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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