Text: SSB03036 Text: SSB03038 Text: SSB03000 - SSB03099 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 15.331A, subsection 2, Code 1999, is 1 2 amended to read as follows: 1 3 2. The eligible business or a supporting business shall, 1 4 not more thansix monthsone year after project completion, 1 5 make application to the department for any refund of the 1 6 amount of the taxes paid pursuant to chapter 422 or 423 upon 1 7 any goods, wares, or merchandise, or services rendered, 1 8 furnished, or performed, including water, sewer, gas, and 1 9 electric utility services. The application shall be made in 1 10 the manner and upon forms to be provided by the department, 1 11 and the department shall audit the claim and, if approved, 1 12 issue a warrant to the eligible business or supporting 1 13 business in the amount of the sales or use tax which has been 1 14 paid to the state of Iowa under a contract. A claim filed by 1 15 the eligible business or a supporting business in accordance 1 16 with this section shall not be denied by reason of a 1 17 limitation provision set forth in chapter 421, 422, or 423. 1 18 Sec. 2. Section 404.4, unnumbered paragraph 2, Code 1999, 1 19 is amended to read as follows: 1 20 An application shall be filed for each new exemption 1 21 claimed. The first application for an exemption shall be 1 22 filed by the owner of the property with the governing body of 1 23 the city or county in which the property is located by 1 24 February 1 of the assessment year for which the exemption is 1 25 first claimed, but not later than the year in which all 1 26 improvements included in the project are first assessed for 1 27 taxation, unless, upon the request of the owner at any time, 1 28 the governing body of the city or county provides by 1 29 resolution that the owner may file an application by February 1 30 1 of any other assessment year selected by the governing body 1 31 in which case the exemption is allowed for the number of years 1 32 remaining in the exemption schedule selected. The application 1 33 shall contain, but not be limited to, the following 1 34 information: The nature of the improvement, its cost, the 1 35 estimated or actual date of completion, the tenants that 2 1 occupied the owner's building on the date the city or county 2 2 adopted the resolution referred to in section 404.2, 2 3 subsection 1, and which exemption in section 404.3 or in the 2 4 different schedule, if one has been adopted, will be elected. 2 5 Sec. 3. Section 421.17, subsection 16, Code Supplement 2 6 1999, is amended to read as follows: 2 7 16. To call uponanya statedepartmentagency or 2 8 institution for technical advice and data which may be of 2 9 value in connection with the work ofassessment and taxation2 10 the department. 2 11 Sec. 4. Section 422.47, subsection 2, Code Supplement 2 12 1999, is amended by striking the subsection. 2 13 Sec. 5. Section 422.110, unnumbered paragraph 1, Code 2 14 Supplement 1999, is amended to read as follows: 2 15 In lieu of the fuel tax refund provided in section 452A.17, 2 16 a person or corporation subject to taxation under divisions II 2 17 or III of this chapter may elect to receive an income tax 2 18 credit. The person or corporation which elects to receive an 2 19 income tax credit shall cancel its refund permit obtained 2 20 under section 452A.18 within thirty days after the first day 2 21 of its tax year or the permit becomes invalid at that time. 2 22 For the purposes of this section, "person" includes a person 2 23 claiming a tax credit based upon the person's pro rata share 2 24 of the earnings from a partnership, limited liability company, 2 25 or corporation which is not subject to a tax under division II 2 26 or III of this chapter as a partnership, limited liability 2 27 company, or corporation. If the election to receive an income 2 28 tax credit has been made, it remains effective for at least 2 29 one tax year, and for subsequent tax years unless a change is 2 30 requested and a new refund permit applied for within thirty 2 31 days after the first day of the person's or corporation's tax 2 32 year. The income tax credit shall be the amount of the Iowa 2 33 fuel tax paid on fuel purchased by the person or corporation 2 34 and is subject to the conditions provided in section 452A.17 2 35 with the exception that the income tax credit is not available 3 1 for refunds relating to casualty losses, transport diversions, 3 2 pumping credits, blending errors, idle time, power takeoffs, 3 3 reefer units, and exports byeligible purchasersdistributors. 3 4 Sec. 6. Section 422A.1, Code 1999, is amended by adding 3 5 the following new unnumbered paragraph after unnumbered 3 6 paragraph 1: 3 7 NEW UNNUMBERED PARAGRAPH. Within ten days of the election 3 8 at which a majority of those voting on the question favors the 3 9 imposition, repeal, or change in the rate of the hotel and 3 10 motel tax, the county auditor shall give written notice by 3 11 sending a copy of the abstract of votes from the favorable 3 12 election to the director of revenue and finance. 3 13 Sec. 7. Section 422B.8, unnumbered paragraph 1, Code 3 14 Supplement 1999, is amended to read as follows: 3 15 A local sales and services tax at the rate of not more than 3 16 one percent may be imposed by a county on the gross receipts 3 17 taxed by the state under chapter 422, division IV. A local 3 18 sales and services tax shall be imposed on the same basis as 3 19 the state sales and services tax or in the case of the use of 3 20 natural gas, natural gas service, electricity,orelectric 3 21 service, or communication service on the same basis as the 3 22 state use tax and shall not be imposed on the sale of any 3 23 property or on any service not taxed by the state, except the 3 24 tax shall not be imposed on the gross receipts from the sale 3 25 of motor fuel or special fuel as defined in chapter 452A which 3 26 is consumed for highway use or in watercraft or aircraft if 3 27 the fuel tax is paid on the transaction and a refund has not 3 28 or will not be allowed, on the gross receipts from the rental 3 29 of rooms, apartments, or sleeping quarters which are taxed 3 30 under chapter 422A during the period the hotel and motel tax 3 31 is imposed, on the gross receipts from the sale of equipment 3 32 by the state department of transportation, on the gross 3 33 receipts from the sale of self-propelled building equipment, 3 34 pile drivers, motorized scaffolding, or attachments 3 35 customarily drawn or attached to self-propelled building 4 1 equipment, pile drivers, and motorized scaffolding, including 4 2 auxiliary attachments which improve the performance, safety, 4 3 operation, or efficiency of the equipment and replacement 4 4 parts and are directly and primarily used by contractors, 4 5 subcontractors, and builders for new construction, 4 6 reconstruction, alterations, expansion, or remodeling of real 4 7 property or structures, and on the gross receipts from the 4 8 sale of a lottery ticket or share in a lottery game conducted 4 9 pursuant to chapter 99E and except the tax shall not be 4 10 imposed on the gross receipts from the sale or use of natural 4 11 gas, natural gas service, electricity, or electric service in 4 12 a city or county where the gross receipts from the sale of 4 13 natural gas or electric energy are subject to a franchise fee 4 14 or user fee during the period the franchise or user fee is 4 15 imposed. A local sales and services tax is applicable to 4 16 transactions within those incorporated and unincorporated 4 17 areas of the county where it is imposed and shall be collected 4 18 by all persons required to collect state gross receipts taxes. 4 19 However, a person required to collect state retail sales tax 4 20 under chapter 422, division IV, is not required to collect 4 21 local sales and services tax on transactions delivered within 4 22 the area where the local sales and services tax is imposed 4 23 unless the person has physical presence in that taxing area. 4 24 All cities contiguous to each other shall be treated as part 4 25 of one incorporated area and the tax would be imposed in each 4 26 of those contiguous cities only if the majority of those 4 27 voting in the total area covered by the contiguous cities 4 28 favor its imposition. 4 29 Sec. 8. Section 422E.3, subsection 2, Code Supplement 4 30 1999, is amended to read as follows: 4 31 2. The tax shall be imposed on the same basis as the state 4 32 sales and services tax or in the case of the use of natural 4 33 gas, natural gas service, electricity,orelectric service, or 4 34 communication service on the same basis as the state use tax 4 35 and shall not be imposed on the sale of any property or on any 5 1 service not taxed by the state, except the tax shall not be 5 2 imposed on the gross receipts from the sale of motor fuel or 5 3 special fuel as defined in chapter 452A which is consumed for 5 4 highway use or in watercraft or aircraft if the fuel tax is 5 5 paid on the transaction and a refund has not or will not be 5 6 allowed, on the gross receipts from the rental of rooms, 5 7 apartments, or sleeping quarters which are taxed under chapter 5 8 422A during the period the hotel and motel tax is imposed, on 5 9 the gross receipts from the sale of equipment by the state 5 10 department of transportation, on the gross receipts from the 5 11 sale of self-propelled building equipment, pile drivers, 5 12 motorized scaffolding, or attachments customarily drawn or 5 13 attached to self-propelled building equipment, pile drivers, 5 14 and motorized scaffolding, including auxiliary attachments 5 15 which improve the performance, safety, operation, or 5 16 efficiency of the equipment, and replacement parts and are 5 17 directly and primarily used by contractors, subcontractors, 5 18 and builders for new construction, reconstruction, 5 19 alterations, expansion, or remodeling of real property or 5 20 structures, and on the gross receipts from the sale of a 5 21 lottery ticket or share in a lottery game conducted pursuant 5 22 to chapter 99E and except the tax shall not be imposed on the 5 23 gross receipts from the sale or use of natural gas, natural 5 24 gas service, electricity, or electric service in a city or 5 25 county where the gross receipts from the sale of natural gas 5 26 or electric energy are subject to a franchise fee or user fee 5 27 during the period the franchise or user fee is imposed. 5 28 Sec. 9. Section 423.2, Code Supplement 1999, is amended to 5 29 read as follows: 5 30 423.2 IMPOSITION OF TAX. 5 31 An excise tax is imposed on the use in this state of 5 32 tangible personal property, including aircraft subject to 5 33 registration under section 328.20, purchased for use in this 5 34 state, at the rate of five percent of the purchase price of 5 35 the property. An excise tax is imposed on the use of 6 1 manufactured housing in this state at the rate of five percent 6 2 of the purchase price if the manufactured housing is sold in 6 3 the form of tangible personal property and at the rate of five 6 4 percent of the installed purchase price if the manufactured 6 5 housing is sold in the form of realty. An excise tax is 6 6 imposed on the use of leased vehicles at the rate of five 6 7 percent of the amount otherwise subject to tax as calculated 6 8 pursuant to section 423.7A. The excise tax is imposed upon 6 9 every person using the property within this state until the 6 10 tax has been paid directly to the county treasurer or the 6 11 state department of transportation, to a retailer, or to the 6 12 department. An excise tax is imposed on the use in this state 6 13 of services enumerated in section 422.43, including 6 14 communication service, at the rate of five percent. This tax 6 15 is applicable where services are rendered, furnished, or 6 16 performed in this state or where the product or result of the 6 17 service is used in this state. This tax is imposed on every 6 18 person using the services or the product of the services in 6 19 this state until the user has paid the tax either to an Iowa 6 20 use tax permit holder or to the department. 6 21 Sec. 10. Section 424.10, subsections 1 and 3, Code 6 22 Supplement 1999, are amended to read as follows: 6 23 1. As soon as practicable after a return is filed and in 6 24 any event withinfivethree years after the return is filed 6 25 the department shall examine it, assess and determine the 6 26 charge due if the return is found to be incorrect, and give 6 27 notice to the depositor ofsuchthe assessment and 6 28 determination as provided in subsection 2. The period for the 6 29 examination and determination of the correct amount of the 6 30 charge is unlimited in the case of a false or fraudulent 6 31 return made with the intent to evade the charge or in the case 6 32 of a failure to file a return. If the determination that a 6 33 return is incorrect is the result of an audit of the books and 6 34 records of the depositor, the charge, or additional charge, if 6 35 any is found due, shall be assessed and determined and the 7 1 notice to the depositor shall be given by the department 7 2 within one year after the completion of the examination of the 7 3 books and records. 7 4 3. If the amount paid is greater than the correct charge, 7 5 penalty, and interest due, the department shall refund the 7 6 excess, with interest after sixty days from the date of 7 7 payment at the rate in effect under section 421.7, pursuant to 7 8 rules prescribed by the director. However, the director shall 7 9 not allow a claim for refund that has not been filed with the 7 10 department withinfivethree years after the charge payment 7 11 upon which a refund is claimed became due, or one year after 7 12 the charge payment was made, whichever time is later. A 7 13 determination by the department of the amount of charge, 7 14 penalty, and interest due, or the amount of refund for any 7 15 excess amount paid, is final unless the person aggrieved by 7 16 the determination appeals to the director for a revision of 7 17 the determination within sixty days from the date of the 7 18 notice of determination of charge, penalty, and interest due 7 19 or refund owing. The director shall grant a hearing, and upon 7 20 hearing the director shall determine the correct charge, 7 21 penalty, and interest due or refund owing, and notify the 7 22 appellant of the decision by mail. The decision of the 7 23 director is final unless the appellant seeks judicial review 7 24 of the director's decision under section 424.13. 7 25 Sec. 11. Section 424.10, subsection 2, Code Supplement 7 26 1999, is amended to read as follows: 7 27 2. If a return required by this chapter is not filed, or 7 28 if a return when filed is incorrect or insufficient and the 7 29 maker fails to file a corrected or sufficient return within 7 30 twenty days after the return is required by notice from the 7 31 department, the department shall determine the amount of 7 32 charge due from information as the department may be able to 7 33 obtain and, if necessary, may estimate the charge on the basis 7 34 of external indices or factors. The department shall give 7 35 notice of the determination to the person liable for the 8 1 charge. The determination shall fix the charge unless the 8 2 person against whom it is assessed shall, within sixty days 8 3 after the date of the notice of the determination, apply to 8 4 the director for a hearing or unless thetaxpayerperson 8 5 against whom it is assessed contests the determination by 8 6 paying thetaxcharge, interest, and penalty and timely filing 8 7 a claim for refund. At the hearing evidence may be offered to 8 8 support the determination or to prove that it is incorrect. 8 9 After the hearing the director shall give notice of the 8 10 decision to the person liable for the charge. 8 11 If a depositor's, receiver's, or other person's challenge 8 12 relates to the diminution rate, the burden of proof upon the 8 13 challenger shall only be satisfied by clear and convincing 8 14 evidence. 8 15 Sec. 12. Section 424.12, Code 1999, is amended to read as 8 16 follows: 8 17 424.12 RECORDS REQUIRED. 8 18 Itshall beis the duty of every depositor required to make 8 19 a report and pay any charge under this chapter, to preserve 8 20 such records as the director may require, and itshall beis 8 21 the duty of every depositor to preserve for a period offive8 22 three years all invoices and other records; and all such 8 23 books, invoices, and other records shall be open to 8 24 examination at any time by the department, and shall be made 8 25 available within this state forsuchexamination upon 8 26 reasonable notice when the director shall so order. When 8 27 requested to do so by any person from whom a charge payer is 8 28 seeking credit, or with whom the charge payer is negotiating 8 29 the sale of any personal property, or by any other person 8 30 having a legitimate interest in such information, the 8 31 director, upon being satisfied that such a situation exists, 8 32 shall informsuchthat person as to the amount of unpaid 8 33 charges due by the charge payer underthe provisions ofthis 8 34 chapter. The giving ofsuchinformation under such 8 35 circumstances shall not be deemed a violation of section 9 1 422.72 as applied to this chapter. 9 2 Section 422.72 applies to this chapter as if the 9 3 environmental protection charge were a tax. 9 4 Sec. 13. Section 424.13, subsection 2, Code 1999, is 9 5 amended to read as follows: 9 6 2. For cause and upon a showing by the director that 9 7 collection of thetaxcharge in dispute is in doubt, the court 9 8 may order the petitioner to file with the clerk a bond for the 9 9 use of the respondent, with sureties approved by the clerk, in 9 10 the amount oftaxthe charge appealed from, conditioned that 9 11 the petitioner shall perform the orders of the court. 9 12 Sec. 14. Section 424.15, unnumbered paragraph 1, Code 9 13 1999, is amended to read as follows: 9 14 If it appears that, as a result of mistake, an amount of a 9 15 charge, penalty, or interest has been paid which was not due 9 16 underthe provisions ofthis chapter, thensuchthat amount 9 17 shall be refunded tosuch personthe charge payer by the 9 18 department. A claim for refund that has not been filed with 9 19 the department withinfivethree years after the charge 9 20 payment upon which a refund is claimed became due, or one year 9 21 aftersuchthat charge payment was made, whichever time is the 9 22 later, shall not be allowed by the director. 9 23 Sec. 15. Section 427.1, subsection 14, unnumbered 9 24 paragraph 1, Code Supplement 1999, is amended to read as 9 25 follows: 9 26 A society or organization claiming an exemption under 9 27 subsection 5 or subsection 8 shall file with the assessor not 9 28 later thanApril 15February 1 a statement upon forms to be 9 29 prescribed by the director of revenue and finance, describing 9 30 the nature of the property upon which the exemption is claimed 9 31 and setting out in detail any uses and income from the 9 32 property derived from the rentals, leases, or other uses of 9 33 the property not solely for the appropriate objects of the 9 34 society or organization. Upon the filing and allowance of the 9 35 claim, the claim shall be allowed on the property for 10 1 successive years without further filing as long as the 10 2 property is used for the purposes specified in the original 10 3 claim for exemption. When the property is sold or 10 4 transferred, the county recorder shall provide notice of the 10 5 transfer to the assessor. The notice shall describe the 10 6 property transferred and the name of the person to whom title 10 7 to the property is transferred. 10 8 Sec. 16. Section 427.1, subsection 16, Code Supplement 10 9 1999, is amended to read as follows: 10 10 16. REVOKING OR MODIFYING EXEMPTION. Any taxpayer or any 10 11 taxing district may make application to the director of 10 12 revenue and finance for revocation or modification for any 10 13 exemption, based upon alleged violations of this chapter. The 10 14 director of revenue and finance may also on the director's own 10 15 motion set aside or modify any exemption which has been 10 16 granted upon property for which exemption is claimed under 10 17 this chapter. The director of revenue and finance shall give 10 18 notice by mail to the taxpayer or taxing district applicant 10 19 and to the societies or organizations claiming an exemption 10 20 upon property, exemption of which is questioned before or by 10 21 the director of revenue and finance, and shall hold a hearing 10 22 prior to issuing any order for revocation or modification. An 10 23 order made by the director of revenue and finance revoking or 10 24 modifying an exemption shall be applicable to the tax year 10 25 commencing with the tax year in which the application is made 10 26 to the directorof revenue and financeor the tax year 10 27 commencing with the tax year in which the director's own 10 28 motion is filed. An order made by the director of revenue and 10 29 finance revoking or modifying an exemption is subject to 10 30 judicial review in accordance with chapter 17A, the Iowa 10 31 administrative procedure Act. Notwithstanding the terms of 10 32 that Act, petitions for judicial review may be filed in the 10 33 district court having jurisdiction in the county in which the 10 34 property is located, and must be filed within thirty days 10 35 after any order revoking or modifying an exemption is made by 11 1 the director of revenue and finance. 11 2 Sec. 17. Section 427.1, subsection 20, Code Supplement 11 3 1999, is amended to read as follows: 11 4 20. IMPOUNDMENT STRUCTURES. The impoundment structure and 11 5 any land underlying an impoundment located outside an 11 6 incorporated city, which are not developed or used directly or 11 7 indirectly for nonagricultural income-producing purposes and 11 8 which are maintained in a condition satisfactory to the soil 11 9 and water conservation district commissioners of the county in 11 10 which the impoundment structure and the impoundment are 11 11 located. A person owning land which qualifies for a property 11 12 tax exemption under this subsection shall apply to the county 11 13 assessor each yearbefore the first of Julynot later than 11 14 February 1 for the exemption. The application shall be made 11 15 on forms prescribed by the department of revenue and finance. 11 16 The first application shall be accompanied by a copy of the 11 17 water storage permit approved by the administrator of the 11 18 environmental protection division of the department of natural 11 19 resources and a copy of the plan for the construction of the 11 20 impoundment structure and the impoundment. The construction 11 21 plan shall be used to determine the total acre-feet of the 11 22 impoundment and the amount of land which is eligible for the 11 23 property tax exemption status. The county assessor shall 11 24 annually review each application for the property tax 11 25 exemption under this subsection and submit it, with the 11 26 recommendation of the soil and water conservation district 11 27 commissioners, to the board of supervisors for approval or 11 28 denial. An applicant for a property tax exemption under this 11 29 subsection may appeal the decision of the board of supervisors 11 30 to the district court. 11 31 PARAGRAPH DIVIDED. As used in this subsection, 11 32 "impoundment" means a reservoir or pond which has a storage 11 33 capacity of at least eighteen acre-feet of water or sediment 11 34 at the time of construction; "storage capacity" means the 11 35 total area below the crest elevation of the principal spillway 12 1 including the volume of any excavation in the area; and 12 2 "impoundment structure" means a dam, earthfill, or other 12 3 structure used to create an impoundment. 12 4 Sec. 18. Section 427.1, subsection 22, unnumbered 12 5 paragraph 2, Code Supplement 1999, is amended to read as 12 6 follows: 12 7 Application for this exemption shall be filed with the 12 8 commissioners of the soil and water conservation district in 12 9 which the property is located, not later thanApril 1512 10 February 1 of the assessment year, on forms provided by the 12 11 department of revenue and finance. The application shall 12 12 describe and locate the property to be exempted and have 12 13 attached to it an aerial photo of that property on which is 12 14 outlined the boundaries of the property to be exempted. In 12 15 the case of an open prairie which is or includes a gully area 12 16 susceptible to severe erosion, an approved erosion control 12 17 plan must accompany the application. Upon receipt of the 12 18 application, the commissioners shall certify whether the 12 19 property is eligible to receive the exemption. The 12 20 commissioners shall not withhold certification of the 12 21 eligibility of property because of the existence upon the 12 22 property of an abandoned building or structure which is not 12 23 used for economic gain. If the commissioners certify that the 12 24 property is eligible, the application shall be forwarded to 12 25 the board of supervisors by May 1 of that assessment year with 12 26 the certification of the eligible acreage. An application 12 27 must be accompanied by an affidavit signed by the applicant 12 28 that if an exemption is granted, the property will not be used 12 29 for economic gain during the assessment year in which the 12 30 exemption is granted. 12 31 Sec. 19. Section 427.1, subsection 30, Code Supplement 12 32 1999, is amended to read as follows: 12 33 30. MOBILE HOME PARK STORM SHELTER. A structure 12 34 constructed as a storm shelter at a mobile home park as 12 35 defined in section 435.1. An application for this exemption 13 1 shall be filed with the assessing authority not later than 13 2April fifteenthFebruary 1 of the first year for which the 13 3 exemption is requested, on forms provided by the department of 13 4 revenue and finance. The application shall describe and 13 5 locate the storm shelter to be exempted. If the storm shelter 13 6 structure is used exclusively as a storm shelter, all of the 13 7 structure's assessed value shall be exempt from taxation. If 13 8 the storm shelter structure is not used exclusively as a storm 13 9 shelter, the storm shelter structure shall be assessed for 13 10 taxation at seventy-five percent of its value as commercial 13 11 property. 13 12 Sec. 20. Section 427.16, subsection 2, Code 1999, is 13 13 amended to read as follows: 13 14 2. Application for the exemption shall be filed with the 13 15 assessor, not later thanMarch 1February 1 of the assessment 13 16 year, on forms provided by the department of revenue and 13 17 finance. The exemption application shall include an approved 13 18 application for certified substantial rehabilitation from the 13 19 state historic preservation officer and documentation of 13 20 additional property tax relief or financial assistance 13 21 currently allowed for the real property. Upon receipt of the 13 22 application, the assessor shall certify whether or not the 13 23 property is eligible to receive the exemption and shall 13 24 forward the application to the board. 13 25 Sec. 21. Section 427C.3, Code 1999, is amended to read as 13 26 follows: 13 27 427C.3 FOREST RESERVATION. 13 28 A forest reservation shall contain not less than two 13 29 hundred growing forest trees on each acre. If the area 13 30 selected is a forest containing the required number of growing 13 31 forest trees, it shall be accepted as a forest reservation 13 32 under this chapter provided application is made or on file on 13 33 or beforeApril 15February 1 of the exemption year. If any 13 34 buildings are standing on an area selected as a forest 13 35 reservation under this section or a fruit-tree reservation 14 1 under section 427C.7 one acre of that area shall be excluded 14 2 from the tax exemption. However, the exclusion of that acre 14 3 shall not affect the area's meeting the acreage requirement of 14 4 section 427C.2. 14 5 Sec. 22. Section 427C.7, Code 1999, is amended to read as 14 6 follows: 14 7 427C.7 FRUIT-TREE RESERVATION – DURATION OF EXEMPTION. 14 8 A fruit-tree reservation shall contain on each acre, at 14 9 least forty apple trees, or seventy other fruit trees, growing 14 10 under proper care and annually pruned and sprayed. A 14 11 reservation may be claimed as a fruit-tree reservation, under 14 12 this chapter, for a period of eight years after planting 14 13 provided application is made or on file on or beforeApril 1514 14 February 1 of the exemption year. 14 15 Sec. 23. Section 428A.8, Code 1999, is amended by adding 14 16 the following new unnumbered paragraph: 14 17 NEW UNNUMBERED PARAGRAPH. Any tax or additional tax found 14 18 to be due shall be collected by the director of revenue and 14 19 finance in the same manner as taxes are collected in chapter 14 20 422, division III. Section 422.25, subsections 1, 2, 3, and 14 21 4, sections 422.26, 422.28 to 422.30, and 422.73, consistent 14 22 with this chapter, apply with respect to the collection of any 14 23 tax or additional tax found to be due, in the same manner and 14 24 with the same effect as if the deed, instrument, or writing 14 25 were an income tax return within the meaning of those 14 26 statutes. 14 27 Sec. 24. Section 450.4, subsection 5, Code 1999, is 14 28 amended to read as follows: 14 29 5. On the value of that portion of any lump sum or 14 30 installment payments which will be includable as net income as 14 31 defined in section 422.7 as received by a beneficiary under an 14 32 annuity which was purchased under an employees pension or 14 33 retirement plan. 14 34 Sec. 25. Section 450.4, Code 1999, is amended by adding 14 35 the following new subsections: 15 1 NEW SUBSECTION. 7. The value of that portion of any lump 15 2 sum or installment payments which are received by a 15 3 beneficiary under an annuity which was purchased under an 15 4 employee's pension or retirement plan where the employee is a 15 5 nonresident of Iowa at the time of death. 15 6 NEW SUBSECTION. 8. The value of that portion of any lump 15 7 sum or installment payments which are received by a 15 8 beneficiary under an annuity which was purchased under an 15 9 employee's pension or retirement pan which was excluded from 15 10 net income as set forth in section 422.7, subsection 31. 15 11 Sec. 26. Section 450.10, subsection 4, Code 1999, is 15 12 amended to read as follows: 15 13 4. When the property or any interestthereinin property 15 14 or incometherefromfrom property, taxable underthe15 15provisions ofthis chapter, passes to any firm, corporation, 15 16 or society organized for profiteither under the laws of this15 17state or of any other state, territory, province or country, 15 18 including fraternal and social organizations which do not 15 19 qualify for exemption under sections 170(c) and 2055 of the 15 20 Internal Revenue Code, the rate of tax imposed shall be as 15 21 follows: 15 22 Fifteen percent on the entire amount so passing. 15 23 Sec. 27. Section 452A.2, Code Supplement 1999, is amended 15 24 by adding the following new subsections: 15 25 NEW SUBSECTION. 4A. "Denatured ethanol" means ethanol 15 26 that is to be blended with gasoline, has been derived from 15 27 cereal grains, complies with American society of testing 15 28 materials designation D-4806-95b, and may be denatured only as 15 29 specified in Code of Federal Regulations, Titles 20, 21, and 15 30 27. Alcohol and denatured ethanol have the same meaning in 15 31 this chapter. 15 32 NEW SUBSECTION. 18A. "Racing fuel" means leaded gasoline 15 33 of one hundred ten octane or more that does not meet American 15 34 society of testing materials designation D-4814 for gasoline 15 35 and is sold in bulk for use in nonregistered motor vehicles. 16 1 Sec. 28. Section 452A.2, subsection 17, paragraph a, Code 16 2 Supplement 1999, is amended to read as follows: 16 3 a. All products commonly or commercially known or sold as 16 4 gasoline, including ethanol blended gasoline, casinghead, and 16 5 absorption or natural gasoline, regardless of their 16 6 classifications or uses, and including transmix which serves 16 7 as a buffer between fuel products in the pipeline distribution 16 8 process. 16 9 Sec. 29. Section 452A.3, subsection 5, paragraph a, Code 16 10 Supplement 1999, is amended by adding the following new 16 11 unnumbered paragraph: 16 12 NEW UNNUMBERED PARAGRAPH. Tax shall not be paid when the 16 13 sale of alcohol occurs within a terminal from an alcohol 16 14 manufacturer to an Iowa licensed supplier. The tax shall be 16 15 paid by the Iowa licensed supplier when the invoiced gross 16 16 gallonage of the alcohol or the alcohol part of ethanol 16 17 blended gasoline is withdrawn from a terminal for delivery in 16 18 this state. 16 19 Sec. 30. Section 452A.17, subsection 1, paragraph a, Code 16 20 Supplement 1999, is amended by adding the following new 16 21 subparagraph: 16 22 NEW SUBPARAGRAPH. (10) Racing fuel. 16 23 Sec. 31. Section 453A.2, subsection 3, Code 1999, is 16 24 amended to read as follows: 16 25 3. The Iowa department of public health, a county health 16 26 department, a city health department, or a city may directly 16 27 enforce this section in district court and initiate 16 28 proceedings pursuant to section 453A.22 before a permit- 16 29 issuing authority which issued the permit against a permit 16 30 holder violating this section. 16 31 Sec. 32. EFFECTIVE AND APPLICABILITY DATES. This Act, 16 32 being deemed of immediate importance, takes effect upon 16 33 enactment, except as follows: 16 34 1. Sections 10, 12, 14, 15, 17, 18, 19, 20, 21, and 22 of 16 35 this Act, amending Code sections 424.10, 424.12, 424.15, 17 1 427.1, 427.16, 427C.3, and 427C.7, take effect January 1, 17 2 2001, and apply to claims filed on or after that date. 17 3 2. Sections 24, 25, and 26 of this Act, amending Code 17 4 sections 450.4 and 450.10, take effect July 1, 2000, for 17 5 estates of decedents dying on or after that date. 17 6 EXPLANATION 17 7 This bill amends various tax provisions of state law. 17 8 Code section 15.331A is amended to allow a business which 17 9 is eligible to receive benefits under the new jobs and income 17 10 Act to file a claim for refund of sales and use tax paid by 17 11 the contractor under a building contract within one year of 17 12 the project's completion rather than the six months previously 17 13 allowed. 17 14 Code section 404.4 is amended to specify that the length of 17 15 time over which an urban revitalization property tax exemption 17 16 may be allowed in situations where a timely application for 17 17 exemption was not filed is equal to the number of remaining 17 18 years left in the exemption schedule selected. 17 19 Code section 421.17, subsection 16, is amended to expand 17 20 the scope of the technical advice received from other state 17 21 agencies to include that related to all taxes administered by 17 22 the department rather than just property taxes. 17 23 Code section 422.47 is amended to delete subsection 2, 17 24 which is obsolete as the provision applies to the refund of 17 25 the excess tax paid on a construction contract fully executed 17 26 prior to July 1, 1992, when the sales tax rate was increased 17 27 from four cents to five cents. 17 28 Code section 422.110 is amended to replace the words 17 29 "eligible purchasers" with the word "distributors" to reflect 17 30 more accurate terminology as defined in Code chapter 452A. 17 31 Code section 422A.1 is amended to impose a duty upon the 17 32 county auditor to notify, within 10 days, the director of 17 33 revenue and finance of the outcome of the election favoring 17 34 the imposition, repeal, or rate change of the local hotel and 17 35 motel tax. 18 1 Code sections 422B.8 and 422E.3 are amended to impose local 18 2 options sales and services tax only on motor fuels and special 18 3 fuels in which tax pursuant to Code chapter 452A has not been 18 4 imposed and, if paid, has not nor cannot be refunded. Also 18 5 the Code sections are amended so that communication services 18 6 are subject to local option "use" taxes if the seller is not 18 7 required to collect local option "sales" taxes. The local 18 8 option use taxes are imposed on the same basis as the state- 18 9 imposed use tax. The local option taxes involved are the 18 10 county-imposed local option tax and the school infrastructure 18 11 local option tax. 18 12 Code section 423.2 is amended to impose use tax on 18 13 communication services which were previously subject only to 18 14 sales tax. The result is that communication services 18 15 furnished outside Iowa can be taxed if the product or result 18 16 of the communication service is used here. In the past, only 18 17 communication services furnished inside this state could be 18 18 taxed. 18 19 Code section 424.10 and Code section 424.15 are amended to 18 20 reduce the period for assessing the environmental protection 18 21 charge or for filing a claim for refund of an environmental 18 22 protection charge paid from five to three years. This 18 23 promotes consistency by bringing those periods into harmony 18 24 with the time allowed for assessing or filing a claim for 18 25 refund of sales or use tax paid. 18 26 Code section 424.10, subsection 2, and Code section 424.13 18 27 are amended to replace the word "tax" with the word "charge". 18 28 Code section 424.3 imposes a "petroleum diminution charge" and 18 29 not a "petroleum diminution tax". Code section 424.10, 18 30 subsection 2, is also amended to change the reference to 18 31 "taxpayer" to "person against whom (a charge) is assessed". 18 32 Code section 424.12 is amended to reduce the requirement 18 33 that depositors of underground petroleum must keep records 18 34 from a period of five years to a period of three years for 18 35 purposes of the environmental protection charge. 19 1 Code sections 427.1, subsection 14, 427.1, subsection 20, 19 2 427.1, subsection 22, 427.1, subsection 30, 427.16, subsection 19 3 2, 427C.3, and 427C.7 are amended to change the dates for 19 4 filing claims for various property tax exemptions to February 19 5 1 for purposes of uniformity. 19 6 Code section 427.1, subsection 16, is amended to specify 19 7 the effective date of the order when the director revokes or 19 8 modifies a property tax exemption for a specific year either 19 9 on the director's own motion or upon application by a 19 10 taxpayer. 19 11 Code section 428A.8 is amended to provide that any 19 12 additional tax owed will be collected by the department in the 19 13 same manner as individual income tax. This amendment is 19 14 necessary because there is no provision in Code chapter 428A 19 15 to collect unpaid real estate transfer taxes. 19 16 Code section 450.4, subsection 5, is amended to allow 19 17 distributions to beneficiaries to be exempt from Iowa 19 18 inheritance tax whether such distributions are lump sum in 19 19 nature or in the form of installments. Installment payments 19 20 are currently exempt from tax. Code section 450.4 is also 19 21 amended to provide for the exemption from Iowa inheritance tax 19 22 of distributions from nonresident employment-related pensions 19 23 and pension income excluded from net income under Code section 19 24 422.7, subsection 31. This amendment relates to Code section 19 25 422.7, subsection 31, and Code section 422.8, which exempt 19 26 such distributions from Iowa income tax. 19 27 Code section 450.10 is amended to remove outdated 19 28 reciprocity language and to include additional language to 19 29 specify the tax treatment of fraternal and social 19 30 organizations. 19 31 Code section 452A.2 is amended to add definitions for 19 32 "denatured alcohol" and "racing fuel". 19 33 Code section 452A.2, subsection 17, paragraph "a", is 19 34 amended to redefine "motor fuel" to include ethanol blended 19 35 gasoline. 20 1 Code section 452A.3, subsection 5, paragraph "a", is 20 2 amended to provide that the tax on alcohol be paid when it is 20 3 withdrawn from the terminal rather than when it is sold within 20 4 the terminal as is the case under present law. 20 5 Code section 452A.17, subsection 1, paragraph "a", is 20 6 amended to permit a refund of tax paid on fuel used for 20 7 racing. This change is being made to conform with federal 20 8 regulations. 20 9 Code section 453A.2, subsection 3, is amended to specify 20 10 that an appeal of a cigarette permit suspension or revocation 20 11 must be made to the authority that issued the permit. Cities 20 12 and counties issue permits to retail establishments in their 20 13 jurisdictions and the department of revenue and finance issues 20 14 distributor, manufacturer, wholesaler, and vendor permits. 20 15 The bill takes effect upon enactment and some provisions 20 16 have different effective and applicability dates. 20 17 LSB 5254DP 78 20 18 mg/gg/8
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