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House Study Bill 11.1

Bill Text

PAG LIN
  1  1    Section 1.  Section 422.34A, Code 2001, is amended by
  1  2 adding the following new subsection:
  1  3    NEW SUBSECTION.  8.  Storing tangible personal property
  1  4 which are not intended for sale in Iowa for ninety days or
  1  5 less in a warehouse located in Iowa which is not owned by the
  1  6 corporation.
  1  7    Sec. 2.  Section 422.36, Code 2001, is amended by adding
  1  8 the following new subsection:
  1  9    NEW SUBSECTION.  6.  A foreign corporation is not required
  1 10 to file a return if its only activities in Iowa are described
  1 11 in section 422.34A, subsection 8, provided that none of the
  1 12 tangible personal property is delivered or shipped so as to be
  1 13 included in the gross sales of the corporation within this
  1 14 state as provided in section 422.33, subsection 2, paragraph
  1 15 "b", subparagraph (6).
  1 16    Sec. 3.  EFFECTIVE AND APPLICABILITY DATES.  This Act,
  1 17 being deemed of immediate importance, takes effect upon
  1 18 enactment and applies retroactively to January 1, 2001, for
  1 19 tax years beginning on or after that date.  
  1 20                           EXPLANATION
  1 21    The bill provides that an activity of a foreign corporation
  1 22 which involves the storing of tangible personal property which
  1 23 is not intended for sale in Iowa for 90 days or less in a
  1 24 warehouse located in Iowa which is not owned by the
  1 25 corporation does not constitute doing business within the
  1 26 state or deriving income from sources within the state for
  1 27 purposes of the imposition of the state corporate income tax.
  1 28 The bill also provides that an income tax return is not
  1 29 required to be filed if such storage is its only activity and
  1 30 the stored property is not delivered or shipped so as to be
  1 31 included as part of the corporation's gross sales within the
  1 32 state.
  1 33    The bill takes effect upon enactment and applies
  1 34 retroactively to January 1, 2001, for tax years beginning on
  1 35 or after that date.  
  2  1 LSB 3540HC 79
  2  2 mg/gg/8
     

                                        
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