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PAG LIN
1 1 Section 1. 1997 Iowa Acts, chapter 158, is amended by
1 2 adding the following new section:
1 3 NEW SECTION. SEC. 54. RETROACTIVE APPLICABILITY.
1 4 Sections 14, 18, and 19 of this Act, amending sections 422.42,
1 5 422.45, subsection 39, and 422.47, relating to aquaculture
1 6 production, apply retroactively to April 1, 1987.
1 7 Sec. 2. Section 422.42, subsection 14, Code 1999, is
1 8 amended to read as follows:
1 9 14. "Retail sale" or "sale at retail" means the sale to a
1 10 consumer or to any person for any purpose, other than for
1 11 processing, for resale of tangible personal property or
1 12 taxable services, or for resale of tangible personal property
1 13 in connection with taxable services; and includes the sale of
1 14 gas, electricity, water, and communication service to retail
1 15 consumers or users; but does not include agricultural breeding
1 16 livestock and domesticated fowl; does not include aquacultural
1 17 breeding stock; and does not include commercial fertilizer,
1 18 agricultural limestone, herbicide, pesticide, insecticide,
1 19 including adjuvants, surfactants, and other products directly
1 20 related to the application enhancement of those products, and
1 21 food, medication, or agricultural drain tile, including
1 22 installation of agricultural drain tile, any of which are to
1 23 be used in disease control, weed control, insect control, or
1 24 health promotion of plants or livestock produced as part of
1 25 agricultural production for market; and does not include
1 26 electricity, steam, or any taxable service when purchased and
1 27 used in the processing of tangible personal property intended
1 28 to be sold ultimately at retail.
1 29 PARAGRAPH DIVIDED. When used by a manufacturer of food
1 30 products, carbon dioxide in a liquid, solid, or gaseous form,
1 31 electricity, steam, and other taxable services are sold for
1 32 processing when used to produce marketable food products for
1 33 human consumption, including but not limited to, treatment of
1 34 material to change its form, context, or condition, in order
1 35 to produce the food product, maintenance of quality or
2 1 integrity of the food product, changing or maintenance of
2 2 temperature levels necessary to avoid spoilage or to hold the
2 3 food product in marketable condition, maintenance of
2 4 environmental conditions necessary for the safe or efficient
2 5 use of machinery and material used to produce the food
2 6 product, sanitation and quality control activities, formation
2 7 of packaging, placement into shipping containers, and movement
2 8 of the material or food product until shipment from the
2 9 building of manufacture.
2 10 PARAGRAPH DIVIDED. Tangible personal property is sold for
2 11 processing within the meaning of this subsection only when it
2 12 is intended that the property will, by means of fabrication,
2 13 compounding, manufacturing, or germination become an integral
2 14 part of other tangible personal property intended to be sold
2 15 ultimately at retail; or will be consumed as fuel in creating
2 16 heat, power, or steam for processing including grain drying,
2 17 or for providing heat or cooling for livestock buildings or
2 18 for greenhouses or buildings or parts of buildings dedicated
2 19 to the production of flowering, ornamental, or vegetable
2 20 plants intended for sale in the ordinary course of business,
2 21 or for use in cultivation of agricultural products by
2 22 aquaculture, or for generating electric current, or in
2 23 implements of husbandry engaged in agricultural production; or
2 24 the property is a chemical, solvent, sorbent, or reagent,
2 25 which is directly used and is consumed, dissipated, or
2 26 depleted, in processing personal property which is intended to
2 27 be sold ultimately at retail or consumed in the maintenance or
2 28 repair of fabric or clothing, and which may not become a
2 29 component or integral part of the finished product.
2 30 PARAGRAPH DIVIDED. The distribution to the public of free
2 31 newspapers or shoppers guides is a retail sale for purposes of
2 32 the processing exemption.
2 33 Sec. 3. REFUNDS. Refunds of taxes, interests, or
2 34 penalties which arise from claims resulting from the enactment
2 35 of the amendment to 1997 Iowa Acts, chapter 158, in this Act,
3 1 and from the enactment of the amendment to section 422.42,
3 2 subsection 14, for sales and rentals occurring between April
3 3 1, 1987, and June 30, 1999, shall be limited to five thousand
3 4 dollars in the aggregate and shall not be allowed unless
3 5 refund claims are filed prior to October 1, 1999,
3 6 notwithstanding any other provision of law. If the amount of
3 7 claims totals more than five thousand dollars in the
3 8 aggregate, the department of revenue and finance shall prorate
3 9 the five thousand dollars among all claimants in relation to
3 10 the amounts of the claimants' valid claims.
3 11 Sec. 4. EFFECTIVE AND APPLICABILITY DATES.
3 12 1. Section 1 of this Act applies retroactively to July 1,
3 13 1997.
3 14 2. Section 2 of this Act applies retroactively to April 1,
3 15 1987.
3 16 3. This Act, being deemed of immediate importance, takes
3 17 effect upon enactment.
3 18 EXPLANATION
3 19 The general assembly enacted during the 1997 Session an
3 20 exemption to the state sales and use tax, effective July 1,
3 21 1997, for products purchased for use in aquaculture and
3 22 expanded the definition of agricultural production to include
3 23 production from aquaculture for purposes of the sales and use
3 24 taxes.
3 25 The bill also defines retail sale for sales tax purposes as
3 26 not including sales of aquaculture breeding stock.
3 27 This bill makes the previously enacted legislation and the
3 28 amendment to the definition of retail sale for sales tax
3 29 purposes retroactive to April 1, 1987, but limits the total
3 30 aggregate claims for refunds of taxes, interest, and penalties
3 31 as a result of this retroactivity in the bill to $5,000. If
3 32 such refunds exceed $5,000, each refund will receive a pro
3 33 rata amount. To claim a refund, the claim must be filed by
3 34 October 1, 1999.
3 35 The bill takes effect upon enactment.
4 1 LSB 3437SV 78
4 2 mg/sc/14
Text: SF00477 Text: SF00479 Text: SF00400 - SF00499 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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