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30 SENATE FILE 136
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60 AN ACT
72 RELATING TO THE ADMINISTRATION OF THE TAX AND RELATED LAWS
74 BY THE DEPARTMENT OF REVENUE AND FINANCE, INCLUDING
76 ADMINISTRATION OF STATE INDIVIDUAL INCOME, CORPORATE
78 INCOME, FRANCHISE, SALES AND USE, MOTOR FUEL, CIGARETTE
80 AND TOBACCO, LOCAL OPTION, INHERITANCE AND ESTATE, AND
82 PROPERTY TAXES, AND THE LIVESTOCK PRODUCTION CREDIT;
84 PROVIDING PENALTIES; AND INCLUDING EFFECTIVE AND RETRO-
86 ACTIVE APPLICABILITY DATE PROVISIONS.
90
120 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
130
134 Section 1. Section 421.1, unnumbered paragraph 8, Code
136 1999, is amended to read as follows:
138 The state board shall hold at least six regular meetings
140 each year, the first of which shall be on the second secular
142 day of July meet as deemed necessary by the chairperson.
144 Special meetings of the state board may be called by the
146 chairperson on five days' notice given to each member. All
148 meetings shall be held at the office of the tax department
150 unless a different place within the state is designated by the
152 state board or in the notice of the meeting.
154 Sec. 2. Section 421.16, Code 1999, is amended to read as
156 follows:
158 421.16 EXPENSES.
160 The director, deputy directors, and department employees
162 are entitled to receive from the state their actual necessary
164 expenses while traveling on the business of the department.
166 The expenditures shall be sworn to by the party who incurred
168 the expense, and approved and allowed by the director.
170 However, such expenses shall not be allowed residents of Polk
172 county while in the city of Des Moines or traveling between
174 their homes and the city of Des Moines.
176 Sec. 3. Section 421.18, Code 1999, is amended to read as
178 follows:
180 421.18 DUTIES OF PUBLIC OFFICERS AND EMPLOYEES.
182 It shall be the duty of all public officers and employees
184 of the state and of all municipalities local governments to
186 give to the director of revenue and finance information in
188 their possession relating to taxation when required by the
190 director, and to co-operate with and aid the director's
192 efforts to secure a fair, equitable, and just enforcement of
194 the taxation and revenue laws.
196 Sec. 4. Section 422.5, subsections 3 and 11, Code 1999,
198 are amended by striking the subsections.
200 Sec. 5. Section 422.13, subsection 5, Code 1999, is
202 amended to read as follows:
204 5. Notwithstanding subsections 1 through 4 and sections
206 422.15 and 422.36, a partnership, a limited liability company
208 whose members are taxed on the company's income under
210 provisions of the Internal Revenue Code, trust, or corporation
212 whose stockholders are taxed on the corporation's income under
214 the provisions of the Internal Revenue Code is entitled to
216 request permission from the director may, not later than the
218 due date for filing its return for the taxable year, including
220 any extension thereof, elect to file a composite return for
222 the nonresident partners, members, beneficiaries, or
224 shareholders. The director may grant permission to file or
226 require that a composite return be filed under the conditions
228 deemed appropriate by the director. A partnership, limited
230 liability company, trust, or corporation filing a composite
232 return is liable for tax required to be shown due on the
234 return. All powers of the director and requirements of the
236 director apply to returns filed under this subsection
238 including, but not limited to, the provisions of this division
240 and division VI of this chapter.
242 Sec. 6. Section 422.16, subsection 2, unnumbered paragraph
244 2, Code 1999, is amended to read as follows:
246 Every withholding agent on or before the end of the second
248 month following the close of the calendar year in which the
250 withholding occurs shall make an annual reporting of taxes
252 withheld and other information prescribed by the director and
254 send to the department copies of wage and tax statements with
256 the return. At the discretion of the director, the
258 withholding agent shall not be required to send wage
260 statements and tax statements with the annual reporting return
262 form if the information is available from the internal revenue
264 service or other state or federal agencies.
266 Sec. 7. Section 422.23, unnumbered paragraph 2, Code 1999,
268 is amended by striking the unnumbered paragraph.
270 Sec. 8. Section 422.25, subsection 1, paragraph b, Code
272 1999, is amended to read as follows:
274 b. The period for examination and determination of the
276 correct amount of tax is unlimited in the case of a false or
278 fraudulent return made with the intent to evade tax or in the
280 case of a failure to file a return. In lieu of the period of
282 limitation for any prior year for which an overpayment of tax
284 or an elimination or reduction of an underpayment of tax due
286 for that prior year results from the carryback to that prior
288 year of a net operating loss or net capital loss, the period
290 is the period of limitation for the taxable year of the net
292 operating loss or net capital loss which results in the
294 carryback. If the tax found due is greater than the amount
296 paid, the department shall compute the amount due, together
298 with interest and penalties as provided in subsection 2, and
300 shall mail a notice of assessment to the taxpayer and, if
302 applicable, to the taxpayer's authorized representative of the
304 total, which shall be computed as a sum certain if paid on or
306 before the last day of the month in which the notice is
308 postmarked dated, or on or before the last day of the
310 following month if the notice is postmarked dated after the
312 twentieth day of any month. The notice shall also inform the
314 taxpayer of the additional interest and penalty which will be
316 added to the total due if not paid on or before the last day
318 of the applicable month.
320 Sec. 9. Section 422.25, subsection 3, Code 1999, is
322 amended to read as follows:
324 3. If the amount of the tax as determined by the
326 department is less than the amount paid, the excess shall be
328 refunded with interest, the interest to begin to accrue on the
330 first day of the second calendar month following the date of
332 payment or the date the return was due to be filed, or the
334 extended due date by which the return was due to be filed if
336 ninety percent of the tax was paid by the original due date,
338 or was filed, whichever is the latest, at the rate in effect
340 under section 421.7 counting each fraction of a month as an
342 entire month under the rules prescribed by the director. If
344 an overpayment of tax results from a net operating loss or net
346 capital loss which is carried back to a prior year, the
348 overpayment, for purposes of computing interest on refunds,
350 shall be considered as having been made on the date a claim
352 for refund or amended return carrying back the net operating
354 loss or net capital loss is filed with the department or on
356 the first day of the second calendar month following the date
358 of the actual payment of the tax, whichever is later.
360 However, when the net operating loss or net capital loss
362 carryback to a prior year eliminates or reduces an
364 underpayment of tax due for an earlier year, the full amount
366 of the underpayment of tax shall bear interest at the rate in
368 effect under section 421.7 for each month counting each
370 fraction of a month as an entire month from the due date of
372 the tax for the earlier year to the last day of the taxable
374 year in which the net operating loss or net capital loss
376 occurred.
378 Sec. 10. Section 422.33, subsection 1, unnumbered
380 paragraph 1, Code 1999, is amended to read as follows:
382 A tax is imposed annually upon each corporation organized
384 under the laws of this state, and upon each foreign
386 corporation doing business in this state, or deriving income
388 from sources within this state, in an amount computed by
390 applying the following rates of taxation to the net income
392 received by the corporation during the income year:
394 Sec. 11. Section 422.33, subsection 2, unnumbered
396 paragraph 1, Code 1999, is amended to read as follows:
398 If the trade or business of the corporation is carried on
400 entirely within the state, the tax shall be imposed on the
402 entire net income, but if the trade or business is carried on
404 partly within and partly without the state or if income is
406 derived from sources partly within and partly without the
408 state, or if income is derived from trade or business and
410 sources, all of which are not entirely in the state, the tax
412 shall be imposed only on the portion of the net income
414 reasonably attributable to the trade or business or sources
416 within the state, with the net income attributable to the
418 state to be determined as follows:
420 Sec. 12. Section 422.42, subsection 6, Code 1999, is
422 amended to read as follows:
424 6. "Gross taxable services" means the total amount
426 received in money, credits, property, or other consideration,
428 valued in money, from services rendered, furnished, or
430 performed in this state except where such service is performed
432 on tangible personal property delivered into interstate
434 commerce or is used in processing of tangible personal
436 property for use in taxable retail sales or services and
438 embraced within the provisions of this division. However, the
440 taxpayer may take credit in the taxpayer's report of gross
442 taxable services for an amount equal to the value of services
444 rendered, furnished, or performed when the full value of such
446 the services thereof is refunded either in cash or by credit.
448 Taxes paid on gross taxable services represented by accounts
450 found to be worthless and actually charged off for income tax
452 purposes may be credited upon a subsequent payment of the tax
454 due hereunder, but if any such accounts are thereafter
456 collected by the taxpayer, a tax shall be paid upon the
458 amounts so collected.
460 Sec. 13. Section 422.42, subsection 18, unnumbered
462 paragraph 1, Code 1999, is amended to read as follows:
464 "Services" means all acts or services rendered, furnished,
466 or performed, other than services performed on tangible
468 personal property delivered into interstate commerce, or
470 services used in processing of tangible personal property for
472 use in taxable retail sales or services, for an "employer" as
474 defined in section 422.4, subsection 3, for a valuable
476 consideration by any person engaged in any business or
478 occupation specifically enumerated in this division. The tax
480 shall be due and collectible when the service is rendered,
482 furnished, or performed for the ultimate user thereof of the
484 service.
486 Sec. 14. Section 422.44, unnumbered paragraph 2, Code
488 1999, is amended by striking the unnumbered paragraph.
490 Sec. 15. Section 422.45, subsection 2, Code 1999, is
492 amended to read as follows:
494 2. The gross receipts from the sales, furnishing, or
496 service of transportation service except the rental of
498 recreational vehicles or recreational boats, except the rental
500 of motor vehicles subject to registration which are registered
502 for a gross weight of thirteen tons or less for a period of
504 sixty days or less, and except the rental of aircraft for a
506 period of sixty days or less. This exemption does not apply
508 to the transportation of electric energy.
510 Sec. 16. Section 422.45, subsection 2, Code 1999, is
512 amended to read as follows:
514 2. The gross receipts from the sales, furnishing, or
516 service of transportation service except the rental of
518 recreational vehicles or recreational boats, except the rental
520 of motor vehicles subject to registration which are registered
522 for a gross weight of thirteen tons or less for a period of
524 sixty days or less, and except the rental of aircraft for a
526 period of sixty days or less. This exemption does not apply
528 to the transportation of natural gas.
530 Sec. 17. Section 422.45, subsection 7, paragraph b,
532 unnumbered paragraph 1, Code 1999, is amended to read as
534 follows:
536 Such governmental unit, educational institution, or
538 nonprofit private museum shall, not more than six months one
540 year after the final settlement has been made, make
542 application to the department for any refund of the amount of
544 such the sales or use tax which shall have been paid upon any
546 goods, wares or merchandise, or services rendered, furnished,
548 or performed, such the application to be made in the manner
550 and upon forms to be provided by the department, and the
552 department shall forthwith audit such the claim and, if
554 approved, issue a warrant to such the governmental unit,
556 educational institution, or nonprofit private museum in the
558 amount of such the sales or use tax which has been paid to the
560 state of Iowa under such the contract.
562 Sec. 18. Section 422.45, subsection 46, Code 1999, is
564 amended to read as follows:
566 46. The gross receipts from the sale of property or of
568 services performed on property which the seller retailer
570 transfers to a carrier for shipment to a point outside of
572 Iowa, places in the United States mail or parcel post directed
574 to a point outside of Iowa, or transports to a point outside
576 of Iowa by means of the seller's retailer's own vehicles, and
578 which is not thereafter returned to a point within Iowa,
580 except solely in the course of interstate commerce or
582 transportation. This exemption shall not apply if the
584 purchaser, consumer, or their agent, other than a carrier,
586 takes physical possession of the property in Iowa.
588 Sec. 19. Section 422.47, subsection 3, paragraphs a and b,
590 Code 1999, are amended to read as follows:
592 a. The department shall issue or the seller may separately
594 provide exemption certificates in the form prescribed by the
596 director to assist retailers in properly accounting for
598 nontaxable sales of tangible personal property or services to
600 purchasers for purposes of resale or for processing, except
602 fuel consumed in processing a nontaxable purpose. The
604 department shall also allow the use of exemption certificates
606 for those circumstances in which a sale is taxable but the
608 seller is not obligated to collect tax from the buyer.
610 b. The sales tax liability for all sales of tangible
612 personal property and all sales of services is upon the seller
614 and the purchaser unless the seller takes in good faith from
616 the purchaser a valid exemption certificate stating under
618 penalties for perjury that the purchase is for resale or for
620 processing a nontaxable purpose and is not a retail sale as
622 defined in section 422.42, subsection 14, or the seller is not
624 obligated to collect tax due, or unless the seller takes a
626 fuel exemption certificate pursuant to subsection 4. If the
628 tangible personal property or services are purchased tax free
630 pursuant to a valid exemption certificate which is taken in
632 good faith by the seller, and the tangible personal property
634 or services are used or disposed of by the purchaser in a
636 nonexempt manner, the purchaser is solely liable for the taxes
638 and shall remit the taxes directly to the department and
640 sections 422.50, 422.51, 422.52, 422.54, 422.55, 422.56,
642 422.57, 422.58, and 422.59 shall apply to the purchaser.
644 Sec. 20. Section 422.47, subsection 3, paragraph e, Code
646 1999, is amended to read as follows:
648 e. If the circumstances change and as a result the
650 tangible personal property or services are used or disposed of
652 by the purchaser in a nonexempt manner or the purchaser
654 becomes obligated to pay the tax, the purchaser is liable
656 solely for the taxes and shall remit the taxes directly to the
658 department in accordance with this subsection.
660 Sec. 21. Section 422.47, subsection 4, paragraph c, Code
662 1999, is amended to read as follows:
664 c. The purchaser may apply to the department for its
666 review of the fuel exemption certificate. In this event, the
668 department shall review the fuel exemption certificate within
670 twelve months from the date of application and determine the
672 correct amount of the exemption. If the amount determined by
674 the department is different than the amount that the purchaser
676 claims is exempt, the department shall promptly notify the
678 purchaser of the determination. Failure of the department to
680 make a determination within twelve months from the date of
682 application shall constitute a determination that the fuel
684 exemption certificate is correct as submitted. A
686 determination of exemption by the department is final unless
688 the purchaser appeals to the director for a revision of the
690 determination within thirty sixty days after the postmark date
692 of the notice of determination. The director shall grant a
694 hearing, and upon the hearing the director shall determine the
696 correct exemption and notify the purchaser of the decision by
698 mail. The decision of the director is final unless the
700 purchaser seeks judicial review of the director's decision
702 under section 422.55 within thirty sixty days after the
704 postmark date of the notice of the director's decision.
706 Unless there is a substantial change, the department shall not
708 impose penalties pursuant to section 422.58, both
710 retroactively to purchases made after the date of application
712 and prospectively until the department gives notice to the
714 purchaser that a tax or additional tax is due, for failure to
716 remit any tax due which is in excess of a determination made
718 under this section. A determination made by the department
720 pursuant to this subsection does not constitute an audit for
722 purposes of section 422.54.
724 Sec. 22. Section 422.50, Code 1999, is amended to read as
726 follows:
728 422.50 RECORDS REQUIRED.
730 It shall be the duty of every retailer required to make a
732 report return and pay any tax under this division, to preserve
734 those records of the gross proceeds of receipts from sales or
736 services as the director may require and it shall be the duty
738 of every retailer to preserve for a period of five years all
740 invoices and other records of goods, wares, merchandise, or
742 services purchased for resale; and all these books, invoices,
744 and other records shall be open to examination at any time by
746 the department, and shall be made available within this state
748 for examination upon reasonable notice when the director
750 orders.
752 Sec. 23. Section 422.52, subsection 3, unnumbered
754 paragraph 2, Code 1999, is amended by striking the unnumbered
756 paragraph.
758 Sec. 24. Section 422.68, subsection 4, Code 1999, is
760 amended to read as follows:
762 4. The department may make photostat, microfilm, or other
764 photographic copies of records, reports, and other papers
766 either filed by the taxpayer or prepared by the department.
768 In addition, the department may create and use any system of
770 recordkeeping reasonably calculated to preserve its records
772 for any time period required by law. When such photostat, or
774 microfilm, or other copies have been made, the department may
776 destroy such the original records which are the basis for the
778 copies in such any manner as prescribed by the director. Such
780 photostat or Photostat, microfilm, or other types of copies,
782 when no longer of use, may be destroyed as provided in
784 subsection 3. Such photostat Photostat, microfilm, or other
786 photographic records shall be admissible in evidence when duly
788 certified and authenticated by the officer having custody and
790 control thereof of them.
792 Sec. 25. Section 422.72, subsection 1, unnumbered
794 paragraph 1, Code 1999, is amended to read as follows:
796 It is unlawful for the director, or any person having an
798 administrative duty under this chapter, or any present or
800 former officer or other employee of the state authorized by
802 the director to examine returns, to divulge in any manner
804 whatever, the business affairs, operations, or information
806 obtained by an investigation under this chapter of records and
808 equipment of any person visited or examined in the discharge
810 of official duty, or the amount or source of income, profits,
812 losses, expenditures or any particular thereof, set forth or
814 disclosed in any return, or to permit any return or copy of a
816 return or any book containing any abstract or particulars
818 thereof to be seen or examined by any person except as
820 provided by law. It is unlawful for any person to willfully
822 inspect, except as authorized by the director, any return or
824 return information. However, the director may authorize
826 examination of such state returns and other state information
828 which is confidential under this section, if a reciprocal
830 arrangement exists, by tax officers of another state or the
832 federal government. The director may, by rules adopted
834 pursuant to chapter 17A, authorize examination of state
836 information and returns by other officers or employees of this
838 state to the extent required by their official duties and
840 responsibilities. Disclosure of state information to tax
842 officers of another state is limited to disclosures which have
844 a tax administrative purpose and only to officers of those
846 states which by agreement with this state limit the disclosure
848 of the information as strictly as the laws of this state
850 protecting the confidentiality of returns and information.
852 The director shall place upon the state tax form a notice to
854 the taxpayer that state tax information may be disclosed to
856 tax officials of another state or of the United States for tax
858 administrative purposes.
860 Sec. 26. Section 422.110, Code 1999, is amended to read as
862 follows:
864 422.110 INCOME TAX CREDIT IN LIEU OF REFUND.
866 In lieu of the fuel tax refund provided in sections section
868 452A.17 to 452A.19, a person or corporation subject to
870 taxation under divisions II or III of this chapter, except
872 persons or corporations licensed under section 452A.4, may
874 elect to receive an income tax credit for tax years beginning
876 on or after January 1, 1975. The person or corporation which
878 elects to receive an income tax credit shall cancel its refund
880 permit obtained under section 452A.18 within thirty days after
882 the first day of its tax year or the permit becomes invalid at
884 that time. For the purposes of this section, "person"
886 includes a person claiming a tax credit based upon the
888 person's pro rata share of the earnings from a partnership,
890 limited liability company, or corporation which is not subject
892 to a tax under division II or III of this chapter as a
894 partnership, limited liability company, or corporation. If
896 the election to receive an income tax credit has been made, it
898 remains effective for at least one tax year, and for
900 subsequent tax years unless a change is requested and a new
902 refund permit applied for within thirty days after the first
904 day of the person's or corporation's tax year. The income tax
906 credit shall be the amount of the Iowa fuel tax paid on fuel
908 purchased by the person or corporation and used as follows: is
910 subject to the conditions provided in section 452A.17 with the
912 exception that the income tax credit is not available for
914 refunds relating to casualty losses, transport diversions,
916 pumping credits, blending errors, idle time, power takeoffs,
918 reefer units, and exports by eligible purchasers.
920 1. Motor fuel as defined in section 452A.2, subsection 17,
922 used for the purpose of operating or propelling farm tractors,
924 corn shellers, roller mills, truck-mounted feed grinders,
926 stationary engines, for producing denatured alcohol within the
928 state, for cleaning or dyeing, or for any purpose other than
930 in watercraft or aircraft or in motor vehicles operated or
932 intended to be operated upon the public highways.
934 2. Special fuel, as defined in section 452A.2, used for
936 the purpose of operation of corn shellers, roller mills, and
938 feed grinders mounted on trucks.
940 3. Motor fuel placed in motor vehicles and used, other
942 than on public highways, in the extraction and processing of
944 natural deposits.
946 4. Motor fuel or special fuel used by a bona fide
948 commercial fisher, licensed and operating under an owner's
950 certificate for commercial fishing gear issued pursuant to
952 section 482.4.
954 However, no credit shall be given with respect to motor
956 fuel taken out of the state in fuel supply tanks of motor
958 vehicles, motor fuel used in aircraft or watercraft, or motor
960 fuel used in the performance of a contract which is paid out
962 of state funds unless the contract for the work contains a
964 certificate made under penalty for false certificate that the
966 estimate, bid or price to be paid for the work includes no
968 amount representing motor fuel tax subject to a credit. The
970 right to a credit under this section is not assignable and the
972 credit may be claimed only by the person or corporation that
974 purchased the fuel.
976 Sec. 27. Section 422.111, unnumbered paragraph 1, Code
978 1999, is amended to read as follows:
980 The fuel tax credit may be applied against the income tax
982 liability of the person or corporation as determined on the
984 tax return filed for the year in which the fuel tax was paid.
986 The department shall provide forms for claiming the fuel tax
988 credit. If the fuel tax credit would result in an overpayment
990 of income tax, the person or corporation may apply for a
992 refund of the amount of overpayment or may have the
994 overpayment credited to income tax due in subsequent years.
996 Each person or corporation that claims a fuel tax credit shall
998 maintain the original invoices showing the purchase of the
1000 fuel on which a credit is claimed. No An invoice is not
1002 acceptable in support of a claim for credit unless it the
1004 invoice is a separate serially numbered invoice covering no
1006 more than one purchase of motor fuel or undyed special fuel,
1008 prepared by the seller on a form approved by the department,
1010 nor unless it or unless the invoice is legibly written with no
1012 corrections or erasures and shows the date of sale, the name
1014 and address of the seller and of the purchaser, the kind of
1016 fuel, the gallonage in figures, the per gallon price of the
1018 fuel, the total purchase price including the Iowa fuel tax,
1020 and that the total purchase price has been paid. However, as
1022 to refund invoices made on a billing machine the department
1024 may waive these requirements. If an original invoice is lost
1026 or destroyed, the department may approve a credit supported by
1028 a copy identified and certified by the seller as being a true
1030 copy of the original. Each person or corporation that claims
1032 a fuel tax credit shall maintain complete records of purchases
1034 of motor fuel or undyed special fuel on which Iowa fuel tax
1036 was paid, and for which a fuel tax credit is claimed.
1038 Sec. 28. Section 422.111, unnumbered paragraph 3, Code
1040 1999, is amended by striking the unnumbered paragraph.
1042 Sec. 29. Section 422.121, Code 1999, is amended to read as
1044 follows:
1046 422.121 APPROPRIATION – LIMITATION.
1048 Beginning with the fiscal year beginning July 1, 1997,
1050 there is appropriated annually from the general fund of the
1052 state two million dollars to refund the credits allowed under
1054 this division. Notwithstanding section 422.120, for tax years
1056 beginning on or after January 1, 1997, the livestock
1058 production tax credit shall only be allowed for cow-calf
1060 operations. In calculating the tax credit for cow-calf
1062 operations for tax years beginning in the 1997 calendar year,
1064 mature beef cows bred or for breeding, bred yearling heifers,
1066 and breeding bulls in the operations' inventory on December 31
1068 of the tax year which were also in the operations on July 1 of
1070 the tax year and stockers and feeders sold during the tax year
1072 may be counted. In calculating the tax credit for cow-calf
1074 operations for tax years beginning on or after January 1,
1076 1998, only those bred cows, bred heifers, and breeding bulls
1078 in the operations' inventory on December 31 of the tax year
1080 which were also in the operations on July 1 of the tax year
1082 may be counted.
1084 Sec. 30. Section 422B.8, unnumbered paragraph 1, Code
1086 1999, is amended to read as follows:
1088 A local sales and services tax at the rate of not more than
1090 one percent may be imposed by a county on the gross receipts
1092 taxed by the state under chapter 422, division IV. A local
1094 sales and services tax shall be imposed on the same basis as
1096 the state sales and services tax and may shall not be imposed
1098 on the sale of any property or on any service not taxed by the
1100 state, except the tax shall not be imposed on the gross
1102 receipts from the sale of motor fuel or special fuel as
1104 defined in chapter 452A, on the gross receipts from the rental
1106 of rooms, apartments, or sleeping quarters which are taxed
1108 under chapter 422A during the period the hotel and motel tax
1110 is imposed, on the gross receipts from the sale of natural gas
1112 or electric energy in a city or county where the gross
1114 receipts are subject to a franchise fee or user fee during the
1116 period the franchise or user fee is imposed, on the gross
1118 receipts from the sale of equipment by the state department of
1120 transportation, on the gross receipts from the sale of self-
1122 propelled building equipment, pile drivers, motorized
1124 scaffolding, or attachments customarily drawn or attached to
1126 self-propelled building equipment, pile drivers, and motorized
1128 scaffolding, including auxiliary attachments which improve the
1130 performance, safety, operation, or efficiency of the equipment
1132 and replacement parts and are directly and primarily used by
1134 contractors, subcontractors, and builders for new
1136 construction, reconstruction, alterations, expansion, or
1138 remodeling of real property or structures, and on the gross
1140 receipts from the sale of a lottery ticket or share in a
1142 lottery game conducted pursuant to chapter 99E. A local sales
1144 and services tax is applicable to transactions within those
1146 incorporated and unincorporated areas of the county where it
1148 is imposed and shall be collected by all persons required to
1150 collect state gross receipts taxes. All cities contiguous to
1152 each other shall be treated as part of one incorporated area
1154 and the tax would be imposed in each of those contiguous
1156 cities only if the majority of those voting in the total area
1158 covered by the contiguous cities favor its imposition.
1160 Sec. 31. Section 422B.8, unnumbered paragraphs 1 and 3,
1162 Code 1999, are amended to read as follows:
1164 A local sales and services tax at the rate of not more than
1166 one percent may be imposed by a county on the gross receipts
1168 taxed by the state under chapter 422, division IV. A local
1170 sales and services tax shall be imposed on the same basis as
1172 the state sales and services tax or in the case of the use of
1174 natural gas, natural gas service, electricity, or electric
1176 service on the same basis as the state use tax and may not be
1178 imposed on the sale of any property or on any service not
1180 taxed by the state, except the tax shall not be imposed on the
1182 gross receipts from the sale of motor fuel or special fuel as
1184 defined in chapter 452A, on the gross receipts from the rental
1186 of rooms, apartments, or sleeping quarters which are taxed
1188 under chapter 422A during the period the hotel and motel tax
1190 is imposed, on the gross receipts from the sale of natural gas
1192 or electric energy in a city or county where the gross
1194 receipts are subject to a franchise fee or user fee during the
1196 period the franchise or user fee is imposed, on the gross
1198 receipts from the sale of equipment by the state department of
1200 transportation, and on the gross receipts from the sale of a
1202 lottery ticket or share in a lottery game conducted pursuant
1204 to chapter 99E and except the tax shall not be imposed on the
1206 gross receipts from the sale or use of natural gas, natural
1208 gas service, electricity, or electric service in a city or
1210 county where the gross receipts from the sale of natural gas
1212 or electric energy are subject to a franchise fee or user fee
1214 during the period the franchise or user fee is imposed. A
1216 local sales and services tax is applicable to transactions
1218 within those incorporated and unincorporated areas of the
1220 county where it is imposed and shall be collected by all
1222 persons required to collect state gross receipts taxes. All
1224 cities contiguous to each other shall be treated as part of
1226 one incorporated area and the tax would be imposed in each of
1228 those contiguous cities only if the majority of those voting
1230 in the total area covered by the contiguous cities favor its
1232 imposition.
1234 A tax permit other than the state tax permit required under
1236 section 422.53 or 423.10 shall not be required by local
1238 authorities.
1240 Sec. 32. Section 422B.8, Code 1999, is amended by adding
1242 the following new unnumbered paragraph:
1244 NEW UNNUMBERED PARAGRAPH. If a local sales and services
1246 tax is imposed by a county pursuant to this chapter, a local
1248 excise tax at the same rate shall be imposed by the county on
1250 the purchase price of natural gas, natural gas service,
1252 electricity, or electric service subject to tax under chapter
1254 423 and not exempted from tax by any provision of chapter 423.
1256 The local excise tax is applicable only to the use of natural
1258 gas, natural gas service, electricity, or electric service
1260 within those incorporated and unincorporated areas of the
1262 county where it is imposed and, except as otherwise provided
1264 in this chapter, shall be collected and administered in the
1266 same manner as the local sales and services tax. For purposes
1268 of this chapter, "local sales and services tax" shall also
1270 include the local excise tax.
1272 Sec. 33. Section 422B.9, subsection 2, paragraph b, Code
1274 1999, is amended to read as follows:
1276 b. The ordinance of a county board of supervisors imposing
1278 a local sales and services tax shall adopt by reference the
1280 applicable provisions of the appropriate sections of chapter
1282 422, division IV and chapter 423. All powers and requirements
1284 of the director to administer the state gross receipts tax law
1286 and use tax law are applicable to the administration of a
1288 local sales and services tax law and the local excise tax,
1290 including but not limited to, the provisions of section
1292 422.25, subsection 4, sections 422.30, 422.48 to 422.52,
1294 422.54 to 422.58, 422.67, 422.68, 422.69, subsection 1, and
1296 sections 422.70 to 422.75, 423.6, subsections 2 to 4, and
1298 sections 423.11 to 423.18, and 423.21. Local officials shall
1300 confer with the director of revenue and finance for assistance
1302 in drafting the ordinance imposing a local sales and services
1304 tax. A certified copy of the ordinance shall be filed with
1306 the director as soon as possible after passage.
1308 Sec. 34. Section 422B.10, subsection 2, paragraph c, Code
1310 1999, is amended to read as follows:
1312 c. The director of revenue and finance shall remit a final
1314 payment of the remainder of tax moneys due the city or county
1316 for the fiscal year before November 10 of the next fiscal
1318 year. If an overpayment has resulted during the previous
1320 fiscal year, the first November payment of the new fiscal year
1322 shall be adjusted to reflect any overpayment.
1324 Sec. 35. Section 422D.3, unnumbered paragraph 4, Code
1326 1999, is amended to read as follows:
1328 The director, in consultation with local officials, shall
1330 collect and account for a local income surtax and any interest
1332 and penalties. The director shall credit local income surtax
1334 receipts and any interest and penalties collected from returns
1336 filed on or before November 1 of the calendar year following
1338 the tax year for which the local income surtax is imposed to a
1340 "local income surtax fund" established in the office of the
1342 treasurer of state department of revenue and finance. All
1344 local income surtax receipts and any interest and penalties
1346 received or refunded from returns filed after November 1 of
1348 the calendar year following the tax year for which the local
1350 income surtax is imposed shall be deposited in or withdrawn
1352 from the state general fund and shall be considered part of
1354 the cost of administering the local income surtax.
1356 Sec. 36. Section 422E.1, subsection 1, Code 1999, is
1358 amended by adding the following new unnumbered paragraph:
1360 NEW UNNUMBERED PARAGRAPH. If a local sales and services
1362 tax for school infrastructure is imposed by a county pursuant
1364 to this chapter, a local excise tax for school infrastructure
1366 at the same rate shall be imposed by the county on the
1368 purchase price of natural gas, natural gas service,
1370 electricity, or electric service subject to tax under chapter
1372 423 and not exempted from tax by any provision of chapter 423.
1374 The local excise tax for school infrastructure is applicable
1376 only to the use of natural gas, natural gas service,
1378 electricity, or electric service within those incorporated and
1380 unincorporated areas of the county where it is imposed and,
1382 except as otherwise provided in this chapter, shall be
1384 collected and administered in the same manner as the local
1386 sales and services tax for school infrastructure. For
1388 purposes of this chapter, "local sales and services tax for
1390 school infrastructure" shall also include the local excise tax
1392 for school infrastructure.
1394 Sec. 37. Section 422E.3, subsection 2, Code 1999, is
1396 amended to read as follows:
1398 2. The tax shall be imposed on the same basis as the state
1400 sales and services tax or in the case of the use of natural
1402 gas, natural gas service, electricity, or electric service on
1404 the same basis as the state use tax and shall not be imposed
1406 on the sale of any property or on any service not taxed by the
1408 state, except the tax shall not be imposed on the gross
1410 receipts from the sale of motor fuel or special fuel as
1412 defined in chapter 452A, on the gross receipts from the rental
1414 of rooms, apartments, or sleeping quarters which are taxed
1416 under chapter 422A during the period the hotel and motel tax
1418 is imposed, on the gross receipts from the sale of equipment
1420 by the state department of transportation, and on the gross
1422 receipts from the sale of a lottery ticket or share in a
1424 lottery game conducted pursuant to chapter 99E and except the
1426 tax shall not be imposed on the gross receipts from the sale
1428 or use of natural gas, natural gas service, electricity, or
1430 electric service in a city or county where the gross receipts
1432 from the sale of natural gas or electric energy are subject to
1434 a franchise fee or user fee during the period the franchise or
1436 user fee is imposed.
1438 Sec. 38. Section 422E.3, subsection 2, Code 1999, is
1440 amended to read as follows:
1442 2. The tax shall be imposed on the same basis as the state
1444 sales and services tax and shall not be imposed on the sale of
1446 any property or on any service not taxed by the state, except
1448 the tax shall not be imposed on the gross receipts from the
1450 sale of motor fuel or special fuel as defined in chapter 452A,
1452 on the gross receipts from the rental of rooms, apartments, or
1454 sleeping quarters which are taxed under chapter 422A during
1456 the period the hotel and motel tax is imposed, on the gross
1458 receipts from the sale of equipment by the state department of
1460 transportation, on the gross receipts from the sale of self-
1462 propelled building equipment, pile drivers, motorized
1464 scaffolding, or attachments customarily drawn or attached to
1466 self-propelled building equipment, pile drivers, and motorized
1468 scaffolding, including auxiliary attachments which improve the
1470 performance, safety, operation, or efficiency of the
1472 equipment, and replacement parts and are directly and
1474 primarily used by contractors, subcontractors, and builders
1476 for new construction, reconstruction, alterations, expansion,
1478 or remodeling of real property or structures, and on the gross
1480 receipts from the sale of a lottery ticket or share in a
1482 lottery game conducted pursuant to chapter 99E.
1484 Sec. 39. Section 422E.3, subsection 3, Code 1999, is
1486 amended to read as follows:
1488 3. The tax is applicable to transactions within the county
1490 where it is imposed and shall be collected by all persons
1492 required to collect state gross receipts or local excise
1494 taxes. The amount of the sale, for purposes of determining
1496 the amount of the tax, does not include the amount of any
1498 state gross receipts or excise taxes or other local option
1500 sales or excise taxes. A tax permit other than the state tax
1502 permit required under section 422.53 or 423.10 shall not be
1504 required by local authorities.
1506 Sec. 40. Section 424.10, subsections 2 and 3, Code 1999,
1508 are amended to read as follows:
1510 2. If a return required by this chapter is not filed, or
1512 if a return when filed is incorrect or insufficient and the
1514 maker fails to file a corrected or sufficient return within
1516 twenty days after the return is required by notice from the
1518 department, the department shall determine the amount of
1520 charge due from information as the department may be able to
1522 obtain and, if necessary, may estimate the charge on the basis
1524 of external indices or factors. The department shall give
1526 notice of the determination to the person liable for the
1528 charge. The determination shall fix the charge unless the
1530 person against whom it is assessed shall, within sixty days
1532 after the giving of date of the notice of the determination,
1534 apply to the director for a hearing or unless the taxpayer
1536 contests the determination by paying the tax, interest, and
1538 penalty and timely filing a claim for refund. At the hearing
1540 evidence may be offered to support the determination or to
1542 prove that it is incorrect. After the hearing the director
1544 shall give notice of the decision to the person liable for the
1546 charge.
1548 If a depositor's, receiver's, or other person's challenge
1550 relates to the diminution rate, the burden of proof upon the
1552 challenger shall only be satisfied by clear and convincing
1554 evidence.
1556 3. If the amount paid is greater than the correct charge,
1558 penalty, and interest due, the department shall refund the
1560 excess, with interest after sixty days from the date of
1562 payment at the rate in effect under section 421.7, pursuant to
1564 rules prescribed by the director. However, the director shall
1566 not allow a claim for refund that has not been filed with the
1568 department within five years after the charge payment upon
1570 which a refund is claimed became due, or one year after the
1572 charge payment was made, whichever time is later. A
1574 determination by the department of the amount of charge,
1576 penalty, and interest due, or the amount of refund for any
1578 excess amount paid, is final unless the person aggrieved by
1580 the determination appeals to the director for a revision of
1582 the determination within thirty sixty days from the postmark
1584 date of the notice of determination of charge, penalty, and
1586 interest due or refund owing. The director shall grant a
1588 hearing, and upon hearing the director shall determine the
1590 correct charge, penalty, and interest due or refund owing, and
1592 notify the appellant of the decision by mail. The decision of
1594 the director is final unless the appellant seeks judicial
1596 review of the director's decision under section 424.13.
1598 Sec. 41. Section 427.1, subsection 14, unnumbered
1600 paragraph 1, Code 1999, is amended to read as follows:
1602 A society or organization claiming an exemption under
1604 subsection 5 or subsection 8 of this section shall file with
1606 the assessor not later than July 1 April 15 a statement upon
1608 forms to be prescribed by the director of revenue and finance,
1610 describing the nature of the property upon which the exemption
1612 is claimed and setting out in detail any uses and income from
1614 the property derived from the rentals, leases, or other uses
1616 of the property not solely for the appropriate objects of the
1618 society or organization. Upon the filing and allowance of the
1620 claim, the claim shall be allowed on the property for
1622 successive years without further filing as long as the
1624 property is used for the purposes specified in the original
1626 claim for exemption. When the property is sold or
1628 transferred, the county recorder shall provide notice of the
1630 transfer to the assessor. The notice shall describe the
1632 property transferred and the name of the person to whom title
1634 to the property is transferred.
1636 Sec. 42. Section 427.1, subsection 24, Code 1999, is
1638 amended to read as follows:
1640 24. LAND CERTIFIED AS A WILDLIFE HABITAT. The owner of
1642 agricultural land may designate not more than two acres of the
1644 land for use as a wildlife habitat. After inspection, if the
1646 land meets the standards established by the natural resource
1648 commission for a wildlife habitat under section 483A.3, the
1650 department of natural resources shall certify the designated
1652 land as a wildlife habitat and shall send a copy of the
1654 certification to the appropriate assessor not later than
1656 February 1 of the assessment year for which the exemption is
1658 requested. The department of natural resources may
1660 subsequently withdraw certification of the designated land if
1662 it fails to meet the established standards for a wildlife
1664 habitat and the assessor shall be given written notice of the
1666 decertification.
1668 Sec. 43. Section 428.1, unnumbered paragraph 1, Code 1999,
1670 is amended to read as follows:
1672 Every person shall list for the assessor all property
1674 subject to taxation in the state, of which the person is the
1676 owner, or has the control or management, in the following
1678 manner including but not limited to the following:
1680 Sec. 44. Section 429.2, subsection 1, Code 1999, is
1682 amended to read as follows:
1684 1. Notwithstanding the provisions of chapter 17A, the
1686 taxpayer shall have thirty days from the date of postmark of
1688 the notice of assessment to appeal the assessment to the state
1690 board of tax review. Thereafter, the proceedings before the
1692 state board of tax review shall conform to the provisions of
1694 subsection 2, section 421.1, subsection 4, and chapter 17A.
1696 Sec. 45. Section 450.7, subsection 1, unnumbered paragraph
1698 2, Code 1999, is amended to read as follows:
1700 Inheritance taxes owing with respect to a passing of
1702 property of a deceased person are no longer a lien against the
1704 property ten years from the date of death of the decedent
1706 owner regardless of whether the decedent owner died prior to
1708 or subsequent to July 1, 1995, except to the extent taxes are
1710 attributable to remainder or deferred interests and are
1712 deferred in accordance with the provisions of this chapter.
1714 Sec. 46. Section 450.22, Code 1999, is amended to read as
1716 follows:
1718 450.22 ADMINISTRATION AVOIDED – INHERITANCE TAX DUTIES
1720 REQUIRED.
1722 When the heirs or persons entitled to inherit the property
1724 of an estate subject to tax under this chapter desire to avoid
1726 the appointment of a personal representative as provided in
1728 section 450.21, and in all instances where real estate is
1730 involved and there are no regular probate proceedings, they or
1732 one of them shall file under oath the inventories required by
1734 section 633.361 and the required reports, perform all the
1736 duties required by this chapter of the personal
1738 representative, and file the inheritance tax return. However,
1740 this section does not apply and a return is not required even
1742 though real estate is part of the assets subject to tax under
1744 this chapter, if all of the assets are held in joint tenancy
1746 with right of survivorship between husband and wife alone, or
1748 if the estate exclusively consists of property held in joint
1750 tenancy with the right of survivorship solely by the decedent
1752 and any individuals listed in section 450.9 as individuals
1754 that are entirely exempt from Iowa inheritance tax and the
1756 estate does not have a federal estate tax obligation. When
1758 this section applies, proceedings for the collection of the
1760 tax when a personal representative is not appointed, shall
1762 conform as nearly as possible to proceedings under this
1764 chapter in other cases.
1766 Sec. 47. Section 450.37, Code 1999, is amended by adding
1768 the following new subsection:
1770 NEW SUBSECTION. 3. In addition to the applicable period
1772 of limitation for examination and determination, the
1774 department shall make an examination to adjust the value of
1776 real property for Iowa inheritance tax purposes to the value
1778 accepted by the internal revenue service for federal estate
1780 tax purposes. The department shall make an examination and
1782 adjustment for the value of the real property at any time
1784 within six months from the date of receipt by the department
1786 of written notice from the personal representative for the
1788 estate that all federal estate tax matters between the estate
1790 and the internal revenue service have been concluded. To
1792 begin the running of the six-month period, the notice shall be
1794 in writing in a form sufficient to inform the department of
1796 the final disposition of the federal estate tax obligation
1798 with the internal revenue service and a copy of the federal
1800 document showing the final disposition and final federal
1802 adjustments of all real property values must be attached. The
1804 department shall make an adjustment to the value of real
1806 property for inheritance tax purposes to the value accepted
1808 for federal estate tax purposes regardless of whether an
1810 inheritance clearance has been issued, an appraisal has been
1812 obtained on the real property indicating a contrary value,
1814 whether there has been an acceptance of another value for real
1816 property by the department, or whether an agreement has been
1818 entered into by the department and the personal representative
1820 for the estate and persons having an interest in the real
1822 property regarding the value of the real property.
1824 Notwithstanding the period of limitation specified in section
1826 450.94, subsection 3, the personal representative for the
1828 estate shall have six months from the day of final disposition
1830 of any real property valuation matter between the personal
1832 representative for the estate and the internal revenue service
1834 to claim a refund of an overpayment of tax due to the change
1836 in the valuation of real property by the internal revenue
1838 service.
1840 Sec. 48. Section 450.94, subsections 2 and 3, Code 1999,
1842 are amended to read as follows:
1844 2. The taxpayer shall file an inheritance tax return on
1846 forms to be prescribed by the director of revenue and finance
1848 on or before the last day of the ninth month after the death
1850 of the decedent. When an inheritance tax return is filed, the
1852 department shall examine it and determine the correct amount
1854 of tax. If the amount paid is less than the correct amount
1856 due, the department shall notify the taxpayer of the total
1858 amount due together with any penalty and interest which shall
1860 be a sum certain if paid on or before the last day of the
1862 month in which the notice is postmarked dated, or on or before
1864 the last day of the following month if the notice is
1866 postmarked dated after the twentieth day of a month and before
1868 the first day of the following month.
1870 3. If the amount paid is greater than the correct tax,
1872 penalty, and interest due, the department shall refund the
1874 excess with interest. Interest shall be computed at the rate
1876 in effect under section 421.7, under the rules prescribed by
1878 the director counting each fraction of a month as an entire
1880 month and the interest shall begin to accrue on the first day
1882 of the second calendar month following the date of payment or
1884 on the date the return was due to be filed or was filed,
1886 whichever is the latest. However, the director shall not
1888 allow a claim for refund or credit that has not been filed
1890 with the department within three years after the tax payment
1892 upon which a refund or credit is claimed became due, or one
1894 year after the tax payment was made, whichever time is later.
1896 A determination by the department of the amount of tax,
1898 penalty, and interest due, or the amount of refund for excess
1900 tax paid, is final unless the person aggrieved by the
1902 determination appeals to the director for a revision of the
1904 determination within sixty days from the postmark date of the
1906 notice of determination of tax, penalty, and interest due or
1908 refund owing or unless the taxpayer contests the determination
1910 by paying the tax, interest, and penalty and timely filing a
1912 claim for refund. The director shall grant a hearing, and
1914 upon the hearing the director shall determine the correct tax,
1916 penalty, and interest or refund due, and notify the appellant
1918 of the decision by mail. The decision of the director is
1920 final unless the appellant seeks judicial review of the
1922 director's decision under section 450.59 within sixty days
1924 after the postmark date of the notice of the director's
1926 decision.
1928 Sec. 49. Section 451.12, Code 1999, is amended to read as
1930 follows:
1932 451.12 APPLICABLE STATUTES – PENALTIES.
1934 All the provisions of chapter 450 with respect to the lien
1936 provisions of section 450.7, and the determination,
1938 imposition, payment, and collection of the tax imposed under
1940 that chapter, including penalty and interest upon delinquent
1942 taxes and the confidentiality of the tax return, are
1944 applicable to this chapter, except as they are in conflict
1946 with this chapter. The exceptions to the lien provisions
1948 found in section 450.7 do not apply to this chapter. The
1950 penalty provisions set out in section 450.53 shall apply to a
1952 person in possession of assets to be reported for purposes of
1954 taxation who willfully makes a false or fraudulent return or
1956 willfully fails to pay the tax, supply the information, make,
1958 sign, or file the required return within the time required by
1960 law or a person who willfully attempts in any manner to evade
1962 taxes imposed by this chapter or avoid payment of the tax.
1964 The director of revenue and finance shall adopt rules
1966 necessary for the enforcement of this chapter.
1968 Sec. 50. Section 452A.2, subsection 11, Code 1999, is
1970 amended to read as follows:
1972 11. "Exporter" means a person or other entity who acquires
1974 fuel in this state exclusively for export to another state.
1976 Sec. 51. Section 452A.2, subsection 17, paragraph a, Code
1978 1999, is amended to read as follows:
1980 a. All products commonly or commercially known or sold as
1982 gasoline, (including casinghead and absorption or natural
1984 gasoline), regardless of their classifications or uses, and
1986 including transmix which serves as a buffer between fuel
1988 products in the pipeline distribution process.
1990 Sec. 52. Section 452A.3, subsection 5, paragraph b, Code
1992 1999, is amended to read as follows:
1994 b. The person who owns or causes the fuel to be at the
1996 time it is brought into the state by a restrictive supplier or
1998 importer, upon the invoiced gross gallonage of motor fuel or
2000 undyed special fuel imported.
2002 Sec. 53. Section 452A.8, subsection 1, unnumbered
2004 paragraph 1, Code 1999, is amended to read as follows:
2006 For the purpose of determining the amount of the
2008 supplier's, restrictive supplier's, or importer's tax
2010 liability, a supplier or restrictive supplier shall file a
2012 return, not later than the last day of the month following the
2014 month in which this division becomes effective and not later
2016 than the last day of each calendar month thereafter, and an
2018 importer shall file a report return semi-monthly with the
2020 department, signed under penalty for false certification. For
2022 an importer for the reporting period from the first day of the
2024 month through the fifteenth of the month, the report return is
2026 due on the last day of the month. For an importer for the
2028 reporting period from the sixteenth of the month through the
2030 last day of the month, the report return is due on the
2032 fifteenth day of the following month. The reports returns
2034 shall include the following:
2036 Sec. 54. Section 452A.8, subsection 2, unnumbered
2038 paragraph 1, Code 1999, is amended to read as follows:
2040 At the time of filing a report return, a supplier or
2042 restrictive supplier shall pay to the department the full
2044 amount of the fuel tax due for the preceding calendar month.
2046 An importer shall pay to the department the full amount of
2048 fuel tax due for the preceding semimonthly period. The tax
2050 shall be computed as follows:
2052 Sec. 55. Section 452A.8, subsection 2, paragraph d, Code
2054 1999, is amended to read as follows:
2056 d. The director may require by rule that reports and
2058 returns be filed by electronic transmission.
2060 Sec. 56. Section 452A.8, subsection 3, Code 1999, is
2062 amended to read as follows:
2064 3. For the purpose of determining the amount of the tax
2066 liability on alcohol blended to produce ethanol blended
2068 gasoline, each licensed blender shall, not later than the last
2070 day of each month following the month in which the blending is
2072 done, file with the department a monthly report return, signed
2074 under penalty for false certificate, containing information
2076 required by rules adopted by the director.
2078 Sec. 57. Section 452A.9, Code 1999, is amended to read as
2080 follows:
2082 452A.9 REPORT RETURNS FROM PERSONS NOT LICENSED AS
2084 SUPPLIERS, RESTRICTIVE SUPPLIERS, OR IMPORTERS.
2086 Every person other than a licensed supplier, restrictive
2088 supplier, or importer, who purchases, brings into this state,
2090 or otherwise acquires within this state motor fuel or undyed
2092 special fuel, not otherwise exempted, which the person has
2094 knowingly not paid or incurred liability to pay either to a
2096 licensee or to a dealer the motor fuel or special fuel tax,
2098 shall be subject to the provisions of this division that apply
2100 to suppliers, restrictive suppliers, and importers of motor
2102 fuel or undyed special fuel and shall make file the same
2104 reports returns and make the same tax payments and be subject
2106 to the same penalties for delinquent reporting or nonreporting
2108 filing or nonfiling or delinquent payment or nonpayment as
2110 apply to suppliers, restrictive suppliers, and importers.
2112 Sec. 58. Section 452A.15, subsection 3, Code 1999, is
2114 amended to read as follows:
2116 3. The reports required in this section shall be for
2118 information purposes only and the department may in its
2120 discretion waive the filing of any of these reports not
2122 necessary for proper administration of this division. The
2124 reports required in this section shall be certified under
2126 penalty for false certificate and filed with the department
2128 within the time allowed for filing of suppliers' and
2130 restrictive suppliers' reports returns of motor fuel or
2132 special fuel withdrawn from a terminal within this state or
2134 imported into this state.
2136 Sec. 59. Section 452A.17, subsection 1, paragraph a,
2138 subparagraphs (4) and (6), Code 1999, are amended to read as
2140 follows:
2142 (4) Fuel used in unlicensed vehicles, stationary engines,
2144 and implements used in agricultural production, and machinery
2146 and equipment used for nonhighway purposes.
2148 (6) Fuel used for idle time, power takeoffs, reefer units,
2150 pumping credits, and transport diversions, fuel lost through
2152 casualty, exports by eligible purchasers distributors, and
2154 blending errors for special fuel. The department shall adopt
2156 rules setting forth specific requirements relating to refunds
2158 for idle time, power takeoffs, reefer units, pumping credits,
2160 and transport diversions, fuel lost through casualty, and
2162 blending errors for special fuel.
2164 Sec. 60. Section 452A.17, subsection 1, paragraph b,
2166 subparagraphs (4) and (5), Code 1999, are amended to read as
2168 follows:
2170 (4) The claim shall state the gallonage of motor fuel or
2172 undyed special fuel that was used or will be used by the
2174 claimant other than in aircraft, watercraft, or to propel
2176 motor vehicles and the gallonage of undyed special fuel that
2178 was or will be used by the claimant other than in aircraft or
2180 to propel motor vehicles, the manner in which the motor fuel
2182 or undyed special fuel was used or will be used, and the
2184 equipment in which it was used or will be used.
2186 (5) The claim shall state whether the claimant used fuel
2188 for aircraft, watercraft, or to propel motor vehicles from the
2190 same tanks or receptacles in which the claimant kept the motor
2192 fuel or undyed special fuel on which the refund is claimed or
2194 whether the claimant used fuel for aircraft or to propel motor
2196 vehicles from the same tanks or receptacles in which the
2198 claimant kept the undyed special fuel on which the refund is
2200 claimed.
2202 Sec. 61. Section 452A.17, subsection 2, Code 1999, is
2204 amended to read as follows:
2206 2. In lieu of the refund provided in this section, a
2208 person may receive an income tax credit as provided in chapter
2210 422, division IX, but only as to motor fuel or undyed special
2212 fuel not used in motor vehicles, aircraft, or watercraft or as
2214 to undyed special fuel not used in motor vehicles or aircraft.
2216 Sec. 62. Section 452A.17, subsection 3, paragraph b, Code
2218 1999, is amended to read as follows:
2220 b. A refund shall not be paid with respect to any motor
2222 fuel or undyed special fuel taken out of this state in supply
2224 tanks of watercraft, aircraft, or motor vehicles or with
2226 respect to any undyed special fuel taken out of this state in
2228 supply tanks of aircraft or motor vehicles.
2230 Sec. 63. Section 452A.17, subsection 3, paragraph c, Code
2232 1999, is amended by striking the paragraph.
2234 Sec. 64. Section 452A.21, unnumbered paragraph 1, Code
2236 1999, is amended to read as follows:
2238 Persons not licensed under this division who blend motor
2240 fuel and alcohol to produce ethanol blended gasoline may file
2242 for a refund for the difference between taxes paid on the
2244 motor fuel purchased to produce ethanol blended gasoline and
2246 the tax due on the ethanol blended gasoline blended. If,
2248 during any month, a person licensed under this division uses
2250 tax paid motor fuel to blend ethanol blended gasoline and the
2252 refund otherwise due under this section is greater than the
2254 licensee's total tax liability for that month, the licensee is
2256 entitled to a credit. The claim for credit shall be filed as
2258 part of the report return required by section 452A.8.
2260 Sec. 65. Section 452A.21, unnumbered paragraph 3, Code
2262 1999, is amended to read as follows:
2264 A refund shall not be issued unless the claim is filed
2266 within ninety days one year following the end of the month
2268 during which the ethanol blended gasoline was actually
2270 blended. An income tax credit is not allowed under this
2272 section.
2274 Sec. 66. NEW SECTION. 452A.22 TAX COLLECTED ON EXEMPT
2276 FUEL.
2278 If an amount of tax represented by a licensee to a
2280 purchaser as constituting tax due is computed upon gallonage
2282 that is not taxable or the amount represented is in excess of
2284 the actual amount of tax due and the amount represented is
2286 actually paid by the purchaser to the licensee, the excess
2288 amount of tax paid shall be returned to the purchaser by the
2290 licensee. If the licensee fails to return the excess tax paid
2292 to the purchaser, the amount which the purchaser has paid to
2294 the licensee shall be remitted by the licensee to the
2296 department.
2298 Sec. 67. Section 452A.60, unnumbered paragraph 1, Code
2300 1999, is amended to read as follows:
2302 The department of revenue and finance or the state
2304 department of transportation shall prescribe and furnish all
2306 forms, as applicable, upon which reports, returns, and
2308 applications shall be made and claims for refund presented
2310 under this chapter and may prescribe forms of record to be
2312 kept by suppliers, restrictive suppliers, importers,
2314 exporters, blenders, common carriers, contract carriers,
2316 licensed compressed natural gas and liquefied petroleum gas
2318 dealers and users, terminal operators, and interstate
2320 commercial motor vehicle operators.
2322 Sec. 68. Section 452A.61, Code 1999, is amended to read as
2324 follows:
2326 452A.61 TIMELY FILING OF REPORTS AND RETURNS – EXTENSION.
2328 The reports, returns, and remittances required under this
2330 chapter shall be deemed filed within the required time if
2332 postpaid, properly addressed and postmarked on or before
2334 midnight of the day on which due and payable. If the final
2336 filing date falls on a Saturday, Sunday or legal holiday the
2338 next secular or business day shall be the final filing date.
2340 The department of revenue and finance or the state
2342 department of transportation upon application may grant a
2344 reasonable extension of time for the filing of any required
2346 report, return, or tax payment, or both.
2348 Sec. 69. Section 452A.63, Code 1999, is amended to read as
2350 follows:
2352 452A.63 INFORMATION CONFIDENTIAL.
2354 All information obtained by the department of revenue and
2356 finance or the state department of transportation from the
2358 examining of reports, returns, or records required to be filed
2360 or kept under this chapter shall be treated as confidential
2362 and shall not be divulged except to other state officers, a
2364 member or members of the general assembly, or any duly
2366 appointed committee of either or both houses of the general
2368 assembly, or to a representative of the state having some
2370 responsibility in connection with the collection of the taxes
2372 imposed or in proceedings brought under the provisions of this
2374 chapter. The appropriate state agency may make available to
2376 the public on or before forty-five days following the last day
2378 of the month in which the tax is required to be paid, the
2380 names of suppliers, restrictive suppliers, and importers and
2382 as to each of them the total gallons of motor fuel, undyed
2384 special fuel, and ethanol-blended gasoline withdrawn from
2386 terminals or imported into the state during that month. The
2388 department of revenue and finance or the state department of
2390 transportation, upon request of officials entrusted with
2392 enforcement of the motor vehicle fuel tax laws of the federal
2394 government or any other state, may forward to such these
2396 officials any pertinent information which the appropriate
2398 state agency may have relative to motor fuel and special fuel
2400 provided the officials of the other state furnish like
2402 information.
2404 Any person violating the provisions of this section, and
2406 disclosing the contents of any records, returns, or reports
2408 required to be kept or made under the provisions of this
2410 chapter, except as otherwise provided, shall be guilty of a
2412 simple misdemeanor.
2414 Sec. 70. Section 452A.67, Code 1999, is amended to read as
2416 follows:
2418 452A.67 LIMITATION ON COLLECTION PROCEEDINGS.
2420 The department shall examine the return and enforce
2422 collection of any amount of tax, penalty, fine, or interest
2424 over and above the amount shown to be due by reports the
2426 return filed by a licensee as soon as practicable but no later
2428 than three years after the return is filed. An assessment
2430 shall not be made covering a period beyond three years after
2432 the return is filed except that the period for the examination
2434 and determination of the correct amount of tax is unlimited in
2436 the case of a false or fraudulent return made with the intent
2438 to evade tax or in the case of a failure to file a return.
2440 The three-year period of limitation may be extended by a
2442 taxpayer by signing a waiver agreement form to be provided by
2444 the department. The agreement must stipulate the period of
2446 extension and the tax period to which the extension applies.
2448 The agreement must also provide that a claim for refund may be
2450 filed by the taxpayer at any time during the period of
2452 extension.
2454 Sec. 71. Section 452A.68, unnumbered paragraph 1, Code
2456 1999, is amended to read as follows:
2458 If a licensee files a false report return of the data or
2460 information required by this chapter, or fails, refuses, or
2462 neglects to file a report return required by this chapter, or
2464 to pay the full amount of fuel tax as required by this
2466 chapter, or is substantially delinquent in paying a tax due,
2468 owing, and administered by the department of revenue and
2470 finance, and interest and penalty if appropriate, or if the
2472 person is a corporation and if any officer having a
2474 substantial legal or equitable interest in the ownership of
2476 the corporation owes any delinquent tax of the licensee
2478 corporation, or interest or penalty on the tax, administered
2480 by the department, then after ten days' written notice by mail
2482 directed to the last known address of the licensee setting a
2484 time and place at which the licensee may appear and show cause
2486 why the license should not be canceled, and if the licensee
2488 fails to appear or if upon the hearing it is shown that the
2490 licensee failed to correctly report or pay the tax, the
2492 appropriate state agency may cancel the license and shall
2494 notify the licensee of the cancellation by mail to the
2496 licensee's last known address.
2498 Sec. 72. Section 452A.74A, subsection 7, Code 1999, is
2500 amended to read as follows:
2502 7. FALSE OR FRAUDULENT REPORT OR RETURN. Any person,
2504 including an officer of a corporation or a manager of a
2506 limited liability company, who is required to make, render,
2508 sign, or verify any report or return required by this chapter
2510 and who makes a false or fraudulent report or return, or who
2512 fails to file a report or return with the intent to evade the
2514 tax, shall be guilty of a fraudulent practice. Any person who
2516 aids, abets, or assists another person in making any false or
2518 fraudulent report or return or false statement in any report
2520 or return with the intent to evade payment of tax shall be
2522 guilty of a fraudulent practice.
2524 Sec. 73. Section 452A.86, Code 1999, is amended to read as
2526 follows:
2528 452A.86 METHOD OF DETERMINING GALLONAGE.
2530 The exclusive method of determining gallonage of any
2532 purchases or sales of motor fuel, undyed special fuel,
2534 compressed natural gas, or liquefied petroleum gas as defined
2536 in this chapter and distillate fuels shall be on a gross
2538 volume basis. A temperature-adjusted or other method shall
2540 not be used, except as it applies to liquefied petroleum gas
2542 and the sale or exchange of petroleum products between
2544 petroleum refiners. All invoices, bills of lading, or other
2546 records of sale or purchase and all reports returns or records
2548 required to be made, kept, and maintained by a supplier,
2550 restrictive supplier, importer, exporter, blender, or
2552 compressed natural gas or liquefied petroleum gas dealer or
2554 user shall be made, kept, and maintained on the gross volume
2556 basis. For purposes of this section, "distillate fuels" means
2558 any fuel oil, gas oil, topped crude oil, or other petroleum
2560 oils derived by refining or processing crude oil or unfinished
2562 oils which have a boiling range at atmospheric pressure which
2564 falls completely or in part between five hundred fifty and
2566 twelve hundred degrees Fahrenheit.
2568 Sec. 74. Section 453A.6, subsection 3, Code 1999, is
2570 amended to read as follows:
2572 3. Payment of such the tax shall be evidenced by stamps
2574 purchased from the department by a distributor or manufacturer
2576 and securely affixed to each individual package of cigarettes
2578 in amounts equal to the tax thereon as imposed by this
2580 chapter, or by the impressing of an indicium upon individual
2582 packages of cigarettes, under regulations prescribed by the
2584 director.
2586 Sec. 75. Section 453A.6, Code 1999, is amended by adding
2588 the following new subsections:
2590 NEW SUBSECTION. 4. Any other person who purchases or is
2592 in possession of unstamped cigarettes shall pay the tax
2594 directly to the department.
2596 NEW SUBSECTION. 5. The per cigarette amount of the tax
2598 shall be added to the selling price of every package of
2600 cigarettes sold in this state and shall be collected from the
2602 purchaser so that the ultimate consumer bears the burden of
2604 the tax.
2606 Sec. 76. Section 453A.8, subsection 1, Code 1999, is
2608 amended to read as follows:
2610 1. Stamps shall be sold by and purchased from the
2612 department. The department shall sell stamps to the holder of
2614 a state distributor's or manufacturer's permit which has not
2616 been revoked and to no other person. Stamps shall be sold to
2618 the permit holders at a discount of two percent of the face
2620 value. Stamps shall be sold in unbroken books of one thousand
2622 stamps, unbroken rolls of thirty thousand stamps, or unbroken
2624 lots of any other form authorized by the director.
2626 Sec. 77. Section 453A.15, subsections 1, 3, 4, and 6, Code
2628 1999, are amended to read as follows:
2630 1. The director may prescribe the forms necessary for the
2632 efficient administration of this division and may require
2634 uniform books and records to be used and kept by each permit
2636 holder or other person as deemed necessary. The director may
2638 also require each permit holder or other person to keep and
2640 retain in the director's possession evidence on prescribed
2642 forms of all transactions involving the purchase and sale of
2644 cigarettes or the purchase and use of stamps. The evidence
2646 shall be kept for a period of two years from the date of each
2648 transaction, for the inspection at all times by the
2650 department.
2652 3. The director may by regulation require every holder of
2654 a manufacturer's or state permit or other person to make and
2656 deliver to the department on or before the tenth day of each
2658 month a report or reports for the preceding calendar month,
2660 upon a form or forms prescribed by the director, and may
2662 require that such the reports shall be properly sworn to and
2664 executed by the permit holder or the holder's duly authorized
2666 representative or other person.
2668 4. Every permit holder or other person shall, when
2670 requested by the department, make such additional reports as
2672 the department deems necessary and proper and shall at the
2674 request of the department furnish full and complete
2676 information pertaining to any transaction of the permit holder
2678 or other person involving the purchase or sale or use of
2680 cigarettes or purchase of cigarette stamps.
2682 6. If any distributor, manufacturer, or other person fails
2684 or refuses to pay any tax, penalties, or cost of audit
2686 hereinafter provided, and it becomes necessary to bring suit
2688 or to intervene in any manner for the establishment or
2690 collection of said claims, in any judicial proceedings, any
2692 report filed in the office of the director by such the
2694 distributor, manufacturer, or other person, or the
2696 distributor's, manufacturer's, or other person's
2698 representative, or a copy thereof, certified to by the
2700 director, showing the number of cigarettes sold by such the
2702 distributor, or the distributor's representative, the
2704 manufacturer, or the other person, upon which such a tax,
2706 penalty, or cost of audit has not been paid, or any audit made
2708 by the department from the books or records of said the
2710 distributor, manufacturer, or other person when signed and
2712 sworn to by the agent of the department making the audit as
2714 being made from the records of said the distributor,
2716 manufacturer, or other person from or to whom such the
2718 distributor, manufacturer, or other person has bought,
2720 received, or delivered cigarettes, whether from a
2722 transportation company or otherwise, such report or audit
2724 shall be admissible in evidence in such proceedings and shall
2726 be prima facie evidence of the contents thereof; provided,
2728 however, that. However, the incorrectness of said the report
2730 or audit may be shown.
2732 Sec. 78. Section 453A.16, Code 1999, is amended to read as
2734 follows:
2736 453A.16 MANUFACTURER'S PERMIT.
2738 The department may, upon application of any manufacturer,
2740 issue without charge to such the manufacturer a manufacturer's
2742 permit. Such The application shall contain such information
2744 as the director shall prescribe. The holder of such a
2746 manufacturer's permit shall be is authorized to purchase
2748 stamps from the department, and to must affix such stamps to
2750 individual packages of cigarettes outside of this state, prior
2752 to their shipment into the state unless the cigarettes are
2754 shipped to an Iowa permitted distributor or an Iowa permitted
2756 distributor's agent.
2758 Sec. 79. Section 453A.28, Code 1999, is amended to read as
2760 follows:
2762 453A.28 ASSESSMENT OF TAX BY DEPARTMENT – INTEREST –
2764 PENALTY.
2766 If after any audit, examination of records, or other
2768 investigation the department finds that any person has sold
2770 cigarettes without stamps affixed thereto or that any person
2772 responsible for paying the tax has not done so as required by
2774 this division, the department shall fix and determine the
2776 amount of tax due, and shall assess the tax against the
2778 person, together with a penalty as provided in section 421.27.
2780 The taxpayer shall pay interest on the tax or additional tax
2782 at the rate determined under section 421.7 counting each
2784 fraction of a month as an entire month, computed from the date
2786 the tax was due. If any person fails to furnish evidence
2788 satisfactory to the director showing purchases of sufficient
2790 stamps to stamp unstamped cigarettes purchased by the person,
2792 the presumption shall be that the cigarettes were sold without
2794 the proper stamps affixed thereto. Within two years after the
2796 return report is filed or within two years after the return
2798 report became due, whichever is later, the department shall
2800 examine the return report and determine the correct amount of
2802 tax. The period for examination and determination of the
2804 correct amount of tax is unlimited in the case of a false or
2806 fraudulent report made with the intent to evade tax, or in the
2808 case of a failure to file a report, or if a person purchases
2810 or is in possession of unstamped cigarettes.
2812 The two-year period of limitation may be extended by a
2814 taxpayer by signing a waiver agreement form to be provided by
2816 the department. The agreement must stipulate the period of
2818 extension and the tax period to which the extension applies.
2820 The agreement must also provide that a claim for refund may be
2822 filed by the taxpayer at any time during the period of
2824 extension.
2826 Sec. 80. Section 453A.29, Code 1999, is amended to read as
2828 follows:
2830 453A.29 NOTICE AND APPEAL.
2832 The department shall notify any person assessed pursuant to
2834 section 453A.28 by sending a written notice of the
2836 determination by mail to the principal place of business of
2838 the person as shown on the person's application for permit,
2840 and if an application was not filed by the person, to the
2842 person's last known address. A determination by the
2844 department of the amount of tax, penalty, and interest due, or
2846 the amount of refund for excess tax paid, is final, unless the
2848 person aggrieved by the determination appeals to the director
2850 for a revision of the determination within sixty days from the
2852 postmark date of the notice of determination of tax, penalty,
2854 and interest or refund owing or unless the taxpayer contests
2856 the determination by paying the tax, interest, and penalty and
2858 timely filing a claim for refund. The director shall grant a
2860 hearing and upon the hearing, the director shall determine the
2862 correct tax, penalty, and interest or refund due and notify
2864 the appellant of the decision by mail. Judicial review of
2866 action of the director may be sought in accordance with the
2868 Iowa administrative procedure Act and section 422.29.
2870 Sec. 81. Section 453A.31, Code 1999, is amended by
2872 striking the section and inserting in lieu thereof the
2874 following:
2876 453A.31 CIVIL PENALTY FOR CERTAIN VIOLATIONS.
2878 If a permit holder fails to keep any of the records
2880 required to be kept by the provisions of this division, or
2882 sells cigarettes upon which a tax is required to be paid by
2884 this division without at the time having a valid permit, or if
2886 a distributor, wholesaler, manufacturer, or distributing agent
2888 fails to make reports to the department as required, or makes
2890 a false or incomplete report to the department, or if a
2892 distributing agent stores unstamped cigarettes in the state or
2894 distributes or delivers unstamped cigarettes within this state
2896 without at the time of storage or delivery having a valid
2898 permit, or if a person purchases or is in possession of
2900 unstamped cigarettes, or if a person affected by this division
2902 fails or refuses to abide by any of its provisions or the
2904 rules adopted under this division, the person is civilly
2906 liable to the state for a penalty as follows:
2908 1. For possession of unstamped cigarettes:
2910 a. A two hundred dollar penalty for the first violation if
2912 a person is in possession of more than forty but not more than
2914 four hundred unstamped cigarettes.
2916 b. A five hundred dollar penalty for the first violation
2918 if a person is in possession of more than four hundred but not
2920 more than two thousand unstamped cigarettes.
2922 c. A one thousand dollar penalty for the first violation
2924 if a person is in possession of more than two thousand
2926 unstamped cigarettes.
2928 d. For a second violation within two years of the first
2930 violation, the penalty is four hundred dollars if a person is
2932 in possession of more than forty but not more than four
2934 hundred unstamped cigarettes; one thousand dollars if a person
2936 is in possession of more than four hundred but not more than
2938 two thousand unstamped cigarettes; and two thousand dollars if
2940 a person is in possession of more than two thousand unstamped
2942 cigarettes.
2944 e. For a third or subsequent violation within two years of
2946 the first violation, the penalty is six hundred dollars if a
2948 person is in possession of more than forty but not more than
2950 four hundred unstamped cigarettes; one thousand five hundred
2952 dollars if a person is in possession of more than four hundred
2954 but not more than two thousand unstamped cigarettes; and three
2956 thousand dollars if a person is in possession of more than two
2958 thousand unstamped cigarettes.
2960 2. For all other violations of this section:
2962 a. A two hundred dollar penalty for the first violation.
2964 b. A five hundred dollar penalty for a second violation
2966 within two years of the first violation.
2968 c. A thousand dollar penalty for a third or subsequent
2970 violation within two years of the first violation.
2972 The penalty imposed under this section shall be assessed
2974 and collected pursuant to section 453A.28 and is in addition
2976 to the tax, penalty, and interest imposed in that section.
2978 Sec. 82. Section 453A.45, subsections 2, 3, and 4, Code
2980 1999, are amended to read as follows:
2982 2. Every person who sells tobacco products to persons
2984 other than the ultimate consumer shall render with each sale
2986 itemized invoices showing the seller's name and address, the
2988 purchaser's name and address, the date of sale, and all prices
2990 and discounts. The person shall preserve legible copies of
2992 all such invoices for one year two years from the date of
2994 sale.
2996 3. Every retailer and subjobber shall procure itemized
2998 invoices of all tobacco products purchased. The invoices
3000 shall show the name and address of the seller and the date of
3002 purchase. The retailer and subjobber shall preserve a legible
3004 copy of each such invoice for one year two years from the date
3006 of purchase. Invoices shall be available for inspection by
3008 the director or the director's authorized agents or employees
3010 at the retailer's or subjobber's place of business.
3012 4. Records of all deliveries or shipments of tobacco
3014 products from any public warehouse of first destination in
3016 this state which is subject to the provisions of and licensed
3018 under chapter 554 shall be kept by the warehouse and be
3020 available to the director for inspection. They shall show the
3022 name and address of the consignee, the date, the quantity of
3024 tobacco products delivered, and such other information as the
3026 commissioner may require. These records shall be preserved
3028 for one year two years from the date of delivery of the
3030 tobacco products.
3032 Sec. 83. Section 453A.46, subsections 1, 4, and 6, Code
3034 1999, are amended to read as follows:
3036 1. On or before the twentieth day of each calendar month
3038 every distributor with a place of business in this state shall
3040 file a return with the director showing the quantity and
3042 wholesale sales price of each tobacco product brought, or
3044 caused to be brought, into this state for sale; and made,
3046 manufactured or fabricated in this state for sale in this
3048 state, during the preceding calendar month. Every licensed
3050 distributor outside this state shall in like manner file a
3052 return showing the quantity and wholesale sales price of each
3054 tobacco product shipped or transported to retailers in this
3056 state to be sold by those retailers, during the preceding
3058 calendar month. Returns shall be made upon forms furnished
3060 and prescribed by the director and shall contain other
3062 information as the director may require. Each return shall be
3064 accompanied by a remittance for the full tax liability shown
3066 on the return, less a discount as fixed by the director not to
3068 exceed five percent of the tax. Within two years after the
3070 return is filed or within two years after the return became
3072 due, whichever is later, the department shall examine it,
3074 determine the correct amount of tax, and assess the tax
3076 against the taxpayer for any deficiency. The period for
3078 examination and determination of the correct amount of tax is
3080 unlimited in the case of a false or fraudulent return made
3082 with the intent to evade tax, or in the case of a failure to
3084 file a return.
3086 The two-year period of limitation may be extended by a
3088 taxpayer by signing a waiver agreement form to be provided by
3090 the department. The agreement must stipulate the period of
3092 extension and the tax period to which the extension applies.
3094 The agreement must also provide that a claim for refund may be
3096 filed by the taxpayer at any time during the period of
3098 extension.
3100 4. The department shall notify any person assessed
3102 pursuant to this section by sending a written notice of the
3104 determination by mail to the principal place of business of
3106 the person as shown on the person's application for permit,
3108 and if an application was not filed by the person, to the
3110 person's last known address. A determination by the
3112 department of the amount of tax, penalty, and interest due, or
3114 the amount of refund for excess tax paid, is final, unless the
3116 person aggrieved by the determination appeals to the director
3118 for a revision of the determination within sixty days from the
3120 postmark date of the notice of determination of tax, penalty,
3122 and interest or refund owing or unless the taxpayer contests
3124 the determination by paying the tax, interest, and penalty and
3126 timely filing a claim for refund. The director shall grant a
3128 hearing and upon the hearing, the director shall determine the
3130 correct tax, penalty, and interest or refund due and notify
3132 the appellant of the decision by mail. Judicial review of
3134 action of the director may be sought in accordance with
3136 chapter 17A and section 422.29.
3138 6. On or before the twentieth day of each calendar month,
3140 every consumer who, during the preceding calendar month, has
3142 acquired title to or possession of tobacco products for use or
3144 storage in this state, upon which tobacco products the tax
3146 imposed by section 453A.43 has not been paid, shall file a
3148 return with the director showing the quantity of tobacco
3150 products so acquired. The return shall be made upon a form
3152 furnished and prescribed by the director, and shall contain
3154 such other information as the director may require. The
3156 return shall be accompanied by a remittance for the full
3158 unpaid tax liability shown by it. Within two years after the
3160 return is filed or within two years after the return became
3162 due, whichever is later, the department shall examine it,
3164 determine the correct amount of tax, and assess the tax
3166 against the taxpayer for any deficiency. The period for
3168 examination and determination of the correct amount of tax is
3170 unlimited in the case of a false or fraudulent return made
3172 with the intent to evade tax, or in the case of a failure to
3174 file a return.
3176 Sec. 84. Section 602.8102, subsection 59, Code 1999, is
3178 amended by striking the subsection.
3180 Sec. 85. Section 422.90, Code 1999, is repealed.
3182 Sec. 86. Section 450.92, Code 1999, is repealed.
3184 Sec. 87. MACHINE, EQUIPMENT, AND COMPUTERS PROPERTY TAX.
3186 1. By January 15, 2000, the department of economic
3188 development shall prepare and submit a report to the general
3190 assembly regarding the phaseout of the machine, equipment,
3192 and computers property tax including at least the following:
3194 a. The estimated impact on Iowa taxing jurisdictions.
3196 b. Recommendations for the modification or extension of
3198 the reimbursement formula.
3200 2. The department may convene an advisory committee of
3202 local and state officials and technical experts to assist in
3204 the review of the phaseout of the machine, equipment, and
3206 computers property tax.
3208 Sec. 88. DIRECTIONS TO CODE EDITOR. The Iowa Code editor
3210 shall transfer sections 427.3 through 427.7 to chapter 426A
3212 and change internal references as necessary.
3214 Sec. 89. EFFECTIVE AND APPLICABILITY DATES.
3216 1. Section 5 of this Act, amending section 422.13,
3218 subsection 5, applies retroactively to January 1, 1999, for
3220 tax years beginning on or after that date.
3222 2. Section 7 of this Act, amending section 422.23,
3224 unnumbered paragraph 2, applies retroactively to January 1,
3226 1999, for tax years beginning on or after that date.
3228 3. Section 9 of this Act, amending section 422.25,
3230 subsection 3, applies retroactively to January 1, 1999, for
3232 tax years beginning on or after that date.
3234 4. Section 11 of this Act, amending section 422.33,
3236 subsection 2, applies retroactively to January 1, 1999, for
3238 tax years beginning on or after that date.
3240 5. Section 16 of this Act, amending section 422.45,
3242 subsection 2, as it relates to the transportation of natural
3244 gas, takes effect April 1, 2000.
3246 6. Section 29 of this Act, amending section 422.121,
3248 applies retroactively to January 1, 1997, for tax years
3250 beginning on or after that date.
3252 7. Sections 31, 32, 33, 36, 37, and 39 of this Act,
3254 amending chapters 422B and 422E, take effect May 1, 1999.
3256 8. Sections 46 through 49 and section 86 of this Act,
3258 amending chapters 450 and 451, take effect July 1, 1999, for
3260 estates of decedents dying on or after that date.
3262 9. Except as otherwise provided in this section, this Act,
3264 being deemed of immediate importance, takes effect upon
3266 enactment.
3276 MARGINS F
3286
3296
3306
3316 MARY E. KRAMER
3326 President of the Senate
3336
3346
3356
3366 BRENT SIEGRIST
3376 Speaker of the House
3386
3396 I hereby certify that this bill originated in the Senate and
3406 is known as Senate File 136, Seventy-eighth General Assembly.
3416
3426
3436
3446 MICHAEL E. MARSHALL
3456 Secretary of the Senate
3466 Approved , 1999
3476
3486
3496
3506 THOMAS J. VILSACK
3516 Governor
Text: SF00135 Text: SF00137 Text: SF00100 - SF00199 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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