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House File 2622

Partial Bill History

Bill Text

PAG LIN
  1  1                                           HOUSE FILE 2622
  1  2  
  1  3                             AN ACT
  1  4 RELATING TO THE ADMINISTRATION OF THE TAX AND RELATED LAWS
  1  5    BY THE DEPARTMENT OF REVENUE AND FINANCE, INCLUDING
  1  6    ADMINISTRATION OF STATE INDIVIDUAL INCOME, CORPORATE
  1  7    INCOME, SALES AND USE, PROPERTY, MOTOR FUEL, SPECIAL FUEL,
  1  8    AND INHERITANCE TAXES, DIRECTING A STUDY, AND INCLUDING
  1  9    EFFECTIVE AND RETROACTIVE APPLICABILITY DATE PROVISIONS.
  1 10  
  1 11 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  1 12  
  1 13    Section 1.  Section 404.4, unnumbered paragraph 2, Code
  1 14 Supplement 2001, is amended to read as follows:
  1 15    An application shall be filed for each new exemption
  1 16 claimed.  The first application for an exemption shall be
  1 17 filed by the owner of the property with the governing body of
  1 18 the city or county in which the property is located by
  1 19 February 1 of the assessment year for which the exemption is
  1 20 first claimed, but not later than the year in which all
  1 21 improvements included in the project are first assessed for
  1 22 taxation, unless or the following two assessment years, in
  1 23 which case the exemption is allowed for the total number of
  1 24 years in the exemption schedule.  However, upon the request of
  1 25 the owner at any time, the governing body of the city or
  1 26 county provides by resolution that the owner may file an
  1 27 application by February 1 of any other assessment year
  1 28 selected by the governing body in which case the exemption is
  1 29 allowed for the number of years remaining in the exemption
  1 30 schedule selected.  The application shall contain, but not be
  1 31 limited to, the following information:  The nature of the
  1 32 improvement, its cost, the estimated or actual date of
  1 33 completion, the tenants that occupied the owner's building on
  1 34 the date the city or county adopted the resolution referred to
  1 35 in section 404.2, subsection 1, and which exemption in section
  2  1 404.3 or in the different schedule, if one has been adopted,
  2  2 will be elected.
  2  3    Sec. 2.  NEW SECTION.  421.17B  ADMINISTRATIVE WAGE
  2  4 ASSIGNMENT COOPERATIVE AGREEMENT.
  2  5    1.  DEFINITIONS.  As used in this section, unless the
  2  6 context otherwise requires:
  2  7    a.  "Employer" means any person or entity that pays an
  2  8 obligor to do a specific task.  "Employer" only includes such
  2  9 a person or entity in an employer-employee relationship and
  2 10 does not include an obligor acting as a contractor,
  2 11 distributor, agent, or in any representative capacity in which
  2 12 the obligor receives any form of consideration.
  2 13    b.  "Employment" means the performance of personal services
  2 14 for another.  "Employment" only includes parties in an
  2 15 employer-employee relationship and does not include one acting
  2 16 as a self-employer, contractor, distributor, agent, or in any
  2 17 representative capacity.
  2 18    c.  "Facility" means the centralized debt collection
  2 19 facility of the department of revenue and finance established
  2 20 pursuant to section 421.17, subsection 34.
  2 21    d.  "Obligor" means a person who is indebted to the state
  2 22 or a state agency for any delinquent accounts, charges, fees,
  2 23 loans, taxes, or other indebtedness due the state or
  2 24 indebtedness being collected by the state.
  2 25    e.  "Wage" means any form of compensation due to an
  2 26 obligor.  "Wage" includes, but is not limited to, wages,
  2 27 salary, bonus, commission, or other payment directly or
  2 28 indirectly related to employment.  If a wage is assigned to
  2 29 the facility, wage only includes a payment in the form of
  2 30 money.
  2 31    2.  PURPOSE AND USE.
  2 32    a.  Notwithstanding other statutory provisions which
  2 33 provide for the execution, attachment, garnishment, or levy
  2 34 against accounts, the facility may utilize the process
  2 35 established in this section to collect delinquent accounts,
  3  1 charges, fees, loans, taxes, or other indebtedness due the
  3  2 facility or being collected by the facility provided all
  3  3 administrative remedies have been waived or exhausted by the
  3  4 obligor.  Any exemptions or exceptions which specifically
  3  5 apply to enforcement of such obligations also apply to this
  3  6 section.
  3  7    Administrative wage assignment under this section is the
  3  8 equivalent of condemning funds under chapter 642.
  3  9    The administrative wage assignment is to be considered an
  3 10 additional means of collection by the facility and not an
  3 11 exclusive means of collection.  If the use of an
  3 12 administrative wage assignment is not successful in collecting
  3 13 an outstanding debt due the facility, the facility may use the
  3 14 collection provisions set forth in chapters 626 and 642.
  3 15    b.  An obligor is subject to this section if the obligor's
  3 16 debt is being collected by the facility.
  3 17    c.  Any amount forwarded to the facility by an employer
  3 18 under this section shall not exceed the delinquent or accrued
  3 19 amount of the obligor's debt being collected by the facility.
  3 20    3.  NOTICE TO THE OBLIGOR.
  3 21    a.  The facility may proceed under this section only if a
  3 22 ten-day notice has been provided to the obligor.  Notice by
  3 23 the facility may be by regular mail to the last known address
  3 24 of the obligor, notifying the obligor that the obligor is
  3 25 subject to this section.  If the facility determines that
  3 26 collection of the debt may be in jeopardy, the facility may
  3 27 request that the employer deliver notice of the wage
  3 28 assignment simultaneous with the remainder of or in lieu of
  3 29 the obligor's compensation due from the employer.
  3 30    The facility may obtain one or more wage assignments of an
  3 31 obligor who is subject to this section.  If the obligor has
  3 32 more than one employer, the facility may receive wage
  3 33 assignments from one or all of the employers until the full
  3 34 debt obligation of the obligor is satisfied.  If an obligor
  3 35 has more than one employer, the facility shall give notice to
  4  1 all employers that the facility seeks to have an assignment of
  4  2 wages.
  4  3    b.  The notice from the facility to the obligor shall
  4  4 contain all of the following:
  4  5    (1)  The name and social security number of the obligor.
  4  6    (2)  A statement that the obligor is believed to have
  4  7 employment with the stated employer.
  4  8    (3)  A statement that pursuant to the provisions of this
  4  9 section, the obligor's wages will be assigned to the facility
  4 10 for payment of the specified debts and that the employer is
  4 11 authorized and required to forward moneys to the facility.
  4 12    (4)  The maximum amount to be forwarded by the employer,
  4 13 which shall not exceed the delinquent or accrued amount of
  4 14 debt being collected by or owed to the facility by the
  4 15 obligor.
  4 16    (5)  The prescribed time frames the employer must meet in
  4 17 forwarding any amounts.
  4 18    (6)  A statement that any challenge to the action must be
  4 19 in writing and must be received by the facility within ten
  4 20 days of the date of the notice to the obligor.
  4 21    (7)  The address of the facility and the account number
  4 22 utilized by the facility for the obligor.
  4 23    (8)  A telephone number, address, and contact name of the
  4 24 facility initiating the action.
  4 25    4.  VERIFICATION OF EMPLOYMENT AND IMMUNITY FROM LIABILITY.
  4 26    a.  The facility may contact an employer to obtain
  4 27 verification of employment, and any specific information from
  4 28 the employer that the facility needs to initiate, effectuate,
  4 29 or maintain collection of the obligation.  Contact with an
  4 30 employer may be by telephone, fax, or by written
  4 31 communication.  The employer may require proof of authority
  4 32 from the person from the facility and the telephone number of
  4 33 the authorized person from the facility before releasing an
  4 34 obligor's employment information by telephone.
  4 35    b.  The employer is immune from any civil or criminal
  5  1 liability for information released by the employer to the
  5  2 facility pursuant to this section.
  5  3    5.  COSTS.  The facility is not liable for any costs
  5  4 incurred or imposed for initiating, effectuating, or
  5  5 maintaining an administrative wage assignment under this
  5  6 section.  Such costs will be the sole responsibility of the
  5  7 obligor and will be added to the amount to be collected by the
  5  8 facility.
  5  9    6.  ADMINISTRATIVE WAGE ASSIGNMENT – NOTICE TO THE
  5 10 EMPLOYER.
  5 11    a.  If an obligor is subject to this section, the facility
  5 12 may initiate an administrative wage assignment to have
  5 13 compensation due the obligor to be assigned by the employer to
  5 14 the facility up to the amount of the full debt to be collected
  5 15 by the facility.
  5 16    b.  The facility shall send a notice to the employer within
  5 17 fourteen days of sending notice of the wage assignment to the
  5 18 obligor.  The notice shall inform the employer of the amount
  5 19 to be assigned to the facility from each wage, salary, or
  5 20 payment period that is due the obligor.  The facility may
  5 21 receive assignment of up to one hundred percent of the
  5 22 obligor's disposable income, salary, or payment for any given
  5 23 period until the full obligation to the facility is paid in
  5 24 full.
  5 25    c.  The notice to the employer shall contain all of the
  5 26 following:
  5 27    (1)  The name and social security number of the obligor.
  5 28    (2)  A statement that the obligor is believed to be
  5 29 employed by the employer.
  5 30    (3)  A statement that pursuant to the provisions of this
  5 31 section, the obligor's wages are subject to assignment and the
  5 32 employer is authorized and required to forward moneys to the
  5 33 facility.
  5 34    (4)  The maximum amount that shall be forwarded by the
  5 35 employer, which shall not exceed the delinquent or accrued
  6  1 amount of debt being collected by or owed to the facility by
  6  2 the obligor.
  6  3    (5)  The prescribed time frame the employer must meet in
  6  4 forwarding any amounts.
  6  5    (6)  The address of the facility and the account number
  6  6 utilized by the facility for the obligor.
  6  7    (7)  A telephone number, address, and name of a contact
  6  8 person with the facility.
  6  9    7.  RESPONSIBILITIES OF EMPLOYER.  Upon receipt of the
  6 10 notice of wage assignment from the facility, the employer
  6 11 shall do all of the following:
  6 12    a.  Immediately give effect to the wage assignment and hold
  6 13 compensation which the obligor has owing to the extent of the
  6 14 debt indicated in the notice from the facility.
  6 15    b.  No sooner than ten days, and no later than twenty days
  6 16 from the date the employer receives the notice of wage
  6 17 assignment, unless notified by the facility of a challenge of
  6 18 the wage assignment by the obligor, the employer shall begin
  6 19 forwarding the obligor's compensation, to the extent required
  6 20 in the notice, to the facility with the obligor's name and
  6 21 social security number, the facility's account number for the
  6 22 obligor, and any other information required in the notice.
  6 23    c.  The employer may assess a fee against the obligor, not
  6 24 to exceed twenty-five dollars, for forwarding of moneys to the
  6 25 facility.  This fee is in addition to the amount owed to or
  6 26 being collected by the facility from the obligor.  If
  6 27 insufficient moneys are available from the obligor's
  6 28 compensation to cover the fee and the amount in the notice,
  6 29 the employer may deduct the fee amount prior to forwarding
  6 30 moneys to the facility and the amount credited to the
  6 31 obligor's account with the facility shall be reduced by the
  6 32 fee amount.  However, if the employer can present evidence to
  6 33 the facility that the employer's costs were in excess of
  6 34 twenty-five dollars and that such costs were necessary and
  6 35 reasonable, then the employer may impose a fee in excess of
  7  1 the twenty-five dollar fee limit.
  7  2    8.  CHALLENGES TO ACTION.
  7  3    a.  Challenges under this section may be initiated only by
  7  4 an obligor.  An administrative wage assignment only occurs
  7  5 after the obligor has waived or exhausted administrative
  7  6 remedies.  Reviews by the facility of a challenge to an
  7  7 administrative wage assignment are not subject to chapter 17A
  7  8 unless the challenge is regarding the validity of the
  7  9 assignment.  Actions under this section are in equity and not
  7 10 actions at law.
  7 11    b.  The obligor challenging the administrative wage
  7 12 assignment shall submit a written challenge to the person
  7 13 identified as the contact for the facility in the notice,
  7 14 within ten days of the date of the notice to the obligor.
  7 15    c.  The facility, upon receipt of a written challenge,
  7 16 shall review the facts of the case with the obligor within ten
  7 17 days of receipt of the challenge.  If the obligor is not
  7 18 available for the review on the scheduled date, the review
  7 19 shall take place without the obligor being present.
  7 20 Information in favor of the obligor shall be considered by the
  7 21 facility in the review.  The facility may utilize additional
  7 22 information if such information is available.  Only a mistake
  7 23 of fact, including, but not limited to, a mistake in the
  7 24 identity of the obligor or a mistake in the amount owed to or
  7 25 being collected by the facility shall be considered as a
  7 26 reason to dismiss or modify the administrative wage
  7 27 assignment.
  7 28    d.  If the facility determines that a mistake of fact has
  7 29 occurred, the facility shall proceed as follows:
  7 30    (1)  If a mistake in identity has occurred or the obligor
  7 31 does not have a delinquent or accrued amount being collected
  7 32 by or owed to the facility, the facility shall notify the
  7 33 employer that the administrative wage assignment has been
  7 34 released.  The facility shall provide a copy of the notice to
  7 35 the obligor by regular mail.
  8  1    (2)  If the delinquent or accrued amount being collected by
  8  2 or owed to the facility is less than the amount indicated in
  8  3 the notice, the facility shall provide a notice to the
  8  4 employer of the revised amount, with a copy of the original
  8  5 notice, and issue a notice to the obligor by regular mail.
  8  6 Upon written receipt of the notice from the facility, the
  8  7 employer shall release the funds in excess of the revised
  8  8 amount and forward the revised amount to the facility pursuant
  8  9 to the administrative wage assignment.
  8 10    (3)  Any moneys received by the facility in excess of the
  8 11 amount owed to or to be collected by the facility shall be
  8 12 returned to the obligor.
  8 13    e.  If the facility finds no mistake of fact, the facility
  8 14 shall provide a notice to that effect to the obligor by
  8 15 regular mail and notify the employer to forward the moneys
  8 16 pursuant to the administrative wage assignment.
  8 17    f.  The obligor shall have the right to file an action for
  8 18 wrongful assignment in district court within thirty days of
  8 19 the date of the notice to the obligor, either in the county
  8 20 where the obligor is located or in Polk county where the
  8 21 facility is located.
  8 22    9.  VALIDITY AND DURATION OF A WAGE ASSIGNMENT NOTICE.  A
  8 23 notice of wage assignment given to the obligor is effective
  8 24 without the serving of another notice until the earliest of
  8 25 either of the following:
  8 26    a.  The debt owed to the facility is paid in full.
  8 27    b.  The obligor receives notice that the wage assignment
  8 28 shall cease.
  8 29    Expiration of the wage assignment does not affect the
  8 30 obligor's duties and liabilities respecting the wages already
  8 31 withheld pursuant to the wage assignment.
  8 32    Sec. 3.  Section 421.31, subsection 3, Code 2001, is
  8 33 amended by striking the subsection and inserting in lieu
  8 34 thereof the following:
  8 35    3.  AUDIT OF CLAIMS.  To set rules and procedures for the
  9  1 preaudit of claims by individual agencies or organizations.
  9  2 The director reserves the right to refuse to accept incomplete
  9  3 or incorrect claims and to review, preaudit, or audit claims
  9  4 as determined by the director.
  9  5    Sec. 4.  NEW SECTION.  421.47  TAX AGREEMENTS WITH INDIAN
  9  6 TRIBES.
  9  7    1.  "Indian country" means the Indian country as defined in
  9  8 18 U.S.C. } 1151, and includes trust land as defined by the
  9  9 United States secretary of the interior.
  9 10    2.  The department and the governing body of an Indian
  9 11 tribe may enter into an agreement to provide for the
  9 12 collection and distribution or refund by the department within
  9 13 Indian country of any tax or fee imposed by the state and
  9 14 administered by the department.
  9 15    An agreement may also provide for the collection and
  9 16 distribution by the department of any tribal tax or fee
  9 17 imposed by tribal ordinance.  The agreement may provide for
  9 18 the retention of an administrative fee by the department which
  9 19 fee shall be an agreed-upon percentage of the gross revenue of
  9 20 the tribal tax or fee collected.
  9 21    3.  An Act of Congress regulating the collection of state
  9 22 taxes and their remittance to the states shall preempt an
  9 23 agreement between the department and the governing body of an
  9 24 Indian tribe under this section to the extent such federal Act
  9 25 regulates the collection and remittance of a tax covered by
  9 26 the agreement.
  9 27    4.  An agreement between the department and the governing
  9 28 body of an Indian tribe under this section shall not preclude
  9 29 the negotiation of an amendment to such agreement, which
  9 30 conforms to an Act of Congress regulating the collection of
  9 31 state taxes and their remittance to the states.
  9 32    Sec. 5.  Section 422.7, Code Supplement 2001, is amended by
  9 33 adding the following new subsection:
  9 34    NEW SUBSECTION.  38.  Subtract, to the extent not otherwise
  9 35 excluded, the amount of withdrawals from qualified retirement
 10  1 plan accounts made during the tax year if the taxpayer or
 10  2 taxpayer's spouse is a member of the Iowa national guard or
 10  3 reserve forces of the United States who is ordered to active
 10  4 state service or federal service or duty.  In addition, a
 10  5 penalty for such withdrawals shall not be assessed by the
 10  6 state.
 10  7    Sec. 6.  Section 422.16, subsection 2, Code 2001, is
 10  8 amended by adding the following new unnumbered paragraph:
 10  9    NEW UNNUMBERED PARAGRAPH.  The director, in cooperation
 10 10 with the department of management, may periodically change the
 10 11 filing and remittance thresholds by administrative rule if in
 10 12 the best interest of the state and the taxpayer.
 10 13    Sec. 7.  Section 422.42, subsections 15 and 16, Code
 10 14 Supplement 2001, are amended to read as follows:
 10 15    15.  Sales of building materials, supplies, and equipment
 10 16 to owners, contractors, subcontractors or builders, for the
 10 17 erection of buildings or the alteration, repair, or
 10 18 improvement of real property, are retail sales in whatever
 10 19 quantity sold.  If a contractor, subcontractor, or builder is
 10 20 to use building materials, supplies, and equipment in the
 10 21 performance of a construction contract with a designated
 10 22 exempt entity, the person shall purchase such items of
 10 23 tangible personal property without liability for the tax if
 10 24 such property will be used in the performance of the
 10 25 construction contract and a purchasing agent authorization
 10 26 letter and an exemption certificate, issued by the designated
 10 27 exempt entity, are presented to the retailer.  Where the
 10 28 owner, contractor, subcontractor, or builder is also a
 10 29 retailer holding a retail sales tax permit and transacting
 10 30 retail sales of building materials, supplies, and equipment,
 10 31 the person shall purchase such items of tangible personal
 10 32 property without liability for the tax if such property will
 10 33 be subject to the tax at the time of resale or at the time it
 10 34 is withdrawn from inventory for construction purposes.  The
 10 35 sales tax shall be due in the reporting period when the
 11  1 materials, supplies, and equipment are withdrawn from
 11  2 inventory for construction purposes or when sold at retail.
 11  3 The tax shall not be due when materials are withdrawn from
 11  4 inventory for use in construction outside of Iowa and the tax
 11  5 shall not apply to tangible personal property purchased and
 11  6 consumed by the manufacturer as building materials in the
 11  7 performance by the manufacturer or its subcontractor of
 11  8 construction outside of Iowa.  The tax shall not be due when
 11  9 materials are withdrawn from inventory for use in construction
 11 10 performed for a designated exempt entity if an exemption
 11 11 certificate is received from such entity.
 11 12    For the purposes of this subsection, the sale of carpeting
 11 13 is not a sale of building materials.  The sale of carpeting to
 11 14 owners, contractors, subcontractors, or builders shall be
 11 15 treated as the sale of ordinary tangible personal property and
 11 16 subject to the tax imposed under section 422.43, subsection 1,
 11 17 and the tax imposed under section 423.2.
 11 18    For purposes of this subsection, "designated exempt entity"
 11 19 means an entity which is designated in section 422.45,
 11 20 subsection 7.
 11 21    16.  The use within this state of tangible personal
 11 22 property by the manufacturer thereof of such property, as
 11 23 building materials, supplies, or equipment, in the performance
 11 24 of construction contracts in Iowa, shall, for the purpose of
 11 25 this division, be construed as a sale at retail thereof of
 11 26 such property by the manufacturer who shall be deemed to be
 11 27 the consumer of such tangible personal property.  The tax
 11 28 shall be computed upon the cost to the manufacturer of the
 11 29 fabrication or production thereof of such property.  However,
 11 30 the tax shall not apply to tangible personal property
 11 31 purchased and consumed by the manufacturer as building
 11 32 materials, supplies, or equipment in the performance of a
 11 33 construction contract for a designated exempt entity, as
 11 34 defined in subsection 15, if a purchasing agent authorization
 11 35 letter and an exemption certificate are received from such
 12  1 entity and presented to the retailer.
 12  2    Sec. 8.  Section 422.43, subsection 11, Code Supplement
 12  3 2001, is amended by adding the following new unnumbered
 12  4 paragraph:
 12  5    NEW UNNUMBERED PARAGRAPH.  For purposes of the tax on
 12  6 enumerated services under this subsection, service charges of
 12  7 financial institutions do not include surcharges assessed with
 12  8 regard to nonproprietary ATM transactions.  This paragraph is
 12  9 repealed June 30, 2003.
 12 10    Sec. 9.  Section 422.45, Code Supplement 2001, is amended
 12 11 by adding the following new subsection:
 12 12    NEW SUBSECTION.  63.  The gross receipts from the sale or
 12 13 rental of tangible personal property or from services
 12 14 performed, rendered, or furnished to a recognized community
 12 15 action agency as provided in section 216A.93 to be used for
 12 16 the purposes of the agency.
 12 17    Sec. 10.  Section 422.47, Code Supplement 2001, is amended
 12 18 by adding the following new subsection:
 12 19    NEW SUBSECTION.  5.  For purposes of assisting retailers in
 12 20 properly accounting for nontaxable sales of building
 12 21 materials, supplies, and equipment to be used in the
 12 22 performance of a construction contract for a designated exempt
 12 23 entity, as defined in section 422.42, subsection 15, the
 12 24 designated exempt entity shall issue a purchasing agent
 12 25 authorization letter and an exemption certificate to the
 12 26 contractor, subcontractor, builder, or manufacturer to be used
 12 27 as provided in section 422.42, subsection 15 or 16.  The
 12 28 authorization letter and the exemption certificate shall
 12 29 specify the construction project to which they apply and shall
 12 30 be valid only for that project.
 12 31    The designated exempt entity shall notify the department
 12 32 that such authorization letter and exemption certificate have
 12 33 been issued.  The notification shall, to the extent
 12 34 practicable, describe the project and identify the
 12 35 contractors, subcontractors, builders, and manufacturers which
 13  1 will be using the letter and certificate.
 13  2    If a designated exempt entity is required by law to
 13  3 advertise for bids with regard to the construction project,
 13  4 the entity shall include in its notice to bidders that the
 13  5 entity will issue an exemption certificate for the purchase or
 13  6 use of building materials, supplies, and equipment that will
 13  7 be used in the performance of the construction contract.
 13  8    The provisions of subsection 3, paragraphs "b", "d", and
 13  9 "e", to the extent not inconsistent with this subsection shall
 13 10 apply to this subsection.
 13 11    Sec. 11.  Section 422.54, subsection 1, Code 2001, is
 13 12 amended by adding the following new unnumbered paragraph:
 13 13    NEW UNNUMBERED PARAGRAPH.  The director, in cooperation
 13 14 with the department of management, may periodically change the
 13 15 filing and remittance thresholds under sections 422.51 and
 13 16 422.52 by administrative rule if in the best interest of the
 13 17 state and the taxpayer to do so.
 13 18    Sec. 12.  Section 422B.10, subsection 2, paragraph a, Code
 13 19 2001, is amended to read as follows:
 13 20    a.  The director of revenue and finance within fifteen days
 13 21 of the beginning by August 15 of each fiscal year shall send
 13 22 to each city or county where the local option tax is imposed,
 13 23 an estimate of the amount of tax moneys each city or county
 13 24 will receive for the year and for each month of the year.  At
 13 25 the end of each month, the director may revise the estimates
 13 26 for the year and remaining months.
 13 27    Sec. 13.  Section 422E.3, subsection 5, paragraph a, Code
 13 28 Supplement 2001, is amended to read as follows:
 13 29    a.  The director of revenue and finance within fifteen days
 13 30 of the beginning by August 15 of each fiscal year shall send
 13 31 to each school district where the tax is imposed an estimate
 13 32 of the amount of tax moneys each school district will receive
 13 33 for the year and for each month of the year.  At the end of
 13 34 each month, the director may revise the estimates for the year
 13 35 and remaining months.
 14  1    Sec. 14.  Section 423.13, Code 2001, is amended by adding
 14  2 the following new unnumbered paragraph:
 14  3    NEW UNNUMBERED PARAGRAPH.  The director, in cooperation
 14  4 with the department of management, may periodically change the
 14  5 filing and remittance thresholds by administrative rule if in
 14  6 the best interest of the state and the taxpayer to do so.
 14  7    Sec. 15.  Section 425.7, subsection 3, unnumbered paragraph
 14  8 2, Code Supplement 2001, is amended to read as follows:
 14  9    If a claim is disallowed by the director of revenue and
 14 10 finance and not appealed to the state board of tax review or
 14 11 appealed to and upheld by the state board of tax review and a
 14 12 petition for judicial review is not filed with respect to the
 14 13 disallowance thereafter upheld upon final resolution,
 14 14 including any judicial review, any amounts of credits allowed
 14 15 and paid from the homestead credit fund including the penalty,
 14 16 if any, become a lien upon the property on which credit was
 14 17 originally granted, if still in the hands of the claimant, and
 14 18 not in the hands of a bona fide purchaser, and any amount so
 14 19 erroneously paid including the penalty, if any, shall be
 14 20 collected by the county treasurer in the same manner as other
 14 21 taxes and the collections shall be returned to the department
 14 22 of revenue and finance and credited to the homestead credit
 14 23 fund.  The director of revenue and finance may institute legal
 14 24 proceedings against a homestead credit claimant for the
 14 25 collection of payments made on disallowed credits and the
 14 26 penalty, if any.  If a person makes a false claim or affidavit
 14 27 with fraudulent intent to obtain the homestead credit, the
 14 28 person is guilty of a fraudulent practice and the claim shall
 14 29 be disallowed in full.  If the credit has been paid, the
 14 30 amount of the credit plus a penalty equal to twenty-five
 14 31 percent of the amount of credit plus interest, at the rate in
 14 32 effect under section 421.7, from the time of payment shall be
 14 33 collected by the county treasurer in the same manner as other
 14 34 property taxes, penalty, and interest are collected and when
 14 35 collected shall be paid to the director of revenue and
 15  1 finance.  If a homestead credit is disallowed and the claimant
 15  2 failed to give written notice to the assessor as required by
 15  3 section 425.2 when the property ceased to be used as a
 15  4 homestead by the claimant, a civil penalty equal to five
 15  5 percent of the amount of the disallowed credit is assessed
 15  6 against the claimant.
 15  7    Sec. 16.  Section 425.15, Code 2001, is amended to read as
 15  8 follows:
 15  9    425.15  DISABLED VETERAN TAX CREDIT.
 15 10    If the owner of a homestead allowed a credit under this
 15 11 chapter is a veteran of any of the military forces of the
 15 12 United States, who acquired the homestead under 38 U.S.C. }
 15 13 21.801, 21.802, or 38 U.S.C. } 2101, 2102, the credit allowed
 15 14 on the homestead from the homestead credit fund shall be the
 15 15 entire amount of the tax levied on the homestead.  The credit
 15 16 allowed shall be continued to the estate of a veteran who is
 15 17 deceased or the surviving spouse and any child, as defined in
 15 18 section 234.1, who are the beneficiaries of a deceased
 15 19 veteran, so long as the surviving spouse remains unmarried.
 15 20 This section is not applicable to the holder of title to any
 15 21 homestead whose annual income, together with that of the
 15 22 titleholder's spouse, if any, for the last preceding twelve-
 15 23 month income tax accounting period exceeds twenty-five thirty-
 15 24 five thousand dollars.  For the purpose of this section
 15 25 "income" means taxable income for federal income tax purposes
 15 26 plus income from securities of state and other political
 15 27 subdivisions exempt from federal income tax.  A veteran or a
 15 28 beneficiary of a veteran who elects to secure the credit
 15 29 provided in this section is not eligible for any other real
 15 30 property tax exemption provided by law for veterans of
 15 31 military service.  If a veteran acquires a different
 15 32 homestead, the credit allowed under this section may be
 15 33 claimed on the new homestead unless the veteran fails to meet
 15 34 the other requirements of this section.
 15 35    Sec. 17.  Section 426A.6, Code 2001, is amended to read as
 16  1 follows:
 16  2    426A.6  SETTING ASIDE ALLOWANCE.
 16  3    If the director of revenue and finance determines that a
 16  4 claim for military service tax exemption has been allowed by a
 16  5 board of supervisors which is not justifiable under the law
 16  6 and not substantiated by proper facts, the director may, at
 16  7 any time within thirty-six months from July 1 of the year in
 16  8 which the claim is allowed, set aside the allowance.  Notice
 16  9 of the disallowance shall be given to the county auditor of
 16 10 the county in which the claim has been improperly granted and
 16 11 a written notice of the disallowance shall also be addressed
 16 12 to the claimant at the claimant's last known address.  The
 16 13 claimant or the board of supervisors may appeal to the state
 16 14 board of tax review pursuant to section 421.1, subsection 4.
 16 15 The claimant or the board of supervisors may seek judicial
 16 16 review of the action of the state board of tax review in
 16 17 accordance with chapter 17A.  If a claim is disallowed by the
 16 18 director of revenue and finance and not appealed to the state
 16 19 board of tax review or appealed to and upheld by the state
 16 20 board of tax review and a petition for judicial review is not
 16 21 filed with respect to the disallowance thereafter upheld upon
 16 22 final resolution, including judicial review, the credits
 16 23 allowed and paid from the general fund of the state become a
 16 24 lien upon the property on which the credit was originally
 16 25 granted, if still in the hands of the claimant and not in the
 16 26 hands of a bona fide purchaser, the amount so erroneously paid
 16 27 shall be collected by the county treasurer in the same manner
 16 28 as other taxes, and the collections shall be returned to the
 16 29 department of revenue and finance and credited to the general
 16 30 fund of the state.  The director of revenue and finance may
 16 31 institute legal proceedings against a military service tax
 16 32 exemption claimant for the collection of payments made on
 16 33 disallowed exemptions.
 16 34    Sec. 18.  Section 426A.11, subsection 3, Code Supplement
 16 35 2001, is amended to read as follows:
 17  1    3.  Where the word "veteran" appears in this chapter, it
 17  2 includes, without limitation, the members of the United States
 17  3 air force, and the United States merchant marine, and coast
 17  4 guard.
 17  5    Sec. 19.  Section 427.1, subsection 5, Code Supplement
 17  6 2001, is amended to read as follows:
 17  7    5.  PROPERTY OF ASSOCIATIONS OF WAR VETERANS.  The property
 17  8 of any organization composed wholly of veterans of any war,
 17  9 when such property is devoted entirely to its own use and not
 17 10 held for pecuniary profit.  The operation of bingo games on
 17 11 property of such organization shall not adversely affect the
 17 12 exemption of that property under this subsection if all
 17 13 proceeds, in excess of expenses, are used for the legitimate
 17 14 purposes of the organization.
 17 15    Sec. 20.  Section 452A.2, Code Supplement 2001, is amended
 17 16 by adding the following new subsection:
 17 17    NEW SUBSECTION.  1A.  "Biofuel" means an oxygenated product
 17 18 derived from soybean oil, vegetable oil, or animal fats that
 17 19 can be used in diesel engines or aircraft.  Biofuel may be a
 17 20 blend with diesel fuel or it may be one hundred percent
 17 21 soybean oil, vegetable oil, or animal fats.  Any biofuel
 17 22 product is a special fuel.
 17 23    Sec. 21.  Section 452A.6, Code 2001, is amended to read as
 17 24 follows:
 17 25    452A.6  ETHANOL BLENDED GASOLINE AND OTHER PRODUCTS
 17 26 BLENDER'S LICENSE.
 17 27    A person other than a supplier, restrictive supplier, or
 17 28 importer licensed under this division, who blends gasoline
 17 29 with alcohol distilled from cereal grains so that the blend
 17 30 contains at least ten percent alcohol distilled from cereal
 17 31 grains, shall obtain a blender's license.  A person who blends
 17 32 two or more special fuel products or sells one hundred percent
 17 33 biofuel shall obtain a blender's license.  The license shall
 17 34 be obtained by following the procedure under section 452A.4
 17 35 and the license is subject to the same restrictions as
 18  1 contained in that section.  A blender shall maintain records
 18  2 as required by section 452A.10 as to motor fuel, alcohol, and
 18  3 ethanol blended gasoline, and special fuels.
 18  4    Sec. 22.  Section 452A.8, subsection 3, Code 2001, is
 18  5 amended to read as follows:
 18  6    3.  For the purpose of determining the amount of the tax
 18  7 liability on alcohol blended to produce ethanol blended
 18  8 gasoline or a blend of special fuel products, each licensed
 18  9 blender shall, not later than the last day of each month
 18 10 following the month in which the blending is done, file with
 18 11 the department a monthly return, signed under penalty for
 18 12 false certificate, containing information required by rules
 18 13 adopted by the director.
 18 14    Sec. 23.  Section 452A.9, Code 2001, is amended to read as
 18 15 follows:
 18 16    452A.9  RETURNS FROM PERSONS NOT LICENSED AS SUPPLIERS,
 18 17 RESTRICTIVE SUPPLIERS, OR IMPORTERS OR BLENDERS.
 18 18    Every person other than a licensed supplier, restrictive
 18 19 supplier, or importer or blender, who purchases, brings into
 18 20 this state, or otherwise acquires within this state motor fuel
 18 21 or undyed special fuel, not otherwise exempted, which the
 18 22 person has knowingly not paid or incurred liability to pay
 18 23 either to a licensee or to a dealer the motor fuel or special
 18 24 fuel tax, shall be subject to the provisions of this division
 18 25 that apply to suppliers, restrictive suppliers, and importers
 18 26 and blenders of motor fuel or undyed special fuel and shall
 18 27 file the same returns and make the same tax payments and be
 18 28 subject to the same penalties for delinquent filing or
 18 29 nonfiling or delinquent payment or nonpayment as apply to
 18 30 suppliers, restrictive suppliers, and importers and blenders.
 18 31    Sec. 24.  Section 452A.15, subsection 1, unnumbered
 18 32 paragraph 1, Code 2001, is amended to read as follows:
 18 33    Every railroad and common carrier or contract carrier
 18 34 transporting motor fuel or special fuel either in interstate
 18 35 or intrastate commerce within this state and every person
 19  1 transporting motor fuel or special fuel by whatever manner
 19  2 into this state shall, subject to penalties for false
 19  3 certificate, report to the department all deliveries of motor
 19  4 fuel or special fuel to points within this state other than
 19  5 refineries or marine or pipeline terminals.  If any supplier,
 19  6 restrictive supplier, importer, blender, or distributor is
 19  7 also engaged in the transportation of motor fuel or special
 19  8 fuel for others, the supplier, restrictive supplier, importer,
 19  9 blender, or distributor shall make the same reports as
 19 10 required of common carriers and contract carriers.
 19 11    Sec. 25.  Section 452A.15, Code 2001, is amended by adding
 19 12 the following new subsection:
 19 13    NEW SUBSECTION.  2A.  Persons operating storage facilities
 19 14 at a nonterminal location shall file a monthly report with the
 19 15 department accounting for all motor fuel, alcohol, and special
 19 16 fuel that is delivered into, stored within, withdrawn from, or
 19 17 sold from the storage facility.
 19 18    Sec. 26.  Section 452A.15, Code 2001, is amended by adding
 19 19 the following new subsection:
 19 20    NEW SUBSECTION.  4.  The director may impose a civil
 19 21 penalty against any person who fails to file the reports or
 19 22 keep the records required under this section.  The penalty
 19 23 shall be one hundred dollars for the first violation and shall
 19 24 increase by one hundred dollars for each additional violation
 19 25 occurring in the calendar year in which the first violation
 19 26 occurred.
 19 27    Sec. 27.  Section 452A.60, unnumbered paragraph 1, Code
 19 28 2001, is amended to read as follows:
 19 29    The department of revenue and finance or the state
 19 30 department of transportation shall prescribe and furnish all
 19 31 forms, as applicable, upon which reports, returns, and
 19 32 applications shall be made and claims for refund presented
 19 33 under this chapter and may prescribe forms of record to be
 19 34 kept by suppliers, restrictive suppliers, importers,
 19 35 exporters, blenders, common carriers, contract carriers,
 20  1 licensed compressed natural gas and liquefied petroleum gas
 20  2 dealers and users, terminal operators, nonterminal storage
 20  3 facility operations, and interstate commercial motor vehicle
 20  4 operators.
 20  5    Sec. 28.  Section 452A.62, subsection 2, unnumbered
 20  6 paragraph 1, Code 2001, is amended to read as follows:
 20  7    To examine the records, books, papers, receipts, and
 20  8 invoices of any distributor, supplier, restrictive supplier,
 20  9 importer, blender, exporter, terminal operator, licensed
 20 10 compressed natural gas or liquefied petroleum gas dealer or
 20 11 user, or any other person who possesses fuel upon which the
 20 12 tax has not been paid to determine financial responsibility
 20 13 for the payment of the taxes imposed by this chapter.
 20 14    Sec. 29.  Section 516D.3, subsection 6, paragraphs a and b,
 20 15 Code 2001, are amended to read as follows:
 20 16    a.  Mandatory charge does not include an optional airport
 20 17 imposed airport-imposed fee if the existence and amount of the
 20 18 fee are clearly and conspicuously disclosed immediately
 20 19 adjacent to any advertised rental price.  The advertisement
 20 20 must clearly and conspicuously state the method of avoiding
 20 21 the airport access fee and the customer must be informed of
 20 22 the amount of the fee when the reservation is made.  When an
 20 23 advertisement encompasses more than one rental location, the
 20 24 fee may be expressed as the maximum fee or range of fees.
 20 25    b.  Mandatory charge does not include taxes imposed
 20 26 directly upon the rental transaction by an authorized taxing
 20 27 authority.  An airport imposed fee on gross receipts or an
 20 28 airport access fee is not such a tax.
 20 29    Sec. 30.  Notwithstanding the filing deadline provided in
 20 30 section 427.1, subsection 14, the filing deadline for
 20 31 organizations, institutions, or societies required to file a
 20 32 claim for a property tax exemption for the assessment year
 20 33 beginning January 1, 2002, for taxes due and payable in the
 20 34 fiscal year beginning July 1, 2003, shall be October 1, 2002.
 20 35    Sec. 31.  Section 70A.17, Code 2001, is repealed.
 21  1    Sec. 32.  ABATEMENT OF PROPERTY TAXES.  Notwithstanding the
 21  2 requirement for the filing of a claim for property tax
 21  3 exemption by April 15 as provided in section 427.1, subsection
 21  4 14, Code Supplement 1999, the board of supervisors of a county
 21  5 having a population based upon the latest federal census of
 21  6 more than one hundred eighty thousand but not more than two
 21  7 hundred thousand shall abate the property taxes owed, with all
 21  8 interest, fees, and costs, levied for the fiscal year
 21  9 beginning July 1, 2000, which were payable during the fiscal
 21 10 year beginning July 1, 2001, on the land and buildings of a
 21 11 religious institution that did not receive a property tax
 21 12 exemption for failure to file for the exemption.  To receive
 21 13 the abatement provided in this section, the religious
 21 14 institution shall apply to the county board of supervisors by
 21 15 October 1, 2002, and provide appropriate information
 21 16 establishing that the lands and buildings for which the
 21 17 abatement is sought were used by the religious institution for
 21 18 its appropriate objects during the fiscal year beginning July
 21 19 1, 2000.  The abatement allowed under this section only
 21 20 applies to property taxes, with all interests, fees, and
 21 21 costs, levied for the fiscal year beginning July 1, 2000, and
 21 22 due and payable in the fiscal year beginning July 1, 2001.
 21 23    Sec. 33.
 21 24    1.  ABATEMENT OF SALES AND USE TAXES.  The director of
 21 25 revenue and finance shall abate unpaid state sales and use
 21 26 taxes and local sales and services taxes owed by any foundry
 21 27 located in Lee or Jefferson county on purchases of tangible
 21 28 personal property used by the foundry in making patterns,
 21 29 molds, or dies which purchases occurred between July 1, 1997,
 21 30 and the effective date of this section.
 21 31    2.  REFUNDS.  If the state sales and use taxes and local
 21 32 sales and services taxes have been paid on the purchases of
 21 33 tangible personal property which occurred between July 1,
 21 34 1997, and the effective date of this section and which taxes
 21 35 would have been abated under subsection 1 if not paid, then
 22  1 such taxes and any interest and penalties, that were paid, are
 22  2 eligible for refund.  However, refunds shall not be allowed
 22  3 unless claims are filed prior to October 1, 2002, and shall be
 22  4 limited to twenty-five thousand dollars in the aggregate.  If
 22  5 the amount of claims totals more than twenty-five thousand
 22  6 dollars in the aggregate, the department of revenue and
 22  7 finance shall prorate the twenty-five thousand dollars among
 22  8 all claimants in relation to the amounts of the claimants'
 22  9 valid claims.
 22 10    Sec. 34.  VOLUNTEER FIRE FIGHTERS PENSION TASK FORCE –
 22 11 REPORT.  A volunteer fire fighters pension task force is
 22 12 created concerning the establishment of a pension system for
 22 13 volunteer fire fighters in this state.  The task force shall
 22 14 examine pension plans established by other states for
 22 15 volunteer fire fighters and shall solicit information from
 22 16 volunteer fire fighters, and cities and townships with
 22 17 volunteer fire fighters, concerning the establishment of a
 22 18 pension system for volunteer fire fighters.  The task force
 22 19 shall also identify and examine issues relating to volunteer
 22 20 fire departments' attraction and retention of fire fighters
 22 21 and shall propose solutions to these issues of attraction and
 22 22 retention.
 22 23    Membership of the task force is to be determined by the
 22 24 legislative council.  Members shall be appointed by the
 22 25 legislative council.  The membership shall include, but not be
 22 26 limited to, the following:
 22 27    1.  The commissioner of insurance or the commissioner's
 22 28 designee.
 22 29    2.  The treasurer of state or the treasurer's designee.
 22 30    3.  A representative of a pension system established
 22 31 pursuant to Code chapter 411.
 22 32    4.  A representative of the Iowa public employees'
 22 33 retirement system.
 22 34    5.  A representative of a pension system established for
 22 35 private sector employees.
 23  1    6.  A representative of the state fire and emergency
 23  2 response council.
 23  3    7.  A representative of volunteer fire fighters in the
 23  4 state.
 23  5    8.  A representative of township trustees.
 23  6    9.  A representative of the Iowa league of cities.
 23  7    The legislative service bureau and the legislative fiscal
 23  8 bureau shall provide staffing assistance to the task force.
 23  9 The department of management shall provide other assistance to
 23 10 the task force in completing its duties.
 23 11    The task force shall submit a report to the general
 23 12 assembly by January 1, 2003.  The report shall contain the
 23 13 findings and recommendations of the task force.
 23 14    Sec. 35.  IMPLEMENTATION OF ACT.  Section 25B.7 does not
 23 15 apply to the section of this Act amending section 425.15
 23 16 relating to the disabled veteran tax credit.
 23 17    Sec. 36.  EFFECTIVE DATES.
 23 18    1.  The sections of this Act amending sections 422.42 and
 23 19 422.47 take effect January 1, 2003, and apply to construction
 23 20 contracts entered into on or after that date.
 23 21    2.  The section of this Act extending the time for filing a
 23 22 claim for property tax exemptions by certain organizations,
 23 23 institutions, or societies, being deemed of immediate
 23 24 importance, takes effect upon enactment.
 23 25    3.  The section of this Act amending section 404.4,
 23 26 relating to the exemption for urban revitalization, being
 23 27 deemed of immediate importance, takes effect upon enactment
 23 28 and applies retroactively to January 1, 2001, for claims for
 23 29 exemptions made on or after that date.
 23 30    4.  The section of this Act providing for the abatement of
 23 31 property taxes on religious property, being deemed of
 23 32 immediate importance, takes effect upon enactment, and applies
 23 33 retroactively to property taxes due and payable in the fiscal
 23 34 year beginning July 1, 2001.
 23 35    5.  The section of this Act that provides for the abatement
 24  1 of sales and use taxes owed or the refund of sales and use tax
 24  2 paid on the purchases of certain tangible personal property by
 24  3 a foundry, being deemed of immediate importance, takes effect
 24  4 upon enactment.
 24  5    6.  The section of this Act amending section 422.7 applies
 24  6 retroactively to January 1, 2002, for tax years beginning on
 24  7 or after that date.
 24  8    7.  The section of this Act amending section 425.15, being
 24  9 deemed of immediate importance, takes effect upon enactment
 24 10 and applies retroactively to January 1, 2002, for claims filed
 24 11 or on file on or after that date.  
 24 12 
 24 13 
 24 14                                                             
 24 15                               BRENT SIEGRIST
 24 16                               Speaker of the House
 24 17 
 24 18 
 24 19                                                             
 24 20                               MARY E. KRAMER
 24 21                               President of the Senate
 24 22 
 24 23    I hereby certify that this bill originated in the House and
 24 24 is known as House File 2622, Seventy-ninth General Assembly.
 24 25 
 24 26 
 24 27                                                             
 24 28                               MARGARET THOMSON
 24 29                               Chief Clerk of the House
 24 30 Approved                , 2002
 24 31 
 24 32 
 24 33                            
 24 34 THOMAS J. VILSACK
 24 35 Governor
     
Text: HF02621                           Text: HF02623
Text: HF02600 - HF02699                 Text: HF Index
Bills and Amendments: General Index     Bill History: General Index

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