Text: S03685                            Text: S03687
Text: S03600 - S03699                   Text: S Index
Bills and Amendments: General Index     Bill History: General Index

Senate Amendment 3686

Amendment Text

PAG LIN
  1  1    Amend House File 266, as passed by the House, as
  1  2 follows:
  1  3    #1.  By striking everything after the enacting
  1  4 clause and inserting the following:
  1  5    "Section 1.  Section 321.19, subsection 1,
  1  6 unnumbered paragraph 2, Code 1997, is amended to read
  1  7 as follows:
  1  8    The department shall furnish, on application, free
  1  9 of charge, distinguishing plates for vehicles thus
  1 10 exempted, which plates except plates on Iowa highway
  1 11 safety patrol vehicles shall bear the word "official"
  1 12 and the department shall keep a separate record.
  1 13 Registration plates issued for Iowa highway safety
  1 14 patrol vehicles, except unmarked patrol vehicles,
  1 15 shall bear two red stars on a yellow background, one
  1 16 before and one following the registration number on
  1 17 the plate, which registration number shall be the
  1 18 officer's badge number.  Registration plates issued
  1 19 for a county sheriff's patrol vehicles shall display
  1 20 one seven-pointed gold star followed by the letter "S"
  1 21 and the call number of the vehicle.  However, the
  1 22 director of general services or the director of
  1 23 transportation may order the issuance of regular
  1 24 registration plates for any exempted vehicle used by
  1 25 peace officers in the enforcement of the law, persons
  1 26 enforcing chapter 124 and other laws relating to
  1 27 controlled substances, persons in the department of
  1 28 justice, the alcoholic beverages division of the
  1 29 department of commerce, and the department of
  1 30 inspections and appeals, and the department of revenue
  1 31 and finance, who are regularly assigned to conduct
  1 32 investigations which cannot reasonably be conducted
  1 33 with a vehicle displaying "official" state
  1 34 registration plates, and persons in the lottery
  1 35 division of the department of revenue and finance
  1 36 whose regularly assigned duties relating to security
  1 37 or the carrying of lottery tickets cannot reasonably
  1 38 be conducted with a vehicle displaying "official"
  1 39 registration plates.  For purposes of sale of exempted
  1 40 vehicles, the exempted governmental body, upon the
  1 41 sale of the exempted vehicle, may issue for in-transit
  1 42 purposes a pasteboard card bearing the words "Vehicle
  1 43 in Transit", the name of the official body from which
  1 44 the vehicle was purchased, together with the date of
  1 45 the purchase plainly marked in at least one-inch
  1 46 letters, and other information required by the
  1 47 department.  The in-transit card is valid for use only
  1 48 within forty-eight hours after the purchase date as
  1 49 indicated on the bill of sale which shall be carried
  1 50 by the driver.
  2  1    Sec. 2.  Section 331.427, subsection 1, unnumbered
  2  2 paragraph 1, Code 1997, is amended to read as follows:
  2  3    Except as otherwise provided by state law, county
  2  4 revenues from taxes and other sources for general
  2  5 county services shall be credited to the general fund
  2  6 of the county, including revenues received under
  2  7 sections 101A.3, 101A.7, 123.36, 123.143, 142B.6,
  2  8 176A.8, 321.105, 321.152, 321G.7, 331.554, subsection
  2  9 6, 341A.20, 364.3, 368.21, 422.65, 422A.2, 428A.8,
  2 10 430A.3, 433.15, 434.19, 445.57, 453A.35, 458A.21,
  2 11 483A.12, 533.24, 556B.1, 567.10, 583.6, 602.8108,
  2 12 904.908, and 906.17, and chapter 405A, and the
  2 13 following:
  2 14    Sec. 3.  NEW SECTION.  405A.10  FRANCHISE TAX
  2 15 REVENUE ALLOCATION.
  2 16    For the fiscal year beginning July 1, 1997, and
  2 17 each subsequent fiscal year, there is appropriated
  2 18 from the general fund of the state to the department
  2 19 of revenue and finance the sum of eight million eight
  2 20 hundred thousand dollars which shall be paid quarterly
  2 21 on warrants by the director as allocated pursuant to
  2 22 section 422.65.
  2 23    Sec. 4.  Section 421.4, Code 1997, is amended to
  2 24 read as follows:
  2 25    421.4  DEPUTIES.
  2 26    The director may appoint deputy directors and may
  2 27 designate one or more of the deputies as acting
  2 28 director.  A deputy designated to serve in the absence
  2 29 of the director has all of the powers possessed by the
  2 30 director.  The director may employ certified public
  2 31 accountants, engineering and technical assistants, and
  2 32 other employees, or independent contractors necessary
  2 33 to protect the interests of the state and any
  2 34 political subdivision.
  2 35    Sec. 5.  Section 421.17, subsection 21, paragraph
  2 36 b, subparagraph (3), Code 1997, is amended to read as
  2 37 follows:
  2 38    (3)  The child support recovery unit, the foster
  2 39 care recovery unit, and the investigations division of
  2 40 the department of inspections and appeals shall, at
  2 41 least annually, submit to the department of revenue
  2 42 and finance for setoff the debts described in this
  2 43 subsection, which are at least fifty dollars
  2 44 constituting a minimum amount determined by rule of
  2 45 the department of revenue and finance, on a date to be
  2 46 specified by the department of human services and the
  2 47 department of inspections and appeals by rule.
  2 48    Sec. 6.  Section 421.17, Code 1997, is amended by
  2 49 adding the following new subsection:
  2 50    NEW SUBSECTION.  22A.  To develop, modify, or
  3  1 contract with vendors to create or administer systems
  3  2 or programs which identify nonfilers of returns or
  3  3 nonpayers of taxes administered by the department.
  3  4 Fees for services, reimbursements, or other
  3  5 remuneration paid under contract may be funded from
  3  6 the amount of tax, penalty, interest, or fees actually
  3  7 collected and shall be paid only after the amount is
  3  8 collected.  An amount is appropriated from the amount
  3  9 of tax, penalty, interest, and fees actually
  3 10 collected, not to exceed the amount collected, which
  3 11 are sufficient to pay for services, reimbursement, or
  3 12 other remuneration pursuant to this subsection.
  3 13 Vendors entering into a contract with the department
  3 14 pursuant to this subsection are subject to the
  3 15 requirements and penalties of the confidentiality laws
  3 16 of this state regarding tax information.
  3 17    Sec. 7.  Section 421.17, subsection 23, paragraphs
  3 18 c, d, and g, Code 1997, are amended to read as
  3 19 follows:
  3 20    c.  The college student aid commission shall, at
  3 21 least annually, submit to the department of revenue
  3 22 and finance for setoff the guaranteed student loan
  3 23 defaults, which are at least fifty dollars
  3 24 constituting a minimum amount set by rule of the
  3 25 department of revenue and finance, on a date or dates
  3 26 to be specified by the college student aid commission
  3 27 by rule.
  3 28    d.  Upon submission of a claim, the department of
  3 29 revenue and finance shall notify the college student
  3 30 aid commission whether the defaulter is entitled to a
  3 31 refund or rebate of at least fifty dollars the minimum
  3 32 amount set by rule of the department and if so
  3 33 entitled shall notify the commission of the amount of
  3 34 the refund or rebate and of the defaulter's address on
  3 35 the income tax return.  Section 422.72, subsection 1,
  3 36 does not apply to this paragraph.
  3 37    g.  The department of revenue and finance shall,
  3 38 after notice has been sent to the defaulter by the
  3 39 college student aid commission, set off the amount of
  3 40 the default against the defaulter's income tax refund
  3 41 or rebate if both the amount of the default and the
  3 42 refund or rebate are at least fifty dollars
  3 43 constituting a minimum amount set by rule of the
  3 44 department.  The department shall refund any balance
  3 45 of the income tax refund or rebate to the defaulter.
  3 46 The department of revenue and finance shall
  3 47 periodically transfer the amount set off to the
  3 48 college student aid commission.  If the defaulter
  3 49 gives written notice of intent to contest the claim,
  3 50 the commission shall hold the refund or rebate until
  4  1 final disposition of the contested claim pursuant to
  4  2 chapter 17A or by court judgment.  The commission
  4  3 shall notify the defaulter in writing upon completion
  4  4 of setoff.
  4  5    Sec. 8.  Section 421.17, subsection 25, paragraph
  4  6 c, Code 1997, is amended to read as follows:
  4  7    c.  The clerk of the district court, on the first
  4  8 day of February and August of each calendar year,
  4  9 shall submit to the department for setoff the debts
  4 10 described in this subsection, which are at least fifty
  4 11 dollars constituting a minimum amount set by rule of
  4 12 the department.
  4 13    Sec. 9.  Section 421.17, subsection 29, paragraphs
  4 14 a and e, Code 1997, are amended to read as follows:
  4 15    a.  For purposes of this subsection unless the
  4 16 context requires otherwise:
  4 17    (1)  "State agency" means a board, commission,
  4 18 department, including the department of revenue and
  4 19 finance, or other administrative office or unit of the
  4 20 state of Iowa or any other state entity reported in
  4 21 the Iowa comprehensive annual financial report.  The
  4 22 term "state agency" does not include the general
  4 23 assembly, the governor, or any political subdivision
  4 24 of the state, or its offices and units.
  4 25    (2)  "Department" means the department of revenue
  4 26 and finance and any other state agency that maintains
  4 27 a separate accounting system and elects to establish a
  4 28 debt collection setoff procedure for collection of
  4 29 debts owed to the state or its agencies.
  4 30    (3)  The term "person" does not include a state
  4 31 agency.
  4 32    e.  Before setoff, the amount of a person's claim
  4 33 on a state agency and the amount of a person's
  4 34 liability to a state agency shall be at least fifty
  4 35 dollars constitute a minimum amount set by rule of the
  4 36 department.
  4 37    Sec. 10.  NEW SECTION.  421.61  UNCONSTITUTIONALLY
  4 38 WITHHELD TAX BENEFITS.
  4 39    If a provision in the Code grants a tax benefit to
  4 40 taxpayers that is unconstitutionally withheld from
  4 41 other taxpayers as expressed in an Iowa attorney
  4 42 general's opinion based upon decisions of the Iowa
  4 43 supreme court, United States supreme court, or other
  4 44 courts of competent jurisdiction, the tax benefit
  4 45 shall also be granted to the adversely affected
  4 46 taxpayers as if the unconstitutional provision did not
  4 47 exist.
  4 48    Sec. 11.  Section 422.5, subsection 1, paragraph j,
  4 49 subparagraph (2), unnumbered paragraph 1, Code 1997,
  4 50 is amended to read as follows:
  5  1    The tax imposed upon the taxable income of a
  5  2 resident shareholder in a value-added corporation
  5  3 which has in effect for the tax year an election under
  5  4 subchapter S of the Internal Revenue Code and carries
  5  5 on business within and without the state may be
  5  6 computed by reducing the amount determined pursuant to
  5  7 paragraphs "a" through "i" by the amounts of
  5  8 nonrefundable credits under this division and by
  5  9 multiplying this resulting amount by a fraction of
  5 10 which the resident's net income allocated to Iowa, as
  5 11 determined in section 422.8, subsection 2, paragraph
  5 12 "b", is the numerator and the resident's total net
  5 13 income computed under section 422.7 is the
  5 14 denominator.  If a resident shareholder has elected to
  5 15 take advantage of this subparagraph, and for the next
  5 16 tax year elects not to take advantage of this
  5 17 subparagraph, the resident shareholder shall not
  5 18 reelect to take advantage of this subparagraph for the
  5 19 three tax years immediately following the first tax
  5 20 year for which the shareholder elected not to take
  5 21 advantage of this subparagraph, unless the director
  5 22 consents to the reelection.  This paragraph
  5 23 subparagraph also applies to individuals who are
  5 24 residents of Iowa for less than the entire tax year.
  5 25    Sec. 12.  Section 422.20, subsection 3, unnumbered
  5 26 paragraph 1, Code 1997, is amended to read as follows:
  5 27    Unless otherwise expressly permitted by section
  5 28 421.17, subsections 21, 22, 22A, 23, 25, 29, and 32,
  5 29 sections 252B.9, 421.19, 421.28, 422.72, and 452A.63,
  5 30 and this section, a tax return, return information, or
  5 31 investigative or audit information shall not be
  5 32 divulged to any person or entity, other than the
  5 33 taxpayer, the department, or internal revenue service
  5 34 for use in a matter unrelated to tax administration.
  5 35    Sec. 13.  Section 422.32, subsection 4, Code 1997,
  5 36 is amended to read as follows:
  5 37    4.  "Corporation" includes joint stock companies,
  5 38 and associations organized for pecuniary profit, and
  5 39 publicly traded partnerships and limited liability
  5 40 companies taxed as corporations under the Internal
  5 41 Revenue Code.
  5 42    Sec. 14.  Section 422.43, Code 1997, is amended by
  5 43 adding the following new subsection:
  5 44    NEW SUBSECTION.  12.  A tax of five percent is
  5 45 imposed upon the gross receipts from the sales of
  5 46 prepaid telephone calling cards and prepaid
  5 47 authorization numbers.  For the purpose of this
  5 48 division, the sales of prepaid telephone calling cards
  5 49 and prepaid authorization numbers are sales of
  5 50 tangible personal property.
  6  1    Sec. 15.  Section 422.45, subsection 7, unnumbered
  6  2 paragraph 1, Code 1997, is amended to read as follows:
  6  3    A private nonprofit educational institution in this
  6  4 state, nonprofit private museum in this state, tax-
  6  5 certifying or tax-levying body or governmental
  6  6 subdivision of the state, including the state board of
  6  7 regents, state department of human services, state
  6  8 department of transportation, a municipally owned
  6  9 solid waste facility which sells all or part of its
  6 10 processed waste as fuel to a municipally owned public
  6 11 utility, and all divisions, boards, commissions,
  6 12 agencies, or instrumentalities of state, federal,
  6 13 county, or municipal government which do not have
  6 14 earnings going to the benefit of an equity investor or
  6 15 stockholder, may make application to the department
  6 16 for the refund of the sales, services, or use tax upon
  6 17 the gross receipts of all sales of goods, wares, or
  6 18 merchandise, or from services rendered, furnished, or
  6 19 performed, to a contractor, used in the fulfillment of
  6 20 a written contract with the state of Iowa, any
  6 21 political subdivision of the state, or a division,
  6 22 board, commission, agency, or instrumentality of the
  6 23 state or a political subdivision, a private nonprofit
  6 24 educational institution in this state, or a nonprofit
  6 25 private museum in this state if the property becomes
  6 26 an integral part of the project under contract and at
  6 27 the completion of the project becomes public property,
  6 28 is devoted to educational uses, or becomes a nonprofit
  6 29 private museum; except goods, wares, or merchandise,
  6 30 or services rendered, furnished, or performed used in
  6 31 the performance of any contract in connection with the
  6 32 operation of any municipal utility engaged in selling
  6 33 gas, electricity, or heat to the general public or in
  6 34 connection with the operation of a municipal pay
  6 35 television system; and except goods, wares, and
  6 36 merchandise used in the performance of a contract for
  6 37 a "project" under chapter 419 as defined in that
  6 38 chapter other than goods, wares, or merchandise used
  6 39 in the performance of a contract for a "project" under
  6 40 chapter 419 for which a bond issue was approved by a
  6 41 municipality prior to July 1, 1968, or for which the
  6 42 goods, wares, or merchandise becomes an integral part
  6 43 of the project under contract and at the completion of
  6 44 the project becomes public property or is devoted to
  6 45 educational uses.
  6 46    Sec. 16.  Section 422.45, subsection 18, Code 1997,
  6 47 is amended to read as follows:
  6 48    18.  Gross receipts from the sale of tangible
  6 49 personal property, except vehicles subject to
  6 50 registration, to a person regularly engaged in the
  7  1 business of leasing if the period of the lease is for
  7  2 more than one year five months, or in the consumer
  7  3 rental purchase business if the property is to be
  7  4 utilized in a transaction involving a consumer rental
  7  5 purchase agreement as defined in section 537.3604,
  7  6 subsection 8, and the leasing or consumer rental of
  7  7 the property is subject to taxation under this
  7  8 division.  If tangible personal property exempt under
  7  9 this subsection is made use of for any purpose other
  7 10 than leasing, renting, or consumer rental purchase,
  7 11 the person claiming the exemption under this
  7 12 subsection is liable for the tax that would have been
  7 13 due except for this subsection.  The tax shall be
  7 14 computed upon the original purchase price.  The
  7 15 aggregate of the tax paid on the leasing, renting, or
  7 16 rental purchase of such tangible personal property,
  7 17 not to exceed the amount of the sales tax owed, shall
  7 18 be credited against the tax.  This sales tax is in
  7 19 addition to any sales or use tax that may be imposed
  7 20 as a result of the disposal of such tangible personal
  7 21 property.
  7 22    Sec. 17.  Section 422.45, Code 1997, is amended by
  7 23 adding the following new subsection:
  7 24    NEW SUBSECTION.  52.  The gross receipts from
  7 25 charges for access to or use of internet computer
  7 26 services and from charges for access to or use of
  7 27 other contracted on-line computer services if access
  7 28 or use is by way of a local or in-state long distance
  7 29 telephone number and if the predominate on-line
  7 30 computer service offered is two-way transmission and
  7 31 receipt of information from one site to another.
  7 32    This subsection is repealed July 1, 1998.
  7 33    Sec. 18.  Section 422.53, Code 1997, is amended by
  7 34 adding the following new subsection:
  7 35    NEW SUBSECTION.  8.  a.  Except as provided in
  7 36 paragraph "b", purchasers, users, and consumers of
  7 37 tangible personal property or enumerated services
  7 38 taxed pursuant to this division, chapter 423, or
  7 39 chapter 422B, may be authorized, pursuant to rules
  7 40 adopted by the director, to remit tax owed directly to
  7 41 the department instead of the tax being collected and
  7 42 paid by the seller.  To qualify for a direct pay tax
  7 43 permit, the purchaser, user, or consumer must accrue a
  7 44 tax liability of more than four thousand dollars in
  7 45 tax under this division and chapter 423, in a
  7 46 semimonthly period and make deposits and file returns
  7 47 pursuant to section 422.52.  This authority shall not
  7 48 be granted or exercised except upon application to the
  7 49 director and then only after issuance by the director
  7 50 of a direct pay tax permit.
  8  1    b.  The granting of a direct pay tax permit is not
  8  2 authorized for any of the following:
  8  3    (1)  Taxes imposed on the sales, furnishing, or
  8  4 service of gas, electricity, water, heat, pay
  8  5 television service, and communication service.
  8  6    (2)  Taxes imposed under sections 423.7 and 423.7A
  8  7 and chapter 422C.
  8  8    Sec. 19.  Section 422.65, Code 1997, is amended to
  8  9 read as follows:
  8 10    422.65  ALLOCATION OF REVENUE.
  8 11    All moneys received from the franchise tax shall be
  8 12 deposited in the state general fund.  Commencing with
  8 13 the fiscal year beginning July 1, 1993, there is
  8 14 appropriated for each fiscal year from the franchise
  8 15 tax money received and deposited in the state general
  8 16 fund the sum of eight million eight hundred thousand
  8 17 dollars which shall be paid quarterly on warrants by
  8 18 the director, after certification by the director,
  8 19 Franchise tax moneys appropriated in section 405A.10
  8 20 are allocated as follows:
  8 21    1.  Sixty percent to the general fund of the city
  8 22 from which the tax is collected.
  8 23    2.  Forty percent to the county from which the tax
  8 24 is collected.
  8 25    If the financial institution maintains one or more
  8 26 offices for the transaction of business, other than
  8 27 its principal office, a portion of its franchise tax
  8 28 shall be allocated to each office, based upon a
  8 29 reasonable measure of the business activity of each
  8 30 office.  The director shall prescribe, for each type
  8 31 of financial institution, a method of measuring the
  8 32 business activity of each office.  Financial
  8 33 institutions shall furnish all necessary information
  8 34 for this purpose at the request of the director.
  8 35    Quarterly, the director shall certify to the
  8 36 treasurer of state the amounts to be paid to each city
  8 37 and county from the state general fund.  All moneys
  8 38 received from the franchise tax are appropriated
  8 39 according to the provisions of this section.
  8 40    Sec. 20.  Section 422.72, subsection 3, unnumbered
  8 41 paragraph 1, Code 1997, is amended to read as follows:
  8 42    Unless otherwise expressly permitted by section
  8 43 421.17, subsections 21, 22, 22A, 23, 25, 29, and 32,
  8 44 sections 252B.9, 421.19, 421.28, 422.20, and 452A.63,
  8 45 and this section, a tax return, return information, or
  8 46 investigative or audit information shall not be
  8 47 divulged to any person or entity, other than the
  8 48 taxpayer, the department, or internal revenue service
  8 49 for use in a matter unrelated to tax administration.
  8 50    Sec. 21.  Section 422.72, Code 1997, is amended by
  9  1 adding the following new subsection:
  9  2    NEW SUBSECTION.  7.  Notwithstanding subsection 3,
  9  3 the director shall provide state tax returns and
  9  4 return information in response to a subpoena issued by
  9  5 the court pursuant to rule of criminal procedure 5
  9  6 commanding the appearance before the attorney general
  9  7 or an assistant attorney general if the subpoena is
  9  8 accompanied by affidavits from such person and from a
  9  9 sworn peace officer member of the department of public
  9 10 safety affirming that the information is necessary for
  9 11 the investigation of a felony violation of chapter 124
  9 12 or chapter 706B.  The affidavits accompanying the
  9 13 subpoenas and the information provided by the director
  9 14 shall remain a confidential record which may be
  9 15 disseminated only to a prosecutor or peace officer
  9 16 involved in the investigation, or to the taxpayer who
  9 17 filed the information and to the court in connection
  9 18 with the filing of criminal charges or institution of
  9 19 a forfeiture action.  A person who knowingly files a
  9 20 false affidavit with the director to secure
  9 21 information or who divulges information received under
  9 22 this subsection in a manner prohibited by this
  9 23 subsection commits a serious misdemeanor.
  9 24    Sec. 22.  Section 423.1, subsection 8, Code 1997,
  9 25 is amended to read as follows:
  9 26    8.  "Retailer maintaining a place of business in
  9 27 this state" or any like term includes any retailer
  9 28 having or maintaining within this state, directly or
  9 29 by a subsidiary, an office, distribution house, sales
  9 30 house, warehouse, or other place of business, or any
  9 31 agent representative operating within this state under
  9 32 the authority of the retailer or its subsidiary,
  9 33 irrespective of whether such that place of business or
  9 34 agent representative is located here permanently or
  9 35 temporarily, or whether the retailer or subsidiary is
  9 36 admitted to do business within this state pursuant to
  9 37 chapter 490.
  9 38    Sec. 23.  Section 423.25, Code 1997, is amended to
  9 39 read as follows:
  9 40    423.25  TAXATION IN ANOTHER STATE.
  9 41    If any person who causes tangible personal property
  9 42 to be brought into this state or who uses in this
  9 43 state services enumerated in section 422.43 has
  9 44 already paid a tax in another state in respect to the
  9 45 sale or use of the property or the performance of the
  9 46 service, or an occupation tax in respect to the
  9 47 property or service, in an amount less than the tax
  9 48 imposed by this title, the provisions of this title
  9 49 shall apply, but at a rate measured by the difference
  9 50 only between the rate fixed in this title and the rate
 10  1 by which the previous tax on the sale or use, or the
 10  2 occupation tax, was computed.  If the tax imposed and
 10  3 paid in the other state is equal to or more than the
 10  4 tax imposed by this title, then a tax is not due in
 10  5 this state on the personal property or service.
 10  6    Sec. 24.  Section 425.7, subsection 3, Code 1997,
 10  7 is amended to read as follows:
 10  8    3.  If the director of revenue and finance
 10  9 determines that a claim for homestead credit has been
 10 10 allowed by the board of supervisors which is not
 10 11 justifiable under the law and not substantiated by
 10 12 proper facts, the director may, at any time within
 10 13 thirty-six months from July 1 of the year in which the
 10 14 claim is allowed, set aside the allowance.  Notice of
 10 15 the disallowance shall be given to the county auditor
 10 16 of the county in which the claim has been improperly
 10 17 granted and a written notice of the disallowance shall
 10 18 also be addressed to the claimant at the claimant's
 10 19 last known address.  The claimant or board of
 10 20 supervisors may appeal to the state board of tax
 10 21 review pursuant to section 421.1, subsection 4.  The
 10 22 claimant or the board of supervisors may seek judicial
 10 23 review of the action of the director of revenue and
 10 24 finance state board of tax review in accordance with
 10 25 the Iowa administrative procedure Act chapter 17A.
 10 26    If a claim is disallowed by the director of revenue
 10 27 and finance and not appealed to the state board of tax
 10 28 review or appealed to and upheld by the state board of
 10 29 tax review and a petition for judicial review is not
 10 30 filed with respect to the disallowance, any amounts of
 10 31 credits allowed and paid from the homestead credit
 10 32 fund including the penalty, if any, become a lien upon
 10 33 the property on which credit was originally granted,
 10 34 if still in the hands of the claimant, and not in the
 10 35 hands of a bona fide purchaser, and any amount so
 10 36 erroneously paid including the penalty, if any, shall
 10 37 be collected by the county treasurer in the same
 10 38 manner as other taxes and the collections shall be
 10 39 returned to the department of revenue and finance and
 10 40 credited to the homestead credit fund.  The director
 10 41 of revenue and finance may institute legal proceedings
 10 42 against a homestead credit claimant for the collection
 10 43 of payments made on disallowed credits and the
 10 44 penalty, if any.  If a homestead credit is disallowed
 10 45 and the claimant failed to give written notice to the
 10 46 assessor as required by section 425.2 when the
 10 47 property ceased to be used as a homestead by the
 10 48 claimant, a civil penalty equal to fifty percent of
 10 49 the amount of the disallowed credit is assessed
 10 50 against the claimant.
 11  1    Sec. 25.  Section 426A.6, Code 1997, is amended to
 11  2 read as follows:
 11  3    426A.6  SETTING ASIDE ALLOWANCE.
 11  4    If the director of revenue and finance determines
 11  5 that a claim for military service tax exemption has
 11  6 been allowed by a board of supervisors which is not
 11  7 justifiable under the law and not substantiated by
 11  8 proper facts, the director may, at any time within
 11  9 thirty-six months from July 1 of the year in which the
 11 10 claim is allowed, set aside the allowance.  Notice of
 11 11 the disallowance shall be given to the county auditor
 11 12 of the county in which the claim has been improperly
 11 13 granted and a written notice of the disallowance shall
 11 14 also be addressed to the claimant at the claimant's
 11 15 last known address.  The claimant or the board of
 11 16 supervisors may appeal to the state board of tax
 11 17 review pursuant to section 421.1, subsection 4.  The
 11 18 claimant or the board of supervisors may seek judicial
 11 19 review of the action of the director of revenue and
 11 20 finance state board of tax review in accordance with
 11 21 chapter 17A.  If a claim is disallowed by the director
 11 22 of revenue and finance and not appealed to the state
 11 23 board of tax review or appealed to and upheld by the
 11 24 state board of tax review and a petition for judicial
 11 25 review is not filed with respect to the disallowance,
 11 26 the credits allowed and paid from the general fund of
 11 27 the state become a lien upon the property on which the
 11 28 credit was originally granted, if still in the hands
 11 29 of the claimant and not in the hands of a bona fide
 11 30 purchaser, the amount so erroneously paid shall be
 11 31 collected by the county treasurer in the same manner
 11 32 as other taxes, and the collections shall be returned
 11 33 to the department of revenue and finance and credited
 11 34 to the general fund of the state.  The director of
 11 35 revenue and finance may institute legal proceedings
 11 36 against a military service tax exemption claimant for
 11 37 the collection of payments made on disallowed
 11 38 exemptions.
 11 39    Sec. 26.  Section 426B.1, subsection 1, Code 1997,
 11 40 is amended to read as follows:
 11 41    1.  A property tax relief fund is created in the
 11 42 state treasury under the authority of the department
 11 43 of revenue and finance human services.  The fund shall
 11 44 be separate from the general fund of the state and
 11 45 shall not be considered part of the general fund of
 11 46 the state except in determining the cash position of
 11 47 the state for payment of state obligations.  The
 11 48 moneys in the fund are not subject to the provisions
 11 49 of section 8.33 and shall not be transferred, used,
 11 50 obligated, appropriated, or otherwise encumbered
 12  1 except as provided in this chapter.  Moneys in the
 12  2 fund may be used for cash flow purposes, provided that
 12  3 any moneys so allocated are returned to the fund by
 12  4 the end of each fiscal year.  However, the fund shall
 12  5 be considered a special account for the purposes of
 12  6 section 8.53, relating to elimination of any GAAP
 12  7 deficit.  For the purposes of this chapter, unless the
 12  8 context otherwise requires, "property tax relief fund"
 12  9 means the property tax relief fund created in this
 12 10 section.
 12 11    Sec. 27.  Section 426B.4, Code 1997, is amended to
 12 12 read as follows:
 12 13    426B.4  RULES.
 12 14    The council on human services shall consult with
 12 15 the state-county management committee created in
 12 16 section 331.438 and the director of revenue and
 12 17 finance human services in prescribing forms and
 12 18 adopting rules pursuant to chapter 17A to administer
 12 19 this chapter.
 12 20    Sec. 28.  Section 427.1, subsection 16, Code 1997,
 12 21 is amended to read as follows:
 12 22    16.  REVOKING EXEMPTION.  Any taxpayer or any
 12 23 taxing district may make application to the director
 12 24 of revenue and finance for revocation for any
 12 25 exemption, based upon alleged violations of this
 12 26 chapter.  The director of revenue and finance may also
 12 27 on the director's own motion set aside any exemption
 12 28 which has been granted upon property for which
 12 29 exemption is claimed under this chapter.  The director
 12 30 of revenue and finance shall give notice by mail to
 12 31 the taxpayer or taxing district applicant and to the
 12 32 societies or organizations claiming an exemption upon
 12 33 property, exemption of which is questioned before or
 12 34 by the director of revenue and finance, and shall hold
 12 35 a hearing prior to issuing any order for revocation.
 12 36 An order made by the director of revenue and finance
 12 37 revoking or modifying an exemption is subject to
 12 38 judicial review in accordance with chapter 17A, the
 12 39 Iowa administrative procedure Act.  Notwithstanding
 12 40 the terms of that Act, petitions for judicial review
 12 41 may be filed in the district court having jurisdiction
 12 42 in the county in which the property is located, and
 12 43 must be filed within thirty days after any order
 12 44 revoking an exemption is made by the director of
 12 45 revenue and finance.
 12 46    Sec. 29.  Section 427B.19, subsection 3, unnumbered
 12 47 paragraph 1, Code 1997, is amended to read as follows:
 12 48    On or before July 1, 1996, and on or before July
 12 49 September 1 of each succeeding fiscal year through
 12 50 June 30, 2006, the county auditor shall prepare a
 13  1 statement, based upon the report received pursuant to
 13  2 subsections 1 and 2, listing for each taxing district
 13  3 in the county:
 13  4    Sec. 30.  Section 427B.19, subsection 4, Code 1997,
 13  5 is amended to read as follows:
 13  6    4.  The county auditor shall certify and forward
 13  7 one copy of the statement to the department of revenue
 13  8 and finance not later than July September 1 of each
 13  9 year.
 13 10    Sec. 31.  Section 427B.19A, subsection 2, Code
 13 11 1997, is amended to read as follows:
 13 12    2.  If an amount appropriated for a fiscal year is
 13 13 insufficient to pay all claims, the director shall
 13 14 prorate the disbursements from the fund to the county
 13 15 treasurers and shall notify the county auditors of the
 13 16 pro rata percentage on or before August 1 September
 13 17 30.
 13 18    Sec. 32.  Section 428.4, unnumbered paragraph 3,
 13 19 Code 1997, is amended to read as follows:
 13 20    Any buildings erected, improvements made, or
 13 21 buildings or improvements removed in a year after the
 13 22 assessment of the class of real estate to which they
 13 23 belong, shall be valued, listed, and assessed and
 13 24 reported by the assessor to the county auditor after
 13 25 approval of the valuations by the local board of
 13 26 review, and said the auditor shall thereupon enter the
 13 27 taxable value of such building or taxable improvement
 13 28 on the tax list as a part of real estate to be taxed.
 13 29 If such buildings or improvements are erected or made
 13 30 by any person other than the owner of the land, they
 13 31 shall be listed and assessed to the owner of the
 13 32 buildings or improvements as real estate.
 13 33    Sec. 33.  Section 440.1, Code 1997, is amended to
 13 34 read as follows:
 13 35    440.1  ASSESSMENT OF OMITTED PROPERTY.
 13 36    When the director of revenue and finance is vested
 13 37 with the power and duty to assess property and said an
 13 38 assessment has, for any reason, been omitted, the
 13 39 director shall proceed to assess said the property for
 13 40 each of the omitted years, not exceeding five years
 13 41 last past.  The omitted assessment shall only apply to
 13 42 the assessment year in which the omitted assessment is
 13 43 made and the four prior assessment years.  Chapter 429
 13 44 shall apply to assessments of omitted property.
 13 45    Sec. 34.  Section 441.8, unnumbered paragraphs 6
 13 46 and 7, Code 1997, are amended to read as follows:
 13 47    Upon receiving credit equal to one hundred fifty
 13 48 hours of classroom instruction during the assessor's
 13 49 current term of office of which at least ninety of the
 13 50 one hundred fifty hours are from courses requiring an
 14  1 examination upon conclusion of the course, the
 14  2 director of revenue and finance shall certify to the
 14  3 assessor's conference board that the assessor is
 14  4 eligible to be reappointed to the position.  For
 14  5 assessors whose present terms of office expire before
 14  6 six years from January 1, 1979, or who are persons
 14  7 appointed to complete an unexpired term, the number of
 14  8 credits required to be certified as eligible for
 14  9 reappointment shall be prorated according to the
 14 10 amount of time remaining in the present term of the
 14 11 assessor.  If the person was an assessor in another
 14 12 jurisdiction, the assessor may carry forward any
 14 13 credit hours received in the previous position in
 14 14 excess of the number that would be necessary to be
 14 15 considered current in that position.
 14 16    Within each six-year period following January 1,
 14 17 1980 or the appointment of a deputy assessor appointed
 14 18 after January 1, 1979, the deputy assessor shall
 14 19 comply with this section except that upon the
 14 20 successful completion of ninety hours of classroom
 14 21 instruction of which at least sixty of the ninety
 14 22 hours are from courses requiring an examination upon
 14 23 conclusion of the course, the deputy assessor shall be
 14 24 certified by the director of revenue and finance as
 14 25 being eligible to remain in the position.  If a deputy
 14 26 assessor fails to comply with this section, the deputy
 14 27 assessor shall be removed from the position until
 14 28 successful completion of the required hours of credit.
 14 29 If a deputy is appointed to the office of assessor,
 14 30 the hours of credit obtained as deputy pursuant to
 14 31 this section shall be credited to that individual as
 14 32 assessor and for the individual to be reappointed at
 14 33 the expiration of the term as assessor, that
 14 34 individual must obtain the credits which are necessary
 14 35 to total the number of hours for reappointment.
 14 36    Sec. 35.  Section 441.11, Code 1997, is amended to
 14 37 read as follows:
 14 38    441.11  INCUMBENT DEPUTY ASSESSORS.
 14 39    The director of revenue and finance shall grant a
 14 40 restricted certificate to any deputy assessor holding
 14 41 office as of January 1, 1976.  A deputy assessor
 14 42 possessing such a certificate shall be considered
 14 43 eligible to remain in the deputy's present position
 14 44 provided continuing education requirements are met.
 14 45 To become eligible for another deputy assessor
 14 46 position, a deputy assessor presently holding office
 14 47 is required to obtain certification as provided for in
 14 48 section 441.5 and 441.10.  The number of credit hours
 14 49 required for certification as eligible for appointment
 14 50 as a deputy in a jurisdiction other than where the
 15  1 deputy is currently serving shall be prorated
 15  2 according to the completed portion of the deputy's
 15  3 six-year continuing education period.
 15  4    Sec. 36.  Section 444.26, Code 1997, is amended to
 15  5 read as follows:
 15  6    444.26  PROPERTY TAX LEVY LIMITATIONS NOT AFFECTED.
 15  7    Sections 444.25, 444.25A, and 444.25B shall not be
 15  8 construed as removing or otherwise affecting the
 15  9 property tax limitations otherwise provided by law for
 15 10 any tax levy of the political subdivision, except
 15 11 that, upon an appeal from the political subdivision,
 15 12 the state appeal board may approve a tax levy
 15 13 consistent with the provisions of section 24.48 or
 15 14 331.426.
 15 15    Sec. 37.  Section 444.27, subsection 1, Code 1997,
 15 16 is amended to read as follows:
 15 17    1.  For purposes of section 444.25, sections 24.48
 15 18 and 331.426 are void for the fiscal years beginning
 15 19 July 1, 1993, and July 1, 1994.  For purposes of
 15 20 section 444.25A, sections 24.48 and 331.426 are void
 15 21 for the fiscal years beginning July 1, 1995, and July
 15 22 1, 1996.
 15 23    Sec. 38.  Section 445.32, Code 1997, is amended to
 15 24 read as follows:
 15 25    445.32  LIENS ON BUILDINGS OR IMPROVEMENTS.
 15 26    If a building or improvement is erected or made by
 15 27 a person other than the owner of the land on which the
 15 28 building or improvement is located, as provided for in
 15 29 section 428.4, the taxes on the building or
 15 30 improvement are and remain a lien on the building or
 15 31 improvement from the date of levy until paid.  If the
 15 32 taxes on the building or improvement become
 15 33 delinquent, as provided in section 445.37, the county
 15 34 treasurer shall collect the tax as provided in
 15 35 sections 445.3 and 445.4.  This section does not apply
 15 36 to special assessments, or rates or charges.
 15 37    Sec. 39.  Section 452A.65, unnumbered paragraph 1,
 15 38 Code 1997, is amended to read as follows:
 15 39    In addition to the tax or additional tax, the
 15 40 taxpayer shall pay a penalty as provided in section
 15 41 421.27.  The taxpayer shall also pay interest on the
 15 42 tax or additional tax at the rate in effect under
 15 43 section 421.7 counting each fraction of a month as an
 15 44 entire month, computed from the date the return was
 15 45 required to be filed.  If the amount of the tax as
 15 46 determined by the appropriate state agency is less
 15 47 than the amount paid, the excess shall be refunded
 15 48 with interest, the interest to begin to accrue on the
 15 49 first day of the third second calendar month following
 15 50 the date of payment or the date the return was due to
 16  1 be filed or was filed, whichever is the latest, at the
 16  2 rate in effect under section 421.7 counting each
 16  3 fraction of a month as an entire month under the rules
 16  4 prescribed by the appropriate state agency.  In lieu
 16  5 of a refund allowed under this section, the licensee
 16  6 may request that the department allow the refund to be
 16  7 held as a credit for the licensee.  Claims for refund
 16  8 filed under sections 452A.17 and 452A.21 shall accrue
 16  9 interest beginning with the first day of the second
 16 10 calendar month following the date the refund claim is
 16 11 received by the department.
 16 12    Sec. 40.  Section 99D.14, subsection 6, Code 1997,
 16 13 as amended by 1997 Iowa Acts, House File 212, section
 16 14 2, is amended to read as follows:
 16 15    6.  Real property used in the operation of a
 16 16 racetrack or racetrack enclosure which is exempt from
 16 17 property taxation under another provision of the law,
 16 18 including being exempt because it is owned by a city,
 16 19 county, state, or charitable or nonprofit entity, may
 16 20 be subject to real property taxation by any taxing
 16 21 district in which the real property used in the
 16 22 operation of the racetrack or racetrack enclosure is
 16 23 located.  To subject such real property to taxation,
 16 24 the taxing authority of the taxing district shall pass
 16 25 a resolution imposing the tax and, if the resolution
 16 26 is passed prior to September 1, 1997, shall notify the
 16 27 county local assessor, director of revenue and
 16 28 finance, and the owner of record of the real property
 16 29 by September 1, 1997, preceding the fiscal year in
 16 30 which the real property taxes are due and payable.
 16 31 The assessed value shall be determined and notice of
 16 32 the assessed value shall be provided to the county
 16 33 auditor by the department of revenue and finance local
 16 34 assessor by October 15, 1997, and the owner may
 16 35 protest the assessed value to the state local board of
 16 36 tax review by December 1, 1997.  For resolutions
 16 37 passed on or after September 1, 1997, the taxing
 16 38 authority shall notify the local assessor and owner of
 16 39 record prior to the next assessment year and the
 16 40 valuation and appeal shall be done in the manner and
 16 41 time as for other valuations.  Property taxes due as a
 16 42 result of this subsection shall be paid to the county
 16 43 treasurer in the manner and time as other property
 16 44 taxes.  The county treasurer shall remit the tax
 16 45 revenue to those taxing authorities imposing the
 16 46 property tax under this subsection.  Real property
 16 47 subject to tax as provided in this subsection shall
 16 48 continue to be taxed until such time as the taxing
 16 49 authority of the taxing district repeals the
 16 50 resolution subjecting the property to taxation.
 17  1 Notwithstanding section 99D.7, the department of
 17  2 revenue and finance shall adopt rules to implement
 17  3 this subsection.
 17  4    Sec. 41.  Sections 236.15A, 427A.13, 440.2, 440.3,
 17  5 440.4, 444.25, and 444.28, Code 1997, are repealed.
 17  6    Sec. 42.  Sections 11 and 13 of this Act which
 17  7 amend sections 422.5 and 422.32 apply retroactively to
 17  8 January 1, 1997, for tax years beginning on or after
 17  9 that date.
 17 10    Sec. 43.  Section 16 of this Act, amending section
 17 11 422.45, subsection 18, being deemed of immediate
 17 12 importance, takes effect upon enactment.
 17 13    Sec. 44.  Sections 6, 12, and 20 of this Act,
 17 14 enacting section 421.17, subsection 22A and amending
 17 15 section 422.20 and section 422.72, subsection 3, and
 17 16 relating to contractual agreements by the department
 17 17 of revenue and finance, being deemed of immediate
 17 18 importance, take effect upon enactment.
 17 19    Sec. 45.  Section 17 of this Act, enacting section
 17 20 422.45, subsection 52, being deemed of immediate
 17 21 importance, takes effect upon enactment.
 17 22    Sec. 46.  Section 18 of this Act, enacting section
 17 23 422.53, subsection 8, takes effect January 1, 1998."
 17 24    #2.  Title page , by striking lines 1 through 7 and
 17 25 inserting the following:  "An Act relating to the
 17 26 administration of state individual income, corporate,
 17 27 franchise, motor fuel, and other taxes; collection of
 17 28 taxes and use of collection receipts; property taxes;
 17 29 property tax credits and replacement claims; sales,
 17 30 services, and use taxes and the imposition thereof on
 17 31 sales of prepaid telephone calling cards and prepaid
 17 32 authorization numbers; tax refund setoffs; and other
 17 33 duties of the department and director of revenue and
 17 34 finance; providing a penalty; and including effective
 17 35 and retroactive applicability date provisions." 
 17 36 
 17 37 
 17 38                               
 17 39 COMMITTEE ON WAYS AND MEANS
 17 40 JoANN DOUGLAS, Chairperson
 17 41 HF 266.504 77
 17 42 mg/jw/28

Text: S03685                            Text: S03687
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