Text: SSB03235 Text: SSB03237 Text: SSB03200 - SSB03299 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 422.110, unnumbered paragraph 1, Code 1 2 Supplement 1999, is amended to read as follows: 1 3 In lieu of the fuel tax refund provided in section 452A.17, 1 4 a person or corporation subject to taxation under divisions II 1 5 or III of this chapter may elect to receive an income tax 1 6 credit. The person or corporation which elects to receive an 1 7 income tax credit shall cancel its refund permit obtained 1 8 under section 452A.18 within thirty days after the first day 1 9 of its tax year or the permit becomes invalid at that time. 1 10 For the purposes of this section, "person" includes a person 1 11 claiming a tax credit based upon the person's pro rata share 1 12 of the earnings from a partnership, limited liability company, 1 13 or corporation which is not subject to a tax under division II 1 14 or III of this chapter as a partnership, limited liability 1 15 company, or corporation. If the election to receive an income 1 16 tax credit has been made, it remains effective for at least 1 17 one tax year, and for subsequent tax years unless a change is 1 18 requested and a new refund permit applied for within thirty 1 19 days after the first day of the person's or corporation's tax 1 20 year. The income tax credit shall be the amount of the Iowa 1 21 fuel tax paid on fuel purchased by the person or corporation 1 22 and is subject to the conditions provided in section 452A.17 1 23 with the exception that the income tax credit is not available 1 24 for refunds relating to casualty losses, transport diversions, 1 25 pumping credits, blending errors, idle time, power takeoffs, 1 26 reefer units, and exports byeligible purchasersdistributors. 1 27 Sec. 2. Section 422B.8, unnumbered paragraph 1, Code 1 28 Supplement 1999, is amended to read as follows: 1 29 A local sales and services tax at the rate of not more than 1 30 one percent may be imposed by a county on the gross receipts 1 31 taxed by the state under chapter 422, division IV. A local 1 32 sales and services tax shall be imposed on the same basis as 1 33 the state sales and services tax or in the case of the use of 1 34 natural gas, natural gas service, electricity, or electric 1 35 service on the same basis as the state use tax and shall not 2 1 be imposed on the sale of any property or on any service not 2 2 taxed by the state, except the tax shall not be imposed on the 2 3 gross receipts from the sale of motor fuel or special fuel as 2 4 defined in chapter 452A which is consumed for highway use or 2 5 in watercraft or aircraft if the fuel tax is paid on the 2 6 transaction and a refund has not or will not be allowed, on 2 7 the gross receipts from the rental of rooms, apartments, or 2 8 sleeping quarters which are taxed under chapter 422A during 2 9 the period the hotel and motel tax is imposed, on the gross 2 10 receipts from the sale of equipment by the state department of 2 11 transportation, on the gross receipts from the sale of self- 2 12 propelled building equipment, pile drivers, motorized 2 13 scaffolding, or attachments customarily drawn or attached to 2 14 self-propelled building equipment, pile drivers, and motorized 2 15 scaffolding, including auxiliary attachments which improve the 2 16 performance, safety, operation, or efficiency of the equipment 2 17 and replacement parts and are directly and primarily used by 2 18 contractors, subcontractors, and builders for new 2 19 construction, reconstruction, alterations, expansion, or 2 20 remodeling of real property or structures, and on the gross 2 21 receipts from the sale of a lottery ticket or share in a 2 22 lottery game conducted pursuant to chapter 99E and except the 2 23 tax shall not be imposed on the gross receipts from the sale 2 24 or use of natural gas, natural gas service, electricity, or 2 25 electric service in a city or county where the gross receipts 2 26 from the sale of natural gas or electric energy are subject to 2 27 a franchise fee or user fee during the period the franchise or 2 28 user fee is imposed. A local sales and services tax is 2 29 applicable to transactions within those incorporated and 2 30 unincorporated areas of the county where it is imposed and 2 31 shall be collected by all persons required to collect state 2 32 gross receipts taxes. However, a person required to collect 2 33 state retail sales tax under chapter 422, division IV, is not 2 34 required to collect local sales and services tax on 2 35 transactions delivered within the area where the local sales 3 1 and services tax is imposed unless the person has physical 3 2 presence in that taxing area. All cities contiguous to each 3 3 other shall be treated as part of one incorporated area and 3 4 the tax would be imposed in each of those contiguous cities 3 5 only if the majority of those voting in the total area covered 3 6 by the contiguous cities favor its imposition. 3 7 Sec. 3. Section 422E.3, subsection 2, Code Supplement 3 8 1999, is amended to read as follows: 3 9 2. The tax shall be imposed on the same basis as the state 3 10 sales and services tax or in the case of the use of natural 3 11 gas, natural gas service, electricity, or electric service on 3 12 the same basis as the state use tax and shall not be imposed 3 13 on the sale of any property or on any service not taxed by the 3 14 state, except the tax shall not be imposed on the gross 3 15 receipts from the sale of motor fuel or special fuel as 3 16 defined in chapter 452A which is consumed for highway use or 3 17 in watercraft or aircraft if the fuel tax is paid on the 3 18 transaction and a refund has not or will not be allowed, on 3 19 the gross receipts from the rental of rooms, apartments, or 3 20 sleeping quarters which are taxed under chapter 422A during 3 21 the period the hotel and motel tax is imposed, on the gross 3 22 receipts from the sale of equipment by the state department of 3 23 transportation, on the gross receipts from the sale of self- 3 24 propelled building equipment, pile drivers, motorized 3 25 scaffolding, or attachments customarily drawn or attached to 3 26 self-propelled building equipment, pile drivers, and motorized 3 27 scaffolding, including auxiliary attachments which improve the 3 28 performance, safety, operation, or efficiency of the 3 29 equipment, and replacement parts and are directly and 3 30 primarily used by contractors, subcontractors, and builders 3 31 for new construction, reconstruction, alterations, expansion, 3 32 or remodeling of real property or structures, and on the gross 3 33 receipts from the sale of a lottery ticket or share in a 3 34 lottery game conducted pursuant to chapter 99E and except the 3 35 tax shall not be imposed on the gross receipts from the sale 4 1 or use of natural gas, natural gas service, electricity, or 4 2 electric service in a city or county where the gross receipts 4 3 from the sale of natural gas or electric energy are subject to 4 4 a franchise fee or user fee during the period the franchise or 4 5 user fee is imposed. 4 6 Sec. 4. Section 452A.2, Code Supplement 1999, is amended 4 7 by adding the following new subsections: 4 8 NEW SUBSECTION. 4A. "Denatured ethanol" means ethanol 4 9 that is to be blended with gasoline, has been derived from 4 10 cereal grains, complies with American society of testing 4 11 materials designation D-4806-95b, and may be denatured only as 4 12 specified in Code of Federal Regulations, Titles 20, 21, and 4 13 27. Alcohol and denatured ethanol have the same meaning in 4 14 this chapter. 4 15 NEW SUBSECTION. 18A. "Racing fuel" means leaded gasoline 4 16 of one hundred ten octane or more that does not meet American 4 17 society of testing materials designation D-4814 for gasoline 4 18 and is sold in bulk for use in nonregistered motor vehicles. 4 19 Sec. 5. Section 452A.2, subsection 17, paragraph a, Code 4 20 Supplement 1999, is amended to read as follows: 4 21 a. All products commonly or commercially known or sold as 4 22 gasoline, including ethanol blended gasoline, casinghead, and 4 23 absorption or natural gasoline, regardless of their 4 24 classifications or uses, and including transmix which serves 4 25 as a buffer between fuel products in the pipeline distribution 4 26 process. 4 27 Sec. 6. Section 452A.3, subsection 5, paragraph a, Code 4 28 Supplement 1999, is amended by adding the following new 4 29 unnumbered paragraph: 4 30 NEW UNNUMBERED PARAGRAPH. Tax shall not be paid when the 4 31 sale of alcohol occurs within a terminal from an alcohol 4 32 manufacturer to an Iowa licensed supplier. The tax shall be 4 33 paid by the Iowa licensed supplier when the invoiced gross 4 34 gallonage of the alcohol or the alcohol part of ethanol 4 35 blended gasoline is withdrawn from a terminal for delivery in 5 1 this state. 5 2 Sec. 7. Section 452A.17, subsection 1, paragraph a, Code 5 3 Supplement 1999, is amended by adding the following new 5 4 subparagraph: 5 5 NEW SUBPARAGRAPH. (10) Racing fuel. 5 6 Sec. 8. EFFECTIVE DATE. This Act, being deemed of 5 7 immediate importance, takes effect upon enactment. 5 8 EXPLANATION 5 9 This bill makes numerous changes in the administration of 5 10 state and local taxation of motor fuel and special fuel as 5 11 follows: 5 12 Code section 422.110 is amended to replace the words 5 13 "eligible purchasers" with the word "distributors" to reflect 5 14 more accurate terminology as defined in Code chapter 452A. 5 15 Code sections 422B.8 and 422E.3 are amended to impose local 5 16 options sales and services tax only on motor fuels and special 5 17 fuels in which tax pursuant to Code chapter 452A has not been 5 18 imposed and, if paid, has not nor cannot be refunded. 5 19 Code section 452A.2 is amended to add definitions for 5 20 "denatured alcohol" and "racing fuel". 5 21 Code section 452A.2, subsection 17, paragraph "a", is 5 22 amended to redefine "motor fuel" to include ethanol blended 5 23 gasoline. 5 24 Code section 452A.3, subsection 5, paragraph "a", is 5 25 amended to provide that the tax on alcohol be paid when it is 5 26 withdrawn from the terminal rather than when it is sold within 5 27 the terminal as is the case under present law. 5 28 Code section 452A.17, subsection 1, paragraph "a", is 5 29 amended to permit a refund of tax paid on fuel used for 5 30 racing. This change is being made to conform with federal 5 31 regulations. 5 32 The bill takes effect upon enactment. 5 33 LSB 7236SC 78 5 34 mg/gg/8
Text: SSB03235 Text: SSB03237 Text: SSB03200 - SSB03299 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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