Text: HF00158 Text: HF00160 Text: HF00100 - HF00199 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 422.42, Code 1995, is amended by adding 1 2 the following new subsections and renumbering current 1 3 subsections as necessary: 1 4 NEW SUBSECTION. 1. "Agricultural production" includes the 1 5 production of flowering, ornamental, or vegetable plants in 1 6 commercial greenhouses or otherwise. "Agricultural products" 1 7 include flowering, ornamental, or vegetable plants. 1 8 NEW SUBSECTION. 2A. "Farm machinery and equipment" means 1 9 machinery and equipment used in agricultural production. 1 10 Sec. 2. Section 422.42, subsection 11, Code 1995, is 1 11 amended to read as follows: 1 12 11. "Retail sale" or "sale at retail" means the sale to a 1 13 consumer or to any person for any purpose, other than for 1 14 processing, for resale of tangible personal property or 1 15 taxable services, or for resale of tangible personal property 1 16 in connection with taxable services; and includes the sale of 1 17 gas, electricity, water, and communication service to retail 1 18 consumers or users; but does not include agricultural breeding 1 19 livestock and domesticated fowl; and does not include 1 20 commercial fertilizer, agricultural limestone, herbicide, 1 21 pesticide, insecticide, food, medication, or agricultural 1 22 drain tile, including installation of agricultural drain tile, 1 23 any of which are to be used in disease control, weed control, 1 24 insect control, or health promotion of plants or livestock 1 25 produced as part of agricultural production for market; and 1 26 does not include electricity, steam, or any taxable service 1 27 when purchased and used in the processing of tangible personal 1 28 property intended to be sold ultimately at retail. When used 1 29 by a manufacturer of food products, carbon dioxide in a 1 30 liquid, solid, or gaseous form, electricity, steam, and other 1 31 taxable services are sold for processing when used to produce 1 32 marketable food products for human consumption, including but 1 33 not limited to, treatment of material to change its form, 1 34 context, or condition, in order to produce the food product, 1 35 maintenance of quality or integrity of the food product, 2 1 changing or maintenance of temperature levels necessary to 2 2 avoid spoilage or to hold the food product in marketable 2 3 condition, maintenance of environmental conditions necessary 2 4 for the safe or efficient use of machinery and material used 2 5 to produce the food product, sanitation and quality control 2 6 activities, formation of packaging, placement into shipping 2 7 containers, and movement of the material or food product until 2 8 shipment from the building of manufacture. Tangible personal 2 9 property is sold for processing within the meaning of this 2 10 subsection only when it is intended that the property will, by 2 11 means of fabrication, compounding, manufacturing, or 2 12 germination become an integral part of other tangible personal 2 13 property intended to be sold ultimately at retail; or will be 2 14 consumed as fuel in creating heat, power, or steam for 2 15 processing including grain drying, or for providing heat or 2 16 cooling for livestock buildings or for greenhouses or 2 17 buildings or parts of buildings dedicated to the production of 2 18 flowering, ornamental, or vegetable plants intended for sale 2 19 in the ordinary course of business, or for generating electric 2 20 current, or in implements of husbandry engaged in agricultural 2 21 production; or the property is a chemical, solvent, sorbent, 2 22 or reagent, which is directly used and is consumed, 2 23 dissipated, or depleted, in processing personal property which 2 24 is intended to be sold ultimately at retail or consumed in the 2 25 maintenance or repair of fabric or clothing, and which may not 2 26 become a component or integral part of the finished product. 2 27 The distribution to the public of free newspapers or shoppers 2 28 guides is a retail sale for purposes of the processing 2 29 exemption. 2 30 Sec. 3. Section 422.45, subsection 39, paragraphs a and c, 2 31 Code 1995, are amended to read as follows: 2 32 a. The implement, machinery, or equipment is directly and 2 33 primarily used in livestock or dairy production or in the 2 34 production of flowering, ornamental, or vegetable plants. 2 35 c. The replacement part is essential to any repair or 3 1 reconstruction necessary to the farm machinery's or 3 2 equipment's exempt use in livestock or dairy production or in 3 3 the production of flowering, ornamental, or vegetable plants. 3 4 Sec. 4. Section 422.47, subsection 4, paragraph f, Code 3 5 1995, is amended to read as follows: 3 6 f. In this section, "fuel" includes gas, electricity, 3 7 water, heat, steam, and any other tangible personal property 3 8 consumed in creating heat, power, or steam. In this section, 3 9 "fuel consumed in processing" means fuel used or disposed of 3 10 for processing including grain drying, for providing heat or 3 11 cooling for livestock buildings or for greenhouses or 3 12 buildings or parts of buildings dedicated to the production of 3 13 flowering, ornamental, or vegetable plants intended for sale 3 14 in the ordinary course of business, or for generating electric 3 15 current, or in implements of husbandry engaged in agricultural 3 16 production. In this subsection, "fuel exemption certificate" 3 17 means an exemption certificate given by the purchaser under 3 18 penalty of perjury to assist retailers in properly accounting 3 19 for nontaxable sales of fuel consumed in processing. In this 3 20 subsection, "substantial change" means a change in the use or 3 21 disposition of tangible personal property and services by the 3 22 purchaser such that the purchaser pays less than ninety 3 23 percent of the purchaser's actual sales tax liability. A 3 24 change includes a misstatement of facts in an application made 3 25 pursuant to paragraph "c" or in a fuel exemption certificate. 3 26 EXPLANATION 3 27 This bill defines "agricultural production" and 3 28 "agricultural products" to include the production of 3 29 flowering, ornamental, or vegetable plants for the purpose of 3 30 the state sales tax. The bill defines "farm machinery and 3 31 equipment" as machinery and equipment used in agricultural 3 32 production. The bill exempts from sales taxation fuel used to 3 33 provide heat or cooling for greenhouses and buildings 3 34 dedicated to the production of flowering, ornamental, or 3 35 vegetable plants intended to be sold in the regular course of 4 1 business and non-self-propelled machinery and equipment used 4 2 in the production of flowering, ornamental, or vegetable 4 3 plants. Present law exempts only fuel used to heat or cool 4 4 livestock buildings and non-self-propelled machinery and 4 5 equipment used in livestock or dairy production. 4 6 LSB 1576HV 76 4 7 sc/cf/24
Text: HF00158 Text: HF00160 Text: HF00100 - HF00199 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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