House Journal: Page 1806: Thursday, May 3, 2001
12 services are rendered, furnished, or performed in this
13 state or where the product or result of the service is
14 used in this state. This tax is imposed on every
15 person using the services or the product of the
16 services in this state until the user has paid the tax
17 either to an Iowa use tax permit holder or to the
18 department. The rate of use tax of six percent shall
19 be reduced to five percent beginning July 1, 2021.
20 Sec. . Section 423.24, Code 2001, is amended by
21 adding the following new subsection:
22 NEW SUBSECTION. 2A. One-sixth of all other
23 revenue arising under the operation of this chapter
24 shall be credited to the school district sales and use
25 tax fund created in section 293.1. This subsection is
26 stricken July 1, 2021.
27 Sec. . Section 423.24, subsection 3, Code 2001,
28 is amended to read as follows:
29 3. All other revenue arising under the operation
30 of this chapter not credited as specified in
31 subsections 1, 2, and 2A shall be credited to the
32 general fund of the state.
33 Sec. . APPLICABILITY. This section applies in
34 regard to the increase in the state sales and use
35 taxes from five to six percent. The six percent rate
36 applies to all sales of taxable personal property,
37 consisting of goods, wares, or merchandise if delivery
38 occurs on or after July 1, 2001. The six percent use
39 tax rate applies to the use of property when the first
40 taxable use in this state occurs on or after July 1,
41 2001. The six percent rate applies to the gross
42 receipts from the sale, furnishing, or service of gas,
43 electricity, water, heat, pay television service, and
44 communication service if the date of billing the
45 customer is on or after July 1, 2001. In the case of
46 a service contract entered into prior to July 1, 2001,
47 which contract calls for periodic payments, the six
48 percent rate applies to those payments made or due on
49 or after July 1, 2001. This periodic payment applies,
50 but is not limited to, tickets or admissions, private
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1 club membership fees, sources of amusement, equipment
2 rental, dry cleaning, reducing salons, dance schools,
3 and all other services subject to tax, except the
4 aforementioned utility services which are subject to a
5 special transitional rule. Unlike periodic payments
6 under service contracts, installment sales of goods,
7 wares, and merchandise are subject to the full amount
8 of sales or use tax when the sales contract is entered
9 into or the property is first used in Iowa.
10 . The sections of this Act enacting new Code
© 2001 Cornell College and
League of Women Voters of Iowa
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