Text: H01919                            Text: H01921
Text: H01900 - H01999                   Text: H Index
Bills and Amendments: General Index     Bill History: General Index



House Amendment 1920

Amendment Text

PAG LIN
  1  1    Amend House File 739 as follows:
  1  2    #1.  Page 1, line 12, by inserting after the word
  1  3 "collected" the following:  "prior to the effective
  1  4 date of this Act".
  1  5    #2.  Page 1, line 13, by inserting after the word
  1  6 "section." the following:  "A school district may also
  1  7 apply amounts received from the school district sales
  1  8 and use tax fund established in section 293.1 for the
  1  9 purposes of this section."
  1 10    #3.  Page 1, by inserting after line 13, the
  1 11 following:
  1 12    "Sec.    .  NEW SECTION.  293.1  SCHOOL DISTRICT
  1 13 SALES AND USE TAX FUND.
  1 14    1.  A school district sales and use tax fund is
  1 15 created as a separate and distinct fund in the state
  1 16 treasury under the control of the department of
  1 17 revenue and finance.  Moneys in the fund include
  1 18 revenues credited to the fund pursuant to section
  1 19 422.69, subsection 2, and section 423.24,
  1 20 appropriations made to the fund and other moneys
  1 21 deposited into the fund.  The moneys credited in a
  1 22 fiscal year to the fund shall be distributed as
  1 23 follows:
  1 24    a.  A school district located in whole or in part
  1 25 in a county that had in effect on March 31, 2001, the
  1 26 local sales and services tax for school infrastructure
  1 27 purposes under chapter 422E shall receive an amount
  1 28 equal to its guaranteed school infrastructure amount
  1 29 as calculated under subsection 2 if the board of
  1 30 directors notifies the director of revenue and finance
  1 31 that the school district wants to receive its
  1 32 guaranteed school infrastructure amount.  The
  1 33 notification shall be provided by July 1, 2001.  If
  1 34 notification is not received by July 1, 2001, the
  1 35 school district shall receive moneys pursuant to
  1 36 paragraph "b".  Nothing in this chapter shall prevent
  1 37 a school district from using its guaranteed school
  1 38 infrastructure amount to pay principle and interest on
  1 39 obligations issued pursuant to section 422E.4.
  1 40    A school district receiving moneys pursuant to this
  1 41 paragraph shall cease to receive its guaranteed school
  1 42 infrastructure amount and shall receive moneys
  1 43 pursuant to paragraph "b" starting with the fiscal
  1 44 year immediately following the fiscal year in which
  1 45 occurs the end of the original ten-year period or the
  1 46 date listed on the original ballot proposition,
  1 47 whichever is the earlier, as provided in chapter 422E.
  1 48 A school district may adopt a plan, as provided in
  1 49 section 293.2, subsection 2, to anticipate moneys it
  1 50 will receive pursuant to paragraph "b".  A school
  2  1 district receiving moneys pursuant to this paragraph
  2  2 may elect to receive moneys pursuant to paragraph "b"
  2  3 by providing notification to receive moneys pursuant
  2  4 to paragraph "b" to the director of revenue and
  2  5 finance and the director of the department of
  2  6 management by February 15 preceding the fiscal year
  2  7 for which the election will apply.  Once a school
  2  8 district makes this election it is irrevocable.
  2  9    b.  Moneys remaining after computations made
  2 10 pursuant to paragraph "a" shall be distributed to
  2 11 school districts not receiving moneys under paragraph
  2 12 "a" on a per student basis calculated by the director
  2 13 of revenue and finance by dividing the moneys
  2 14 available during the fiscal year by the combined
  2 15 actual enrollment for all school districts receiving
  2 16 distributions under this paragraph.
  2 17    The combined actual enrollment for school
  2 18 districts, for purposes of this paragraph, shall be
  2 19 calculated by adding together the actual enrollment
  2 20 for each school district receiving distributions under
  2 21 this paragraph as determined by the department of
  2 22 management based on the actual enrollment figures
  2 23 reported by October 1 to the department of management
  2 24 by the department of education pursuant to section
  2 25 257.6, subsection 1.  The combined actual enrollment
  2 26 count shall be forwarded to the director of revenue
  2 27 and finance by March 1, annually, for purposes of
  2 28 supplying estimated tax payment figures and making
  2 29 estimated tax payments pursuant to subsection 3 for
  2 30 the following fiscal year.
  2 31    2.  a.  For purposes of distributions under
  2 32 subsection 1, paragraph "a", the school district's
  2 33 guaranteed school infrastructure amount shall be
  2 34 calculated according to the following formula:
  2 35    The district's guaranteed school infrastructure
  2 36 amount equals the product of the county guaranteed
  2 37 school infrastructure amount times the district's
  2 38 county actual enrollment divided by the county
  2 39 combined actual enrollment.
  2 40    b.  For purposes of the formula in paragraph "a":
  2 41    (1)  "Base year" means the fiscal year beginning
  2 42 July 1, 2000.
  2 43    (2)  "Base year county taxable sales percentage"
  2 44 means the percentage that the taxable sales in the
  2 45 county during the base year is of the total state
  2 46 taxable sales during the base year.
  2 47    (3)  "County combined actual enrollment" means the
  2 48 actual enrollment figures determined by the department
  2 49 of management for the county based on the actual
  2 50 enrollment figures reported by October 1 to the
  3  1 department of management by the department of
  3  2 education pursuant to section 257.6, subsection 1.
  3  3    (4)  "County guaranteed school infrastructure
  3  4 amount" means an amount equal to the product of the
  3  5 county's chapter 422E proportionate share times the
  3  6 amount deposited in the school district sales and use
  3  7 tax fund for the current year times the current year
  3  8 county taxable sales percentage divided by the base
  3  9 year county taxable sales percentage.
  3 10    (5)  "County's chapter 422E proportionate share"
  3 11 means the percentage that the annualized revenues
  3 12 received in the county under chapter 422E for the base
  3 13 year is of one-fifth of the total state sales and use
  3 14 tax revenues collected for deposit into the general
  3 15 fund of the state for the base year.
  3 16    (6)  "Current year" means the fiscal year for which
  3 17 distributions under this section are being made.
  3 18    (7)  "Current year county taxable sales percentage"
  3 19 means the percentage that the taxable sales in the
  3 20 county during the current fiscal year is of the total
  3 21 state taxable sales during the current fiscal year.
  3 22    (8) "District's county actual enrollment" means the
  3 23 actual enrollment of the school district that attends
  3 24 school in the county for which the county combined
  3 25 actual enrollment is determined.
  3 26    (9)  "Taxable sales" means sales subject to the
  3 27 state sales and services tax under chapter 422,
  3 28 division IV.
  3 29    3.  a.  The director of revenue and finance within
  3 30 fifteen days of the beginning of each fiscal year
  3 31 shall send to each school district an estimate of the
  3 32 amount of tax moneys each school district will receive
  3 33 for the year and for each quarter of the year.  At the
  3 34 end of each quarter, the director may revise the
  3 35 estimates for the year and remaining quarters.
  3 36    b.  The director shall remit ninety-five percent of
  3 37 the estimated tax receipts for the school district to
  3 38 the school district on or before September 30 of the
  3 39 fiscal year and on or before the last day of each
  3 40 following quarter.
  3 41    c.  The director shall remit a final payment of the
  3 42 remainder of tax moneys due for the fiscal year before
  3 43 November 10 of the next fiscal year.  If an
  3 44 overpayment has resulted during the previous fiscal
  3 45 year, the November payment shall be adjusted to
  3 46 reflect any overpayment.
  3 47    d.  If the distributions are to school districts
  3 48 described in subsection 1, paragraph "a", the payments
  3 49 to these school districts shall be done on a monthly
  3 50 basis beginning with the month of August.
  4  1    Sec.    .  NEW SECTION.  293.2  USE OF SCHOOL
  4  2 DISTRICT SALES AND USE TAX FUND MONEYS.
  4  3    1.  A school district receiving moneys from the
  4  4 school district sales and use tax fund under section
  4  5 293.1, subsection 1, paragraph "a", shall use the
  4  6 moneys as provided on the original ballot proposition
  4  7 pursuant to chapter 422E, for the payment of principal
  4  8 and interest on general obligation bonds issued
  4  9 pursuant to chapter 296, or section 298.20 or loan
  4 10 agreements under section 297.36, for payments made
  4 11 pursuant to lease or lease-purchase agreements, or for
  4 12 payment of principal and interest on bonds issued
  4 13 under sections 293.3 and 422E.4.
  4 14    2.  a.  Moneys received by a school district from
  4 15 the school district sales and use tax fund under
  4 16 section 293.1, subsection 1, paragraph "b", shall be
  4 17 spent for infrastructure purposes only according to a
  4 18 plan developed by the board of directors.  The plan
  4 19 may apply to more than one fiscal year.  Prior to
  4 20 adoption of the plan, the board of directors shall
  4 21 hold a public hearing on the question of approval of
  4 22 the proposed plan.  The board shall set forth its
  4 23 proposal and shall publish the notice of the time and
  4 24 place of a public hearing on the proposed plan.
  4 25 Notice of the time and place of the public hearing
  4 26 shall be published not less than ten nor more than
  4 27 twenty days before the public hearing in a newspaper
  4 28 which is a newspaper of general circulation in the
  4 29 school district.  At the hearing, or no later than
  4 30 thirty days after the date of the hearing, the board
  4 31 shall take action to adopt the proposed plan.
  4 32    b.  If the board adopts the plan, moneys received
  4 33 shall be used according to the plan unless within
  4 34 twenty-eight days following the action of the board,
  4 35 the secretary of the board receives a petition
  4 36 containing signatures of registered voters equal in
  4 37 number to five percent of the voters in the school
  4 38 district who voted at the last general election,
  4 39 asking that an election be called to approve or
  4 40 disapprove the action of the board.  The board shall
  4 41 either rescind its action or direct the county
  4 42 commissioner of elections to submit the question to
  4 43 the registered voters of the school district at the
  4 44 next following regular school election or a special
  4 45 election.  If a majority of those voting on the
  4 46 question at the election favors disapproval of the
  4 47 action of the board, the district shall use the moneys
  4 48 received as provided in paragraph "c" for the fiscal
  4 49 year.
  4 50    At the expiration of the twenty-eight day period,
  5  1 if no petition is filed, the board shall use the
  5  2 moneys received according to the plan for the duration
  5  3 of the plan.  However, the board may, at anytime,
  5  4 expend a greater share of moneys received for property
  5  5 tax relief than otherwise specified in the plan.
  5  6    c.  If an election is held and the plan is
  5  7 disapproved, as provided in paragraph "b", or if a
  5  8 plan is not approved by the board, moneys received by
  5  9 a school district shall be used for the fiscal year to
  5 10 reduce the following levies in the following order:
  5 11    (1)  Bond levies under sections 298.18 and 298.18A
  5 12 and other debt levies until the moneys received or the
  5 13 levies are reduced to zero.
  5 14    (2)  The physical plant and equipment levy under
  5 15 section 298.2, until the moneys received or the levy
  5 16 is reduced to zero.
  5 17    (3)  The public educational and recreational
  5 18 activities levy under section 300.2, until the moneys
  5 19 received or the levy is reduced to zero.
  5 20    (4)  The schoolhouse tax levy under section 278.1,
  5 21 subsection 7, Code 1989, until the moneys received or
  5 22 the levy is reduced to zero.
  5 23    Any money remaining after the reduction of the
  5 24 levies specified in this paragraph may be used for any
  5 25 lawful infrastructure purpose of the school district.
  5 26    d.  For purposes of this subsection,
  5 27 "infrastructure purposes" means those purposes for
  5 28 which a school district is authorized to contract
  5 29 indebtedness and issue general obligation bonds under
  5 30 chapter 296 or to expend tax revenues under section
  5 31 298.3, the payment of principal and interest on
  5 32 general obligation bonds issued under chapter 296 or
  5 33 section 298.20 or loan agreements under section
  5 34 297.36, payments made pursuant to a lease or lease-
  5 35 purchase agreement, or the payment of principal and
  5 36 interest on bonds issued under section 293.3 or
  5 37 422E.4.
  5 38    Sec.    .  NEW SECTION.  293.3  BONDING.
  5 39    A school district may issue bonds as provided in
  5 40 this section if it complies with all of the following
  5 41 procedures:
  5 42    1.  A school district may institute proceedings for
  5 43 the issuance of bonds by causing a notice of the
  5 44 proposal to issue the bonds, including a statement of
  5 45 the amount and purpose of the bonds, and the right of
  5 46 voters to petition for an election, to be published at
  5 47 least once in a newspaper of general circulation
  5 48 within the school district at least ten days prior to
  5 49 the meeting at which it is proposed to take action for
  5 50 the issuance of the bonds.
  6  1    If at any time before the date fixed for taking
  6  2 action for the issuance of the bonds, a petition is
  6  3 filed signed by five percent of the registered voters
  6  4 of the school district, asking that the question of
  6  5 issuing the bonds be submitted to the registered
  6  6 voters, the board of directors shall either by
  6  7 resolution declare the proposal to issue the bonds to
  6  8 be abandoned or shall direct the county commissioner
  6  9 of elections to call a special election upon the
  6 10 question of issuing the bonds.  The proposition of
  6 11 issuing bonds under this section is not approved
  6 12 unless the vote in favor of the proposition is equal
  6 13 to at least sixty percent of the vote cast.  If a
  6 14 petition is not filed, or if a petition is filed and
  6 15 the proposition of issuing the bonds is approved at an
  6 16 election, the board of directors may proceed with the
  6 17 authorization and issuance of the bonds.  Bonds may be
  6 18 issued for the purpose of refunding outstanding and
  6 19 previously issued bonds under this section without
  6 20 otherwise complying with the provisions of this
  6 21 section.
  6 22    2.  The provisions of chapter 76 apply to the bonds
  6 23 payable as provided in this subsection, except that
  6 24 the mandatory levy to be assessed pursuant to section
  6 25 76.2 shall be at a rate to generate an amount which
  6 26 together with the receipts from the pledged designated
  6 27 portion of the school district's amount received from
  6 28 the school district sales and use tax fund under
  6 29 section 293.1 is sufficient to pay the interest and
  6 30 principal on the bonds.  All amounts collected as a
  6 31 result of the levy assessed pursuant to section 76.2
  6 32 and paid out for bond principal and interest shall be
  6 33 repaid to the school district from the first available
  6 34 designated portion of the school district's amount
  6 35 received from the school district sales and use tax
  6 36 fund under section 293.1 received in excess of the
  6 37 requirement for the payment of the principal and
  6 38 interest of the bonds and when repaid shall be applied
  6 39 in reduction of property taxes.  The amount of bonds
  6 40 which may be issued under section 76.3 shall be the
  6 41 amount which could be retired from the actual
  6 42 collections of the designated portions of the school
  6 43 district's amount received from the school district
  6 44 sales and use tax fund under section 293.1 for the
  6 45 last four calendar quarters, as certified by the
  6 46 director of revenue and finance.  The amount of tax
  6 47 revenues pledged jointly by other cities or counties
  6 48 may be considered for the purpose of determining the
  6 49 amount of bonds which may be issued.
  6 50    3.  The provisions of this section constitute
  7  1 separate authorization for the issuance of bonds and
  7  2 shall prevail in the event of conflict with any other
  7  3 provisions of state law limiting the amount of bonds
  7  4 which may be issued or the source of payment of the
  7  5 bonds.  Bonds issued under this section shall not
  7  6 limit or restrict the authority of the school district
  7  7 to issue bonds under other provisions of state law.
  7  8    Sec.    .  NEW SECTION.  293.4  REPEAL.
  7  9    This chapter is repealed July 1, 2021, for fiscal
  7 10 years beginning on or after that date.
  7 11    Sec.    .  Section 298.18, unnumbered paragraph 4,
  7 12 Code 2001, is amended by striking the unnumbered
  7 13 paragraph and inserting in lieu thereof the following:
  7 14    If the school corporation's amount received from
  7 15 the school district sales and use tax fund under
  7 16 section 293.1 does not equal or exceed the amount
  7 17 which would be produced by a levy of one dollar
  7 18 thirty-five cents per thousand dollars of the assessed
  7 19 value of the taxable property of the school
  7 20 corporation, the amount estimated and certified to
  7 21 apply on principal and interest for any one year may
  7 22 exceed two dollars and seventy cents per thousand
  7 23 dollars of assessed value by the amount approved by
  7 24 the voters of the school corporation, but not
  7 25 exceeding four dollars and five cents per thousand of
  7 26 the assessed value of the taxable property within any
  7 27 school corporation, provided that the qualified voters
  7 28 of such school corporation have first approved such
  7 29 increased amount at a special election, which may be
  7 30 held at the same time as the regular school election,
  7 31 and provided further that the school corporation's
  7 32 amount received from the school district sales and use
  7 33 tax fund under section 293.1 shall be used to abate an
  7 34 additional levy amount authorized after July 1, 2001.
  7 35 A levy approved prior to July 1, 2001, shall continue
  7 36 to be authorized.  The proposition submitted to the
  7 37 voters at such special election shall be in
  7 38 substantially the following form:
  7 39    Sec.    .  Section 298.18, unnumbered paragraph 5,
  7 40 Code 2001, is amended to read as follows:
  7 41    Shall the board of directors of the ......  (insert
  7 42 name of school corporation) in the County of ......,
  7 43 State of Iowa, be authorized to levy annually a tax
  7 44 exceeding two dollars and seventy cents per thousand
  7 45 dollars, but not exceeding .. dollars and ... cents
  7 46 per thousand dollars of the assessed value of the
  7 47 taxable property within said school corporation to pay
  7 48 the principal of and interest on bonded indebtedness
  7 49 of said school corporation, it being understood that
  7 50 the approval of this proposition shall not limit the
  8  1 source of payment of the bonds and interest but shall
  8  2 only operate to restrict the amount of bonds which may
  8  3 be issued and that the additional levy shall be
  8  4 reduced and abated in any year by the amount of money
  8  5 received from the school district sales and use tax
  8  6 fund under section 293.1?
  8  7    Sec.    .  Section 422.43, subsections 1, 2, 4, 5,
  8  8 6, 7, 10, and 12, Code 2001, are amended to read as
  8  9 follows:
  8 10    1.  There is imposed a tax of five six percent upon
  8 11 the gross receipts from all sales of tangible personal
  8 12 property, consisting of goods, wares, or merchandise,
  8 13 except as otherwise provided in this division, sold at
  8 14 retail in the state to consumers or users; a like rate
  8 15 of tax upon the gross receipts from the sales,
  8 16 furnishing, or service of gas, electricity, water,
  8 17 heat, pay television service, and communication
  8 18 service, including the gross receipts from such sales
  8 19 by any municipal corporation or joint water utility
  8 20 furnishing gas, electricity, water, heat, pay
  8 21 television service, and communication service to the
  8 22 public in its proprietary capacity, except as
  8 23 otherwise provided in this division, when sold at
  8 24 retail in the state to consumers or users; a like rate
  8 25 of tax upon the gross receipts from all sales of
  8 26 tickets or admissions to places of amusement, fairs,
  8 27 and athletic events except those of elementary and
  8 28 secondary educational institutions; a like rate of tax
  8 29 on the gross receipts from an entry fee or like charge
  8 30 imposed solely for the privilege of participating in
  8 31 an activity at a place of amusement, fair, or athletic
  8 32 event unless the gross receipts from the sales of
  8 33 tickets or admissions charges for observing the same
  8 34 activity are taxable under this division; and a like
  8 35 rate of tax upon that part of private club membership
  8 36 fees or charges paid for the privilege of
  8 37 participating in any athletic sports provided club
  8 38 members.
  8 39    2.  There is imposed a tax of five six percent upon
  8 40 the gross receipts derived from the operation of all
  8 41 forms of amusement devices and games of skill, games
  8 42 of chance, raffles, and bingo games as defined in
  8 43 chapter 99B, operated or conducted within the state,
  8 44 the tax to be collected from the operator in the same
  8 45 manner as for the collection of taxes upon the gross
  8 46 receipts of tickets or admission as provided in this
  8 47 section.  The tax shall also be imposed upon the gross
  8 48 receipts derived from the sale of lottery tickets or
  8 49 shares pursuant to chapter 99E.  The tax on the
  8 50 lottery tickets or shares shall be included in the
  9  1 sales price and distributed to the general fund as
  9  2 provided in section 99E.10.
  9  3    4.  There is imposed a tax of five six percent upon
  9  4 the gross receipts from the sales of engraving,
  9  5 photography, retouching, printing, and binding
  9  6 services.  For the purpose of this division, the sales
  9  7 of engraving, photography, retouching, printing, and
  9  8 binding services are sales of tangible property.
  9  9    5.  There is imposed a tax of five six percent upon
  9 10 the gross receipts from the sales of vulcanizing,
  9 11 recapping, and retreading services.  For the purpose
  9 12 of this division, the sales of vulcanizing, recapping,
  9 13 and retreading services are sales of tangible
  9 14 property.
  9 15    6.  There is imposed a tax of five six percent upon
  9 16 the gross receipts from the sales of optional service
  9 17 or warranty contracts, except residential service
  9 18 contracts regulated under chapter 523C, which provide
  9 19 for the furnishing of labor and materials and require
  9 20 the furnishing of any taxable service enumerated under
  9 21 this section.  The gross receipts are subject to tax
  9 22 even if some of the services furnished are not
  9 23 enumerated under this section.  For the purpose of
  9 24 this division, the sale of an optional service or
  9 25 warranty contract, other than a residential service
  9 26 contract regulated under chapter 523C, is a sale of
  9 27 tangible personal property.  Additional sales,
  9 28 services, or use taxes shall not be levied on
  9 29 services, parts, or labor provided under optional
  9 30 service or warranty contracts which are subject to tax
  9 31 under this section.
  9 32    If the optional service or warranty contract is a
  9 33 computer software maintenance or support service
  9 34 contract and there is no separately stated fee for the
  9 35 taxable personal property or for the nontaxable
  9 36 service, the tax of five six percent imposed by this
  9 37 subsection shall be imposed on fifty percent of the
  9 38 gross receipts from the sale of such contract.  If the
  9 39 contract provides for technical support services only,
  9 40 no tax shall be imposed under this subsection.  The
  9 41 provisions of this subsection also apply to the tax
  9 42 imposed by chapter 423.
  9 43    7.  There is imposed a tax of five six percent upon
  9 44 the gross receipts from the renting of rooms,
  9 45 apartments, or sleeping quarters in a hotel, motel,
  9 46 inn, public lodging house, rooming house, mobile home
  9 47 which is tangible personal property, or tourist court,
  9 48 or in any place where sleeping accommodations are
  9 49 furnished to transient guests for rent, whether with
  9 50 or without meals.  "Renting" and "rent" include any
 10  1 kind of direct or indirect charge for such rooms,
 10  2 apartments, or sleeping quarters, or their use.  For
 10  3 the purposes of this division, such renting is
 10  4 regarded as a sale of tangible personal property at
 10  5 retail.  However, this tax does not apply to the gross
 10  6 receipts from the renting of a room, apartment, or
 10  7 sleeping quarters while rented by the same person for
 10  8 a period of more than thirty-one consecutive days.
 10  9    10.  There is imposed a tax of five six percent
 10 10 upon the gross receipts from the rendering,
 10 11 furnishing, or performing of services as defined in
 10 12 section 422.42.
 10 13    12.  A tax of five six percent is imposed upon the
 10 14 gross receipts from the sales of prepaid telephone
 10 15 calling cards and prepaid authorization numbers.  For
 10 16 the purpose of this division, the sales of prepaid
 10 17 telephone calling cards and prepaid authorization
 10 18 numbers are sales of tangible personal property.
 10 19    Sec.    .  Section 422.43, subsection 13, paragraph
 10 20 a, unnumbered paragraph 1, Code 2001, is amended to
 10 21 read as follows:
 10 22    A tax of five six percent is imposed upon the gross
 10 23 receipts from the sales, furnishing, or service of
 10 24 solid waste collection and disposal service.
 10 25    Sec.    .  Section 422.43, Code 2001, is amended by
 10 26 adding the following new subsection:
 10 27    NEW SUBSECTION.  16.  The sales tax rate of six
 10 28 percent is reduced to five percent on July 1, 2021.
 10 29    Sec.    .  Section 422.47, subsection 2, Code 2001,
 10 30 is amended to read as follows:
 10 31    2.  Construction contractors may make application
 10 32 to the department for a refund of the additional one
 10 33 percent tax paid under this division or the additional
 10 34 one percent tax paid under chapter 423 by reason of
 10 35 the increase in the tax from four to five to six
 10 36 percent for taxes paid on goods, wares, or merchandise
 10 37 under the following conditions:
 10 38    a.  The goods, wares, or merchandise are
 10 39 incorporated into an improvement to real estate in
 10 40 fulfillment of a written contract fully executed prior
 10 41 to July 1, 1992 2001.  The refund shall not apply to
 10 42 equipment transferred in fulfillment of a mixed
 10 43 construction contract.
 10 44    b.  The contractor has paid to the department or to
 10 45 a retailer the full five six percent tax.
 10 46    c.  The claim is filed on forms provided by the
 10 47 department and is filed within one year of the date
 10 48 the tax is paid.
 10 49    A contractor who makes an erroneous application for
 10 50 refund shall be liable for payment of the excess
 11  1 refund paid plus interest at the rate in effect under
 11  2 section 421.7.  In addition, a contractor who
 11  3 willfully makes a false application for refund is
 11  4 guilty of a simple misdemeanor and is liable for a
 11  5 penalty equal to fifty percent of the excess refund
 11  6 claimed.  Excess refunds, penalties, and interest due
 11  7 under this subsection may be enforced and collected in
 11  8 the same manner as the tax imposed by this division.
 11  9    Sec.    .  Section 422.69, subsection 2, Code 2001,
 11 10 is amended to read as follows:
 11 11    2.  a.  Unless Except as provided in paragraph "b",
 11 12 or as otherwise provided, the fees, taxes, interest
 11 13 and penalties collected under this chapter shall be
 11 14 credited to the general fund.
 11 15    b.  One-sixth of the fees, taxes, interest, and
 11 16 penalties collected pursuant to division IV shall be
 11 17 credited to the school district sales and use tax fund
 11 18 created in section 293.1.  This paragraph is stricken
 11 19 July 1, 2021.
 11 20    Sec.    .  Section 422E.1, Code 2001, is amended by
 11 21 adding the following new subsection:
 11 22    NEW SUBSECTION.  4.  a.  This chapter does not
 11 23 apply to any county for the period beginning after the
 11 24 effective date of this Act and ending January 1, 2021.
 11 25    b.  In the case of a county that has in effect on
 11 26 March 31, 2001, a local sales and services tax for
 11 27 school infrastructure purposes, the increase in the
 11 28 state sales and services tax under chapter 422,
 11 29 division IV, from five percent to six percent shall
 11 30 replace the county's local sales and services tax for
 11 31 school infrastructure purposes and to this extent the
 11 32 local sales and services tax for school infrastructure
 11 33 purposes is repealed.
 11 34    Sec.    .  Section 423.2, Code 2001, is amended to
 11 35 read as follows:
 11 36    423.2  IMPOSITION OF TAX.
 11 37    An excise tax is imposed on the use in this state
 11 38 of tangible personal property, including aircraft
 11 39 subject to registration under section 328.20,
 11 40 purchased for use in this state, at the rate of five
 11 41 six percent of the purchase price of the property.  An
 11 42 excise tax is imposed on the use of manufactured
 11 43 housing in this state at the rate of five six percent
 11 44 of the purchase price if the manufactured housing is
 11 45 sold in the form of tangible personal property and at
 11 46 the rate of five six percent of the installed purchase
 11 47 price if the manufactured housing is sold in the form
 11 48 of realty.  An excise tax is imposed on the use in
 11 49 this state of vehicles subject to registration or
 11 50 subject only to the issuance of a certificate of title
 12  1 at the rate of five percent.  An excise tax is imposed
 12  2 on the use of leased vehicles at the rate of five
 12  3 percent of the amount otherwise subject to tax as
 12  4 calculated pursuant to section 423.7A.  The excise tax
 12  5 is imposed upon every person using the property within
 12  6 this state until the tax has been paid directly to the
 12  7 county treasurer or the state department of
 12  8 transportation, to a retailer, or to the department.
 12  9 An excise tax is imposed on the use in this state of
 12 10 services enumerated in section 422.43 at the rate of
 12 11 five six percent.  This tax is applicable where
 12 12 services are rendered, furnished, or performed in this
 12 13 state or where the product or result of the service is
 12 14 used in this state.  This tax is imposed on every
 12 15 person using the services or the product of the
 12 16 services in this state until the user has paid the tax
 12 17 either to an Iowa use tax permit holder or to the
 12 18 department.  The rate of use tax of six percent shall
 12 19 be reduced to five percent beginning July 1, 2021.
 12 20    Sec.    .  Section 423.24, Code 2001, is amended by
 12 21 adding the following new subsection:
 12 22    NEW SUBSECTION.  2A.  One-sixth of all other
 12 23 revenue arising under the operation of this chapter
 12 24 shall be credited to the school district sales and use
 12 25 tax fund created in section 293.1.  This subsection is
 12 26 stricken July 1, 2021.
 12 27    Sec.    .  Section 423.24, subsection 3, Code 2001,
 12 28 is amended to read as follows:
 12 29    3.  All other revenue arising under the operation
 12 30 of this chapter not credited as specified in
 12 31 subsections 1, 2, and 2A shall be credited to the
 12 32 general fund of the state.
 12 33    Sec.    .  APPLICABILITY.  This section applies in
 12 34 regard to the increase in the state sales and use
 12 35 taxes from five to six percent.  The six percent rate
 12 36 applies to all sales of taxable personal property,
 12 37 consisting of goods, wares, or merchandise if delivery
 12 38 occurs on or after July 1, 2001.  The six percent use
 12 39 tax rate applies to the use of property when the first
 12 40 taxable use in this state occurs on or after July 1,
 12 41 2001.  The six percent rate applies to the gross
 12 42 receipts from the sale, furnishing, or service of gas,
 12 43 electricity, water, heat, pay television service, and
 12 44 communication service if the date of billing the
 12 45 customer is on or after July 1, 2001.  In the case of
 12 46 a service contract entered into prior to July 1, 2001,
 12 47 which contract calls for periodic payments, the six
 12 48 percent rate applies to those payments made or due on
 12 49 or after July 1, 2001.  This periodic payment applies,
 12 50 but is not limited to, tickets or admissions, private
 13  1 club membership fees, sources of amusement, equipment
 13  2 rental, dry cleaning, reducing salons, dance schools,
 13  3 and all other services subject to tax, except the
 13  4 aforementioned utility services which are subject to a
 13  5 special transitional rule.  Unlike periodic payments
 13  6 under service contracts, installment sales of goods,
 13  7 wares, and merchandise are subject to the full amount
 13  8 of sales or use tax when the sales contract is entered
 13  9 into or the property is first used in Iowa.
 13 10       .  The sections of this Act enacting new Code
 13 11 sections 293.1 and 293.2, being deemed of immediate
 13 12 importance, take effect upon enactment.
 13 13    Sec.    .  This Act is repealed July 1, 2021, for
 13 14 sales and use tax transactions occurring or, in the
 13 15 case of utilities, being billed on or after that
 13 16 date."
 13 17    #4.  Title page, by striking lines 1 through 3 and
 13 18 inserting the following:  "An Act relating to the
 13 19 imposition and application of sales and services tax
 13 20 by a political subdivision, including the payment of
 13 21 principal and interest of certain bonds, and providing
 13 22 an effective date." 
 13 23 
 13 24 
 13 25                               
 13 26 RICHARDSON of Warren
 13 27 HF 739.301 79
 13 28 rn/cf
     

Text: H01919                            Text: H01921
Text: H01900 - H01999                   Text: H Index
Bills and Amendments: General Index     Bill History: General Index

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