Text: HF02480 Text: HF02482 Text: HF02400 - HF02499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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1 1 Section 1. Section 15.327, Code 1995, is amended by adding
1 2 the following new subsections:
1 3 NEW SUBSECTION. 1A. "Contractor or subcontractor" means a
1 4 person who contracts with the eligible business or a
1 5 supporting business or subcontracts with a contractor for the
1 6 provision of property, materials, or services for the
1 7 construction or equipping of a facility, located within the
1 8 economic development area, of the eligible business or a
1 9 supporting business.
1 10 NEW SUBSECTION. 3A. "Economic development area" means a
1 11 site or sites designated by the department of economic
1 12 development for the purpose of attracting an eligible business
1 13 and supporting businesses to locate facilities within the
1 14 state.
1 15 NEW SUBSECTION. 6. "Project completion" means the first
1 16 date upon which the average annualized production of finished
1 17 product for the preceding ninety-day period at the
1 18 manufacturing facility operated by the eligible business
1 19 within the economic development area is at least fifty percent
1 20 of the initial design capacity of the facility. The eligible
1 21 business shall inform the department of revenue and finance in
1 22 writing within two weeks of project completion.
1 23 NEW SUBSECTION. 7. "Supporting business" means a business
1 24 under contract with the eligible business to provide property,
1 25 materials, or services which are a necessary component of the
1 26 operation of the manufacturing facility. To qualify as a
1 27 supporting business, the business shall have a permanent
1 28 facility or operations located within the economic development
1 29 area and the revenue from fulfilling the contract with the
1 30 eligible business shall constitute at least seventy-five
1 31 percent of the revenue generated by the business from all
1 32 activities undertaken from the facility within the economic
1 33 development area.
1 34 Sec. 2. NEW SECTION. 15.331A SALES, SERVICE, AND USE TAX
1 35 REFUND – CONTRACTOR OR SUBCONTRACTOR.
2 1 The eligible business or a supporting business shall be
2 2 entitled to a refund of the taxes paid under chapters 422 and
2 3 423 for gas, electricity, water, or sewer utility services,
2 4 goods, wares, or merchandise, or on services rendered,
2 5 furnished, or performed to or for a contractor or
2 6 subcontractor and used in the fulfillment of a written
2 7 contract relating to the construction or equipping of a
2 8 facility within the economic development area of the eligible
2 9 business or a supporting business. Taxes attributable to
2 10 intangible property and furniture and furnishings shall not be
2 11 refunded.
2 12 To receive the refund a claim shall be filed by the
2 13 eligible business or a supporting business with the department
2 14 of revenue and finance as follows:
2 15 a. The contractor or subcontractor shall state under oath,
2 16 on forms provided by the department, the amount of the sales
2 17 of goods, wares, or merchandise or services rendered,
2 18 furnished, or performed including water, sewer, gas, and
2 19 electric utility services for use in the economic development
2 20 area upon which sales or use tax has been paid prior to the
2 21 project completion, and shall file the forms with the eligible
2 22 business or supporting business before final settlement is
2 23 made.
2 24 b. The eligible business or a supporting business shall,
2 25 not more than six months after project completion, make
2 26 application to the department for any refund of the amount of
2 27 the taxes paid pursuant to chapter 422 or 423 upon any goods,
2 28 wares, or merchandise, or services rendered, furnished, or
2 29 performed, including water, sewer, gas, and electric utility
2 30 services. The application shall be made in the manner and
2 31 upon forms to be provided by the department, and the
2 32 department shall audit the claim and, if approved, issue a
2 33 warrant to the eligible business or supporting business in the
2 34 amount of the sales or use tax which has been paid to the
2 35 state of Iowa under a contract. A claim filed by the eligible
3 1 business or a supporting business in accordance with this
3 2 subsection shall not be denied by reason of a limitation
3 3 provision set forth in chapter 421, 422, or 423.
3 4 c. A contractor or subcontractor who willfully makes a
3 5 false report of tax paid under the provisions of this
3 6 subsection is guilty of a simple misdemeanor and in addition
3 7 is liable for the payment of the tax and any applicable
3 8 penalty and interest.
3 9 Sec. 3. NEW SECTION. 15.334A SALES AND USE TAX
3 10 EXEMPTION.
3 11 An eligible business may claim an exemption from sales and
3 12 use taxation under section 422.45, subsection 27, for property
3 13 which is exempt from taxation under section 15.334,
3 14 notwithstanding the requirements of section 422.45, subsection
3 15 27, or any other provision of the Code to the contrary.
3 16 Sec. 4. Section 15.335, unnumbered paragraph 2, Code 1995,
3 17 is amended by striking the unnumbered paragraph and inserting
3 18 in lieu thereof the following:
3 19 Any credit in excess of the tax liability for the taxable
3 20 year shall be refunded with interest computed under section
3 21 422.25. In lieu of claiming a refund, a taxpayer may elect to
3 22 have the overpayment shown on its final, completed return
3 23 credited to the tax liability for the following year.
3 24 Sec. 5. NEW SECTION. 15.337 WAIVER OF PROGRAM
3 25 QUALIFICATION REQUIREMENTS.
3 26 A community may request the waiver of the capital
3 27 investment requirement or the requirement for number of
3 28 positions created under section 15.329. However, in no event
3 29 shall the minimum number of jobs created be less than fifteen
3 30 or the minimum capital investment be less than three million
3 31 dollars per application under the program. The department
3 32 shall develop an appropriate formula of minimum jobs created
3 33 and capital investment required per program application which
3 34 can be authorized under the waiver. The department may grant
3 35 a waiver for good cause shown and approve the program
4 1 application.
4 2 As used in this section, "good cause shown" includes but is
4 3 not limited to a demonstrated lack of growth in the community,
4 4 a significant percentage of persons in the community who have
4 5 incomes at or below the poverty level, community unemployment
4 6 rate higher than the state average, a unique opportunity to
4 7 use existing unutilized or underutilized facilities in the
4 8 community, or an immediate threat posed to the community's
4 9 workforce due to business downsizing or closure.
4 10 The department shall not grant a waiver under this section
4 11 after June 30, 1998.
4 12 HF 2481
4 13 mk/pk/25
Text: HF02480 Text: HF02482 Text: HF02400 - HF02499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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