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PAG LIN 1 1 Section 1. NEW SECTION. 421.17B ADMINISTRATIVE WAGE 1 2 ASSIGNMENT COOPERATIVE AGREEMENT. 1 3 1. DEFINITIONS. As used in this section, unless the 1 4 context otherwise requires: 1 5 a. "Employer" means any person or entity that pays an 1 6 obligor to do a specific task. "Employer" only includes such 1 7 a person or entity in an employer-employee relationship and 1 8 does not include an obligor acting as a contractor, 1 9 distributor, agent, or in any representative capacity in which 1 10 the obligor receives any form of consideration. 1 11 b. "Employment" means the performance of personal services 1 12 for another. "Employment" only includes parties in an 1 13 employer-employee relationship and does not include one acting 1 14 as a self-employer, contractor, distributor, agent, or in any 1 15 representative capacity. 1 16 c. "Facility" means the centralized debt collection 1 17 facility of the department of revenue and finance established 1 18 pursuant to section 421.17, subsection 34. 1 19 d. "Obligor" means a person who is indebted to the state 1 20 or a state agency for any delinquent accounts, charges, fees, 1 21 loans, taxes, or other indebtedness due the state or 1 22 indebtedness being collected by the state. 1 23 e. "Wage" means any form of compensation due to an 1 24 obligor. "Wage" includes, but is not limited to, wages, 1 25 salary, bonus, commission, or other payment directly or 1 26 indirectly related to employment. If a wage is assigned to 1 27 the facility, wage only includes a payment in the form of 1 28 money. 1 29 2. PURPOSE AND USE. 1 30 a. Notwithstanding other statutory provisions which 1 31 provide for the execution, attachment, garnishment, or levy 1 32 against accounts, the facility may utilize the process 1 33 established in this section to collect delinquent accounts, 1 34 charges, fees, loans, taxes, or other indebtedness due the 1 35 facility or being collected by the facility provided all 2 1 administrative remedies have been waived or exhausted by the 2 2 obligor. Any exemptions or exceptions which specifically 2 3 apply to enforcement of such obligations also apply to this 2 4 section. 2 5 Administrative wage assignment under this section is the 2 6 equivalent of condemning funds under chapter 642. 2 7 The administrative wage assignment is to be considered an 2 8 additional means of collection by the facility and not an 2 9 exclusive means of collection. If the use of an 2 10 administrative wage assignment is not successful in collecting 2 11 an outstanding debt due the facility, the facility may use the 2 12 collection provisions set forth in chapters 626 and 642. 2 13 b. An obligor is subject to this section if the obligor's 2 14 debt is being collected by the facility. 2 15 c. Any amount forwarded to the facility by an employer 2 16 under this section shall not exceed the delinquent or accrued 2 17 amount of the obligor's debt being collected by the facility. 2 18 3. NOTICE TO THE OBLIGOR. 2 19 a. The facility may proceed under this section only if a 2 20 ten-day notice has been provided to the obligor. Notice by 2 21 the facility may be by regular mail to the last known address 2 22 of the obligor, notifying the obligor that the obligor is 2 23 subject to this section. If the facility determines that 2 24 collection of the debt may be in jeopardy, the facility may 2 25 request that the employer deliver notice of the wage 2 26 assignment simultaneous with the remainder of or in lieu of 2 27 the obligor's compensation due from the employer. 2 28 The facility may obtain one or more wage assignments of an 2 29 obligor who is subject to this section. If the obligor has 2 30 more than one employer, the facility may receive wage 2 31 assignments from one or all of the employers until the full 2 32 debt obligation of the obligor is satisfied. If an obligor 2 33 has more than one employer, the facility shall give notice to 2 34 all employers that the facility seeks to have an assignment of 2 35 wages. 3 1 b. The notice from the facility to the obligor shall 3 2 contain all of the following: 3 3 (1) The name and social security number of the obligor. 3 4 (2) A statement that the obligor is believed to have 3 5 employment with the stated employer. 3 6 (3) A statement that pursuant to the provisions of this 3 7 section, the obligor's wages will be assigned to the facility 3 8 for payment of the specified debts and that the employer is 3 9 authorized and required to forward moneys to the facility. 3 10 (4) The maximum amount to be forwarded by the employer, 3 11 which shall not exceed the delinquent or accrued amount of 3 12 debt being collected by or owed to the facility by the 3 13 obligor. 3 14 (5) The prescribed time frames the employer must meet in 3 15 forwarding any amounts. 3 16 (6) A statement that any challenge to the action must be 3 17 in writing and must be received by the facility within ten 3 18 days of the date of the notice to the obligor. 3 19 (7) The address of the facility and the account number 3 20 utilized by the facility for the obligor. 3 21 (8) A telephone number, address, and contact name of the 3 22 facility initiating the action. 3 23 4. VERIFICATION OF EMPLOYMENT AND IMMUNITY FROM LIABILITY. 3 24 a. The facility may contact an employer to obtain 3 25 verification of employment, and any specific information from 3 26 the employer that the facility needs to initiate, effectuate, 3 27 or maintain collection of the obligation. Contact with an 3 28 employer may be by telephone, fax, or by written 3 29 communication. The employer may require proof of authority 3 30 from the person from the facility and the telephone number of 3 31 the authorized person from the facility before releasing an 3 32 obligor's employment information by telephone. 3 33 b. The employer is immune from any civil or criminal 3 34 liability for information released by the employer to the 3 35 facility pursuant to this section. 4 1 5. COSTS. The facility is not liable for any costs 4 2 incurred or imposed for initiating, effectuating, or 4 3 maintaining an administrative wage assignment under this 4 4 section. Such costs will be the sole responsibility of the 4 5 obligor and will be added to the amount to be collected by the 4 6 facility. 4 7 6. ADMINISTRATIVE WAGE ASSIGNMENT – NOTICE TO THE 4 8 EMPLOYER. 4 9 a. If an obligor is subject to this section, the facility 4 10 may initiate an administrative wage assignment to have 4 11 compensation due the obligor to be assigned by the employer to 4 12 the facility up to the amount of the full debt to be collected 4 13 by the facility. 4 14 b. The facility shall send a notice to the employer within 4 15 fourteen days of sending notice of the wage assignment to the 4 16 obligor. The notice shall inform the employer of the amount 4 17 to be assigned to the facility from each wage, salary, or 4 18 payment period that is due the obligor. The facility may 4 19 receive assignment of up to one hundred percent of the 4 20 obligor's disposable income, salary, or payment for any given 4 21 period until the full obligation to the facility is paid in 4 22 full. 4 23 c. The notice to the employer shall contain all of the 4 24 following: 4 25 (1) The name and social security number of the obligor. 4 26 (2) A statement that the obligor is believed to be 4 27 employed by the employer. 4 28 (3) A statement that pursuant to the provisions of this 4 29 section, the obligor's wages are subject to assignment and the 4 30 employer is authorized and required to forward moneys to the 4 31 facility. 4 32 (4) The maximum amount that shall be forwarded by the 4 33 employer, which shall not exceed the delinquent or accrued 4 34 amount of debt being collected by or owed to the facility by 4 35 the obligor. 5 1 (5) The prescribed time frame the employer must meet in 5 2 forwarding any amounts. 5 3 (6) The address of the facility and the account number 5 4 utilized by the facility for the obligor. 5 5 (7) A telephone number, address, and name of a contact 5 6 person with the facility. 5 7 7. RESPONSIBILITIES OF EMPLOYER. Upon receipt of the 5 8 notice of wage assignment from the facility, the employer 5 9 shall do all of the following: 5 10 a. Immediately give effect to the wage assignment and hold 5 11 compensation which the obligor has owing to the extent of the 5 12 debt indicated in the notice from the facility. 5 13 b. No sooner than ten days, and no later than twenty days 5 14 from the date the employer receives the notice of wage 5 15 assignment, unless notified by the facility of a challenge of 5 16 the wage assignment by the obligor, the employer shall begin 5 17 forwarding the obligor's compensation, to the extent required 5 18 in the notice, to the facility with the obligor's name and 5 19 social security number, the facility's account number for the 5 20 obligor, and any other information required in the notice. 5 21 c. The employer may assess a fee against the obligor, not 5 22 to exceed twenty-five dollars, for forwarding of moneys to the 5 23 facility. This fee is in addition to the amount owed to or 5 24 being collected by the facility from the obligor. If 5 25 insufficient moneys are available from the obligor's 5 26 compensation to cover the fee and the amount in the notice, 5 27 the employer may deduct the fee amount prior to forwarding 5 28 moneys to the facility and the amount credited to the 5 29 obligor's account with the facility shall be reduced by the 5 30 fee amount. However, if the employer can present evidence to 5 31 the facility that the employer's costs were in excess of 5 32 twenty-five dollars and that such costs were necessary and 5 33 reasonable, then the employer may impose a fee in excess of 5 34 the twenty-five dollar fee limit. 5 35 8. CHALLENGES TO ACTION. 6 1 a. Challenges under this section may be initiated only by 6 2 an obligor. An administrative wage assignment only occurs 6 3 after the obligor has waived or exhausted administrative 6 4 remedies. Reviews by the facility of a challenge to an 6 5 administrative wage assignment are not subject to chapter 17A 6 6 unless the challenge is regarding the validity of the 6 7 assignment. Actions under this section are in equity and not 6 8 actions at law. 6 9 b. The obligor challenging the administrative wage 6 10 assignment shall submit a written challenge to the person 6 11 identified as the contact for the facility in the notice, 6 12 within ten days of the date of the notice to the obligor. 6 13 c. The facility, upon receipt of a written challenge, 6 14 shall review the facts of the case with the obligor within ten 6 15 days of receipt of the challenge. If the obligor is not 6 16 available for the review on the scheduled date, the review 6 17 shall take place without the obligor being present. 6 18 Information in favor of the obligor shall be considered by the 6 19 facility in the review. The facility may utilize additional 6 20 information if such information is available. Only a mistake 6 21 of fact, including, but not limited to, a mistake in the 6 22 identity of the obligor or a mistake in the amount owed to or 6 23 being collected by the facility shall be considered as a 6 24 reason to dismiss or modify the administrative wage 6 25 assignment. 6 26 d. If the facility determines that a mistake of fact has 6 27 occurred, the facility shall proceed as follows: 6 28 (1) If a mistake in identity has occurred or the obligor 6 29 does not have a delinquent or accrued amount being collected 6 30 by or owed to the facility, the facility shall notify the 6 31 employer that the administrative wage assignment has been 6 32 released. The facility shall provide a copy of the notice to 6 33 the obligor by regular mail. 6 34 (2) If the delinquent or accrued amount being collected by 6 35 or owed to the facility is less than the amount indicated in 7 1 the notice, the facility shall provide a notice to the 7 2 employer of the revised amount, with a copy of the original 7 3 notice, and issue a notice to the obligor by regular mail. 7 4 Upon written receipt of the notice from the facility, the 7 5 employer shall release the funds in excess of the revised 7 6 amount and forward the revised amount to the facility pursuant 7 7 to the administrative wage assignment. 7 8 (3) Any moneys received by the facility in excess of the 7 9 amount owed to or to be collected by the facility shall be 7 10 returned to the obligor. 7 11 e. If the facility finds no mistake of fact, the facility 7 12 shall provide a notice to that effect to the obligor by 7 13 regular mail and notify the employer to forward the moneys 7 14 pursuant to the administrative wage assignment. 7 15 f. The obligor shall have the right to file an action for 7 16 wrongful assignment in district court within thirty days of 7 17 the date of the notice to the obligor, either in the county 7 18 where the obligor is located or in Polk county where the 7 19 facility is located. 7 20 9. VALIDITY AND DURATION OF A WAGE ASSIGNMENT NOTICE. A 7 21 notice of wage assignment given to the obligor is effective 7 22 without the serving of another notice until the earliest of 7 23 either of the following: 7 24 a. The debt owed to the facility is paid in full. 7 25 b. The obligor receives notice that the wage assignment 7 26 shall cease. 7 27 Expiration of the wage assignment does not affect the 7 28 obligor's duties and liabilities respecting the wages already 7 29 withheld pursuant to the wage assignment. 7 30 Sec. 2. Section 421.31, subsection 3, Code 2001, is 7 31 amended by striking the subsection and inserting in lieu 7 32 thereof the following: 7 33 3. AUDIT OF CLAIMS. To set rules and procedures for the 7 34 preaudit of claims by individual agencies or organizations. 7 35 The director reserves the right to refuse to accept incomplete 8 1 or incorrect claims and to review, preaudit, or audit claims 8 2 as determined by the director. 8 3 Sec. 3. NEW SECTION. 421.47 TAX AGREEMENTS WITH INDIAN 8 4 TRIBES. 8 5 1. "Indian country" means the Indian country as defined in 8 6 18 U.S.C. } 1151, and includes trust land as defined by the 8 7 United States secretary of the interior. 8 8 2. The department and the governing body of an Indian 8 9 tribe may enter into an agreement to provide for the 8 10 collection and distribution or refund by the department within 8 11 Indian country of any tax or fee imposed by the state and 8 12 administered by the department. 8 13 An agreement may also provide for the collection and 8 14 distribution by the department of any tribal tax or fee 8 15 imposed by tribal ordinance. The agreement may provide for 8 16 the retention of an administrative fee by the department which 8 17 fee shall be an agreed-upon percentage of the gross revenue of 8 18 the tribal tax or fee collected. 8 19 3. An Act of Congress regulating the collection of state 8 20 taxes and their remittance to the states shall preempt an 8 21 agreement between the department and the governing body of an 8 22 Indian tribe under this section to the extent such federal Act 8 23 regulates the collection and remittance of a tax covered by 8 24 the agreement. 8 25 4. An agreement between the department and the governing 8 26 body of an Indian tribe under this section shall not preclude 8 27 the negotiation of an amendment to such agreement, which 8 28 conforms to an Act of Congress regulating the collection of 8 29 state taxes and their remittance to the states. 8 30 Sec. 4. Section 421.60, subsection 2, paragraph e, Code 8 31 2001, is amended to read as follows: 8 32 e. Unless otherwise provided by law, all Iowa taxes which 8 33 are administered by the department and which result in a 8 34 refund shall accrue interest at the rate in effect under 8 35 section 421.7 from the first day of thesecondthird calendar 9 1 month following the date of payment or the date the return was 9 2 due to be filed or was filed, whichever is the latest. 9 3 Sec. 5. Section 422.16, subsection 2, Code 2001, is 9 4 amended by adding the following new unnumbered paragraph: 9 5 NEW UNNUMBERED PARAGRAPH. The director, in cooperation 9 6 with the department of management, may periodically change the 9 7 filing and remittance thresholds by administrative rule if in 9 8 the best interest of the state and the taxpayer. 9 9 Sec. 6. Section 422.16, subsection 9, Code 2001, is 9 10 amended to read as follows: 9 11 9. The amount of any overpayment of the individual income 9 12 tax liability of the employee taxpayer, nonresident, or other 9 13 person which may result from the withholding and payment of 9 14 withheld tax by the employer or withholding agent to the 9 15 department under subsections 1 and 12, as compared to the 9 16 individual income tax liability of the employee taxpayer, 9 17 nonresident, or other person properly and correctly determined 9 18 under the provisions of section 422.4, to and including 9 19 section 422.25, may be credited against any income tax or 9 20 installmentthereofof income tax then due the state of Iowa 9 21 and any balance of one dollar or more shall be refunded to the 9 22 employee taxpayer, nonresident or other person with interest 9 23 at the rate in effect under section 421.7 for each month or 9 24 fraction of a month, the interest to begin to accrue on the 9 25 first day of thesecondthird calendar month following the 9 26 date the return was due to be filed or was filed, whichever is 9 27 the later date. Amounts less than one dollar shall be 9 28 refunded to the taxpayer, nonresident, or other person only 9 29 upon written application, in accordance with section 422.73, 9 30 and only if the application is filed within twelve months 9 31 after the due date of the return. Refunds in the amount of 9 32 one dollar or more provided for by this subsection shall be 9 33 paid by the treasurer of state by warrants drawn by the 9 34 director of revenue and finance, or an authorized employee of 9 35 the department, and the taxpayer's return of income shall 10 1 constitute a claim for refund for this purpose, except in 10 2 respect to amounts of less than one dollar. There is 10 3 appropriated, out of any funds in the state treasury not 10 4 otherwise appropriated, a sum sufficient to carry out the 10 5 provisions of this subsection. 10 6 Sec. 7. Section 422.25, subsection 3, Code 2001, is 10 7 amended to read as follows: 10 8 3. If the amount of the tax as determined by the 10 9 department is less than the amount paid, the excess shall be 10 10 refunded with interest, the interest to begin to accrue on the 10 11 first day of thesecondthird calendar month following the 10 12 date of payment or the date the return was due to be filed, or 10 13 the extended due date by which the return was due to be filed 10 14 if ninety percent of the tax was paid by the original due 10 15 date, or was filed, whichever is the latest, at the rate in 10 16 effect under section 421.7 counting each fraction of a month 10 17 as an entire month under the rules prescribed by the director. 10 18 If an overpayment of tax results from a net operating loss or 10 19 net capital loss which is carried back to a prior year, the 10 20 overpayment, for purposes of computing interest on refunds, 10 21 shall be considered as having been made on the date a claim 10 22 for refund or amended return carrying back the net operating 10 23 loss or net capital loss is filed with the department or on 10 24 the first day of thesecondthird calendar month following the 10 25 date of the actual payment of the tax, whichever is later. 10 26 However, when the net operating loss or net capital loss 10 27 carryback to a prior year eliminates or reduces an 10 28 underpayment of tax due for an earlier year, the full amount 10 29 of the underpayment of tax shall bear interest at the rate in 10 30 effect under section 421.7 for each month counting each 10 31 fraction of a month as an entire month from the due date of 10 32 the tax for the earlier year to the last day of the taxable 10 33 year in which the net operating loss or net capital loss 10 34 occurred. 10 35 Sec. 8. Section 422.28, Code 2001, is amended to read as 11 1 follows: 11 2 422.28 REVISION OF TAX. 11 3 A taxpayer may appeal to the director for revision of the 11 4 tax, interest, or penalties assessed at any time within sixty 11 5 days from the date of the notice of the assessment of tax, 11 6 additional tax, interest, or penalties. The director shall 11 7 grant a hearing and if, upon the hearing, the director 11 8 determines that the tax, interest, or penalties are excessive 11 9 or incorrect, the director shall revise them according to the 11 10 law and the facts and adjust the computation of the tax, 11 11 interest, or penalties accordingly. The director shall notify 11 12 the taxpayer by mail of the result of the hearing and shall 11 13 refund to the taxpayer the amount, if any, paid in excess of 11 14 the tax, interest, or penalties found by the director to be 11 15 due, with interest aftersixtyninety days from the date of 11 16 payment by the taxpayer at the rate in effect under section 11 17 421.7 for each month or a fraction of a month. 11 18 Sec. 9. Section 422.42, subsections 15 and 16, Code 11 19 Supplement 2001, are amended to read as follows: 11 20 15. Sales of building materials, supplies, and equipment 11 21 to owners, contractors, subcontractors or builders, for the 11 22 erection of buildings or the alteration, repair, or 11 23 improvement of real property, are retail sales in whatever 11 24 quantity sold. If a contractor, subcontractor, or builder is 11 25 to use building materials, supplies, and equipment in the 11 26 performance of a construction contract with a designated 11 27 exempt entity, the person shall purchase such items of 11 28 tangible personal property without liability for the tax if 11 29 such property will be used in the performance of the 11 30 construction contract and a purchasing agent authorization 11 31 letter and an exemption certificate, issued by the designated 11 32 exempt entity, are presented to the retailer. Where the 11 33 owner, contractor, subcontractor, or builder is also a 11 34 retailer holding a retail sales tax permit and transacting 11 35 retail sales of building materials, supplies, and equipment, 12 1 the person shall purchase such items of tangible personal 12 2 property without liability for the tax if such property will 12 3 be subject to the tax at the time of resale or at the time it 12 4 is withdrawn from inventory for construction purposes. The 12 5 sales tax shall be due in the reporting period when the 12 6 materials, supplies, and equipment are withdrawn from 12 7 inventory for construction purposes or when sold at retail. 12 8 The tax shall not be due when materials are withdrawn from 12 9 inventory for use in construction outside of Iowa and the tax 12 10 shall not apply to tangible personal property purchased and 12 11 consumed by the manufacturer as building materials in the 12 12 performance by the manufacturer or its subcontractor of 12 13 construction outside of Iowa. The tax shall not be due when 12 14 materials are withdrawn from inventory for use in construction 12 15 performed for a designated exempt entity if an exemption 12 16 certificate is received from such entity. 12 17 For the purposes of this subsection, the sale of carpeting 12 18 is not a sale of building materials. The sale of carpeting to 12 19 owners, contractors, subcontractors, or builders shall be 12 20 treated as the sale of ordinary tangible personal property and 12 21 subject to the tax imposed under section 422.43, subsection 1, 12 22 and the tax imposed under section 423.2. 12 23 For purposes of this subsection, "designated exempt entity" 12 24 means an entity which is designated in section 422.45, 12 25 subsection 7. 12 26 16. The use within this state of tangible personal 12 27 property by the manufacturerthereofof such property, as 12 28 building materials, supplies, or equipment, in the performance 12 29 of construction contracts in Iowa, shall, for the purpose of 12 30 this division, be construed as a sale at retailthereofof 12 31 such property by the manufacturer who shall be deemed to be 12 32 the consumer of such tangible personal property. The tax 12 33 shall be computed upon the cost to the manufacturer of the 12 34 fabrication or productionthereofof such property. However, 12 35 the tax shall not apply to tangible personal property 13 1 purchased and consumed by the manufacturer as building 13 2 materials, supplies, or equipment in the performance of a 13 3 construction contract for a designated exempt entity, as 13 4 defined in subsection 15, if a purchasing agent authorization 13 5 letter and an exemption certificate are received from such 13 6 entity and presented to the retailer. 13 7 Sec. 10. Section 422.45, subsection 7, paragraph b, 13 8 unnumbered paragraph 2, Code Supplement 2001, is amended to 13 9 read as follows: 13 10 Refunds authorized under this subsection shall accrue 13 11 interest at the rate in effect under section 421.7 from the 13 12 first day of thesecondthird calendar month following the 13 13 date the refund claim is received by the department. 13 14 Sec. 11. Section 422.45, Code Supplement 2001, is amended 13 15 by adding the following new subsection: 13 16 NEW SUBSECTION. 63. The gross receipts from the sale or 13 17 rental of tangible personal property or from services 13 18 performed, rendered, or furnished to a recognized community 13 19 action agency as provided in section 216A.93 to be used for 13 20 the purposes of the agency. 13 21 Sec. 12. Section 422.47, Code Supplement 2001, is amended 13 22 by adding the following new subsection: 13 23 NEW SUBSECTION. 5. For purposes of assisting retailers in 13 24 properly accounting for nontaxable sales of building 13 25 materials, supplies, and equipment to be used in the 13 26 performance of a construction contract for a designated exempt 13 27 entity, as defined in section 422.42, subsection 15, the 13 28 designated exempt entity shall issue a purchasing agent 13 29 authorization letter and an exemption certificate to the 13 30 contractor, subcontractor, builder, or manufacturer to be used 13 31 as provided in section 422.42, subsection 15 or 16. The 13 32 authorization letter and the exemption certificate shall 13 33 specify the construction project to which they apply and shall 13 34 be valid only for that project. 13 35 The designated exempt entity shall notify the department 14 1 that such authorization letter and exemption certificate have 14 2 been issued. The notification shall, to the extent 14 3 practicable, describe the project and identify the 14 4 contractors, subcontractors, builders, and manufacturers which 14 5 will be using the letter and certificate. 14 6 If a designated exempt entity is required by law to 14 7 advertise for bids with regard to the construction project, 14 8 the entity shall include in its notice to bidders that the 14 9 entity will issue an exemption certificate for the purchase or 14 10 use of building materials, supplies, and equipment that will 14 11 be used in the performance of the construction contract. 14 12 The provisions of subsection 3, paragraphs "b", "d", and 14 13 "e", to the extent not inconsistent with this subsection shall 14 14 apply to this subsection. 14 15 Sec. 13. Section 422.54, subsection 1, Code 2001, is 14 16 amended by adding the following new unnumbered paragraph: 14 17 NEW UNNUMBERED PARAGRAPH. The director, in cooperation 14 18 with the department of management, may periodically change the 14 19 filing and remittance thresholds under sections 422.51 and 14 20 422.52 by administrative rule if in the best interest of the 14 21 state and the taxpayer to do so. 14 22 Sec. 14. Section 422.91, unnumbered paragraph 1, Code 14 23 2001, is amended to read as follows: 14 24 Any amount of estimated tax paid is a credit against the 14 25 amount of tax due on a final, completed return, and any 14 26 overpayment of five dollars or more shall be refunded to the 14 27 taxpayer with interest, the interest to begin to accrue on the 14 28 first day of thesecondthird calendar month following the 14 29 date of payment or the date the return was due to be filed or 14 30 was filed, whichever is the latest, at the rate established 14 31 under section 421.7, and the return constitutes a claim for 14 32 refund for this purpose. Amounts less than five dollars shall 14 33 be refunded to the taxpayer only upon written application in 14 34 accordance with section 422.73, and only if the application is 14 35 filed within twelve months after the due date for the return. 15 1 Sec. 15. Section 422B.10, subsection 2, paragraph a, Code 15 2 2001, is amended to read as follows: 15 3 a. The director of revenue and financewithin fifteen days15 4of the beginningby August 15 of each fiscal year shall send 15 5 to each city or county where the local option tax is imposed, 15 6 an estimate of the amount of tax moneys each city or county 15 7 will receive for the year and for each month of the year. At 15 8 the end of each month, the director may revise the estimates 15 9 for the year and remaining months. 15 10 Sec. 16. Section 422E.3, subsection 5, paragraph a, Code 15 11 Supplement 2001, is amended to read as follows: 15 12 a. The director of revenue and financewithin fifteen days15 13of the beginningby August 15 of each fiscal year shall send 15 14 to each school district where the tax is imposed an estimate 15 15 of the amount of tax moneys each school district will receive 15 16 for the year and for each month of the year. At the end of 15 17 each month, the director may revise the estimates for the year 15 18 and remaining months. 15 19 Sec. 17. Section 423.13, Code 2001, is amended by adding 15 20 the following new unnumbered paragraph: 15 21 NEW UNNUMBERED PARAGRAPH. The director, in cooperation 15 22 with the department of management, may periodically change the 15 23 filing and remittance thresholds by administrative rule if in 15 24 the best interest of the state and the taxpayer to do so. 15 25 Sec. 18. Section 425.7, subsection 3, unnumbered paragraph 15 26 2, Code Supplement 2001, is amended to read as follows: 15 27 If a claim is disallowed by the director of revenue and 15 28 finance and not appealed to the state board of tax review or 15 29 appealed toand upheld bythe state board of tax review anda15 30petition for judicial review is not filed with respect to the15 31disallowancethereafter upheld upon final resolution, 15 32 including any judicial review, any amounts of credits allowed 15 33 and paid from the homestead credit fund including the penalty, 15 34 if any, become a lien upon the property on which credit was 15 35 originally granted, if still in the hands of the claimant, and 16 1 not in the hands of a bona fide purchaser, and any amount so 16 2 erroneously paid including the penalty, if any, shall be 16 3 collected by the county treasurer in the same manner as other 16 4 taxes and the collections shall be returned to the department 16 5 of revenue and finance and credited to the homestead credit 16 6 fund. The director of revenue and finance may institute legal 16 7 proceedings against a homestead credit claimant for the 16 8 collection of payments made on disallowed credits and the 16 9 penalty, if any. If a person makes a false claim or affidavit 16 10 with fraudulent intent to obtain the homestead credit, the 16 11 person is guilty of a fraudulent practice and the claim shall 16 12 be disallowed in full. If the credit has been paid, the 16 13 amount of the credit plus a penalty equal to twenty-five 16 14 percent of the amount of credit plus interest, at the rate in 16 15 effect under section 421.7, from the time of payment shall be 16 16 collected by the county treasurer in the same manner as other 16 17 property taxes, penalty, and interest are collected and when 16 18 collected shall be paid to the director of revenue and 16 19 finance. If a homestead credit is disallowed and the claimant 16 20 failed to give written notice to the assessor as required by 16 21 section 425.2 when the property ceased to be used as a 16 22 homestead by the claimant, a civil penalty equal to five 16 23 percent of the amount of the disallowed credit is assessed 16 24 against the claimant. 16 25 Sec. 19. Section 425A.4, Code Supplement 2001, is amended 16 26 by adding the following new subsection: 16 27 NEW SUBSECTION. 5. If the director of revenue and finance 16 28 determines that a claim for family farm tax credit has been 16 29 allowed by a board of supervisors which is not justifiable 16 30 under the law and not substantiated by proper facts, the 16 31 director may, at any time within thirty-six months from July 1 16 32 of the year for which the claim is allowed, set aside the 16 33 allowance. Notice of the disallowance shall be given to the 16 34 county auditor of the county in which the claim has been 16 35 improperly granted and a written notice of the disallowance 17 1 shall also be addressed to the claimant at the claimant's last 17 2 known address. The claimant or the board of supervisors may 17 3 appeal to the state board of tax review pursuant to section 17 4 421.1, subsection 4. The claimant or the board of supervisors 17 5 may seek judicial review of the action of the state board of 17 6 tax review in accordance with chapter 17A. 17 7 If a claim is disallowed by the director of revenue and 17 8 finance and not appealed to the state board of tax review or 17 9 appealed to the state board of tax review and thereafter 17 10 upheld upon final resolution, including any judicial review, 17 11 the credits allowed and paid become a lien upon the property 17 12 on which the credit was originally granted, if still in the 17 13 hands of the claimant and not in the hands of a bona fide 17 14 purchaser, and any amount so erroneously paid, including the 17 15 penalty, if any, shall be collected by the county treasurer in 17 16 the same manner as other taxes, and the collections shall be 17 17 returned to the department of revenue and finance and credited 17 18 to the general fund of the state. The director of revenue and 17 19 finance may institute legal proceedings against a family farm 17 20 tax credit claimant for the collection of payments made on 17 21 disallowed credits and the penalty, if any. 17 22 Sec. 20. Section 426A.6, Code 2001, is amended to read as 17 23 follows: 17 24 426A.6 SETTING ASIDE ALLOWANCE. 17 25 If the director of revenue and finance determines that a 17 26 claim for military service tax exemption has been allowed by a 17 27 board of supervisors which is not justifiable under the law 17 28 and not substantiated by proper facts, the director may, at 17 29 any time within thirty-six months from July 1 of the year in 17 30 which the claim is allowed, set aside the allowance. Notice 17 31 of the disallowance shall be given to the county auditor of 17 32 the county in which the claim has been improperly granted and 17 33 a written notice of the disallowance shall also be addressed 17 34 to the claimant at the claimant's last known address. The 17 35 claimant or the board of supervisors may appeal to the state 18 1 board of tax review pursuant to section 421.1, subsection 4. 18 2 The claimant or the board of supervisors may seek judicial 18 3 review of the action of the state board of tax review in 18 4 accordance with chapter 17A. If a claim is disallowed by the 18 5 director of revenue and finance and not appealed to the state 18 6 board of tax review or appealed toand upheld bythe state 18 7 board of tax review anda petition for judicial review is not18 8filed with respect to the disallowancethereafter upheld upon 18 9 final resolution, including judicial review, the credits 18 10 allowed and paid from the general fund of the state become a 18 11 lien upon the property on which the credit was originally 18 12 granted, if still in the hands of the claimant and not in the 18 13 hands of a bona fide purchaser, the amount so erroneously paid 18 14 shall be collected by the county treasurer in the same manner 18 15 as other taxes, and the collections shall be returned to the 18 16 department of revenue and finance and credited to the general 18 17 fund of the state. The director of revenue and finance may 18 18 institute legal proceedings against a military service tax 18 19 exemption claimant for the collection of payments made on 18 20 disallowed exemptions. 18 21 Sec. 21. Section 426A.11, subsection 3, Code Supplement 18 22 2001, is amended to read as follows: 18 23 3. Where the word "veteran" appears in this chapter, it 18 24 includes, without limitation, the members of the United States 18 25 air force,and the United Statesmerchant marine, and coast 18 26 guard. 18 27 Sec. 22. Section 427.1, subsection 5, Code Supplement 18 28 2001, is amended to read as follows: 18 29 5. PROPERTY OF ASSOCIATIONS OF WAR VETERANS. The property 18 30 of any organization composed wholly of veterans of any war, 18 31 when such property is devoted entirely to its own use and not 18 32 held for pecuniary profit. The operation of bingo games on 18 33 property of such organization shall not adversely affect the 18 34 exemption of that property under this subsection if all 18 35 proceeds, in excess of expenses, are used for the legitimate 19 1 purposes of the organization. 19 2 Sec. 23. Section 445.5, Code 2001, is amended by adding 19 3 the following new subsection: 19 4 NEW SUBSECTION. 1A. If an equalization order was issued 19 5 by the state pursuant to section 441.47 for the assessment 19 6 year for which the taxes on the statement were calculated, for 19 7 each class of property for which an increase in assessed value 19 8 was ordered in the equalization order, the statement to each 19 9 taxpayer for that class of property shall contain the 19 10 following statement: 19 11 "As a result of state-ordered equalization of assessments, 19 12 the levy rate applied against your taxable valuation should 19 13 have decreased by $(dollars and cents) per thousand dollars of 19 14 taxable value based on the budgets from the previous year. If 19 15 your statement does not reflect that decrease, it is because 19 16 of action taken by one or more local taxing authorities to 19 17 increase its budget from the previous year." 19 18 Sec. 24. Section 450.94, subsection 3, Code 2001, is 19 19 amended to read as follows: 19 20 3. If the amount paid is greater than the correct tax, 19 21 penalty, and interest due, the department shall refund the 19 22 excess with interest. Interest shall be computed at the rate 19 23 in effect under section 421.7, under the rules prescribed by 19 24 the director counting each fraction of a month as an entire 19 25 month and the interest shall begin to accrue on the first day 19 26 of thesecondthird calendar month following the date of 19 27 payment or on the date the return was due to be filed or was 19 28 filed, whichever is the latest. However, the director shall 19 29 not allow a claim for refund or credit that has not been filed 19 30 with the department within three years after the tax payment 19 31 upon which a refund or credit is claimed became due, or one 19 32 year after the tax payment was made, whichever time is later. 19 33 A determination by the department of the amount of tax, 19 34 penalty, and interest due, or the amount of refund for excess 19 35 tax paid, is final unless the person aggrieved by the 20 1 determination appeals to the director for a revision of the 20 2 determination within sixty days from the date of the notice of 20 3 determination of tax, penalty, and interest due or refund 20 4 owing or unless the taxpayer contests the determination by 20 5 paying the tax, interest, and penalty and timely filing a 20 6 claim for refund. The director shall grant a hearing, and 20 7 upon the hearing the director shall determine the correct tax, 20 8 penalty, and interest or refund due, and notify the appellant 20 9 of the decision by mail. The decision of the director is 20 10 final unless the appellant seeks judicial review of the 20 11 director's decision under section 450.59 within sixty days 20 12 after the date of the notice of the director's decision. 20 13 Sec. 25. Section 452A.2, Code Supplement 2001, is amended 20 14 by adding the following new subsection: 20 15 NEW SUBSECTION. 1A. "Biofuel" means an oxygenated product 20 16 derived from soybean oil, vegetable oil, or animal fats that 20 17 can be used in diesel engines or aircraft. Biofuel may be a 20 18 blend with diesel fuel or it may be one hundred percent 20 19 soybean oil, vegetable oil, or animal fats. Any biofuel 20 20 product is a special fuel. 20 21 Sec. 26. Section 452A.6, Code 2001, is amended to read as 20 22 follows: 20 23 452A.6 ETHANOL BLENDED GASOLINE AND OTHER PRODUCTS 20 24 BLENDER'S LICENSE. 20 25 A person other than a supplier, restrictive supplier, or 20 26 importer licensed under this division, who blends gasoline 20 27 with alcohol distilled from cereal grains so that the blend 20 28 contains at least ten percent alcohol distilled from cereal 20 29 grains, shall obtain a blender's license. A person who blends 20 30 two or more special fuel products or sells one hundred percent 20 31 biofuel shall obtain a blender's license. The license shall 20 32 be obtained by following the procedure under section 452A.4 20 33 and the license is subject to the same restrictions as 20 34 contained in that section. A blender shall maintain records 20 35 as required by section 452A.10 as to motor fuel, alcohol,and21 1 ethanol blended gasoline, and special fuels. 21 2 Sec. 27. Section 452A.8, subsection 3, Code 2001, is 21 3 amended to read as follows: 21 4 3. For the purpose of determining the amount of the tax 21 5 liability on alcohol blended to produce ethanol blended 21 6 gasoline or a blend of special fuel products, each licensed 21 7 blender shall, not later than the last day of each month 21 8 following the month in which the blending is done, file with 21 9 the department a monthly return, signed under penalty for 21 10 false certificate, containing information required by rules 21 11 adopted by the director. 21 12 Sec. 28. Section 452A.9, Code 2001, is amended to read as 21 13 follows: 21 14 452A.9 RETURNS FROM PERSONS NOT LICENSED AS SUPPLIERS, 21 15 RESTRICTIVE SUPPLIERS,ORIMPORTERS OR BLENDERS. 21 16 Every person other than a licensed supplier, restrictive 21 17 supplier,orimporter or blender, who purchases, brings into 21 18 this state, or otherwise acquires within this state motor fuel 21 19 or undyed special fuel, not otherwise exempted, which the 21 20 person has knowingly not paid or incurred liability to pay 21 21 either to a licensee or to a dealer the motor fuel or special 21 22 fuel tax, shall be subject to the provisions of this division 21 23 that apply to suppliers, restrictive suppliers,andimporters 21 24 and blenders of motor fuel or undyed special fuel and shall 21 25 file the same returns and make the same tax payments and be 21 26 subject to the same penalties for delinquent filing or 21 27 nonfiling or delinquent payment or nonpayment as apply to 21 28 suppliers, restrictive suppliers,andimporters and blenders. 21 29 Sec. 29. Section 452A.15, subsection 1, unnumbered 21 30 paragraph 1, Code 2001, amended to read as follows: 21 31 Every railroad and common carrier or contract carrier 21 32 transporting motor fuel or special fuel either in interstate 21 33 or intrastate commerce within this state and every person 21 34 transporting motor fuel or special fuel by whatever manner 21 35 into this state shall, subject to penalties for false 22 1 certificate, report to the department all deliveries of motor 22 2 fuel or special fuel to points within this state other than 22 3 refineries or marine or pipeline terminals. If any supplier, 22 4 restrictive supplier, importer, blender, or distributor is 22 5 also engaged in the transportation of motor fuel or special 22 6 fuel for others, the supplier, restrictive supplier, importer, 22 7 blender, or distributor shall make the same reports as 22 8 required of common carriers and contract carriers. 22 9 Sec. 30. Section 452A.15, Code 2001, is amended by adding 22 10 the following new subsection: 22 11 NEW SUBSECTION. 2. Persons operating storage facilities 22 12 at a nonterminal location shall file a monthly report with the 22 13 department accounting for all motor fuel, alcohol, and special 22 14 fuel that is delivered into, stored within, withdrawn from, or 22 15 sold from the storage facility. 22 16 Sec. 31. Section 452A.15, Code 2001, is amended by adding 22 17 the following new subsection: 22 18 NEW SUBSECTION. 4. The director may impose a civil 22 19 penalty against any person who fails to file the reports or 22 20 keep the records required under this section. The penalty 22 21 shall be one hundred dollars for the first violation and shall 22 22 increase by one hundred dollars for each additional violation 22 23 occurring in the calendar year in which the first violation 22 24 occurred. 22 25 Sec. 32. Section 452A.60, unnumbered paragraph 1, Code 22 26 2001, is amended to read as follows: 22 27 The department of revenue and finance or the state 22 28 department of transportation shall prescribe and furnish all 22 29 forms, as applicable, upon which reports, returns, and 22 30 applications shall be made and claims for refund presented 22 31 under this chapter and may prescribe forms of record to be 22 32 kept by suppliers, restrictive suppliers, importers, 22 33 exporters, blenders, common carriers, contract carriers, 22 34 licensed compressed natural gas and liquefied petroleum gas 22 35 dealers and users, terminal operators, nonterminal storage 23 1 facility operations, and interstate commercial motor vehicle 23 2 operators. 23 3 Sec. 33. Section 452A.62, subsection 2, unnumbered 23 4 paragraph 1, Code 2001, is amended to read as follows: 23 5 To examine the records, books, papers, receipts, and 23 6 invoices of any distributor, supplier, restrictive supplier, 23 7 importer, blender, exporter, terminal operator, licensed 23 8 compressed natural gas or liquefied petroleum gas dealer or 23 9 user, or any other person who possesses fuel upon which the 23 10 tax has not been paid to determine financial responsibility 23 11 for the payment of the taxes imposed by this chapter. 23 12 Sec. 34. Section 452A.65, unnumbered paragraph 1, Code 23 13 2001, is amended to read as follows: 23 14 In addition to the tax or additional tax, the taxpayer 23 15 shall pay a penalty as provided in section 421.27. The 23 16 taxpayer shall also pay interest on the tax or additional tax 23 17 at the rate in effect under section 421.7 counting each 23 18 fraction of a month as an entire month, computed from the date 23 19 the return was required to be filed. If the amount of the tax 23 20 as determined by the appropriate state agency is less than the 23 21 amount paid, the excess shall be refunded with interest, the 23 22 interest to begin to accrue on the first day of thesecond23 23 third calendar month following the date of payment or the date 23 24 the return was due to be filed or was filed, whichever is the 23 25 latest, at the rate in effect under section 421.7 counting 23 26 each fraction of a month as an entire month under the rules 23 27 prescribed by the appropriate state agency. Claims for refund 23 28 filed under sections 452A.17 and 452A.21 shall accrue interest 23 29 beginning with the first day of thesecondthird calendar 23 30 month following the date the refund claim is received by the 23 31 department. 23 32 Sec. 35. Section 516D.3, subsection 6, paragraphs a and b, 23 33 Code 2001, are amended to read as follows: 23 34 a. Mandatory charge does not include anoptional airport23 35imposedairport-imposed fee if the existence and amount of the 24 1 fee are clearly and conspicuously disclosed immediately 24 2 adjacent to any advertised rental price. Theadvertisement24 3must clearly and conspicuously state the method of avoiding24 4the airport access fee and thecustomer must be informed of 24 5 the amount of the fee when the reservation is made. When an 24 6 advertisement encompasses more than one rental location, the 24 7 fee may be expressed as the maximum fee or range of fees. 24 8 b. Mandatory charge does not include taxes imposed 24 9 directly upon the rental transaction by an authorized taxing 24 10 authority.An airport imposed fee on gross receipts or an24 11airport access fee is not such a tax.24 12 Sec. 36. Notwithstanding the filing deadline provided in 24 13 section 427.1, subsection 14, the filing deadline for 24 14 organizations, institutions, or societies required to file a 24 15 claim for a property tax exemption for the assessment year 24 16 beginning January 1, 2002, for taxes due and payable in the 24 17 fiscal year beginning July 1, 2003, shall be October 1, 2002. 24 18 Sec. 37. Section 70A.17, Code 2001, is repealed. 24 19 Sec. 38. EFFECTIVE DATES. 24 20 1. The sections of this Act amending section 421.60; 24 21 section 422.16, subsection 9; section 422.25; section 422.28; 24 22 section 422.45, subsection 7; section 422.91; section 450.94; 24 23 and section 452A.65, relating to when interest on tax refunds 24 24 begins to accrue, take effect June 1, 2002. 24 25 2. The sections of this Act amending sections 422.42 and 24 26 422.47 take effect January 1, 2003, and apply to construction 24 27 contracts entered into on or after that date. 24 28 3. The section of this Act extending the time for filing a 24 29 claim for property tax exemptions by certain organizations, 24 30 institutions, or societies, being deemed of immediate 24 31 importance, takes effect upon enactment. 24 32 EXPLANATION 24 33 Code chapter 421 is amended to provide for a new collection 24 34 method designated as new Code section 421.17B. The new method 24 35 is an administrative wage assignment. An administrative wage 25 1 assignment is an expedited means to collect outstanding debts 25 2 owed to the state of Iowa. This collection method is to be 25 3 used by the department after all administrative remedies are 25 4 waived or exhausted by the obligor. An administrative wage 25 5 assignment allows the department to use compensation that is 25 6 owed to an obligor for payment of wages to be applied against 25 7 a debt owed by the obligor to the state. The method is 25 8 similar in concept to the administrative levy process 25 9 authorized in Code section 421.17A enacted in 1995. 25 10 Code section 421.31(3) amends the powers and duties of the 25 11 director regarding the audit of claims. Currently, the 25 12 department is required to audit all claims. The proposed 25 13 change will require the director to set rules and procedures 25 14 for the preaudit of claims by an agency or organization. 25 15 Currently, agencies preaudit most of their claims. The change 25 16 also allows the department to refuse any incomplete or 25 17 incorrect claims and to audit claims as determined by the 25 18 director. 25 19 A new Code section 421.47 is created which authorizes the 25 20 department of revenue and finance to enter into agreements 25 21 with an Indian tribe to collect and distribute or refund a 25 22 state tax or a tribal tax. The new provision further provides 25 23 that if the department collects and distributes a tribal tax 25 24 on behalf of the Indian tribe, the department may charge a 25 25 mutually agreed-upon administrative fee. However, the 25 26 agreement is preempted by an Act of Congress that regulates 25 27 the collection of state taxes covered by the agreement. 25 28 Code sections 421.60(2), 422.16(9), 422.25(3), 422.28, 25 29 422.45(7), 422.91, 450.94, and 452A.65 are amended to extend 25 30 the date the state is required to start paying interest on tax 25 31 refunds from the first day of the second month following the 25 32 due date of the tax return to the first day of the third month 25 33 following the due date of the tax return. These amendments 25 34 are effective June 1, 2002. 25 35 Code sections 422.16(2), 422.54(1), and 423.13 authorize 26 1 the director, in cooperation with the department of 26 2 management, to change the filing and remittance thresholds as 26 3 they relate to income, sales, and use taxes if in the best 26 4 interest of the state and the taxpayer. 26 5 Code sections 422.42(15) and (16) and 422.47 are amended to 26 6 change the current method of imposing and refunding the sales 26 7 and use taxes on building materials, supplies, and equipment 26 8 used in a construction project for exempt entities. Under 26 9 current law, contractors are considered the consumer of 26 10 building materials, supplies, and equipment in the performance 26 11 of construction contracts and must pay the appropriate sales 26 12 or use tax. The tax is paid even if the construction contract 26 13 is with a state or local government agency, educational 26 14 institution, or other exempt entity. However, the agency, 26 15 institution, or other entity will receive a refund from the 26 16 state in the amount of sales and use taxes paid. The changes 26 17 to Code sections 422.42(15) and (16) and 422.47 provide for 26 18 the avoidance of the original payment of the sales or use tax 26 19 by authorizing the tax-exempt entity to issue an exemption 26 20 certificate so that the contractor may purchase the building 26 21 materials, supplies, and equipment tax-free or in the case 26 22 where a contractor is a retailer and does not pay the tax at 26 23 the time of purchase, the contractor would not pay the tax 26 24 when the materials, supplies, and equipment are withdrawn from 26 25 inventory. If the materials, supplies, and equipment are not 26 26 used for the project of the exempt entity, the contractor may 26 27 be subject to the penalties for perjury. The amendments also 26 28 provide that when an entity that is subject to public bidding 26 29 laws advertises for bids, the notice to bidders must contain a 26 30 provision that a tax exemption certificate for the purchase of 26 31 building materials, supplies, and equipment will be issued. 26 32 These amendments take effect January 1, 2003, and apply to 26 33 construction contracts entered into on or after that date. 26 34 Code section 422.45, new subsection 63, is enacted to 26 35 exempt from state sales and use taxes the sales and rentals of 27 1 tangible property and furnishing of services to community 27 2 action agencies for use by the agencies. 27 3 Code sections 422B.10(2) and 422E.3(5) are amended to 27 4 provide the director additional time to determine and notify 27 5 cities and counties of the estimated amount of local option 27 6 taxes they will be receiving in the fiscal year. 27 7 Code sections 425.7(3) and 426A.6 are amended to specify 27 8 the appeal process for the taxpayer if the director disallows 27 9 a claim for the homestead property tax credit or military 27 10 service property tax exemption, respectively. 27 11 Code section 425A.4 is amended to permit the director to 27 12 disallow invalid claims for the family farm property tax 27 13 credit. The director has this authority for homestead tax 27 14 credits, military service tax credits, and tax credits for the 27 15 elderly and disabled. The director also has the authority to 27 16 revoke property tax exemptions allowed by local government 27 17 taxing officials that are found to have been allowed contrary 27 18 to law. 27 19 Code section 426A.11(3) is amended to add members of the 27 20 United States coast guard as eligible veterans for purposes of 27 21 receiving the military service property tax exemption. 27 22 Code section 427.1(5) is amended to provide that the 27 23 operation of bingo games on property of a veterans 27 24 organization does not affect the property tax exemption of the 27 25 property if the proceeds in excess of expenses are used for 27 26 the legitimate purposes of the organization. 27 27 Code section 445.5, new subsection 1A, is enacted to 27 28 require that the property tax statement shall contain a 27 29 statement to the effect that if the valuations of the 27 30 taxpayer's class of property have increased as a result of 27 31 state equalization then the taxpayer's tax rate should 27 32 decrease based on the budgets for the previous year and that 27 33 if the rates have not, it is because of the increase in local 27 34 taxing authorities' budgets. 27 35 Code section 452A.2, new subsection 1A, is enacted to 28 1 define biofuel as an oxygenated product derived from soybean 28 2 oil, vegetable oil, or animal fats that can be used in diesel 28 3 engines or aircraft and to specify that any biofuel product or 28 4 biofuel blend with diesel fuel is a special fuel for purposes 28 5 of the tax on fuels. Code sections 452A.6, 452A.8(3), 452A.9, 28 6 452A.15, 452A.60, and 452A.62(2) are amended to make 28 7 coordinating changes to effectuate the tax on biofuel. 28 8 Code section 452A.15 is amended to impose a penalty for 28 9 failure to file required reports against persons transporting 28 10 fuel, operating storage facilities, or operating refineries in 28 11 Iowa. The department uses these reports to track fuel 28 12 movements but they are often not filed because there is no 28 13 penalty for failure to do so. 28 14 Code section 516D.3(6) is amended to change the definition 28 15 of "mandatory charge" under the Iowa car rental and collision 28 16 damage waiver chapter. The amendment excludes airport-imposed 28 17 fees from the definition if the amount of the fee is clearly 28 18 and conspicuously disclosed and the customer is informed of 28 19 the amount, and excludes airport-imposed fees on gross 28 20 receipts or airport access fee. 28 21 Code section 70A.17 is repealed to eliminate the director's 28 22 authority to withhold insurance premiums payable for other 28 23 than a state-sponsored insurance program at the request of the 28 24 state employee and to remit the amount withheld to the 28 25 insurance company designated by the employee. 28 26 This bill adds a noncode provision that extends the 28 27 deadline by which a statement of objects and uses must be 28 28 filed for certain organizations and institutions claiming a 28 29 property tax exemption. The filing deadline is extended from 28 30 February 1 to October 1, but only for the 2002 assessment 28 31 year, which is for taxes due and payable in the fiscal year 28 32 beginning July 1, 2003. The organizations and institutions 28 33 include veterans organizations and literary, scientific, 28 34 charitable, benevolent, agricultural, and religious 28 35 institutions. The provision takes effect upon enactment. 29 1 LSB 7099HC 79 29 2 mg/pj/5
Text: HSB00720 Text: HSB00722 Text: HSB00700 - HSB00799 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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