Text: SF02320 Text: SF02322 Text: SF02300 - SF02399 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 SENATE FILE 2321 1 2 1 3 AN ACT 1 4 RELATING TO SALES AND USE TAXES BY REQUIRING THE DEPARTMENT 1 5 OF REVENUE AND FINANCE TO COLLECT DATA ON THE EXTENT AND 1 6 THE EFFECT ON TAXES OF ELECTRONIC COMMERCE IN THE STATE, 1 7 STRIKING THE REPEAL OF THE TAX TREATMENT OF SALES WHERE THE 1 8 SUBSTANCE OF THE TRANSACTION IS DELIVERED BY ELECTRONIC 1 9 WAVES, DIGITALLY, OR BY WAY OF CABLE OR FIBER OPTICS, AND 1 10 ESTABLISHING A COMMITTEE TO ENTER INTO MULTISTATE DISCUSSIONS 1 11 ON THE SIMPLIFICATION OF THE SALES AND USE TAXES AND 1 12 INCLUDING AN EFFECTIVE DATE. 1 13 1 14 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 1 15 1 16 Section 1. NEW SECTION. 421.70 ELECTRONIC COMMERCE DATA 1 17 COLLECTION. 1 18 1. SHORT TITLE. This section shall be known and may be 1 19 cited as the "Electronic Commerce and New Economy Data 1 20 Collection Act". 1 21 2. PURPOSE. The purpose of this section is to require the 1 22 department of revenue and finance to begin collecting valid 1 23 Iowa-specific data concerning the extent of electronic 1 24 commerce within Iowa, and to expand the number of factors used 1 25 when projecting estimated net gains or losses in tax revenues 1 26 from electronic commerce. 1 27 3. DEFINITIONS. As used in this section: 1 28 a. "Electronic commerce" means business-to-consumer sales 1 29 conducted via the internet that is subject to taxation levied 1 30 under chapter 422, division IV, or chapter 423. Electronic 1 31 commerce includes, but is not limited to, the sale of tangible 1 32 and intangible goods. 1 33 b. "Electronic commerce vendor" means a person engaged in 1 34 business-to-consumer sales of goods or services. 1 35 c. "Person" means a natural person or via the internet any 2 1 other entity subject to retail sales and use taxation under 2 2 chapter 422, division IV, or chapter 423. 2 3 4. ANNUAL REPORT. The department shall collect primary 2 4 and supplementary data to accurately measure the level of 2 5 electronic commerce activity within the state. The primary 2 6 data set shall include, but is not limited to, the number of 2 7 electronic commerce vendors domiciled within the state, if 2 8 obtainable; gross retail sales of electronic commerce vendors 2 9 domiciled within the state; an estimate of the number of in- 2 10 state electronic commerce transactions conducted by persons 2 11 within the state boundaries based on accepted standards of 2 12 scientific sampling; an estimate of the number of out-of-state 2 13 electronic commerce transactions conducted by persons within 2 14 the state boundaries based on accepted standards of scientific 2 15 sampling; an estimate of the total value of electronic 2 16 commerce transactions conducted by persons within state 2 17 boundaries during a fiscal year; a reliable estimate of the 2 18 use tax revenue that is uncollected due to out-of-state 2 19 electronic commerce; and a reliable estimate of income, 2 20 property, excise, and other revenues paid to the state and its 2 21 political subdivisions by electronic commerce vendors. 2 22 Collection of primary data shall be considered part of the 2 23 department's normal duties and shall not require an additional 2 24 budgetary appropriation. The department shall supplement 2 25 primary data with information supplied by the United States 2 26 department of commerce, the United States census bureau, the 2 27 United States small business administration, any other federal 2 28 agency collecting electronic commerce data, and if obtainable, 2 29 affiliated state data centers. The department may use 2 30 information gathered from private, academic, and 2 31 nongovernmental entities provided that the source and 2 32 methodology is clearly stated within the text of the report. 2 33 The department shall not cite, as authoritative sources, 2 34 studies conducted by private, academic, and nongovernmental 2 35 entities that are speculative in nature or based on 3 1 unscientific methods. In addition, the department shall 3 2 include an analysis of the financial impact increased sales 3 3 and use tax collection requirements would have on in-state 3 4 companies engaged in electronic commerce. The data shall be 3 5 compiled in the form of an annual report to be delivered to 3 6 the general assembly no later than February 1 of each year. 3 7 5. REPEAL. This section is repealed March 1, 2005. 3 8 Sec. 2. Section 422.43, subsection 15, unnumbered 3 9 paragraph 2, Code Supplement 2001, is amended by striking the 3 10 unnumbered paragraph. 3 11 Sec. 3. Section 423.1, subsection 13, unnumbered paragraph 3 12 2, Code Supplement 2001, is amended by striking the unnumbered 3 13 paragraph. 3 14 Sec. 4. SALES TAX SIMPLIFICATION MULTISTATE 3 15 DISCUSSIONS. 3 16 1. AGREEMENT. Delegates appointed pursuant to subsection 3 17 2 shall enter into multistate discussions on behalf of this 3 18 state to consider whether this state should enter into an 3 19 agreement with one or more other states to do all of the 3 20 following: 3 21 a. Simplify and modernize sales and use tax administration 3 22 in order to substantially reduce the burden of tax compliance 3 23 for sellers and for all types of commerce. 3 24 b. Establish standards for sales and use tax compliance 3 25 software and service providers. 3 26 c. Establish performance standards for multistate sellers. 3 27 2. DELEGATES. For the purposes of this section, delegates 3 28 shall be appointed as follows: 3 29 a. One delegate shall be a member of the house of 3 30 representatives who is appointed by the speaker of the house 3 31 of representatives or the delegate's designee who shall also 3 32 be a member of the house of representatives. 3 33 b. One delegate shall be a member of the senate who is 3 34 appointed by the majority leader of the senate or the 3 35 delegate's designee who shall also be a member of the senate. 4 1 c. Two delegates shall be appointed by the governor, one 4 2 of whom shall be the director of revenue and finance, or each 4 3 delegate's designee. 4 4 3. RECOMMENDATIONS. After meeting with similar 4 5 delegations from other states, the delegates shall make 4 6 recommendations to the general assembly regarding the issues 4 7 the delegates are required to consider under subsection 1 and 4 8 any other issue the general assembly may require the delegates 4 9 to consider. 4 10 4. LEGISLATION. If the delegates determine that this 4 11 state should enter into an agreement with one or more other 4 12 states, the delegates shall recommend the preparation of 4 13 legislation to bring this state into substantial compliance 4 14 with the agreement as a result of the multistate discussions 4 15 required by this section. 4 16 5. DEFINITIONS. In this section, unless the context 4 17 otherwise requires: 4 18 a. "Agreement" means an interstate agreement for 4 19 simplification and uniformity of taxation among member states 4 20 in order to reduce the burden of tax compliance for sellers 4 21 and for all types of commerce. 4 22 b. "Seller" means a person that sells, leases, or rents 4 23 tangible personal property or a service. 4 24 c. "State" means a state of the United States and the 4 25 District of Columbia. 4 26 d. "Tax" or "taxes" means the state sales and use taxes 4 27 imposed under chapter 422, division IV, and chapter 423, or a 4 28 similar tax imposed by a political subdivision of this state. 4 29 6. REPEAL. This section is repealed March 1, 2005. 4 30 Sec. 5. EFFECTIVE DATE. This Act, being deemed of 4 31 immediate importance, takes effect upon enactment. 4 32 4 33 4 34 4 35 MARY E. KRAMER 5 1 President of the Senate 5 2 5 3 5 4 5 5 BRENT SIEGRIST 5 6 Speaker of the House 5 7 5 8 I hereby certify that this bill originated in the Senate and 5 9 is known as Senate File 2321, Seventy-ninth General Assembly. 5 10 5 11 5 12 5 13 MICHAEL E. MARSHALL 5 14 Secretary of the Senate 5 15 Approved , 2002 5 16 5 17 5 18 5 19 THOMAS J. VILSACK 5 20 Governor
Text: SF02320 Text: SF02322 Text: SF02300 - SF02399 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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