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House Journal: Page 1727: Tuesday, April 29, 1997

Page   9

 1   or reconstruction necessary to the farm machinery's or
 2   equipment's exempt use in livestock or dairy
 3   production, use in aquaculture production, or in the
 4   production of flowering, ornamental, or vegetable
 5   plants.
 6     Sec. 19.  Section 422.47, subsection 4, paragraph
 7   f, Code 1997, is amended to read as follows:
 8     f.  In this section, "fuel" includes gas,
 9   electricity, water, heat, steam, and any other
10   tangible personal property consumed in creating heat,
11   power, or steam.  In this section, "fuel consumed in
12   processing" means fuel used or disposed of for
13   processing including grain drying, for providing heat
14   or cooling for livestock buildings or for greenhouses
15   or buildings or parts of buildings dedicated to the
16   production of flowering, ornamental, or vegetable
17   plants intended for sale in the ordinary course of
18   business, for use in aquaculture production, or for
19   generating electric current, or in implements of
20   husbandry engaged in agricultural production.  In this
21   subsection, "fuel exemption certificate" means an
22   exemption certificate given by the purchaser under
23   penalty of perjury to assist retailers in properly
24   accounting for nontaxable sales of fuel consumed in
25   processing.  In this subsection, "substantial change"
26   means a change in the use or disposition of tangible
27   personal property and services by the purchaser such
28   that the purchaser pays less than ninety percent of
29   the purchaser's actual sales tax liability.  A change
30   includes a misstatement of facts in an application
31   made pursuant to paragraph "c" or in a fuel exemption
32   certificate.
33     Sec. 20.  Section 422.53, Code 1997, is amended by
34   adding the following new subsection:
35     NEW SUBSECTION.  8.  a.  Except as provided in
36   paragraph "b", purchasers, users, and consumers of
37   tangible personal property or enumerated services
38   taxed pursuant to this division, chapter 423, or
39   chapter 422B, may be authorized, pursuant to rules
40   adopted by the director, to remit tax owed directly to
41   the department instead of the tax being collected and
42   paid by the seller.  To qualify for a direct pay tax
43   permit, the purchaser, user, or consumer must accrue a
44   tax liability of more than four thousand dollars in
45   tax under this division and chapter 423, in a
46   semimonthly period and make deposits and file returns
47   pursuant to section 422.52.  This authority shall not
48   be granted or exercised except upon application to the
49   director and then only after issuance by the director
50   of a direct pay tax permit.

Iowa General Assembly

Index: House Journal (77th General Assembly: Session 1)

© 1997 Cornell College and League of Women Voters of Iowa

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