Text: HF00025 Text: HF00027 Text: HF00000 - HF00099 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 422.43, subsections 1, 2, 4, 5, 6, 7, 1 2 and 10, Code 1997, are amended to read as follows: 1 3 1. There is imposed a tax offivefour percent upon the 1 4 gross receipts from all sales of tangible personal property, 1 5 consisting of goods, wares, or merchandise, except as 1 6 otherwise provided in this division, sold at retail in the 1 7 state to consumers or users; a like rate of tax upon the gross 1 8 receipts from the sales, furnishing, or service of gas, 1 9 electricity, water, heat, pay television service, and 1 10 communication service, including the gross receipts from such 1 11 sales by any municipal corporation or joint water utility 1 12 furnishing gas, electricity, water, heat, pay television 1 13 service, and communication service to the public in its 1 14 proprietary capacity, except as otherwise provided in this 1 15 division, when sold at retail in the state to consumers or 1 16 users; a like rate of tax upon the gross receipts from all 1 17 sales of tickets or admissions to places of amusement, fairs, 1 18 and athletic events except those of elementary and secondary 1 19 educational institutions; a like rate of tax on the gross 1 20 receipts from an entry fee or like charge imposed solely for 1 21 the privilege of participating in an activity at a place of 1 22 amusement, fair, or athletic event unless the gross receipts 1 23 from the sales of tickets or admissions charges for observing 1 24 the same activity are taxable under this division; and a like 1 25 rate of tax upon that part of private club membership fees or 1 26 charges paid for the privilege of participating in any 1 27 athletic sports provided club members. 1 28 2. There is imposed a tax offivefour percent upon the 1 29 gross receipts derived from the operation of all forms of 1 30 amusement devices and games of skill, games of chance, 1 31 raffles, and bingo games as defined in chapter 99B, operated 1 32 or conducted within the state, the tax to be collected from 1 33 the operator in the same manner as for the collection of taxes 1 34 upon the gross receipts of tickets or admission as provided in 1 35 this section. The tax shall also be imposed upon the gross 2 1 receipts derived from the sale of lottery tickets or shares 2 2 pursuant to chapter 99E. The tax on the lottery tickets or 2 3 shares shall be included in the sales price and distributed to 2 4 the general fund as provided in section 99E.10. 2 5 4. There is imposed a tax offivefour percent upon the 2 6 gross receipts from the sales of engraving, photography, 2 7 retouching, printing, and binding services. For the purpose 2 8 of this division, the sales of engraving, photography, 2 9 retouching, printing, and binding services are sales of 2 10 tangible property. 2 11 5. There is imposed a tax offivefour percent upon the 2 12 gross receipts from the sales of vulcanizing, recapping, and 2 13 retreading services. For the purpose of this division, the 2 14 sales of vulcanizing, recapping, and retreading services are 2 15 sales of tangible property. 2 16 6. There is imposed a tax offivefour percent upon the 2 17 gross receipts from the sales of optional service or warranty 2 18 contracts, except residential service contracts regulated 2 19 under chapter 523C, which provide for the furnishing of labor 2 20 and materials and require the furnishing of any taxable 2 21 service enumerated under this section. The gross receipts are 2 22 subject to tax even if some of the services furnished are not 2 23 enumerated under this section. For the purpose of this 2 24 division, the sale of an optional service or warranty 2 25 contract, other than a residential service contract regulated 2 26 under chapter 523C, is a sale of tangible personal property. 2 27 Additional sales, services, or use taxes shall not be levied 2 28 on services, parts, or labor provided under optional service 2 29 or warranty contracts which are subject to tax under this 2 30 section. 2 31 7. There is imposed a tax offivefour percent upon the 2 32 gross receipts from the renting of rooms, apartments, or 2 33 sleeping quarters in a hotel, motel, inn, public lodging 2 34 house, rooming house, mobile home which is tangible personal 2 35 property, or tourist court, or in any place where sleeping 3 1 accommodations are furnished to transient guests for rent, 3 2 whether with or without meals. "Renting" and "rent" include 3 3 any kind of direct or indirect charge for such rooms, 3 4 apartments, or sleeping quarters, or their use. For the 3 5 purposes of this division, such renting is regarded as a sale 3 6 of tangible personal property at retail. However, this tax 3 7 does not apply to the gross receipts from the renting of a 3 8 room, apartment, or sleeping quarters while rented by the same 3 9 person for a period of more than thirty-one consecutive days. 3 10 10. There is imposed a tax offivefour percent upon the 3 11 gross receipts from the rendering, furnishing, or performing 3 12 of services as defined in section 422.42. 3 13 Sec. 2. Section 422.43, subsection 13, paragraph a, 3 14 unnumbered paragraph 1, Code 1997, is amended to read as 3 15 follows: 3 16 a. A tax offivefour percent is imposed upon the gross 3 17 receipts from the sales, furnishing, or service of solid waste 3 18 collection and disposal service. 3 19 Sec. 3. Section 422C.3, subsection 1, Code 1997, is 3 20 amended to read as follows: 3 21 1. A tax offivefour percent is imposed upon the rental 3 22 price of an automobile if the rental transaction is subject to 3 23 the sales and services tax under chapter 422, division IV, or 3 24 the use tax under chapter 423. The tax shall not be imposed 3 25 on any rental transaction not taxable under the state sales 3 26 and services tax, as provided in section 422.45, or the state 3 27 use tax, as provided in section 423.4, on automobile rental 3 28 receipts. 3 29 Sec. 4. Section 423.2, Code 1997, is amended to read as 3 30 follows: 3 31 423.2 IMPOSITION OF TAX. 3 32 An excise tax is imposed on the use in this state of 3 33 tangible personal property purchased for use in this state, at 3 34 the rate offivefour percent of the purchase price of the 3 35 property. An excise tax is imposed on the use of leased 4 1 vehicles at the rate offivefour percent of the amount 4 2 otherwise subject to tax as calculated pursuant to section 4 3 423.7A. The excise tax is imposed upon every person using the 4 4 property within this state until the tax has been paid 4 5 directly to the county treasurer or the state department of 4 6 transportation, to a retailer, or to the department. An 4 7 excise tax is imposed on the use in this state of services 4 8 enumerated in section 422.43 at the rate offivefour percent. 4 9 This tax is applicable where services are rendered, furnished, 4 10 or performed in this state or where the product or result of 4 11 the service is used in this state. This tax is imposed on 4 12 every person using the services or the product of the services 4 13 in this state until the user has paid the tax either to an 4 14 Iowa use tax permit holder or to the department. 4 15 Sec. 5. APPLICABILITY. This section applies in regard to 4 16 the decrease in the state sales, services, and use taxes from 4 17 five to four percent. The four percent rate applies to all 4 18 sales of taxable personal property, consisting of goods, 4 19 wares, or merchandise if delivery occurs on or after July 1, 4 20 1997. The use tax rate of four percent applies to motor 4 21 vehicles subject to registration which are registered on or 4 22 after July 1, 1997. The four percent use tax rate applies to 4 23 the use of property when the first taxable use in this state 4 24 occurs on or after July 1, 1997. The four percent rate 4 25 applies to the gross receipts from the sale, furnishing, or 4 26 service of gas, electricity, water, heat, pay television 4 27 service, and communication service if the date of billing the 4 28 customer is on or after July 1, 1997. In the case of a 4 29 service contract entered into prior to July 1, 1997, which 4 30 contract calls for periodic payments, the four percent rate 4 31 applies to those payments made or due on or after July 1, 4 32 1997. This periodic payment applies, but is not limited to, 4 33 tickets or admissions, private club membership fees, sources 4 34 of amusement, equipment rental, dry cleaning, reducing salons, 4 35 dance schools, and all other services subject to tax, except 5 1 the aforementioned utility services which are subject to a 5 2 special transitional rule. Unlike periodic payments under 5 3 service contracts, installment sales of goods, wares, and 5 4 merchandise are subject to the full amount of sales or use tax 5 5 when the sales contract is entered into or the property is 5 6 first used in Iowa. 5 7 EXPLANATION 5 8 The bill reduces the state sales and use tax rate from five 5 9 to four percent and makes corresponding changes in the rates 5 10 for certain rentals and leases of motor vehicles. 5 11 The bill specifies that the four percent rate applies to 5 12 sales of property delivered on or after July 1, 1997. The 5 13 four percent rate applies to utilities where billings occur on 5 14 or after July 1, 1997, applies to motor vehicles registered on 5 15 or after July 1, 1997, and applies to periodic payments made 5 16 on or after July 1, 1997, under contracts calling for periodic 5 17 payments. 5 18 LSB 1256YH 77 5 19 mg/cf/24
Text: HF00025 Text: HF00027 Text: HF00000 - HF00099 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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