Text: HF00033 Text: HF00035 Text: HF00000 - HF00099 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. Section 422.42, subsection 14, Code 1997, is
1 2 amended to read as follows:
1 3 14. "Retail sale" or "sale at retail" means the sale to a
1 4 consumer or to any person for any purpose, other than for
1 5 processing, for resale of tangible personal property or
1 6 taxable services, or for resale of tangible personal property
1 7 in connection with taxable services; and includes the sale of
1 8 gas, electricity, water, and communication service to retail
1 9 consumers or users; but does not include agricultural breeding
1 10 livestock and domesticated fowl; and does not include
1 11 commercial fertilizer, agricultural limestone, herbicide,
1 12 pesticide, insecticide, including adjuvants, surfactants, and
1 13 other products directly related to the application enhancement
1 14 of those products, and food, medication, or agricultural drain
1 15 tile, including installation of agricultural drain tile, any
1 16 of which are to be used in disease control, weed control,
1 17 insect control, or health promotion of plants or livestock
1 18 produced as part of agricultural production for market; and
1 19 does not include electricity, steam, or any taxable service
1 20 when purchased and used in the processing of tangible personal
1 21 property intended to be sold ultimately at retail. When used
1 22 by a manufacturer of food products, carbon dioxide in a
1 23 liquid, solid, or gaseous form, electricity, steam, and other
1 24 taxable services are sold for processing when used to produce
1 25 marketable food products for human consumption, including but
1 26 not limited to, treatment of material to change its form,
1 27 context, or condition, in order to produce the food product,
1 28 maintenance of quality or integrity of the food product,
1 29 changing or maintenance of temperature levels necessary to
1 30 avoid spoilage or to hold the food product in marketable
1 31 condition, maintenance of environmental conditions necessary
1 32 for the safe or efficient use of machinery and material used
1 33 to produce the food product, sanitation and quality control
1 34 activities, formation of packaging, placement into shipping
1 35 containers, and movement of the material or food product until
2 1 shipment from the building of manufacture. Tangible personal
2 2 property is sold for processing within the meaning of this
2 3 subsection only when it is intended that the property will, by
2 4 means of fabrication, compounding, manufacturing, or
2 5 germination become an integral part of other tangible personal
2 6 property intended to be sold ultimately at retail; or will be
2 7 consumed as fuel in creating heat, power, or steam for
2 8 processing including grain drying, or for providing heat or
2 9 cooling for livestock buildings or for greenhouses or
2 10 buildings or parts of buildings dedicated to the production of
2 11 flowering, ornamental, or vegetable plants intended for sale
2 12 in the ordinary course of business, or for generating electric
2 13 current, or in implements of husbandry engaged in agricultural
2 14 production; or the property is a chemical, solvent, sorbent,
2 15 or reagent, which is directly used and is consumed,
2 16 dissipated, or depleted, in processing personal property which
2 17 is intended to be sold ultimately at retail or consumed in the
2 18 maintenance or repair of fabric or clothing, and which may not
2 19 become a component or integral part of the finished product.
2 20 The distribution to the public of free newspapers or shoppers
2 21 guides is a retail sale for purposes of the processing
2 22 exemption.
2 23 Sec. 2. Refunds of taxes, interests, or penalties which
2 24 arise from claims resulting from the enactment of the
2 25 amendment to section 422.42, subsection 14, in this Act, for
2 26 sales and uses occurring between April 1, 1990, and June 30,
2 27 1997, shall be limited to twenty-five thousand dollars in the
2 28 aggregate and shall not be allowed unless refund claims are
2 29 filed prior to October 1, 1997, notwithstanding any other
2 30 provision of law. If the amount of refund claims totals more
2 31 than twenty-five thousand dollars in the aggregate, the
2 32 department of revenue and finance shall prorate the twenty-
2 33 five thousand dollars among all claimants in relation to the
2 34 amounts of the claimants' valid claims.
2 35 Sec. 3. This Act, being deemed of immediate importance,
3 1 takes effect upon enactment and applies retroactively to April
3 2 1, 1990, for sales made or uses occurring on or after that
3 3 date.
3 4 EXPLANATION
3 5 The bill exempts from the sales and use tax ingredients and
3 6 detergents which are used to enhance the application of
3 7 commercial fertilizer, agricultural limestone, herbicide,
3 8 pesticide, and insecticides used in agricultural production
3 9 for market.
3 10 The bill takes effect upon enactment and applies
3 11 retroactively to April 1, 1990, for sales made and uses
3 12 occurring on or after that date. The bill also requires
3 13 claims for refunds of taxes paid between April 1, 1990, to
3 14 June 30, 1997, be made prior to October 1, 1997, and limits
3 15 the aggregate amount of claims to $25,000.
3 16 LSB 1189HH 77
3 17 mg/sc/14
Text: HF00033 Text: HF00035 Text: HF00000 - HF00099 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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