Text: HF02277 Text: HF02279 Text: HF02200 - HF02299 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. Section 421.60, subsection 2, Code 1999, is
1 2 amended by adding the following new paragraph:
1 3 NEW PARAGRAPH. m. (1) The director may abate unpaid
1 4 state sales and use taxes and local sales and services taxes
1 5 owed by a retailer in the event that the retailer failed to
1 6 collect tax from the purchaser as a result of erroneous
1 7 written advice issued by the department that was specially
1 8 directed to the retailer by the department and the retailer is
1 9 unable to collect the tax, interest, or penalties from the
1 10 purchaser. Before the tax, interest, and penalties shall be
1 11 abated on the basis of erroneous written advice, the retailer
1 12 must present a copy of the retailer's request for written
1 13 advice to the department and a copy of the department's reply.
1 14 The department shall not maintain a position against the
1 15 retailer that is inconsistent with the erroneous written
1 16 advice, except on the basis of subsequent written advice sent
1 17 by the department to that retailer, or a change in state or
1 18 federal law, a reported court case to the contrary, a contrary
1 19 rule adopted by the department, a change in material facts or
1 20 circumstances relating to the retailer, or the retailer's
1 21 misrepresentation or incomplete or inadequate representation
1 22 of material facts and circumstances in requesting the written
1 23 advice.
1 24 (2) The director shall abate the unpaid state sales and
1 25 use taxes and any local sales and services taxes owed by a
1 26 retailer where the retailer failed to collect the tax from the
1 27 purchaser on the charges paid for access to on-line computer
1 28 services as a result of erroneous written advice issued by the
1 29 department regarding the taxability of charges paid for access
1 30 to on-line computer services. To qualify for the abatement
1 31 under this subparagraph, the erroneous written advice shall
1 32 have been issued by the department prior to July 1, 1999, and
1 33 shall have been specially directed to the retailer by the
1 34 department.
1 35 (3) The director shall prepare quarterly reports
2 1 summarizing each case in which abatement of tax, interest, or
2 2 penalties was made. However, the report shall not disclose
2 3 the identity of the taxpayer. An abatement authorized by this
2 4 paragraph to a retailer shall not preclude the department from
2 5 proceeding to collect the liability from a purchaser.
2 6 Sec. 2. Section 422.52, subsection 6, paragraph a, Code
2 7 Supplement 1999, is amended to read as follows:
2 8 a. If a purchaser fails to pay tax imposed by this
2 9 division to the retailer required to collect the tax, then in
2 10 addition to all of the rights, obligations, and remedies
2 11 provided, the tax is payable by the purchaser directly to the
2 12 department, and sections 422.50, 422.51, 422.52, 422.54,
2 13 422.55, 422.56, 422.57, 422.58, and 422.59 apply to the
2 14 purchaser. For failure, the retailer and purchaser are
2 15 liable, unless the circumstances described in section 421.60,
2 16 subsection 2, paragraph "m", or section 422.47, subsection 3,
2 17 paragraph "b" or "e", or subsection 4, paragraph "b" or "d",
2 18 are applicable.
2 19 Sec. 3. EFFECTIVE DATE. This Act, being deemed of
2 20 immediate importance, takes effect upon enactment.
2 21 EXPLANATION
2 22 This bill extends the director of revenue and finance's
2 23 authority to abate unpaid state sales and use taxes and local
2 24 option sales and services taxes to situations in which a
2 25 retailer who is responsible for collecting these taxes fails
2 26 to do so in reliance on erroneous written advice specially
2 27 issued to the retailer by the department of revenue and
2 28 finance, and the retailer is unable to collect the unpaid
2 29 taxes from purchasers. The bill authorizes the director to
2 30 hold the retailer harmless by abating the uncollected amount
2 31 owing. The bill further provides that subsequent written
2 32 advice sent by the department of revenue and finance to the
2 33 retailer, or a change in state or federal law, a reported
2 34 contrary court case, a contrary rule adopted by the
2 35 department, or the retailer's misrepresentation or incomplete
3 1 or inadequate representation of material facts and
3 2 circumstances in requesting the written advice, shall preclude
3 3 the abatement. An abatement of the unpaid tax by a retailer
3 4 under the circumstances provided in the bill does not preclude
3 5 the department of revenue and finance from collecting the tax
3 6 from the purchaser.
3 7 The bill requires the abatement of taxes not collected as a
3 8 result of certain erroneous written advice issued by the
3 9 department to a retailer prior to July 1, 1999, relating to
3 10 sales and use taxes on charges for access to on-line computer
3 11 services.
3 12 The bill takes effect upon enactment.
3 13 LSB 5684HH 78
3 14 mg/cls/14.1
Text: HF02277 Text: HF02279 Text: HF02200 - HF02299 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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