Text: SF02287 Text: SF02289 Text: SF02200 - SF02299 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 SENATE FILE 2288 1 2 1 3 AN ACT 1 4 RELATING TO THE SALES AND USE TAX ON OPTIONAL SERVICE OR 1 5 WARRANTY CONTRACTS AND TO THE SALES AND USE TAX EXEMPTION 1 6 ON CERTAIN COMPUTERS, EQUIPMENT, MACHINERY, AND FUEL, 1 7 RELATING TO THE DEFINITION OF MANUFACTURER FOR PURPOSES 1 8 OF THE EXEMPTION, AND PROVIDING A RETROACTIVE APPLICABILITY 1 9 DATE. 1 10 1 11 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 1 12 1 13 Section 1. Section 422.43, subsection 6, Code Supplement 1 14 1997, is amended by adding the following new unnumbered 1 15 paragraph: 1 16 NEW UNNUMBERED PARAGRAPH. If the optional service or 1 17 warranty contract is a computer software maintenance or 1 18 support service contract and there is no separately stated fee 1 19 for the taxable personal property or for the nontaxable 1 20 service, the tax of five percent imposed by this subsection 1 21 shall be imposed on fifty percent of the gross receipts from 1 22 the sale of such contract. If the contract provides for 1 23 technical support services only, no tax shall be imposed under 1 24 this subsection. The provisions of this subsection also apply 1 25 to the tax imposed by chapter 423. 1 26 Sec. 2. Section 422.45, subsection 27, paragraph b, Code 1 27 Supplement 1997, is amended to read as follows: 1 28 b. The gross receipts from the sale of fuel used in 1 29 creating heat, power, steam, or for generating electrical 1 30 current, or from the sale of electricity,directly and1 31primarily used in processing by a manufacturerconsumed by 1 32 computers, machinery, or equipment used in an exempt manner 1 33 described in paragraph "a", subparagraph (1), (2), (3), (5), 1 34 or (6). 1 35 Sec. 3. Section 422.45, subsection 27, paragraph c, Code 2 1 Supplement 1997, is amended by adding the following new 2 2 subparagraph: 2 3 NEW SUBPARAGRAPH. (4) Vehicles subject to registration, 2 4 except vehicles subject to registration which are directly and 2 5 primarily used in recycling or reprocessing of waste products. 2 6 Sec. 4. Section 422.45, subsection 27, paragraph d, 2 7 subparagraph (4), Code Supplement 1997, is amended to read as 2 8 follows: 2 9 (4) "Manufacturer" means as defined in section 428.20, but 2 10 also includes contract manufacturers. A contract manufacturer 2 11 is a manufacturer that otherwise falls within the definition 2 12 of manufacturer under section 428.20, except that a contract 2 13 manufacturer does not sell the tangible personal property the 2 14 contract manufacturer processes on behalf of other 2 15 manufacturers. A business engaged in activities subsequent to 2 16 the extractive process of quarrying or mining, such as 2 17 crushing, washing, sizing, or blending of aggregate materials, 2 18 is a manufacturer with respect to these activities. 2 19 Sec. 5. Section 422.45, subsection 27, paragraph d, Code 2 20 Supplement 1997, is amended by adding the following new 2 21 subparagraph: 2 22 NEW SUBPARAGRAPH. (6) "Receipt or producing of raw 2 23 materials" means activities performed upon tangible personal 2 24 property only. With respect to raw materials produced from or 2 25 upon real estate, the receipt or producing of raw materials is 2 26 deemed to occur immediately following the severance of the raw 2 27 materials from the real estate. 2 28 Sec. 6. RETROACTIVE APPLICABILITY DATE. Sections 2, 3, 2 29 and 5 of this Act are retroactively effective July 1, 1997, 2 30 for sales and taxable uses occurring on or after that date. 2 31 2 32 2 33 2 34 MARY E. KRAMER 2 35 President of the Senate 3 1 3 2 3 3 3 4 RON J. CORBETT 3 5 Speaker of the House 3 6 3 7 I hereby certify that this bill originated in the Senate and 3 8 is known as Senate File 2288, Seventy-seventh General Assembly. 3 9 3 10 3 11 3 12 MARY PAT GUNDERSON 3 13 Secretary of the Senate 3 14 Approved , 1998 3 15 3 16 3 17 3 18 TERRY E. BRANSTAD 3 19 Governor
Text: SF02287 Text: SF02289 Text: SF02200 - SF02299 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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