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Bills and Amendments: General Index     Bill History: General Index

Senate File 2360

Partial Bill History

Bill Text

PAG LIN
  1  1    Section 1.  Section 421.1, unnumbered paragraph 8, Code
  1  2 1997, is amended to read as follows:
  1  3    The state board shall hold at least six regular meetings
  1  4 each year, the first of which shall be on the second secular
  1  5 day of July meet as deemed necessary by the chairperson.
  1  6 Special meetings of the state board may be called by the
  1  7 chairperson on five days' notice given to each member.  All
  1  8 meetings shall be held at the office of the tax department
  1  9 unless a different place within the state is designated by the
  1 10 state board or in the notice of the meeting.
  1 11    Sec. 2.  Section 421.16, Code Supplement 1997, is amended
  1 12 to read as follows:
  1 13    421.16  EXPENSES.
  1 14    The director, deputy directors, and department employees
  1 15 are entitled to receive from the state their actual necessary
  1 16 expenses while traveling on the business of the department.
  1 17 The expenditures shall be sworn to by the party who incurred
  1 18 the expense, and approved and allowed by the director.
  1 19 However, such expenses shall not be allowed residents of Polk
  1 20 county while in the city of Des Moines or traveling between
  1 21 their homes and the city of Des Moines.
  1 22    Sec. 3.  Section 421.17, subsection 29, paragraph g, Code
  1 23 Supplement 1997, is amended by adding the following new
  1 24 unnumbered paragraph:
  1 25    NEW UNNUMBERED PARAGRAPH.  The department of revenue and
  1 26 finance shall send the written notification required by this
  1 27 paragraph when the person's liability is payable to the clerk
  1 28 of district court.  The judicial department shall prescribe
  1 29 procedures for contesting the amount of the person's liability
  1 30 to the clerk.  Other applicable procedures shall be prescribed
  1 31 by the department of revenue and finance.  The written
  1 32 notification shall state the clerk's assertion of rights to
  1 33 all or a portion of the payment, the clerk's entitlement to
  1 34 recover the liability through the setoff procedure, the basis
  1 35 of the assertions, the person's opportunity to request within
  2  1 fifteen days of mailing of the notice that the department
  2  2 divide a jointly or commonly owned right to payment between
  2  3 owners, the person's opportunity to contest the liability to
  2  4 the clerk by written application to the clerk, and the
  2  5 person's opportunity to contest the department's setoff
  2  6 procedure.  If a person files written notice of intent to
  2  7 contest an allegation with the clerk within fifteen days of
  2  8 the mailing of the notice, the clerk shall hold the payment
  2  9 until disposition of the allegation.  Upon completion of the
  2 10 setoff, the department shall file, at least monthly, with the
  2 11 clerk of the district court a notice of satisfaction of each
  2 12 obligation to the full extent of all moneys collected in
  2 13 satisfaction of the obligation.  The clerk shall record the
  2 14 notice and enter a satisfaction for the amounts collected, and
  2 15 no separate written notice is required.
  2 16    Sec. 4.  Section 421.18, Code 1997, is amended to read as
  2 17 follows:
  2 18    421.18  DUTIES OF PUBLIC OFFICERS AND EMPLOYEES.
  2 19    It shall be the duty of all public officers and employees
  2 20 of the state and of all municipalities local governments to
  2 21 give to the director of revenue and finance information in
  2 22 their possession relating to taxation when required by the
  2 23 director, and to co-operate with and aid the director's
  2 24 efforts to secure a fair, equitable, and just enforcement of
  2 25 the taxation and revenue laws.
  2 26    Sec. 5.  Section 421.40, unnumbered paragraph 3, Code 1997,
  2 27 is amended to read as follows:
  2 28    The departments, the general assembly, and the courts shall
  2 29 pay their claims in a timely manner.  If a claim for services,
  2 30 supplies, materials, or a contract which is payable from the
  2 31 state treasury remains unpaid after sixty days following the
  2 32 receipt of the claim or the satisfactory delivery, furnishing,
  2 33 or performance of the services, supplies, materials, or
  2 34 contract, whichever date is later, the state shall pay
  2 35 interest at the rate of one percent per month on the unpaid
  3  1 amount of the claim.  This paragraph does not apply to claims
  3  2 against the state under chapters 25 and 669 or to claims paid
  3  3 by federal funds.  The interest shall be charged to the
  3  4 appropriation or fund to which the claim is certified.
  3  5 Departments may enter into contracts for goods or services on
  3  6 payment terms of less than sixty days, and pay interest on the
  3  7 unpaid amount of any claim, if the state may obtain a
  3  8 financial benefit or incentive which would not otherwise be
  3  9 available from the vendor.  The department, in consultation
  3 10 with the department of general services and other affected
  3 11 agencies, shall develop policies to promote consistency and
  3 12 fiscal responsibility with respect to payment terms authorized
  3 13 under this paragraph.  The director of the department of
  3 14 revenue and finance shall adopt rules under chapter 17A
  3 15 relating to the administration of this paragraph.
  3 16    Sec. 6.  Section 422.5, subsections 3 and 11, Code
  3 17 Supplement 1997, are amended by striking the subsections.
  3 18    Sec. 7.  Section 422.13, subsection 5, Code 1997, is
  3 19 amended to read as follows:
  3 20    5.  Notwithstanding subsections 1 through 4 and sections
  3 21 422.15 and 422.36, a partnership, a limited liability company
  3 22 whose members are taxed on the company's income under
  3 23 provisions of the Internal Revenue Code, trust, or corporation
  3 24 whose stockholders are taxed on the corporation's income under
  3 25 the provisions of the Internal Revenue Code is entitled to
  3 26 request permission from the director may, not later than the
  3 27 due date for filing its return for the taxable year, including
  3 28 any extension thereof, elect to file a composite return for
  3 29 the nonresident partners, members, beneficiaries, or
  3 30 shareholders.  The director may grant permission to file or
  3 31 require that a composite return be filed under the conditions
  3 32 deemed appropriate by the director.  A partnership, limited
  3 33 liability company, trust, or corporation filing a composite
  3 34 return is liable for tax required to be shown due on the
  3 35 return.  All powers of the director and requirements of the
  4  1 director apply to returns filed under this subsection
  4  2 including, but not limited to, the provisions of this division
  4  3 and division VI of this chapter.
  4  4    Sec. 8.  Section 422.16, subsection 2, unnumbered paragraph
  4  5 2, Code 1997, is amended to read as follows:
  4  6    Every withholding agent on or before the end of the second
  4  7 month following the close of the calendar year in which the
  4  8 withholding occurs shall make an annual reporting of taxes
  4  9 withheld and other information prescribed by the director and
  4 10 send to the department copies of wage and tax statements with
  4 11 the return.  At the discretion of the director, the
  4 12 withholding agent shall not be required to send wage
  4 13 statements and tax statements with the annual reporting return
  4 14 form if the information is available from the Internal Revenue
  4 15 Service or other state or federal agencies.
  4 16    Sec. 9.  Section 422.23, unnumbered paragraph 2, Code 1997,
  4 17 is amended by striking the unnumbered paragraph.
  4 18    Sec. 10.  Section 422.25, subsection 1, paragraph b, Code
  4 19 1997, is amended to read as follows:
  4 20    b.  The period for examination and determination of the
  4 21 correct amount of tax is unlimited in the case of a false or
  4 22 fraudulent return made with the intent to evade tax or in the
  4 23 case of a failure to file a return.  In lieu of the period of
  4 24 limitation for any prior year for which an overpayment of tax
  4 25 or an elimination or reduction of an underpayment of tax due
  4 26 for that prior year results from the carryback to that prior
  4 27 year of a net operating loss or net capital loss, the period
  4 28 is the period of limitation for the taxable year of the net
  4 29 operating loss or net capital loss which results in the
  4 30 carryback.  If the tax found due is greater than the amount
  4 31 paid, the department shall compute the amount due, together
  4 32 with interest and penalties as provided in subsection 2, and
  4 33 shall mail a notice of assessment to the taxpayer and, if
  4 34 applicable, to the taxpayer's authorized representative of the
  4 35 total, which shall be computed as a sum certain if paid on or
  5  1 before the last day of the month in which the notice is
  5  2 postmarked dated, or on or before the last day of the
  5  3 following month if the notice is postmarked dated after the
  5  4 twentieth day of any month.  The notice shall also inform the
  5  5 taxpayer of the additional interest and penalty which will be
  5  6 added to the total due if not paid on or before the last day
  5  7 of the applicable month.
  5  8    Sec. 11.  Section 422.25, subsection 3, Code 1997, is
  5  9 amended to read as follows:
  5 10    3.  If the amount of the tax as determined by the
  5 11 department is less than the amount paid, the excess shall be
  5 12 refunded with interest, the interest to begin to accrue on the
  5 13 first day of the second calendar month following the date of
  5 14 payment or the date the return was due to be filed, or the
  5 15 extended due date by which the return was due to be filed if
  5 16 ninety percent of the tax was paid by the original due date,
  5 17 or was filed, whichever is the latest, at the rate in effect
  5 18 under section 421.7 counting each fraction of a month as an
  5 19 entire month under the rules prescribed by the director.  If
  5 20 an overpayment of tax results from a net operating loss or net
  5 21 capital loss which is carried back to a prior year, the
  5 22 overpayment, for purposes of computing interest on refunds,
  5 23 shall be considered as having been made on the date a claim
  5 24 for refund or amended return carrying back the net operating
  5 25 loss or net capital loss is filed with the department or on
  5 26 the first day of the second calendar month following the date
  5 27 of the actual payment of the tax, whichever is later.
  5 28 However, when the net operating loss or net capital loss
  5 29 carryback to a prior year eliminates or reduces an
  5 30 underpayment of tax due for an earlier year, the full amount
  5 31 of the underpayment of tax shall bear interest at the rate in
  5 32 effect under section 421.7 for each month counting each
  5 33 fraction of a month as an entire month from the due date of
  5 34 the tax for the earlier year to the last day of the taxable
  5 35 year in which the net operating loss or net capital loss
  6  1 occurred.
  6  2    Sec. 12.  Section 422.33, subsection 1, unnumbered
  6  3 paragraph 1, Code Supplement 1997, is amended to read as
  6  4 follows:
  6  5    A tax is imposed annually upon each corporation organized
  6  6 under the laws of this state, and upon each foreign
  6  7 corporation doing business in this state, or deriving income
  6  8 from sources within this state, in an amount computed by
  6  9 applying the following rates of taxation to the net income
  6 10 received by the corporation during the income year:
  6 11    Sec. 13.  Section 422.33, subsection 2, unnumbered
  6 12 paragraph 1, Code Supplement 1997, is amended to read as
  6 13 follows:
  6 14    If the trade or business of the corporation is carried on
  6 15 entirely within the state, the tax shall be imposed on the
  6 16 entire net income, but if the trade or business is carried on
  6 17 partly within and partly without the state or if income is
  6 18 derived from sources partly within and partly without the
  6 19 state, or if income is derived from trade or business and
  6 20 sources, all of which are not entirely in the state, the tax
  6 21 shall be imposed only on the portion of the net income
  6 22 reasonably attributable to the trade or business or sources
  6 23 within the state, with the net income attributable to the
  6 24 state to be determined as follows:
  6 25    Sec. 14.  Section 422.42, subsection 6, Code Supplement
  6 26 1997, is amended to read as follows:
  6 27    6.  "Gross taxable services" means the total amount
  6 28 received in money, credits, property, or other consideration,
  6 29 valued in money, from services rendered, furnished, or
  6 30 performed in this state except where such service is performed
  6 31 on tangible personal property delivered into interstate
  6 32 commerce or is used in processing of tangible personal
  6 33 property for use in taxable retail sales or services and
  6 34 embraced within the provisions of this division.  However, the
  6 35 taxpayer may take credit in the taxpayer's report of gross
  7  1 taxable services for an amount equal to the value of services
  7  2 rendered, furnished, or performed when the full value of such
  7  3 the services thereof is refunded either in cash or by credit.
  7  4 Taxes paid on gross taxable services represented by accounts
  7  5 found to be worthless and actually charged off for income tax
  7  6 purposes may be credited upon a subsequent payment of the tax
  7  7 due hereunder, but if any such accounts are thereafter
  7  8 collected by the taxpayer, a tax shall be paid upon the
  7  9 amounts so collected.
  7 10    Sec. 15.  Section 422.42, subsection 18, unnumbered
  7 11 paragraph 1, Code Supplement 1997, is amended to read as
  7 12 follows:
  7 13    "Services" means all acts or services rendered, furnished,
  7 14 or performed, other than services performed on tangible
  7 15 personal property delivered into interstate commerce, or
  7 16 services used in processing of tangible personal property for
  7 17 use in taxable retail sales or services, for an "employer" as
  7 18 defined in section 422.4, subsection 3, for a valuable
  7 19 consideration by any person engaged in any business or
  7 20 occupation specifically enumerated in this division.  The tax
  7 21 shall be due and collectible when the service is rendered,
  7 22 furnished, or performed for the ultimate user thereof of the
  7 23 service.
  7 24    Sec. 16.  Section 422.44, unnumbered paragraph 2, Code
  7 25 1997, is amended by striking the unnumbered paragraph.
  7 26    Sec. 17.  Section 422.45, subsection 7, paragraph b,
  7 27 unnumbered paragraph 1, Code Supplement 1997, is amended to
  7 28 read as follows:
  7 29    Such governmental unit, educational institution, or
  7 30 nonprofit private museum shall, not more than six months one
  7 31 year after the final settlement has been made, make
  7 32 application to the department for any refund of the amount of
  7 33 such the sales or use tax which shall have been paid upon any
  7 34 goods, wares or merchandise, or services rendered, furnished,
  7 35 or performed, such the application to be made in the manner
  8  1 and upon forms to be provided by the department, and the
  8  2 department shall forthwith audit such the claim and, if
  8  3 approved, issue a warrant to such the governmental unit,
  8  4 educational institution, or nonprofit private museum in the
  8  5 amount of such the sales or use tax which has been paid to the
  8  6 state of Iowa under such the contract.
  8  7    Sec. 18.  Section 422.45, subsection 46, Code Supplement
  8  8 1997, is amended to read as follows:
  8  9    46.  The gross receipts from the sale of property or of
  8 10 services performed on property which the seller retailer
  8 11 transfers to a carrier for shipment to a point outside of
  8 12 Iowa, places in the United States mail or parcel post directed
  8 13 to a point outside of Iowa, or transports to a point outside
  8 14 of Iowa by means of the seller's retailer's own vehicles, and
  8 15 which is not thereafter returned to a point within Iowa,
  8 16 except solely in the course of interstate commerce or
  8 17 transportation.  This exemption shall not apply if the
  8 18 purchaser, consumer, or their agent, other than a carrier,
  8 19 takes physical possession of the property in Iowa.
  8 20    Sec. 19.  Section 422.47, subsection 3, paragraphs a and b,
  8 21 Code Supplement 1997, are amended to read as follows:
  8 22    a.  The department shall issue or the seller may separately
  8 23 provide exemption certificates in the form prescribed by the
  8 24 director to assist retailers in properly accounting for
  8 25 nontaxable sales of tangible personal property or services to
  8 26 purchasers for purposes of resale or for processing, except
  8 27 fuel consumed in processing a nontaxable purpose.  The
  8 28 department shall also allow the use of exemption certificates
  8 29 for those circumstances in which a sale is taxable but the
  8 30 seller is not obligated to collect tax from the buyer.
  8 31    b.  The sales tax liability for all sales of tangible
  8 32 personal property and all sales of services is upon the seller
  8 33 and the purchaser unless the seller takes in good faith from
  8 34 the purchaser a valid exemption certificate stating under
  8 35 penalties for perjury that the purchase is for resale or for
  9  1 processing a nontaxable purpose and is not a retail sale as
  9  2 defined in section 422.42, subsection 14, or the seller is not
  9  3 obligated to collect tax due, or unless the seller takes a
  9  4 fuel exemption certificate pursuant to subsection 4.  If the
  9  5 tangible personal property or services are purchased tax free
  9  6 pursuant to a valid exemption certificate which is taken in
  9  7 good faith by the seller, and the tangible personal property
  9  8 or services are used or disposed of by the purchaser in a
  9  9 nonexempt manner, the purchaser is solely liable for the taxes
  9 10 and shall remit the taxes directly to the department and
  9 11 sections 422.50, 422.51, 422.52, 422.54, 422.55, 422.56,
  9 12 422.57, 422.58, and 422.59 shall apply to the purchaser.
  9 13    Sec. 20.  Section 422.47, subsection 3, paragraph e, Code
  9 14 Supplement 1997, is amended to read as follows:
  9 15    e.  If the circumstances change and as a result the
  9 16 tangible personal property or services are used or disposed of
  9 17 by the purchaser in a nonexempt manner or the purchaser
  9 18 becomes obligated to pay the tax, the purchaser is liable
  9 19 solely for the taxes and shall remit the taxes directly to the
  9 20 department in accordance with this subsection.
  9 21    Sec. 21.  Section 422.47, subsection 4, paragraph c, Code
  9 22 Supplement 1997, is amended to read as follows:
  9 23    c.  The purchaser may apply to the department for its
  9 24 review of the fuel exemption certificate.  In this event, the
  9 25 department shall review the fuel exemption certificate within
  9 26 twelve months from the date of application and determine the
  9 27 correct amount of the exemption.  If the amount determined by
  9 28 the department is different than the amount that the purchaser
  9 29 claims is exempt, the department shall promptly notify the
  9 30 purchaser of the determination.  Failure of the department to
  9 31 make a determination within twelve months from the date of
  9 32 application shall constitute a determination that the fuel
  9 33 exemption certificate is correct as submitted.  A
  9 34 determination of exemption by the department is final unless
  9 35 the purchaser appeals to the director for a revision of the
 10  1 determination within thirty sixty days after the postmark date
 10  2 of the notice of determination.  The director shall grant a
 10  3 hearing, and upon the hearing the director shall determine the
 10  4 correct exemption and notify the purchaser of the decision by
 10  5 mail.  The decision of the director is final unless the
 10  6 purchaser seeks judicial review of the director's decision
 10  7 under section 422.55 within thirty sixty days after the
 10  8 postmark date of the notice of the director's decision.
 10  9 Unless there is a substantial change, the department shall not
 10 10 impose penalties pursuant to section 422.58, both
 10 11 retroactively to purchases made after the date of application
 10 12 and prospectively until the department gives notice to the
 10 13 purchaser that a tax or additional tax is due, for failure to
 10 14 remit any tax due which is in excess of a determination made
 10 15 under this section.  A determination made by the department
 10 16 pursuant to this subsection does not constitute an audit for
 10 17 purposes of section 422.54.
 10 18    Sec. 22.  Section 422.50, Code 1997, is amended to read as
 10 19 follows:
 10 20    422.50  RECORDS REQUIRED.
 10 21    It shall be the duty of every retailer required to make a
 10 22 report return and pay any tax under this division, to preserve
 10 23 those records of the gross proceeds of receipts from sales or
 10 24 services as the director may require and it shall be the duty
 10 25 of every retailer to preserve for a period of five years all
 10 26 invoices and other records of goods, wares, merchandise, or
 10 27 services purchased for resale; and all these books, invoices,
 10 28 and other records shall be open to examination at any time by
 10 29 the department, and shall be made available within this state
 10 30 for examination upon reasonable notice when the director
 10 31 orders.
 10 32    Sec. 23.  Section 422.52, subsection 3, unnumbered
 10 33 paragraph 2, Code 1997, is amended by striking the unnumbered
 10 34 paragraph.
 10 35    Sec. 24.  Section 422.60, subsection 1, Code 1997, is
 11  1 amended to read as follows:
 11  2    1.  A franchise tax according to and measured by net income
 11  3 is imposed on financial institutions for the privilege of
 11  4 doing business in this state as financial institutions
 11  5 corporations.
 11  6    Sec. 25.  Section 422.68, subsection 4, Code 1997, is
 11  7 amended to read as follows:
 11  8    4.  The department may make photostat, microfilm, or other
 11  9 photographic copies of records, reports, and other papers
 11 10 either filed by the taxpayer or prepared by the department.
 11 11 In addition, the department may create and use any system of
 11 12 recordkeeping reasonably calculated to preserve its records
 11 13 for any time period required by law.  When such photostat, or
 11 14 microfilm, or other copies have been made, the department may
 11 15 destroy such the original records which are the basis for the
 11 16 copies in such any manner as prescribed by the director.  Such
 11 17 photostat or Photostat, microfilm, or other types of copies,
 11 18 when no longer of use, may be destroyed as provided in
 11 19 subsection 3.  Such photostat Photostat, microfilm, or other
 11 20 photographic records shall be admissible in evidence when duly
 11 21 certified and authenticated by the officer having custody and
 11 22 control thereof of them.
 11 23    Sec. 26.  Section 422.72, subsection 1, unnumbered
 11 24 paragraph 1, Code Supplement 1997, is amended to read as
 11 25 follows:
 11 26    It is unlawful for the director, or any person having an
 11 27 administrative duty under this chapter, or any present or
 11 28 former officer or other employee of the state authorized by
 11 29 the director to examine returns, to divulge in any manner
 11 30 whatever, the business affairs, operations, or information
 11 31 obtained by an investigation under this chapter of records and
 11 32 equipment of any person visited or examined in the discharge
 11 33 of official duty, or the amount or source of income, profits,
 11 34 losses, expenditures or any particular thereof, set forth or
 11 35 disclosed in any return, or to permit any return or copy of a
 12  1 return or any book containing any abstract or particulars
 12  2 thereof to be seen or examined by any person except as
 12  3 provided by law.  It is unlawful for any person to willfully
 12  4 inspect, except as authorized by the director, any return or
 12  5 return information.  However, the director may authorize
 12  6 examination of such state returns and other state information
 12  7 which is confidential under this section, if a reciprocal
 12  8 arrangement exists, by tax officers of another state or the
 12  9 federal government.  The director may, by rules adopted
 12 10 pursuant to chapter 17A, authorize examination of state
 12 11 information and returns by other officers or employees of this
 12 12 state to the extent required by their official duties and
 12 13 responsibilities.  Disclosure of state information to tax
 12 14 officers of another state is limited to disclosures which have
 12 15 a tax administrative purpose and only to officers of those
 12 16 states which by agreement with this state limit the disclosure
 12 17 of the information as strictly as the laws of this state
 12 18 protecting the confidentiality of returns and information.
 12 19 The director shall place upon the state tax form a notice to
 12 20 the taxpayer that state tax information may be disclosed to
 12 21 tax officials of another state or of the United States for tax
 12 22 administrative purposes.
 12 23    Sec. 27.  Section 422.110, Code 1997, is amended to read as
 12 24 follows:
 12 25    422.110  INCOME TAX CREDIT IN LIEU OF REFUND.
 12 26    In lieu of the fuel tax refund provided in sections section
 12 27 452A.17 to 452A.19, a person or corporation subject to
 12 28 taxation under divisions II or III of this chapter, except
 12 29 persons or corporations licensed under section 452A.4, may
 12 30 elect to receive an income tax credit for tax years beginning
 12 31 on or after January 1, 1975.  The person or corporation which
 12 32 elects to receive an income tax credit shall cancel its refund
 12 33 permit obtained under section 452A.18 within thirty days after
 12 34 the first day of its tax year or the permit becomes invalid at
 12 35 that time.  For the purposes of this section, "person"
 13  1 includes a person claiming a tax credit based upon the
 13  2 person's pro rata share of the earnings from a partnership,
 13  3 limited liability company, or corporation which is not subject
 13  4 to a tax under division II or III of this chapter as a
 13  5 partnership, limited liability company, or corporation.  If
 13  6 the election to receive an income tax credit has been made, it
 13  7 remains effective for at least one tax year, and for
 13  8 subsequent tax years unless a change is requested and a new
 13  9 refund permit applied for within thirty days after the first
 13 10 day of the person's or corporation's tax year.  The income tax
 13 11 credit shall be the amount of the Iowa fuel tax paid on fuel
 13 12 purchased by the person or corporation and used as follows: is
 13 13 subject to the conditions provided in section 452A.17 with the
 13 14 exception that the income tax credit is not available for
 13 15 refunds relating to casualty losses, transport diversions,
 13 16 pumping credits, blending errors, idle time, power takeoffs,
 13 17 reefer units, and exports by eligible purchasers.
 13 18    1.  Motor fuel as defined in section 452A.2, subsection 17,
 13 19 used for the purpose of operating or propelling farm tractors,
 13 20 corn shellers, roller mills, truck-mounted feed grinders,
 13 21 stationary engines, for producing denatured alcohol within the
 13 22 state, for cleaning or dyeing, or for any purpose other than
 13 23 in watercraft or aircraft or in motor vehicles operated or
 13 24 intended to be operated upon the public highways.
 13 25    2.  Special fuel, as defined in section 452A.2, used for
 13 26 the purpose of operation of corn shellers, roller mills, and
 13 27 feed grinders mounted on trucks.
 13 28    3.  Motor fuel placed in motor vehicles and used, other
 13 29 than on public highways, in the extraction and processing of
 13 30 natural deposits.
 13 31    4.  Motor fuel or special fuel used by a bona fide
 13 32 commercial fisher, licensed and operating under an owner's
 13 33 certificate for commercial fishing gear issued pursuant to
 13 34 section 482.4.
 13 35    However, no credit shall be given with respect to motor
 14  1 fuel taken out of the state in fuel supply tanks of motor
 14  2 vehicles, motor fuel used in aircraft or watercraft, or motor
 14  3 fuel used in the performance of a contract which is paid out
 14  4 of state funds unless the contract for the work contains a
 14  5 certificate made under penalty for false certificate that the
 14  6 estimate, bid or price to be paid for the work includes no
 14  7 amount representing motor fuel tax subject to a credit.  The
 14  8 right to a credit under this section is not assignable and the
 14  9 credit may be claimed only by the person or corporation that
 14 10 purchased the fuel.
 14 11    Sec. 28.  Section 422.111, unnumbered paragraph 1, Code
 14 12 1997, is amended to read as follows:
 14 13    The fuel tax credit may be applied against the income tax
 14 14 liability of the person or corporation as determined on the
 14 15 tax return filed for the year in which the fuel tax was paid.
 14 16 The department shall provide forms for claiming the fuel tax
 14 17 credit.  If the fuel tax credit would result in an overpayment
 14 18 of income tax, the person or corporation may apply for a
 14 19 refund of the amount of overpayment or may have the
 14 20 overpayment credited to income tax due in subsequent years.
 14 21 Each person or corporation that claims a fuel tax credit shall
 14 22 maintain the original invoices showing the purchase of the
 14 23 fuel on which a credit is claimed.  No An invoice is not
 14 24 acceptable in support of a claim for credit unless it the
 14 25 invoice is a separate serially numbered invoice covering no
 14 26 more than one purchase of motor fuel or undyed special fuel,
 14 27 prepared by the seller on a form approved by the department,
 14 28 nor unless it or unless the invoice is legibly written with no
 14 29 corrections or erasures and shows the date of sale, the name
 14 30 and address of the seller and of the purchaser, the kind of
 14 31 fuel, the gallonage in figures, the per gallon price of the
 14 32 fuel, the total purchase price including the Iowa fuel tax,
 14 33 and that the total purchase price has been paid.  However, as
 14 34 to refund invoices made on a billing machine the department
 14 35 may waive these requirements.  If an original invoice is lost
 15  1 or destroyed, the department may approve a credit supported by
 15  2 a copy identified and certified by the seller as being a true
 15  3 copy of the original.  Each person or corporation that claims
 15  4 a fuel tax credit shall maintain complete records of purchases
 15  5 of motor fuel or undyed special fuel on which Iowa fuel tax
 15  6 was paid, and for which a fuel tax credit is claimed.
 15  7    Sec. 29.  Section 422.111, unnumbered paragraph 3, Code
 15  8 1997, is amended by striking the unnumbered paragraph.
 15  9    Sec. 30.  Section 422B.10, subsection 2, paragraph c, Code
 15 10 Supplement 1997, is amended to read as follows:
 15 11    c.  The director of revenue and finance shall remit a final
 15 12 payment of the remainder of tax moneys due the city or county
 15 13 for the fiscal year before November 10 of the next fiscal
 15 14 year.  If an overpayment has resulted during the previous
 15 15 fiscal year, the first November payment of the new fiscal year
 15 16 shall be adjusted to reflect any overpayment.
 15 17    Sec. 31.  Section 422D.3, unnumbered paragraph 4, Code
 15 18 1997, is amended to read as follows:
 15 19    The director, in consultation with local officials, shall
 15 20 collect and account for a local income surtax and any interest
 15 21 and penalties.  The director shall credit local income surtax
 15 22 receipts and any interest and penalties collected from returns
 15 23 filed on or before November 1 of the calendar year following
 15 24 the tax year for which the local income surtax is imposed to a
 15 25 "local income surtax fund" established in the office of the
 15 26 treasurer of state department of revenue and finance.  All
 15 27 local income surtax receipts and any interest and penalties
 15 28 received or refunded from returns filed after November 1 of
 15 29 the calendar year following the tax year for which the local
 15 30 income surtax is imposed shall be deposited in or withdrawn
 15 31 from the state general fund and shall be considered part of
 15 32 the cost of administering the local income surtax.
 15 33    Sec. 32.  Section 424.10, subsections 2 and 3, Code 1997,
 15 34 are amended to read as follows:
 15 35    2.  If a return required by this chapter is not filed, or
 16  1 if a return when filed is incorrect or insufficient and the
 16  2 maker fails to file a corrected or sufficient return within
 16  3 twenty days after the return is required by notice from the
 16  4 department, the department shall determine the amount of
 16  5 charge due from information as the department may be able to
 16  6 obtain and, if necessary, may estimate the charge on the basis
 16  7 of external indices or factors.  The department shall give
 16  8 notice of the determination to the person liable for the
 16  9 charge.  The determination shall fix the charge unless the
 16 10 person against whom it is assessed shall, within sixty days
 16 11 after the giving of date of the notice of the determination,
 16 12 apply to the director for a hearing or unless the taxpayer
 16 13 contests the determination by paying the tax, interest, and
 16 14 penalty and timely filing a claim for refund.  At the hearing
 16 15 evidence may be offered to support the determination or to
 16 16 prove that it is incorrect.  After the hearing the director
 16 17 shall give notice of the decision to the person liable for the
 16 18 charge.
 16 19    If a depositor's, receiver's, or other person's challenge
 16 20 relates to the diminution rate, the burden of proof upon the
 16 21 challenger shall only be satisfied by clear and convincing
 16 22 evidence.
 16 23    3.  If the amount paid is greater than the correct charge,
 16 24 penalty, and interest due, the department shall refund the
 16 25 excess, with interest after sixty days from the date of
 16 26 payment at the rate in effect under section 421.7, pursuant to
 16 27 rules prescribed by the director.  However, the director shall
 16 28 not allow a claim for refund that has not been filed with the
 16 29 department within five years after the charge payment upon
 16 30 which a refund is claimed became due, or one year after the
 16 31 charge payment was made, whichever time is later.  A
 16 32 determination by the department of the amount of charge,
 16 33 penalty, and interest due, or the amount of refund for any
 16 34 excess amount paid, is final unless the person aggrieved by
 16 35 the determination appeals to the director for a revision of
 17  1 the determination within thirty sixty days from the postmark
 17  2 date of the notice of determination of charge, penalty, and
 17  3 interest due or refund owing.  The director shall grant a
 17  4 hearing, and upon hearing the director shall determine the
 17  5 correct charge, penalty, and interest due or refund owing, and
 17  6 notify the appellant of the decision by mail.  The decision of
 17  7 the director is final unless the appellant seeks judicial
 17  8 review of the director's decision under section 424.13.
 17  9    Sec. 33.  Section 427.1, subsection 14, unnumbered
 17 10 paragraph 1, Code Supplement 1997, is amended to read as
 17 11 follows:
 17 12    A society or organization claiming an exemption under
 17 13 subsection 5 or subsection 8 of this section shall file with
 17 14 the assessor not later than July 1 April 15 a statement upon
 17 15 forms to be prescribed by the director of revenue and finance,
 17 16 describing the nature of the property upon which the exemption
 17 17 is claimed and setting out in detail any uses and income from
 17 18 the property derived from the rentals, leases, or other uses
 17 19 of the property not solely for the appropriate objects of the
 17 20 society or organization.  Upon the filing and allowance of the
 17 21 claim, the claim shall be allowed on the property for
 17 22 successive years without further filing as long as the
 17 23 property is used for the purposes specified in the original
 17 24 claim for exemption.  When the property is sold or
 17 25 transferred, the county recorder shall provide notice of the
 17 26 transfer to the assessor.  The notice shall describe the
 17 27 property transferred and the name of the person to whom title
 17 28 to the property is transferred.
 17 29    Sec. 34.  Section 427.1, subsection 24, Code Supplement
 17 30 1997, is amended to read as follows:
 17 31    24.  LAND CERTIFIED AS A WILDLIFE HABITAT.  The owner of
 17 32 agricultural land may designate not more than two acres of the
 17 33 land for use as a wildlife habitat.  After inspection, if the
 17 34 land meets the standards established by the natural resource
 17 35 commission for a wildlife habitat under section 483A.3, the
 18  1 department of natural resources shall certify the designated
 18  2 land as a wildlife habitat and shall send a copy of the
 18  3 certification to the appropriate assessor not later than
 18  4 February 1 of the assessment year for which the exemption is
 18  5 requested.  The department of natural resources may
 18  6 subsequently withdraw certification of the designated land if
 18  7 it fails to meet the established standards for a wildlife
 18  8 habitat and the assessor shall be given written notice of the
 18  9 decertification.
 18 10    Sec. 35.  Section 428.1, unnumbered paragraph 1, Code 1997,
 18 11 is amended to read as follows:
 18 12    Every person shall list for the assessor all property
 18 13 subject to taxation in the state, of which the person is the
 18 14 owner, or has the control or management, in the following
 18 15 manner including but not limited to the following:
 18 16    Sec. 36.  Section 429.2, subsection 1, Code 1997, is
 18 17 amended to read as follows:
 18 18    1.  Notwithstanding the provisions of chapter 17A, the
 18 19 taxpayer shall have thirty days from the date of postmark of
 18 20 the notice of assessment to appeal the assessment to the state
 18 21 board of tax review.  Thereafter, the proceedings before the
 18 22 state board of tax review shall conform to the provisions of
 18 23 subsection 2, section 421.1, subsection 4, and chapter 17A.
 18 24    Sec. 37.  Section 450.4, subsection 5, Code 1997, is
 18 25 amended to read as follows:
 18 26    5.  On the value of that portion of installment payments
 18 27 which will be includable as net income as defined in section
 18 28 422.7 as received by a beneficiary under an annuity which was
 18 29 purchased under an employees pension or retirement plan.  This
 18 30 exemption does not apply to those payments that are exempt
 18 31 from Iowa income tax pursuant to section 422.8, subsection 2.
 18 32    Sec. 38.  Section 450.20, unnumbered paragraph 1, Code
 18 33 1997, is amended to read as follows:
 18 34    It The department of revenue and finance shall also keep a
 18 35 separate record of any deferred estate upon which the tax due
 19  1 is not paid within fifteen months from the death of the
 19  2 decedent, showing substantially the same facts as are required
 19  3 in other cases, and also showing:
 19  4    Sec. 39.  Section 450.22, Code 1997, is amended to read as
 19  5 follows:
 19  6    450.22  ADMINISTRATION AVOIDED – INHERITANCE TAX DUTIES
 19  7 REQUIRED.
 19  8    When the heirs or persons entitled to inherit the property
 19  9 of an estate subject to tax under this chapter desire to avoid
 19 10 the appointment of a personal representative as provided in
 19 11 section 450.21, and in all instances where real estate is
 19 12 involved and there are no regular probate proceedings, they or
 19 13 one of them shall file under oath the inventories required by
 19 14 section 633.361 and the required reports, perform all the
 19 15 duties required by this chapter of the personal
 19 16 representative, and file the inheritance tax return.  However,
 19 17 this section does not apply and a return is not required even
 19 18 though real estate is part of the assets subject to tax under
 19 19 this chapter, if all of the assets are held in joint tenancy
 19 20 with right of survivorship between husband and wife alone, or
 19 21 if the estate exclusively consists of property held in joint
 19 22 tenancy with the right of survivorship solely by the decedent
 19 23 and any individuals listed in section 450.9 as individuals
 19 24 that are entirely exempt from Iowa inheritance tax and the
 19 25 estate does not have a federal estate tax obligation.  When
 19 26 this section applies, proceedings for the collection of the
 19 27 tax when a personal representative is not appointed, shall
 19 28 conform as nearly as possible to proceedings under this
 19 29 chapter in other cases.
 19 30    Sec. 40.  Section 450.37, Code 1997, is amended by adding
 19 31 the following new subsection:
 19 32    NEW SUBSECTION.  3.  In addition to the applicable period
 19 33 of limitation for examination and determination, the
 19 34 department shall make an examination to adjust the value of
 19 35 real property for Iowa inheritance tax purposes to the value
 20  1 accepted by the internal revenue service for federal estate
 20  2 tax purposes.  The department shall make an examination and
 20  3 adjustment for the value of the real property at any time
 20  4 within six months from the date of receipt by the department
 20  5 of written notice from the personal representative for the
 20  6 estate that all federal estate tax matters between the estate
 20  7 and the internal revenue service have been concluded.  To
 20  8 begin the running of the six-month period, the notice shall be
 20  9 in writing in a form sufficient to inform the department of
 20 10 the final disposition of the federal estate tax obligation
 20 11 with the internal revenue service and a copy of the federal
 20 12 document showing the final disposition and final federal
 20 13 adjustments of all real property values must be attached.  The
 20 14 department shall make an adjustment to the value of real
 20 15 property for inheritance tax purposes to the value accepted
 20 16 for federal estate tax purposes regardless of whether an
 20 17 inheritance clearance has been issued, an appraisal has been
 20 18 obtained on the real property indicating a contrary value,
 20 19 whether there has been an acceptance of another value for real
 20 20 property by the department, or whether an agreement has been
 20 21 entered into by the department and the personal representative
 20 22 for the estate and persons having an interest in the real
 20 23 property regarding the value of the real property.
 20 24 Notwithstanding the period of limitation specified in section
 20 25 450.94, subsection 3, the personal representative for the
 20 26 estate shall have six months from the day of final disposition
 20 27 of any real property valuation matter between the personal
 20 28 representative for the estate and the internal revenue service
 20 29 to claim a refund of an overpayment of tax due to the change
 20 30 in the valuation of real property by the internal revenue
 20 31 service.
 20 32    Sec. 41.  Section 450.94, subsections 2 and 3, Code 1997,
 20 33 are amended to read as follows:
 20 34    2.  The taxpayer shall file an inheritance tax return on
 20 35 forms to be prescribed by the director of revenue and finance
 21  1 on or before the last day of the ninth month after the death
 21  2 of the decedent.  When an inheritance tax return is filed, the
 21  3 department shall examine it and determine the correct amount
 21  4 of tax. If the amount paid is less than the correct amount
 21  5 due, the department shall notify the taxpayer of the total
 21  6 amount due together with any penalty and interest which shall
 21  7 be a sum certain if paid on or before the last day of the
 21  8 month in which the notice is postmarked dated, or on or before
 21  9 the last day of the following month if the notice is
 21 10 postmarked dated after the twentieth day of a month and before
 21 11 the first day of the following month.
 21 12    3.  If the amount paid is greater than the correct tax,
 21 13 penalty, and interest due, the department shall refund the
 21 14 excess with interest.  Interest shall be computed at the rate
 21 15 in effect under section 421.7, under the rules prescribed by
 21 16 the director counting each fraction of a month as an entire
 21 17 month and the interest shall begin to accrue on the first day
 21 18 of the second calendar month following the date of payment or
 21 19 on the date the return was due to be filed or was filed,
 21 20 whichever is the latest.  However, the director shall not
 21 21 allow a claim for refund or credit that has not been filed
 21 22 with the department within three years after the tax payment
 21 23 upon which a refund or credit is claimed became due, or one
 21 24 year after the tax payment was made, whichever time is later.
 21 25 A determination by the department of the amount of tax,
 21 26 penalty, and interest due, or the amount of refund for excess
 21 27 tax paid, is final unless the person aggrieved by the
 21 28 determination appeals to the director for a revision of the
 21 29 determination within sixty days from the postmark date of the
 21 30 notice of determination of tax, penalty, and interest due or
 21 31 refund owing or unless the taxpayer contests the determination
 21 32 by paying the tax, interest, and penalty and timely filing a
 21 33 claim for refund.  The director shall grant a hearing, and
 21 34 upon the hearing the director shall determine the correct tax,
 21 35 penalty, and interest or refund due, and notify the appellant
 22  1 of the decision by mail.  The decision of the director is
 22  2 final unless the appellant seeks judicial review of the
 22  3 director's decision under section 450.59 within sixty days
 22  4 after the postmark date of the notice of the director's
 22  5 decision.
 22  6    Sec. 42.  Section 451.12, Code 1997, is amended to read as
 22  7 follows:
 22  8    451.12  APPLICABLE STATUTES – PENALTIES.
 22  9    All the provisions of chapter 450 with respect to the lien
 22 10 provisions of section 450.7, and the determination,
 22 11 imposition, payment, and collection of the tax imposed under
 22 12 that chapter, including penalty and interest upon delinquent
 22 13 taxes and the confidentiality of the tax return, are
 22 14 applicable to this chapter, except as they are in conflict
 22 15 with this chapter.  The exceptions to the lien provisions
 22 16 found in section 450.7 do not apply to this chapter.  The
 22 17 penalty provisions set out in section 450.53 shall apply to a
 22 18 person in possession of assets to be reported for purposes of
 22 19 taxation who willfully makes a false or fraudulent return or
 22 20 willfully fails to pay the tax, supply the information, make,
 22 21 sign, or file the required return within the time required by
 22 22 law or a person who willfully attempts in any manner to evade
 22 23 taxes imposed by this chapter or avoid payment of the tax.
 22 24 The director of revenue and finance shall adopt rules
 22 25 necessary for the enforcement of this chapter.
 22 26    Sec. 43.  Section 452A.2, subsection 11, Code 1997, is
 22 27 amended to read as follows:
 22 28    11.  "Exporter" means a person or other entity who acquires
 22 29 fuel in this state exclusively for export to another state.
 22 30    Sec. 44.  Section 452A.2, subsection 17, paragraph a, Code
 22 31 1997, is amended to read as follows:
 22 32    a.  All products commonly or commercially known or sold as
 22 33 gasoline, (including casinghead and absorption or natural
 22 34 gasoline), regardless of their classifications or uses, and
 22 35 including transmix which serves as a buffer between fuel
 23  1 products in the pipeline distribution process.
 23  2    Sec. 45.  Section 452A.8, subsection 1, unnumbered
 23  3 paragraph 1, Code 1997, is amended to read as follows:
 23  4    For the purpose of determining the amount of the
 23  5 supplier's, restrictive supplier's, or importer's tax
 23  6 liability, a supplier or restrictive supplier shall file a
 23  7 return, not later than the last day of the month following the
 23  8 month in which this division becomes effective and not later
 23  9 than the last day of each calendar month thereafter, and an
 23 10 importer shall file a report return semi-monthly with the
 23 11 department, signed under penalty for false certification.  For
 23 12 an importer for the reporting period from the first day of the
 23 13 month through the fifteenth of the month, the report return is
 23 14 due on the last day of the month.  For an importer for the
 23 15 reporting period from the sixteenth of the month through the
 23 16 last day of the month, the report return is due on the
 23 17 fifteenth day of the following month.  The reports returns
 23 18 shall include the following:
 23 19    Sec. 46.  Section 452A.8, subsection 2, unnumbered
 23 20 paragraph 1, Code 1997, is amended to read as follows:
 23 21    At the time of filing a report return, a supplier or
 23 22 restrictive supplier shall pay to the department the full
 23 23 amount of the fuel tax due for the preceding calendar month.
 23 24 An importer shall pay to the department the full amount of
 23 25 fuel tax due for the preceding semimonthly period.  The tax
 23 26 shall be computed as follows:
 23 27    Sec. 47.  Section 452A.8, subsection 2, paragraph d, Code
 23 28 1997, is amended to read as follows:
 23 29    d.  The director may require by rule that reports returns
 23 30 be filed by electronic transmission.
 23 31    Sec. 48.  Section 452A.8, subsection 3, Code 1997, is
 23 32 amended to read as follows:
 23 33    3.  For the purpose of determining the amount of the tax
 23 34 liability on alcohol blended to produce ethanol blended
 23 35 gasoline, each licensed blender shall, not later than the last
 24  1 day of each month following the month in which the blending is
 24  2 done, file with the department a monthly report return, signed
 24  3 under penalty for false certificate, containing information
 24  4 required by rules adopted by the director.
 24  5    Sec. 49.  Section 452A.9, Code 1997, is amended to read as
 24  6 follows:
 24  7    452A.9  REPORT RETURN FROM PERSONS NOT LICENSED AS
 24  8 SUPPLIERS, RESTRICTIVE SUPPLIERS, OR IMPORTERS.
 24  9    Every person other than a licensed supplier, restrictive
 24 10 supplier, or importer, who purchases, brings into this state,
 24 11 or otherwise acquires within this state motor fuel or undyed
 24 12 special fuel, not otherwise exempted, which the person has
 24 13 knowingly not paid or incurred liability to pay either to a
 24 14 licensee or to a dealer the motor fuel or special fuel tax,
 24 15 shall be subject to the provisions of this division that apply
 24 16 to suppliers, restrictive suppliers, and importers of motor
 24 17 fuel or undyed special fuel and shall make file the same
 24 18 reports returns and make the same tax payments and be subject
 24 19 to the same penalties for delinquent reporting or nonreporting
 24 20 filing or nonfiling or delinquent payment or nonpayment as
 24 21 apply to suppliers, restrictive suppliers, and importers.
 24 22    Sec. 50.  Section 452A.15, subsection 3, Code 1997, is
 24 23 amended to read as follows:
 24 24    3.  The reports required in this section shall be for
 24 25 information purposes only and the department may in its
 24 26 discretion waive the filing of any of these reports not
 24 27 necessary for proper administration of this division.  The
 24 28 reports required in this section shall be certified under
 24 29 penalty for false certificate and filed with the department
 24 30 within the time allowed for filing of suppliers' and
 24 31 restrictive suppliers' reports returns of motor fuel or
 24 32 special fuel withdrawn from a terminal within this state or
 24 33 imported into this state.
 24 34    Sec. 51.  Section 452A.17, subsection 1, paragraph a,
 24 35 subparagraph (4), Code Supplement 1997, is amended to read as
 25  1 follows:
 25  2    (4)  Fuel used in unlicensed vehicles, stationary engines,
 25  3 and implements used in agricultural production, and machinery
 25  4 and equipment used for nonhighway purposes.
 25  5    Sec. 52.  Section 452A.17, subsection 1, paragraph b,
 25  6 subparagraphs (4) and (5), Code Supplement 1997, are amended
 25  7 to read as follows:
 25  8    (4)  The claim shall state the gallonage of motor fuel or
 25  9 undyed special fuel that was used or will be used by the
 25 10 claimant other than in aircraft, watercraft, or to propel
 25 11 motor vehicles and the gallonage of undyed special fuel that
 25 12 was or will be used by the claimant other than in aircraft or
 25 13 to propel motor vehicles, the manner in which the motor fuel
 25 14 or undyed special fuel was used or will be used, and the
 25 15 equipment in which it was used or will be used.
 25 16    (5)  The claim shall state whether the claimant used fuel
 25 17 for aircraft, watercraft, or to propel motor vehicles from the
 25 18 same tanks or receptacles in which the claimant kept the motor
 25 19 fuel or undyed special fuel on which the refund is claimed or
 25 20 whether the claimant used fuel for aircraft or to propel motor
 25 21 vehicles from the same tanks or receptacles in which the
 25 22 claimant kept the undyed special fuel on which the refund is
 25 23 claimed.
 25 24    Sec. 53.  Section 452A.17, subsection 2, Code Supplement
 25 25 1997, is amended to read as follows:
 25 26    2.  In lieu of the refund provided in this section, a
 25 27 person may receive an income tax credit as provided in chapter
 25 28 422, division IX, but only as to motor fuel or undyed special
 25 29 fuel not used in motor vehicles, aircraft, or watercraft or as
 25 30 to undyed special fuel not used in motor vehicles or aircraft.
 25 31    Sec. 54.  Section 452A.17, subsection 3, paragraph b, Code
 25 32 Supplement 1997, is amended to read as follows:
 25 33    b.  A refund shall not be paid with respect to any motor
 25 34 fuel or undyed special fuel taken out of this state in supply
 25 35 tanks of watercraft, aircraft, or motor vehicles or with
 26  1 respect to any undyed special fuel taken out of this state in
 26  2 supply tanks of aircraft or motor vehicles.
 26  3    Sec. 55.  Section 452A.17, subsection 3, paragraph c, Code
 26  4 Supplement 1997, is amended by striking the paragraph.
 26  5    Sec. 56.  Section 452A.21, unnumbered paragraph 1, Code
 26  6 1997, is amended to read as follows:
 26  7    Persons not licensed under this division who blend motor
 26  8 fuel and alcohol to produce ethanol blended gasoline may file
 26  9 for a refund for the difference between taxes paid on the
 26 10 motor fuel purchased to produce ethanol blended gasoline and
 26 11 the tax due on the ethanol blended gasoline blended.  If,
 26 12 during any month, a person licensed under this division uses
 26 13 tax paid motor fuel to blend ethanol blended gasoline and the
 26 14 refund otherwise due under this section is greater than the
 26 15 licensee's total tax liability for that month, the licensee is
 26 16 entitled to a credit.  The claim for credit shall be filed as
 26 17 part of the report return required by section 452A.8.
 26 18    Sec. 57.  NEW SECTION.  452A.22  TAX COLLECTED ON EXEMPT
 26 19 FUEL.
 26 20    If an amount of tax represented by a licensee to a
 26 21 purchaser as constituting tax due is computed upon gallonage
 26 22 that is not taxable or the amount represented is in excess of
 26 23 the actual amount of tax due and the amount represented is
 26 24 actually paid by the purchaser to the licensee, the excess
 26 25 amount of tax paid shall be returned to the purchaser by the
 26 26 licensee.  If the licensee fails to return the excess tax paid
 26 27 to the purchaser, the amount which the purchaser has paid to
 26 28 the licensee shall be remitted by the licensee to the
 26 29 department.
 26 30    Sec. 58.  Section 452A.60, unnumbered paragraph 1, Code
 26 31 1997, is amended to read as follows:
 26 32    The department of revenue and finance or the state
 26 33 department of transportation shall prescribe and furnish all
 26 34 forms, as applicable, upon which reports, returns, and
 26 35 applications shall be made and claims for refund presented
 27  1 under this chapter and may prescribe forms of record to be
 27  2 kept by suppliers, restrictive suppliers, importers,
 27  3 exporters, blenders, common carriers, contract carriers,
 27  4 licensed compressed natural gas and liquefied petroleum gas
 27  5 dealers and users, terminal operators, and interstate
 27  6 commercial motor vehicle operators.
 27  7    Sec. 59.  Section 452A.61, Code 1997, is amended to read as
 27  8 follows:
 27  9    452A.61  TIMELY FILING OF REPORTS AND RETURNS – EXTENSION.
 27 10    The reports, returns, and remittances required under this
 27 11 chapter shall be deemed filed within the required time if
 27 12 postpaid, properly addressed and postmarked on or before
 27 13 midnight of the day on which due and payable.  If the final
 27 14 filing date falls on a Saturday, Sunday or legal holiday the
 27 15 next secular or business day shall be the final filing date.
 27 16    The department of revenue and finance or the state
 27 17 department of transportation upon application may grant a
 27 18 reasonable extension of time for the filing of any required
 27 19 report, return, or tax payment, or both.
 27 20    Sec. 60.  Section 452A.63, Code 1997, is amended to read as
 27 21 follows:
 27 22    452A.63  INFORMATION CONFIDENTIAL.
 27 23    All information obtained by the department of revenue and
 27 24 finance or the state department of transportation from the
 27 25 examining of reports, returns, or records required to be filed
 27 26 or kept under this chapter shall be treated as confidential
 27 27 and shall not be divulged except to other state officers, a
 27 28 member or members of the general assembly, or any duly
 27 29 appointed committee of either or both houses of the general
 27 30 assembly, or to a representative of the state having some
 27 31 responsibility in connection with the collection of the taxes
 27 32 imposed or in proceedings brought under the provisions of this
 27 33 chapter.  The appropriate state agency may make available to
 27 34 the public on or before forty-five days following the last day
 27 35 of the month in which the tax is required to be paid, the
 28  1 names of suppliers, restrictive suppliers, and importers and
 28  2 as to each of them the total gallons of motor fuel, undyed
 28  3 special fuel, and ethanol-blended gasoline withdrawn from
 28  4 terminals or imported into the state during that month.  The
 28  5 department of revenue and finance or the state department of
 28  6 transportation, upon request of officials entrusted with
 28  7 enforcement of the motor vehicle fuel tax laws of the federal
 28  8 government or any other state, may forward to such these
 28  9 officials any pertinent information which the appropriate
 28 10 state agency may have relative to motor fuel and special fuel
 28 11 provided the officials of the other state furnish like
 28 12 information.
 28 13    Any person violating the provisions of this section, and
 28 14 disclosing the contents of any records, returns, or reports
 28 15 required to be kept or made under the provisions of this
 28 16 chapter, except as otherwise provided, shall be guilty of a
 28 17 simple misdemeanor.
 28 18    Sec. 61.  Section 452A.67, Code 1997, is amended to read as
 28 19 follows:
 28 20    452A.67  LIMITATION ON COLLECTION PROCEEDINGS.
 28 21    The department shall examine the return and enforce
 28 22 collection of any amount of tax, penalty, fine, or interest
 28 23 over and above the amount shown to be due by reports the
 28 24 return filed by a licensee as soon as practicable but no later
 28 25 than three years after the return is filed.  An assessment
 28 26 shall not be made covering a period beyond three years after
 28 27 the return is filed except that the period for the examination
 28 28 and determination of the correct amount of tax is unlimited in
 28 29 the case of a false or fraudulent return made with the intent
 28 30 to evade tax or in the case of a failure to file a return.
 28 31    Sec. 62.  Section 452A.68, unnumbered paragraph 1, Code
 28 32 1997, is amended to read as follows:
 28 33    If a licensee files a false report return of the data or
 28 34 information required by this chapter, or fails, refuses, or
 28 35 neglects to file a report return required by this chapter, or
 29  1 to pay the full amount of fuel tax as required by this
 29  2 chapter, or is substantially delinquent in paying a tax due,
 29  3 owing, and administered by the department of revenue and
 29  4 finance, and interest and penalty if appropriate, or if the
 29  5 person is a corporation and if any officer having a
 29  6 substantial legal or equitable interest in the ownership of
 29  7 the corporation owes any delinquent tax of the licensee
 29  8 corporation, or interest or penalty on the tax, administered
 29  9 by the department, then after ten days' written notice by mail
 29 10 directed to the last known address of the licensee setting a
 29 11 time and place at which the licensee may appear and show cause
 29 12 why the license should not be canceled, and if the licensee
 29 13 fails to appear or if upon the hearing it is shown that the
 29 14 licensee failed to correctly report or pay the tax, the
 29 15 appropriate state agency may cancel the license and shall
 29 16 notify the licensee of the cancellation by mail to the
 29 17 licensee's last known address.
 29 18    Sec. 63.  Section 452A.74A, subsection 7, Code 1997, is
 29 19 amended to read as follows:
 29 20    7.  FALSE OR FRAUDULENT REPORT OR RETURN.  Any person,
 29 21 including an officer of a corporation or a manager of a
 29 22 limited liability company, who is required to make, render,
 29 23 sign, or verify any report or return required by this chapter
 29 24 and who makes a false or fraudulent report or return, or who
 29 25 fails to file a report or return with the intent to evade the
 29 26 tax, shall be guilty of a fraudulent practice.  Any person who
 29 27 aids, abets, or assists another person in making any false or
 29 28 fraudulent report or return or false statement in any report
 29 29 or return with the intent to evade payment of tax shall be
 29 30 guilty of a fraudulent practice.
 29 31    Sec. 64.  Section 452A.86, Code 1997, is amended to read as
 29 32 follows:
 29 33    452A.86  METHOD OF DETERMINING GALLONAGE.
 29 34    The exclusive method of determining gallonage of any
 29 35 purchases or sales of motor fuel, undyed special fuel,
 30  1 compressed natural gas, or liquefied petroleum gas as defined
 30  2 in this chapter and distillate fuels shall be on a gross
 30  3 volume basis.  A temperature-adjusted or other method shall
 30  4 not be used, except as it applies to liquefied petroleum gas
 30  5 and the sale or exchange of petroleum products between
 30  6 petroleum refiners.  All invoices, bills of lading, or other
 30  7 records of sale or purchase and all reports returns or records
 30  8 required to be made, kept, and maintained by a supplier,
 30  9 restrictive supplier, importer, exporter, blender, or
 30 10 compressed natural gas or liquefied petroleum gas dealer or
 30 11 user shall be made, kept, and maintained on the gross volume
 30 12 basis.  For purposes of this section, "distillate fuels" means
 30 13 any fuel oil, gas oil, topped crude oil, or other petroleum
 30 14 oils derived by refining or processing crude oil or unfinished
 30 15 oils which have a boiling range at atmospheric pressure which
 30 16 falls completely or in part between five hundred fifty and
 30 17 twelve hundred degrees Fahrenheit.
 30 18    Sec. 65.  Section 453A.6, subsection 3, Code 1997, is
 30 19 amended to read as follows:
 30 20    3.  Payment of such the tax shall be evidenced by stamps
 30 21 purchased from the department by a distributor or manufacturer
 30 22 and securely affixed to each individual package of cigarettes
 30 23 in amounts equal to the tax thereon as imposed by this
 30 24 chapter, or by the impressing of an indicium upon individual
 30 25 packages of cigarettes, under regulations prescribed by the
 30 26 director.
 30 27    Sec. 66.  Section 453A.6, Code 1997, is amended by adding
 30 28 the following new subsections:
 30 29    NEW SUBSECTION.  4.  Any other person who purchases or is
 30 30 in possession of unstamped cigarettes shall pay the tax
 30 31 directly to the department.
 30 32    NEW SUBSECTION.  5.  The per cigarette amount of the tax
 30 33 shall be added to the selling price of every package of
 30 34 cigarettes sold in this state and shall be collected from the
 30 35 purchaser so that the ultimate consumer bears the burden of
 31  1 the tax.
 31  2    Sec. 67.  Section 453A.8, subsection 1, Code 1997, is
 31  3 amended to read as follows:
 31  4    1.  Stamps shall be sold by and purchased from the
 31  5 department.  The department shall sell stamps to the holder of
 31  6 a state distributor's or manufacturer's permit which has not
 31  7 been revoked and to no other person.  Stamps shall be sold to
 31  8 the permit holders at a discount of two percent of the face
 31  9 value.  Stamps shall be sold in unbroken books of one thousand
 31 10 stamps, unbroken rolls of thirty thousand stamps, or unbroken
 31 11 lots of any other from form authorized by the director.
 31 12    Sec. 68.  Section 453A.15, subsections 1, 3, 4, and 6, Code
 31 13 1997, are amended to read as follows:
 31 14    1.  The director may prescribe the forms necessary for the
 31 15 efficient administration of this division and may require
 31 16 uniform books and records to be used and kept by each permit
 31 17 holder or other person as deemed necessary.  The director may
 31 18 also require each permit holder or other person to keep and
 31 19 retain in the director's possession evidence on prescribed
 31 20 forms of all transactions involving the purchase and sale of
 31 21 cigarettes or the purchase and use of stamps.  The evidence
 31 22 shall be kept for a period of two years from the date of each
 31 23 transaction, for the inspection at all times by the
 31 24 department.
 31 25    3.  The director may by regulation require every holder of
 31 26 a manufacturer's or state permit or other person to make and
 31 27 deliver to the department on or before the tenth day of each
 31 28 month a report or reports for the preceding calendar month,
 31 29 upon a form or forms prescribed by the director, and may
 31 30 require that such the reports shall be properly sworn to and
 31 31 executed by the permit holder or the holder's duly authorized
 31 32 representative or other person.
 31 33    4.  Every permit holder or other person shall, when
 31 34 requested by the department, make such additional reports as
 31 35 the department deems necessary and proper and shall at the
 32  1 request of the department furnish full and complete
 32  2 information pertaining to any transaction of the permit holder
 32  3 or other person involving the purchase or sale or use of
 32  4 cigarettes or purchase of cigarette stamps.
 32  5    6.  If any distributor, manufacturer, or other person fails
 32  6 or refuses to pay any tax, penalties, or cost of audit
 32  7 hereinafter provided, and it becomes necessary to bring suit
 32  8 or to intervene in any manner for the establishment or
 32  9 collection of said claims, in any judicial proceedings, any
 32 10 report filed in the office of the director by such the
 32 11 distributor, manufacturer, or other person, or the
 32 12 distributor's, manufacturer's, or other person's
 32 13 representative, or a copy thereof, certified to by the
 32 14 director, showing the number of cigarettes sold by such the
 32 15 distributor, or the distributor's representative, the
 32 16 manufacturer, or the other person, upon which such a tax,
 32 17 penalty, or cost of audit has not been paid, or any audit made
 32 18 by the department from the books or records of said the
 32 19 distributor, manufacturer, or other person when signed and
 32 20 sworn to by the agent of the department making the audit as
 32 21 being made from the records of said the distributor,
 32 22 manufacturer, or other person from or to whom such the
 32 23 distributor, manufacturer, or other person has bought,
 32 24 received, or delivered cigarettes, whether from a
 32 25 transportation company or otherwise, such report or audit
 32 26 shall be admissible in evidence in such proceedings and shall
 32 27 be prima facie evidence of the contents thereof; provided,
 32 28 however, that.  However, the incorrectness of said the report
 32 29 or audit may be shown.
 32 30    Sec. 69.  Section 453A.16, Code 1997, is amended to read as
 32 31 follows:
 32 32    453A.16  MANUFACTURER'S PERMIT.
 32 33    The department may, upon application of any manufacturer,
 32 34 issue without charge to such the manufacturer a manufacturer's
 32 35 permit.  Such The application shall contain such information
 33  1 as the director shall prescribe.  The holder of such a
 33  2 manufacturer's permit shall be is authorized to purchase
 33  3 stamps from the department, and to must affix such stamps to
 33  4 individual packages of cigarettes outside of this state, prior
 33  5 to their shipment into the state unless the cigarettes are
 33  6 shipped to an Iowa permitted distributor or an Iowa permitted
 33  7 distributor's agent.
 33  8    Sec. 70.  Section 453A.28, Code 1997, is amended to read as
 33  9 follows:
 33 10    453A.28  ASSESSMENT OF TAX BY DEPARTMENT – INTEREST –
 33 11 PENALTY.
 33 12    If after any audit, examination of records, or other
 33 13 investigation the department finds that any person has sold
 33 14 cigarettes without stamps affixed thereto or that any person
 33 15 responsible for paying the tax has not done so as required by
 33 16 this division, the department shall fix and determine the
 33 17 amount of tax due, and shall assess the tax against the
 33 18 person, together with a penalty as provided in section 421.27.
 33 19 The taxpayer shall pay interest on the tax or additional tax
 33 20 at the rate determined under section 421.7 counting each
 33 21 fraction of a month as an entire month, computed from the date
 33 22 the tax was due.  If any person fails to furnish evidence
 33 23 satisfactory to the director showing purchases of sufficient
 33 24 stamps to stamp unstamped cigarettes purchased by the person,
 33 25 the presumption shall be that the cigarettes were sold without
 33 26 the proper stamps affixed thereto.  Within two years after the
 33 27 return report is filed or within two years after the return
 33 28 report became due, whichever is later, the department shall
 33 29 examine the return report and determine the correct amount of
 33 30 tax.  The period for examination and determination of the
 33 31 correct amount of tax is unlimited in the case of a false or
 33 32 fraudulent report made with the intent to evade tax, or in the
 33 33 case of a failure to file a report, or if a person purchases
 33 34 or is in possession of unstamped cigarettes.
 33 35    Sec. 71.  Section 453A.29, Code 1997, is amended to read as
 34  1 follows:
 34  2    453A.29  NOTICE AND APPEAL.
 34  3    The department shall notify any person assessed pursuant to
 34  4 section 453A.28 by sending a written notice of the
 34  5 determination by mail to the principal place of business of
 34  6 the person as shown on the person's application for permit,
 34  7 and if an application was not filed by the person, to the
 34  8 person's last known address.  A determination by the
 34  9 department of the amount of tax, penalty, and interest due, or
 34 10 the amount of refund for excess tax paid, is final, unless the
 34 11 person aggrieved by the determination appeals to the director
 34 12 for a revision of the determination within sixty days from the
 34 13 postmark date of the notice of determination of tax, penalty,
 34 14 and interest or refund owing or unless the taxpayer contests
 34 15 the determination by paying the tax, interest, and penalty and
 34 16 timely filing a claim for refund.  The director shall grant a
 34 17 hearing and upon the hearing, the director shall determine the
 34 18 correct tax, penalty, and interest or refund due and notify
 34 19 the appellant of the decision by mail.  Judicial review of
 34 20 action of the director may be sought in accordance with the
 34 21 Iowa administrative procedure Act and section 422.29.
 34 22    Sec. 72.  Section 453A.31, Code 1997, is amended by
 34 23 striking the section and inserting in lieu thereof the
 34 24 following:
 34 25    453A.31  CIVIL PENALTY FOR CERTAIN VIOLATIONS.
 34 26    If a permit holder fails to keep any of the records
 34 27 required to be kept by the provisions of this division, or
 34 28 sells cigarettes upon which a tax is required to be paid by
 34 29 this division without at the time having a valid permit, or if
 34 30 a distributor, wholesaler, manufacturer, or distributing agent
 34 31 fails to make reports to the department as required, or makes
 34 32 a false or incomplete report to the department, or if a
 34 33 distributing agent stores unstamped cigarettes in the state or
 34 34 distributes or delivers unstamped cigarettes within this state
 34 35 without at the time of storage or delivery having a valid
 35  1 permit, or if a person purchases or is in possession of
 35  2 unstamped cigarettes, or if a person affected by this division
 35  3 fails or refuses to abide by any of its provisions or the
 35  4 rules adopted under this division, the person is civilly
 35  5 liable to the state for a penalty as follows:
 35  6    1.  For possession of unstamped cigarettes:
 35  7    a.  A two hundred dollar penalty for the first violation if
 35  8 a person is in possession of more than forty but not more than
 35  9 four hundred unstamped cigarettes.
 35 10    b.  A five hundred dollar penalty for the first violation
 35 11 if a person is in possession of more than four hundred but not
 35 12 more than two thousand unstamped cigarettes.
 35 13    c.  A one thousand dollar penalty for the first violation
 35 14 if a person is in possession of more than two thousand
 35 15 unstamped cigarettes.
 35 16    d.  For a second violation within two years of the first
 35 17 violation, the penalty is four hundred dollars if a person is
 35 18 in possession of more than forty but not more than four
 35 19 hundred unstamped cigarettes; one thousand dollars if a person
 35 20 is in possession of more than four hundred but not more than
 35 21 two thousand unstamped cigarettes; and two thousand dollars if
 35 22 a person is in possession of more than two thousand unstamped
 35 23 cigarettes.
 35 24    e.  For a third or subsequent violation within two years of
 35 25 the first violation, the penalty is six hundred dollars if a
 35 26 person is in possession of more than forty but not more than
 35 27 four hundred unstamped cigarettes; one thousand five hundred
 35 28 dollars if a person is in possession of more than four hundred
 35 29 but not more than two thousand unstamped cigarettes; and three
 35 30 thousand dollars if a person is in possession of more than two
 35 31 thousand unstamped cigarettes.
 35 32    2.  For all other violations of this section:
 35 33    a.  A two hundred dollar penalty for the first violation.
 35 34    b.  A five hundred dollar penalty for a second violation
 35 35 within two years of the first violation.
 36  1    c.  A thousand dollar penalty for a third or subsequent
 36  2 violation within two years of the first violation.
 36  3    The penalty imposed under this section shall be assessed
 36  4 and collected pursuant to section 453A.28 and is in addition
 36  5 to the tax, penalty, and interest imposed in that section.
 36  6    Sec. 73.  Section 453A.45, subsections 2, 3, and 4, Code
 36  7 1997, are amended to read as follows:
 36  8    2.  Every person who sells tobacco products to persons
 36  9 other than the ultimate consumer shall render with each sale
 36 10 itemized invoices showing the seller's name and address, the
 36 11 purchaser's name and address, the date of sale, and all prices
 36 12 and discounts.  The person shall preserve legible copies of
 36 13 all such invoices for one year two years from the date of
 36 14 sale.
 36 15    3.  Every retailer and subjobber shall procure itemized
 36 16 invoices of all tobacco products purchased.  The invoices
 36 17 shall show the name and address of the seller and the date of
 36 18 purchase.  The retailer and subjobber shall preserve a legible
 36 19 copy of each such invoice for one year two years from the date
 36 20 of purchase.  Invoices shall be available for inspection by
 36 21 the director or the director's authorized agents or employees
 36 22 at the retailer's or subjobber's place of business.
 36 23    4.  Records of all deliveries or shipments of tobacco
 36 24 products from any public warehouse of first destination in
 36 25 this state which is subject to the provisions of and licensed
 36 26 under chapter 554 shall be kept by the warehouse and be
 36 27 available to the director for inspection.  They shall show the
 36 28 name and address of the consignee, the date, the quantity of
 36 29 tobacco products delivered, and such other information as the
 36 30 commissioner may require.  These records shall be preserved
 36 31 for one year two years from the date of delivery of the
 36 32 tobacco products.
 36 33    Sec. 74.  Section 453A.46, subsection 4, Code 1997, is
 36 34 amended to read as follows:
 36 35    4.  The department shall notify any person assessed
 37  1 pursuant to this section by sending a written notice of the
 37  2 determination by mail to the principal place of business of
 37  3 the person as shown on the person's application for permit,
 37  4 and if an application was not filed by the person, to the
 37  5 person's last known address.  A determination by the
 37  6 department of the amount of tax, penalty, and interest due, or
 37  7 the amount of refund for excess tax paid, is final, unless the
 37  8 person aggrieved by the determination appeals to the director
 37  9 for a revision of the determination within sixty days from the
 37 10 postmark date of the notice of determination of tax, penalty,
 37 11 and interest or refund owing or unless the taxpayer contests
 37 12 the determination by paying the tax, interest, and penalty and
 37 13 timely filing a claim for refund.  The director shall grant a
 37 14 hearing and upon the hearing, the director shall determine the
 37 15 correct tax, penalty, and interest or refund due and notify
 37 16 the appellant of the decision by mail.  Judicial review of
 37 17 action of the director may be sought in accordance with
 37 18 chapter 17A and section 422.29.
 37 19    Sec. 75.  Section 602.8102, subsection 59, Code Supplement
 37 20 1997, is amended by striking the subsection.
 37 21    Sec. 76.  Section 633.272, Code 1997, is amended to read as
 37 22 follows:
 37 23    633.272  PARTIAL INTESTACY.
 37 24    If part but not all of the estate of a decedent is validly
 37 25 disposed of by will, the part not disposed of by will shall be
 37 26 distributed as provided herein for intestate estates.  If the
 37 27 testator left a surviving spouse, and the spouse does not
 37 28 elect to take against the will, the spouse shall receive, in
 37 29 addition to the property given to the spouse by the will, all
 37 30 of the intestate property which shall be subject to the
 37 31 payment of its proportionate share of debts and charges
 37 32 against the estate the amount of intestate property set forth
 37 33 in section 633.211 or 633.212.
 37 34    Sec. 77.  Section 422.90, Code 1997, is repealed.
 37 35    Sec. 78.  Section 450.92, Code 1997, is repealed.
 38  1    Sec. 79.  DIRECTIONS TO CODE EDITOR.  The Iowa Code editor
 38  2 shall transfer sections 427.3 through 427.7 to chapter 426A
 38  3 and change internal references as necessary.
 38  4    Sec. 80.  EFFECTIVE AND APPLICABILITY DATES.
 38  5    1.  Section 7 of this Act, amending section 422.13,
 38  6 subsection 5, applies retroactively to January 1, 1998, for
 38  7 tax years beginning on or after that date.
 38  8    2.  Section 9 of this Act, amending section 422.23,
 38  9 unnumbered paragraph 2, applies retroactively to January 1,
 38 10 1997, for tax years beginning on or after that date.
 38 11    3.  Sections 37 through 42 and section 78 of this Act,
 38 12 amending chapters 450 and 451, take effect July 1, 1998, for
 38 13 estates of decedents dying on or after that date.
 38 14    4.  This Act, being deemed of immediate importance, takes
 38 15 effect upon enactment.  
 38 16                           EXPLANATION
 38 17    The bill amends various provisions of state tax law.  The
 38 18 amendments that are not just eliminating obsolete provisions
 38 19 are as follows:
 38 20    Code section 421.1 is amended to delete the requirement
 38 21 that the state board of tax review meet six times a year and
 38 22 now provides that the state board meet as necessary.
 38 23    Code section 421.17 is amended to provide, as part of the
 38 24 centralized debt collection system, that the department of
 38 25 revenue and finance is to notify a debtor of the clerk of
 38 26 court's right to all or a portion of any payment due the
 38 27 debtor from any state agency.
 38 28    Code section 421.18 is amended to provide that not only
 38 29 public officers need to give the director information to
 38 30 assist in tax administration but employees and local
 38 31 governments need to also provide the information.
 38 32    Code section 421.40 is amended to provide that departments
 38 33 may enter into contracts for goods and services and pay
 38 34 interest on payment terms of less than 60 days.
 38 35    Code section 422.13 is amended to remove the requirement
 39  1 that taxpayers need to get permission to file a composite
 39  2 return and provides that limited liability companies may join
 39  3 the filing of a composite return.
 39  4    Code section 422.16 is amended to provide, that at the
 39  5 discretion of the director, withholding agents need not send
 39  6 wage and tax statements with the annual report if the
 39  7 information is available from other sources such as the
 39  8 internal revenue service or other state or federal agencies.
 39  9    Code sections 422.23 and 602.8102(59), are amended to
 39 10 strike the requirement that provides that personal
 39 11 representatives of an estate can apply to the district court
 39 12 to determine initially whether the estate is subject to Iowa
 39 13 income tax.
 39 14    Code sections 422.25, 422.47(4), 424.10, 429.2(1),
 39 15 450.94(2), 450.94(3), 453A.29, and 453A.46(4) are amended to
 39 16 provide that the 30-or 60-day appeal period, as applicable,
 39 17 commences on the date of the notice.  Presently, the appeal
 39 18 period commences on the postmark date of the notice.
 39 19    Code section 422.25(3) is amended to provide that when a
 39 20 taxpayer has paid 90 percent of the final tax liability by the
 39 21 original due date and files the return sometime in the six-
 39 22 month extended period after the original due date, interest on
 39 23 an overpayment of tax on the return starts to accrue two
 39 24 months after the end of the six-month extended period.
 39 25    Code section 422.33(1) is amended to remove the provision
 39 26 that imposes the Iowa corporate income tax upon a corporation
 39 27 whose legal domicile (place where the corporation was created)
 39 28 is in Iowa and instead provides it on all corporations doing
 39 29 business in Iowa.
 39 30    Code sections 422.33(2) is amended to provide that an Iowa-
 39 31 based corporation whose only activity outside Iowa is the
 39 32 ownership of intangible assets that have acquired a business
 39 33 situs outside Iowa may apportion its income to determine the
 39 34 portion of its income which is subject to Iowa income tax.
 39 35    Code sections 422.42(6), 422.42(18), and 422.45(46) are
 40  1 amended to make the exemption from Iowa sales tax for services
 40  2 performed on tangible property delivered into interstate
 40  3 commerce the same as the exemption from Iowa sales tax on
 40  4 tangible personal property delivered to a point outside of
 40  5 Iowa.
 40  6    Code section 422.45(7) is amended to provide that
 40  7 governmental units, nonprofit educational institutions, and
 40  8 nonprofit private museums have one year instead of six months
 40  9 from final payment to apply for a refund of sales or use tax
 40 10 paid by a contractor on materials used in the performance of a
 40 11 construction contract.
 40 12    Code section 422.47, which relates to the use of sales tax
 40 13 exemption certificates, is amended to provide that an
 40 14 exemption certificate may be used to substantiate the sale of
 40 15 nontaxable items as well as sales made to persons holding a
 40 16 direct pay permit.  Current law only provides for exemption
 40 17 certificates for materials purchased for resale or use in
 40 18 processing.
 40 19    Code section 422.50 is amended to provide that retailers
 40 20 are required to keep records on the gross receipts from the
 40 21 sale of services as well as the sale of tangible personal
 40 22 property.
 40 23    Code section 422.60(1) is amended to allow the department
 40 24 to impose the franchise tax on financial institutions doing
 40 25 business in this state as corporations rather than as
 40 26 financial institutions.
 40 27    Code section 422.68(4) is amended to allow the department
 40 28 to use new technologies to preserve records as required by
 40 29 law.
 40 30    Code section 422.72(1) is amended to make it unlawful to
 40 31 willfully inspect returns for any reason other than as
 40 32 authorized by the director of revenue and finance.  The
 40 33 penalty is a serious misdemeanor.
 40 34    Code section 422.90 is repealed.  The section stated that
 40 35 the penalty imposed for underpayment of estimated tax is not
 41  1 subject to waiver for reasonable cause.
 41  2    Code section 422.110 is amended to provide that an income
 41  3 tax credit in lieu of a full tax refund is not available for
 41  4 credit relating to casualty loss, transport diversions,
 41  5 pumping credits, blending errors, idle time, power takeoffs,
 41  6 reefer units, and exports by eligible purchasers.  However, a
 41  7 refund remains available if a refund permit is obtained from
 41  8 the department.
 41  9    Code section 422.111 is amended to provide that a refund is
 41 10 only available for undyed special fuel since no tax is imposed
 41 11 on dyed special fuel.
 41 12    Code section 422B.10(2) is amended to provide that if an
 41 13 overpayment has been made to a local jurisdiction for local
 41 14 option sales tax during the previous fiscal year, the November
 41 15 payment must reflect the adjustment.
 41 16    Code section 422D.3 is amended to move a local income
 41 17 surtax fund from the state treasurer's office to the
 41 18 department of revenue and finance.
 41 19    Code section 427.1(14) is amended to move the sign-up date
 41 20 from July 1 to April 15 for claiming a property tax exemption
 41 21 by war veterans organizations and religious, literary, and
 41 22 charitable societies.  This would allow the taxpayer to appeal
 41 23 the assessment to the board of review prior to its adjournment
 41 24 if the claim is denied.
 41 25    Code section 427.1(24) is amended to provide a February 1
 41 26 deadline for certifying eligibility for the wildlife habitat
 41 27 property tax exemption.  Other property tax credit and
 41 28 exemptions provide specific certification deadlines.
 41 29    Code sections 427.3 through 427.7 are to be transferred to
 41 30 Code chapter 426A by the Iowa Code editor so that all
 41 31 provisions pertaining to the military service property tax
 41 32 exemption appear in the same chapter.
 41 33    Code section 428.1 is amended to provide that the listing
 41 34 contained in section 428.1, subsections 1 through 5, does not
 41 35 encompass all situations where a person is required to list
 42  1 property for the assessor.
 42  2    Code section 450.4(5) is amended to provide that the
 42  3 exemption from Iowa inheritance tax does not apply to
 42  4 installment payments received by a nonresident beneficiary
 42  5 under an annuity which was purchased under an employee pension
 42  6 or retirement plan, that are includable as net income under
 42  7 Code section 422.7, but exempt from Iowa income tax under Code
 42  8 section 422.8(2).
 42  9    Code section 450.20 is amended to specify that the
 42 10 department must keep a separate record on any deferred estate
 42 11 where the tax is not paid within 15 months from the date of
 42 12 death.
 42 13    Code section 450.22 is amended to provide that, in addition
 42 14 to the surviving spouse as already provided in this statute,
 42 15 when the estate does not have a federal estate tax obligation
 42 16 and all property of the estate is held in joint tenancy with
 42 17 the right of survivorship solely by the decedent and a lineal
 42 18 ascendant, child, stepchild, or lineal descendant, or any
 42 19 combination of these individuals, an Iowa inheritance tax
 42 20 return need not be filed.
 42 21    Code section 450.37 is amended to allow the department of
 42 22 revenue and finance to adjust previously accepted, submitted,
 42 23 appraised, or agreed upon values of real property if the new
 42 24 values have been accepted for federal estate tax purposes.
 42 25 Also, the personal representative for the estate may claim a
 42 26 refund of tax if the personal representative for the estate
 42 27 files a claim for refund within six months of the final
 42 28 disposition of any real property valuation matter.
 42 29    Code section 451.12 is amended to provide that a lien for
 42 30 Iowa estate tax could be made on those items listed as
 42 31 exemptions under Code section 450.7 for inheritance tax.
 42 32    Code section 452A.2(11) and (17) are amended to provide
 42 33 that a person need not export fuel exclusively to be
 42 34 considered an exporter and that transmix is taxed as motor
 42 35 vehicle fuel.  Transmix is a product that is used as a buffer
 43  1 between fuel types being transported through a pipeline.
 43  2    Code sections 452A.8, 452A.9, 452A.15, 452A.21, 452A.60,
 43  3 452A.61, 452A.63, 452A.67, 452A.68, 452A.74A, and 452A.86 are
 43  4 amended to provide consistency in the motor vehicle fuel tax
 43  5 by changing the word "report" to "return".  When the motor
 43  6 vehicle fuel tax chapters were amended to change the point of
 43  7 taxation during the 1995 Session of the General Assembly,
 43  8 these sections were not amended.
 43  9    Code section 452A.17(1) is amended to provide that a fuel
 43 10 tax refund is available for machinery and equipment used for
 43 11 nonhighway purposes.
 43 12    Code section 452A.17 is also amended to provide that
 43 13 records need to be kept relating to fuel used in watercraft
 43 14 and further to provide that no refund will be issued for
 43 15 undyed special fuel taken out of the state in the fuel supply
 43 16 tank of a vehicle.
 43 17    Code section 452A.22 is created to require a licensee who
 43 18 collects tax in error from a consumer to either return the tax
 43 19 to the consumer or remit it to the department.
 43 20    Code section 453A.6(3) is amended to list distributors and
 43 21 manufacturers as those who must stamp cigarettes.
 43 22    Code section 453A.6 is also amended by adding two new
 43 23 subsections.  The first new subsection provides that any
 43 24 person who is in possession of unstamped cigarettes shall pay
 43 25 the tax directly to the department.  The second new subsection
 43 26 provides that the tax shall be added to the selling price and
 43 27 collected from the purchasers so that the ultimate consumer
 43 28 bears the burden of the tax.
 43 29    Code section 453A.8(1) is amended to provide that the
 43 30 department is no longer required to sell cigarette stamps in
 43 31 unbroken books of 1,000 stamps.
 43 32    Code section 453A.15 is amended to provide that any person
 43 33 who is not licensed must keep records, file reports, and pay
 43 34 the cigarette tax in the same manner as permit holders.
 43 35    Code section 453A.16 is amended to provide that
 44  1 manufacturers of cigarettes may only ship unstamped cigarettes
 44  2 into the state to licensed distributors or licensed
 44  3 distributors' agents.
 44  4    Code section 453A.28 is amended to provide that the two-
 44  5 year statute of limitations does not apply if a false or
 44  6 fraudulent report is made with the intent to evade tax, if a
 44  7 report is not filed, or if the person is in possession of
 44  8 unstamped cigarettes.  In these instances, the statute of
 44  9 limitations is unlimited.
 44 10    Code section 453A.31 deals with a civil penalty for failure
 44 11 to keep records, selling cigarettes without a valid permit,
 44 12 making a false or incomplete report, or failing to abide with
 44 13 rules of the department.  The present penalty is $50 for each
 44 14 offense, each violation is a separate offense, and the same
 44 15 violation is a separate offense for each day it continues.
 44 16    The amendment to the Code section strikes the $50-a-day
 44 17 penalty in lieu of a three-tiered civil penalty for the above
 44 18 offenses:  $200 for the first offense; $500 for the second
 44 19 offense within two years; $1,000 for the third offense within
 44 20 two years and for subsequent offenses.
 44 21    A second three-tiered penalty for possession of unstamped
 44 22 cigarettes is provided.  This penalty is based on the number
 44 23 of cigarettes in the person's possession.  
 44 24 Number of     1st Violation   2nd Violation   Third
 44 25 Cigarettes    Within 2 Years  Within 2 Years  Violation
 44 26    41-400        $200             $400           $600
 44 27   401-2,000      $500           $1,000         $1,500
 44 28    2,001 or
 44 29      more      $1,000           $2,000         $3,000
 44 30    These penalties are no longer subject to mandatory waiver
 44 31 for reasonable cause.
 44 32    Code section 453A.45(2), (3), and (4) are amended to
 44 33 require persons who sell tobacco products to retain records
 44 34 for two years from the date of sale instead of the present
 44 35 one-year requirement.
 45  1    Code section 633.272 is amended to provide that, under
 45  2 partial intestacy, a surviving spouse is entitled to receive
 45  3 the amount of intestate property as provided in Code section
 45  4 633.211 or 633.212.
 45  5    The bill takes effect upon enactment and some provisions
 45  6 have different applicability date provisions than the
 45  7 effective date.  
 45  8 LSB 3233SV 77
 45  9 mg/sc/14
     
Text: SF02359                           Text: SF02361
Text: SF02300 - SF02399                 Text: SF Index
Bills and Amendments: General Index     Bill History: General Index

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