House Journal: Page 1527: Monday, April 17, 2000
31 is amended by adding the following new paragraph:
32 NEW PARAGRAPH. m. (1) The director may abate
33 unpaid state sales and use taxes and local sales and
34 services taxes owed by a retailer in the event that
35 the retailer failed to collect tax from the purchaser
36 as a result of erroneous written advice issued by the
37 department that was specially directed to the retailer
38 by the department and the retailer is unable to
39 collect the tax, interest, or penalties from the
40 purchaser. Before the tax, interest, and penalties
41 shall be abated on the basis of erroneous written
42 advice, the retailer must present a copy of the
43 retailer's request for written advice to the
44 department and a copy of the department's reply. The
45 department shall not maintain a position against the
46 retailer that is inconsistent with the erroneous
47 written advice, except on the basis of subsequent
48 written advice sent by the department to that
49 retailer, or a change in state or federal law, a
50 reported court case to the contrary, a contrary rule
Page 3
1 adopted by the department, a change in material facts
2 or circumstances relating to the retailer, or the
3 retailer's misrepresentation or incomplete or
4 inadequate representation of material facts and
5 circumstances in requesting the written advice.
6 (2) The director shall abate the unpaid state
7 sales and use taxes and any local sales and services
8 taxes owed by a retailer where the retailer failed to
9 collect the tax from the purchaser on the charges paid
10 for access to on-line computer services as a result of
11 erroneous written advice issued by the department
12 regarding the taxability of charges paid for access to
13 on-line computer services. To qualify for the
14 abatement under this subparagraph, the erroneous
15 written advice shall have been issued by the
16 department prior to July 1, 1999, and shall have been
17 specially directed to the retailer by the department.
18 (3) The director shall prepare quarterly reports
19 summarizing each case in which abatement of tax,
20 interest, or penalties was made. However, the report
21 shall not disclose the identity of the taxpayer. An
22 abatement authorized by this paragraph to a retailer
23 shall not preclude the department from proceeding to
24 collect the liability from a purchaser.
25 Sec. 6. Section 422.45, subsection 56, Code
26 Supplement 1999, is amended to read as follows:
27 56. The gross receipts from charges paid to a
28 provider for access to on-line computer services. For
29 purposes of this subsection, "on-line computer
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League of Women Voters of Iowa
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