House Journal: Page 1530: Monday, April 17, 2000
28 including auxiliary attachments which improve the
29 performance, safety, operation, or efficiency of the
30 equipment and replacement parts and are directly and
31 primarily used by contractors, subcontractors, and
32 builders for new construction, reconstruction,
33 alterations, expansion, or remodeling of real property
34 or structures, and on the gross receipts from the sale
35 of a lottery ticket or share in a lottery game
36 conducted pursuant to chapter 99E and except the tax
37 shall not be imposed on the gross receipts from the
38 sale or use of natural gas, natural gas service,
39 electricity, or electric service in a city or county
40 where the gross receipts from the sale of natural gas
41 or electric energy are subject to a franchise fee or
42 user fee during the period the franchise or user fee
43 is imposed. A local sales and services tax is
44 applicable to transactions within those incorporated
45 and unincorporated areas of the county where it is
46 imposed and shall be collected by all persons required
47 to collect state gross receipts taxes. However, a
48 person required to collect state retail sales tax
49 under chapter 422, division IV, is not required to
50 collect local sales and services tax on transactions
Page 6
1 delivered within the area where the local sales and
2 services tax is imposed unless the person has physical
3 presence in that taxing area. All cities contiguous
4 to each other shall be treated as part of one
5 incorporated area and the tax would be imposed in each
6 of those contiguous cities only if the majority of
7 those voting in the total area covered by the
8 contiguous cities favor its imposition.
9 Sec. 13. Section 422E.3, subsection 2, Code
10 Supplement 1999, is amended to read as follows:
11 2. The tax shall be imposed on the same basis as
12 the state sales and services tax or in the case of the
13 use of natural gas, natural gas service, electricity,
14 or electric service on the same basis as the state use
15 tax and shall not be imposed on the sale of any
16 property or on any service not taxed by the state,
17 except the tax shall not be imposed on the gross
18 receipts from the sale of motor fuel or special fuel
19 as defined in chapter 452A which is consumed for
20 highway use or in watercraft or aircraft if the fuel
21 tax is paid on the transaction and a refund has not or
22 will not be allowed, on the gross receipts from the
23 rental of rooms, apartments, or sleeping quarters
24 which are taxed under chapter 422A during the period
25 the hotel and motel tax is imposed, on the gross
26 receipts from the sale of equipment by the state
© 2000 Cornell College and
League of Women Voters of Iowa
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