
31
welfare
of
the
citizens
of
the
state
will
be
enhanced
by
32
establishing
a
program
which
allows
citizens
of
the
state
to
33
invest
money
in
a
public
trust
for
future
application
to
the
34
payment
of
higher
education
costs
qualified
education
expenses
.
35
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The
creation
of
the
means
of
encouragement
for
citizens
to
1
invest
in
such
a
program
represents
the
carrying
out
of
a
2
vital
and
valid
public
purpose.
In
order
to
make
available
3
to
the
citizens
of
the
state
an
opportunity
to
fund
future
4
higher
formal
education
needs,
it
is
necessary
that
a
public
5
trust
be
established
in
which
moneys
may
be
invested
for
future
6
educational
use.
7
2.
As
used
in
this
chapter
,
unless
the
context
otherwise
8
requires:
9
a.
“Account
balance
limit”
means
the
maximum
allowable
10
aggregate
balance
of
accounts
established
for
the
same
11
beneficiary.
Account
earnings,
if
any,
are
included
in
the
12
account
balance
limit.
13
b.
“Administrative
fund”
means
the
administrative
fund
14
established
under
section
12D.4
.
15
c.
“Beneficiary”
means
the
individual
designated
by
a
16
participation
agreement
to
benefit
from
advance
payments
of
17
higher
education
costs
qualified
education
expenses
on
behalf
18
of
the
beneficiary.
19
d.
“Benefits”
means
the
payment
of
higher
education
costs
20
qualified
education
expenses
on
behalf
of
a
beneficiary
by
the
21
trust
during
the
beneficiary’s
attendance
at
an
institution
of
22
higher
education
a
qualified
educational
institution
.
23
e.
“Higher
education
costs”
means
the
same
as
“qualified
24
higher
education
expenses”
as
defined
in
section
529(e)(3)
of
25
the
Internal
Revenue
Code
.
26
f.
e.
“Institution
of
higher
education”
means
an
institution
27
described
in
section
481
of
the
federal
Higher
Education
Act
of
28
1965,
20
U.S.C.
§1088,
which
is
eligible
to
participate
in
the
29
United
States
department
of
education’s
student
aid
programs.
30
g.
f.
“Internal
Revenue
Code”
means
the
same
as
defined
31
in
section
12I.1
.
32
h.
g.
“Iowa
educational
savings
plan
trust”
or
“trust”
means
33
the
trust
created
under
section
12D.2
.
34
i.
h.
“Participant”
means
an
individual,
individual’s
legal
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S.F.
2383
representative,
trust,
estate,
or
an
organization
described
1
in
section
501(c)(3)
of
the
Internal
Revenue
Code
and
exempt
2
from
taxation
under
section
501(a)
of
the
Internal
Revenue
3
Code,
that
has
entered
into
a
participation
agreement
under
4
this
chapter
for
the
advance
payment
of
higher
education
costs
5
qualified
education
expenses
on
behalf
of
a
beneficiary.
6
j.
i.
“Participation
agreement”
means
an
agreement
between
7
a
participant
and
the
trust
entered
into
under
this
chapter
.
8
k.
j.
“Program
fund”
means
the
program
fund
established
9
under
section
12D.4
.
10
k.
“Qualified
education
expenses”
means
the
same
as
11
“qualified
higher
education
expenses”
as
defined
in
section
12
529(e)(3)
of
the
Internal
Revenue
Code,
as
amended
by
Pub.
L.
13
No.
115-97,
and
shall
include
elementary
and
secondary
school
14
expenses
for
tuition
described
in
section
529(c)(7)
of
the
15
Internal
Revenue
Code,
subject
to
the
limitations
imposed
by
16
section
529(e)(3)(A)
of
the
Internal
Revenue
Code.
17
l.
“Qualified
educational
institution”
means
an
institution
18
of
higher
education,
or
any
elementary
or
secondary
public,
19
private,
or
religious
school
described
in
section
529(c)(7)
of
20
the
Internal
Revenue
Code.
21
l.
m.
“Tuition
and
fees”
“Tuition”
means
the
quarter
,
or
22
semester
,
or
annual
charges
imposed
to
attend
an
institution
23
of
higher
education
a
qualified
educational
institution
and
24
required
as
a
condition
of
enrollment
or
attendance
.
25
Sec.
110.
Section
12D.2,
subsections
2,
5,
9,
and
14,
Code
26
2018,
are
amended
to
read
as
follows:
27
2.
Enter
into
agreements
with
any
institution
of
higher
28
education
qualified
educational
institution
,
the
state,
or
any
29
federal
or
other
state
agency,
or
other
entity
as
required
to
30
implement
this
chapter
.
31
5.
Carry
out
studies
and
projections
so
the
treasurer
of
32
state
may
advise
participants
regarding
present
and
estimated
33
future
higher
education
costs
qualified
education
expenses
34
and
levels
of
financial
participation
in
the
trust
required
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in
order
to
enable
participants
to
achieve
their
educational
1
funding
objectives.
2
9.
Make
payments
to
institutions
of
higher
education
3
qualified
educational
institutions
,
participants,
or
4
beneficiaries,
pursuant
to
participation
agreements
on
behalf
5
of
beneficiaries.
6
14.
Establish,
impose,
and
collect
administrative
fees
7
and
charges
in
connection
with
transactions
of
the
trust,
and
8
provide
for
reasonable
service
charges
,
including
penalties
for
9
cancellations
and
late
payments
with
respect
to
participation
10
agreements
.
11
Sec.
111.
Section
12D.3,
subsections
1
and
2,
Code
2018,
are
12
amended
to
read
as
follows:
13
1.
a.
Each
participation
agreement
may
require
a
14
participant
to
agree
to
invest
a
specific
amount
of
money
in
15
the
trust
for
a
specific
period
of
time
for
the
benefit
of
a
16
specific
beneficiary.
A
participant
shall
not
be
required
to
17
make
an
annual
contribution
on
behalf
of
a
beneficiary.
The
18
maximum
contribution
that
may
be
deducted
for
Iowa
income
tax
19
purposes
shall
not
exceed
two
thousand
dollars
per
beneficiary
20
per
year
adjusted
annually
to
reflect
increases
in
the
consumer
21
price
index.
The
treasurer
of
state
shall
set
an
account
22
balance
limit
to
maintain
compliance
with
section
529
of
the
23
Internal
Revenue
Code.
A
contribution
shall
not
be
permitted
24
to
the
extent
it
causes
the
aggregate
balance
of
all
accounts
25
established
for
the
same
beneficiary
under
the
trust
to
exceed
26
the
applicable
account
balance
limit.
27
b.
Participation
agreements
may
be
amended
to
provide
for
28
adjusted
levels
of
payments
based
upon
changed
circumstances
or
29
changes
in
educational
plans.
30
2.
The
execution
of
a
participation
agreement
by
the
trust
31
shall
not
guarantee
in
any
way
that
higher
education
costs
32
qualified
education
expenses
will
be
equal
to
projections
33
and
estimates
provided
by
the
trust
or
that
the
beneficiary
34
named
in
any
participation
agreement
will
attain
any
of
the
35
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following:
1
a.
Be
admitted
to
an
institution
of
higher
education
a
2
qualified
educational
institution
.
3
b.
If
admitted,
be
determined
a
resident
for
tuition
4
purposes
by
the
institution
of
higher
education
qualified
5
educational
institution
.
6
c.
Be
allowed
to
continue
attendance
at
the
institution
of
7
higher
education
qualified
educational
institution
following
8
admission.
9
d.
Graduate
from
the
institution
of
higher
education
10
qualified
educational
institution
.
11
Sec.
112.
Section
12D.3,
Code
2018,
is
amended
by
adding
the
12
following
new
subsection:
13
NEW
SUBSECTION
.
5.
A
participant
may
designate
a
successor
14
in
accordance
with
rules
adopted
by
the
treasurer
of
state.
15
The
designated
successor
shall
succeed
to
the
ownership
of
the
16
account
in
the
event
of
the
death
of
the
participant.
In
the
17
event
a
participant
dies
and
has
not
designated
a
successor
to
18
the
account,
the
following
criteria
shall
apply:
19
a.
The
beneficiary
of
the
account,
if
eighteen
years
of
20
age
or
older,
shall
become
the
owner
of
the
account
as
well
as
21
remain
the
beneficiary
upon
filing
the
appropriate
forms
in
22
accordance
with
rules
adopted
by
the
treasurer
of
state.
23
b.
If
the
beneficiary
of
the
account
is
under
the
age
of
24
eighteen,
account
ownership
shall
be
transferred
to
the
first
25
surviving
parent
or
other
legal
guardian
of
the
beneficiary
to
26
file
the
appropriate
forms
in
accordance
with
rules
adopted
by
27
the
treasurer
of
state.
28
Sec.
113.
Section
12D.4,
Code
2018,
is
amended
to
read
as
29
follows:
30
12D.4
Program
and
administrative
funds
——
investment
and
31
payments.
32
1.
a.
The
treasurer
of
state
shall
segregate
moneys
33
received
by
the
trust
into
two
funds:
the
program
fund
and
the
34
administrative
fund.
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b.
All
moneys
paid
by
participants
in
connection
with
1
participation
agreements
shall
be
deposited
as
received
into
2
separate
accounts
within
the
program
fund.
3
c.
Contributions
to
the
trust
made
by
participants
may
only
4
be
made
in
the
form
of
cash.
5
d.
A
participant
or
beneficiary
shall
not
provide
investment
6
direction
regarding
program
contributions
or
earnings
held
by
7
the
trust
may,
directly
or
indirectly,
direct
the
investment
of
8
any
contributions
to
the
trust
or
any
earnings
thereon
no
more
9
than
two
times
in
a
calendar
year
.
10
e.
The
amount
of
cash
distributions
from
the
trust
and
all
11
other
qualified
state
tuition
programs
under
section
529
of
12
the
Internal
Revenue
Code
to
a
beneficiary
during
any
taxable
13
year
shall,
in
the
aggregate,
include
no
more
than
ten
thousand
14
dollars
in
expenses
for
tuition
in
connection
with
enrollment
15
at
an
elementary
or
secondary
public,
private,
or
religious
16
school
incurred
during
the
taxable
year.
17
2.
Moneys
accrued
by
participants
in
the
program
fund
of
18
the
trust
may
be
used
for
payments
to
any
institution
of
higher
19
education
qualified
educational
institution
.
Payments
can
be
20
made
to
the
qualified
educational
institution,
the
participant,
21
or
the
beneficiary.
22
Sec.
114.
Section
12D.6,
subsection
1,
paragraph
a,
Code
23
2018,
is
amended
to
read
as
follows:
24
a.
A
participant
retains
ownership
of
all
payments
made
25
under
a
participation
agreement
up
to
the
date
of
utilization
26
for
payment
of
higher
education
costs
qualified
education
27
expenses
for
the
beneficiary.
28
Sec.
115.
Section
12D.6,
subsections
2,
3,
and
5,
Code
2018,
29
are
amended
to
read
as
follows:
30
2.
In
the
event
the
program
is
terminated
prior
to
payment
31
of
higher
education
costs
qualified
education
expenses
for
the
32
beneficiary,
the
participant
is
entitled
to
a
refund
of
the
33
participant’s
account
balance.
34
3.
The
institution
of
higher
education
qualified
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2383
educational
institution
shall
obtain
ownership
of
the
payments
1
made
for
the
higher
education
costs
qualified
education
2
expenses
paid
to
the
institution
at
the
time
each
payment
is
3
made
to
the
institution.
4
5.
A
participant
may
transfer
ownership
rights
to
another
5
eligible
individual,
including
a
gift
of
the
ownership
rights
6
to
a
minor
beneficiary
participant,
or
may
transfer
funds
to
7
another
plan
under
the
trust
or
to
an
ABLE
account
as
permitted
8
under
section
529(c)(3)(C)
of
the
Internal
Revenue
Code
.
9
The
transfer
shall
be
made
and
the
property
distributed
in
10
accordance
with
rules
adopted
by
the
treasurer
of
state
or
with
11
the
terms
of
the
participation
agreement.
12
Sec.
116.
Section
12D.7,
Code
2018,
is
amended
to
read
as
13
follows:
14
12D.7
Effect
of
payments
on
determination
of
need
and
15
eligibility
for
student
financial
aid.
16
A
student
loan
program,
student
grant
program,
or
other
17
program
administered
by
any
agency
of
the
state,
except
as
18
may
be
otherwise
provided
by
federal
law
or
the
provisions
19
of
any
specific
grant
applicable
to
that
law,
shall
not
take
20
into
account
and
shall
not
consider
amounts
available
for
21
the
payment
of
higher
education
costs
qualified
education
22
expenses
pursuant
to
the
Iowa
educational
savings
plan
trust
in
23
determining
need
and
eligibility
for
student
aid.
24
Sec.
117.
Section
12D.9,
subsection
1,
paragraph
a,
Code
25
2018,
is
amended
to
read
as
follows:
26
a.
Pursuant
to
section
12D.3,
subsection
1
,
paragraph
“a”
,
27
a
participant
may
make
contributions
to
an
account
which
is
28
established
for
the
purpose
of
meeting
the
qualified
higher
29
education
expenses
of
the
designated
beneficiary
of
the
30
account.
31
Sec.
118.
Section
422.7,
subsection
32,
paragraph
c,
Code
32
2018,
is
amended
by
striking
the
paragraph
and
inserting
in
33
lieu
thereof
the
following:
34
c.
(1)
Add,
to
the
extent
previously
deducted
as
a
35
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2383
contribution
to
the
trust,
the
amount
resulting
from
a
1
withdrawal
or
transfer
made
by
the
taxpayer
from
the
Iowa
2
educational
savings
plan
trust
for
purposes
other
than
any
of
3
the
following:
4
(a)
The
payment
of
qualified
higher
education
expenses.
5
(b)
The
payment
of
tuition
to
an
elementary
or
secondary
6
school
if
the
tuition
amounts
are
qualified
education
expenses.
7
(c)
A
change
in
beneficiaries
under,
or
transfer
to
another
8
account
within,
the
Iowa
educational
savings
plan
trust,
or
a
9
transfer
to
the
Iowa
ABLE
savings
plan
trust,
provided
such
10
change
or
transfer
is
permitted
under
section
12D.6,
subsection
11
5.
12
(2)
For
purposes
of
this
paragraph:
13
(a)
“Elementary
or
secondary
school”
means
an
elementary
14
or
secondary
school
in
this
state
which
is
accredited
under
15
section
256.11,
and
adheres
to
the
provisions
of
the
federal
16
Civil
Rights
Act
of
1964
and
chapter
216.
17
(b)
“Institution
of
higher
education”
,
“qualified
education
18
expenses”
,
and
“tuition”
all
mean
the
same
as
defined
in
section
19
12D.1,
subsection
2.
20
(c)
(i)
“Qualified
higher
education
expenses”
means
the
same
21
as
defined
in
section
529(e)(3)
of
the
Internal
Revenue
Code.
22
(ii)
For
purposes
of
this
subparagraph
division
(c),
23
“Internal
Revenue
Code”
means
the
Internal
Revenue
Code
of
24
1954,
prior
to
the
date
of
its
redesignation
as
the
Internal
25
Revenue
Code
of
1986
by
the
Tax
Reform
Act
of
1986,
or
means
26
the
Internal
Revenue
Code
of
1986
as
amended
and
in
effect
on
27
January
1,
2018.
This
definition
shall
not
be
construed
to
28
include
any
amendment
to
the
Internal
Revenue
Code
enacted
29
after
the
date
specified
in
the
preceding
sentence,
including
30
any
amendment
with
retroactive
applicability
or
effectiveness.
31
Sec.
119.
Section
422.7,
subsection
34,
Code
2018,
is
32
amended
to
read
as
follows:
33
34.
a.
(1)
Subtract
the
amount
contributed
during
the
tax
34
year
on
behalf
of
a
designated
beneficiary
that
is
a
resident
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of
this
state
to
the
Iowa
ABLE
savings
plan
trust
or
to
the
1
qualified
ABLE
program
with
which
the
state
has
contracted
2
pursuant
to
section
12I.10
,
not
to
exceed
the
maximum
3
contribution
level
established
in
section
12I.3,
subsection
1
,
4
paragraph
“d”
,
or
section
12I.10,
subsection
2
,
paragraph
“a”
,
5
as
applicable.
6
(2)
This
paragraph
“a”
shall
not
apply
to
any
amount
7
of
contribution
that
represents
a
transfer
from
the
Iowa
8
educational
savings
plan
trust
created
in
chapter
12D
that
9
meets
the
requirements
of
subsection
32,
paragraph
“c”
,
10
subparagraph
(1),
subparagraph
division
(c),
and
that
was
11
previously
deducted
as
a
contribution
to
the
Iowa
educational
12
savings
plan
trust.
13
b.
Add
the
amount
resulting
from
the
cancellation
of
a
14
participation
agreement
refunded
to
the
taxpayer
as
an
account
15
owner
in
the
Iowa
ABLE
savings
plan
trust
or
the
qualified
16
ABLE
program
with
which
the
state
has
contracted
pursuant
to
17
section
12I.10
to
the
extent
previously
deducted
pursuant
18
to
this
subsection
by
the
taxpayer
or
any
other
person
as
a
19
contribution
to
the
trust
or
qualified
ABLE
program
,
or
to
the
20
extent
the
amount
was
previously
deducted
by
the
taxpayer
or
21
any
other
person
pursuant
to
subsection
32,
paragraph
“a”
,
and
22
qualified
as
a
transfer
under
paragraph
“a”
,
subparagraph
(2),
23
of
this
subsection
.
24
c.
Add
the
amount
resulting
from
a
withdrawal
made
by
a
25
taxpayer
from
the
Iowa
ABLE
savings
plan
trust
or
the
qualified
26
ABLE
program
with
which
the
state
has
contracted
pursuant
to
27
section
12I.10
for
purposes
other
than
the
payment
of
qualified
28
disability
expenses
to
the
extent
previously
deducted
pursuant
29
to
this
subsection
by
the
taxpayer
or
any
other
person
as
a
30
contribution
to
the
trust
or
qualified
ABLE
program
,
or
to
the
31
extent
the
amount
was
previously
deducted
by
the
taxpayer
or
32
any
other
person
pursuant
to
subsection
32,
paragraph
“a”
,
and
33
qualified
as
a
transfer
under
paragraph
“a”
,
subparagraph
(2),
34
of
this
subsection
.
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Sec.
120.
Section
627.6,
Code
2018,
is
amended
by
adding
the
1
following
new
subsection:
2
NEW
SUBSECTION
.
17.
The
debtor’s
interest,
whether
as
3
participant
or
beneficiary,
in
contributions
and
assets,
4
including
the
accumulated
earnings
and
market
increases
in
5
value,
held
in
an
account
in
the
Iowa
educational
savings
plan
6
trust
organized
under
chapter
12D.
7
Sec.
121.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
8
deemed
of
immediate
importance,
takes
effect
upon
enactment.
9
Sec.
122.
RETROACTIVE
APPLICABILITY.
10
1.
Except
as
provided
in
subsection
2,
this
division
of
this
11
Act
applies
retroactively
to
January
1,
2018,
for
withdrawals
12
from
the
Iowa
educational
savings
plan
trust
made
on
or
after
13
that
date.
14
2.
The
sections
of
this
division
of
this
Act
amending
15
section
422.7
apply
retroactively
to
January
1,
2018,
for
tax
16
years
beginning
on
or
after
that
date,
and
for
withdrawals
from
17
the
Iowa
educational
savings
plan
trust
made
on
or
after
that
18
date.
19
DIVISION
VI
20
SALES
AND
USE
TAXES
21
Sec.
123.
Section
15J.4,
subsection
3,
paragraph
f,
Code
22
2018,
is
amended
to
read
as
follows:
23
f.
The
total
aggregate
amount
of
state
sales
tax
revenues
24
and
state
hotel
and
motel
tax
revenues
that
may
be
approved
by
25
the
board
for
remittance
to
all
municipalities
and
that
may
26
be
transferred
to
the
state
reinvestment
district
fund
under
27
section
423.2,
subsection
11
,
423.2A
or
section
423A.6
,
and
28
remitted
to
all
municipalities
having
a
reinvestment
district
29
under
this
chapter
shall
not
exceed
one
hundred
million
30
dollars.
31
Sec.
124.
Section
15J.5,
subsection
1,
paragraph
a,
Code
32
2018,
is
amended
to
read
as
follows:
33
a.
The
department
shall
calculate
quarterly
the
amount
of
34
new
state
sales
tax
revenues
for
each
district
established
in
35
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the
state
to
be
deposited
in
the
state
reinvestment
district
1
fund
created
in
section
15J.6
,
pursuant
to
section
423.2,
2
subsection
11
,
paragraph
“b”
423.2A,
subsection
2
,
subject
to
3
remittance
limitations
established
by
the
board
pursuant
to
4
section
15J.4,
subsection
3
.
5
Sec.
125.
Section
15J.6,
subsection
1,
Code
2018,
is
amended
6
to
read
as
follows:
7
1.
A
state
reinvestment
district
fund
is
established
in
the
8
state
treasury
under
the
control
of
the
department
consisting
9
of
the
new
state
sales
tax
revenues
collected
within
each
10
district
and
deposited
in
the
fund
pursuant
to
section
423.2,
11
subsection
11
,
paragraph
“b”
423.2A,
subsection
2
,
and
the
12
new
state
hotel
and
motel
tax
revenues
collected
within
each
13
district
and
deposited
in
the
fund
pursuant
to
section
423A.6
.
14
Moneys
deposited
in
the
fund
are
appropriated
to
the
department
15
for
the
purposes
of
this
section
.
Moneys
in
the
fund
shall
16
only
be
used
for
the
purposes
of
this
section
.
17
Sec.
126.
Section
418.11,
subsection
1,
Code
2018,
is
18
amended
to
read
as
follows:
19
1.
The
department
of
revenue
shall
calculate
quarterly
the
20
amount
of
increased
sales
tax
revenues
for
each
governmental
21
entity
approved
to
use
sales
tax
increment
revenues
and
the
22
amount
of
such
revenues
to
be
transferred
to
the
sales
tax
23
increment
fund
pursuant
to
section
423.2,
subsection
11
,
24
paragraph
“b”
423.2A,
subsection
2
.
25
Sec.
127.
Section
418.12,
subsection
1,
Code
2018,
is
26
amended
to
read
as
follows:
27
1.
A
sales
tax
increment
fund
is
established
as
a
separate
28
and
distinct
fund
in
the
state
treasury
under
the
control
of
29
the
department
of
revenue
consisting
of
the
amount
of
the
30
increased
state
sales
and
services
tax
revenues
collected
by
31
the
department
of
revenue
within
each
applicable
area
specified
32
in
section
418.11,
subsection
3
,
and
deposited
in
the
fund
33
pursuant
to
section
423.2,
subsection
11
,
paragraph
“b”
423.2A,
34
subsection
2
.
Moneys
deposited
in
the
fund
are
appropriated
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to
the
department
of
revenue
for
the
purposes
of
this
section
.
1
Moneys
in
the
fund
shall
only
be
used
for
the
purposes
of
this
2
section
.
3
Sec.
128.
Section
421.26,
Code
2018,
is
amended
to
read
as
4
follows:
5
421.26
Personal
liability
for
tax
due.
6
If
a
licensee
or
other
person
under
section
452A.65
,
a
7
retailer
or
purchaser
under
chapter
423A
,
423B
,
or
423E
,
or
8
section
sections
423.14,
423.14A,
423.29,
423.31
,
423.32,
or
9
423.33
,
or
a
retailer
or
purchaser
under
section
423.32
,
or
10
a
user
under
section
423.34
,
or
a
permit
holder
or
licensee
11
under
section
453A.13
,
453A.16
,
or
453A.44
fails
to
pay
a
tax
12
under
those
sections
when
due,
an
officer
of
a
corporation
13
or
association,
notwithstanding
section
489.304
,
a
member
or
14
manager
of
a
limited
liability
company,
or
a
partner
of
a
15
partnership,
having
control
or
supervision
of
or
the
authority
16
for
remitting
the
tax
payments
and
having
a
substantial
legal
17
or
equitable
interest
in
the
ownership
of
the
corporation,
18
association,
limited
liability
company,
or
partnership,
who
has
19
intentionally
failed
to
pay
the
tax
is
personally
liable
for
20
the
payment
of
the
tax,
interest,
and
penalty
due
and
unpaid.
21
However,
this
section
shall
not
apply
to
taxes
on
accounts
22
receivable.
The
dissolution
of
a
corporation,
association,
23
limited
liability
company,
or
partnership
shall
not
discharge
a
24
person’s
liability
for
failure
to
remit
the
tax
due.
25
Sec.
129.
Section
423.1,
subsection
5,
Code
2018,
is
amended
26
to
read
as
follows:
27
5.
“Agricultural
production”
includes
means
the
commercial
28
production
of
livestock,
milk,
honey,
eggs,
or
plants,
29
including
but
not
limited
to
flowering,
ornamental,
or
30
vegetable
plants
in
commercial
greenhouses
or
otherwise,
31
and
commercial
production
from
aquaculture,
and
commercial
32
production
from
silvicultural
activities.
“Agricultural
33
products”
includes
flowering,
ornamental,
or
vegetable
plants
34
and
those
products
of
aquaculture
and
silviculture.
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Sec.
130.
Section
423.1,
subsection
24,
paragraph
a,
Code
1
2018,
is
amended
to
read
as
follows:
2
a.
“Lease
or
rental”
means
any
transfer
of
possession
or
3
control
of
,
or
access
to,
tangible
personal
property
for
a
4
fixed
or
indeterminate
term
for
consideration.
A
“lease
or
5
rental”
may
include
future
options
to
purchase
or
extend.
6
Sec.
131.
Section
423.1,
subsection
37,
Code
2018,
is
7
amended
to
read
as
follows:
8
37.
“Place
of
business”
means
any
warehouse,
store,
9
place,
office,
building,
or
structure
where
goods,
wares,
or
10
merchandise
tangible
personal
property
or
services
are
offered
11
for
sale
at
retail
or
where
any
taxable
amusement
is
conducted,
12
or
each
office
where
gas,
water,
heat,
communication,
or
13
electric
services
are
offered
for
sale
at
retail.
When
a
14
retailer
or
amusement
operator
sells
merchandise
by
means
of
15
vending
machines
or
operates
music
or
amusement
devices
by
16
coin-operated
machines
at
more
than
one
location
within
the
17
state,
the
office,
building,
or
place
where
the
books,
papers,
18
and
records
of
the
taxpayer
are
kept
shall
be
deemed
to
be
the
19
taxpayer’s
place
of
business.
20
Sec.
132.
Section
423.1,
subsection
47,
Code
2018,
is
21
amended
to
read
as
follows:
22
47.
“Retailer”
means
and
includes
every
person
engaged
in
23
the
business
of
selling
tangible
personal
property
or
taxable
24
services
at
retail,
or
the
furnishing
of
gas,
electricity,
25
water,
or
communication
service,
and
tickets
or
admissions
to
26
places
of
amusement
and
athletic
events
or
operating
amusement
27
devices
or
other
forms
of
commercial
amusement
from
which
28
revenues
are
derived.
However,
when
in
the
opinion
of
the
29
director
it
is
necessary
for
the
efficient
administration
of
30
this
chapter
to
regard
any
salespersons,
representatives,
31
truckers,
peddlers,
or
canvassers
as
agents
of
the
dealers,
32
distributors,
supervisors,
employers,
or
persons
under
whom
33
they
operate
or
from
whom
they
obtain
tangible
personal
34
property
or
services
sold
by
them
irrespective
of
whether
or
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not
they
are
making
sales
on
their
own
behalf
or
on
behalf
of
1
such
dealers,
distributors,
supervisors,
employers,
or
persons,
2
the
director
may
so
regard
them,
and
may
regard
such
dealers,
3
distributors,
supervisors,
employers,
or
persons
as
retailers
4
for
the
purposes
of
this
chapter
.
“Retailer”
includes
a
seller
5
obligated
to
collect
sales
or
use
tax
,
including
any
person
6
obligated
to
collect
sales
and
use
tax
pursuant
to
section
7
423.14A
.
8
Sec.
133.
Section
423.1,
subsection
48,
paragraph
a,
Code
9
2018,
is
amended
to
read
as
follows:
10
a.
“Retailer
maintaining
a
place
of
business
in
this
state”
11
or
any
like
term
includes
any
of
the
following:
12
(1)
A
retailer
having
or
maintaining
within
this
state,
13
directly
or
by
a
subsidiary,
an
office,
distribution
house,
14
sales
house,
warehouse,
or
other
place
of
business,
or
any
15
representative
operating
within
this
state
under
the
authority
16
of
the
retailer
or
its
subsidiary,
irrespective
of
whether
that
17
place
of
business
or
representative
is
located
here
permanently
18
or
temporarily,
or
whether
the
retailer
or
subsidiary
is
19
admitted
to
do
business
within
this
state
pursuant
to
chapter
20
490
.
21
(2)
A
person
obligated
to
collect
sales
and
use
tax
pursuant
22
to
section
423.14A.
23
Sec.
134.
Section
423.1,
subsection
48,
paragraph
b,
24
subparagraph
(1),
unnumbered
paragraph
1,
Code
2018,
is
amended
25
to
read
as
follows:
26
A
retailer
shall
be
presumed
to
be
maintaining
a
place
of
27
business
in
this
state
,
as
defined
in
for
purposes
of
paragraph
28
“a”
,
subparagraph
(1),
if
any
person
that
has
substantial
nexus
29
in
this
state,
other
than
a
person
acting
in
its
capacity
as
a
30
common
carrier,
does
any
of
the
following:
31
Sec.
135.
Section
423.1,
subsection
48,
paragraph
b,
32
subparagraph
(1),
subparagraph
division
(b),
Code
2018,
is
33
amended
to
read
as
follows:
34
(b)
Maintains
an
office,
distribution
facility,
warehouse,
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storage
place,
or
similar
place
of
business
in
this
state
to
1
facilitate
the
delivery
of
personal
property
or
services
sold
2
by
the
retailer
to
the
retailer’s
customers.
3
Sec.
136.
Section
423.1,
subsection
50,
Code
2018,
is
4
amended
to
read
as
follows:
5
50.
“Sales”
or
“sale”
means
any
transfer,
exchange,
or
6
barter,
conditional
or
otherwise,
in
any
manner
or
by
any
means
7
whatsoever,
for
consideration
,
including
but
not
limited
to
any
8
such
transfer,
exchange,
or
barter
on
a
subscription
basis
.
9
Sec.
137.
Section
423.1,
Code
2018,
is
amended
by
adding
the
10
following
new
subsection:
11
NEW
SUBSECTION
.
55A.
“Sold
at
retail
in
the
state”
and
12
other
references
to
sales
“in
the
state”
or
“in
this
state”
13
includes
but
is
not
limited
to
sales
sourced
to
this
state
14
under
this
chapter.
15
Sec.
138.
Section
423.1,
Code
2018,
is
amended
by
adding
the
16
following
new
subsection:
17
NEW
SUBSECTION
.
57A.
“Subscription”
means
any
arrangement
18
in
which
a
person
has
the
right
or
ability
to
access,
receive,
19
use,
obtain,
purchase,
or
otherwise
acquire
tangible
personal
20
property
or
services
on
a
permanent
or
less
than
permanent
21
basis,
regardless
of
whether
the
person
actually
accesses,
22
receives,
uses,
obtains,
purchases,
or
otherwise
acquires
such
23
tangible
personal
property
or
service.
24
Sec.
139.
Section
423.1,
subsections
62,
63,
and
64,
Code
25
2018,
are
amended
to
read
as
follows:
26
62.
“Use”
means
and
includes
the
exercise
by
any
person
of
27
any
right
or
power
over
or
access
to
tangible
personal
property
28
incident
to
the
ownership
of
that
property
,
or
any
right
or
29
power
over
or
access
to
the
product
or
result
of
a
service
.
30
A
retailer’s
or
building
contractor’s
sale
of
manufactured
31
housing
for
use
in
this
state,
whether
in
the
form
of
tangible
32
personal
property
or
of
realty,
is
a
use
of
that
property
for
33
the
purposes
of
this
chapter
.
34
63.
“Use
tax”
means
the
tax
levied
under
subchapter
III
of
35
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this
chapter
for
which
the
retailer
collects
and
remits
tax
to
1
the
department
.
2
64.
“User”
means
the
immediate
recipient
of
the
personal
3
property
or
services
who
is
entitled
to
exercise
a
right
of
or
4
power
over
or
access
to
the
personal
property,
or
the
product
5
or
result
of
such
services.
6
Sec.
140.
Section
423.2,
subsection
1,
paragraph
a,
7
subparagraph
(1),
Code
2018,
is
amended
to
read
as
follows:
8
(1)
Sales
of
engraving,
photography,
retouching,
printing,
9
and
binding
services.
10
Sec.
141.
Section
423.2,
subsection
6,
Code
2018,
is
amended
11
to
read
as
follows:
12
6.
a.
The
sales
price
of
any
of
the
following
enumerated
13
services
is
subject
to
the
tax
imposed
by
subsection
5
:
14
a.
alteration
Alteration
and
garment
repair
;
armored
.
15
b.
Armored
car
;
vehicle
.
16
c.
Vehicle
repair
;
battery
.
17
d.
Battery
,
tire,
and
allied
;
investment
.
18
e.
Investment
counseling
;
service
.
19
f.
Service
charges
of
all
financial
institutions
;
barber
.
20
For
the
purposes
of
this
paragraph,
“financial
institutions”
21
means
all
national
banks,
federally
chartered
savings
and
loan
22
associations,
federally
chartered
savings
banks,
federally
23
chartered
credit
unions,
banks
organized
under
chapter
524,
24
credit
unions
organized
under
chapter
533,
and
all
banks,
25
savings
banks,
credit
unions,
and
savings
and
loan
associations
26
chartered
or
otherwise
created
under
the
laws
of
any
state
and
27
doing
business
in
Iowa.
28
g.
Barber
and
beauty
;
boat
.
29
h.
Boat
repair
;
vehicle
.
30
i.
Vehicle
wash
and
wax
;
campgrounds;
carpentry;
roof
.
31
j.
Campgrounds.
32
k.
Carpentry.
33
l.
Roof
,
shingle,
and
glass
repair
;
dance
.
34
m.
Dance
schools
and
dance
studios
;
dating
.
35
-59-
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2383
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S.F.
2383
n.
Dating
services
;
dry
.
1
o.
Dry
cleaning,
pressing,
dyeing,
and
laundering
excluding
2
the
use
of
self-pay
washers
and
dryers
;
electrical
.
3
p.
Electrical
and
electronic
repair
and
installation
;
4
excavating
.
5
q.
Excavating
and
grading
;
farm
.
6
r.
Farm
implement
repair
of
all
kinds
;
flying
.
7
s.
Flying
service
;
furniture
.
8
t.
Furniture
,
rug,
carpet,
and
upholstery
repair
and
9
cleaning
;
fur
.
10
u.
Fur
storage
and
repair
;
golf
.
11
v.
Golf
and
country
clubs
and
all
commercial
recreation
;
12
gun
.
13
w.
Gun
and
camera
repair
;
house
.
14
x.
House
and
building
moving
;
household
.
15
y.
Household
appliance,
television,
and
radio
repair
;
16
janitorial
.
17
z.
Janitorial
and
building
maintenance
or
cleaning
;
jewelry
.
18
aa.
Jewelry
and
watch
repair
;
lawn
.
19
ab.
Lawn
care,
landscaping,
and
tree
trimming
and
removal
;
.
20
ac.
Personal
transportation
service,
including
but
not
21
limited
to
taxis,
driver
service,
ride
sharing
service,
rides
22
for
hire,
and
limousine
service
,
including
driver;
machine
.
23
ad.
Machine
operator
;
machine
.
24
ae.
Machine
repair
of
all
kinds
;
motor
.
25
af.
Motor
repair
;
motorcycle
.
26
ag.
Motorcycle
,
scooter,
and
bicycle
repair
;
oilers
.
27
ah.
Oilers
and
lubricators
;
office
.
28
ai.
Office
and
business
machine
repair
;
painting
.
29
aj.
Painting
,
papering,
and
interior
decorating
;
parking
.
30
ak.
Parking
facilities
;
pay
.
31
al.
Pay
television
;
pet
.
>
32
am.
Pet
grooming
;
pipe
.
33
an.
Pipe
fitting
and
plumbing
;
wood
.
34
ao.
Wood
preparation
;
executive
.
35
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2383
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99
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2383
ap.
Executive
search
agencies
;
private
.
1
aq.
Private
employment
agencies,
excluding
services
for
2
placing
a
person
in
employment
where
the
principal
place
of
3
employment
of
that
person
is
to
be
located
outside
of
the
4
state
;
reflexology;
security
.
5
ar.
Reflexology.
6
as.
Security
and
detective
services,
excluding
private
7
security
and
detective
services
furnished
by
a
peace
officer
8
with
the
knowledge
and
consent
of
the
chief
executive
officer
9
of
the
peace
officer’s
law
enforcement
agency
;
sewage
.
10
at.
Sewage
services
for
nonresidential
commercial
11
operations
;
sewing
.
12
au.
Sewing
and
stitching
;
shoe
.
13
av.
Shoe
repair
and
shoeshine
;
sign
.
14
aw.
Sign
construction
and
installation
;
storage
.
15
ax.
Storage
of
household
goods,
mini-storage,
and
16
warehousing
of
raw
agricultural
products
;
swimming
.
17
ay.
Swimming
pool
cleaning
and
maintenance
;
tanning
.
18
az.
Tanning
beds
or
salons
;
taxidermy
.
19
ba.
Taxidermy
services
;
telephone
.
20
bb.
Telephone
answering
service
;
test
.
21
bc.
Test
laboratories,
including
mobile
testing
laboratories
22
and
field
testing
by
testing
laboratories,
and
excluding
tests
23
on
humans
or
animals
and
excluding
environmental
testing
24
services
;
termite
.
25
bd.
Termite
,
bug,
roach,
and
pest
eradicators
;
tin
.
26
be.
Tin
and
sheet
metal
repair
;
transportation
.
27
bf.
Transportation
service
consisting
of
the
rental
of
28
recreational
vehicles
or
recreational
boats,
or
the
rental
of
29
vehicles
subject
to
registration
which
are
registered
for
a
30
gross
weight
of
thirteen
tons
or
less
for
a
period
of
sixty
31
days
or
less,
or
the
rental
of
aircraft
for
a
period
of
sixty
32
days
or
less
;
.
33
bg.
Turkish
baths,
massage,
and
reducing
salons,
excluding
34
services
provided
by
massage
therapists
licensed
under
chapter
35
-61-
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2383
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2383
152C
;
water
.
1
bh.
Water
conditioning
and
softening
;
weighing;
welding;
2
well
.
3
bi.
Weighing.
4
bj.
Welding.
5
bk.
Well
drilling
;
wrapping
.
6
bl.
Wrapping
,
packing,
and
packaging
of
merchandise
other
7
than
processed
meat,
fish,
fowl,
and
vegetables
;
wrecking
.
8
bm.
Wrecking
service
;
wrecker
.
9
bn.
Wrecker
and
towing.
10
b.
For
the
purposes
of
this
subsection
,
“financial
11
institutions”
means
all
national
banks,
federally
chartered
12
savings
and
loan
associations,
federally
chartered
savings
13
banks,
federally
chartered
credit
unions,
banks
organized
under
14
chapter
524
,
credit
unions
organized
under
chapter
533
,
and
15
all
banks,
savings
banks,
credit
unions,
and
savings
and
loan
16
associations
chartered
or
otherwise
created
under
the
laws
of
17
any
state
and
doing
business
in
Iowa.
18
bo.
Photography.
19
bp.
Retouching.
20
Sec.
142.
Section
423.2,
subsection
8,
Code
2018,
is
amended
21
by
adding
the
following
new
paragraph:
22
NEW
PARAGRAPH
.
d.
A
transaction
that
otherwise
meets
23
the
definition
of
“bundled
transaction”
as
defined
in
this
24
subsection
is
not
a
bundled
transaction
if
it
is
any
of
the
25
following:
26
(1)
The
retail
sale
of
tangible
personal
property
and
a
27
service
where
the
tangible
personal
property
is
essential
28
to
the
use
of
the
service,
and
is
provided
exclusively
in
29
connection
with
the
service,
and
the
true
object
of
the
30
transaction
is
the
service.
31
(2)
The
retail
sale
of
services
where
one
service
is
32
provided
that
is
essential
to
the
use
or
receipt
of
a
second
33
service
and
the
first
service
is
provided
exclusively
in
34
connection
with
the
second
service
and
the
true
object
of
the
35
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transaction
is
the
second
service.
1
(3)
(a)
A
transaction
that
includes
taxable
products
and
2
nontaxable
products
and
the
purchase
price
or
sales
price
of
3
the
taxable
products
is
de
minimis.
4
(b)
For
purposes
of
this
subparagraph,
“de
minimis”
means
5
the
seller’s
purchase
or
sales
price
of
the
taxable
products
6
is
ten
percent
or
less
of
the
total
purchase
price
or
sales
7
price
of
the
bundled
products.
Sellers
shall
use
either
the
8
purchase
price
or
the
sale
price
of
the
products
to
determine
9
if
the
taxable
products
are
de
minimis.
Sellers
may
not
use
10
a
combination
of
the
purchase
price
and
sales
price
of
the
11
products
to
determine
if
the
taxable
products
are
de
minimis.
12
(4)
The
retail
sale
of
exempt
tangible
personal
property
and
13
taxable
tangible
personal
property
where
all
of
the
following
14
apply:
15
(a)
The
transaction
includes
food
and
food
ingredients,
16
drugs,
durable
medical
equipment,
mobility
enhancing
equipment,
17
prosthetic
devices,
or
medical
supplies.
18
(b)
The
seller’s
purchase
price
or
sales
price
of
the
19
taxable
tangible
personal
property
is
fifty
percent
or
less
20
of
the
total
purchase
price
or
sales
price
of
the
bundled
21
tangible
personal
property.
Sellers
may
not
use
a
combination
22
of
the
purchase
price
and
sales
price
of
the
tangible
personal
23
property
when
making
the
fifty
percent
determination
for
a
24
transaction.
25
Sec.
143.
Section
423.2,
subsections
10,
11,
and
12,
Code
26
2018,
are
amended
by
striking
the
subsections.
27
Sec.
144.
NEW
SECTION
.
423.2A
Deposit
and
transfer
of
28
revenues.
29
1.
a.
All
revenues
arising
under
the
operation
of
the
30
provisions
of
this
subchapter
II
shall
be
deposited
into
the
31
general
fund
of
the
state.
32
b.
Subsequent
to
the
deposit
into
the
general
fund
of
33
the
state,
the
director
shall
credit
an
amount
equal
to
the
34
product
of
the
sales
tax
rate
imposed
in
section
423.2
times
35
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2383
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2383
the
sales
price
of
the
tangible
personal
property
or
services
1
furnished
to
purchasers
at
a
baseball
and
softball
complex
that
2
has
received
an
award
under
section
15F.207
and
that
meets
3
the
qualifications
of
section
423.4,
subsection
10,
into
the
4
baseball
and
softball
complex
sales
tax
rebate
fund
created
5
under
section
423.4,
subsection
10,
paragraph
“e”
.
The
director
6
shall
credit
the
moneys
beginning
the
first
day
of
the
quarter
7
following
July
1,
2016.
This
paragraph
is
repealed
thirty
8
days
following
the
date
on
which
five
million
dollars
in
total
9
rebates
have
been
provided
under
section
423.4,
subsection
10.
10
2.
Subsequent
to
the
deposit
into
the
general
fund
of
the
11
state
pursuant
to
subsection
1,
the
department
shall
do
the
12
following
in
the
order
prescribed:
13
a.
Transfer
the
revenues
collected
under
chapter
423B.
14
b.
Transfer
from
the
remaining
revenues
the
amounts
required
15
under
Article
VII,
section
10,
of
the
Constitution
of
the
State
16
of
Iowa
to
the
natural
resources
and
outdoor
recreation
trust
17
fund
created
in
section
461.31,
if
applicable.
18
c.
Transfer
one-sixth
of
the
remaining
revenues
to
the
19
secure
an
advanced
vision
for
education
fund
created
in
section
20
423F.2.
This
paragraph
“c”
is
repealed
December
31,
2029.
21
d.
Transfer
to
the
baseball
and
softball
complex
sales
tax
22
rebate
fund
that
portion
of
the
sales
tax
receipts
described
23
in
subsection
1,
paragraph
“b”
,
remaining
after
the
transfers
24
required
under
paragraphs
“a”
,
“b”
,
and
“c”
of
this
subsection
25
2.
This
paragraph
is
repealed
thirty
days
following
the
date
26
on
which
five
million
dollars
in
total
rebates
have
been
27
provided
under
section
423.4,
subsection
10.
28
e.
Beginning
the
first
day
of
the
calendar
quarter
29
beginning
on
the
reinvestment
district’s
commencement
date,
30
subject
to
remittance
limitations
established
by
the
economic
31
development
authority
board
pursuant
to
section
15J.4,
32
subsection
3,
transfer
to
a
district
account
created
in
the
33
state
reinvestment
district
fund
for
each
reinvestment
district
34
established
under
chapter
15J,
the
amount
of
new
state
sales
35
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tax
revenue,
determined
in
section
15J.5,
subsection
1,
1
paragraph
“b”
,
in
the
district,
that
remains
after
the
prior
2
transfers
required
under
this
subsection
2.
Such
transfers
3
shall
cease
pursuant
to
section
15J.8.
4
f.
Subject
to
the
limitation
on
the
calculation
and
5
deposit
of
sales
tax
increment
revenues
in
section
418.12,
6
beginning
the
first
day
of
the
quarter
following
adoption
7
of
the
resolution
pursuant
to
section
418.4,
subsection
3,
8
paragraph
“d”
,
transfer
to
the
account
created
in
the
sales
tax
9
increment
fund
for
each
governmental
entity
approved
to
use
10
sales
tax
increment
revenues
under
chapter
418,
that
portion
11
of
the
increase
in
sales
tax
revenue,
determined
in
section
12
418.11,
subsection
2,
paragraph
“d”
,
in
the
applicable
area
of
13
the
governmental
entity,
that
remains
after
the
other
transfers
14
required
under
this
subsection
2.
15
g.
Beginning
the
first
day
of
the
quarter
following
July
16
1,
2014,
transfer
to
the
raceway
facility
tax
rebate
fund
17
created
in
section
423.4,
subsection
11,
paragraph
“e”
,
that
18
portion
of
the
sales
tax
receipts
collected
and
remitted
upon
19
sales
of
tangible
personal
property
or
services
furnished
by
20
retailers
at
a
raceway
facility
meeting
the
qualifications
of
21
section
423.4,
subsection
11,
that
remains
after
the
transfers
22
required
in
paragraphs
“a”
through
“f”
of
this
subsection
23
2.
This
subparagraph
is
repealed
June
30,
2025,
or
thirty
24
days
following
the
date
on
which
an
amount
of
total
rebates
25
specified
in
section
423.4,
subsection
11,
paragraph
“c”
,
26
subparagraph
(4),
subparagraph
division
(a)
or
(b),
whichever
27
is
applicable,
has
been
provided
or
thirty
days
following
the
28
date
on
which
rebates
cease
as
provided
in
section
423.4,
29
subsection
11,
paragraph
“c”
,
subparagraph
(5),
whichever
is
30
earliest.
31
3.
Of
the
amount
of
sales
tax
revenue
actually
transferred
32
per
quarter
pursuant
to
subsection
2,
paragraphs
“e”
and
“f”
,
33
the
department
shall
retain
an
amount
equal
to
the
actual
cost
34
of
administering
the
transfers
under
subsection
2,
paragraphs
35
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2383
“e”
and
“f”
,
or
twenty-five
thousand
dollars,
whichever
is
1
less.
The
amount
retained
by
the
department
pursuant
to
this
2
subsection
shall
be
divided
pro
rata
each
quarter
between
3
the
amounts
that
would
have
been
transferred
pursuant
to
4
subsection
2,
paragraphs
“e”
and
“f”
,
without
the
deduction
5
made
by
operation
of
this
subsection.
Revenues
retained
by
6
the
department
pursuant
to
this
subsection
shall
be
considered
7
repayment
receipts
as
defined
in
section
8.2.
8
Sec.
145.
Section
423.3,
subsections
2
and
17,
Code
2018,
9
are
amended
to
read
as
follows:
10
2.
The
sales
price
of
sales
for
resale
of
tangible
personal
11
property
or
taxable
services,
or
for
resale
of
tangible
12
personal
property
in
connection
with
the
furnishing
of
taxable
13
services
,
except
for
sales,
the
following:
14
a.
Sales,
other
than
leases
or
rentals,
which
are
sales
15
to
nonqualified
dealers
of
machinery,
equipment,
attachments,
16
and
replacement
parts
specifically
enumerated
in
subsection
37
17
and
used
in
the
manner
described
in
subsection
37
or
the
.
For
18
purposes
of
this
paragraph,
“nonqualified
dealer”
means
any
19
dealer
who
is
not
a
party
to
a
dealership
agreement,
as
those
20
terms
are
defined
in
section
322F.1.
21
b.
The
purchase
of
tangible
personal
property,
the
leasing
22
or
rental
of
which
is
exempted
from
tax
by
subsection
49
.
23
17.
The
sales
price
of
all
goods,
wares,
or
merchandise,
24
tangible
personal
property
or
services,
used
for
educational
25
purposes
sold
to
any
private
nonprofit
educational
institution
26
in
this
state.
For
the
purpose
of
this
subsection
,
“educational
27
institution”
means
an
institution
which
primarily
functions
28
as
a
school,
college,
or
university
with
students,
faculty,
29
and
an
established
curriculum.
The
faculty
of
an
educational
30
institution
must
be
associated
with
the
institution
and
the
31
curriculum
must
include
basic
courses
which
are
offered
every
32
year.
“Educational
institution”
includes
an
institution
33
primarily
functioning
as
a
library.
34
Sec.
146.
Section
423.3,
subsection
3,
Code
2018,
is
amended
35
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by
striking
the
subsection
and
inserting
in
lieu
thereof
the
1
following:
2
3.
a.
The
sales
price
of
tangible
personal
property
used
3
primarily
in
agricultural
production
by
a
commercial
farmer
4
if
the
cost
of
the
tangible
personal
property
is
properly
5
claimed
as
a
business
deduction
for
purposes
of
chapter
422
and
6
the
tangible
personal
property
is
used
on
land
eligible
for
7
the
agricultural
land
credit
created
in
chapter
426.
If
the
8
other
requirements
of
this
subsection
are
satisfied,
“tangible
9
personal
property”
includes
but
is
not
limited
to
the
following:
10
(1)
Farm
machinery
and
equipment,
including
supplies,
11
replacement
parts,
and
auxiliary
attachments
which
improve
the
12
performance,
safety,
operation,
or
efficiency
of
the
machinery
13
and
equipment.
14
(2)
Agricultural
breeding
livestock,
domesticated
fowl,
15
preserve
whitetail
as
defined
in
section
484C.1,
and
draft
16
horses.
17
b.
Vehicles
subject
to
registration,
as
defined
in
section
18
423.1,
and
replacement
parts
for
such
vehicles,
are
not
exempt
19
under
paragraph
“a”
of
this
subsection.
20
Sec.
147.
Section
423.3,
subsections
3A,
4,
5,
6,
7,
8,
21
9,
10,
11,
12,
13,
14,
15,
and
16,
Code
2018,
are
amended
by
22
striking
the
subsections.
23
Sec.
148.
Section
423.3,
subsections
21,
22,
and
31,
Code
24
2018,
are
amended
to
read
as
follows:
25
21.
The
sales
price
of
goods,
wares,
or
merchandise,
26
tangible
personal
property
or
of
services,
used
for
27
educational,
scientific,
historic
preservation,
or
aesthetic
28
purpose
sold
to
a
nonprofit
private
museum.
29
22.
The
sales
price
from
sales
of
goods,
wares,
or
30
merchandise,
tangible
personal
property
or
from
services
31
furnished
,
to
a
nonprofit
private
art
center
to
be
used
in
the
32
operation
of
the
art
center.
33
31.
a.
The
sales
price
of
goods,
wares,
or
merchandise
34
tangible
personal
property
sold
to
and
of
services
furnished,
35
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and
used
for
public
purposes
sold
to
a
tax-certifying
or
1
tax-levying
body
of
the
state
or
a
governmental
subdivision
2
of
the
state,
including
regional
transit
systems,
as
defined
3
in
section
324A.1
,
the
state
board
of
regents,
department
4
of
human
services,
state
department
of
transportation,
any
5
municipally
owned
solid
waste
facility
which
sells
all
or
part
6
of
its
processed
waste
as
fuel
to
a
municipally
owned
public
7
utility,
and
all
divisions,
boards,
commissions,
agencies,
8
or
instrumentalities
of
state,
federal,
county,
or
municipal
9
government
which
have
no
earnings
going
to
the
benefit
of
an
10
equity
investor
or
stockholder,
except
any
of
the
following:
11
(1)
a.
The
sales
price
of
goods,
wares,
or
merchandise
12
tangible
personal
property
sold
to,
or
of
services
furnished,
13
and
used
by
or
in
connection
with
the
operation
of
any
14
municipally
owned
public
utility
engaged
in
selling
gas,
15
electricity,
heat,
pay
television
service,
or
communication
16
service
to
the
general
public.
17
(2)
b.
The
sales
price
of
furnishing
of
sewage
services
to
18
a
county
or
municipality
on
behalf
of
nonresidential
commercial
19
operations.
20
(3)
c.
The
furnishing
of
solid
waste
collection
and
21
disposal
service
to
a
county
or
municipality
on
behalf
of
22
nonresidential
commercial
operations
located
within
the
county
23
or
municipality.
24
b.
The
exemption
provided
by
this
subsection
shall
also
25
apply
to
all
such
sales
of
goods,
wares,
or
merchandise
or
of
26
services
furnished
and
subject
to
use
tax.
27
Sec.
149.
Section
423.3,
subsection
47,
paragraph
d,
28
subparagraph
(4),
Code
2018,
is
amended
by
striking
the
29
subparagraph
and
inserting
in
lieu
thereof
the
following:
30
(4)
(a)
“Manufacturer”
means
a
business
that
primarily
31
purchases,
receives,
or
holds
personal
property
of
any
32
description
for
the
purpose
of
adding
to
its
value
by
a
process
33
of
manufacturing
with
a
view
to
selling
the
property
for
gain
34
or
profit.
35
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(b)
“Manufacturer”
includes
contract
manufacturers.
A
1
contract
manufacturer
is
a
manufacturer
that
otherwise
falls
2
within
the
definition
of
manufacturer,
except
that
a
contract
3
manufacturer
does
not
sell
the
tangible
personal
property
4
the
contract
manufacturer
processes
on
behalf
of
other
5
manufacturers.
6
(c)
For
purposes
of
this
subparagraph,
“business”
means
7
those
businesses
conducted
for
profit,
but
excludes
professions
8
and
occupations
and
nonprofit
organizations.
9
(d)
For
purposes
of
this
subparagraph,
“manufacturing”
10
means
those
activities
commonly
understood
within
the
ordinary
11
meaning
of
the
term,
and
shall
include:
12
(i)
Refining.
13
(ii)
Purifying.
14
(iii)
Combining
of
different
materials.
15
(iv)
Packing
of
meats.
16
(v)
Activities
subsequent
to
the
extractive
process
of
17
quarrying
or
mining,
such
as
crushing,
washing,
sizing,
or
18
blending
of
aggregate
materials.
19
(e)
“Manufacturer”
does
not
include
persons
who
are
not
20
commonly
understood
as
manufacturers,
including
but
not
limited
21
to
persons
engaged
in
any
of
the
following
activities:
22
(i)
Construction
contracting.
23
(ii)
Repairing
tangible
personal
property
or
real
property.
24
(iii)
Providing
health
care.
25
(iv)
Farming,
including
cultivating
agricultural
products
26
and
raising
livestock.
27
(v)
Transporting
for
hire.
28
(vi)
Making
retail
sales
to
consumers.
29
Sec.
150.
Section
423.3,
subsection
63,
Code
2018,
is
30
amended
to
read
as
follows:
31
63.
The
sales
price
from
the
sale
of
tangible
personal
32
property
or
services
which
will
be
given
as
prizes
to
players
33
in
games
of
skill,
games
of
chance,
raffles,
and
bingo
games
as
34
defined
in
chapter
99B
.
35
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Sec.
151.
Section
423.3,
subsection
78,
paragraph
a,
1
unnumbered
paragraph
1,
Code
2018,
is
amended
to
read
as
2
follows:
3
The
sales
price
from
sales
or
rental
the
sale
of
tangible
4
personal
property,
or
services
rendered
by
any
entity
where
5
the
profits
from
the
sales
or
rental
sale
of
the
tangible
6
personal
property,
or
services
rendered,
are
used
by
or
donated
7
to
a
nonprofit
entity
that
is
exempt
from
federal
income
8
taxation
pursuant
to
section
501(c)(3)
of
the
Internal
Revenue
9
Code,
a
government
entity,
or
a
nonprofit
private
educational
10
institution,
and
where
the
entire
proceeds
from
the
sales,
11
rental,
sale
or
services
are
expended
for
any
of
the
following
12
purposes:
13
Sec.
152.
Section
423.3,
subsection
79,
Code
2018,
is
14
amended
to
read
as
follows:
15
79.
The
sales
price
from
the
sale
or
rental
of
tangible
16
personal
property
or
from
services
furnished
,
to
a
recognized
17
community
action
agency
as
provided
in
section
216A.93
to
be
18
used
for
the
purposes
of
the
agency.
19
Sec.
153.
Section
423.3,
Code
2018,
is
amended
by
adding
the
20
following
new
subsection:
21
NEW
SUBSECTION
.
103.
The
sales
price
from
the
sale
of
a
22
grain
bin
or
materials
used
to
construct
a
grain
bin.
For
23
purposes
of
this
subsection,
“grain
bin”
means
property
that
is
24
vented
and
covered
with
corrugated
metal
or
similar
material,
25
and
that
is
primarily
used
to
hold
loose
grain
for
drying
or
26
storage.
27
Sec.
154.
Section
423.4,
subsection
3,
unnumbered
paragraph
28
1,
Code
2018,
is
amended
to
read
as
follows:
29
A
relief
agency
may
apply
to
the
director
for
refund
of
the
30
amount
of
sales
or
use
tax
imposed
and
paid
upon
sales
to
it
of
31
any
goods,
wares,
merchandise,
tangible
personal
property
or
32
services
furnished,
used
for
free
distribution
to
the
poor
and
33
needy.
34
Sec.
155.
Section
423.4,
subsection
3,
paragraph
a,
35
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subparagraph
(1),
Code
2018,
is
amended
to
read
as
follows:
1
(1)
On
forms
furnished
by
the
department,
and
filed
within
2
the
time
as
the
director
shall
provide
by
rule,
the
relief
3
agency
shall
report
to
the
department
the
total
amount
or
4
amounts,
valued
in
money,
expended
directly
or
indirectly
5
for
goods,
wares,
merchandise,
tangible
personal
property
or
6
services
furnished,
used
for
free
distribution
to
the
poor
and
7
needy.
8
Sec.
156.
Section
423.4,
subsection
10,
paragraph
e,
Code
9
2018,
is
amended
to
read
as
follows:
10
e.
There
is
established
within
the
state
treasury
under
the
11
control
of
the
department
a
baseball
and
softball
complex
sales
12
tax
rebate
fund
consisting
of
the
amount
of
state
sales
tax
13
revenues
transferred
pursuant
to
section
423.2,
subsection
11
,
14
paragraph
“b”
,
subparagraph
(4)
423.2A,
subsection
2,
paragraph
15
“d”
.
An
account
is
created
within
the
fund
for
each
baseball
16
and
softball
complex
receiving
an
award
under
section
15F.207
17
and
meeting
the
qualifications
of
this
subsection
.
Moneys
18
in
the
fund
shall
only
be
used
to
provide
rebates
of
state
19
sales
tax
pursuant
to
this
subsection
,
and
only
the
state
sales
20
tax
revenues
in
the
baseball
and
softball
complex
rebate
fund
21
are
subject
to
rebate
under
this
subsection
.
The
amount
of
22
rebates
paid
from
each
baseball
and
softball
complex’s
account
23
within
the
fund
shall
not
exceed
the
amount
of
the
award
under
24
section
15F.207
,
and
not
more
than
five
million
dollars
in
25
total
rebates
shall
be
paid
from
the
fund.
Any
moneys
in
the
26
fund
which
represent
state
sales
tax
revenue
for
which
the
time
27
period
in
paragraph
“c”
for
receiving
a
rebate
has
expired,
28
or
which
otherwise
represent
state
sales
tax
revenue
that
has
29
become
ineligible
for
rebate
pursuant
to
this
subsection
,
shall
30
immediately
revert
to
the
general
fund
of
this
state.
31
Sec.
157.
Section
423.4,
subsection
11,
paragraph
b,
32
subparagraph
(1),
Code
2018,
is
amended
to
read
as
follows:
33
(1)
Sales
tax
imposed
and
collected
by
retailers
upon
34
sales
of
tangible
personal
property
or
services
furnished
to
35
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purchasers
at
the
raceway
facility.
Notwithstanding
the
state
1
sales
tax
imposed
in
section
423.2
,
a
sales
tax
rebate
issued
2
pursuant
to
this
subparagraph
shall
not
exceed
the
amounts
3
transferred
to
the
raceway
facility
tax
rebate
fund
pursuant
to
4
section
423.2,
subsection
11
,
paragraph
“b”
,
subparagraph
(7)
5
423.2A,
subsection
2,
paragraph
“g”
.
6
Sec.
158.
Section
423.4,
subsection
11,
paragraph
b,
7
subparagraph
(2),
subparagraph
division
(c),
Code
2018,
is
8
amended
to
read
as
follows:
9
(c)
Notwithstanding
the
state
sales
tax
imposed
in
section
10
423.2
,
a
sales
tax
rebate
issued
pursuant
to
this
subparagraph
11
shall
not
exceed
the
amounts
remaining
after
the
transfers
12
required
under
section
423.2,
subsection
11
,
paragraph
“b”
,
13
subparagraphs
(1)
through
(6)
423.2A,
subsection
2,
paragraphs
14
“a”
through
“f”
,
have
been
made
from
the
total
amount
of
sales
15
tax
for
which
the
rebate
is
requested.
16
Sec.
159.
Section
423.4,
subsection
11,
paragraph
e,
Code
17
2018,
is
amended
to
read
as
follows:
18
e.
There
is
established
within
the
state
treasury
under
19
the
control
of
the
department
a
raceway
facility
tax
rebate
20
fund
consisting
of
the
amount
of
state
sales
tax
revenues
21
transferred
pursuant
to
section
423.2,
subsection
11
,
paragraph
22
“b”
,
subparagraph
(7)
423.2A,
subsection
2,
paragraph
“g”
.
An
23
account
is
created
within
the
fund
for
each
raceway
facility
24
meeting
the
qualifications
of
this
subsection
.
Moneys
in
the
25
fund
shall
only
be
used
to
provide
rebates
of
state
sales
tax
26
pursuant
to
paragraph
“b”
,
subparagraph
(1).
The
total
amount
27
of
rebates
paid
from
the
fund
shall
not
exceed
the
amount
28
specified
in
paragraph
“c”
,
subparagraph
(4),
subparagraph
29
division
(a)
or
(b),
whichever
is
applicable.
Any
moneys
in
30
the
fund
which
represent
state
sales
tax
revenue
for
which
the
31
time
period
in
paragraph
“c”
for
receiving
a
rebate
has
expired,
32
or
which
otherwise
represent
state
sales
tax
revenue
that
has
33
become
ineligible
for
rebate
pursuant
to
this
subsection
shall
34
immediately
revert
to
the
general
fund
of
the
state.
35
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Sec.
160.
Section
423.5,
subsection
1,
paragraph
a,
Code
1
2018,
is
amended
to
read
as
follows:
2
a.
The
use
in
this
state
of
tangible
personal
property
3
as
defined
in
section
423.1
,
including
aircraft
subject
to
4
registration
under
section
328.20
,
purchased
for
use
in
this
5
state.
For
the
purposes
of
this
subchapter
,
the
furnishing
6
or
use
of
the
following
services
is
also
treated
as
the
use
7
of
tangible
personal
property:
optional
service
or
warranty
8
contracts,
except
residential
service
contracts
regulated
under
9
chapter
523C
,
vulcanizing,
recapping,
or
retreading
services,
10
engraving,
photography,
retouching,
printing,
or
binding
11
services,
and
communication
service
when
furnished
or
delivered
12
to
consumers
or
users
within
this
state.
13
Sec.
161.
Section
423.14,
subsection
2,
paragraph
b,
Code
14
2018,
is
amended
to
read
as
follows:
15
b.
The
tax
upon
the
use
of
all
tangible
personal
property
16
other
than
that
enumerated
in
paragraph
“a”
,
which
is
sold
by
17
a
seller
who
is
a
retailer
maintaining
a
place
of
business
18
in
this
state,
or
by
such
other
retailer
or
agent
as
the
19
director
shall
authorize
pursuant
to
section
423.30
or
its
20
agent
that
is
not
otherwise
required
to
collect
sales
tax
under
21
the
provisions
of
this
chapter
,
shall
be
collected
by
the
22
retailer
or
agent
and
remitted
to
the
department,
pursuant
to
23
the
provisions
of
paragraph
“e”
,
and
sections
423.24
,
423.29
,
24
423.30
,
423.32
,
and
423.33
.
25
Sec.
162.
NEW
SECTION
.
423.14A
Persons
required
to
collect
26
sales
and
use
tax
——
supplemental
conditions,
requirements,
and
27
responsibilities.
28
1.
For
purposes
of
this
section,
“Iowa
sales”
means
sales
of
29
tangible
personal
property,
services,
or
digital
goods
sourced
30
to
this
state
pursuant
to
section
423.15,
423.16,
423.17,
31
423.19,
or
423.20,
or
that
are
otherwise
sold
in
this
state
or
32
for
delivery
into
this
state.
33
2.
In
addition
to
and
not
in
lieu
of
any
application
of
34
this
chapter
to
sellers
who
are
retailers
and
sellers
who
are
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retailers
maintaining
a
place
of
business
in
this
state,
any
1
person
described
in
subsection
3,
or
the
person’s
agents,
2
shall
be
considered
a
retailer
in
this
state
and
a
retailer
3
maintaining
a
place
of
business
in
this
state
for
purposes
of
4
this
chapter
on
or
after
January
1,
2019,
and
shall
be
subject
5
to
all
requirements
of
this
chapter
imposed
on
retailers
and
6
retailers
maintaining
a
place
of
business
in
this
state,
7
including
but
not
limited
to
the
requirement
to
collect
and
8
remit
sales
and
use
taxes
pursuant
to
sections
423.14
and
9
423.29,
and
local
option
taxes
under
chapter
423B.
10
3.
a.
A
retailer
that
has
gross
revenue
from
Iowa
sales
11
equal
to
or
exceeding
one
hundred
thousand
dollars
for
the
12
immediately
preceding
calendar
year
or
the
current
calendar
13
year.
14
b.
A
retailer
that
makes
Iowa
sales
in
two
hundred
or
more
15
separate
transactions
for
the
immediately
preceding
calendar
16
year
or
the
current
calendar
year.
17
c.
(1)
A
retailer
that
owns,
licenses,
or
uses
software
18
or
data
files
that
are
installed
or
stored
on
property
used
19
in
this
state.
For
purposes
of
this
subparagraph,
“software
20
or
data
files”
include
but
are
not
limited
to
software
that
is
21
affirmatively
downloaded
by
a
user,
software
that
is
downloaded
22
as
a
result
of
the
use
of
a
website,
preloaded
software,
and
23
cookies.
24
(2)
A
retailer
that
uses
in-state
software
to
make
Iowa
25
sales.
For
purposes
of
this
subparagraph,
“in-state
software”
26
means
computer
software
that
is
stored
on
property
located
in
27
this
state
or
that
is
distributed
within
this
state
for
the
28
purpose
of
facilitating
a
sale
by
the
retailer.
29
(3)
A
retailer
that
provides,
or
enters
into
an
agreement
30
with
another
person
to
provide,
a
content
distribution
network
31
in
this
state
to
facilitate,
accelerate,
or
enhance
the
32
delivery
of
the
retailer’s
internet
site
to
purchasers.
For
33
purposes
of
this
subparagraph,
“content
distribution
network”
34
means
a
system
of
distributed
servers
that
deliver
internet
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sites
and
other
internet
content
to
a
user
based
on
the
1
geographic
location
of
the
user,
the
origin
of
the
internet
2
site
or
internet
content,
and
a
content
delivery
server.
3
(4)
This
paragraph
“c”
shall
not
apply
to
a
retailer
that
4
has
gross
revenue
from
Iowa
sales
of
less
than
one
hundred
5
thousand
dollars
for
the
immediately
preceding
calendar
year
6
or
the
current
calendar
year.
7
d.
(1)
A
retailer
that
makes
Iowa
sales
through
a
8
marketplace
provider.
This
subparagraph
shall
not
apply
to
a
9
retailer
that
has
gross
revenue
from
Iowa
sales
of
less
than
10
ten
thousand
dollars
for
the
immediately
preceding
calendar
11
year
or
the
current
calendar
year.
12
(2)
A
marketplace
provider
that
makes
or
facilitates
Iowa
13
sales
for
one
or
more
retailers
equal
to
or
exceeding
one
14
hundred
thousand
dollars,
or
in
two
hundred
or
more
separate
15
transactions,
for
the
immediately
preceding
calendar
year
or
16
the
current
calendar
year.
17
(3)
Retailers
and
marketplace
providers
subject
to
this
18
paragraph
may
enter
into
agreements
regarding
the
fulfillment
19
of
the
requirements
of
this
chapter.
20
(4)
A
marketplace
provider
shall
collect
sales
and
use
tax
21
on
the
entire
sales
price
or
purchase
price
paid
by
a
purchaser
22
on
each
Iowa
sale
made
or
facilitated
by
the
marketplace
23
provider
that
is
subject
to
sales
and
use
tax,
regardless
of
24
the
amount
of
the
sales
price
or
purchase
price
that
will
25
ultimately
accrue
to
or
benefit
the
marketplace
provider,
26
another
retailer,
or
any
other
person.
This
sales
and
use
tax
27
collection
responsibility
of
a
marketplace
provider
applies
but
28
shall
not
be
limited
to
sales
facilitated
through
a
computer
29
software
application,
commonly
referred
to
as
in-app
purchases,
30
or
through
another
digital
good.
31
(5)
A
marketplace
provider
shall
be
relieved
of
liability
32
under
this
paragraph
“d”
for
failure
to
collect
and
remit
sales
33
and
use
tax
on
an
Iowa
sale
made
or
facilitated
for
a
retailer
34
under
the
following
circumstances:
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(a)
If
the
marketplace
provider
demonstrates
to
the
1
satisfaction
of
the
department
that
the
failure
to
collect
and
2
remit
the
correct
tax
was
due
to
incorrect
or
insufficient
3
information
provided
to
the
marketplace
provider
by
the
4
retailer.
This
subparagraph
division
does
not
apply
if
a
5
marketplace
provider
and
a
retailer
are
affiliates.
For
Iowa
6
sales
for
which
a
marketplace
provider
is
relieved
of
liability
7
under
this
subparagraph
division,
the
retailer
or
purchaser
are
8
solely
liable
for
any
amount
of
uncollected
or
unpaid
tax.
9
(b)
(i)
Subject
to
the
limitation
in
subparagraph
10
subdivision
(ii),
if
the
marketplace
provider
demonstrates
11
to
the
satisfaction
of
the
department
that
the
Iowa
sale
was
12
made
or
facilitated
for
a
retailer
prior
to
January
1,
2026,
13
through
a
platform
or
other
marketplace
of
the
marketplace
14
provider,
that
the
marketplace
provider
and
the
retailer
are
15
not
affiliates,
and
that
the
failure
to
collect
sales
and
16
use
tax
was
not
due
to
an
error
in
sourcing
the
sale.
To
the
17
extent
that
a
marketplace
provider
is
relieved
of
liability
18
for
collection
of
sales
and
use
tax
under
this
subparagraph
19
division,
the
retailer
for
whom
the
marketplace
provider
20
has
made
or
facilitated
the
Iowa
sale
is
also
relieved
of
21
liability.
The
department
may
determine
the
manner
in
which
22
a
marketplace
provider
or
retailer
shall
claim
the
liability
23
relief
provided
in
this
subparagraph
division.
24
(ii)
The
liability
relief
provided
in
subparagraph
25
subdivision
(i)
shall
not
exceed
the
following
percentage
26
of
the
total
sales
and
use
tax
due
on
Iowa
sales
made
or
27
facilitated
by
a
marketplace
provider
for
retailers
and
sourced
28
to
this
state
during
a
calendar
year:
29
(A)
For
Iowa
sales
made
or
facilitated
during
the
2019
30
calendar
year,
ten
percent.
31
(B)
For
Iowa
sales
made
or
facilitated
during
calendar
years
32
2020
through
2024,
five
percent.
33
(C)
For
Iowa
sales
made
or
facilitated
during
the
2025
34
calendar
year,
three
percent.
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(6)
(a)
For
purposes
of
this
paragraph,
“marketplace
1
provider”
means
a
person
who
facilitates
a
retail
sale
by
2
satisfying
subparagraph
divisions
(i)
and
(ii)
as
follows:
3
(i)
The
person
directly
or
indirectly
does
any
of
the
4
following:
5
(A)
Lists,
makes
available,
or
advertises
tangible
personal
6
property,
services,
or
digital
goods
for
sale
by
a
retailer
in
7
any
forum.
8
(B)
Transmits
or
otherwise
communicates
an
offer
or
9
acceptance
of
a
retail
sale
of
tangible
personal
property,
10
services,
or
digital
goods
between
a
retailer
and
a
purchaser.
11
(C)
Owns,
rents,
licenses,
makes
available,
or
operates
12
any
electronic
or
physical
infrastructure
or
any
property,
13
process,
method,
copyright,
trademark,
or
patent
that
connects
14
retailers
to
purchasers
for
the
purpose
of
making
retail
sales
15
of
tangible
personal
property,
services,
or
digital
goods.
16
(D)
Provides
a
platform
or
other
marketplace
for
making
17
retail
sales
of
tangible
personal
property,
services,
or
18
digital
goods,
or
otherwise
facilitates
retail
sales
of
19
tangible
personal
property,
services,
or
digital
goods,
20
regardless
of
ownership
or
control
of
the
tangible
personal
21
property,
services,
or
digital
goods
that
are
the
subject
of
22
the
retail
sale.
23
(E)
Provides
software
development
or
research
and
24
development
activities
related
to
any
activity
described
in
25
this
subparagraph
subdivision
(i),
if
such
software
development
26
or
research
and
development
activities
are
directly
related
27
to
the
physical
or
electronic
marketplace
provided
by
a
28
marketplace
provider.
29
(F)
Provides
or
offers
fulfillment
or
storage
services
for
30
a
retailer.
31
(G)
Sets
prices
for
a
retailer’s
sale
of
tangible
personal
32
property,
services,
or
digital
goods.
33
(H)
Provides
or
offers
customer
service
to
a
retailer
or
34
a
retailer’s
customers,
or
accepts
or
assists
with
returns
or
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exchanges
of
tangible
personal
property,
services,
or
digital
1
goods
sold
by
a
retailer.
2
(ii)
The
person
directly
or
indirectly
does
any
of
the
3
following:
4
(A)
Collects
the
sales
price
or
purchase
price
of
a
retail
5
sale
of
tangible
personal
property,
services,
or
digital
goods.
6
(B)
Provides
payment
processing
services
for
a
retail
sale
7
of
tangible
personal
property,
services,
or
digital
goods.
8
(C)
Charges,
collects,
or
otherwise
receives
selling
fees,
9
listing
fees,
referral
fees,
closing
fees,
fees
for
inserting
10
or
making
available
tangible
personal
property,
services,
or
11
digital
goods
on
a
marketplace,
or
other
consideration
from
the
12
facilitation
of
a
retail
sale
of
tangible
personal
property,
13
services,
or
digital
goods,
regardless
of
ownership
or
control
14
of
the
tangible
personal
property,
services,
or
digital
goods
15
that
are
the
subject
of
the
retail
sale.
16
(D)
Through
terms
and
conditions,
agreements,
or
17
arrangements
with
a
third
party,
collects
payment
in
connection
18
with
a
retail
sale
of
tangible
personal
property,
services,
19
or
digital
goods
from
a
purchaser
and
transmits
that
payment
20
to
the
retailer,
regardless
of
whether
the
person
collecting
21
and
transmitting
such
payment
receives
compensation
or
other
22
consideration
in
exchange
for
the
service.
23
(E)
Provides
a
virtual
currency
that
purchasers
are
allowed
24
or
required
to
use
to
purchase
tangible
personal
property,
25
services,
or
digital
goods.
26
(b)
For
purposes
of
this
paragraph,
“marketplace
provider”
27
includes
but
is
not
limited
to
a
digital
distribution
service,
28
digital
distribution
platform,
online
portal,
or
an
application
29
store.
30
e.
(1)
A
referrer
if
Iowa
sales
result
from
referrals
from
31
a
platform
of
the
referrer.
A
referrer
is
not
required
to
32
collect
and
remit
sales
and
use
tax
pursuant
to
this
paragraph
33
if
the
referrer
does
all
of
the
following:
34
(a)
The
referrer
posts
a
conspicuous
notice
on
each
platform
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of
the
referrer
that
includes
all
of
the
following:
1
(i)
A
statement
that
sales
or
use
tax
is
due
on
certain
2
purchases.
3
(ii)
A
statement
that
the
retailer
from
whom
the
person
is
4
purchasing
on
the
platform
may
not
collect
and
remit
sales
and
5
use
tax
on
a
purchase.
6
(iii)
A
statement
that
Iowa
requires
the
purchaser
to
pay
7
sales
or
use
tax
and
file
sales
or
use
tax
returns
if
sales
8
or
use
tax
is
not
collected
at
the
time
of
the
sale
by
the
9
retailer.
10
(iv)
Information
informing
the
purchaser
that
the
notice
is
11
provided
under
the
requirements
of
this
subparagraph.
12
(v)
Instructions
for
obtaining
additional
information
from
13
the
department
regarding
whether
and
how
to
remit
sales
and
use
14
tax
to
the
state
of
Iowa.
15
(b)
The
referrer
provides
a
monthly
notice
to
each
retailer
16
to
whom
the
referrer
made
a
referral
of
a
potential
customer
17
located
in
Iowa
during
the
previous
calendar
year,
which
18
monthly
notice
shall
contain
all
of
the
following:
19
(i)
A
statement
that
Iowa
imposes
a
sales
or
use
tax
on
Iowa
20
sales.
21
(ii)
A
statement
that
a
retailer
making
Iowa
sales
must
22
collect
and
remit
sales
and
use
tax.
23
(iii)
Instructions
for
obtaining
additional
information
24
from
the
department
regarding
the
collection
and
remittance
of
25
Iowa
sales
and
use
tax.
26
(c)
The
referrer
provides
the
department
with
monthly
27
reports
in
an
electronic
format
and
in
the
manner
prescribed
28
by
the
department,
which
monthly
reports
contain
all
of
the
29
following:
30
(i)
A
list
of
retailers
who
received
the
referrer’s
notice
31
under
subparagraph
division
(b).
32
(ii)
A
list
of
retailers
that
collect
and
remit
Iowa
sales
33
and
use
tax
and
that
list
or
advertise
the
retailer’s
products
34
for
sale
on
a
platform
of
the
referrer.
35
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2383
(iii)
An
affidavit
signed
under
penalty
of
perjury
from
1
an
officer
of
the
referrer
affirming
that
the
referrer
made
2
reasonable
efforts
to
comply
with
the
applicable
sales
and
use
3
tax
notice
and
reporting
requirements
of
this
subparagraph.
4
(2)
For
purposes
of
this
paragraph:
5
(a)
“Platform”
means
an
electronic
or
physical
medium,
6
including
but
not
limited
to
an
internet
site
or
catalog,
7
operated
by
a
referrer.
8
(b)
“Referral”
means
the
transfer
through
telephone,
9
internet
link,
or
other
means
by
a
referrer
of
a
potential
10
customer
to
a
retailer
who
advertises
or
lists
products
for
11
sale
on
a
platform
of
the
referrer.
12
(c)
(i)
“Referrer”
means
a
person
who
does
all
of
the
13
following:
14
(A)
Contracts
or
otherwise
agrees
with
a
retailer
to
list
15
or
advertise
for
sale
a
product
of
the
retailer
on
a
platform,
16
provided
such
listing
or
advertisement
identifies
whether
or
17
not
the
retailer
collects
sales
and
use
tax.
18
(B)
Receives
a
commission,
fee,
or
other
consideration
from
19
the
retailer
for
the
listing
or
advertisement.
20
(C)
Provides
referrals
to
a
retailer
or
an
affiliate
of
the
21
retailer.
22
(D)
Does
not
collect
money
or
other
consideration
from
the
23
customer
for
the
transaction.
24
(ii)
“Referrer”
does
not
include
a
person
primarily
engaged
25
in
the
business
of
printing
or
publishing
a
newspaper.
26
f.
(1)
A
retailer
that
makes
Iowa
sales
through
the
use
of
27
a
solicitor.
For
purposes
of
this
paragraph,
“solicitor”
means
28
a
person
that
directly
or
indirectly
solicits
business
for
a
29
retailer.
30
(2)
(a)
A
retailer
is
deemed
to
have
a
solicitor
in
31
this
state
if
the
retailer
enters
into
an
agreement
with
a
32
resident
under
which
the
resident,
for
a
commission,
fee,
or
33
other
similar
consideration,
directly
or
indirectly
refers
34
potential
customers,
whether
by
link
on
an
internet
site,
35
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or
otherwise,
to
the
retailer.
This
determination
may
be
1
rebutted
by
a
showing
of
proof
that
the
resident
with
whom
the
2
retailer
has
an
agreement
did
not
engage
in
any
solicitation
3
in
this
state
on
behalf
of
the
retailer
that
would
satisfy
the
4
nexus
requirement
of
the
United
States
Constitution
during
the
5
calendar
year
in
question.
6
(b)
This
subparagraph
(2)
shall
not
apply
to
a
retailer
that
7
has
Iowa
gross
revenue
from
Iowa
sales
of
ten
thousand
dollars
8
or
less
for
the
immediately
preceding
calendar
year
or
the
9
current
calendar
year.
10
(c)
For
purposes
of
this
subparagraph
(2):
11
(i)
“Iowa
gross
revenue”
means
gross
revenue
from
Iowa
12
sales
to
purchasers
who
were
referred
to
the
retailer
by
all
13
solicitors
who
are
residents.
14
(ii)
“Resident”
includes
an
individual
who
is
a
resident
15
of
this
state,
as
defined
in
section
422.4,
and
any
business
16
that
owns
any
tangible
or
intangible
property
with
a
situs
in
17
this
state,
or
that
has
one
or
more
employees
performing
or
18
providing
services
for
the
business
in
this
state.
19
(d)
This
paragraph
“f”
does
not
apply
to
chapter
422
and
20
does
not
expand
or
contract
the
state’s
jurisdiction
to
tax
a
21
trade
or
business
under
chapter
422.
22
g.
A
retailer
that
owns,
controls,
rents,
licenses,
makes
23
available,
or
uses
any
tangible
or
intangible
property
in
this
24
state
or
with
a
situs
in
this
state,
to
make
or
otherwise
25
facilitate
a
retail
sale.
26
h.
(1)
Any
person
that
enters
into
a
contract
or
agreement
27
with
a
governmental
entity,
including
but
not
limited
to
28
contracts
for
the
provision
of
financial
assistance
or
29
incentives
such
as
a
tax
credit,
forgivable
loan,
grant,
tax
30
rebate,
or
any
other
thing
of
value.
For
purposes
of
this
31
subparagraph,
“governmental
entity”
means
any
unit
of
government
32
in
the
executive,
legislative,
or
judicial
branch,
or
any
33
political
subdivision
of
the
state,
including
but
not
limited
34
to
a
city,
county,
township,
or
school
district.
35
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(2)
Every
bid
submitted
and
each
contract
or
agreement
1
executed
by
a
state
agency
shall
contain
a
certification
by
2
the
bidder
or
contractor
stating
that
the
bidder
or
contractor
3
is
registered
with
the
department
pursuant
to
this
chapter
4
and
will
collect
and
remit
Iowa
sales
and
use
tax
due
under
5
this
chapter.
In
the
certification,
the
bidder
or
contractor
6
shall
also
acknowledge
that
the
state
agency
may
declare
the
7
contractor
or
bid
void
if
the
certification
is
false
or
becomes
8
false.
Fraudulent
certification,
by
act
or
omission,
may
9
result
in
the
state
agency
or
its
representative
filing
for
10
damages
for
breach
of
contract.
11
i.
Any
affiliate
of
any
retailer
that
is
required
to
collect
12
and
remit
sales
and
use
tax
under
this
chapter,
provided
the
13
affiliate
makes
retail
sales.
14
Sec.
163.
Section
423.15,
unnumbered
paragraph
1,
Code
15
2018,
is
amended
to
read
as
follows:
16
All
sales
of
products
tangible
personal
property
or
17
services
,
except
those
sales
enumerated
in
section
423.16
,
18
shall
be
sourced
according
to
this
section
by
sellers
19
obligated
to
collect
Iowa
sales
and
use
tax.
The
sourcing
20
rules
described
in
this
section
apply
to
sales
of
tangible
21
personal
property,
digital
goods,
and
all
services
other
than
22
telecommunications
services.
This
section
only
applies
to
23
determine
a
seller’s
obligation
to
pay
or
collect
and
remit
24
a
Iowa
sales
or
use
tax
with
respect
to
the
seller’s
sale
of
25
a
product.
This
section
does
not
affect
the
obligation
of
a
26
purchaser
or
lessee
to
remit
tax
on
the
use
of
the
product
to
27
the
taxing
jurisdictions
in
which
the
use
occurs.
A
seller’s
28
obligation
to
collect
Iowa
sales
tax
or
Iowa
use
tax
only
29
occurs
if
the
sale
is
sourced
to
this
state.
Whether
Iowa
30
sales
tax
applies
to
a
sale
sourced
to
Iowa
shall
be
determined
31
based
on
the
location
at
which
the
sale
is
consummated
by
32
delivery
or,
in
the
case
of
a
service,
where
the
first
use
of
33
the
service
occurs
made
by
a
seller
subject
to
section
423.1,
34
subsection
48,
or
section
423.14A
.
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Sec.
164.
Section
423.15,
subsection
1,
paragraph
e,
Code
1
2018,
is
amended
to
read
as
follows:
2
e.
When
paragraphs
“a”
,
“b”
,
“c”
,
and
“d”
do
not
apply,
3
including
the
circumstance
where
the
seller
is
without
4
sufficient
information
to
apply
the
previous
rules,
then
the
5
location
will
be
determined
by
the
address
from
which
tangible
6
personal
property
was
shipped,
from
which
the
digital
good
7
or
the
computer
software
delivered
electronically
was
first
8
available
for
transmission
by
the
seller,
or
from
which
the
9
service
was
provided
disregarding
for
these
purposes
any
10
location
that
merely
provided
the
digital
transfer
of
the
11
product
sold.
12
Sec.
165.
Section
423.29,
subsection
1,
Code
2018,
is
13
amended
to
read
as
follows:
14
1.
Every
seller
who
is
a
retailer
and
who
is
making
taxable
15
sales
of
tangible
personal
property
in
Iowa
shall,
at
the
time
16
of
selling
the
property
making
the
sale
,
collect
the
sales
tax.
17
Every
seller
who
is
a
retailer
maintaining
a
place
of
business
18
in
this
state
that
is
not
otherwise
required
to
collect
sales
19
tax
under
the
provisions
of
this
chapter
and
who
is
selling
20
tangible
personal
property
for
use
in
Iowa
shall,
at
the
time
21
of
making
the
sale,
whether
within
or
without
the
state,
22
collect
the
use
tax.
Sellers
required
to
collect
sales
or
use
23
tax
shall
give
to
any
purchaser
a
receipt
for
the
tax
collected
24
in
the
manner
and
form
prescribed
by
the
director.
25
Sec.
166.
Section
423.31,
subsection
1,
Code
2018,
is
26
amended
to
read
as
follows:
27
1.
Each
person
subject
to
this
section
and
section
423.36
28
and
in
accordance
with
the
provisions
of
this
section
and
29
section
423.36
shall,
on
or
before
the
last
day
of
the
month
30
following
the
close
of
each
calendar
quarter
during
which
31
such
person
is
or
has
become
or
ceased
being
subject
to
the
32
provisions
of
this
section
and
section
423.36
,
make,
sign,
and
33
file
a
return
for
the
calendar
quarter
in
the
form
as
may
be
34
required.
Returns
shall
show
information
relating
to
sales
35
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prices
including
goods,
wares,
tangible
personal
property
1
and
services
converted
to
use
of
such
person,
the
amounts
of
2
sales
prices
excluded
and
exempt
from
the
tax,
the
amounts
of
3
sales
prices
subject
to
tax,
a
calculation
of
tax
due,
and
4
any
other
information
for
the
period
covered
by
the
return
5
as
may
be
required.
Returns
shall
be
signed
by
the
retailer
6
or
the
retailer’s
authorized
agent
and
must
be
certified
by
7
the
retailer
to
be
correct
in
accordance
with
forms
and
rules
8
prescribed
by
the
director.
9
Sec.
167.
Section
423.31,
subsection
5,
paragraph
a,
Code
10
2018,
is
amended
to
read
as
follows:
11
a.
Upon
making
application
and
receiving
approval
from
12
the
director,
a
parent
corporation
person
and
its
affiliated
13
corporations
affiliates
that
make
retail
sales
of
tangible
14
personal
property
or
taxable
enumerated
services
may
make
15
deposits
and
file
a
consolidated
sales
tax
return
for
the
16
affiliated
group,
pursuant
to
rules
adopted
by
the
director.
A
17
parent
corporation
person
and
each
affiliate
corporation
that
18
files
a
consolidated
return
are
jointly
and
severally
liable
19
for
all
tax,
penalty,
and
interest
found
due
for
the
tax
period
20
for
which
a
consolidated
return
is
filed
or
required
to
be
21
filed.
22
Sec.
168.
Section
423.33,
subsection
3,
Code
2018,
is
23
amended
to
read
as
follows:
24
3.
Event
sponsor’s
liability
for
sales
tax.
A
person
25
sponsoring
a
flea
market
or
a
craft,
antique,
coin,
or
stamp
26
show
or
similar
event
shall
obtain
from
every
retailer
selling
27
tangible
personal
property
or
taxable
services
at
the
event
28
proof
that
the
retailer
possesses
a
valid
sales
tax
permit
or
29
secure
from
the
retailer
a
statement,
taken
in
good
faith,
30
that
tangible
personal
property
or
services
offered
for
sale
31
are
not
subject
to
sales
tax.
Failure
to
do
so
renders
a
32
sponsor
of
the
event
liable
for
payment
of
any
sales
tax,
33
interest,
and
penalty
due
and
owing
from
any
retailer
selling
34
property
or
services
at
the
event.
Sections
423.31
,
423.32
,
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423.37
,
423.38
,
423.39
,
423.40
,
423.41
,
and
423.42
apply
to
the
1
sponsors.
For
purposes
of
this
subsection
,
a
“person
sponsoring
2
a
flea
market
or
a
craft,
antique,
coin,
or
stamp
show
or
similar
3
event”
does
not
include
an
organization
which
sponsors
an
4
event
determined
to
qualify
as
an
event
involving
casual
sales
5
pursuant
to
section
423.3,
subsection
39
,
or
the
state
fair
or
6
a
fair
as
defined
in
section
174.1
.
7
Sec.
169.
Section
423.33,
Code
2018,
is
amended
by
adding
8
the
following
new
subsection:
9
NEW
SUBSECTION
.
4.
Liability
of
affiliates.
10
a.
Notwithstanding
any
other
provision
of
law
to
the
11
contrary,
if
any
retailer
required
to
collect
and
remit
sales
12
and
use
tax
pursuant
to
sections
423.14,
423.14A,
and
423.29,
13
or
any
other
provision
of
this
chapter,
fails
to
do
so,
all
14
affiliates
that
directly,
indirectly,
or
constructively
control
15
the
retailer
shall
be
jointly
and
severally
liable
for
any
tax,
16
penalty,
and
interest
under
this
chapter,
regardless
of
whether
17
the
affiliate
is
a
retailer.
18
b.
Pursuant
to
paragraph
“a”
,
the
department
may
elect
19
to
assess
the
full
amount
of
any
tax,
penalty,
and
interest
20
against
the
retailer,
an
affiliate
of
the
retailer
described
21
in
paragraph
“a”
,
or
any
combination
of
the
retailer
and
the
22
retailer’s
affiliates
described
in
paragraph
“a”
.
23
c.
Notwithstanding
any
other
provision
of
law
to
the
24
contrary,
the
department
has
the
discretion
to
deem
an
25
affiliate
of
a
retailer
an
agent
or
alter
ego
of
that
retailer.
26
d.
Notwithstanding
any
other
provision
of
law
to
the
27
contrary,
the
department
has
the
discretion
to
disregard
or
28
look
through
any
organizational
structure
of
an
enterprise
in
29
order
to
assess
and
collect
any
tax,
penalty,
and
interest
30
against
an
affiliate
that
is
acting
to
benefit
an
affiliate
or
31
an
enterprise
of
which
the
affiliate
is
a
part.
32
Sec.
170.
Section
423.34,
Code
2018,
is
amended
to
read
as
33
follows:
34
423.34
Liability
of
user.
35
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Any
person
who
uses
any
tangible
personal
property
or
1
services
enumerated
in
section
423.2
upon
which
the
use
tax
has
2
not
been
paid,
either
to
the
county
treasurer
or
to
a
retailer
3
or
direct
to
the
department
as
required
by
this
subchapter
,
4
shall
be
liable
for
the
payment
of
tax,
and
shall
on
or
before
5
the
last
day
of
the
month
next
succeeding
each
quarterly
period
6
pay
the
use
tax
upon
all
property
or
services
used
by
the
7
person
during
the
preceding
quarterly
period
in
the
manner
and
8
accompanied
by
such
returns
as
the
director
shall
prescribe.
9
All
of
the
provisions
of
sections
423.32
and
423.33
with
10
reference
to
the
returns
and
payments
shall
be
applicable
to
11
the
returns
and
payments
required
by
this
section
.
12
Sec.
171.
Section
423.57,
Code
2018,
is
amended
to
read
as
13
follows:
14
423.57
Statutes
applicable.
15
The
director
shall
administer
this
subchapter
as
it
relates
16
to
the
taxes
imposed
in
this
chapter
in
the
same
manner
and
17
subject
to
all
the
provisions
of,
and
all
of
the
powers,
18
duties,
authority,
and
restrictions
contained
in
sections
19
423.14
,
423.14A,
423.15
,
423.16
,
423.17
,
423.19
,
423.20
,
20
423.21
,
423.22
,
423.23
,
423.24
,
423.25
,
423.29
,
423.31
,
423.32
,
21
423.33
,
423.34
,
423.34A
,
423.35
,
423.37
,
423.38
,
423.39
,
22
423.40
,
423.41
,
and
423.42
,
section
423.43,
subsection
1
,
and
23
sections
423.45
,
423.46
,
and
423.47
.
24
Sec.
172.
Section
423.58,
Code
2018,
is
amended
to
read
as
25
follows:
26
423.58
Collection,
permit,
and
tax
return
exemption
for
27
certain
out-of-state
businesses.
28
Notwithstanding
sections
423.14
,
423.14A,
423.29
,
423.31
,
29
423.32
,
and
423.36
,
a
person
meeting
the
requirements
of
30
section
29C.24
is
not
required
to
obtain
a
sales
or
use
tax
31
permit,
collect
and
remit
sales
and
use
tax,
or
make
and
file
32
applicable
sales
or
use
tax
returns,
as
provided
in
section
33
29C.24,
subsection
3
,
paragraph
“a”
,
subparagraph
(2).
34
Sec.
173.
Section
423B.5,
subsection
1,
Code
2018,
is
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amended
to
read
as
follows:
1
1.
A
local
sales
and
services
tax
at
the
rate
of
not
more
2
than
one
percent
may
be
imposed
by
a
county
on
the
sales
price
3
taxed
by
the
state
under
chapter
423,
subchapter
II
.
A
local
4
sales
and
services
tax
shall
be
imposed
on
the
same
basis
as
5
the
state
sales
and
services
tax
or
in
the
case
of
the
use
of
6
natural
gas,
natural
gas
service,
electricity,
or
electric
7
service
on
the
same
basis
as
the
state
use
tax
and
shall
not
8
be
imposed
on
the
sale
of
any
property
or
on
any
service
not
9
taxed
by
the
state,
except
the
tax
shall
not
be
imposed
on
10
the
sales
price
from
the
sale
of
motor
fuel
or
special
fuel
11
as
defined
in
chapter
452A
which
is
consumed
for
highway
use
12
or
in
watercraft
or
aircraft
if
the
fuel
tax
is
paid
on
the
13
transaction
and
a
refund
has
not
or
will
not
be
allowed,
14
on
the
sales
price
from
the
sale
of
equipment
by
the
state
15
department
of
transportation,
or
on
the
sales
price
from
the
16
sale
or
use
of
natural
gas,
natural
gas
service,
electricity,
17
or
electric
service
in
a
city
or
county
where
the
sales
price
18
from
the
sale
of
natural
gas
or
electric
energy
is
subject
to
19
a
franchise
fee
or
user
fee
during
the
period
the
franchise
20
or
user
fee
is
imposed.
A
local
sales
and
services
tax
is
21
applicable
to
transactions
within
those
incorporated
and
22
unincorporated
areas
of
the
county
where
it
is
imposed
and
,
23
which
transactions
include
but
are
not
limited
to
sales
sourced
24
pursuant
to
sections
423.15,
423.17,
423.19,
or
423.20,
to
a
25
location
within
that
incorporated
or
unincorporated
area
of
the
26
county.
The
tax
shall
be
collected
by
all
persons
required
27
to
collect
state
sales
taxes.
All
cities
contiguous
to
each
28
other
shall
be
treated
as
part
of
one
incorporated
area
and
the
29
tax
would
be
imposed
in
each
of
those
contiguous
cities
only
30
if
the
majority
of
those
voting
in
the
total
area
covered
by
31
the
contiguous
cities
favors
its
imposition.
In
the
case
of
a
32
local
sales
and
services
tax
submitted
to
the
registered
voters
33
of
two
or
more
contiguous
counties
as
provided
in
section
34
423B.1,
subsection
4
,
paragraph
“c”
,
all
cities
contiguous
to
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each
other
shall
be
treated
as
part
of
one
incorporated
area,
1
even
if
the
corporate
boundaries
of
one
or
more
of
the
cities
2
include
areas
of
more
than
one
county,
and
the
tax
shall
be
3
imposed
in
each
of
those
contiguous
cities
only
if
a
majority
4
of
those
voting
on
the
tax
in
the
total
area
covered
by
the
5
contiguous
cities
favored
its
imposition.
6
Sec.
174.
Section
423B.6,
subsection
2,
paragraph
b,
Code
7
2018,
is
amended
to
read
as
follows:
8
b.
The
ordinance
of
a
county
board
of
supervisors
imposing
9
a
local
sales
and
services
tax
shall
adopt
by
reference
the
10
applicable
provisions
of
the
appropriate
sections
of
chapter
11
423
.
All
powers
and
requirements
of
the
director
to
administer
12
the
state
sales
tax
law
and
use
tax
law
are
applicable
to
the
13
administration
of
a
local
sales
and
services
tax
law
and
the
14
local
excise
tax,
including
but
not
limited
to
the
provisions
15
of
section
422.25,
subsection
4
,
sections
422.30
,
422.67
,
16
and
422.68
,
section
422.69,
subsection
1
,
sections
422.70
17
through
422.75
,
section
423.14,
subsection
1
and
subsection
18
2
,
paragraphs
“b”
through
“e”
,
and
sections
423.14A,
423.15
,
19
423.23
,
423.24
,
423.25
,
423.31
through
423.35
,
423.37
through
20
423.42
,
423.46
,
and
423.47
.
Local
officials
shall
confer
21
with
the
director
of
revenue
for
assistance
in
drafting
the
22
ordinance
imposing
a
local
sales
and
services
tax.
A
certified
23
copy
of
the
ordinance
shall
be
filed
with
the
director
as
soon
24
as
possible
after
passage.
25
Sec.
175.
LEGISLATIVE
INTENT.
It
is
the
intent
of
the
26
general
assembly
that
the
provisions
of
this
division
of
this
27
Act
amending
the
definition
of
“place
of
business”
in
section
28
423.1,
subsection
37,
and
“sales”
in
section
423.1,
subsection
29
50,
enacting
definitions
of
“sold
at
retail
in
the
state”
in
30
section
423.1,
subsection
55A,
and
“subscription”
in
section
31
423.1,
subsection
57A,
are
conforming
amendments
consistent
32
with
current
state
law,
and
that
the
amendments
do
not
change
33
the
application
of
current
law
but
instead
reflect
current
law
34
both
before
and
after
the
enactment
of
this
division
of
this
35
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Act.
1
Sec.
176.
EFFECTIVE
DATE.
2
1.
Except
as
provided
in
subsection
2,
this
division
of
this
3
Act
takes
effect
January
1,
2019.
4
2.
The
following
take
effect
July
1,
2018:
5
a.
The
sections
of
this
division
of
this
Act
amending
6
section
423.1,
subsections
37
and
50.
7
b.
The
sections
of
this
division
of
this
Act
enacting
8
section
423.1,
subsections
55A
and
57A.
9
c.
The
section
of
this
division
of
this
Act
amending
section
10
423.2,
subsection
1,
paragraph
“a”,
subparagraph
(1).
11
d.
The
provisions
adding
photography
and
retouching
to
the
12
list
of
enumerated
services
subject
to
the
sales
tax
in
the
13
section
of
this
division
of
this
Act
amending
section
423.2,
14
subsection
6.
15
e.
The
section
of
this
division
of
this
Act
enacting
section
16
423.2,
subsection
8,
paragraph
“d”.
17
f.
The
section
of
this
division
of
this
Act
amending
section
18
423.5,
subsection
1,
paragraph
“a”.
19
g.
The
section
of
this
division
of
this
Act
entitled
20
“legislative
intent”
which
describes
the
intent
of
the
general
21
assembly
with
respect
to
certain
amendments
in
this
division
of
22
this
Act
to
the
definition
of
“place
of
business”
in
section
23
423.1,
subsection
37,
“sales”
in
section
423.1,
subsection
50,
24
the
enactment
of
a
definition
for
“subscription”
in
section
25
423.1,
subsection
57A,
and
“sold
at
retail”
in
section
423.1,
26
subsection
55A.
27
DIVISION
VII
28
HOTEL
AND
MOTEL
EXCISE
TAX
AND
AUTOMOBILE
RENTAL
EXCISE
TAX
29
CHANGES
30
Sec.
177.
Section
423A.2,
subsection
1,
Code
2018,
is
31
amended
to
read
as
follows:
32
1.
For
the
purposes
of
this
chapter
,
unless
the
context
33
otherwise
requires:
34
a.
“Department”
means
the
department
of
revenue.
35
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b.
“Lessor”
means
any
of
the
following:
1
(1)
A
person
engaged
in
the
business
of
renting
lodging
to
2
users.
3
(2)
A
person
who
acquires
a
right
to
or
interest
in
any
4
lodging
with
an
intent
to
rent
the
lodging
to
another
person.
5
(3)
A
person
who
actually
or
constructively
rents
lodging,
6
regardless
of
who
owns
or
controls
the
lodging.
7
(4)
A
lodging
facilitator.
8
(5)
A
retailer
or
retailer
maintaining
a
place
of
business
9
in
this
state
as
defined
in
section
423.1,
including
those
10
persons
who
meet
the
requirements
of
section
423.14A,
which
11
retailer
or
retailer
maintaining
a
place
of
business
in
this
12
state
would
be
responsible
for
collection
and
payment
of
the
13
hotel
and
motel
tax
if
it
were
a
sales
or
use
tax
under
chapter
14
423.
15
c.
“Lodging”
means
rooms,
apartments,
or
sleeping
quarters
16
in
a
hotel,
motel,
inn,
public
lodging
house,
rooming
house,
17
cabin,
apartment,
residential
property,
or
manufactured
or
18
mobile
home
which
is
tangible
personal
property,
or
in
a
19
tourist
court,
or
in
any
place
where
sleeping
accommodations
20
are
furnished
to
transient
guests
for
rent,
whether
with
or
21
without
meals.
Lodging
does
not
include
rooms
that
are
not
22
used
for
sleeping
accommodations.
23
d.
“Lodging
facilitator”
means
any
person
who
facilitates
24
the
renting
of
lodging
to
users
by
satisfying
subparagraphs
(1)
25
and
(2)
as
follows:
26
(1)
The
person
directly
or
indirectly
does
any
of
the
27
following:
28
(a)
Lists,
makes
available,
or
advertises
lodging
for
rent
29
by
a
lessor
in
any
forum.
30
(b)
Transmits
or
otherwise
communicates
an
offer
or
31
acceptance
between
a
lessor
or
user.
32
(c)
Owns,
rents,
licenses,
makes
available,
or
operates
any
33
electronic
or
physical
infrastructure
or
any
property,
process,
34
method,
copyright,
trademark,
or
patent
that
connects
lessors
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and
users
to
each
other.
1
(d)
Provides
a
platform
or
other
marketplace
for
renting
2
lodging
or
otherwise
facilitates
the
renting
of
lodging,
3
regardless
of
ownership
or
control
of
the
lodging.
4
(e)
Provides
software
development
or
research
and
5
development
activities
related
to
any
activity
described
in
6
this
subparagraph
(1),
if
such
software
development
or
research
7
and
development
activities
are
directly
related
to
the
physical
8
or
electronic
marketplace
provided
by
a
lodging
facilitator.
9
(f)
Provides
or
offers
fulfillment
or
storage
services
for
a
10
lessor.
11
(g)
Sets
prices
for
a
lessor’s
rental
of
lodging.
12
(h)
Provides
or
offers
customer
service
to
a
lessor
or
13
a
lessor’s
customers,
or
accepts
or
assists
with
returns,
14
exchanges,
cancellations,
or
rescheduling
of
the
rental
of
15
lodging
by
a
lessor.
16
(2)
The
person
directly
or
indirectly
does
any
of
the
17
following:
18
(a)
Collects
the
sales
price
for
the
renting
of
the
lodging.
19
(b)
Provides
payment
processing
services
for
the
renting
of
20
lodging.
21
(c)
Charges,
collects,
or
otherwise
receives
booking
fees,
22
advertising
revenues,
or
other
consideration
from
the
renting
23
of
lodging
or
the
facilitation
of
the
renting
of
lodging,
24
regardless
of
ownership
or
control
of
the
lodging.
25
(d)
Through
terms
and
conditions,
agreements,
or
26
arrangements
with
a
third
party,
collects
payment
in
connection
27
with
a
rental
of
lodging
from
a
user
and
transmits
that
payment
28
to
the
lessor,
regardless
of
whether
the
person
collecting
29
and
transmitting
such
payment
receives
compensation
or
other
30
consideration
in
exchange
for
the
service.
31
(e)
Provides
a
virtual
currency
that
users
are
allowed
or
32
required
to
use
to
rent
lodging.
33
d.
e.
“Person”
means
the
same
as
the
term
is
defined
in
34
section
423.1
.
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e.
f.
“Renting”
,
“rental”
,
or
“rent”
means
a
transfer
of
1
possession
or
control
of
lodging
for
a
fixed
or
indeterminate
2
term
for
consideration
and
includes
any
kind
of
direct
or
3
indirect
charge
for
such
lodging
or
its
use.
4
f.
g.
“Sales
price”
means
the
consideration
for
renting
of
5
lodging
and
means
the
same
as
the
term
is
defined
in
section
6
423.1
all
direct
or
indirect
consideration,
including
but
7
not
limited
to
cash,
credit,
property,
and
services,
paid
in
8
connection
with
any
charge
of
any
description
associated
with
9
the
renting
of
lodging
or
with
communicating,
negotiating,
10
reserving,
booking,
facilitating,
or
otherwise
arranging
to
11
rent
lodging,
including
but
not
limited
to
booking
fees,
12
reservation
fees,
service
fees,
cleaning
fees,
linen
fees,
13
towel
fees,
and
nonrefundable
deposits
.
When
determining
“sales
14
price”
,
no
deduction
shall
be
taken
for
any
of
the
following:
15
(1)
The
lessor’s
cost
of
the
property
rented.
16
(2)
The
cost
of
materials
used,
labor
or
service
cost,
17
interest,
losses,
all
costs
of
transportation
to
the
lessor,
18
all
taxes
imposed
on
the
lessor,
or
any
other
expenses
of
the
19
lessor.
20
(3)
Charges
by
the
lessor
for
any
services
necessary
to
21
complete
the
rental
transaction.
22
g.
h.
“User”
means
a
person
to
whom
lodging
is
rented.
23
Sec.
178.
NEW
SECTION
.
423A.3A
Collection
and
remittance
by
24
lodging
facilitators
——
joint
and
several
liability.
25
If
a
transaction
for
the
rental
of
lodging
involves
both
a
26
lodging
facilitator
and
another
lessor,
all
of
the
following
27
shall
apply:
28
1.
The
lodging
facilitator
shall
collect
the
state-imposed
29
tax
under
section
423A.3
and
the
locally
imposed
tax
under
30
section
423A.4
on
the
entire
sales
price
paid
by
the
user,
31
regardless
of
the
amount
of
the
sales
price
that
will
32
ultimately
accrue
to
or
benefit
the
lodging
facilitator,
33
another
lessor,
or
any
other
person.
34
2.
The
lodging
facilitator
and
any
other
lessor
involved
35
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in
the
transaction
shall
be
jointly
and
severally
liable
for
1
collecting
and
remitting
the
tax
under
sections
423A.3
and
2
423A.4.
3
Sec.
179.
Section
423A.5,
Code
2018,
is
amended
to
read
as
4
follows:
5
423A.5
Exemptions.
6
1.
There
are
exempted
from
the
provisions
of
this
chapter
7
and
from
the
computation
of
any
amount
of
tax
imposed
by
8
section
423A.3
this
chapter
all
of
the
following:
9
a.
1.
The
sales
price
from
the
renting
of
lodging
which
is
10
rented
by
the
same
person
for
a
period
of
more
than
thirty-one
11
consecutive
days.
12
b.
2.
The
sales
price
from
the
renting
of
sleeping
rooms
13
in
dormitories
and
in
memorial
unions
at
all
universities
and
14
colleges
located
in
the
state
of
Iowa.
15
2.
There
is
exempted
from
the
provisions
of
this
chapter
and
16
from
the
computation
of
any
amount
of
tax
imposed
by
section
17
423A.4
all
of
the
following:
18
a.
The
sales
price
from
the
renting
of
lodging
or
rooms
19
exempt
under
subsection
1
.
20
b.
3.
The
sales
price
of
lodging
furnished
to
the
guests
of
21
a
religious
institution
if
the
property
is
exempt
under
section
22
427.1,
subsection
8
,
and
the
purpose
of
renting
is
to
provide
a
23
place
for
a
religious
retreat
or
function
and
not
a
place
for
24
transient
guests
generally.
25
Sec.
180.
Section
423A.6,
subsection
4,
Code
2018,
is
26
amended
to
read
as
follows:
27
4.
Section
422.25,
subsection
4
,
sections
422.30
,
422.67
,
28
and
422.68
,
section
422.69,
subsection
1
,
sections
422.70
,
29
422.71
,
422.72
,
422.74
,
and
422.75
,
section
423.14,
subsection
30
1
,
and
sections
423.23
,
423.24
,
423.25
,
423.31
,
423.33
,
31
423.35
,
423.37
through
423.42
,
and
423.47
,
consistent
with
the
32
provisions
of
this
chapter
,
apply
with
respect
to
the
taxes
33
authorized
under
this
chapter
,
in
the
same
manner
and
with
the
34
same
effect
as
if
the
state
and
local
hotel
and
motel
taxes
35
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were
retail
sales
taxes
within
the
meaning
of
those
statutes.
1
Notwithstanding
this
subsection
,
the
director
shall
provide
for
2
quarterly
filing
of
returns
and
for
other
than
quarterly
filing
3
of
returns
both
as
prescribed
in
section
423.31
.
The
director
4
may
require
all
persons
who
are
engaged
in
the
business
of
5
deriving
any
sales
price
subject
to
tax
under
this
chapter
to
6
register
with
the
department.
All
taxes
collected
under
this
7
chapter
by
a
retailer
,
lessor,
or
any
individual
other
person
8
are
deemed
to
be
held
in
trust
for
the
state
of
Iowa
and
the
9
local
jurisdictions
imposing
the
taxes.
10
Sec.
181.
Section
423C.2,
subsection
3,
Code
2018,
is
11
amended
to
read
as
follows:
12
3.
“Lessor”
means
a
any
of
the
following:
13
a.
A
person
engaged
in
the
business
of
renting
automobiles
14
to
users.
“Lessor”
includes
a
15
b.
A
motor
vehicle
dealer
licensed
pursuant
to
chapter
16
322
who
rents
automobiles
to
users.
For
this
purpose,
the
17
objective
of
making
a
profit
is
not
necessary
to
make
the
18
renting
activity
a
business.
19
c.
A
person
who
acquires
a
right
to
or
interest
in
any
20
automobile
with
an
intent
to
rent
the
automobile
to
another
21
person.
22
d.
A
person
who
actually
or
constructively
rents
23
automobiles,
regardless
of
who
owns
or
controls
the
24
automobiles.
25
e.
A
rental
facilitator.
26
f.
A
retailer
or
retailer
maintaining
a
place
of
business
in
27
this
state
as
defined
in
section
423.1,
including
those
persons
28
who
meet
the
requirements
of
section
423.14A,
which
retailer
or
29
retailer
maintaining
a
place
of
business
in
this
state
would
be
30
responsible
for
collection
and
payment
of
the
automobile
rental
31
excise
tax
if
it
were
a
sales
or
use
tax
under
chapter
423.
32
Sec.
182.
Section
423C.2,
Code
2018,
is
amended
by
adding
33
the
following
new
subsection:
34
NEW
SUBSECTION
.
06.
“Rental
facilitator”
means
any
person
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who
facilitates
the
renting
of
an
automobile
to
users
by
1
satisfying
paragraphs
“a”
and
“b”
as
follows:
2
a.
The
person
directly
or
indirectly
does
any
of
the
3
following:
4
(1)
Lists,
makes
available,
or
advertises
automobiles
for
5
rent
by
a
lessor
in
any
forum.
6
(2)
Transmits
or
otherwise
communicates
an
offer
or
7
acceptance
between
a
lessor
or
user.
8
(3)
Owns,
rents,
licenses,
makes
available,
or
operates
any
9
electronic
or
physical
infrastructure
or
any
property,
process,
10
method,
copyright,
trademark,
or
patent
that
connects
lessors
11
and
users
to
each
other.
12
(4)
Provides
a
platform
or
other
marketplace
for
13
renting
automobiles
or
otherwise
facilitates
the
renting
14
of
automobiles,
regardless
of
ownership
or
control
of
the
15
automobile.
16
(5)
Provides
software
development
or
research
and
17
development
activities
related
to
any
activity
described
in
18
this
paragraph
“a”
,
if
such
software
development
or
research
and
19
development
activities
are
directly
related
to
the
physical
or
20
electronic
marketplace
provided
by
a
rental
facilitator.
21
(6)
Provides
or
offers
fulfillment
or
storage
services
for
a
22
lessor.
23
(7)
Sets
prices
for
a
lessor’s
rental
of
automobiles.
24
(8)
Provides
or
offers
customer
service
to
a
lessor
or
25
a
lessor’s
customers,
or
accepts
or
assists
with
returns,
26
exchanges,
cancellations,
or
rescheduling
of
the
rental
of
27
automobiles
by
a
lessor.
28
b.
The
person
directly
or
indirectly
does
any
of
the
29
following:
30
(1)
Collects
the
rental
price
for
the
renting
of
an
31
automobile.
32
(2)
Provides
payment
processing
services
for
the
renting
of
33
an
automobile.
34
(3)
Charges,
collects,
or
otherwise
receives
booking
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fees,
advertising
revenues,
or
other
consideration
from
the
1
renting
of
an
automobile
or
the
facilitation
of
the
renting
2
of
an
automobile,
regardless
of
ownership
or
control
of
the
3
automobile.
4
(4)
Through
terms
and
conditions,
agreements,
or
5
arrangements
with
a
third
party,
collects
payment
in
connection
6
with
a
rental
of
automobiles
from
a
user
and
transmits
that
7
payment
to
the
lessor,
regardless
of
whether
the
person
8
collecting
and
transmitting
such
payment
receives
compensation
9
or
other
consideration
in
exchange
for
the
service.
10
(5)
Provides
a
virtual
currency
that
users
are
allowed
or
11
required
to
use
to
rent
automobiles.
12
Sec.
183.
Section
423C.2,
subsection
6,
Code
2018,
is
13
amended
by
striking
the
subsection
and
inserting
in
lieu
14
thereof
the
following:
15
6.
“Rental
price”
means
all
direct
or
indirect
16
consideration,
including
but
not
limited
to
cash,
credit,
17
property,
and
services,
paid
in
connection
with
any
charge
of
18
any
description
associated
with
the
renting
of
an
automobile
19
or
with
communicating,
negotiating,
reserving,
booking,
20
facilitating,
or
otherwise
arranging
to
rent
an
automobile,
21
including
but
not
limited
to
booking
fees,
reservation
fees,
22
service
fees,
and
nonrefundable
deposits.
When
determining
23
“rental
price”
,
no
deduction
shall
be
taken
for
any
of
the
24
following:
25
a.
The
lessor’s
cost
of
the
property
rented.
26
b.
The
cost
of
materials
used,
labor
or
service
cost,
27
interest,
losses,
all
costs
of
transportation
to
the
lessor,
28
all
taxes
imposed
on
the
lessor,
or
any
other
expenses
of
the
29
lessor.
30
c.
Charges
by
the
lessor
for
any
services
necessary
to
31
complete
the
rental
transaction.
32
Sec.
184.
NEW
SECTION
.
423C.3A
Collection
and
remittance
by
33
rental
facilitators
——
joint
and
several
liability.
34
If
a
transaction
for
the
rental
of
an
automobile
involves
35
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both
a
rental
facilitator
and
another
lessor,
all
of
the
1
following
shall
apply:
2
1.
The
rental
facilitator
shall
collect
the
tax
under
3
section
423C.3
on
the
entire
rental
price
paid
by
the
user,
4
regardless
of
the
amount
of
the
rental
price
that
will
5
ultimately
accrue
to
or
benefit
the
rental
facilitator,
another
6
lessor,
or
any
other
person.
7
2.
The
rental
facilitator
and
any
other
lessor
involved
8
in
the
transaction
shall
be
jointly
and
severally
liable
for
9
collecting
and
remitting
the
tax
under
section
423C.3.
10
Sec.
185.
LEGISLATIVE
INTENT.
It
is
the
intent
of
the
11
general
assembly
that
the
provision
of
this
division
of
this
12
Act
amending
the
definition
of
“lodging”
in
section
423A.2,
13
subsection
1,
paragraph
“c”,
is
a
conforming
amendment
14
consistent
with
current
state
law,
and
that
the
amendment
15
does
not
change
the
application
of
current
law
but
instead
16
reflects
current
law
both
before
and
after
the
enactment
of
17
this
division
of
this
Act.
18
Sec.
186.
EFFECTIVE
DATE.
19
1.
Except
as
provided
in
subsection
2,
this
division
of
this
20
Act
takes
effect
January
1,
2019.
21
2.
The
following
take
effect
July
1,
2018:
22
a.
The
provision
amending
the
definition
of
“lodging”
in
the
23
section
of
this
division
of
this
Act
amending
section
423A.2,
24
subsection
1,
paragraph
“c”.
25
b.
The
section
of
this
division
of
this
Act
entitled
26
“legislative
intent”
which
describes
the
intent
of
the
general
27
assembly
with
respect
to
the
amendment
in
this
division
of
28
this
Act
to
the
definition
of
“lodging”
in
section
423A.2,
29
subsection
1,
paragraph
“c”.
30
<
DIVISION
VIII
31
MISCELLANEOUS
TAX
PROVISIONS
32
Sec.
187.
NEW
SECTION
.
421.71
Class
actions
——
implied
33
right
of
action
——
private
cause
of
action
immunity.
34
1.
Class
actions
prohibited.
No
class
action
may
be
brought
35
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against
the
department,
a
taxpayer,
or
a
person
required
to
1
collect
any
tax
imposed
under
this
title,
in
any
court,
agency,
2
or
other
adjudicative
body,
or
in
any
other
forum,
based
on
3
any
act
or
omission
arising
from
or
related
to
any
provision
4
of
this
title.
5
2.
No
implied
right
of
action.
Nothing
in
this
Title
shall
6
be
construed
as
creating
or
providing
an
implied
private
right
7
of
action
or
any
private
common
law
claim
against
any
taxpayer,
8
or
against
any
person
required
to
collect
any
tax
imposed
under
9
this
Title,
in
any
court,
agency,
or
other
adjudicative
body,
10
or
in
any
other
forum.
This
subsection
shall
not
apply
to
or
11
otherwise
limit
any
claim,
action,
mandate,
power,
remedy,
or
12
discretion
of
the
department,
or
an
agent
or
designee
of
the
13
department.
14
3.
Private
cause
of
action
immunity
for
overpayment
of
15
certain
taxes.
16
a.
A
taxpayer,
or
any
person
required
to
collect
taxes
17
imposed
under
chapters
423,
423A,
423B,
423C,
and
423D,
and
18
chapter
423G,
as
enacted
in
2018
Iowa
Acts,
Senate
File
512,
19
shall
be
immune
from
any
private
cause
of
action
arising
from
20
or
related
to
the
overpayment
of
taxes
imposed
under
chapters
21
423,
423A,
423B,
423C,
and
423D,
and
chapter
423G,
as
enacted
22
in
2018
Iowa
Acts,
Senate
File
512,
that
are
collected
and
23
remitted
to
the
department.
24
b.
Nothing
in
this
subsection
shall
apply
to
or
otherwise
25
limit
any
of
the
following:
26
(1)
Any
claim,
action,
mandate,
power,
remedy,
or
27
discretion
of
the
department,
or
an
agent
or
designee
of
the
28
department.
29
(2)
A
taxpayer’s
right
to
seek
a
refund
from
the
department
30
related
to
taxes
imposed
under
chapters
423,
423A,
423B,
31
423C,
and
423D,
and
chapter
423G,
as
enacted
in
2018
Iowa
32
Acts,
Senate
File
512,
that
are
collected
from
or
paid
by
the
33
taxpayer.
34
Sec.
188.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
35
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deemed
of
immediate
importance,
takes
effect
upon
enactment.
>
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