Text: SSB01042 Text: SSB01044 Text: SSB01000 - SSB01099 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 421.1, unnumbered paragraph 8, Code 1 2 1999, is amended to read as follows: 1 3 The state board shallhold at least six regular meetings1 4each year, the first of which shall be on the second secular1 5day of Julymeet as deemed necessary by the chairperson. 1 6 Special meetings of the state board may be called by the 1 7 chairperson on five days' notice given to each member. All 1 8 meetings shall be held at the office of the tax department 1 9 unless a different place within the state is designated by the 1 10 state board or in the notice of the meeting. 1 11 Sec. 2. Section 421.16, Code 1999, is amended to read as 1 12 follows: 1 13 421.16 EXPENSES. 1 14 The director, deputy directors,and department employees 1 15 are entitled to receive from the state their actual necessary 1 16 expenses while traveling on the business of the department. 1 17 The expenditures shall be sworn to by the party who incurred 1 18 the expense, and approved and allowed by the director. 1 19 However, such expenses shall not be allowed residents of Polk 1 20 county while in the city of Des Moines or traveling between 1 21 their homes and the city of Des Moines. 1 22 Sec. 3. Section 421.18, Code 1999, is amended to read as 1 23 follows: 1 24 421.18 DUTIES OF PUBLIC OFFICERS AND EMPLOYEES. 1 25 It shall be the duty of all public officers and employees 1 26 of the state andof all municipalitieslocal governments to 1 27 give to the director of revenue and finance information in 1 28 their possession relating to taxation when required by the 1 29 director, and to co-operate with and aid the director's 1 30 efforts to secure a fair, equitable, and just enforcement of 1 31 the taxation and revenue laws. 1 32 Sec. 4. Section 422.5, subsections 3 and 11, Code 1999, 1 33 are amended by striking the subsections. 1 34 Sec. 5. Section 422.13, subsection 5, Code 1999, is 1 35 amended to read as follows: 2 1 5. Notwithstanding subsections 1 through 4 and sections 2 2 422.15 and 422.36, a partnership, a limited liability company 2 3 whose members are taxed on the company's income under 2 4 provisions of the Internal Revenue Code, trust, or corporation 2 5 whose stockholders are taxed on the corporation's income under 2 6 the provisions of the Internal Revenue Codeis entitled to2 7request permission from the directormay, not later than the 2 8 due date for filing its return for the taxable year, including 2 9 any extension thereof, elect to file a composite return for 2 10 the nonresident partners, members, beneficiaries, or 2 11 shareholders. The director maygrant permission to file or2 12 require that a composite return be filed under the conditions 2 13 deemed appropriate by the director. A partnership, limited 2 14 liability company, trust, or corporation filing a composite 2 15 return is liable for tax required to be shown due on the 2 16 return. All powers of the director and requirements of the 2 17 director apply to returns filed under this subsection 2 18 including, but not limited to, the provisions of this division 2 19 and division VI of this chapter. 2 20 Sec. 6. Section 422.16, subsection 2, unnumbered paragraph 2 21 2, Code 1999, is amended to read as follows: 2 22 Every withholding agent on or before the end of the second 2 23 month following the close of the calendar year in which the 2 24 withholding occurs shall make an annual reporting of taxes 2 25 withheld and other information prescribed by the director and 2 26 send to the department copies of wage and tax statements with 2 27 the return. At the discretion of the director, the 2 28 withholding agent shall not be required to send wage 2 29 statements and tax statements with the annual reporting return 2 30 form if the information is available from the Internal Revenue 2 31 Service or other state or federal agencies. 2 32 Sec. 7. Section 422.23, unnumbered paragraph 2, Code 1999, 2 33 is amended by striking the unnumbered paragraph. 2 34 Sec. 8. Section 422.25, subsection 1, paragraph b, Code 2 35 1999, is amended to read as follows: 3 1 b. The period for examination and determination of the 3 2 correct amount of tax is unlimited in the case of a false or 3 3 fraudulent return made with the intent to evade tax or in the 3 4 case of a failure to file a return. In lieu of the period of 3 5 limitation for any prior year for which an overpayment of tax 3 6 or an elimination or reduction of an underpayment of tax due 3 7 for that prior year results from the carryback to that prior 3 8 year of a net operating loss or net capital loss, the period 3 9 is the period of limitation for the taxable year of the net 3 10 operating loss or net capital loss which results in the 3 11 carryback. If the tax found due is greater than the amount 3 12 paid, the department shall compute the amount due, together 3 13 with interest and penalties as provided in subsection 2, and 3 14 shall mail a notice of assessment to the taxpayer and, if 3 15 applicable, to the taxpayer's authorized representative of the 3 16 total, which shall be computed as a sum certain if paid on or 3 17 before the last day of the month in which the notice is 3 18postmarkeddated, or on or before the last day of the 3 19 following month if the notice ispostmarkeddated after the 3 20 twentieth day of any month. The notice shall also inform the 3 21 taxpayer of the additional interest and penalty which will be 3 22 added to the total due if not paid on or before the last day 3 23 of the applicable month. 3 24 Sec. 9. Section 422.25, subsection 3, Code 1999, is 3 25 amended to read as follows: 3 26 3. If the amount of the tax as determined by the 3 27 department is less than the amount paid, the excess shall be 3 28 refunded with interest, the interest to begin to accrue on the 3 29 first day of the second calendar month following the date of 3 30 payment or the date the return was due to be filed, or the 3 31 extended due date by which the return was due to be filed if 3 32 ninety percent of the tax was paid by the original due date, 3 33 or was filed, whichever is the latest, at the rate in effect 3 34 under section 421.7 counting each fraction of a month as an 3 35 entire month under the rules prescribed by the director. If 4 1 an overpayment of tax results from a net operating loss or net 4 2 capital loss which is carried back to a prior year, the 4 3 overpayment, for purposes of computing interest on refunds, 4 4 shall be considered as having been made on the date a claim 4 5 for refund or amended return carrying back the net operating 4 6 loss or net capital loss is filed with the department or on 4 7 the first day of the second calendar month following the date 4 8 of the actual payment of the tax, whichever is later. 4 9 However, when the net operating loss or net capital loss 4 10 carryback to a prior year eliminates or reduces an 4 11 underpayment of tax due for an earlier year, the full amount 4 12 of the underpayment of tax shall bear interest at the rate in 4 13 effect under section 421.7 for each month counting each 4 14 fraction of a month as an entire month from the due date of 4 15 the tax for the earlier year to the last day of the taxable 4 16 year in which the net operating loss or net capital loss 4 17 occurred. 4 18 Sec. 10. Section 422.33, subsection 1, unnumbered 4 19 paragraph 1, Code 1999, is amended to read as follows: 4 20 A tax is imposed annually upon each corporationorganized4 21under the laws of this state, and upon each foreign4 22corporationdoing business in this state, or deriving income 4 23 from sources within this state, in an amount computed by 4 24 applying the following rates of taxation to the net income 4 25 received by the corporation during the income year: 4 26 Sec. 11. Section 422.33, subsection 2, unnumbered 4 27 paragraph 1, Code 1999, is amended to read as follows: 4 28 If the trade or business of the corporation is carried on 4 29 entirely within the state, the tax shall be imposed on the 4 30 entire net income, but if the trade or business is carried on 4 31 partly within and partly without the state or if income is 4 32 derived from sources partly within and partly without the 4 33 state, or if income is derived from trade or business and 4 34 sources, all of which are not entirely in the state, the tax 4 35 shall be imposed only on the portion of the net income 5 1 reasonably attributable to the trade or business or sources 5 2 within the state, with the net income attributable to the 5 3 state to be determined as follows: 5 4 Sec. 12. Section 422.42, subsection 6, Code 1999, is 5 5 amended to read as follows: 5 6 6. "Gross taxable services" means the total amount 5 7 received in money, credits, property, or other consideration, 5 8 valued in money, from services rendered, furnished, or 5 9 performed in this state except where such serviceis performed5 10on tangible personal property delivered into interstate5 11commerce oris used in processing of tangible personal 5 12 property for use in taxable retail sales or services and 5 13 embraced within the provisions of this division. However, the 5 14 taxpayer may take credit in the taxpayer's report of gross 5 15 taxable services for an amount equal to the value of services 5 16 rendered, furnished, or performed when the full value ofsuch5 17 the servicesthereofis refunded either in cash or by credit. 5 18 Taxes paid on gross taxable services represented by accounts 5 19 found to be worthless and actually charged off for income tax 5 20 purposes may be credited upon a subsequent payment of the tax 5 21 duehereunder, but if anysuchaccounts are thereafter 5 22 collected by the taxpayer, a tax shall be paid upon the 5 23 amounts so collected. 5 24 Sec. 13. Section 422.42, subsection 18, unnumbered 5 25 paragraph 1, Code 1999, is amended to read as follows: 5 26 "Services" means all acts or services rendered, furnished, 5 27 or performed, other than servicesperformed on tangible5 28personal property delivered into interstate commerce, or5 29servicesused in processing of tangible personal property for 5 30 use in taxable retail sales or services, for an "employer" as 5 31 defined in section 422.4, subsection 3, for a valuable 5 32 consideration by any person engaged in any business or 5 33 occupation specifically enumerated in this division. The tax 5 34 shall be due and collectible when the service is rendered, 5 35 furnished, or performed for the ultimate userthereofof the 6 1 service. 6 2 Sec. 14. Section 422.44, unnumbered paragraph 2, Code 6 3 1999, is amended by striking the unnumbered paragraph. 6 4 Sec. 15. Section 422.45, subsection 7, paragraph b, 6 5 unnumbered paragraph 1, Code 1999, is amended to read as 6 6 follows: 6 7 Such governmental unit, educational institution, or 6 8 nonprofit private museum shall, not more thansix monthsone 6 9 year after the final settlement has been made, make 6 10 application to the department for any refund of the amount of 6 11suchthe sales or use tax which shall have been paid upon any 6 12 goods, wares or merchandise, or services rendered, furnished, 6 13 or performed,suchthe application to be made in the manner 6 14 and upon forms to be provided by the department, and the 6 15 department shall forthwith auditsuchthe claim and, if 6 16 approved, issue a warrant tosuchthe governmental unit, 6 17 educational institution, or nonprofit private museum in the 6 18 amount ofsuchthe sales or use tax which has been paid to the 6 19 state of Iowa undersuchthe contract. 6 20 Sec. 16. Section 422.45, subsection 46, Code 1999, is 6 21 amended to read as follows: 6 22 46. The gross receipts from the sale of property or of 6 23 services performed on property which thesellerretailer 6 24 transfers to a carrier for shipment to a point outside of 6 25 Iowa, places in the United States mail or parcel post directed 6 26 to a point outside of Iowa, or transports to a point outside 6 27 of Iowa by means of theseller'sretailer's own vehicles, and 6 28 which is not thereafter returned to a point within Iowa, 6 29 except solely in the course of interstate commerce or 6 30 transportation. This exemption shall not apply if the 6 31 purchaser, consumer, or their agent, other than a carrier, 6 32 takes physical possession of the property in Iowa. 6 33 Sec. 17. Section 422.47, subsection 3, paragraphs a and b, 6 34 Code 1999, are amended to read as follows: 6 35 a. The department shall issue or the seller may separately 7 1 provide exemption certificates in the form prescribed by the 7 2 director to assist retailers in properly accounting for 7 3 nontaxable sales of tangible personal property or services to 7 4 purchasers forpurposes of resale or for processing, except7 5fuel consumed in processinga nontaxable purpose. The 7 6 department shall also allow the use of exemption certificates 7 7 for those circumstances in which a sale is taxable but the 7 8 seller is not obligated to collect tax from the buyer. 7 9 b. The sales tax liability for all sales of tangible 7 10 personal property and all sales of services is upon the seller 7 11 and the purchaser unless the seller takes in good faith from 7 12 the purchaser a valid exemption certificate stating under 7 13 penalties for perjury that the purchase is forresale or for7 14processinga nontaxable purpose and is not a retail sale as 7 15 defined in section 422.42, subsection 14, or the seller is not 7 16 obligated to collect tax due, or unless the seller takes a 7 17 fuel exemption certificate pursuant to subsection 4. If the 7 18 tangible personal property or services are purchased tax free 7 19 pursuant to a valid exemption certificate which is taken in 7 20 good faith by the seller, and the tangible personal property 7 21 or services are used or disposed of by the purchaser in a 7 22 nonexempt manner, the purchaser is solely liable for the taxes 7 23 and shall remit the taxes directly to the department and 7 24 sections 422.50, 422.51, 422.52, 422.54, 422.55, 422.56, 7 25 422.57, 422.58, and 422.59 shall apply to the purchaser. 7 26 Sec. 18. Section 422.47, subsection 3, paragraph e, Code 7 27 1999, is amended to read as follows: 7 28 e. If the circumstances change and as a result the 7 29 tangible personal property or services are used or disposed of 7 30 by the purchaser in a nonexempt manner or the purchaser 7 31 becomes obligated to pay the tax, the purchaser is liable 7 32 solely for the taxes and shall remit the taxes directly to the 7 33 department in accordance with this subsection. 7 34 Sec. 19. Section 422.47, subsection 4, paragraph c, Code 7 35 1999, is amended to read as follows: 8 1 c. The purchaser may apply to the department for its 8 2 review of the fuel exemption certificate. In this event, the 8 3 department shall review the fuel exemption certificate within 8 4 twelve months from the date of application and determine the 8 5 correct amount of the exemption. If the amount determined by 8 6 the department is different than the amount that the purchaser 8 7 claims is exempt, the department shall promptly notify the 8 8 purchaser of the determination. Failure of the department to 8 9 make a determination within twelve months from the date of 8 10 application shall constitute a determination that the fuel 8 11 exemption certificate is correct as submitted. A 8 12 determination of exemption by the department is final unless 8 13 the purchaser appeals to the director for a revision of the 8 14 determination withinthirtysixty days after thepostmarkdate 8 15 of the notice of determination. The director shall grant a 8 16 hearing, and upon the hearing the director shall determine the 8 17 correct exemption and notify the purchaser of the decision by 8 18 mail. The decision of the director is final unless the 8 19 purchaser seeks judicial review of the director's decision 8 20 under section 422.55 withinthirtysixty days after the 8 21postmarkdate of the notice of the director's decision. 8 22 Unless there is a substantial change, the department shall not 8 23 impose penalties pursuant to section 422.58, both 8 24 retroactively to purchases made after the date of application 8 25 and prospectively until the department gives notice to the 8 26 purchaser that a tax or additional tax is due, for failure to 8 27 remit any tax due which is in excess of a determination made 8 28 under this section. A determination made by the department 8 29 pursuant to this subsection does not constitute an audit for 8 30 purposes of section 422.54. 8 31 Sec. 20. Section 422.50, Code 1999, is amended to read as 8 32 follows: 8 33 422.50 RECORDS REQUIRED. 8 34 It shall be the duty of every retailer required to make a 8 35reportreturn and pay any tax under this division, to preserve 9 1 those records of the grossproceeds ofreceipts from sales or 9 2 services as the director may require and it shall be the duty 9 3 of every retailer to preserve for a period of five years all 9 4 invoices and other records of goods, wares, merchandise, or 9 5 servicespurchased for resale; and all these books, invoices, 9 6 and other records shall be open to examination at any time by 9 7 the department, and shall be made available within this state 9 8 for examination upon reasonable notice when the director 9 9 orders. 9 10 Sec. 21. Section 422.52, subsection 3, unnumbered 9 11 paragraph 2, Code 1999, is amended by striking the unnumbered 9 12 paragraph. 9 13 Sec. 22. Section 422.68, subsection 4, Code 1999, is 9 14 amended to read as follows: 9 15 4. The department may make photostat, microfilm, or other 9 16 photographic copies of records, reports, and other papers 9 17 either filed by the taxpayer or prepared by the department. 9 18 In addition, the department may create and use any system of 9 19 recordkeeping reasonably calculated to preserve its records 9 20 for any time period required by law. Whensuchphotostat,or9 21 microfilm, or other copies have been made, the department may 9 22 destroysuchthe original records which are the basis for the 9 23 copies insuchany mannerasprescribed by the director.Such9 24photostat orPhotostat, microfilm, or other types of copies, 9 25 when no longer of use, may be destroyed as provided in 9 26 subsection 3.Such photostatPhotostat, microfilm, or other 9 27photographicrecords shall be admissible in evidence when duly 9 28 certified and authenticated by the officer having custody and 9 29 controlthereofof them. 9 30 Sec. 23. Section 422.72, subsection 1, unnumbered 9 31 paragraph 1, Code 1999, is amended to read as follows: 9 32 It is unlawful for the director, or any person having an 9 33 administrative duty under this chapter, or any present or 9 34 former officer or other employee of the state authorized by 9 35 the director to examine returns, to divulge in any manner 10 1 whatever, the business affairs, operations, or information 10 2 obtained by an investigation under this chapter of records and 10 3 equipment of any person visited or examined in the discharge 10 4 of official duty, or the amount or source of income, profits, 10 5 losses, expenditures or any particular thereof, set forth or 10 6 disclosed in any return, or to permit any return or copy of a 10 7 return or any book containing any abstract or particulars 10 8 thereof to be seen or examined by any person except as 10 9 provided by law. It is unlawful for any person to willfully 10 10 inspect, except as authorized by the director, any return or 10 11 return information. However, the director may authorize 10 12 examination of such state returns and other state information 10 13 which is confidential under this section, if a reciprocal 10 14 arrangement exists, by tax officers of another state or the 10 15 federal government. The director may, by rules adopted 10 16 pursuant to chapter 17A, authorize examination of state 10 17 information and returns by other officers or employees of this 10 18 state to the extent required by their official duties and 10 19 responsibilities. Disclosure of state information to tax 10 20 officers of another state is limited to disclosures which have 10 21 a tax administrative purpose and only to officers of those 10 22 states which by agreement with this state limit the disclosure 10 23 of the information as strictly as the laws of this state 10 24 protecting the confidentiality of returns and information. 10 25 The director shall place upon the state tax form a notice to 10 26 the taxpayer that state tax information may be disclosed to 10 27 tax officials of another state or of the United States for tax 10 28 administrative purposes. 10 29 Sec. 24. Section 422.110, Code 1999, is amended to read as 10 30 follows: 10 31 422.110 INCOME TAX CREDIT IN LIEU OF REFUND. 10 32 In lieu of the fuel tax refund provided insectionssection 10 33 452A.17to 452A.19, a person or corporation subject to 10 34 taxation under divisions II or III of this chapter, except10 35persons or corporations licensed under section 452A.4,may 11 1 elect to receive an income tax creditfor tax years beginning11 2on or after January 1, 1975. The person or corporation which 11 3 elects to receive an income tax credit shall cancel its refund 11 4 permit obtained under section 452A.18 within thirty days after 11 5 the first day of its tax year or the permit becomes invalid at 11 6 that time. For the purposes of this section, "person" 11 7 includes a person claiming a tax credit based upon the 11 8 person's pro rata share of the earnings from a partnership, 11 9 limited liability company, or corporation which is not subject 11 10 to a tax under division II or III of this chapter as a 11 11 partnership, limited liability company, or corporation. If 11 12 the election to receive an income tax credit has been made, it 11 13 remains effective for at least one tax year, and for 11 14 subsequent tax years unless a change is requested and a new 11 15 refund permit applied for within thirty days after the first 11 16 day of the person's or corporation's tax year. The income tax 11 17 credit shall be the amount of the Iowa fuel tax paid on fuel 11 18 purchased by the person or corporation andused as follows:is 11 19 subject to the conditions provided in section 452A.17 with the 11 20 exception that the income tax credit is not available for 11 21 refunds relating to casualty losses, transport diversions, 11 22 pumping credits, blending errors, idle time, power takeoffs, 11 23 reefer units, and exports by eligible purchasers. 11 241. Motor fuel as defined in section 452A.2, subsection 17,11 25used for the purpose of operating or propelling farm tractors,11 26corn shellers, roller mills, truck-mounted feed grinders,11 27stationary engines, for producing denatured alcohol within the11 28state, for cleaning or dyeing, or for any purpose other than11 29in watercraft or aircraft or in motor vehicles operated or11 30intended to be operated upon the public highways.11 312. Special fuel, as defined in section 452A.2, used for11 32the purpose of operation of corn shellers, roller mills, and11 33feed grinders mounted on trucks.11 343. Motor fuel placed in motor vehicles and used, other11 35than on public highways, in the extraction and processing of12 1natural deposits.12 24. Motor fuel or special fuel used by a bona fide12 3commercial fisher, licensed and operating under an owner's12 4certificate for commercial fishing gear issued pursuant to12 5section 482.4.12 6However, no credit shall be given with respect to motor12 7fuel taken out of the state in fuel supply tanks of motor12 8vehicles, motor fuel used in aircraft or watercraft, or motor12 9fuel used in the performance of a contract which is paid out12 10of state funds unless the contract for the work contains a12 11certificate made under penalty for false certificate that the12 12estimate, bid or price to be paid for the work includes no12 13amount representing motor fuel tax subject to a credit.The 12 14 right to a credit under this section is not assignable and the 12 15 credit may be claimed only by the person or corporation that 12 16 purchased the fuel. 12 17 Sec. 25. Section 422.111, unnumbered paragraph 1, Code 12 18 1999, is amended to read as follows: 12 19 The fuel tax credit may be applied against the income tax 12 20 liability of the person or corporation as determined on the 12 21 tax return filed for the year in which the fuel tax was paid. 12 22 The department shall provide forms for claiming the fuel tax 12 23 credit. If the fuel tax credit would result in an overpayment 12 24 of income tax, the person or corporation may apply for a 12 25 refund of the amount of overpayment or may have the 12 26 overpayment credited to income tax due in subsequent years. 12 27 Each person or corporation that claims a fuel tax credit shall 12 28 maintain the original invoices showing the purchase of the 12 29 fuel on which a credit is claimed.NoAn invoice is not 12 30 acceptable in support of a claim for credit unlessitthe 12 31 invoice is a separate serially numbered invoice covering no 12 32 more than one purchase of motor fuel or undyed special fuel, 12 33 prepared by the seller on a form approved by the department, 12 34nor unless itor unless the invoice is legibly written with no 12 35 corrections or erasures and shows the date of sale, the name 13 1 and address of the seller and of the purchaser, the kind of 13 2 fuel, the gallonage in figures, the per gallon price of the 13 3 fuel, the total purchase price including the Iowa fuel tax, 13 4 and that the total purchase price has been paid. However, as 13 5 to refund invoices made on a billing machine the department 13 6 may waive these requirements. If an original invoice is lost 13 7 or destroyed, the department may approve a credit supported by 13 8 a copy identified and certified by the seller as being a true 13 9 copy of the original. Each person or corporation that claims 13 10 a fuel tax credit shall maintain complete records of purchases 13 11 of motor fuel or undyed special fuel on which Iowa fuel tax 13 12 was paid, and for which a fuel tax credit is claimed. 13 13 Sec. 26. Section 422.111, unnumbered paragraph 3, Code 13 14 1999, is amended by striking the unnumbered paragraph. 13 15 Sec. 27. Section 422.121, Code 1999, is amended to read as 13 16 follows: 13 17 422.121 APPROPRIATION LIMITATION. 13 18 Beginning with the fiscal year beginning July 1, 1997, 13 19 there is appropriated annually from the general fund of the 13 20 state two million dollars to refund the credits allowed under 13 21 this division. Notwithstanding section 422.120, for tax years 13 22 beginning on or after January 1, 1997, the livestock 13 23 production tax credit shall only be allowed for cow-calf 13 24 operations. In calculating the tax credit for cow-calf 13 25 operations for tax years beginning in the 1997 calendar year, 13 26 mature beef cows bred or for breeding, bred yearling heifers, 13 27 and breeding bulls in the operations' inventory on December 31 13 28 of the tax year which were also in the operations on July 1 of 13 29 the tax year and stockers and feeders sold during the tax year 13 30 may be counted. In calculating the tax credit for cow-calf 13 31 operations for tax years beginning on or after January 1, 13 32 1998, only those bred cows, bred heifers, and breeding bulls 13 33 in the operations' inventory on December 31 of the tax year 13 34 which were also in the operations on July 1 of the tax year 13 35 may be counted. 14 1 Sec. 28. Section 422B.10, subsection 2, paragraph c, Code 14 2 1999, is amended to read as follows: 14 3 c. The director of revenue and finance shall remit a final 14 4 payment of the remainder of tax moneys due the city or county 14 5 for the fiscal year before November 10 of the next fiscal 14 6 year. If an overpayment has resulted during the previous 14 7 fiscal year, thefirstNovember paymentof the new fiscal year14 8 shall be adjusted to reflect any overpayment. 14 9 Sec. 29. Section 422D.3, unnumbered paragraph 4, Code 14 10 1999, is amended to read as follows: 14 11 The director, in consultation with local officials, shall 14 12 collect and account for a local income surtax and any interest 14 13 and penalties. The director shall credit local income surtax 14 14 receipts and any interest and penalties collected from returns 14 15 filed on or before November 1 of the calendar year following 14 16 the tax year for which the local income surtax is imposed to a 14 17 "local income surtax fund" established in theoffice of the14 18treasurer of statedepartment of revenue and finance. All 14 19 local income surtax receipts and any interest and penalties 14 20 received or refunded from returns filed after November 1 of 14 21 the calendar year following the tax year for which the local 14 22 income surtax is imposed shall be deposited in or withdrawn 14 23 from the state general fund and shall be considered part of 14 24 the cost of administering the local income surtax. 14 25 Sec. 30. Section 424.10, subsections 2 and 3, Code 1999, 14 26 are amended to read as follows: 14 27 2. If a return required by this chapter is not filed, or 14 28 if a return when filed is incorrect or insufficient and the 14 29 maker fails to file a corrected or sufficient return within 14 30 twenty days after the return is required by notice from the 14 31 department, the department shall determine the amount of 14 32 charge due from information as the department may be able to 14 33 obtain and, if necessary, may estimate the charge on the basis 14 34 of external indices or factors. The department shall give 14 35 notice of the determination to the person liable for the 15 1 charge. The determination shall fix the charge unless the 15 2 person against whom it is assessed shall, within sixty days 15 3 after thegiving ofdate of the notice of the determination, 15 4 apply to the director for a hearing or unless the taxpayer 15 5 contests the determination by paying the tax, interest, and 15 6 penalty and timely filing a claim for refund. At the hearing 15 7 evidence may be offered to support the determination or to 15 8 prove that it is incorrect. After the hearing the director 15 9 shall give notice of the decision to the person liable for the 15 10 charge. 15 11 If a depositor's, receiver's, or other person's challenge 15 12 relates to the diminution rate, the burden of proof upon the 15 13 challenger shall only be satisfied by clear and convincing 15 14 evidence. 15 15 3. If the amount paid is greater than the correct charge, 15 16 penalty, and interest due, the department shall refund the 15 17 excess, with interest after sixty days from the date of 15 18 payment at the rate in effect under section 421.7, pursuant to 15 19 rules prescribed by the director. However, the director shall 15 20 not allow a claim for refund that has not been filed with the 15 21 department within five years after the charge payment upon 15 22 which a refund is claimed became due, or one year after the 15 23 charge payment was made, whichever time is later. A 15 24 determination by the department of the amount of charge, 15 25 penalty, and interest due, or the amount of refund for any 15 26 excess amount paid, is final unless the person aggrieved by 15 27 the determination appeals to the director for a revision of 15 28 the determination withinthirtysixty days from thepostmark15 29 date of the notice of determination of charge, penalty, and 15 30 interest due or refund owing. The director shall grant a 15 31 hearing, and upon hearing the director shall determine the 15 32 correct charge, penalty, and interest due or refund owing, and 15 33 notify the appellant of the decision by mail. The decision of 15 34 the director is final unless the appellant seeks judicial 15 35 review of the director's decision under section 424.13. 16 1 Sec. 31. Section 427.1, subsection 14, unnumbered 16 2 paragraph 1, Code 1999, is amended to read as follows: 16 3 A society or organization claiming an exemption under 16 4 subsection 5 or subsection 8of this sectionshall file with 16 5 the assessor not later thanJuly 1April 15 a statement upon 16 6 forms to be prescribed by the director of revenue and finance, 16 7 describing the nature of the property upon which the exemption 16 8 is claimed and setting out in detail any uses and income from 16 9 the property derived from the rentals, leases, or other uses 16 10 of the property not solely for the appropriate objects of the 16 11 society or organization. Upon the filing and allowance of the 16 12 claim, the claim shall be allowed on the property for 16 13 successive years without further filing as long as the 16 14 property is used for the purposes specified in the original 16 15 claim for exemption. When the property is sold or 16 16 transferred, the county recorder shall provide notice of the 16 17 transfer to the assessor. The notice shall describe the 16 18 property transferred and the name of the person to whom title 16 19 to the property is transferred. 16 20 Sec. 32. Section 427.1, subsection 24, Code 1999, is 16 21 amended to read as follows: 16 22 24. LAND CERTIFIED AS A WILDLIFE HABITAT. The owner of 16 23 agricultural land may designate not more than two acres of the 16 24 land for use as a wildlife habitat. After inspection, if the 16 25 land meets the standards established by the natural resource 16 26 commission for a wildlife habitat under section 483A.3, the 16 27 department of natural resources shall certify the designated 16 28 land as a wildlife habitat and shall send a copy of the 16 29 certification to the appropriate assessor not later than 16 30 February 1 of the assessment year for which the exemption is 16 31 requested. The department of natural resources may 16 32 subsequently withdraw certification of the designated land if 16 33 it fails to meet the established standards for a wildlife 16 34 habitat and the assessor shall be given written notice of the 16 35 decertification. 17 1 Sec. 33. Section 428.1, unnumbered paragraph 1, Code 1999, 17 2 is amended to read as follows: 17 3 Every person shall list for the assessor all property 17 4 subject to taxation in the state, of which the person is the 17 5 owner, or has the control or management,in the following17 6mannerincluding but not limited to the following: 17 7 Sec. 34. Section 429.2, subsection 1, Code 1999, is 17 8 amended to read as follows: 17 9 1. Notwithstanding the provisions of chapter 17A, the 17 10 taxpayer shall have thirty days from the dateof postmarkof 17 11 the notice of assessment to appeal the assessment to the state 17 12 board of tax review. Thereafter, the proceedings before the 17 13 state board of tax review shall conform to the provisions of 17 14 subsection 2, section 421.1, subsection 4, and chapter 17A. 17 15 Sec. 35. Section 450.22, Code 1999, is amended to read as 17 16 follows: 17 17 450.22 ADMINISTRATION AVOIDED INHERITANCE TAX DUTIES 17 18 REQUIRED. 17 19 When the heirs or persons entitled to inherit the property 17 20 of an estate subject to tax under this chapter desire to avoid 17 21 the appointment of a personal representative as provided in 17 22 section 450.21, and in all instances where real estate is 17 23 involved and there are no regular probate proceedings, they or 17 24 one of them shall file under oath the inventories required by 17 25 section 633.361 and the required reports, perform all the 17 26 duties required by this chapter of the personal 17 27 representative, and file the inheritance tax return. However, 17 28 this section does not apply and a return is not required even 17 29 though real estate is part of the assets subject to tax under 17 30 this chapter, if all of the assets are held in joint tenancy 17 31 with right of survivorship between husband and wife alone, or 17 32 if the estate exclusively consists of property held in joint 17 33 tenancy with the right of survivorship solely by the decedent 17 34 and any individuals listed in section 450.9 as individuals 17 35 that are entirely exempt from Iowa inheritance tax and the 18 1 estate does not have a federal estate tax obligation. When 18 2 this section applies, proceedings for the collection of the 18 3 tax when a personal representative is not appointed, shall 18 4 conform as nearly as possible to proceedings under this 18 5 chapter in other cases. 18 6 Sec. 36. Section 450.37, Code 1999, is amended by adding 18 7 the following new subsection: 18 8 NEW SUBSECTION. 3. In addition to the applicable period 18 9 of limitation for examination and determination, the 18 10 department shall make an examination to adjust the value of 18 11 real property for Iowa inheritance tax purposes to the value 18 12 accepted by the internal revenue service for federal estate 18 13 tax purposes. The department shall make an examination and 18 14 adjustment for the value of the real property at any time 18 15 within six months from the date of receipt by the department 18 16 of written notice from the personal representative for the 18 17 estate that all federal estate tax matters between the estate 18 18 and the internal revenue service have been concluded. To 18 19 begin the running of the six-month period, the notice shall be 18 20 in writing in a form sufficient to inform the department of 18 21 the final disposition of the federal estate tax obligation 18 22 with the internal revenue service and a copy of the federal 18 23 document showing the final disposition and final federal 18 24 adjustments of all real property values must be attached. The 18 25 department shall make an adjustment to the value of real 18 26 property for inheritance tax purposes to the value accepted 18 27 for federal estate tax purposes regardless of whether an 18 28 inheritance clearance has been issued, an appraisal has been 18 29 obtained on the real property indicating a contrary value, 18 30 whether there has been an acceptance of another value for real 18 31 property by the department, or whether an agreement has been 18 32 entered into by the department and the personal representative 18 33 for the estate and persons having an interest in the real 18 34 property regarding the value of the real property. 18 35 Notwithstanding the period of limitation specified in section 19 1 450.94, subsection 3, the personal representative for the 19 2 estate shall have six months from the day of final disposition 19 3 of any real property valuation matter between the personal 19 4 representative for the estate and the internal revenue service 19 5 to claim a refund of an overpayment of tax due to the change 19 6 in the valuation of real property by the internal revenue 19 7 service. 19 8 Sec. 37. Section 450.94, subsections 2 and 3, Code 1999, 19 9 are amended to read as follows: 19 10 2. The taxpayer shall file an inheritance tax return on 19 11 forms to be prescribed by the director of revenue and finance 19 12 on or before the last day of the ninth month after the death 19 13 of the decedent. When an inheritance tax return is filed, the 19 14 department shall examine it and determine the correct amount 19 15 of tax. If the amount paid is less than the correct amount 19 16 due, the department shall notify the taxpayer of the total 19 17 amount due together with any penalty and interest which shall 19 18 be a sum certain if paid on or before the last day of the 19 19 month in which the notice ispostmarkeddated, or on or before 19 20 the last day of the following month if the notice is 19 21postmarkeddated after the twentieth day of a month and before 19 22 the first day of the following month. 19 23 3. If the amount paid is greater than the correct tax, 19 24 penalty, and interest due, the department shall refund the 19 25 excess with interest. Interest shall be computed at the rate 19 26 in effect under section 421.7, under the rules prescribed by 19 27 the director counting each fraction of a month as an entire 19 28 month and the interest shall begin to accrue on the first day 19 29 of the second calendar month following the date of payment or 19 30 on the date the return was due to be filed or was filed, 19 31 whichever is the latest. However, the director shall not 19 32 allow a claim for refund or credit that has not been filed 19 33 with the department within three years after the tax payment 19 34 upon which a refund or credit is claimed became due, or one 19 35 year after the tax payment was made, whichever time is later. 20 1 A determination by the department of the amount of tax, 20 2 penalty, and interest due, or the amount of refund for excess 20 3 tax paid, is final unless the person aggrieved by the 20 4 determination appeals to the director for a revision of the 20 5 determination within sixty days from thepostmarkdate of the 20 6 notice of determination of tax, penalty, and interest due or 20 7 refund owing or unless the taxpayer contests the determination 20 8 by paying the tax, interest, and penalty and timely filing a 20 9 claim for refund. The director shall grant a hearing, and 20 10 upon the hearing the director shall determine the correct tax, 20 11 penalty, and interest or refund due, and notify the appellant 20 12 of the decision by mail. The decision of the director is 20 13 final unless the appellant seeks judicial review of the 20 14 director's decision under section 450.59 within sixty days 20 15 after thepostmarkdate of the notice of the director's 20 16 decision. 20 17 Sec. 38. Section 451.12, Code 1999, is amended to read as 20 18 follows: 20 19 451.12 APPLICABLE STATUTES PENALTIES. 20 20 All the provisions of chapter 450 with respect to the lien 20 21 provisions of section 450.7, and the determination, 20 22 imposition, payment, and collection of the tax imposed under 20 23 that chapter, including penalty and interest upon delinquent 20 24 taxes and the confidentiality of the tax return, are 20 25 applicable to this chapter, except as they are in conflict 20 26 with this chapter. The exceptions to the lien provisions 20 27 found in section 450.7 do not apply to this chapter. The 20 28 penalty provisions set out in section 450.53 shall apply to a 20 29 person in possession of assets to be reported for purposes of 20 30 taxation who willfully makes a false or fraudulent return or 20 31 willfully fails to pay the tax, supply the information, make, 20 32 sign, or file the required return within the time required by 20 33 law or a person who willfully attempts in any manner to evade 20 34 taxes imposed by this chapter or avoid payment of the tax. 20 35 The director of revenue and finance shall adopt rules 21 1 necessary for the enforcement of this chapter. 21 2 Sec. 39. Section 452A.2, subsection 11, Code 1999, is 21 3 amended to read as follows: 21 4 11. "Exporter" means a person or other entity who acquires 21 5 fuel in this stateexclusivelyfor export to another state. 21 6 Sec. 40. Section 452A.2, subsection 17, paragraph a, Code 21 7 1999, is amended to read as follows: 21 8 a. All products commonly or commercially known or sold as 21 9 gasoline,(including casinghead and absorption or natural 21 10 gasoline), regardless of their classifications or uses, and 21 11 including transmix which serves as a buffer between fuel 21 12 products in the pipeline distribution process. 21 13 Sec. 41. Section 452A.3, subsection 5, paragraph b, Code 21 14 1999, is amended to read as follows: 21 15 b. The person who ownsor causesthe fuelto beat the 21 16 time it is brought into the state by a restrictive supplier or 21 17 importer, upon the invoiced gross gallonage of motor fuel or 21 18 undyed special fuel imported. 21 19 Sec. 42. Section 452A.8, subsection 1, unnumbered 21 20 paragraph 1, Code 1999, is amended to read as follows: 21 21 For the purpose of determining the amount of the 21 22 supplier's, restrictive supplier's, or importer's tax 21 23 liability, a supplier or restrictive supplier shall file a 21 24 return, not later than the last day of the month following the 21 25 month in which this division becomes effective and not later 21 26 than the last day of each calendar month thereafter, and an 21 27 importer shall file areportreturn semi-monthly with the 21 28 department, signed under penalty for false certification. For 21 29 an importer for the reporting period from the first day of the 21 30 month through the fifteenth of the month, thereportreturn is 21 31 due on the last day of the month. For an importer for the 21 32 reporting period from the sixteenth of the month through the 21 33 last day of the month, thereportreturn is due on the 21 34 fifteenth day of the following month. Thereportsreturns 21 35 shall include the following: 22 1 Sec. 43. Section 452A.8, subsection 2, unnumbered 22 2 paragraph 1, Code 1999, is amended to read as follows: 22 3 At the time of filing areportreturn, a supplier or 22 4 restrictive supplier shall pay to the department the full 22 5 amount of the fuel tax due for the preceding calendar month. 22 6 An importer shall pay to the department the full amount of 22 7 fuel tax due for the preceding semimonthly period. The tax 22 8 shall be computed as follows: 22 9 Sec. 44. Section 452A.8, subsection 2, paragraph d, Code 22 10 1999, is amended to read as follows: 22 11 d. The director may require by rule that reports and 22 12 returns be filed by electronic transmission. 22 13 Sec. 45. Section 452A.8, subsection 3, Code 1999, is 22 14 amended to read as follows: 22 15 3. For the purpose of determining the amount of the tax 22 16 liability on alcohol blended to produce ethanol blended 22 17 gasoline, each licensed blender shall, not later than the last 22 18 day of each month following the month in which the blending is 22 19 done, file with the department a monthlyreportreturn, signed 22 20 under penalty for false certificate, containing information 22 21 required by rules adopted by the director. 22 22 Sec. 46. Section 452A.9, Code 1999, is amended to read as 22 23 follows: 22 24 452A.9REPORTRETURNS FROM PERSONS NOT LICENSED AS 22 25 SUPPLIERS, RESTRICTIVE SUPPLIERS, OR IMPORTERS. 22 26 Every person other than a licensed supplier, restrictive 22 27 supplier, or importer, who purchases, brings into this state, 22 28 or otherwise acquires within this state motor fuel or undyed 22 29 special fuel, not otherwise exempted, which the person has 22 30 knowingly not paid or incurred liability to pay either to a 22 31 licensee or to a dealer the motor fuel or special fuel tax, 22 32 shall be subject to the provisions of this division that apply 22 33 to suppliers, restrictive suppliers, and importers of motor 22 34 fuel or undyed special fuel and shallmakefile the same 22 35reportsreturns and make the same tax payments and be subject 23 1 to the same penalties for delinquentreporting or nonreporting23 2 filing or nonfiling or delinquent payment or nonpayment as 23 3 apply to suppliers, restrictive suppliers, and importers. 23 4 Sec. 47. Section 452A.15, subsection 3, Code 1999, is 23 5 amended to read as follows: 23 6 3. The reports required in this section shall be for 23 7 information purposes only and the department may in its 23 8 discretion waive the filing of any of these reports not 23 9 necessary for proper administration of this division. The 23 10 reports required in this section shall be certified under 23 11 penalty for false certificate and filed with the department 23 12 within the time allowed for filing of suppliers' and 23 13 restrictive suppliers'reportsreturns of motor fuel or 23 14 special fuel withdrawn from a terminal within this state or 23 15 imported into this state. 23 16 Sec. 48. Section 452A.17, subsection 1, paragraph a, 23 17 subparagraphs (4) and (6), Code 1999, are amended to read as 23 18 follows: 23 19 (4) Fuel used in unlicensed vehicles, stationary engines, 23 20andimplements used in agricultural production, and machinery 23 21 and equipment used for nonhighway purposes. 23 22 (6) Fuel used for idle time, power takeoffs, reefer units, 23 23 pumping credits, and transport diversions, fuel lost through 23 24 casualty, exports byeligible purchasersdistributors, and 23 25 blending errors for special fuel. The department shall adopt 23 26 rules setting forth specific requirements relating to refunds 23 27 for idle time, power takeoffs, reefer units, pumping credits, 23 28 and transport diversions, fuel lost through casualty, and 23 29 blending errors for special fuel. 23 30 Sec. 49. Section 452A.17, subsection 1, paragraph b, 23 31 subparagraphs (4) and (5), Code 1999, are amended to read as 23 32 follows: 23 33 (4) The claim shall state the gallonage of motor fuelor23 34undyed special fuelthat was used or will be used by the 23 35 claimant other than in aircraft, watercraft, or to propel 24 1 motor vehicles and the gallonage of undyed special fuel that 24 2 was or will be used by the claimant other than in aircraft or 24 3 to propel motor vehicles, the manner in which the motor fuel 24 4 or undyed special fuel was used or will be used, and the 24 5 equipment in which it was used or will be used. 24 6 (5) The claim shall state whether the claimant used fuel 24 7 for aircraft, watercraft, or to propel motor vehicles from the 24 8 same tanks or receptacles in which the claimant kept the motor 24 9 fuelor undyed special fuelon which the refund is claimed or 24 10 whether the claimant used fuel for aircraft or to propel motor 24 11 vehicles from the same tanks or receptacles in which the 24 12 claimant kept the undyed special fuel on which the refund is 24 13 claimed. 24 14 Sec. 50. Section 452A.17, subsection 2, Code 1999, is 24 15 amended to read as follows: 24 16 2. In lieu of the refund provided in this section, a 24 17 person may receive an income tax credit as provided in chapter 24 18 422, division IX, but only as to motor fuelor undyed special24 19fuelnot used in motor vehicles, aircraft, or watercraft or as 24 20 to undyed special fuel not used in motor vehicles or aircraft. 24 21 Sec. 51. Section 452A.17, subsection 3, paragraph b, Code 24 22 1999, is amended to read as follows: 24 23 b. A refund shall not be paid with respect to any motor 24 24 fuelor undyed special fueltaken out of this state in supply 24 25 tanks of watercraft, aircraft, or motor vehicles or with 24 26 respect to any undyed special fuel taken out of this state in 24 27 supply tanks of aircraft or motor vehicles. 24 28 Sec. 52. Section 452A.17, subsection 3, paragraph c, Code 24 29 1999, is amended by striking the paragraph. 24 30 Sec. 53. Section 452A.21, unnumbered paragraph 1, Code 24 31 1999, is amended to read as follows: 24 32 Persons not licensed under this division who blend motor 24 33 fuel and alcohol to produce ethanol blended gasoline may file 24 34 for a refund for the difference between taxes paid on the 24 35 motor fuel purchased to produce ethanol blended gasoline and 25 1 the tax due on the ethanol blended gasoline blended. If, 25 2 during any month, a person licensed under this division uses 25 3 tax paid motor fuel to blend ethanol blended gasoline and the 25 4 refund otherwise due under this section is greater than the 25 5 licensee's total tax liability for that month, the licensee is 25 6 entitled to a credit. The claim for credit shall be filed as 25 7 part of thereportreturn required by section 452A.8. 25 8 Sec. 54. Section 452A.21, unnumbered paragraph 3, Code 25 9 1999, is amended to read as follows: 25 10 A refund shall not be issued unless the claim is filed 25 11 withinninety daysone year following the end of the month 25 12 during which the ethanol blended gasoline was actually 25 13 blended. An income tax credit is not allowed under this 25 14 section. 25 15 Sec. 55. NEW SECTION. 452A.22 TAX COLLECTED ON EXEMPT 25 16 FUEL. 25 17 If an amount of tax represented by a licensee to a 25 18 purchaser as constituting tax due is computed upon gallonage 25 19 that is not taxable or the amount represented is in excess of 25 20 the actual amount of tax due and the amount represented is 25 21 actually paid by the purchaser to the licensee, the excess 25 22 amount of tax paid shall be returned to the purchaser by the 25 23 licensee. If the licensee fails to return the excess tax paid 25 24 to the purchaser, the amount which the purchaser has paid to 25 25 the licensee shall be remitted by the licensee to the 25 26 department. 25 27 Sec. 56. Section 452A.60, unnumbered paragraph 1, Code 25 28 1999, is amended to read as follows: 25 29 The department of revenue and finance or the state 25 30 department of transportation shall prescribe and furnish all 25 31 forms, as applicable, upon which reports, returns, and 25 32 applications shall be made and claims for refund presented 25 33 under this chapter and may prescribe forms of record to be 25 34 kept by suppliers, restrictive suppliers, importers, 25 35 exporters, blenders, common carriers, contract carriers, 26 1 licensed compressed natural gas and liquefied petroleum gas 26 2 dealers and users, terminal operators, and interstate 26 3 commercial motor vehicle operators. 26 4 Sec. 57. Section 452A.61, Code 1999, is amended to read as 26 5 follows: 26 6 452A.61 TIMELY FILING OF REPORTS AND RETURNS EXTENSION. 26 7 The reports, returns, and remittances required under this 26 8 chapter shall be deemed filed within the required time if 26 9 postpaid, properly addressed and postmarked on or before 26 10 midnight of the day on which due and payable. If the final 26 11 filing date falls on a Saturday, Sunday or legal holiday the 26 12 next secular or business day shall be the final filing date. 26 13 The department of revenue and finance or the state 26 14 department of transportation upon application may grant a 26 15 reasonable extension of time for the filing of any required 26 16 report, return, or tax payment, or both. 26 17 Sec. 58. Section 452A.63, Code 1999, is amended to read as 26 18 follows: 26 19 452A.63 INFORMATION CONFIDENTIAL. 26 20 All information obtained by the department of revenue and 26 21 finance or the state department of transportation from the 26 22 examining of reports, returns, or records required to be filed 26 23 or kept under this chapter shall be treated as confidential 26 24 and shall not be divulged except to other state officers, a 26 25 member or members of the general assembly, or any duly 26 26 appointed committee of either or both houses of the general 26 27 assembly, or to a representative of the state having some 26 28 responsibility in connection with the collection of the taxes 26 29 imposed or in proceedings brought underthe provisions ofthis 26 30 chapter. The appropriate state agency may make available to 26 31 the public on or before forty-five days following the last day 26 32 of the month in which the tax is required to be paid, the 26 33 names of suppliers, restrictive suppliers, and importers and 26 34 as to each of them the total gallons of motor fuel, undyed 26 35 special fuel, and ethanol-blended gasoline withdrawn from 27 1 terminals or imported into the state during that month. The 27 2 department of revenue and finance or the state department of 27 3 transportation, upon request of officials entrusted with 27 4 enforcement of the motor vehicle fuel tax laws of the federal 27 5 government or any other state, may forward tosuchthese 27 6 officials any pertinent information which the appropriate 27 7 state agency may have relative to motor fuel and special fuel 27 8 provided the officials of the other state furnish like 27 9 information. 27 10 Any person violatingthe provisions ofthis section, and 27 11 disclosing the contents of any records, returns, or reports 27 12 required to be kept or made underthe provisions ofthis 27 13 chapter, except as otherwise provided, shall be guilty of a 27 14 simple misdemeanor. 27 15 Sec. 59. Section 452A.67, Code 1999, is amended to read as 27 16 follows: 27 17 452A.67 LIMITATION ON COLLECTION PROCEEDINGS. 27 18 The department shall examine the return and enforce 27 19 collection of any amount of tax, penalty, fine, or interest 27 20 over and above the amount shown to be due byreportsthe 27 21 return filed by a licensee as soon as practicable but no later 27 22 than three years after the return is filed. An assessment 27 23 shall not be made covering a period beyond three years after 27 24 the return is filed except that the period for the examination 27 25 and determination of the correct amount of tax is unlimited in 27 26 the case of a false or fraudulent return made with the intent 27 27 to evade tax or in the case of a failure to file a return. 27 28 The three-year period of limitation may be extended by a 27 29 taxpayer by signing a waiver agreement form to be provided by 27 30 the department. The agreement must stipulate the period of 27 31 extension and the tax period to which the extension applies. 27 32 The agreement must also provide that a claim for refund may be 27 33 filed by the taxpayer at any time during the period of 27 34 extension. 27 35 Sec. 60. Section 452A.68, unnumbered paragraph 1, Code 28 1 1999, is amended to read as follows: 28 2 If a licensee files a falsereportreturn of the data or 28 3 information required by this chapter, or fails, refuses, or 28 4 neglects to file areportreturn required by this chapter, or 28 5 to pay the full amount of fuel tax as required by this 28 6 chapter, or is substantially delinquent in paying a tax due, 28 7 owing, and administered by the department of revenue and 28 8 finance, and interest and penalty if appropriate, or if the 28 9 person is a corporation and if any officer having a 28 10 substantial legal or equitable interest in the ownership of 28 11 the corporation owes any delinquent tax of the licensee 28 12 corporation, or interest or penalty on the tax, administered 28 13 by the department, then after ten days' written notice by mail 28 14 directed to the last known address of the licensee setting a 28 15 time and place at which the licensee may appear and show cause 28 16 why the license should not be canceled, and if the licensee 28 17 fails to appear or if upon the hearing it is shown that the 28 18 licensee failed to correctly report or pay the tax, the 28 19 appropriate state agency may cancel the license and shall 28 20 notify the licensee of the cancellation by mail to the 28 21 licensee's last known address. 28 22 Sec. 61. Section 452A.74A, subsection 7, Code 1999, is 28 23 amended to read as follows: 28 24 7. FALSE OR FRAUDULENT REPORT OR RETURN. Any person, 28 25 including an officer of a corporation or a manager of a 28 26 limited liability company, who is required to make, render, 28 27 sign, or verify any report or return required by this chapter 28 28 and who makes a false or fraudulent report or return, or who 28 29 fails to file a report or return with the intent to evade the 28 30 tax, shall be guilty of a fraudulent practice. Any person who 28 31 aids, abets, or assists another person in making any false or 28 32 fraudulent report or return or false statement in any report 28 33 or return with the intent to evade payment of tax shall be 28 34 guilty of a fraudulent practice. 28 35 Sec. 62. Section 452A.86, Code 1999, is amended to read as 29 1 follows: 29 2 452A.86 METHOD OF DETERMINING GALLONAGE. 29 3 The exclusive method of determining gallonage of any 29 4 purchases or sales of motor fuel, undyed special fuel, 29 5 compressed natural gas, or liquefied petroleum gas as defined 29 6 in this chapter and distillate fuels shall be on a gross 29 7 volume basis. A temperature-adjusted or other method shall 29 8 not be used, except as it applies to liquefied petroleum gas 29 9 and the sale or exchange of petroleum products between 29 10 petroleum refiners. All invoices, bills of lading, or other 29 11 records of sale or purchase and allreportsreturns or records 29 12 required to be made, kept, and maintained by a supplier, 29 13 restrictive supplier, importer, exporter, blender, or 29 14 compressed natural gas or liquefied petroleum gas dealer or 29 15 user shall be made, kept, and maintained on the gross volume 29 16 basis. For purposes of this section, "distillate fuels" means 29 17 any fuel oil, gas oil, topped crude oil, or other petroleum 29 18 oils derived by refining or processing crude oil or unfinished 29 19 oils which have a boiling range at atmospheric pressure which 29 20 falls completely or in part between five hundred fifty and 29 21 twelve hundred degrees Fahrenheit. 29 22 Sec. 63. Section 453A.6, subsection 3, Code 1999, is 29 23 amended to read as follows: 29 24 3. Payment ofsuchthe tax shall be evidenced by stamps 29 25 purchased from the department by a distributor or manufacturer 29 26 and securely affixed to each individual package of cigarettes 29 27 in amounts equal to the taxthereonas imposed by this 29 28 chapter, or by the impressing of an indicium upon individual 29 29 packages of cigarettes, under regulations prescribed by the 29 30 director. 29 31 Sec. 64. Section 453A.6, Code 1999, is amended by adding 29 32 the following new subsections: 29 33 NEW SUBSECTION. 4. Any other person who purchases or is 29 34 in possession of unstamped cigarettes shall pay the tax 29 35 directly to the department. 30 1 NEW SUBSECTION. 5. The per cigarette amount of the tax 30 2 shall be added to the selling price of every package of 30 3 cigarettes sold in this state and shall be collected from the 30 4 purchaser so that the ultimate consumer bears the burden of 30 5 the tax. 30 6 Sec. 65. Section 453A.8, subsection 1, Code 1999, is 30 7 amended to read as follows: 30 8 1. Stamps shall be sold by and purchased from the 30 9 department. The department shall sell stamps to the holder of 30 10 a state distributor's or manufacturer's permit which has not 30 11 been revoked and to no other person. Stamps shall be sold to 30 12 the permit holders at a discount of two percent of the face 30 13 value. Stamps shall be sold inunbroken books of one thousand30 14stamps,unbroken rolls of thirty thousand stamps,or unbroken 30 15 lots of any other form authorized by the director. 30 16 Sec. 66. Section 453A.15, subsections 1, 3, 4, and 6, Code 30 17 1999, are amended to read as follows: 30 18 1. The director may prescribe the forms necessary for the 30 19 efficient administration of this division and may require 30 20 uniform books and records to be used and kept by each permit 30 21 holder or other person as deemed necessary. The director may 30 22 also require each permit holder or other person to keep and 30 23 retain in the director's possession evidence on prescribed 30 24 forms of all transactions involving the purchase and sale of 30 25 cigarettes or the purchase and use of stamps. The evidence 30 26 shall be kept for a period of two years from the date of each 30 27 transaction, for the inspection at all times by the 30 28 department. 30 29 3. The director may by regulation require every holder of 30 30 a manufacturer's or state permit or other person to make and 30 31 deliver to the department on or before the tenth day of each 30 32 month a report or reports for the preceding calendar month, 30 33 upon a form or forms prescribed by the director, and may 30 34 require thatsuchthe reports shall be properly sworn to and 30 35 executed by the permit holder or the holder's duly authorized 31 1 representative or other person. 31 2 4. Every permit holder or other person shall, when 31 3 requested by the department, makesuchadditional reports as 31 4 the department deems necessary and proper and shall at the 31 5 request of the department furnish full and complete 31 6 information pertaining to any transaction of the permit holder 31 7 or other person involving the purchase or sale or use of 31 8 cigarettes or purchase of cigarette stamps. 31 9 6. If any distributor, manufacturer, or other person fails 31 10 or refuses to pay any tax, penalties, or cost of audit 31 11 hereinafter provided, and it becomes necessary to bring suit 31 12 or to intervene in any manner for the establishment or 31 13 collection of said claims, in any judicial proceedings, any 31 14 report filed in the office of the director bysuchthe 31 15 distributor, manufacturer, or other person, or the 31 16 distributor's, manufacturer's, or other person's 31 17 representative, or a copy thereof, certified to by the 31 18 director, showing the number of cigarettes sold bysuchthe 31 19 distributor,orthe distributor's representative, the 31 20 manufacturer, or the other person, upon whichsucha tax, 31 21 penalty, or cost of audit has not been paid, or any audit made 31 22 by the department from the books or records ofsaidthe 31 23 distributor, manufacturer, or other person when signed and 31 24 sworn to by the agent of the department making the audit as 31 25 being made from the records ofsaidthe distributor, 31 26 manufacturer, or other person from or to whomsuchthe 31 27 distributor, manufacturer, or other person has bought, 31 28 received, or delivered cigarettes, whether from a 31 29 transportation company or otherwise, such report or audit 31 30 shall be admissible in evidence in such proceedings and shall 31 31 be prima facie evidence of the contents thereof; provided,31 32however, that. However, the incorrectness ofsaidthe report 31 33 or audit may be shown. 31 34 Sec. 67. Section 453A.16, Code 1999, is amended to read as 31 35 follows: 32 1 453A.16 MANUFACTURER'S PERMIT. 32 2 The department may, upon application of any manufacturer, 32 3 issue without charge tosuchthe manufacturer a manufacturer's 32 4 permit.SuchThe application shall containsuchinformation 32 5 as the director shall prescribe. The holder ofsucha 32 6 manufacturer's permitshall beis authorized to purchase 32 7 stamps from the department, andtomust affixsuchstamps to 32 8 individual packages of cigarettes outside of this state, prior 32 9 to their shipment into the state unless the cigarettes are 32 10 shipped to an Iowa permitted distributor or an Iowa permitted 32 11 distributor's agent. 32 12 Sec. 68. Section 453A.28, Code 1999, is amended to read as 32 13 follows: 32 14 453A.28 ASSESSMENT OF TAX BY DEPARTMENT INTEREST 32 15 PENALTY. 32 16 If after any audit, examination of records, or other 32 17 investigation the department finds that any person has sold 32 18 cigarettes without stamps affixedtheretoor that any person 32 19 responsible for paying the tax has not done so as required by 32 20 this division, the department shall fix and determine the 32 21 amount of tax due, and shall assess the tax against the 32 22 person, together with a penalty as provided in section 421.27. 32 23 The taxpayer shall pay interest on the tax or additional tax 32 24 at the rate determined under section 421.7 counting each 32 25 fraction of a month as an entire month, computed from the date 32 26 the tax was due. If any person fails to furnish evidence 32 27 satisfactory to the director showing purchases of sufficient 32 28 stamps to stamp unstamped cigarettes purchased by the person, 32 29 the presumption shall be that the cigarettes were sold without 32 30 the proper stamps affixedthereto. Within two years after the 32 31returnreport is filed or within two years after thereturn32 32 report became due, whichever is later, the department shall 32 33 examine thereturnreport and determine the correct amount of 32 34 tax. The period for examination and determination of the 32 35 correct amount of tax is unlimited in the case of a false or 33 1 fraudulent report made with the intent to evade tax, or in the 33 2 case of a failure to file a report, or if a person purchases 33 3 or is in possession of unstamped cigarettes. 33 4 The two-year period of limitation may be extended by a 33 5 taxpayer by signing a waiver agreement form to be provided by 33 6 the department. The agreement must stipulate the period of 33 7 extension and the tax period to which the extension applies. 33 8 The agreement must also provide that a claim for refund may be 33 9 filed by the taxpayer at any time during the period of 33 10 extension. 33 11 Sec. 69. Section 453A.29, Code 1999, is amended to read as 33 12 follows: 33 13 453A.29 NOTICE AND APPEAL. 33 14 The department shall notify any person assessed pursuant to 33 15 section 453A.28 by sending a written notice of the 33 16 determination by mail to the principal place of business of 33 17 the person as shown on the person's application for permit, 33 18 and if an application was not filed by the person, to the 33 19 person's last known address. A determination by the 33 20 department of the amount of tax, penalty, and interest due, or 33 21 the amount of refund for excess tax paid, is final, unless the 33 22 person aggrieved by the determination appeals to the director 33 23 for a revision of the determination within sixty days from the 33 24postmarkdate of the notice of determination of tax, penalty, 33 25 and interest or refund owing or unless the taxpayer contests 33 26 the determination by paying the tax, interest, and penalty and 33 27 timely filing a claim for refund. The director shall grant a 33 28 hearing and upon the hearing, the director shall determine the 33 29 correct tax, penalty, and interest or refund due and notify 33 30 the appellant of the decision by mail. Judicial review of 33 31 action of the director may be sought in accordance with the 33 32 Iowa administrative procedure Act and section 422.29. 33 33 Sec. 70. Section 453A.31, Code 1999, is amended by 33 34 striking the section and inserting in lieu thereof the 33 35 following: 34 1 453A.31 CIVIL PENALTY FOR CERTAIN VIOLATIONS. 34 2 If a permit holder fails to keep any of the records 34 3 required to be kept by the provisions of this division, or 34 4 sells cigarettes upon which a tax is required to be paid by 34 5 this division without at the time having a valid permit, or if 34 6 a distributor, wholesaler, manufacturer, or distributing agent 34 7 fails to make reports to the department as required, or makes 34 8 a false or incomplete report to the department, or if a 34 9 distributing agent stores unstamped cigarettes in the state or 34 10 distributes or delivers unstamped cigarettes within this state 34 11 without at the time of storage or delivery having a valid 34 12 permit, or if a person purchases or is in possession of 34 13 unstamped cigarettes, or if a person affected by this division 34 14 fails or refuses to abide by any of its provisions or the 34 15 rules adopted under this division, the person is civilly 34 16 liable to the state for a penalty as follows: 34 17 1. For possession of unstamped cigarettes: 34 18 a. A two hundred dollar penalty for the first violation if 34 19 a person is in possession of more than forty but not more than 34 20 four hundred unstamped cigarettes. 34 21 b. A five hundred dollar penalty for the first violation 34 22 if a person is in possession of more than four hundred but not 34 23 more than two thousand unstamped cigarettes. 34 24 c. A one thousand dollar penalty for the first violation 34 25 if a person is in possession of more than two thousand 34 26 unstamped cigarettes. 34 27 d. For a second violation within two years of the first 34 28 violation, the penalty is four hundred dollars if a person is 34 29 in possession of more than forty but not more than four 34 30 hundred unstamped cigarettes; one thousand dollars if a person 34 31 is in possession of more than four hundred but not more than 34 32 two thousand unstamped cigarettes; and two thousand dollars if 34 33 a person is in possession of more than two thousand unstamped 34 34 cigarettes. 34 35 e. For a third or subsequent violation within two years of 35 1 the first violation, the penalty is six hundred dollars if a 35 2 person is in possession of more than forty but not more than 35 3 four hundred unstamped cigarettes; one thousand five hundred 35 4 dollars if a person is in possession of more than four hundred 35 5 but not more than two thousand unstamped cigarettes; and three 35 6 thousand dollars if a person is in possession of more than two 35 7 thousand unstamped cigarettes. 35 8 2. For all other violations of this section: 35 9 a. A two hundred dollar penalty for the first violation. 35 10 b. A five hundred dollar penalty for a second violation 35 11 within two years of the first violation. 35 12 c. A thousand dollar penalty for a third or subsequent 35 13 violation within two years of the first violation. 35 14 The penalty imposed under this section shall be assessed 35 15 and collected pursuant to section 453A.28 and is in addition 35 16 to the tax, penalty, and interest imposed in that section. 35 17 Sec. 71. Section 453A.45, subsections 2, 3, and 4, Code 35 18 1999, are amended to read as follows: 35 19 2. Every person who sells tobacco products to persons 35 20 other than the ultimate consumer shall render with each sale 35 21 itemized invoices showing the seller's name and address, the 35 22 purchaser's name and address, the date of sale, and all prices 35 23 and discounts. The person shall preserve legible copies of 35 24 all such invoices forone yeartwo years from the date of 35 25 sale. 35 26 3. Every retailer and subjobber shall procure itemized 35 27 invoices of all tobacco products purchased. The invoices 35 28 shall show the name and address of the seller and the date of 35 29 purchase. The retailer and subjobber shall preserve a legible 35 30 copy of each such invoice forone yeartwo years from the date 35 31 of purchase. Invoices shall be available for inspection by 35 32 the director or the director's authorized agents or employees 35 33 at the retailer's or subjobber's place of business. 35 34 4. Records of all deliveries or shipments of tobacco 35 35 products from any public warehouse of first destination in 36 1 this state which is subject to the provisions of and licensed 36 2 under chapter 554 shall be kept by the warehouse and be 36 3 available to the director for inspection. They shall show the 36 4 name and address of the consignee, the date, the quantity of 36 5 tobacco products delivered, and such other information as the 36 6 commissioner may require. These records shall be preserved 36 7 forone yeartwo years from the date of delivery of the 36 8 tobacco products. 36 9 Sec. 72. Section 453A.46, subsections 1, 4, and 6, Code 36 10 1999, are amended to read as follows: 36 11 1. On or before the twentieth day of each calendar month 36 12 every distributor with a place of business in this state shall 36 13 file a return with the director showing the quantity and 36 14 wholesale sales price of each tobacco product brought, or 36 15 caused to be brought, into this state for sale; and made, 36 16 manufactured or fabricated in this state for sale in this 36 17 state, during the preceding calendar month. Every licensed 36 18 distributor outside this state shall in like manner file a 36 19 return showing the quantity and wholesale sales price of each 36 20 tobacco product shipped or transported to retailers in this 36 21 state to be sold by those retailers, during the preceding 36 22 calendar month. Returns shall be made upon forms furnished 36 23 and prescribed by the director and shall contain other 36 24 information as the director may require. Each return shall be 36 25 accompanied by a remittance for the full tax liability shown 36 26 on the return, less a discount as fixed by the director not to 36 27 exceed five percent of the tax. Within two years after the 36 28 return is filed or within two years after the return became 36 29 due, whichever is later, the department shall examine it, 36 30 determine the correct amount of tax, and assess the tax 36 31 against the taxpayer for any deficiency. The period for 36 32 examination and determination of the correct amount of tax is 36 33 unlimited in the case of a false or fraudulent return made 36 34 with the intent to evade tax, or in the case of a failure to 36 35 file a return. 37 1 The two-year period of limitation may be extended by a 37 2 taxpayer by signing a waiver agreement form to be provided by 37 3 the department. The agreement must stipulate the period of 37 4 extension and the tax period to which the extension applies. 37 5 The agreement must also provide that a claim for refund may be 37 6 filed by the taxpayer at any time during the period of 37 7 extension. 37 8 4. The department shall notify any person assessed 37 9 pursuant to this section by sending a written notice of the 37 10 determination by mail to the principal place of business of 37 11 the person as shown on the person's application for permit, 37 12 and if an application was not filed by the person, to the 37 13 person's last known address. A determination by the 37 14 department of the amount of tax, penalty, and interest due, or 37 15 the amount of refund for excess tax paid, is final, unless the 37 16 person aggrieved by the determination appeals to the director 37 17 for a revision of the determination within sixty days from the 37 18postmarkdate of the notice of determination of tax, penalty, 37 19 and interest or refund owing or unless the taxpayer contests 37 20 the determination by paying the tax, interest, and penalty and 37 21 timely filing a claim for refund. The director shall grant a 37 22 hearing and upon the hearing, the director shall determine the 37 23 correct tax, penalty, and interest or refund due and notify 37 24 the appellant of the decision by mail. Judicial review of 37 25 action of the director may be sought in accordance with 37 26 chapter 17A and section 422.29. 37 27 6. On or before the twentieth day of each calendar month, 37 28 every consumer who, during the preceding calendar month, has 37 29 acquired title to or possession of tobacco products for use or 37 30 storage in this state, upon which tobacco products the tax 37 31 imposed by section 453A.43 has not been paid, shall file a 37 32 return with the director showing the quantity of tobacco 37 33 products so acquired. The return shall be made upon a form 37 34 furnished and prescribed by the director, and shall contain 37 35suchother information as the director may require. The 38 1 return shall be accompanied by a remittance for the full 38 2 unpaid tax liability shown by it. Within two years after the 38 3 return is filed or within two years after the return became 38 4 due, whichever is later, the department shall examine it, 38 5 determine the correct amount of tax, and assess the tax 38 6 against the taxpayer for any deficiency. The period for 38 7 examination and determination of the correct amount of tax is 38 8 unlimited in the case of a false or fraudulent return made 38 9 with the intent to evade tax, or in the case of a failure to 38 10 file a return. 38 11 Sec. 73. Section 602.8102, subsection 59, Code 1999, is 38 12 amended by striking the subsection. 38 13 Sec. 74. Section 633.272, Code 1999, is amended to read as 38 14 follows: 38 15 633.272 PARTIAL INTESTACY. 38 16 If part but not all of the estate of a decedent is validly 38 17 disposed of by will, the part not disposed of by will shall be 38 18 distributed as provided herein for intestate estates. If the 38 19 testator left a surviving spouse, and the spouse does not 38 20 elect to take against the will, the spouse shall receive, in 38 21 addition to the property given to the spouse by the will,all38 22of the intestate property which shall be subject to the38 23payment of its proportionate share of debts and charges38 24against the estatethe amount of intestate property set forth 38 25 in section 633.211 or 633.212. 38 26 Sec. 75. Section 422.90, Code 1999, is repealed. 38 27 Sec. 76. Section 450.92, Code 1999, is repealed. 38 28 Sec. 77. DIRECTIONS TO CODE EDITOR. The Iowa Code editor 38 29 shall transfer sections 427.3 through 427.7 to chapter 426A 38 30 and change internal references as necessary. 38 31 Sec. 78. EFFECTIVE AND APPLICABILITY DATES. 38 32 1. Section 5 of this Act, amending section 422.13, 38 33 subsection 5, applies retroactively to January 1, 1999, for 38 34 tax years beginning on or after that date. 38 35 2. Section 7 of this Act, amending section 422.23, 39 1 unnumbered paragraph 2, applies retroactively to January 1, 39 2 1999, for tax years beginning on or after that date. 39 3 3. Section 9 of this Act, amending section 422.25, 39 4 subsection 3, applies retroactively to January 1, 1999, for 39 5 tax years beginning on or after that date. 39 6 4. Section 11 of this Act, amending section 422.33, 39 7 subsection 2, applies retroactively to January 1, 1999, for 39 8 tax years beginning on or after that date. 39 9 5. Section 27 of this Act, amending section 422.121, 39 10 applies retroactively to January 1, 1997, for tax years 39 11 beginning on or after that date. 39 12 6. Sections 35 through 38 and section 76 of this Act, 39 13 amending chapters 450 and 451, take effect July 1, 1999, for 39 14 estates of decedents dying on or after that date. 39 15 7. Except as otherwise provided in this section, this Act, 39 16 being deemed of immediate importance, takes effect upon 39 17 enactment. 39 18 EXPLANATION 39 19 The bill amends various provisions of state tax law. The 39 20 amendments that are not just eliminating obsolete provisions 39 21 are as follows: 39 22 Code section 421.1 is amended to delete the requirement 39 23 that the state board of tax review meet six times a year and 39 24 now provides that the state board meet as necessary. 39 25 Code section 421.18 is amended to provide that not only 39 26 public officers need to give the director information to 39 27 assist in tax administration but employees and local 39 28 governments need to also provide the information. 39 29 Code section 422.13 is amended to remove the requirement 39 30 that taxpayers need to get permission to file a composite 39 31 return and provides that limited liability companies may join 39 32 the filing of a composite return. 39 33 Code section 422.16 is amended to provide that, at the 39 34 discretion of the director, withholding agents need not send 39 35 wage and tax statements with the annual report if the 40 1 information is available from other sources such as the 40 2 internal revenue service or other state or federal agencies. 40 3 Code sections 422.23 and 602.8102(59) are amended to strike 40 4 the requirement that provides that personal representatives of 40 5 an estate can apply to the district court to determine 40 6 initially whether the estate is subject to Iowa income tax. 40 7 Code sections 422.25, 422.47(4), 424.10, 429.2(1), 40 8 450.94(2), 450.94(3), 453A.29, and 453A.46(4) are amended to 40 9 provide that the 30-or 60-day appeal period, as applicable, 40 10 commences on the date of the notice. Presently, the appeal 40 11 period commences on the postmark date of the notice. 40 12 Code section 422.25(3) is amended to provide that when a 40 13 taxpayer has paid 90 percent of the final tax liability by the 40 14 original due date and files the return sometime in the six- 40 15 month extended period after the original due date, interest on 40 16 an overpayment of tax on the return starts to accrue two 40 17 months after the end of the six-month extended period. 40 18 Code section 422.33(1) is amended to remove the provision 40 19 that imposes the Iowa corporate income tax upon a corporation 40 20 whose legal domicile (place where the corporation was created) 40 21 is in Iowa and instead provides it on all corporations doing 40 22 business in Iowa. 40 23 Code sections 422.33(2) is amended to provide that an Iowa- 40 24 based corporation whose only activity outside Iowa is the 40 25 ownership of intangible assets that have acquired a business 40 26 situs outside Iowa may apportion its income to determine the 40 27 portion of its income which is subject to Iowa income tax. 40 28 Code sections 422.42(6), 422.42(18), and 422.45(46) are 40 29 amended to make the exemption from Iowa sales tax for services 40 30 performed on tangible property delivered into interstate 40 31 commerce the same as the exemption from Iowa sales tax on 40 32 tangible personal property delivered to a point outside of 40 33 Iowa. 40 34 Code section 422.45(7) is amended to provide that 40 35 governmental units, nonprofit educational institutions, and 41 1 nonprofit private museums have one year instead of six months 41 2 from final payment to apply for a refund of sales or use tax 41 3 paid by a contractor on materials used in the performance of a 41 4 construction contract. 41 5 Code section 422.47, which relates to the use of sales tax 41 6 exemption certificates, is amended to provide that an 41 7 exemption certificate may be used to substantiate the sale of 41 8 nontaxable items as well as sales made to persons holding a 41 9 direct pay permit. Current law only provides for exemption 41 10 certificates for materials purchased for resale or use in 41 11 processing. 41 12 Code section 422.50 is amended to provide that retailers 41 13 are required to keep records on the gross receipts from the 41 14 sale of services as well as the sale of tangible personal 41 15 property. 41 16 Code section 422.68(4) is amended to allow the department 41 17 to use new technologies to preserve records as required by 41 18 law. 41 19 Code section 422.72(1) is amended to make it unlawful to 41 20 willfully inspect returns for any reason other than as 41 21 authorized by the director of revenue and finance. The 41 22 penalty is a serious misdemeanor. 41 23 Code section 422.90 is repealed. The section stated that 41 24 the penalty imposed for underpayment of estimated tax is not 41 25 subject to waiver for reasonable cause. 41 26 Code section 422.110 is amended to provide that an income 41 27 tax credit in lieu of a full tax refund is not available for 41 28 credit relating to casualty loss, transport diversions, 41 29 pumping credits, blending errors, idle time, power takeoffs, 41 30 reefer units, and exports by eligible purchasers. However, a 41 31 refund remains available if a refund permit is obtained from 41 32 the department. 41 33 Code section 422.111 is amended to provide that a refund is 41 34 only available for undyed special fuel since no tax is imposed 41 35 on dyed special fuel. 42 1 Code section 422.121 is amended to specify the method for 42 2 calculating the livestock production tax credit for cow-calf 42 3 operations effective beginning with the 1997 tax year. 42 4 Code section 422B.10(2) is amended to provide that if an 42 5 overpayment has been made to a local jurisdiction for local 42 6 option sales tax during the previous fiscal year, the November 42 7 payment must reflect the adjustment. 42 8 Code section 422D.3 is amended to move a local income 42 9 surtax fund from the state treasurer's office to the 42 10 department of revenue and finance. 42 11 Code section 427.1(14) is amended to move the sign-up date 42 12 from July 1 to April 15 for claiming a property tax exemption 42 13 by war veterans organizations and religious, literary, and 42 14 charitable societies. This would allow the taxpayer to appeal 42 15 the assessment to the board of review prior to its adjournment 42 16 if the claim is denied. 42 17 Code section 427.1(24) is amended to provide a February 1 42 18 deadline for certifying eligibility for the wildlife habitat 42 19 property tax exemption. Other property tax credit and 42 20 exemptions provide specific certification deadlines. 42 21 Code sections 427.3 through 427.7 are to be transferred to 42 22 Code chapter 426A by the Iowa Code editor so that all 42 23 provisions pertaining to the military service property tax 42 24 exemption appear in the same chapter. 42 25 Code section 428.1 is amended to provide that the listing 42 26 contained in section 428.1, subsections 1 through 5, does not 42 27 encompass all situations where a person is required to list 42 28 property for the assessor. 42 29 Code section 450.22 is amended to provide that, in addition 42 30 to the surviving spouse as already provided in this statute, 42 31 when the estate does not have a federal estate tax obligation 42 32 and all property of the estate is held in joint tenancy with 42 33 the right of survivorship solely by the decedent and a lineal 42 34 ascendant, child, stepchild, or lineal descendant, or any 42 35 combination of these individuals, an Iowa inheritance tax 43 1 return need not be filed. 43 2 Code section 450.37 is amended to allow the department of 43 3 revenue and finance to adjust previously accepted, submitted, 43 4 appraised, or agreed upon values of real property if the new 43 5 values have been accepted for federal estate tax purposes. 43 6 Also, the personal representative for the estate may claim a 43 7 refund of tax if the personal representative for the estate 43 8 files a claim for refund within six months of the final 43 9 disposition of any real property valuation matter. 43 10 Code section 451.12 is amended to provide that a lien for 43 11 Iowa estate tax could be made on those items listed as 43 12 exemptions under Code section 450.7 for inheritance tax. 43 13 Code section 452A.2(11) and (17) are amended to provide 43 14 that a person need not export fuel exclusively to be 43 15 considered an exporter and that transmix is taxed as motor 43 16 vehicle fuel. Transmix is a product that is used as a buffer 43 17 between fuel types being transported through a pipeline. 43 18 Code section 452A.3(5) is amended to require the person who 43 19 owns the fuel at the time it is imported into the state to pay 43 20 the tax on motor fuel. 43 21 Code sections 452A.8, 452A.9, 452A.15, 452A.21, 452A.60, 43 22 452A.61, 452A.63, 452A.67, 452A.68, 452A.74A, and 452A.86 are 43 23 amended to provide consistency in the motor vehicle fuel tax 43 24 by changing the word "report" to "return". When the motor 43 25 vehicle fuel tax chapters were amended to change the point of 43 26 taxation during the 1995 Session of the General Assembly, 43 27 these sections were not amended. 43 28 Code section 452A.17(1) is amended to provide that a fuel 43 29 tax refund is available for machinery and equipment used for 43 30 nonhighway purposes and to clarify that distributors who are 43 31 eligible purchasers are entitled to refund of the tax paid. 43 32 Code section 452A.17 is also amended to provide that 43 33 records need to be kept relating to fuel used in watercraft 43 34 and further to provide that no refund will be issued for 43 35 undyed special fuel taken out of the state in the fuel supply 44 1 tank of a vehicle. 44 2 Code section 452A.21 is also amended to extend the time for 44 3 claiming refunds resulting from the excess tax paid on fuel 44 4 blended with alcohol to produce ethanol from 90 days to one 44 5 year and to prohibit claiming an income tax credit for the 44 6 excess tax paid. 44 7 Code section 452A.22 is created to require a licensee who 44 8 collects tax in error from a consumer to either return the tax 44 9 to the consumer or remit it to the department. 44 10 Code sections 452A.67, 453A.28, and 453A.46(1) are amended 44 11 to provide that the taxpayer may enter into an agreement with 44 12 the department of revenue and finance to extend the statute of 44 13 limitations for assessment and refund. 44 14 Code section 453A.6(3) is amended to list distributors and 44 15 manufacturers as those who must stamp cigarettes. 44 16 Code section 453A.6 is also amended by adding two new 44 17 subsections. The first new subsection provides that any 44 18 person who is in possession of unstamped cigarettes shall pay 44 19 the tax directly to the department. The second new subsection 44 20 provides that the tax shall be added to the selling price and 44 21 collected from the purchasers so that the ultimate consumer 44 22 bears the burden of the tax. 44 23 Code section 453A.8(1) is amended to provide that the 44 24 department is no longer required to sell cigarette stamps in 44 25 unbroken books of 1,000 stamps. 44 26 Code section 453A.15 is amended to provide that any person 44 27 who is not licensed must keep records, file reports, and pay 44 28 the cigarette tax in the same manner as permit holders. 44 29 Code section 453A.16 is amended to provide that 44 30 manufacturers of cigarettes may only ship unstamped cigarettes 44 31 into the state to licensed distributors or licensed 44 32 distributors' agents. 44 33 Code sections 453A.28 and 453A.46(1) and (6) are amended to 44 34 provide that the two-year statute of limitations does not 44 35 apply if a false or fraudulent report or return is made with 45 1 the intent to evade tax, if a report or return is not filed, 45 2 or if the person is in possession of unstamped cigarettes. In 45 3 these instances, the statute of limitations is unlimited. 45 4 Code section 453A.31 deals with a civil penalty for failure 45 5 to keep records, selling cigarettes without a valid permit, 45 6 making a false or incomplete report, or failing to abide with 45 7 rules of the department. The present penalty is $50 for each 45 8 offense, each violation is a separate offense, and the same 45 9 violation is a separate offense for each day it continues. 45 10 The amendment to the Code section strikes the $50-a-day 45 11 penalty in lieu of a three-tiered civil penalty for the above 45 12 offenses: $200 for the first offense; $500 for the second 45 13 offense within two years; $1,000 for the third offense within 45 14 two years and for subsequent offenses. 45 15 A second three-tiered penalty for possession of unstamped 45 16 cigarettes is provided. This penalty is based on the number 45 17 of cigarettes in the person's possession. 45 18 Number of 1st Violation 2nd Violation Third 45 19 Cigarettes Within 2 Years Within 2 Years Violation 45 20 41-400 $200 $400 $600 45 21 401-2,000 $500 $1,000 $1,500 45 22 2,001 or 45 23 more $1,000 $2,000 $3,000 45 24 These penalties are no longer subject to mandatory waiver 45 25 for reasonable cause. 45 26 Code section 453A.45(2), (3), and (4) are amended to 45 27 require persons who sell tobacco products to retain records 45 28 for two years from the date of sale instead of the present 45 29 one-year requirement. 45 30 Code section 633.272 is amended to provide that, under 45 31 partial intestacy, a surviving spouse is entitled to receive 45 32 the amount of intestate property as provided in Code section 45 33 633.211 or 633.212. 45 34 The bill takes effect upon enactment and some provisions 45 35 have different applicability date provisions than the 46 1 effective date. 46 2 LSB 1166DP 78 46 3 mg/sc/14.1
Text: SSB01042 Text: SSB01044 Text: SSB01000 - SSB01099 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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