Text: SSB00254 Text: SSB00256 Text: SSB00200 - SSB00299 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. Section 422.45, Code 1997, is amended by adding
1 2 the following new subsection:
1 3 NEW SUBSECTION. 7A. Refunds of sales and use taxes paid
1 4 on transportation construction projects let by the state
1 5 department of transportation are subject to the special
1 6 provisions of this subsection.
1 7 a. A contractor awarded a contract for a transportation
1 8 construction project is considered the consumer of all
1 9 building materials, building supplies, and equipment and shall
1 10 pay sales tax to the supplier or remit consumer use tax
1 11 directly to the department.
1 12 b. The contractor is not required to file information with
1 13 the state department of transportation stating the amount of
1 14 goods, wares, or merchandise, or services rendered, furnished,
1 15 or performed and used in the performance of the contract or
1 16 the amount of sales or use tax paid.
1 17 c. The state department of transportation shall file a
1 18 refund claim based on a formula that considers the following:
1 19 (1) The quantity of materials to complete the contract,
1 20 and quantities of items of work.
1 21 (2) The estimated cost of the materials included in the
1 22 items of work, and the state sales or use tax to be paid
1 23 according to the tax rate in effect in section 422.43.
1 24 The quantity of materials shall be determined after each
1 25 letting based on the contract quantities of all items of work
1 26 let to contract. The quantity of individual component
1 27 materials required for each item shall be determined and
1 28 maintained in a database. The total quantities of materials
1 29 shall be determined by multiplying the quantity of component
1 30 materials for each contract item of work by the total
1 31 quantities of each contract item for each letting. Where
1 32 variances exist in the cost of materials, the lowest cost
1 33 shall be used as the base cost.
1 34 d. Only the state sales or use tax is refundable. Local
1 35 option taxes paid by the contractor are not refundable.
2 1 EXPLANATION
2 2 This bill amends Code section 422.45, regarding sales and
2 3 use tax, to include special provisions regarding the refund of
2 4 sales and use taxes paid on state department of transportation
2 5 construction projects. Under the provision, a contractor is
2 6 considered the consumer of materials, supplies, and equipment
2 7 and must pay sales or use taxes directly to the supplier or
2 8 the department. Contractors are not, however, required to
2 9 file information with the department regarding the amount of
2 10 goods, merchandise, or services rendered, furnished, or
2 11 performed. The department shall file for the sales or use tax
2 12 refund based upon a formula that shall include consideration
2 13 of the quantity of materials and items of work necessary to
2 14 complete the contract and the estimated cost of the materials
2 15 included in the items of work and the rate of tax paid. The
2 16 department is to maintain information on the materials needed
2 17 and used for each contract in a database. The provision
2 18 prohibits refunds on local option sales taxes paid by the
2 19 contractor.
2 20 LSB 2720SC 77
2 21 mk/cf/24
Text: SSB00254 Text: SSB00256 Text: SSB00200 - SSB00299 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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