Text: HF02277                           Text: HF02279
Text: HF02200 - HF02299                 Text: HF Index
Bills and Amendments: General Index     Bill History: General Index



House File 2278

Partial Bill History

Bill Text

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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