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PAG LIN 1 1 Section 1. Section 257.1, subsection 2, unnumbered 1 2 paragraph 2, Code 1995, is amended to read as follows: 1 3 For the budget year commencing July 1,19911995, and for 1 4 each succeeding budget year the regular program foundation 1 5 base per pupil iseighty-threeninety-five percent of the 1 6 regular program state cost per pupil, except that the regular 1 7 program foundation base per pupil for the portion of weighted 1 8 enrollment that is additional enrollment because of special 1 9 education isseventy-nineninety-one percent of the regular 1 10 program state cost per pupil. For the budget year commencing 1 11 July 1,19911995, and for each succeeding budget year the 1 12 special education support services foundation base isseventy-1 13nineninety-one percent of the special education support 1 14 services state cost per pupil. The combined foundation base 1 15 is the sum of the regular program foundation base and the 1 16 special education support services foundation base. 1 17 Sec. 2. Section 327I.26, Code 1995, is amended to read as 1 18 follows: 1 19 327I.26 APPROPRIATION TO AUTHORITY. 1 20 Notwithstanding section 423.24 and prior to the application 1 21 of section 423.24, subsection 1, paragraph "d", there shall be 1 22 deposited into the general fund of the state and is 1 23 appropriated to the authority fromeighty percenttwo-thirds 1 24 of the revenues derived from the operation of section 423.7 1 25 the amounts certified by the authority under section 327I.25. 1 26 However, the total amount deposited into the general fund and 1 27 appropriated to the Iowa railway finance authority under this 1 28 section shall not exceed two million dollars annually. Moneys 1 29 appropriated to the Iowa railway finance authority under this 1 30 section are appropriated only for the payment of principal and 1 31 interest on obligations or the payment of leases guaranteed by 1 32 the authority as provided under section 327I.25. 1 33 Sec. 3. Section 422.43, subsections 1, 2, 4, 5, 6, 7, and 1 34 10, Code 1995, are amended to read as follows: 1 35 1. There is imposed a tax offivesix percent upon the 2 1 gross receipts from all sales of tangible personal property, 2 2 consisting of goods, wares, or merchandise, except as 2 3 otherwise provided in this division, sold at retail in the 2 4 state to consumers or users; a like rate of tax upon the gross 2 5 receipts from the sales, furnishing, or service of gas, 2 6 electricity, water, heat, pay television service, and 2 7 communication service, including the gross receipts from such 2 8 sales by any municipal corporation or joint water utility 2 9 furnishing gas, electricity, water, heat, pay television 2 10 service, and communication service to the public in its 2 11 proprietary capacity, except as otherwise provided in this 2 12 division, when sold at retail in the state to consumers or 2 13 users; a like rate of tax upon the gross receipts from all 2 14 sales of tickets or admissions to places of amusement, fairs, 2 15 and athletic events except those of elementary and secondary 2 16 educational institutions; a like rate of tax on the gross 2 17 receipts from an entry fee or like charge imposed solely for 2 18 the privilege of participating in an activity at a place of 2 19 amusement, fair, or athletic event unless the gross receipts 2 20 from the sales of tickets or admissions charges for observing 2 21 the same activity are taxable under this division; and a like 2 22 rate of tax upon that part of private club membership fees or 2 23 charges paid for the privilege of participating in any 2 24 athletic sports provided club members. 2 25 2. There is imposed a tax offivesix percent upon the 2 26 gross receipts derived from the operation of all forms of 2 27 amusement devices and games of skill, games of chance, 2 28 raffles, and bingo games as defined in chapter 99B, operated 2 29 or conducted within the state, the tax to be collected from 2 30 the operator in the same manner as for the collection of taxes 2 31 upon the gross receipts of tickets or admission as provided in 2 32 this section. The tax shall also be imposed upon the gross 2 33 receipts derived from the sale of lottery tickets or shares 2 34 pursuant to chapter 99E. The tax on the lottery tickets or 2 35 shares shall be included in the sales price and distributed to 3 1 the general fund as provided in section 99E.10. 3 2 4. There is imposed a tax offivesix percent upon the 3 3 gross receipts from the sales of engraving, photography, 3 4 retouching, printing, and binding services. For the purpose 3 5 of this division, the sales of engraving, photography, 3 6 retouching, printing, and binding services are sales of 3 7 tangible property. 3 8 5. There is imposed a tax offivesix percent upon the 3 9 gross receipts from the sales of vulcanizing, recapping, and 3 10 retreading services. For the purpose of this division, the 3 11 sales of vulcanizing, recapping, and retreading services are 3 12 sales of tangible property. 3 13 6. There is imposed a tax offivesix percent upon the 3 14 gross receipts from the sales of optional service or warranty 3 15 contracts which provide for the furnishing of labor and 3 16 materials and require the furnishing of any taxable service 3 17 enumerated under this section. The gross receipts are subject 3 18 to tax even if some of the services furnished are not 3 19 enumerated under this section. For the purpose of this 3 20 division, the sale of an optional service or warranty contract 3 21 is a sale of tangible personal property. Additional sales, 3 22 services, or use taxes shall not be levied on services, parts, 3 23 or labor provided under optional service or warranty contracts 3 24 which are subject to tax under this section. 3 25 7. There is imposed a tax offivesix percent upon the 3 26 gross receipts from the renting of rooms, apartments, or 3 27 sleeping quarters in a hotel, motel, inn, public lodging 3 28 house, rooming house, mobile home which is tangible personal 3 29 property, or tourist court, or in any place where sleeping 3 30 accommodations are furnished to transient guests for rent, 3 31 whether with or without meals. "Renting" and "rent" include 3 32 any kind of direct or indirect charge for such rooms, 3 33 apartments, or sleeping quarters, or their use. For the 3 34 purposes of this division, such renting is regarded as a sale 3 35 of tangible personal property at retail. However, this tax 4 1 does not apply to the gross receipts from the renting of a 4 2 room, apartment, or sleeping quarters while rented by the same 4 3 person for a period of more than thirty-one consecutive days. 4 4 10. There is imposed a tax offivesix percent upon the 4 5 gross receipts from the rendering, furnishing, or performing 4 6 of services as defined in section 422.42. 4 7 Sec. 4. Section 422.43, subsection 12, unnumbered 4 8 paragraph 1, Code 1995, is amended to read as follows: 4 9 A tax offivesix percent is imposed upon the gross 4 10 receipts from all sales of tangible personal property, 4 11 consisting of goods, wares, or merchandise, except as 4 12 otherwise provided in this division, sold at retail in the 4 13 state to consumers or users within the state by retailers that 4 14 meet any of the following criteria: 4 15 Sec. 5. Section 422.43, subsection 13, paragraph a, 4 16 unnumbered paragraph 1, Code 1995, is amended to read as 4 17 follows: 4 18 A tax offivesix percent is imposed upon the gross 4 19 receipts from the sales, furnishing, or service of solid waste 4 20 collection and disposal service. 4 21 Sec. 6. Section 422.47, subsection 2, Code 1995, is 4 22 amended to read as follows: 4 23 2. Construction contractors may make application to the 4 24 department for a refund of the additional one percent tax paid 4 25 under this division or the additional one percent tax paid 4 26 under chapter 423 by reason of the increase in the tax from 4 27four tofive to six percent for taxes paid on goods, wares, or 4 28 merchandise under the following conditions: 4 29 a. The goods, wares, or merchandise are incorporated into 4 30 an improvement to real estate in fulfillment of a written 4 31 contract fully executed prior to July 1,19921995. The 4 32 refund shall not apply to equipment transferred in fulfillment 4 33 of a mixed construction contract. 4 34 b. The contractor has paid to the department or to a 4 35 retailer the fullfivesix percent tax. 5 1 c. The claim is filed on forms provided by the department 5 2 and is filed within one year of the date the tax is paid. 5 3 A contractor who makes an erroneous application for refund 5 4 shall be liable for payment of the excess refund paid plus 5 5 interest at the rate in effect under section 421.7. In 5 6 addition, a contractor who willfully makes a false application 5 7 for refund is guilty of a simple misdemeanor and is liable for 5 8 a penalty equal to fifty percent of the excess refund claimed. 5 9 Excess refunds, penalties, and interest due under this 5 10 subsection may be enforced and collected in the same manner as 5 11 the tax imposed by this division. 5 12 Sec. 7. Section 422C.3, subsection 1, Code 1995, is 5 13 amended to read as follows: 5 14 1. A tax offivesix percent is imposed upon the rental 5 15 price of an automobile if the rental transaction is subject to 5 16 the sales and services tax under chapter 422, division IV, or 5 17 the use tax under chapter 423. The tax shall not be imposed 5 18 on any rental transaction not taxable under the state sales 5 19 and services tax, as provided in section 422.45, or the state 5 20 use tax, as provided in section 423.4, on automobile rental 5 21 receipts. 5 22 Sec. 8. Section 423.2, Code 1995, is amended to read as 5 23 follows: 5 24 423.2 IMPOSITION OF TAX. 5 25 An excise tax is imposed on the use in this state of 5 26 tangible personal property purchased for use in this state, at 5 27 the rate offivesix percent of the purchase price of the 5 28 property. The excise tax is imposed upon every person using 5 29 the property within this state until the tax has been paid 5 30 directly to the county treasurer or the state department of 5 31 transportation, to a retailer, or to the department. An 5 32 excise tax is imposed on the use in this state of services 5 33 enumerated in section 422.43 at the rate offivesix percent. 5 34 This tax is applicable where services are rendered, furnished, 5 35 or performed in this state or where the product or result of 6 1 the service is used in this state. This tax is imposed on 6 2 every person using the services or the product of the services 6 3 in this state until the user has paid the tax either to an 6 4 Iowa use tax permit holder or to the department. 6 5 Sec. 9. Section 423.24, subsection 1, unnumbered paragraph 6 6 1, Code 1995, is amended to read as follows: 6 7Eighty percentFive-sixths of all revenues derived from the 6 8 use tax on motor vehicles, trailers, and motor vehicle 6 9 accessories and equipment as collected pursuant to section 6 10 423.7 shall be deposited and credited as follows: 6 11 Sec. 10. Section 423.24, subsection 2, Code 1995, is 6 12 amended to read as follows: 6 13 2.Twenty percentOne-sixth of all revenue derived from 6 14 the use tax on motor vehicles, trailers, and motor vehicle 6 15 accessories and equipment as collected pursuant to section 6 16 423.7 shall be deposited in the GAAP deficit reduction account 6 17 established in the department of management pursuant to 6 18 section 8.57, subsection 2, and shall be used in accordance 6 19 with the provisions of that section. 6 20 Sec. 11. APPLICABILITY. This section applies in regard to 6 21 the increase in the state sales, services, and use taxes from 6 22 five to six percent. The six percent rate applies to all 6 23 sales of taxable personal property, consisting of goods, 6 24 wares, or merchandise if delivery occurs on or after July 1, 6 25 1995. The use tax rate of six percent applies to motor 6 26 vehicles subject to registration which are registered on or 6 27 after July 1, 1995. The six percent use tax rate applies to 6 28 the use of property when the first taxable use in this state 6 29 occurs on or after July 1, 1995. The six percent rate applies 6 30 to the gross receipts from the sale, furnishing, or service of 6 31 gas, electricity, water, heat, pay television service, and 6 32 communication service if the date of the billing the customer 6 33 is on or after July 1, 1995. In the case of a service 6 34 contract entered into prior to July 1, 1995, which contract 6 35 calls for periodic payments, the six percent rate applies to 7 1 those payments made or due on or after July 1, 1995. This 7 2 periodic payment applies, but is not limited to, tickets or 7 3 admissions, private club membership fees, sources of 7 4 amusement, equipment rental, dry cleaning, reducing salons, 7 5 dance schools, and all other services subject to tax, except 7 6 the aforementioned utility services which are subject to a 7 7 special transitional rule. Unlike periodic payments under 7 8 service contracts, installment sales of goods, wares, and 7 9 merchandise are subject to the full amount of sales or use tax 7 10 when the sales contract is entered into or the property is 7 11 first used in Iowa. 7 12 Sec. 12. Sections 2, 9, and 10 of this Act apply to the 7 13 revenues derived from the six percent use tax on motor 7 14 vehicles, trailers, and motor vehicle accessories and 7 15 equipment that are collected on and after July 1, 1995, 7 16 pursuant to section 423.7. 7 17 Sec. 13. Section 1 of this Act, being deemed of immediate 7 18 importance, takes effect upon enactment and applies to school 7 19 budget years commencing on or after July 1, 1995. 7 20 EXPLANATION 7 21 The bill increases the foundation base under the state 7 22 school foundation aid program from 83 to 95 percent of the 7 23 regular program state cost per pupil and from 79 to 91 percent 7 24 of the special education support services state cost per 7 25 pupil. This will result in an increase in state aid and a 7 26 reduction in property taxes. The bill also increases from 5 7 27 to 6 percent the state sales and use tax rates to provide 7 28 funding for the increased state aid payments. 7 29 The sales and use tax increases are effective July 1, 1995, 7 30 and the change in the foundation base is effective immediately 7 31 and applies to budget years commencing July 1, 1995. 7 32 LSB 2534YC 76 7 33 mg/jj/8
Text: HSB00314 Text: HSB00316 Text: HSB00300 - HSB00399 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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