Text: SSB03193 Text: SSB03195 Text: SSB03100 - SSB03199 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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1 1 Section 1. NEW SECTION. 421.70 ELECTRONIC COMMERCE DATA
1 2 COLLECTION.
1 3 1. SHORT TITLE. This section shall be known and may be
1 4 cited as the "Electronic Commerce and New Economy Data
1 5 Collection Act".
1 6 2. PURPOSE. The purpose of this section is to require the
1 7 department of revenue and finance to begin collecting valid
1 8 Iowa-specific data concerning the extent of electronic
1 9 commerce within Iowa, and to expand the number of factors used
1 10 when projecting estimated net gains or losses in tax revenues
1 11 from electronic commerce.
1 12 3. DEFINITIONS. As used in this section:
1 13 a. "Electronic commerce" means business-to-consumer sales
1 14 conducted via the internet that is subject to taxation levied
1 15 under chapter 422, division IV, or chapter 423. Electronic
1 16 commerce includes, but is not limited to, the sale of tangible
1 17 and intangible goods.
1 18 b. "Electronic commerce vendor" means a person engaged in
1 19 business-to-consumer sales of goods or services.
1 20 c. "Person" means a natural person or via the internet any
1 21 other entity subject to retail sales and use taxation under
1 22 chapter 422, division IV, or chapter 423.
1 23 4. ANNUAL REPORT. The department shall collect primary
1 24 and supplementary data to accurately measure the level of
1 25 electronic commerce activity within the state. The primary
1 26 data set shall include, but is not limited to, the number of
1 27 electronic commerce vendors domiciled within the state, if
1 28 obtainable; gross retail sales of electronic commerce vendors
1 29 domiciled within the state; an estimate of the number of in-
1 30 state electronic commerce transactions conducted by persons
1 31 within the state boundaries based on accepted standards of
1 32 scientific sampling; an estimate of the number of out-of-state
1 33 electronic commerce transactions conducted by persons within
1 34 the state boundaries based on accepted standards of scientific
1 35 sampling; an estimate of the total value of electronic
2 1 commerce transactions conducted by persons within state
2 2 boundaries during a fiscal year; a reliable estimate of the
2 3 use tax revenue that is uncollected due to out-of-state
2 4 electronic commerce; and a reliable estimate of income,
2 5 property, excise, and other revenues paid to the state and its
2 6 political subdivisions by electronic commerce vendors.
2 7 Collection of primary data shall be considered part of the
2 8 department's normal duties and shall not require an additional
2 9 budgetary appropriation. The department shall supplement
2 10 primary data with information supplied by the United States
2 11 department of commerce department, the United States census
2 12 bureau, the United States small business administration, any
2 13 other federal agency collecting electronic commerce data, and
2 14 if obtainable, affiliated state data centers. The department
2 15 may use information gathered from private, academic, and
2 16 nongovernmental entities provided that the source and
2 17 methodology is clearly stated within the text of the report.
2 18 The department shall not cite, as authoritative sources,
2 19 studies conducted by private, academic, and nongovernmental
2 20 entities that are speculative in nature or based on
2 21 unscientific methods. In addition, the department shall
2 22 include an analysis of the financial impact increased sales
2 23 and use tax collection requirements would have on in-state
2 24 companies engaged in electronic commerce. The data shall be
2 25 compiled in the form of an annual report to be delivered to
2 26 the general assembly no later than February 1 of each year.
2 27 5. REPEAL. This section is repealed March 1, 2005.
2 28 Sec. 2. Section 422.43, subsection 15, unnumbered
2 29 paragraph 2, Code Supplement 2001, is amended by striking the
2 30 unnumbered paragraph.
2 31 Sec. 3. Section 423.1, subsection 13, unnumbered paragraph
2 32 2, Code Supplement 2001, is amended by striking the unnumbered
2 33 paragraph.
2 34 Sec. 4. SALES TAX SIMPLIFICATION – MULTISTATE
2 35 DISCUSSIONS.
3 1 1. AGREEMENT. Delegates appointed pursuant to subsection
3 2 2 shall enter into multistate discussions on behalf of this
3 3 state to consider whether this state should enter into an
3 4 agreement with one or more other states to do all of the
3 5 following:
3 6 a. Simplify and modernize sales and use tax administration
3 7 in order to substantially reduce the burden of tax compliance
3 8 for sellers and for all types of commerce.
3 9 b. Establish standards for sales and use tax compliance
3 10 software and service providers.
3 11 c. Establish performance standards for multistate sellers.
3 12 2. DELEGATES. For the purposes of this section, delegates
3 13 shall be appointed as follows:
3 14 a. One delegate shall be a member of the house of
3 15 representatives who is appointed by the speaker of the house
3 16 of representatives.
3 17 b. One delegate shall be a member of the senate who is
3 18 appointed by the majority leader of the senate.
3 19 c. Two delegates shall be appointed by the governor, at
3 20 least one of whom shall be the director of revenue and finance
3 21 or the director's designee.
3 22 3. RECOMMENDATIONS. After meeting with similar
3 23 delegations from other states, the delegates shall make
3 24 recommendations to the general assembly regarding the issues
3 25 the delegates are required to consider under subsection 1 and
3 26 any other issue the general assembly may require the delegates
3 27 to consider.
3 28 4. LEGISLATION. If the delegates determine that this
3 29 state should enter into an agreement with one or more other
3 30 states, the delegates shall recommend the preparation of
3 31 legislation to bring this state into substantial compliance
3 32 with the agreement as a result of the multistate discussions
3 33 required by this section.
3 34 5. DEFINITIONS. In this section, unless the context
3 35 otherwise requires:
4 1 a. "Agreement" means an interstate agreement for
4 2 simplification and uniformity of taxation among member states
4 3 in order to reduce the burden of tax compliance for sellers
4 4 and for all types of commerce.
4 5 b. "Seller" means a person that sells, leases, or rents
4 6 tangible personal property or a service.
4 7 c. "State" means a state of the United States and the
4 8 District of Columbia.
4 9 d. "Tax" or "taxes" means the state sales and use taxes
4 10 imposed under chapter 422, division IV, and chapter 423, or a
4 11 similar tax imposed by a political subdivision of this state.
4 12 6. REPEAL. This section is repealed June 30, 2004.
4 13 Sec. 5. EFFECTIVE DATE. This Act, being deemed of
4 14 immediate importance, takes effect upon enactment.
4 15 EXPLANATION
4 16 This bill deals with the state sales and use taxes by
4 17 requiring the department of revenue and finance to begin
4 18 collecting data concerning the extent of electronic commerce
4 19 within Iowa and the net gains or losses in tax revenues as a
4 20 result of electronic commerce.
4 21 The bill also strikes the repeal of current law that
4 22 provides that for the sales tax a sale of tangible personal
4 23 property does not occur if the transaction is delivered
4 24 digitally, electronically, or utilizing cable, or by radio
4 25 waves, microwaves, or fiber optics, and under the use tax,
4 26 that tangible personal property does not include any substance
4 27 delivered digitally, electronically, or utilizing cable, or by
4 28 radio waves, microwaves, or fiber optics.
4 29 The bill establishes a committee of delegates to enter into
4 30 multistate discussions on behalf of Iowa on the question of
4 31 simplifying and modernizing the sales and use taxes.
4 32 The bill takes effect upon enactment.
4 33 LSB 7165SC 79
4 34 mg/cf/24
Text: SSB03193 Text: SSB03195 Text: SSB03100 - SSB03199 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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