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PAG LIN 1 1 SENATE FILE 473 1 2 1 3 AN ACT 1 4 RELATING TO THE ADMINISTRATION OF THE STATE INDIVIDUAL INCOME 1 5 TAX, CORPORATE INCOME TAX, SALES AND USE TAXES, FRANCHISE 1 6 TAX, REPLACEMENT TAXES ON ELECTRIC AND NATURAL GAS PROVIDERS, 1 7 MOTOR FUEL TAXES, INHERITANCE AND ESTATE TAXES, PROPERTY 1 8 TAXES, COLLECTION OF TAXES AND DEBTS OWED TO OR COLLECTED BY 1 9 THE STATE, AND INCLUDING EFFECTIVE AND RETROACTIVE APPLIC- 1 10 ABILITY DATE PROVISIONS. 1 11 1 12 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 1 13 1 14 Section 1. Section 421.17, subsection 34, paragraph c, 1 15 Code 1999, is amended to read as follows: 1 16 c. The director shall establish a formal debt collection 1 17 policy for use by state agencies which have not established 1 18 their own policy. Other state agencies may use the collection 1 19 facilities of the department pursuant to formal agreement with 1 20 the department. The agreement shall provide that the 1 21 information provided to the department shall be sufficient to 1 22 establish the obligation in a court of law and to render it as 1 23 a legal judgment on behalf of the state. After transferring 1 24 the file to the department for collection, an individual state 1 25 agency shall terminate all collection procedures and be 1 26 available to provide assistance to the department. Upon 1 27 receipt of the file, the department shall assume all liability 1 28 for its actions without recourse to the agency, and shall 1 29 comply with all applicable state and federal laws governing 1 30 collection of the debt. The department may use a 1 31 participating agency's statutory collection authority to 1 32 collect the participating agency's delinquent accounts, 1 33 charges, fees, loans, taxes, or other indebtedness owed to or 1 34 being collected by the state. The department has the powers 1 35 granted in this section regarding setoff from income tax 2 1 refunds or other accounts payable by the state for any of the 2 2 obligations transferred by state agencies. 2 3 Sec. 2. Section 422.4, subsection 17, paragraph c, Code 2 4 1999, is amended by striking the paragraph. 2 5 Sec. 3. Section 422.25, subsection 9, Code 1999, is 2 6 amended by striking the subsection. 2 7 Sec. 4. Section 422.32, subsection 2, unnumbered paragraph 2 8 1, Code 1999, is amended to read as follows: 2 9 "Business income" means income arising from transactions 2 10 and activity in the regular course of the taxpayer's trade or 2 11 business; or income from tangible and intangible property if 2 12 the acquisition, management, and disposition of the property 2 13 constitute integral parts of the taxpayer's regular trade or 2 14 business operations; or gain or loss resulting from the sale, 2 15 exchange, or other disposition of real property or of tangible 2 16 or intangible personal property, if the property while owned 2 17 by the taxpayer was operationally related to the taxpayer's 2 18 trade or business carried on in Iowa or operationally related 2 19 to sources within Iowa, or the property was operationally 2 20 related to sources outside this state and to the taxpayer's 2 21 trade or business carried on in Iowa; or gain or loss 2 22 resulting from the sale, exchange, or other disposition of 2 23 stock in another corporation if the activities of the other 2 24 corporation were operationally related to the taxpayer's trade 2 25 or business carried on in Iowa while the stock was owned by 2 26 the taxpayer. A taxpayer may have more than one regular trade 2 27 or business in determining whether income is business income. 2 28 Sec. 5. Section 422.42, subsections 6 and 18, Code 1999, 2 29 are amended to read as follows: 2 30 6. "Gross taxable services" means the total amount 2 31 received in money, credits, property, or other consideration, 2 32 valued in money, from services rendered, furnished, or 2 33 performed in this state except wheresuchthe service is 2 34 performed on tangible personal property delivered into 2 35 interstate commerce or is used in processing of tangible 3 1 personal property for use intaxableretail sales or services 3 2 and embraced within the provisions of this division. However, 3 3 the taxpayer may take credit in the taxpayer's report of gross 3 4 taxable services for an amount equal to the value of services 3 5 rendered, furnished, or performed when the full value ofsuch3 6 these servicesthereofis refunded either in cash or by 3 7 credit. Taxes paid on gross taxable services represented by 3 8 accounts found to be worthless and actually charged off for 3 9 income tax purposes may be credited upon a subsequent payment 3 10 of the tax due hereunder, but if any such accounts are 3 11 thereafter collected by the taxpayer, a tax shall be paid upon 3 12 the amountssocollected. 3 13 18. "Services" means all acts or services rendered, 3 14 furnished, or performed, other than services performed on 3 15 tangible personal property delivered into interstate commerce, 3 16 or services used in processing of tangible personal property 3 17 for use intaxableretail sales or services, for an "employer" 3 18 as defined in section 422.4, subsection 3, for a valuable 3 19 consideration by any person engaged in any business or 3 20 occupation specifically enumerated in this division. The tax 3 21 shall be due and collectible when the service is rendered, 3 22 furnished, or performed for the ultimate userthereofof the 3 23 services. 3 24 "Services used in the processing of tangible personal 3 25 property" includes the reconditioning or repairing of tangible 3 26 personal property of the type normally sold in the regular 3 27 course of the retailer's business and which is held for sale. 3 28 Sec. 6. Section 422.45, subsection 41, unnumbered 3 29 paragraph 2, Code 1999, is amended by striking the unnumbered 3 30 paragraph. 3 31 Sec. 7. Section 422.53, subsection 6, Code 1999, is 3 32 amended by adding the following new unnumbered paragraph: 3 33 NEW UNNUMBERED PARAGRAPH. Persons engaged in selling 3 34 tangible personal property or performing services shall not be 3 35 required to obtain or retain a sales tax permit for a place of 4 1 business at which taxable sales of tangible personal property 4 2 or taxable performance of services will not occur. 4 3 Sec. 8. Section 422.58, subsection 6, Code 1999, is 4 4 amended by striking the subsection. 4 5 Sec. 9. Section 422.68, subsection 4, Code 1999, is 4 6 amended to read as follows: 4 7 4. The department may make photostat, microfilm, 4 8 electronic, or other photographic copies of records, reports 4 9 and other papers either filed by the taxpayer or prepared by 4 10 the department. Whensuchthese photostat, electronic, or 4 11 microfilm copies have been made, the department may destroy 4 12suchthe original records in such manner as prescribed by the 4 13 director.SuchThese photostat, electronic, or microfilm 4 14 copies, when no longer of use, may be destroyed as provided in 4 15 subsection 3.SuchThese photostat, microfilm, electronic, or 4 16 other photographic records shall be admissible in evidence 4 17 when duly certified and authenticated by the officer having 4 18 custody and controlthereofof them. 4 19 Sec. 10. Section 422.72, subsection 6, unnumbered 4 20 paragraph 2, Code 1999, is amended to read as follows: 4 21 City or county employees designated to have access to 4 22 information under this subsection are deemed to be officers 4 23 and employees of the state for purposes of the restrictions 4 24and penaltiespursuant to subsection 1 pertaining to 4 25 confidential information. The department may refuse to enter 4 26 into a written informational exchange agreement if the city or 4 27 county does not agree to pay the actual cost of providing the 4 28 information and the department may refuse to abide by a 4 29 written informational exchange agreement if the city or county 4 30 does not promptly pay the actual cost of providing the 4 31 information or take reasonable precautions to protect the 4 32 information's confidentiality. 4 33 Sec. 11. Section 423.18, subsection 4, Code 1999, is 4 34 amended by striking the subsection. 4 35 Sec. 12. Section 424.17, subsection 4, Code 1999, is 5 1 amended by striking the subsection. 5 2 Sec. 13. Section 425.17, subsections 2, 4, 5, and 6, Code 5 3 1999, are amended to read as follows: 5 4 2. "Claimant" means either of the following: 5 5 a. A person filing a claim for credit or reimbursement 5 6 under this division who has attained the age of sixty-five 5 7 years on or before December 31 of the base year, who is a5 8surviving spouse having attained the age of fifty-five years5 9on or before December 31, 1988,or who is totally disabled and 5 10 was totally disabled on or before December 31 of the base 5 11 year, and was domiciled in this state during the entire base5 12year,and is domiciled in this state at the time the claim is 5 13 filed or at the time of the person's death in the case of a 5 14 claim filed by the executor or administrator of the claimant's 5 15 estate. 5 16 b. A person filing a claim for credit or reimbursement 5 17 under this division who has attained the age of twenty-three 5 18 years on or before December 31 of the base year or was a head 5 19 of household on December 31 of the base year, as defined in 5 20 the Internal Revenue Code, but has not attained the age or 5 21 disability status described in paragraph "a",and was5 22domiciled in this state during the entire base year,and is 5 23 domiciled in this state at the time the claim is filed or at 5 24 the time of the person's death in the case of a claim filed by 5 25 the executor or administrator of the claimant's estate, and 5 26 was not claimed as a dependent on any other person's tax 5 27 return for the base year. 5 28 "Claimant" under paragraph "a" or "b" includes a vendee in 5 29 possession under a contract for deed and may include one or 5 30 more joint tenants or tenants in common. In the case of a 5 31 claim for rent constituting property taxes paid, the claimant 5 32 shall have rented the property during any part of the base 5 33 year. In the case of a claim for property taxes due, the 5 34 claimant shall have occupied the property during any part of 5 35 the fiscal year beginning July 1 of the base year. If a 6 1 homestead is occupied by two or more persons, and more than 6 2 one person is able to qualify as a claimant, the persons may 6 3determine among them who will be the claimanteach file a 6 4 claim based upon each person's income and rent constituting 6 5 property taxes paid or property taxes due.If they are unable6 6to agree, the matter shall be referred to the director of6 7revenue and finance not later than June 1 of each year and the6 8director's decision is final.6 9 4. "Homestead" means the dwelling owned or rented and 6 10 actually used as a home by the claimant duringall or part of6 11the base yearthe period specified in subsection 2, and so 6 12 much of the land surrounding it including one or more 6 13 contiguous lots or tracts of land, as is reasonably necessary 6 14 for use of the dwelling as a home, and may consist of a part 6 15 of a multidwelling or multipurpose building and a part of the 6 16 land upon which it is built. It does not include personal 6 17 property except that a mobile home may be a homestead. Any 6 18 dwelling or a part of a multidwelling or multipurpose building 6 19 which is exempt from taxation does not qualify as a homestead 6 20 under this division. However, solely for purposes of 6 21 claimants living in a property and receiving reimbursement for 6 22 rent constituting property taxes paid immediately before the 6 23 property becomes tax exempt, and continuing to live in it 6 24 after it becomes tax exempt, the property shall continue to be 6 25 classified as a homestead. A homestead must be located in 6 26 this state. When a person is confined in a nursing home, 6 27 extended-care facility, or hospital, the person shall be 6 28 considered as occupying or living in the person's homestead if 6 29 the person is the owner of the homestead and the person 6 30 maintains the homestead and does not lease, rent, or otherwise 6 31 receive profits from other persons for the use of the 6 32 homestead. 6 33 5. "Household" means a claimant, spouse, and any person6 34related to the claimant or spouse by blood, marriage, or6 35adoptionand the claimant's spouse if living with the claimant 7 1 at any time during the base year. "Living with" refers to 7 2 domicile and does not include a temporary visit. 7 3 6. "Household income" means all income of the claimant and 7 4 the claimant's spouse in a household and actual monetary 7 5 contributions received from any otherhousehold member or7 6nonmemberperson living with the claimant during their 7 7 respective twelve-month income tax accounting periods ending 7 8 with or during the base year. 7 9 Sec. 14. Section 425.19, Code 1999, is amended to read as 7 10 follows: 7 11 425.19 CLAIM AND CREDIT OR REIMBURSEMENT. 7 12 Subject to the limitations provided in this division, a 7 13 claimant may annually claim a credit for property taxes due 7 14 during the fiscal year next following the base year or claim a 7 15 reimbursement for rent constituting property taxes paid in the 7 16 base year. The amount of the credit for property taxes due 7 17 for a homestead shall be paid onFebruaryJune 15 of each year 7 18 by the director to the county treasurer who shall credit the 7 19 money received against the amount of the property taxes due 7 20 and payable on the homestead of the claimant and the amount of 7 21 the reimbursement for rent constituting property taxes paid 7 22 shall be paid to the claimant from the state general fund on 7 23 or before December 31 of each year. 7 24 Sec. 15. Section 425.21, Code 1999, is amended to read as 7 25 follows: 7 26 425.21 SATISFACTION OF OUTSTANDING TAX LIABILITIES. 7 27 The amount of any claim for credit or reimbursement payable 7 28 under this division may be applied by the department of 7 29 revenue and finance against any tax liability, delinquent 7 30 accounts, charges, loans, fees, or other indebtedness due the 7 31 state or state agency that have formal agreements with the 7 32 department for central debt collection, outstanding on the 7 33 books of the department against the claimant, or against a 7 34 spouse who was a member of the claimant's household in the 7 35 base year. 8 1 Sec. 16. Section 425.29, Code 1999, is amended to read as 8 2 follows: 8 3 425.29 FALSE CLAIM – PENALTY. 8 4 A person who makes a false affidavit for the purpose of 8 5 obtaining credit or reimbursement provided for in this 8 6 division or who knowingly receives the credit or reimbursement 8 7 without being legally entitled to it or makes claim for the 8 8 credit or reimbursement in more than one county in the state 8 9 without being legally entitled to it is guilty of a fraudulent 8 10 practice.Prosecution under this section shall be brought in8 11the county of residence of the person to be charged.The 8 12 claim for credit or reimbursement shall be disallowed in full 8 13 and if the claim has been paid the amount shall be recovered 8 14 in the manner provided in section 425.27. The director of 8 15 revenue and finance shall send a notice of disallowance of the 8 16 claim. 8 17 Sec. 17. Section 427.1, subsection 16, Code 1999, is 8 18 amended to read as follows: 8 19 16. REVOKING EXEMPTION. Any taxpayer or any taxing 8 20 district may make application to the director of revenue and 8 21 finance for revocation for any exemption, based upon alleged 8 22 violations of this chapter. The director of revenue and 8 23 finance may also on the director's own motion set aside any 8 24 exemption which has been granted upon property for which 8 25 exemption is claimed under this chapter. The director of 8 26 revenue and finance shall give notice by mail to the taxpayer 8 27 or taxing district applicant and to the societies or 8 28 organizations claiming an exemption upon property, exemption 8 29 of which is questioned before or by the director of revenue 8 30 and finance and shall hold a hearing prior to issuing any 8 31 order for revocation. An order made by the director of 8 32 revenue and finance revoking or modifying an exemption shall 8 33 be applicable to the tax year commencing with the tax year in 8 34 which the application is made to the director of revenue and 8 35 finance. An order made by the director of revenue and finance 9 1 revoking or modifying an exemption is subject to judicial 9 2 review in accordance with chapter 17A, the Iowa administrative 9 3 procedure Act. Notwithstanding the terms of that Act, 9 4 petitions for judicial review may be filed in the district 9 5 court having jurisdiction in the county in which the property 9 6 is located, and must be filed within thirty days after any 9 7 order revoking an exemption is made by the director of revenue 9 8 and finance. 9 9 Sec. 18. Section 427A.12, subsection 6, Code 1999, is 9 10 amended to read as follows: 9 11 6.The amount due each taxing district shall be paid in9 12the form of warrants payable to the respective county9 13treasurers by the director of revenue and finance on May 15 of9 14each fiscal year, taking into consideration the relative9 15budget and cash position of the state resources. For the9 16fiscal year beginning July 1, 1985, and ending June 30, 1986,9 17and for each succeedingFor each fiscal year the amount due 9 18 each taxing district shall be paid in the form of warrants 9 19 payable to the respective county treasurers by the director of 9 20 revenue and finance on July 15 and May 15 of that fiscal year, 9 21 taking into consideration the relative budget and cash 9 22 position of the state resources. The July 15 payment shall be 9 23 equal to the amount paid on May 15 of the preceding fiscal 9 24 year and the payments received shall be an account receivable 9 25 for each taxing district for the preceding fiscal year. The 9 26 May 15 payment is equal to one-half of the amount of the 9 27 additional personal property tax credit payable for the fiscal 9 28 year. The county treasurer shall pay the proceeds to the 9 29 various taxing districts in the county. 9 30 Sec. 19. Section 435.22, subsection 2, unnumbered 9 31 paragraph 2, Code 1999, is amended to read as follows: 9 32 For purposes of this subsection "income" means income as 9 33 defined in section 425.17, subsection 7, and "base year" means 9 34 the calendar year preceding the year in which the claim for a 9 35 reduced rate of tax is filed. The home reduced rate of tax 10 1 shall only be allowed on the home in which the claimant is 10 2 residing at the timein whichthe claim for a reduced rate of 10 3 tax is filed or was residing at the time of the claimant's 10 4 death in the case of a claim filed on behalf of a deceased 10 5 claimant by the claimant's legal guardian, spouse, or 10 6 attorney, or by the executor or administrator of the 10 7 claimant's estate. 10 8 Sec. 20. Section 435.22, subsection 5, unnumbered 10 9 paragraph 1, Code 1999, is amended to read as follows: 10 10 A claim for credit for mobile home tax due shall not be 10 11 paid or allowed unless the claim is actually filed with the 10 12 county treasurer between January 1 and June 1, both dates 10 13 inclusive, immediately preceding the fiscal year during which 10 14 the home taxes are dueand, with the exception of a claim10 15filed on behalf of a deceased claimant by the claimant's legal10 16guardian, spouse, or attorney, or by the executor or10 17administrator of the claimant's estate, contains an affidavit10 18of the claimant's intent to occupy the home for six months or10 19more during the fiscal year beginning in the calendar year in10 20which the claim is filed. However, in case of sickness, 10 21 absence, or other disability of the claimant, or if in the 10 22 judgment of the county treasurer good cause exists, the county 10 23 treasurer may extend the time for filing a claim for credit 10 24 through September 30 of the same calendar year. The county 10 25 treasurer shall certify to the director of revenue and finance 10 26 on or before November 15 each year the total dollar amount due 10 27 for claims allowed. 10 28 Sec. 21. Section 437A.3, subsection 13, Code 1999, is 10 29 amended to read as follows: 10 30 13. "Local taxingdistrictauthority" means a city, 10 31 county, community college, school district, or other taxing 10 32districtauthority located in this state and authorized to 10 33 certify a levy on property located within suchdistrict10 34 authority for the payment of bonds and interest or other 10 35 obligations of suchdistrictauthority. 11 1 13A. "Local taxing district" means a geographic area with 11 2 a common consolidated property tax rate. 11 3 Sec. 22. Section 437A.3, subsection 19, paragraph a, 11 4 subparagraph (2), Code 1999, is amended to read as follows: 11 5 (2) The natural gas competitive service area, excluding 11 6 any municipal natural gas competitive service area described 11 7 in subparagraph (1) and consisting of Sioux county; Plymouth 11 8 county; Woodbury county; Ida county; Harrison county; Shelby 11 9 county; Audubon county; Palo Alto county; Humboldt county; 11 10 Mahaska county; Scott county; Lyon county except Wheeler, 11 11 Dale, Liberal, Grant, Midland, and Elgin townships; O'Brien 11 12 county except Union, Dale, Summit, Highland, Franklin, and 11 13 Center townships; Cherokee county except Cherokee and Pilot 11 14 townships; Monona county except Franklin township and the 11 15 south half of Ashton township; Pottawattamie county except 11 16 Crescent, Hazel Dell, Lake, Garner, Kane, and Lewis townships; 11 17 Mills county except Glenwood and Center townships; Montgomery 11 18 county except Douglas, Washington, and East townships; Page 11 19 county except Valley, Douglas, Nodaway, Nebraska, Harlan, East 11 20 River, Amity, and Buchanan townships; Fremont county except 11 21 Green, Scott, Sidney, Benton, Washington, and Madison 11 22 townships; Brighton and Pleasant townships in Cass county; Sac 11 23 county except Clinton, Wall Lake, Coon Valley, Levey, Viola, 11 24 and Sac townships; Newell township in Buena Vista county; 11 25 Calhoun county except Reading township; Denmark township in 11 26 Emmet county; Kossuth county except Eagle, Grant, Springfield, 11 27 Hebron, Swea, Harrison, Ledyard, Lincoln, Seneca, Greenwood, 11 28 Ramsey, and German townships; Webster county except Roland, 11 29 Clay, Burnside, Yell, Webster, Gowrie, Lost Grove, Dayton, and 11 30 Hardin townships; Guthrie county except Grant, Thompson, and 11 31 Beaver townships; Union township in Union county; Madison 11 32 county except Ohio and New Hope townships; Warren county 11 33 except Virginia, Squaw, Liberty, and White Breast townships; 11 34 Cedar, Union, Bluff Creek, and Pleasant townships in Monroe 11 35 county; Marion county except Lake Prairie, Knoxville, Summit, 12 1 and Union townships; Dallas county except Des Moines and Grant 12 2 townships; Polk county except sections 4, 5, 6, 7, 8, 9, 16, 12 3 17, and 18 in Lincoln township and the city of Grimes, and 12 4 sections 1, 2, 3, 10, 11, 12, 13, 14, and 15 in Union 12 5 township; Poweshiek, Washington, Mound Prairie, Des Moines, 12 6 Elk Creek, and Fairview townships in Jasper county; Wright 12 7 county except Belmond and Pleasant townships; Geneseo township 12 8 in Cerro Gordo county; Franklin county except Wisner and Scott 12 9 townships and the city of Coulter; Butler county except 12 10 Bennezette, Coldwater, Dayton, and Fremont townships; Floyd 12 11 county except Rock Grove, Rudd, Rockford, Ulster, Scott, and 12 12 Union townships; Branford township in Chickasaw county; Bremer 12 13 county except Frederika, LeRoy, Sumner No. 2, Fremont, Dayton, 12 14 Maxfield, and Franklin townships; Perry, Washington, Westburg, 12 15 and Sumner townships in Buchanan county; Black Hawk county 12 16 except Big Creek township; Fremont township in Benton county; 12 17 Wapello county except Washington township; Benton and Steady 12 18 Run townships in Keokuk county; the city of Barnes City in 12 19 Poweshiek county; Iowa township in Washington county; Johnson 12 20 county except Fremont township; Linn county except Franklin, 12 21 Grant, Spring Grove, Jackson, Boulder,andWashington, 12 22townships, Monroe township west and north of Otter creek and12 23County Home road, andOtter Creek, Maine, Buffalo, and 12 24 Fayette, and Clintontownships; Monroe township west and north 12 25 of Otter Creek to its intersection with County Home road, and 12 26 north of County Home road in Linn county; the city of Walford 12 27 in Linn county; Farmington township in Cedar county; 12 28 Wapsinonoc, Goshen, Moscow, Wilton, and Fulton townships in 12 29 Muscatine county; and Lee county except Des Moines, Montrose, 12 30 Keokuk, and Jackson townships. 12 31 Sec. 23. Section 437A.3, subsection 28, Code 1999, is 12 32 amended to read as follows: 12 33 28. "Transfer replacement tax" means the excise tax 12 34 imposed in a competitive service area of a municipal utility 12 35 which replaces transfers made by the municipal utility in 13 1 accordance with section 384.89. 13 2 Sec. 24. Section 437A.7, subsection 2, paragraph b, Code 13 3 1999, is amended by striking the paragraph and inserting in 13 4 lieu thereof the following: 13 5 b. Transmission lines owned by or leased to a lessor when 13 6 the transmission lines are subject to the replacement 13 7 transmission tax payable by the lessee or sublessee. 13 8 Sec. 25. Section 437A.10, subsection 2, Code 1999, is 13 9 amended to read as follows: 13 10 2. For cause and upon a showing by the director that 13 11 collection of the tax in dispute is in doubt, the court may 13 12 order the petitioner to file with the clerk of the district 13 13 court a bond for the use of the appropriate local taxing 13 14districtsauthorities, with sureties approved by the clerk of 13 15 the district court, in the amount of the tax appealed from, 13 16 conditioned upon the performance by the petitioner of any 13 17 orders of the court. 13 18 Sec. 26. Section 437A.14, subsection 4, unnumbered 13 19 paragraph 1, Code 1999, is amended to read as follows: 13 20 Notwithstanding subsections 2 and 3, the chief financial 13 21 officer of any local taxingdistrictauthority and any 13 22 designee of such officer shall have access to any computations 13 23 made by the director pursuant to the provisions of this 13 24 chapter, and any tax return or other information used by the 13 25 director in making such computations, which affect the 13 26 replacement tax owed by any such taxpayer. 13 27 Sec. 27. Section 437A.14, subsection 5, Code 1999, is 13 28 amended to read as follows: 13 29 5. Local taxingdistrictauthority employees are deemed to 13 30 be officers and employees of the state for purposes of 13 31 subsection 2. 13 32 Sec. 28. Section 437A.15, subsection 7, unnumbered 13 33 paragraph 2, Code 1999, is amended to read as follows: 13 34 The task force shall study the effects of the replacement 13 35 tax on local taxing authorities, local taxing districts, 14 1 consumers, and taxpayers and the department of management 14 2 shall report to the general assembly by January 1 of each year 14 3 through January 1, 2003, the results of the study and the 14 4 specific recommendations of the task force for modifications 14 5 to the replacement tax, if any, which will further the 14 6 purposes of tax neutrality for local taxing authorities, local 14 7 taxing districts, taxpayers, and consumers, consistent with 14 8 the stated purposes of this chapter. The department of 14 9 management shall also report to the legislative council by 14 10 November 15 of each year through 2002, the status of the task 14 11 force study and any recommendations. 14 12 Sec. 29. Section 437A.16, Code 1999, is amended to read as 14 13 follows: 14 14 437A.16 ASSESSMENT EXCLUSIVE. 14 15 All operating property and all other property that is 14 16 primarily and directly used in the production, generation, 14 17 transmission, or delivery of electricity or natural gasowned14 18by or leased to a personsubject totaxation under this14 19chapterreplacement tax or transfer replacement tax is exempt 14 20 from taxation except as otherwise provided by this chapter. 14 21 This exemption shall not extend to taxes imposed under 14 22 chapters 437, 438, and 468, taxpayers described in section 14 23 437A.8, subsection 6, or facilities or property described in 14 24 section 437A.6, subsection 1, paragraphs "a" through "f", and 14 25 section 437A.7, subsection 2. 14 26 Sec. 30. NEW SECTION. 437A.17A CENTRALLY ASSESSED 14 27 PROPERTY TAX ADJUSTMENT. 14 28 A municipal utility whose property tax assessment for the 14 29 1998 assessment year was adjusted by the department of revenue 14 30 and finance to include depreciation and whose property tax 14 31 assessment for the 1997 assessment year did not include 14 32 depreciation in determining its assessment shall be entitled 14 33 to file a property tax adjustment form provided by the 14 34 department. The tax adjustment form shall be filed by July 1, 14 35 1999. The tax adjustment form shall include an adjusted 15 1 centrally assessed property tax computation determined by 15 2 multiplying the centrally assessed property tax which was 15 3 payable in the fiscal year beginning July 1, 1998, based upon 15 4 valuation determined for the 1997 assessment year allocated to 15 5 electric service and natural gas service by the percentage of 15 6 adjustment for depreciation made by the department for the 15 7 1998 assessment year. The adjusted centrally assessed 15 8 property tax allocated to electric service and natural gas 15 9 service shall be used to determine the replacement delivery 15 10 tax rates in accordance with sections 437A.4 and 437A.5. 15 11 Sec. 31. Section 437A.19, subsection 2, unnumbered 15 12 paragraph 4, Code 1999, is amended to read as follows: 15 13 Nothing in this chapter shall be interpreted to authorize 15 14 local taxingdistrictsauthorities to exclude from the 15 15 calculation of levy rates the adjusted assessed value of 15 16 taxpayer property reported to county auditors pursuant to this 15 17 subsection. 15 18 Sec. 32. Section 450.1, Code 1999, is amended by adding 15 19 the following new unnumbered paragraph: 15 20 NEW UNNUMBERED PARAGRAPH. "Real estate or real property" 15 21 for the purpose of appraisal under this chapter means real 15 22 estate which is the land and appurtenances, including 15 23 structures affixed thereto. 15 24 Sec. 33. Section 450.27, Code 1999, is amended to read as 15 25 follows: 15 26 450.27 COMMISSION TO APPRAISERS. 15 27 When an appraisal of real estate is requested by the 15 28 department of revenue and finance, as provided in section 15 29 450.37, or is otherwise required by this chapter, the clerk 15 30 shall issue a commission to the appraisers, who shall fix a 15 31 time and place for appraisement, except that if the only 15 32 interest that is subject to tax is a remainder or deferred 15 33 interest upon which the tax is not payable until the 15 34 determination of a prior estate or interest for life or term 15 35 of years, the clerk shall not issue the commission until the 16 1 determination of the prior estate, except at the request of 16 2 the department of revenue and finance when the parties in 16 3 interest seek to remove an inheritance tax lien. When valuing 16 4 the real estate for purposes of inheritance tax, an appraiser 16 5 does not have the jurisdiction to determine what property or 16 6 partial interests may or may not be subject to tax. Whole 16 7 interests in the property should be appraised and the question 16 8 of the actual property or partial interest subject to 16 9 inheritance tax is to be determined by means of the 16 10 administrative procedures pursuant to section 450.94. All 16 11 joint property that is to be appraised should be listed at its 16 12 full market value. Long-term leases are not considered in 16 13 determining the value of property when being appraised. 16 14 Sec. 34. Section 450.37, subsection 2, unnumbered 16 15 paragraph 1, Code 1999, is amended to read as follows: 16 16 Fair market value of real estate in the ordinary course of 16 17 trade shall be established by agreement, including an 16 18 agreement to accept the values as finally determined for 16 19 federal estate tax purposes. The agreement shall be between 16 20 the department of revenue and finance, the personal 16 21 representative, and the persons who have an interest in the 16 22 property. 16 23 Sec. 35. Section 452A.74, subsection 8, unnumbered 16 24 paragraph 2, Code 1999, is amended to read as follows: 16 25 A person found guilty of an offense specified in this 16 26 section is guilty of a fraudulent practice.For purposes of16 27determining the place of trial, the situs of an offense16 28specified in this section is in the county of the residence of16 29the person charged with the offense. However, if the person16 30is a nonresident or the person's residence cannot be16 31determined, the situs of the offense is in Polk county.16 32 Prosecution for an offense specified in this section shall be 16 33 commenced within six years following its commission. 16 34 Sec. 36. Section 452A.75, unnumbered paragraph 2, Code 16 35 1999, is amended to read as follows: 17 1In determining the place of trial, the situs of an offense17 2in this section is in the county of the residence of the17 3person charged with the offense. However, if the person is a17 4nonresident or the person's residence cannot be determined,17 5the situs of the offense is in Polk county.Prosecution for 17 6 an offense specified in this section shall be commenced within 17 7 six years following its commission. 17 8 Sec. 37. Section 803.3, Code 1999, is amended by adding 17 9 the following new subsection: 17 10 NEW SUBSECTION. 6. a. If a person is charged with a 17 11 violation of the tax laws arising out of individual tax 17 12 liability, venue is in the county of residence of the person 17 13 charged with the offense, unless the person is a nonresident 17 14 of this state or the residence of the person cannot be 17 15 established, in which event venue is in Polk county. 17 16 b. If a person is charged with a violation of the tax laws 17 17 arising out of a business, venue is in any county where 17 18 business was conducted. If a specific county cannot be 17 19 established as a situs, venue is in Polk county. 17 20 c. If a person is charged with a violation of section 17 21 453B.12, venue is in the county of the residence of the person 17 22 charged with the offense or the county in which the drugs were 17 23 found. 17 24 d. If a person is charged with a violation of the tax laws 17 25 in which venue is set under multiple provisions of this 17 26 section, venue is in any county in which one of the charges 17 27 may be prosecuted. 17 28 Sec. 38. 1998 Iowa Acts, chapter 1194, section 38, is 17 29 amended by adding the following new subsection: 17 30 NEW SUBSECTION. 9. Notwithstanding subsections 1 through 17 31 8, a municipal utility shall report to the director its 17 32 centrally assessed property tax allocated to electric service 17 33 and its centrally assessed property tax allocated to natural 17 34 gas service for the 1997 assessment year only. 17 35 Sec. 39. Section 427A.14, Code 1999, is repealed. 18 1 Sec. 40. EFFECTIVE AND APPLICABILITY DATES. 18 2 1. Section 4 of this Act, amending section 422.32, is 18 3 retroactive to January 1, 1999, for tax years beginning on or 18 4 after that date. 18 5 2. Sections 21 through 29, 31, and 38 of this Act, 18 6 amending sections related to the replacement taxes on 18 7 electricity and natural gas providers, take effect July 1, 18 8 1999. 18 9 3. Section 30 of this Act, establishing new section 18 10 437A.17A, being deemed of immediate importance, takes effect 18 11 upon enactment. 18 12 4. Sections 32 through 34 of this Act, amending sections 18 13 450.1, 450.27, and 450.37, take effect July 1, 1999, for 18 14 estates of decedents dying on or after that date. 18 15 5. Except as otherwise provided in this section, this Act, 18 16 being deemed of immediate importance, takes effect upon 18 17 enactment. 18 18 18 19 18 20 18 21 MARY E. KRAMER 18 22 President of the Senate 18 23 18 24 18 25 18 26 BRENT SIEGRIST 18 27 Speaker of the House 18 28 18 29 I hereby certify that this bill originated in the Senate and 18 30 is known as Senate File 473, Seventy-eighth General Assembly. 18 31 18 32 18 33 18 34 MICHAEL E. MARSHALL 18 35 Secretary of the Senate 19 1 Approved , 1999 19 2 19 3 19 4 19 5 THOMAS J. VILSACK 19 6 Governor
Text: SF00472 Text: SF00474 Text: SF00400 - SF00499 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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