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PAG LIN 1 1 Amend House File 683, as amended, passed, and 1 2 reprinted by the House, as follows: 1 3 #1. By striking everything after the enacting 1 4 clause and inserting the following: 1 5 "DIVISION I 1 6 STATE EMPLOYEE SALARIES 1 7 Section 1. 2003 Iowa Acts, Senate File 458, 1 8 section 48, unnumbered paragraphs 1 and 2, if enacted, 1 9 are amended to read as follows: 1 10 There is appropriated from the general fund of the 1 11 state to the salary adjustment fund for distribution 1 12 by the department of management to the various state 1 13 departments, boards, commissions, councils, and 1 14 agencies, and to the state board of regents for those 1 15 persons employed at the state school for the deaf and 1 16 the Iowa braille and sight saving school, for the 1 17 fiscal year beginning July 1, 2003, and ending June 1 18 30, 2004, the amount of$28,000,000$30,000,000, or so 1 19 much thereof as may be necessary, to fully fund annual 1 20 pay adjustments, expense reimbursements, and related 1 21 benefits implemented pursuant to the following: 1 22 Of the amount appropriated in this section, 1 23$2,668,000$2,818,000 shall be allocated to the 1 24 judicial branch for the purpose of funding annual pay 1 25 adjustments, expense reimbursements, and related 1 26 benefits implemented for judicial branch employees. 1 27 In distributing the remainder of the amount 1 28 appropriated in this section, the department of 1 29 management, in order to address essential public 1 30 protection functions and recognizing the availability 1 31 of funds appropriated in other Acts of the general 1 32 assembly and other sources, shall give priority, in 1 33 descending order, to the department of corrections, 1 34 department of human services, and department of public 1 35 safety, and then to the remaining state departments, 1 36 boards, commissions, councils, and agencies to which 1 37 the appropriation is applicable. 1 38 Sec. 2. STATE COURTS – JUSTICES, JUDGES, AND 1 39 MAGISTRATES. 1 40 1. Of the amount allocated for the judicial branch 1 41 in 2003 Iowa Acts, Senate File 458, section 48, if 1 42 enacted, $150,000 is allocated to fund the changes in 1 43 this section to the salaries of justices, judges, and 1 44 magistrates. 1 45 2. The following annual salary rates shall be paid 1 46 to the persons holding the judicial positions 1 47 indicated during the fiscal year beginning July 1, 1 48 2003, effective with the pay period beginning December 1 49 5, 2003, and for subsequent pay periods: 1 50 a. Chief justice of the supreme court: 2 1 .................................................. $ 127,040 2 2 b. Each justice of the supreme court: 2 3 .................................................. $ 122,500 2 4 c. Chief judge of the court of appeals: 2 5 .................................................. $ 122,380 2 6 d. Each associate judge of the court of appeals: 2 7 .................................................. $ 117,850 2 8 e. Each chief judge of a judicial district: 2 9 .................................................. $ 116,760 2 10 f. Each district judge except the chief judge of a 2 11 judicial district: 2 12 .................................................. $ 112,010 2 13 g. Each district associate judge: 2 14 .................................................. $ 97,610 2 15 h. Each associate juvenile judge: 2 16 .................................................. $ 97,610 2 17 i. Each associate probate judge: 2 18 .................................................. $ 97,610 2 19 j. Each judicial magistrate: 2 20 .................................................. $ 29,100 2 21 k. Each senior judge: 2 22 .................................................. $ 6,500 2 23 3. Persons receiving the salary rates established 2 24 under subsection 2 shall not receive any additional 2 25 salary adjustments provided by 2003 Iowa Acts, Senate 2 26 File 458, division V. 2 27 DIVISION II 2 28 APPROPRIATIONS AND APPROPRIATIONS REVISIONS 2 29 INSURANCE DIVISION 2 30 Sec. 3. INSURANCE STUDY. There is appropriated 2 31 from the general fund of the state to the department 2 32 of commerce for the fiscal year beginning July 1, 2 33 2003, and ending June 30, 2004, the following amount, 2 34 or so much thereof as is necessary, to be used for the 2 35 purpose designated: 2 36 For the insurance division to implement the school 2 37 health insurance reform team study in accordance with 2 38 2003 Iowa Acts, Senate File 386: 2 39 .................................................. $ 15,000 2 40 DEPARTMENT OF MANAGEMENT 2 41 Sec. 4. LOCAL GOVERNMENT INNOVATION FUND 2 42 APPROPRIATION. There is appropriated from the general 2 43 fund of the state to the department of management for 2 44 the fiscal year beginning July 1, 2003, and ending 2 45 June 30, 2004, the following amount, or so much 2 46 thereof as is necessary, to be used for the purpose 2 47 designated: 2 48 For deposit in the local government innovation fund 2 49 created in section 8.64: 2 50 .................................................. $ 1,000,000 3 1 Notwithstanding section 8.64, subsection 4, if 3 2 enacted by 2003 Iowa Acts, Senate File 453, section 3 3 27, the local government innovation fund committee may 3 4 provide up to 20 percent of the amount appropriated in 3 5 this section in the form of forgivable loans or as 3 6 grants for those projects that propose a new and 3 7 innovative sharing initiative that would serve as an 3 8 important model for cities and counties. 3 9 DEPARTMENT OF CORRECTIONS 3 10 Sec. 5. There is appropriated from the rebuild 3 11 Iowa infrastructure fund to the department of 3 12 corrections for the fiscal year beginning July 1, 3 13 2003, and ending June 30, 2004, the following amounts, 3 14 or so much thereof as is necessary, to be used for the 3 15 purposes designated: 3 16 1. For expansion of the Luster Heights facility 3 17 into a community-based corrections facility and an 3 18 institutional work and substance abuse treatment 3 19 center: 3 20 .................................................. $ 92,000 3 21 2. For conversion of the Clarinda lodge into 3 22 minimum security bed space: 3 23 .................................................. $ 730,400 3 24 Sec. 6. 2003 Iowa Acts, Senate File 439, section 3 25 4, subsection 1, paragraphs b and g, as enacted, are 3 26 amended to read as follows: 3 27 b. For the operation of the Anamosa correctional 3 28 facility, including salaries, support, maintenance, 3 29 employment of correctional officers and a part-time 3 30 chaplain to provide religious counseling to inmates of 3 31 a minority race, miscellaneous purposes, and for not 3 32 more than the following full-time equivalent 3 33 positions: 3 34 .................................................. $24,531,9173 35 25,196,085 3 36 ............................................... FTEs375.753 37 385.25 3 38 Moneys are provided within this appropriation for 3 39 one full-time substance abuse counselor for the Luster 3 40 Heights facility, for the purpose of certification of 3 41 a substance abuse program at that facility. Of the 3 42 funds appropriated in this paragraph "b", $664,168 is 3 43 allocated for implementation costs associated with 3 44 expansion of the Luster Heights facility. 3 45 g. For the operation of the Clarinda correctional 3 46 facility, including salaries, support, maintenance, 3 47 employment of correctional officers, miscellaneous 3 48 purposes, and for not more than the following full- 3 49 time equivalent positions: 3 50 .................................................. $18,595,7884 1 19,389,220 4 2 ............................................... FTEs291.764 3 304.58 4 4 Moneys received by the department of corrections as 4 5 reimbursement for services provided to the Clarinda 4 6 youth corporation are appropriated to the department 4 7 and shall be used for the purpose of operating the 4 8 Clarinda correctional facility. 4 9 Of the funds appropriated in this paragraph "g", 4 10 $793,432 is allocated for implementation costs 4 11 associated with expansion of the conversion of the 4 12 Clarinda lodge, with $277,500 of the allocation for 4 13 one-time costs and $515,932 for ongoing costs. 4 14 PUBLIC TRANSIT 4 15 Sec. 7. 2003 Iowa Acts, Senate File 458, section 4 16 8, if enacted, is amended to read as follows: 4 17 SEC. 8. PUBLIC TRANSIT ASSISTANCE APPROPRIATION. 4 18 Notwithstanding section 312.2, subsection 14, the 4 19 amount appropriated from the general fund of the state 4 20 under section 312.2, subsection 14, to the state 4 21 department of transportation for public transit 4 22 assistance under chapter 324A for the fiscal year 4 23 beginning July 1, 2003, and ending June 30, 2004, is 4 24 reduced by the following amount: 4 25 .................................................. $1,298,6754 26 2,582,800 4 27 OFFICE OF THE GOVERNOR 4 28 Sec. 8. 2003 Iowa Acts, House File 655, section 5, 4 29 subsection 1, if enacted, is amended to read as 4 30 follows: 4 31 1. GENERAL OFFICE 4 32 For salaries, support, maintenance, and 4 33 miscellaneous purposes for the general office of the 4 34 governor and the general office of the lieutenant 4 35 governor, and for not more than the following full- 4 36 time equivalent positions: 4 37 .................................................. $1,243,6434 38 1,493,643 4 39 ............................................... FTEs17.254 40 19.25 4 41 Of the amount appropriated in this section, 4 42 $250,000 is allocated for two full-time equivalent 4 43 positions in the office of the governor that were 4 44 previously funded by other state departments and 4 45 agencies. 4 46 DEPARTMENT OF REVENUE 4 47 Sec. 9. 2003 Iowa Acts, House File 655, section 4 48 31, if enacted, is amended to read as follows: 4 49 SEC. 31. DEPARTMENT OF REVENUE. There is 4 50 appropriated from the general fund of the state to the 5 1 department of revenue for the fiscal year beginning 5 2 July 1, 2003, and ending June 30, 2004, the following 5 3 amounts, or so much thereof as is necessary, to be 5 4 used for the purposes designated, and for not more 5 5 than the following full-time equivalent positions used 5 6 for the purposes designated in subsection 1: 5 7 ............................................... FTEs378.875 8 380.87 5 9 Of the full-time equivalent positions authorized in 5 10 this section, two full-time equivalent positions are 5 11 allocated for new positions to assist in preparation 5 12 of information for the revenue estimating conference 5 13 and in improving the turnaround time for processing 5 14 corporate tax filings. 5 15 1. COMPLIANCE – INTERNAL RESOURCES MANAGEMENT – 5 16 STATE FINANCIAL MANAGEMENT – STATEWIDE PROPERTY TAX 5 17 ADMINISTRATION 5 18 For salaries, support, maintenance, and 5 19 miscellaneous purposes: 5 20 .................................................. $23,259,1115 21 23,359,111 5 22 Of the funds appropriated pursuant to this 5 23 subsection, $400,000 shall be used to pay the direct 5 24 costs of compliance related to the collection and 5 25 distribution of local sales and services taxes imposed 5 26 pursuant to chapters 422B and 422E. 5 27 The director of revenue shall prepare and issue a 5 28 state appraisal manual and the revisions to the state 5 29 appraisal manual as provided in section 421.17, 5 30 subsection 18, without cost to a city or county. 5 31 2. COLLECTION COSTS AND FEES 5 32 For payment of collection costs and fees pursuant 5 33 to section 422.26: 5 34 .................................................. $ 28,166 5 35 DEPARTMENT OF PUBLIC HEALTH 5 36 Sec. 10. 2003 Iowa Acts, House File 667, section 5 37 2, subsection 8, as enacted, is amended to read as 5 38 follows: 5 39 8. INFECTIOUS DISEASES 5 40 For reducing the incidence and prevalence of 5 41 communicable diseases, and for not more than the 5 42 following full-time equivalent positions: 5 43 .................................................. $977,3405 44 1,074,888 5 45 ............................................... FTEs 36.90 5 46 DIVISION III 5 47 MISCELLANEOUS PROVISIONS 5 48 Sec. 11. GOVERNMENT OVERSIGHT COMMITTEE – REVIEW 5 49 OF CONTINUING CARE RETIREMENT COMMUNITIES – ASSISTED 5 50 LIVING PROGRAM APPLICABILITY. The government 6 1 oversight committees shall review the application of 6 2 chapter 231C, relating to assisted living programs, to 6 3 continuing care retirement communities, as defined in 6 4 section 523D.1. The committees shall submit 6 5 recommendations for any legislation deemed necessary 6 6 for consideration during the 2004 regular legislative 6 7 session. 6 8 Sec. 12. Section 15E.193B, subsection 4, Code 6 9 2003, as amended by 2003 Iowa Acts, Senate File 458, 6 10 section 100, if enacted, is amended to read as 6 11 follows: 6 12 4. The eligible housing business shall complete 6 13 its building or rehabilitation within two years from 6 14 the time the business begins construction on the 6 15 single-family homes and dwelling units. The failure 6 16 to complete construction or rehabilitation within two 6 17 years shall result in the eligible housing business 6 18 becoming ineligible and subject to the repayment 6 19 requirements and penalties enumerated in subsection 7. 6 20 The department may extend the prescribed two-year 6 21 completion period for any current or future project 6 22 which has not been completed if the department 6 23 determines that completion within the two-year period 6 24 is impossible or impractical as a result of a 6 25 substantial loss caused by flood, fire, earthquake, 6 26 storm, or other catastrophe. For purposes of this 6 27 subsection, "substantial loss" means damage or 6 28 destruction in an amount in excess of thirty percent 6 29 of the project's expected eligible basis as set forth 6 30 in the eligible housing business's application. 6 31 Sec. 13. Section 215.14, Code 2003, is amended to 6 32 read as follows: 6 33 215.14 APPROVAL BY DEPARTMENT. 6 34 A commercial weighing and measuring device shall 6 35 not be installed in this state unless approved by the 6 36 department.All livestock scales and6 37 1. A pit typescalesscale or any other scale 6 38 installed in a pit, regardless of capacity, that is 6 39 installed on or after July 1, 1990, shall have a 6 40 clearance of not less than four feet from the finished 6 41 floor line of the scale to the bottom of the "I" beam 6 42 of the scale bridge. Livestock shall not be weighed 6 43 on any scale other than a livestock scale or pit type 6 44 scale. 6 45 2. An electronic pitless scale shall be placed on 6 46 concrete footings with concrete floor. The concrete 6 47 floor shall allow for adequate drainage away from the 6 48 scale as required by the department. There shall be a 6 49 clearance of not less than eight inches between the 6 50 weigh bridge and the concrete floor to facilitate 7 1 inspection and cleaning. 7 2 3. After approval by the department, the 7 3 specifications for a commercial weighing and measuring 7 4 device shall be furnished to the purchaser of the 7 5 device by the manufacturer. The approval shall be 7 6 based upon the recommendation of the United States 7 7 national institute of standards and technology. 7 8 Sec. 14. Section 231C.17, subsection 4, if enacted 7 9 by 2003 Iowa Acts, House File 675, section 24, is 7 10 amended by striking the subsection and inserting in 7 11 lieu thereof the following: 7 12 4. A continuing care retirement community, as 7 13 defined in section 523D.1, may provide limited 7 14 personal care services and emergency response services 7 15 to its independent living tenants if all of the 7 16 following conditions are met: 7 17 a. The provision of such personal care services or 7 18 emergency response services does not result in 7 19 inadequate staff coverage to meet the service needs of 7 20 all tenants of the continuing care retirement 7 21 community. 7 22 b. The staff providing the personal care or 7 23 emergency response services is trained or qualified to 7 24 the extent necessary to provide such services. 7 25 c. The continuing care retirement community 7 26 documents the date, time, and nature of the personal 7 27 care or emergency response services provided. 7 28 d. Emergency response services are only provided 7 29 in situations which constitute an urgent need for 7 30 immediate action or assistance due to unforeseen 7 31 circumstances. 7 32 This subsection shall not be construed to prohibit 7 33 an independent living tenant of a continuing care 7 34 retirement community from contracting with a third 7 35 party for personal care or emergency response 7 36 services. 7 37 Sec. 15. NEW SECTION. 237A.25 CONSUMER 7 38 INFORMATION. 7 39 1. The department shall develop consumer 7 40 information material to assist parents in selecting a 7 41 child care provider. In developing the material, the 7 42 department shall consult with department of human 7 43 services staff, department of education staff, the 7 44 state child care advisory council, the Iowa 7 45 empowerment board, and child care resource and 7 46 referral services. In addition, the department may 7 47 consult with other entities at the local, state, and 7 48 national level. 7 49 2. The consumer information material developed by 7 50 the department for parents and other consumers of 8 1 child care services shall include but is not limited 8 2 to all of the following: 8 3 a. A pamphlet or other printed material containing 8 4 consumer-oriented information on locating a quality 8 5 child care provider. 8 6 b. Information explaining important considerations 8 7 a consumer should take into account in selecting a 8 8 licensed or registered child care provider. 8 9 c. Information explaining how a consumer can 8 10 identify quality services, including what questions to 8 11 ask of providers and what a consumer might expect or 8 12 demand to know before selecting a provider. 8 13 d. An explanation of the applicable laws and 8 14 regulations written in layperson's terms. 8 15 e. An explanation of what it means for a provider 8 16 to be licensed, registered, or unregistered. 8 17 f. An explanation of the information considered in 8 18 registry and record background checks. 8 19 g. Other information deemed relevant to consumers. 8 20 3. The department shall implement and publicize an 8 21 internet page or site that provides all of the 8 22 following: 8 23 a. The written information developed pursuant to 8 24 subsections 1 and 2. 8 25 b. Regular informational updates, including when a 8 26 child care provider was last subject to a state 8 27 quality review or inspection and, based upon a final 8 28 score or review, the results indicating whether the 8 29 provider passed or failed the review or inspection. 8 30 c. Capability for a consumer to be able to access 8 31 information concerning child care providers, such as 8 32 informational updates, identification of provider 8 33 location, name, and capacity, and identification of 8 34 providers participating in the state child care 8 35 assistance program and those participating in the 8 36 child care food program, by sorting the information or 8 37 employing other means that provide the information in 8 38 a manner that is useful to the consumer. Information 8 39 regarding provider location shall identify providers 8 40 located in the vicinity of an address selected by a 8 41 consumer and provide contact information without 8 42 listing the specific addresses of the providers. 8 43 d. Other information deemed appropriate by the 8 44 department. 8 45 Sec. 16. Section 384.84, Code 2003, is amended by 8 46 adding the following new subsection: 8 47 NEW SUBSECTION. 9. Notwithstanding subsection 3, 8 48 a lien shall not be filed against the land if the 8 49 premises are located on leased land. If the premises 8 50 are located on leased land, a lien may be filed 9 1 against the premises only. 9 2 Sec. 17. Section 422E.3A, subsection 2, paragraph 9 3 a, if enacted by 2003 Iowa Acts, Senate File 445, 9 4 section 8, is amended to read as follows: 9 5 a. A school district that is located in whole or 9 6 in part in a county that voted on and approved prior 9 7 to April 1, 2003, the local sales and services tax for 9 8 school infrastructure purposes and that has a sales 9 9 tax capacity per student above the guaranteed school 9 10 infrastructure amount shall receive for the remainder 9 11 of the term of the tax an amount equal to its pro rata 9 12 share of the local sales and services tax receipts as 9 13 provided in section 422E.3, subsection 5, paragraph 9 14 "d", unless the school board passes a resolution by 9 15 October 1, 2003, agreeing to receive a distribution 9 16 pursuant to paragraph "b", subparagraph (1). 9 17 Sec. 18. Section 422E.3A, subsection 2, paragraph 9 18 b, subparagraph (1), if enacted by 2003 Iowa Acts, 9 19 Senate File 445, section 8, is amended to read as 9 20 follows: 9 21 (1) A school district that is located in whole or 9 22 in part in a county that voted on and approved prior 9 23 to April 1, 2003, the local sales and services tax for 9 24 school infrastructure purposes and that has a sales 9 25 tax capacity per student below its guaranteed school 9 26 infrastructure amount shall receive for the remainder 9 27 of the term of the tax an amount equal to its pro rata 9 28 share of the local sales and services tax receipts as 9 29 provided in section 422E.3, subsection 5, paragraph 9 30 "d", plus an amount equal to its supplemental school 9 31 infrastructure amount, unless the school district 9 32 passes a resolution by October 1, 2003, agreeing to 9 33 receive only an amount equal to its pro rata share as 9 34 provided in section 422E.3, subsection 5, paragraph 9 35 "d", in all subsequent years. 9 36 Sec. 19. Section 435.26A, subsection 5, as enacted 9 37 by 2003 Iowa Acts, Senate File 134, section 7, and as 9 38 amended by 2003 Iowa Acts, Senate File 458, section 9 39 128, if enacted, is amended to read as follows: 9 40 5. An owner of a manufactured home who has 9 41 surrendered a certificate of title under this section 9 42 and requires another certificate of title for the 9 43 manufactured home is required to apply for a 9 44 certificate of title undersection 321.42chapter 321. 9 45 If supporting documents for the reissuance of a title 9 46 are not available or sufficient, the procedure for the 9 47 reissuance of a title specified in the rules of the 9 48 department of transportation shall be used. 9 49 Sec. 20. Section 459.315, Code 2003, as amended by 9 50 2003 Iowa Acts, House File 644, if enacted, is amended 10 1 by adding the following new subsection: 10 2 NEW SUBSECTION. 4A. This section shall not 10 3 require a person to be certified as a confinement site 10 4 manure applicator if the person applies manure which 10 5 originates from a manure storage structure which is 10 6 part of a small animal feeding operation. 10 7 Sec. 21. Section 508.31A, subsection 2, paragraph 10 8 a, subparagraph (4), as enacted by 2003 Iowa Acts, 10 9 House File 647, section 7, is amended to read as 10 10 follows: 10 11 (4) A person other than a natural person for the 10 12 purpose of providing collateral security for 10 13 securitiesissued by such person andregistered with 10 14 the federal securities and exchange commission. 10 15 Sec. 22. 2003 Iowa Acts, Senate File 401, section 10 16 5, subsection 1, is amended to read as follows: 10 17 1. Notwithstanding any provision of law to the 10 18 contrary, the section of this Act creating section 10 19 453A.2, subsection 5A, is applicable to violations 10 20 pending on the effective date of this Act for which a 10 21 penalty has not been assessed under section 453A.22, 10 22 subsection 2. Notwithstanding this subsection, 10 23 however, if a county health department, a city health 10 24 department, or a city assesses a penalty under section 10 25 453A.22, subsection 2, on or after April 11, 2003 but 10 26 prior to June 30, 2003, for a violation of section 10 27 453A.2, subsection 1, which was pending on April 11, 10 28 2003, the county health department, city health 10 29 department or city assessing the penalty shall be 10 30 deemed to have jurisdiction to assess the penalty and 10 31 the penalty assessed is deemed valid. 10 32 Sec. 23. 2003 Iowa Acts, Senate File 453, section 10 33 31, subsection 1, if enacted, is amended to read as 10 34 follows: 10 35 1. In lieu of applying a charge for capital assets 10 36 to the institutions under the control of the state 10 37 board of regents as otherwise provided in this 10 38 division for executive branch agencies, the 10 39 appropriations made from the general fund of the state 10 40 to the state board of regents for thegeneral10 41universityoperating budgets at the state university 10 42 of Iowa, Iowa state university of science and 10 43 technology, and university of northern Iowa, in 2003 10 44 Iowa Acts, House File 662, section 9, subsections 2, 10 45 3, and 4, are reduced by $17,880,000.The state board10 46of regents shall apply the reduction as follows: state10 47university of Iowa, 46.7 percent, Iowa state10 48university of science and technology, 36.8 percent,10 49and university of northern Iowa, 16.5 percent.10 50 Sec. 24. 2003 Iowa Acts, Senate File 458, section 11 1 21, unnumbered paragraph 3, if enacted, is amended to 11 2 read as follows: 11 3 Of the funds appropriated in this section, up to 11 4 $10,000 is transferred to theIowadepartment of 11 5public healthhuman services for allocation to 11 6 community mental health centers to provide counseling 11 7 services to persons who are members of the national 11 8 guard and reservists activated but as yet not sent to 11 9 combat zones and to the persons' family members. The 11 10 sessions shall be provided on a first come, first 11 11 served basis and shall be limited to three visits per 11 12 family. 11 13 Sec. 25. 2003 Iowa Acts, Senate File 458, section 11 14 149, if enacted, is amended to read as follows: 11 15 SEC. 149. SUPPLEMENTAL PAYMENT ADJUSTMENTS FOR 11 16 PHYSICIAN SERVICES. To the extent that, pursuant to 11 17 law enacted by the Eightieth General Assembly, 2003 11 18 Session, supplemental payment adjustments are 11 19 implemented for physician services provided to medical 11 20 assistance program participants at publicly owned 11 21 acute care hospitals, the department of human services 11 22 shall not, directly or indirectly, recoup the 11 23 supplemental payment adjustments for any reason, 11 24 unless an amount equivalent to the amount of 11 25 adjustment fundsthat wereis first transferred to the 11 26department by the stateuniversity of Iowa college of 11 27 medicineis transferredby the departmentto the11 28qualifying physicians. Any such amount transferred 11 29 and identified as a supplemental payment under this 11 30 section shall then be refunded to the department of 11 31 human services, per the agreement executed for this 11 32 purpose between the department and the university of 11 33 Iowa. 11 34 Sec. 26. 2003 Iowa Acts, Senate File 458, section 11 35 171, subsection 1, if enacted, is amended to read as 11 36 follows: 11 37 1. PURPOSE. The general assembly finds that the 11 38 Iowa communications network is a valuable state asset 11 39 that has served the people of the state well, but 11 40 which requires significant ongoing financial support 11 41 from the state in the form of annual appropriations. 11 42 The operation of a telecommunications network is a 11 43 function that can be and generally is conducted by 11 44 private enterprise. It is in the public interest to 11 45 sell the Iowa communications network to a qualified 11 46 private business enterprise that will commit to 11 47 provide the same secure low-cost high-quality service 11 48 tostate and federalpublic and private agenciesand11 49military installations, as defined in chapter 8D, now 11 50 provided by the network. Through such a sale, the 12 1 state would eliminate the need for ongoing annual 12 2 appropriations while preserving the key benefits 12 3 enjoyed by the state under the present state ownership 12 4 of the network. The state also expects to obtain 12 5 sufficient proceeds from such a sale to cover existing 12 6 obligations and to realize additional proceeds above 12 7 the level of such obligations. Given the current 12 8 depressed state of the telecommunications industry, 12 9 the state can reasonably be expected to maximize sales 12 10 proceeds by allowing a purchaser a period of time in 12 11 which to assemble financing for its purchase. During 12 12 the interim between enactment of this division of this 12 13 Act and completion of a sale, the services of a 12 14 private-enterprise manager with experience operating 12 15 telecommunications networks can reasonably be expected 12 16 to reduce the costs of operating the Iowa 12 17 communications network, thereby lowering annual 12 18 appropriations. 12 19 Sec. 27. 2003 Iowa Acts, Senate File 458, section 12 20 172, subsection 2, paragraph b, if enacted, is amended 12 21 to read as follows: 12 22 b. Select a manager and enter into a management 12 23 contract with the manager by October 1, 2004. The 12 24 management contract shall provide for the continuation 12 25 of all services currently being provided tostate and12 26federalpublic and private agenciesand military12 27installationspursuant to chapter 8D, at the rates 12 28 specified therein, for the duration of the contract. 12 29 The contract shall also specify the manager's 12 30 authority in relation to the duties of the commission 12 31 during the period between execution of the management 12 32 contract and closing of the sale of the network. The 12 33 commission shall establish a dispute resolution 12 34 process regarding rate increases, quality of service 12 35 issues, and other areas of dispute involving network 12 36 subscribers. The commission shall also make 12 37 recommendations regarding imposition of an ongoing 12 38 dispute resolution and appeals process commencing with 12 39 the closing of the sale of the network. 12 40 Sec. 28. 2003 Iowa Acts, Senate File 458, section 12 41 173, subsection 1, if enacted, is amended to read as 12 42 follows: 12 43 1. Theprincipal place of business of the12 44 purchaser and any parent of the purchaser shall be 12 45locatedoperating in the state of Iowa. 12 46 Sec. 29. 2003 Iowa Acts, Senate File 458, section 12 47 174, subsection 4, if enacted, is amended to read as 12 48 follows: 12 49 4. Agree to continue all services currently being 12 50 provided tostate and federalpublic and private 13 1 agenciesand military installations, as defined in 13 2 chapter 8D, for the next ten years, with any annual 13 3 rate increase not to exceed five percent per year, 13 4 provided that the purchaser shall not be required to 13 5 supply at such restricted prices a quantity or quality 13 6 of service greater than that provided by the network 13 7 as of execution of the contract for sale of the 13 8 network. 13 9 Sec. 30. 2003 Iowa Acts, House File 667, section 13 10 27, subsection 1, unnumbered paragraph 2, is amended 13 11 to read as follows: 13 12 For costs associated with the commitment and 13 13 treatment of sexually violent predators in the unit 13 14 located at the state mental health institute at 13 15 Cherokee, including costs of legal services and other 13 16 associated costs, including salaries, support, 13 17 maintenance, and miscellaneous purposes and for not 13 18 more than the following full-time equivalent 13 19 positions: 13 20 .................................................. $ 2,675,179 13 21 ............................................... FTEs46.0013 22 57.00 13 23 Sec. 31. EFFECTIVE DATE – RETROACTIVE 13 24 APPLICABILITY. 13 25 1. The section of this division of this Act 13 26 amending section 231C.17, being deemed of immediate 13 27 importance, takes effect upon enactment. 13 28 2. The section of this division of this Act 13 29 amending 2003 Iowa Acts, Senate File 401, being deemed 13 30 of immediate importance, takes effect upon enactment 13 31 and is retroactively applicable to April 11, 2003. 13 32 DIVISION IV 13 33 CORRECTIVE PROVISIONS 13 34 Sec. 32. Section 8A.505, as enacted by 2003 Iowa 13 35 Acts, House File 534, section 87, is amended by adding 13 36 the following new unnumbered paragraph: 13 37 NEW UNNUMBERED PARAGRAPH. There is appropriated 13 38 annually from the increase in indirect cost 13 39 reimbursements over the amount of indirect cost 13 40 reimbursements received during the fiscal year 13 41 beginning July 1, 2002, to the office of grants 13 42 enterprise management of the department of management 13 43 the sum of up to one hundred twenty-five thousand 13 44 dollars. The director shall transfer the funds 13 45 appropriated to the department of management as 13 46 provided in this paragraph and shall make the funds 13 47 resulting from the increase in reimbursements 13 48 available during the fiscal year to the department of 13 49 management on a monthly basis. If the amount of the 13 50 increase in indirect cost reimbursements is 14 1 insufficient to pay the maximum appropriation provided 14 2 for in this paragraph, the amount appropriated is 14 3 equal to the amount of such increase. 14 4 Sec. 33. Section 12C.4, Code 2003, as amended by 14 5 2003 Iowa Acts, House File 289, section 2, is amended 14 6 to read as follows: 14 7 12C.4 LOCATION OF DEPOSITORIES. 14 8 Deposits by the treasurer of state shall be in 14 9 depositories located in this state; by a county 14 10 officer or county public hospital officer or merged 14 11 area hospital officer, in depositories located in the 14 12 county or in an adjoining county within this state; by 14 13 a memorial hospital treasurer, in a depository located 14 14 within this state which shall be selected by the 14 15 memorial hospital treasurer and approved by the 14 16 memorial hospital commission; by a city treasurer or 14 17 other city financial officer, in depositories located 14 18 in the county in which the city is located or in an 14 19 adjoining county, but if there is no depository in the 14 20 county in which the city is located or in an adjoining 14 21 county then in any other depository located in this 14 22 state which shall be selected as a depository by the 14 23 city council; by a school treasurer or by a school 14 24 secretary in a depository within this state which 14 25 shall be selected by the board of directors or the 14 26 trustees of the school district; by a township clerk 14 27 in a depository located within this state which shall 14 28 be selected by the township clerk and approved by the 14 29 trustees of the township. However, deposits may be 14 30 made in depositories outside of Iowa for the purpose 14 31 of paying principal and interest on bonded 14 32 indebtedness of any municipality when the deposit is 14 33 made not more than ten days before the date the 14 34 principal or interest becomes due. Further, the 14 35 treasurer of state may maintain an account or accounts 14 36 outside the state of Iowa for the purpose of providing 14 37 custodial services for the state and state retirement 14 38 fund accounts. Deposits made for the purpose of 14 39 completing an electronic financial transaction 14 40 pursuant to section14B.2038A.222 or 331.427 may be 14 41 made in any depository located in this state. 14 42 Sec. 34. Section 29A.28, subsection 3, as enacted 14 43 by 2003 Iowa Acts, House File 674, section 3, is 14 44 amended to read as follows: 14 45 3. Upon returning from a leave of absence under 14 46 this section, an employee shall be entitled to return 14 47 to the same position and classification held by the 14 48 employee at the time of entryontointo state active 14 49 duty, active state service, or federal service or to 14 50 the position and classification that the employee 15 1 would have been entitled to if the continuous civil 15 2 service of the employee had not been interrupted by 15 3 state active duty, active state service, or federal 15 4 service. Under this subsection, "position" includes 15 5 the geographical location of the position. 15 6 Sec. 35. Section 70A.39, subsection 1, paragraph 15 7 b, as enacted by 2003 Iowa Acts, House File 381, 15 8 section 1, is amended to read as follows: 15 9 b."Vascularized"Vascular organ" means a heart, 15 10 lung, liver, pancreas, kidney, intestine, or other 15 11 organ that requires the continuous circulation of 15 12 blood to remain useful for purposes of 15 13 transplantation. 15 14 Sec. 36. Section 99B.7, subsection 1, paragraph 1, 15 15 subparagraph (1), Code 2003, as amended by 2003 Iowa 15 16 Acts, Senate File 453, section 104, if enacted, is 15 17 amended to read as follows: 15 18 (1) No other gambling is engaged in at the same 15 19 location, except that lottery tickets or shares issued 15 20 by the Iowa lotterydivision of the department of15 21revenue and financeauthority may be sold pursuant to 15 22 chapter 99G. 15 23 Sec. 37. Section 507A.4, subsection 9, paragraph 15 24 e, as enacted by 2003 Iowa Acts, House File 647, 15 25 section 4, is amended to read as follows: 15 26 e. When not otherwise provided, a foreign or 15 27 domestic multipleemployeeemployer welfare 15 28 arrangement doing business in this state shall pay to 15 29 the commissioner of insurance the fees as required in 15 30 section 511.24. 15 31 Sec. 38. Section 556.11, subsection 5, Code 2003, 15 32 as amended by 2003 Iowa Acts, Senate File 180, section 15 33 2, is amended to read as follows: 15 34 5. If the holder of property presumed abandoned 15 35 under this chapter knows the whereabouts of the owner 15 36 and if the owner's claim has not been barred by the 15 37 statute of limitations, the holder shall, before 15 38 filing the annual report, communicate with the owner 15 39 and take necessary steps to prevent abandonment from 15 40 being presumed. The holder shall exercise due 15 41 diligence to ascertain the whereabouts of the owner. A 15 42 holder is not required to make a due diligence mailing 15 43 to owners whose property has an aggregate value of 15 44 less than fifty dollars. The treasurer of state may 15 45 charge a holder that fails to timely exercise due 15 46 diligence, as required in this subsection, five 15 47 dollars for each name and address account reported if 15 48 thirty-five percentofor more of the accounts are 15 49 claimed within the twenty-four months immediately 15 50 following the filing of the holder report. 16 1 Sec. 39. 2003 Iowa Acts, Senate File 438, section 16 2 3, is repealed. 16 3 Sec. 40. 2003 Iowa Acts, Senate File 453, section 16 4 11, if enacted, is amended to read as follows: 16 5 SEC. 11. Sections403.23,405A.1, 405A.2, 405A.3, 16 6 405A.4, 405A.5, 405A.6, 405A.7, 405A.8, 405A.9, 16 7 405A.10, 422.65, 427A.12, and 427B.19B, Code 2003, are 16 8 repealed. 16 9 Sec. 41. 2003 Iowa Acts, Senate File 458, section 16 10 13, if enacted, is amended to read as follows: 16 11 SEC. 13. REDUCTION IN CREDITS NOT APPLICABLE. The 16 12provisionprovisions in section 25B.7 relating to the 16 13 proration of the property tax creditsdoesand the 16 14 estimation of the portion of the credit or exemption 16 15 which will be funded do not apply with respect to the 16 16 amount of state reimbursement for property tax credits 16 17 under this division. 16 18 Sec. 42. 2003 Iowa Acts, Senate File 458, section 16 19 159, if enacted, is amended to read as follows: 16 20 SEC. 159. EFFECTIVE DATES. The following 16 21 provisions of this division of this Act, being deemed 16 22 of immediate importance, take effect upon enactment: 16 23 1. The amendments to sections 8.23, 8.31, and 8.57 16 24 which are first applicable to appropriations made for 16 25 the fiscal year beginning July 1, 2003. 16 26 2. The amendment to section 12E.12. 16 27 3. The amendments to sections 15E.42, 15E.43, 16 28 15E.45, and 15E.51, which apply retroactively to 16 29 January 1, 2002, for tax years beginning on or after 16 30 that date. 16 31 4. The amendment to section 15E.193B. 16 32 5. The amendment to section 435.26A. 16 33 6. The amendment to section 453A.2, which shall 16 34 only take effect if 2003 Iowa Acts, Senate File 401, 16 35 is enacted by the Eightieth General Assembly, 2003 16 36 Regular Session. 16 37 7. The amendments to sections 453C.1 and 453C.2 16 38 and the related severability provision. 16 39 8. The amendments to sections 518.18 and 518A.35. 16 40 9. The section directing the department of 16 41 corrections to develop a plan for selling certain 16 42 land. 16 43 10. The section relating to the sales and use tax 16 44 refund. 16 45 11. The section relating to the school district 16 46 reimbursement claim. 16 47 The sections of this division of this Act amending 16 48 section 80B.5 and enacting section 80B.5A are 16 49 applicable to the appointment of the director of the 16 50 Iowa law enforcement academy for the term beginning 17 1 May 1, 2004. 17 2Section 29C.8, subsection 3, paragraph "f", as17 3enacted in this division of this Act, and the17 4amendment to section 29C.20, subsection 1, as enacted17 5in this division of this Act, take effect July 1,17 62004.17 7 Sec. 43. 2003 Iowa Acts, House File 171, section 17 8 112, the bill section amending clause, is amended to 17 9 read as follows: 17 10 Section 656.2, subsection 2, paragraph a, 17 11 unnumbered paragraph113, Code 2003, is amended to 17 12 read as follows: 17 13 Sec. 44. 2003 Iowa Acts, House File 662, section 17 14 5, subsection 8, paragraphs a and b, if enacted, are 17 15 amended to read as follows: 17 16 a. Of the amount appropriated in thissection17 17 subsection, $347,371 shall be allocated to the public 17 18 broadcasting division for purposes of providing 17 19 support for functions related to the Iowa 17 20 communications network, including but not limited to 17 21 the following functions: development of distance 17 22 learning applications; development of a central 17 23 information source on the internet relating to 17 24 educational uses of the network; second-line technical 17 25 support for network sites; testing and initializing 17 26 sites onto the network; and coordinating the work of 17 27 the education telecommunications council. 17 28 b. Of the amount appropriated in thissection17 29 subsection, $1,272,285 shall be allocated to the 17 30 regional telecommunications councils established in 17 31 section 8D.5. The regional telecommunications 17 32 councils shall use the funds to provide technical 17 33 assistance for network classrooms, planning and 17 34 troubleshooting for local area networks, scheduling of 17 35 video sites, and other related support activities. 17 36 Sec. 45. 2003 Iowa Acts, House File 662, section 17 37 6, unnumbered paragraph 2, if enacted, is amended to 17 38 read as follows: 17 39 The funds allocated in thissubsectionsection 17 40 shall be distributed as follows: 17 41 Sec. 46. 2003 Iowa Acts, House File 662, section 17 42 18, if enacted, is repealed. 17 43 Sec. 47. EFFECTIVE AND APPLICABILITY DATES. 17 44 1. The section of this division of this Act 17 45 amending section 29A.28, subsection 3, being deemed of 17 46 immediate importance, takes effect upon enactment and 17 47 applies retroactively to January 1, 2003. 17 48 2. The section of this division of this Act 17 49 amending 2003 Iowa Acts, Senate File 458, section 159, 17 50 being deemed of immediate importance, takes effect 18 1 upon enactment. 18 2 3. 2003 Iowa Acts, Senate File 458, section 140, 18 3 relating to nonreversion of funds appropriated in 1996 18 4 Iowa Acts, chapter 1218, and 1997 Iowa Acts, chapter 18 5 215, if enacted, being deemed of immediate importance, 18 6 takes effect upon enactment of this Act. 18 7 DIVISION V 18 8 ALTERNATIVE FORMS OF LOCAL GOVERNMENT 18 9 Sec. 48. Section 331.234, subsections 3 and 4, 18 10 Code 2003, as amended by 2003 Iowa Acts, Senate File 18 11 390, section 4, if enacted, are amended to read as 18 12 follows: 18 13 3. The board shall make available to the 18 14 commission in-kind services such as office space, 18 15 printing, supplies, and equipment. The countyand 18 16 shall payfrom the segregated account established in18 17subsection 4,the other necessary expenses of the 18 18 commission including compensation for secretarial, 18 19 clerical, professional, and consultant services. The 18 20 total annual expenses, not including the value of in- 18 21 kind expenses, to be paid from public funds shall not 18 22 exceed one hundred thousand dollars or an amount equal 18 23 to thirty cents times the population of the commission 18 24 area, according to the most recent certified federal 18 25 census. The commission may employ staff as necessary. 18 26 4.TheExcept as otherwise provided in subsection 18 27 5, the expenses of the commissionshall be paid by18 28each city and county participating in the charter18 29process ormay be paid from the general fund of the 18 30 county. Expenses of the commission may also be paid 18 31 from any combination of public or private funds 18 32 available for that purpose.Each city's share shall18 33be its pro rata share of the expenses based upon the18 34ratio that the population of the city bears to the18 35total population in the county. The county's share18 36shall be its pro rata share of expenses based upon the18 37ratio that the population of the unincorporated area18 38of the county bears to the total population of the18 39county. The amount paid by each city and county18 40participating in the charter process shall be18 41deposited in a segregated account maintained by the18 42county.The commission's annual expenses may exceed 18 43 the amount in subsection 3 only if the excess is paid 18 44 from private funds. If a proposed charter is 18 45 submitted to the electorate, private funds donated to 18 46 the commission may be used to promote passage of the 18 47 proposed charter. 18 48 Sec. 49. Section 331.234, Code 2003, is amended by 18 49 adding the following new subsection: 18 50 NEW SUBSECTION. 5. In the case of a city-county 19 1 consolidation charter commission or a community 19 2 commonwealth charter commission, the expenses of the 19 3 commission shall be paid by each city and county 19 4 participating in the charter process pursuant to 19 5 section 331.233A. Each participating city's share 19 6 shall be its pro rata share of the expenses based upon 19 7 the ratio that the population of the city bears to the 19 8 total population in the county. The remainder shall 19 9 be paid from the general fund of the county. The 19 10 amount paid by each city and county participating in 19 11 the charter process shall be deposited in a segregated 19 12 account maintained by the county. 19 13 Sec. 50. Section 331.235, subsection 3, Code 2003, 19 14 as amended by 2003 Iowa Acts, Senate File 390, section 19 15 5, if enacted, is amended to read as follows: 19 16 3. Within twenty months after organization, the 19 17 commission shall submit the final report to the board. 19 18 If the commission is created pursuant to section 19 19 331.264, subsection 4, the commission shall submit the 19 20 final report to the board within five months after 19 21 submission of the preliminary report to the board 19 22 pursuant to section 331.264, subsection 3. A 19 23 commission created pursuant to section 331.264, 19 24 subsection 4, may adopt a motion granting itself a 19 25 sixty-day extension of time for submission of its 19 26 final report. If the commission recommends a charter 19 27 including a form of government other than the existing 19 28 form of government, the final report shall include the 19 29 full text and an explanation of the proposed charter, 19 30a statement of whether the elected officers shall be19 31elected on a partisan or nonpartisan basis,an 19 32 analysis of the fiscal impact of the proposed charter, 19 33 any comments deemed desirable by the commission, and 19 34 any minority reports. The final report may recommend 19 35 no change to the existing form of government and that 19 36 no charter be submitted to the electorate, in which 19 37 case, the report shall state the reasons for and 19 38 against a change in the existing form of government. 19 39 The final report shall be made available to the 19 40 residents of the county upon request. A summary of 19 41 the final report shall be published in the official 19 42 newspapers of the county and in a newspaper of general 19 43 circulation in each participating city. 19 44 Sec. 51. Section 331.238, subsection 4, if enacted 19 45 by 2003 Iowa Acts, Senate File 390, section 9, is 19 46 amended to read as follows: 19 47 4.Subsections 1 and 2 doThis section does not 19 48 apply to the city-county consolidated form of 19 49 government or the community commonwealth form of 19 50 government. 20 1 Sec. 52. Section 331.247, subsection 4, Code 2003, 20 2 as amended by 2003 Iowa Acts, Senate File 390, section 20 3 11, if enacted, is amended to read as follows: 20 4 4. If an alternative form of government for a 20 5 consolidated unit of local government is proposed, 20 6 approval of the consolidation charter shall be 20 7 separate from approval of the alternative form of 20 8 government in those cities proposed to be included in 20 9 the consolidation. The question of whether the 20 10 election of officers of the consolidated unit of local 20 11 government shall be with regard to political 20 12 affiliation shall be a separate question on the 20 13 ballot. Adoption of the consolidation charter 20 14 requires the approval of a majority of the votes cast 20 15 in the entire county. A city named on the ballot is 20 16 included in the consolidation if the proposed charter 20 17 is approved by a majority of the votes cast in the 20 18 city. The consolidation charter shall be effective in 20 19 regard to a city government only if a majority of the 20 20 voters of the city voting on the question voted for 20 21 participation in the consolidation charter. 20 22 Sec. 53. Section 331.248, subsection 2, paragraph 20 23 j, if enacted by 2003 Iowa Acts, Senate File 390, 20 24 section 13, is amended by striking the paragraph and 20 25 inserting in lieu thereof the following: 20 26 j. Provide for the effective date of the adopted 20 27 charter. 20 28 Sec. 54. Section 331.252, Code 2003, as amended by 20 29 2003 Iowa Acts, Senate File 390, section 18, if 20 30 enacted, is amended by adding the following new 20 31 unnumbered paragraph after unnumbered paragraph 2: 20 32 NEW UNNUMBERED PARAGRAPH. If the charter described 20 33 on this ballot is adopted, should officers of the new 20 34 government be elected with regard to political 20 35 affiliation? 20 36 Sec. 55. Section 331.254, subsection 7, Code 2003, 20 37 as amended by 2003 Iowa Acts, Senate File 390, section 20 38 19, if enacted, is amended to read as follows: 20 39 7. The merger of the elective offices of each 20 40 consolidating county with the election of new officers 20 41 within sixty days after the effective date of the 20 42 charterwhich shall specifically provide whether the20 43election of new officers shall be on a partisan or20 44nonpartisan basis, notwithstanding section 331.238,20 45subsection 3. The elections shall be conducted by the 20 46 county commissioner of elections of each county. No 20 47 primary election shall be held. Nominations shall be 20 48 made pursuant to section 43.78 and chapters 44 and 45, 20 49 as applicable, except that the filing deadline shall 20 50 be forty days before the election. 21 1 Sec. 56. Section 331.261, subsection 11, Code 21 2 2003, as amended by 2003 Iowa Acts, Senate File 390, 21 3 section 22, if enacted, is amended by striking the 21 4 subsection and inserting in lieu thereof the 21 5 following: 21 6 11. The effective date of the adopted charter. 21 7 Sec. 57. Section 331.264, subsection 4, if enacted 21 8 by 2003 Iowa Acts, Senate File 390, section 25, is 21 9 amended to read as follows: 21 10 4. If the committee report recommends a city- 21 11 county consolidation or community commonwealth, the 21 12 committee shall continue its existence and be 21 13 designated, and operate with the powers and duties of, 21 14 a commission created pursuant to section 331.233A. If 21 15 the committee report recommends a multicounty 21 16 consolidation, the committee shall continue its 21 17 existence and be designated, and operate with the 21 18 powers and duties of, a commission created pursuant to 21 19 section 331.233.If the committee recommends an21 20alternative form of government, that recommendation21 21shall state whether elections conducted under that21 22form of government shall be partisan or nonpartisan.21 23 Sec. 58. EFFECTIVE AND APPLICABILITY DATES. This 21 24 division of this Act, being deemed of immediate 21 25 importance, takes effect upon enactment and applies to 21 26 charter commissions in existence on that date. 21 27 DIVISION VI 21 28 CRIMINAL OFFENDERS AND INMATES 21 29 Sec. 59. Section 321J.2, subsection 2, paragraph 21 30 a, subparagraph (1), Code 2003, is amended to read as 21 31 follows: 21 32 (1) Imprisonment in the county jail for not less 21 33 than forty-eight hours, to be served as ordered by the 21 34 court, less credit for any time the person was 21 35 confined in a jail or detention facility following 21 36 arrest or for any time the person spent in a court- 21 37 ordered operating-while-intoxicated program that 21 38 provides law enforcement security. However, the 21 39 court, in ordering service of the sentence and in its 21 40 discretion, may accommodate the defendant's work 21 41 schedule. 21 42 Sec. 60. NEW SECTION. 811.2A PRETRIAL RELEASE. 21 43 A person, who has been released under a plan of 21 44 pretrial release or on the person's own recognizance 21 45 and who is subsequently arrested for a new criminal 21 46 offense while under the plan of pretrial release or 21 47 released on the person's own recognizance, shall not 21 48 be eligible for another release pursuant to pretrial 21 49 release guidelines or released on the person's own 21 50 recognizance, if all of the following apply: 22 1 1. The arrest for the new criminal offense is 22 2 based on a set of facts or an event that is different 22 3 than involved in the earlier arrest. 22 4 2. The new criminal offense is classified as 22 5 greater than a serious misdemeanor. 22 6 However, a person may be admitted to bail if 22 7 eligible pursuant to section 811.1. 22 8 Sec. 61. Section 901.4, Code 2003, is amended to 22 9 read as follows: 22 10 901.4 PRESENTENCE INVESTIGATION REPORT 22 11 CONFIDENTIAL – DISTRIBUTION. 22 12 The presentence investigation report is 22 13 confidential and the court shall provide safeguards to 22 14 ensure its confidentiality, including but not limited 22 15 to sealing the report, which may be opened only by 22 16 further court order. At least three days prior to the 22 17 date set for sentencing, the court shall serve all of 22 18 the presentence investigation report upon the 22 19 defendant's attorney and the attorney for the state, 22 20 and the report shall remain confidential except upon 22 21 court order. However, the court may conceal the 22 22 identity of the person who provided confidential 22 23 information. The report of a medical examination or 22 24 psychological or psychiatric evaluation shall be made 22 25 available to the attorney for the state and to the 22 26 defendant upon request. The reports are part of the 22 27 record but shall be sealed and opened only on order of 22 28 the court. If the defendant is committed to the 22 29 custody of the Iowa department of corrections and is 22 30 not a class "A" felon, a copy of the presentence 22 31 investigation report shall be forwarded to the 22 32 director with the order of commitment by the clerk of 22 33 the district court and to the board of parole at the 22 34 time of commitment.ThePursuant to section 904.602, 22 35 the presentence investigation report may also be 22 36 released by the department of corrections or a 22 37 judicial district department of correctional services 22 38pursuant to section 904.602to another jurisdiction 22 39 for the purpose of providing interstate probation and 22 40 parole compact services or evaluations, or to a 22 41 substance abuse or mental health services provider 22 42 when referring a defendant for services. The 22 43 defendant or the defendant's attorney may file with 22 44 the presentence investigation report, a denial or 22 45 refutation of the allegations, or both, contained in 22 46 the report. The denial or refutation shall be 22 47 included in the report. If the person is sentenced 22 48 for an offense which requires registration under 22 49 chapter 692A, the court shall release the report to 22 50 the department which is responsible under section 23 1 692A.13A for performing the assessment of risk. 23 2 Sec. 62. Section 901B.1, subsection 1, paragraph 23 3 c, subparagraph (5), Code 2003, is amended to read as 23 4 follows: 23 5 (5) A substance abuse treatment facility as 23 6 established and operated by the Iowa department of 23 7 public health or the department of corrections. 23 8 Sec. 63. Section 903A.2, subsection 1, paragraph 23 9 a, Code 2003, is amended to read as follows: 23 10 a. Category "A" sentences are those sentences 23 11 which are not subject to a maximum accumulation of 23 12 earned time of fifteen percent of the total sentence 23 13 of confinement under section 902.12. To the extent 23 14 provided in subsection 5, category "A" sentences also 23 15 include life sentences imposed under section 902.1. 23 16 An inmate of an institution under the control of the 23 17 department of corrections who is serving a category 23 18 "A" sentence is eligible for a reduction of sentence 23 19 equal to one and two-tenths days for each day the 23 20 inmate demonstrates good conduct and satisfactorily 23 21 participates in any program or placement status 23 22 identified by the director to earn the reduction. The 23 23 programs include but are not limited to the following: 23 24 (1) Employment in the institution. 23 25 (2) Iowa state industries. 23 26 (3) An employment program established by the 23 27 director. 23 28 (4) A treatment program established by the 23 29 director. 23 30 (5) An inmate educational program approved by the 23 31 director. 23 32 An inmate serving a category "A" sentence is 23 33 eligible for an additional reduction of sentence of up 23 34 to three hundred sixty-five days of the full term of 23 35 the sentence of the inmate for exemplary acts. In 23 36 accordance with section 903A.4, the director shall by 23 37 policy identify what constitutes an exemplary act that 23 38 may warrant an additional reduction of sentence. 23 39 Sec. 64. Section 903A.3, subsection 2, Code 2003, 23 40 is amended to read as follows: 23 41 2. The orders of the administrative law judge are 23 42 subject to appeal to the superintendent or warden of 23 43 the institution, or the superintendent's or warden's 23 44 designee, who may either affirm, modify, remand for 23 45 correction of procedural errors, or reverse an order. 23 46 However, sanctions shall not be increased on appeal. 23 47A decision of the superintendent, warden, or designee23 48is subject to review by the director of the Iowa23 49department of corrections who may either affirm,23 50modify, remand for correction of procedural errors, or24 1reverse the decision. However, sanctions shall not be24 2increased on review.24 3 Sec. 65. NEW SECTION. 904.117 INTERSTATE COMPACT 24 4 FUND. 24 5 An interstate compact fund is established under the 24 6 control of the department. All interstate compact 24 7 fees collected by the department pursuant to section 24 8 907B.5 shall be deposited into the fund and the moneys 24 9 shall be used by the department to offset the costs of 24 10 complying with the interstate compact for adult 24 11 offender supervision in chapter 907B. Notwithstanding 24 12 section 8.33, moneys remaining in the fund at the end 24 13 of a fiscal year shall not revert to the general fund 24 14 of the state. Notwithstanding section 12C.7, interest 24 15 and earnings deposited in the fund shall be credited 24 16 to the fund. 24 17 Sec. 66. Section 904.503, subsection 2, Code 2003, 24 18 is amended to read as follows: 24 19 2. When the director has cause to believe that an 24 20 inmate in a state correctional institution is mentally 24 21 ill, the Iowa department of corrections may cause the 24 22 inmate to be transferred to the Iowa medical and 24 23 classification center, or to another appropriate 24 24 facility within the department, for examination, 24 25 diagnosis, or treatment. The inmate shall be confined 24 26 at thatinstitutioncenter or facility or a state 24 27 hospital for persons with mental illness until the 24 28 expiration of the inmate's sentence or until the 24 29 inmate is pronounced in good mental health. If the 24 30 inmate is pronounced in good mental health before the 24 31 expiration of the inmate's sentence, the inmate shall 24 32 be returned to the state correctional institution 24 33 until the expiration of the inmate's sentence. 24 34 Sec. 67. Section 904.508, subsection 2, Code 2003, 24 35 is amended to read as follows: 24 36 2.ThePursuant to section 904.702, the director 24 37 shall establish and maintain an inmate savings fund in 24 38 an interest-bearing account for the deposit of all or 24 39 part of an inmate's allowances, as provided in section24 40904.702and amounts, except amounts directed to be 24 41 deposited in the inmate telephone fund established in 24 42 section 904.508A, sent to the inmate from a source 24 43 other than the department. All or part of an inmate's 24 44 allowances and amounts, except amounts directed to be 24 45 deposited in the inmate telephone fund established in 24 46 section 904.508A, from a source other than the 24 47 department shall be deposited into the savings fund, 24 48 until the inmate's deposit is equal tothe amount due24 49the inmate upon discharge, parole, or placement on24 50work release,one hundred dollars as provided in 25 1 section 906.9. If an inmate's deposits are equalthis25 2amountto or in excess of one hundred dollars, the 25 3 inmate may voluntarily withdraw from the savings fund. 25 4 The director shall notify the inmate of this right to 25 5 withdraw and shall provide the inmate with a written 25 6 request form to facilitate the withdrawal. If the 25 7 inmate withdraws and the inmate's deposits exceed the 25 8 amount due as provided in section 906.9, the director 25 9 shall disburse the excess amount as provided for 25 10 allowances under section 904.702, except the director 25 11 shall not deposit the excess amount in the inmate 25 12 savings fund. If the inmate chooses to continue to 25 13 participate in the savings fund, the inmate's deposits 25 14 shall be returned to the inmate upon discharge, 25 15 parole, or placement on work release. Otherwise, the 25 16 inmate's deposits shall be disposed of as provided in 25 17 subsection 3. An inmate's deposits into the savings 25 18 fund may be used to provide the money due the inmate 25 19 upon discharge, parole, or placement on work release, 25 20 as required under section 906.9. Interest earned from 25 21 the savings fund shall be placed in a separate 25 22 account, and may be used for purchases approved by the 25 23 director to directly and collectively benefit inmates. 25 24 Sec. 68. Section 904.508A, Code 2003, is amended 25 25 to read as follows: 25 26 904.508A INMATE TELEPHONEREBATEFUND. 25 27 The department is authorized to establish and 25 28 maintain an inmate telephonerebatefundin each25 29institutionfor the deposit of moneys received for 25 30 inmate telephonerebatescalls. All funds deposited 25 31 in this fund shall be used for the benefit of inmates. 25 32 The director shall adopt rules providing for the 25 33 disbursement of moneys from the fund. 25 34 Sec. 69. Section 904.513, subsection 1, paragraph 25 35 b, subparagraph (4), Code 2003, is amended to read as 25 36 follows: 25 37 (4) Assignment may also be made on the basis of 25 38 the offender's treatment program performance, as a 25 39 disciplinary measure, for medical needs, and for space 25 40 availability at community residential facilities. If 25 41 there is insufficient space at a community residential 25 42 facility, the court may order an offender to be 25 43 released to the supervision of the judicial district 25 44 department of correctional services,orheld in jail, 25 45 or committed to the custody of the director of the 25 46 department of corrections for assignment to an 25 47 appropriate correctional facility until there is 25 48 sufficient space at a community residential facility. 25 49 Sec. 70. Section 904.702, unnumbered paragraph 1, 25 50 Code 2003, is amended to read as follows: 26 1 If allowances are paid pursuant to section 904.701, 26 2 the director shall establish an inmate account, for 26 3 deposit of those allowances and for deposit of moneys 26 4 sent to the inmate from a source other than the 26 5 department of corrections. The director may deduct an 26 6 amount, not to exceed ten percent of the amount of the 26 7 allowance, unless the inmate requests a larger amount, 26 8 to be deposited into the inmate savings fund as 26 9 required under section 904.508, subsection 2. In 26 10 addition to deducting a portion of the allowance, the 26 11 director may also deduct from an inmate account any 26 12 amount, except amounts directed to be deposited in the 26 13 inmate telephone fund established in section 904.508A, 26 14 sent to the inmate from a source other than the 26 15 department of corrections for deposit in the inmate 26 16 savings fund as required under section 904.508, 26 17 subsection 2, until the amount in the fund equals the 26 18 amount due the inmate upon discharge, parole, or 26 19 placement on work release. The director shall deduct 26 20 from the inmate account an amount established by the 26 21 inmate's restitution plan of payment. The director 26 22 shall also deduct from any remaining account balance 26 23 an amount sufficient to pay all or part of any 26 24 judgment against the inmate, including but not limited 26 25 to judgments for taxes and child support, and court 26 26 costs and fees assessed either as a result of the 26 27 inmate's confinement or amounts required to be paid 26 28 under section 610A.1. Written notice of the amount of 26 29 the deduction shall be given to the inmate, who shall 26 30 have five days after receipt of the notice to submit 26 31 in writing any and all objections to the deduction to 26 32 the director, who shall consider the objections prior 26 33 to transmitting the deducted amount to the clerk of 26 34 the district court. The director need give only one 26 35 notice for each action or appeal under section 610A.1 26 36 for which periodic deductions are to be made. The 26 37 director shall next deduct from any remaining account 26 38 balance an amount sufficient to pay all or part of any 26 39 costs assessed against the inmate for misconduct or 26 40 damage to the property of others. The director may 26 41 deduct from the inmate's account an amount sufficient 26 42 to pay for the inmate's share of the costs of health 26 43 services requested by the inmate and for the treatment 26 44 of injuries inflicted by the inmate on the inmate or 26 45 others. The director may deduct and disburse an 26 46 amount sufficient for industries' programs to qualify 26 47 under the eligibility requirements established in the 26 48 Justice Assistance Act of 1984, Pub. L. No. 98-473, 26 49 including an amount to pay all or part of the cost of 26 50 the inmate's incarceration. The director may pay all 27 1 or any part of remaining allowances paid pursuant to 27 2 section 904.701 directly to a dependent of the inmate, 27 3 or may deposit the allowance to the account of the 27 4 inmate, or may deposit a portion and allow the inmate 27 5 a portion for the inmate's personal use. 27 6 Sec. 71. Section 907.4, Code 2003, is amended to 27 7 read as follows: 27 8 907.4 DEFERRED JUDGMENT DOCKET. 27 9 A deferment of judgment under section 907.3 shall 27 10 be reported promptly by the clerk of the district 27 11 court, or the clerk's designee, to the state court 27 12 administrator for entry in the deferred judgment 27 13 docket. The docket shall contain a permanent record 27 14 of the deferred judgment including the name and date 27 15 of birth of the defendant, the district court docket 27 16 number, the nature of the offense, and the date of the 27 17 deferred judgment. Before granting deferred judgment 27 18 in any case, the court shall request of the state 27 19 court administrator a search of the deferred judgment 27 20 docket and shall consider any prior record of a 27 21 deferred judgment against the defendant. The 27 22 permanent record provided for in this section is a 27 23 confidential record exempted from public access under 27 24 section 22.7 and shall be available only to justices 27 25 of the supreme court, judges of the court of appeals, 27 26 district judges, district associate judges, judicial 27 27 magistrates, clerks of the district court, judicial 27 28 district departments of correctional services, and 27 29 county attorneys requesting information pursuant to 27 30 this section, or the designee of a justice, judge, 27 31 magistrate, clerk, judicial district department of 27 32 correctional services, or county attorney. 27 33 Sec. 72. Section 907.9, subsections 1, 2, and 4, 27 34 Code 2003, are amended to read as follows: 27 35 1. At any time that the court determines that the 27 36 purposes of probation have been fulfilled and the fees 27 37 imposed under section 905.14 have been paidto or27 38waived by the judicial district department of27 39correctional servicesor on condition that unpaid 27 40 supervision fees be paid, the court may order the 27 41 discharge of a person from probation. 27 42 2. At any time that a probation officer determines 27 43 that the purposes of probation have been fulfilled and 27 44 the fees imposed under section 905.14 have been paid 27 45to or waived by the judicial district department of27 46correctional servicesor on condition that unpaid 27 47 supervision fees be paid, the officer may order the 27 48 discharge of a person from probation after approval of 27 49 the district director and notification of the 27 50 sentencing court and the county attorney who 28 1 prosecuted the case. 28 2 4. At the expiration of the period of probation 28 3 and if the fees imposed under section 905.14 have been 28 4 paidto or waived by the judicial district department28 5of correctional servicesor on condition that unpaid 28 6 supervision fees be paid, the court shall order the 28 7 discharge of the person from probation, and the court 28 8 shall forward to the governor a recommendation for or 28 9 against restoration of citizenship rights to that 28 10 person. A person who has been discharged from 28 11 probation shall no longer be held to answer for the 28 12 person's offense. Upon discharge from probation, if 28 13 judgment has been deferred under section 907.3, the 28 14 court's criminal record with reference to the deferred 28 15 judgment shall be expunged. The record maintained by 28 16 the state court administrator as required by section 28 17 907.4 shall not be expunged. The court's record shall 28 18 not be expunged in any other circumstances. 28 19 Sec. 73. NEW SECTION. 907B.4 INTERSTATE COMPACT 28 20 FEE. 28 21 The department of corrections may assess a fee, not 28 22 to exceed one hundred dollars, for an application to 28 23 transfer out of the state under the interstate compact 28 24 for adult offender supervision. The fee may be waived 28 25 by the department. The moneys collected pursuant to 28 26 this section shall be deposited into the interstate 28 27 compact fund established in section 904.117 and shall 28 28 be used to offset the costs of complying with the 28 29 interstate compact for adult offender supervision. 28 30 Sec. 74. Section 910.3B, Code 2003, is amended to 28 31 read as follows: 28 32 910.3B RESTITUTION FOR DEATH OF VICTIM. 28 33 1. In all criminal cases in which the offender is 28 34 convicted of a felony in which the act or acts 28 35 committed by the offender caused the death of another 28 36 person, in addition to the amount determined to be 28 37 payable and ordered to be paid to a victim for 28 38 pecuniary damages, as defined under section 910.1, and 28 39 determined under section 910.3, the court shall also 28 40 order the offender to pay at least one hundred fifty 28 41 thousand dollars in restitution to the victim's estate 28 42 if the victim died testate. If the victim died 28 43 intestate the court shall order the offender to pay 28 44 the restitution to the victim's heirs at law as 28 45 determined pursuant to section 633.210. The 28 46 obligation to pay the additional amount shall not be 28 47 dischargeable in any proceeding under the federal 28 48 Bankruptcy Act. Payment of the additional amount 28 49 shall have the same priority as payment of a victim's 28 50 pecuniary damages under section 910.2, in the 29 1 offender's plan for restitution. 29 2 2. An award under this section does not preclude 29 3 or supersede the right of a victim's estate or heirs 29 4 at law to bring a civil action against the offender 29 5 for damages arising out of the same facts or event. 29 6 However, no evidence relating to the entry of the 29 7 judgment against the offender pursuant to this section 29 8 or the amount of the award ordered pursuant to this 29 9 section shall be permitted to be introduced in any 29 10 civil action for damages arising out of the same facts 29 11 or event. 29 12 3. An offender who is ordered to pay a victim's 29 13 estate or heirs at law under this section is precluded 29 14 from denying the elements of the felony offense which 29 15 resulted in the order for payment in any subsequent 29 16 civil action for damages arising out of the same facts 29 17 or event. 29 18 Sec. 75. Section 915.100, subsection 2, paragraph 29 19 c, Code 2003, is amended to read as follows: 29 20 c. In cases where the act committed by an offender 29 21 causes the death of another person, in addition to the 29 22 amount ordered for payment of the victim's pecuniary 29 23 damages, the court shall also order the offender to 29 24 pay at least one hundred fifty thousand dollars in 29 25 restitution to the victim's estate or heirs at law, 29 26 pursuant to the provisions of section 910.3B. 29 27 DIVISION VII 29 28 ECONOMIC DEVELOPMENT APPROPRIATIONS 29 29 Sec. 76. MARKETING APPROPRIATION. 29 30 1. There is appropriated from the grow Iowa fund 29 31 created in section 15G.107, if enacted by 2003 Iowa 29 32 Acts, House File 692 or another Act, to the department 29 33 of economic development, for the fiscal period 29 34 beginning July 1, 2004, and ending June 30, 2010, the 29 35 following amounts, or so much thereof as is necessary, 29 36 to be used for the purpose designated: 29 37 For implementing and administering the marketing 29 38 strategy approved under section 15G.108, if enacted by 29 39 2003 Iowa Acts, House File 692 or another Act: 29 40 FY 2004-2005..................................... $ 10,000,000 29 41 FY 2005-2006..................................... $ 10,000,000 29 42 FY 2006-2007..................................... $ 5,000,000 29 43 FY 2007-2008..................................... $ 5,000,000 29 44 FY 2008-2009..................................... $ 5,000,000 29 45 FY 2009-2010..................................... $ 2,500,000 29 46 2. Notwithstanding section 8.33, moneys that 29 47 remain unexpended at the end of a fiscal year shall 29 48 not revert to any fund but shall remain available for 29 49 expenditure for the designated purposes during the 29 50 succeeding fiscal year. 30 1 Sec. 77. DEPARTMENT OF ECONOMIC DEVELOPMENT 30 2 APPROPRIATION. 30 3 1. There is appropriated from the grow Iowa fund 30 4 created in section 15G.107, if enacted by 2003 Iowa 30 5 Acts, House File 692 or another Act, to the department 30 6 of economic development for the fiscal period 30 7 beginning July 1, 2003, and ending June 30, 2010, the 30 8 following amounts, or so much thereof as is necessary, 30 9 to be used for the purpose designated: 30 10 For programs administered by the department of 30 11 economic development: 30 12 FY 2003-2004...................................... $ 41,575,000 30 13 FY 2004-2005...................................... $ 31,575,000 30 14 FY 2005-2006...................................... $ 35,000,000 30 15 FY 2006-2007...................................... $ 32,500,000 30 16 FY 2007-2008...................................... $ 30,500,000 30 17 FY 2008-2009...................................... $ 13,500,000 30 18 FY 2009-2010...................................... $ 13,500,000 30 19 2. Notwithstanding section 8.33, moneys that 30 20 remain unexpended at the end of a fiscal year shall 30 21 not revert to any fund but shall remain available for 30 22 expenditure for the designated purposes during the 30 23 succeeding fiscal year. 30 24 3. Each year that moneys are appropriated under 30 25 this section, the grow Iowa board shall allocate a 30 26 percentage of the moneys for each of the following 30 27 types of activities: 30 28 a. Business start-ups. 30 29 b. Business expansion. 30 30 c. Business modernization. 30 31 d. Business attraction. 30 32 e. Business retention. 30 33 f. Marketing. 30 34 4. An applicant for moneys appropriated under this 30 35 section shall be required by the department to include 30 36 in the application a statement regarding the intended 30 37 return on investment. A recipient of moneys 30 38 appropriated under this section shall annually submit 30 39 a statement to the department regarding the progress 30 40 achieved on the intended return on investment stated 30 41 in the application. The department, in cooperation 30 42 with the department of revenue and finance, shall 30 43 develop a method of identifying and tracking each new 30 44 job created through financial assistance from moneys 30 45 appropriated under this section. 30 46 5. The department may use moneys appropriated 30 47 under this section to procure technical assistance 30 48 from either the public or private sector, for 30 49 information technology purposes, and for rail, air, or 30 50 river port transportation-related purposes. The use 31 1 of moneys appropriated for rail, air, or river port 31 2 transportation-related purposes must be directly 31 3 related to an economic development project and the 31 4 moneys must be used to leverage other financial 31 5 assistance moneys. 31 6 6. Of the moneys appropriated under this section, 31 7 the department may use one-quarter of one percent for 31 8 administrative purposes. 31 9 7. The grow Iowa board is required to approve or 31 10 deny applications for financial assistance from moneys 31 11 appropriated under this section. 31 12 Sec. 78. UNIVERSITY AND COLLEGE FINANCIAL 31 13 ASSISTANCE APPROPRIATION. 31 14 1. There is appropriated from the grow Iowa fund 31 15 created in section 15G.107, if enacted by 2003 Iowa 31 16 Acts, House File 692 or another Act, to the grow Iowa 31 17 board for the fiscal period beginning July 1, 2003, 31 18 and ending June 30, 2010, the following amounts, or so 31 19 much thereof as is necessary, to be used for the 31 20 purposes designated: 31 21 For financial assistance for institutions of higher 31 22 learning under the control of the state board of 31 23 regents and for accredited private institutions as 31 24 defined in section 261.9 for multiuse, goods 31 25 manufacturing processes approved by the food and drug 31 26 administration of the United States department of 31 27 health and human services, protein purification 31 28 facilities for plant, animal, and chemical 31 29 manufactured proteins; upgrading food and drug 31 30 administration drug approval laboratories in Iowa City 31 31 to a larger multiclient, goods manufacturing processes 31 32 facility; crop and animal livestock facilities for the 31 33 growing of transgenic crops and livestock; and 31 34 advanced laboratory space: 31 35 FY 2003-2004...................................... $ 5,325,000 31 36 FY 2004-2005...................................... $ 5,325,000 31 37 FY 2005-2006...................................... $ 5,325,000 31 38 FY 2006-2007...................................... $ 5,325,000 31 39 FY 2007-2008...................................... $ 5,325,000 31 40 FY 2008-2009...................................... $ 5,325,000 31 41 FY 2009-2010...................................... $ 5,325,000 31 42 2. Notwithstanding section 8.33, moneys that 31 43 remain unexpended at the end of a fiscal year shall 31 44 not revert to any fund but shall remain available for 31 45 expenditure for the designated purposes during the 31 46 succeeding fiscal year. 31 47 3. In the distribution of moneys appropriated 31 48 pursuant to this section, the grow Iowa board shall 31 49 examine the potential for using moneys appropriated 31 50 pursuant to this section to leverage other moneys for 32 1 financial assistance to accredited private 32 2 institutions. 32 3 4. In awarding moneys appropriated pursuant to 32 4 this section, the grow Iowa board shall consider 32 5 whether the purchase of suitable existing 32 6 infrastructure is more cost-efficient than building 32 7 new infrastructure. 32 8 5. An institution of higher learning under the 32 9 control of the state board of regents may apply to use 32 10 financial assistance moneys under this section for 32 11 purposes of a public and private joint venture to 32 12 acquire infrastructure assets or research facilities 32 13 or to leverage moneys in a manner consistent with 32 14 meeting the goals and performance measures provided in 32 15 section 15G.106, if enacted by 2003 Iowa Acts, House 32 16 File 692 or another Act. 32 17 Sec. 79. REHABILITATION PROJECT TAX CREDITS 32 18 APPROPRIATION. 32 19 1. There is appropriated from the grow Iowa fund 32 20 created in section 15G.107, if enacted by 2003 Iowa 32 21 Acts, House File 692 or another Act, to the general 32 22 fund of the state, for the fiscal period beginning 32 23 July 1, 2003, and ending June 30, 2010, the following 32 24 amounts, or so much thereof as is necessary, to be 32 25 used for the purpose designated: 32 26 For payment of tax credits approved pursuant to 32 27 section 404A.4 for projects located in certified 32 28 cultural and entertainment districts: 32 29 FY 2003-2004...................................... $ 700,000 32 30 FY 2004-2005...................................... $ 700,000 32 31 FY 2005-2006...................................... $ 700,000 32 32 FY 2006-2007...................................... $ 700,000 32 33 FY 2007-2008...................................... $ 700,000 32 34 FY 2008-2009...................................... $ 700,000 32 35 FY 2009-2010...................................... $ 700,000 32 36 2. Notwithstanding section 8.33, moneys that 32 37 remain unexpended at the end of a fiscal year shall 32 38 not revert to any fund but shall remain available for 32 39 expenditure for the designated purposes during the 32 40 succeeding fiscal year. 32 41 Sec. 80. LOAN AND CREDIT GUARANTEE FUND 32 42 APPROPRIATION. 32 43 1. There is appropriated from the grow Iowa fund 32 44 created in section 15G.107, if enacted by 2003 Iowa 32 45 Acts, House File 692 or another Act, to the department 32 46 of economic development for the fiscal period 32 47 beginning July 1, 2003, and ending June 30, 2010, the 32 48 following amounts, or so much thereof as is necessary, 32 49 to be used for the purpose designated: 32 50 For deposit in the loan and credit guarantee fund 33 1 created in section 15E.227: 33 2 FY 2003-2004...................................... $ 2,500,000 33 3 FY 2004-2005...................................... $ 7,500,000 33 4 FY 2005-2006...................................... $ 8,575,000 33 5 FY 2006-2007...................................... $ 11,075,000 33 6 FY 2007-2008...................................... $ 13,075,000 33 7 FY 2008-2009...................................... $ 35,075,000 33 8 FY 2009-2010...................................... $ 37,575,000 33 9 2. Notwithstanding section 8.33, moneys that 33 10 remain unexpended at the end of a fiscal year shall 33 11 not revert to any fund but shall remain available for 33 12 expenditure for the designated purpose during the 33 13 succeeding fiscal year. 33 14 Sec. 81. ENDOW IOWA TAX CREDITS. 33 15 1. There is appropriated from the grow Iowa fund 33 16 created in section 15G.107, if enacted by 2003 Iowa 33 17 Acts, House File 692 or another Act, to the general 33 18 fund of the state, for the fiscal period beginning 33 19 July 1, 2003, and ending June 30, 2010, the following 33 20 amounts, or so much thereof as is necessary, to be 33 21 used for the purpose designated: 33 22 For payment of endow Iowa tax credits authorized 33 23 pursuant to section 15E.305: 33 24 FY 2003-2004...................................... $ 200,000 33 25 FY 2004-2005...................................... $ 200,000 33 26 FY 2005-2006...................................... $ 200,000 33 27 FY 2006-2007...................................... $ 200,000 33 28 FY 2007-2008...................................... $ 200,000 33 29 FY 2008-2009...................................... $ 200,000 33 30 FY 2009-2010...................................... $ 200,000 33 31 2. Notwithstanding section 8.33, moneys that 33 32 remain unexpended at the end of a fiscal year shall 33 33 not revert to any fund but shall remain available for 33 34 expenditure for the designated purposes during the 33 35 succeeding fiscal year. 33 36 Sec. 82. ENDOW IOWA GRANTS APPROPRIATION. 33 37 1. There is appropriated from the grow Iowa fund 33 38 created in section 15G.107, if enacted by 2003 Iowa 33 39 Acts, House File 692 or another Act, to the department 33 40 of economic development for the fiscal period 33 41 beginning July 1, 2003, and ending June 30, 2010, the 33 42 following amounts, or so much thereof as is necessary, 33 43 to be used for the purpose designated: 33 44 For endow Iowa grants to lead philanthropic 33 45 entities pursuant to section 15E.304: 33 46 FY 2003-2004...................................... $ 200,000 33 47 FY 2004-2005...................................... $ 200,000 33 48 FY 2005-2006...................................... $ 200,000 33 49 FY 2006-2007...................................... $ 200,000 33 50 FY 2007-2008...................................... $ 200,000 34 1 FY 2008-2009...................................... $ 200,000 34 2 FY 2009-2010...................................... $ 200,000 34 3 2. Notwithstanding section 8.33, moneys that 34 4 remain unexpended at the end of a fiscal year shall 34 5 not revert to any fund but shall remain available for 34 6 expenditure for the designated purposes during the 34 7 succeeding fiscal year. 34 8 Sec. 83. ANTICIPATED FEDERAL MONEYS – 34 9 APPROPRIATION. 34 10 1. There is appropriated from the fund created by 34 11 section 8.41, for the fiscal period beginning July 1, 34 12 2003, and ending June 30, 2005, the following amounts 34 13 to be used for the purpose designated: 34 14 For deposit in the grow Iowa fund created in 34 15 section 15G.107, if enacted by 2003 Iowa Acts, House 34 16 File 692 or another Act: 34 17 FY 2003-2004...................................... $ 59,000,000 34 18 FY 2004-2005...................................... $ 41,000,000 34 19 2. Moneys appropriated in this section are moneys 34 20 anticipated to be received from the federal government 34 21 for state and local government fiscal relief under the 34 22 federal Jobs and Growth Tax Relief Reconciliation Act 34 23 of 2003 and shall be expended as provided in the 34 24 federal law making the moneys available and in 34 25 conformance with chapter 17A. 34 26 3. Notwithstanding section 8.33, moneys that 34 27 remain unexpended at the end of a fiscal year shall 34 28 not revert to any fund but shall remain available for 34 29 expenditure for the designated purposes during the 34 30 succeeding fiscal year. 34 31 Sec. 84. STREAMLINED SALES AND USE TAX REVENUE – 34 32 APPROPRIATION. 34 33 1. There is appropriated from the general fund of 34 34 the state from moneys credited to the general fund of 34 35 the state as a result of entering into the streamlined 34 36 sales and use tax agreement, for the fiscal period 34 37 beginning July 1, 2003, and ending June 30, 2010, the 34 38 following amounts to be used for the purpose 34 39 designated: 34 40 For deposit in the grow Iowa fund created in 34 41 section 15G.107, if enacted by 2003 Iowa Acts, House 34 42 File 692 or another Act: 34 43 FY 2003-2004...................................... $ 5,000,000 34 44 FY 2004-2005...................................... $ 23,000,000 34 45 FY 2005-2006...................................... $ 75,000,000 34 46 FY 2006-2007...................................... $ 75,000,000 34 47 FY 2007-2008...................................... $ 75,000,000 34 48 FY 2008-2009...................................... $ 75,000,000 34 49 FY 2009-2010...................................... $ 75,000,000 34 50 2. For purposes of this section, "moneys credited 35 1 to the general fund of the state as a result of 35 2 entering into the streamlined sales and use tax 35 3 agreement" means the amount of sales and use tax 35 4 receipts credited to the general fund of the state 35 5 during a fiscal year that exceeds by two percent or 35 6 more the total sales and use tax receipts credited to 35 7 the general fund of the state during the previous 35 8 fiscal year. 35 9 3. If the moneys credited to the general fund of 35 10 the state as a result of entering into the streamlined 35 11 sales and use tax agreement during a fiscal year total 35 12 less than the amount appropriated in this section, the 35 13 appropriation in this section shall be reduced to 35 14 equal the total amount of the moneys so credited. 35 15 4. Notwithstanding section 8.33, moneys that 35 16 remain unexpended at the end of a fiscal year shall 35 17 not revert to any fund but shall remain available for 35 18 expenditure for the designated purposes during the 35 19 succeeding fiscal year. 35 20 DIVISION VIII 35 21 WORKFORCE-RELATED ISSUES 35 22 Sec. 85. NEW SECTION. 260C.18A WORKFORCE 35 23 TRAINING AND ECONOMIC DEVELOPMENT FUNDS. 35 24 1. a. A workforce training and economic 35 25 development fund is created for each community 35 26 college. Moneys shall be deposited and expended from 35 27 a fund as provided under this section. 35 28 b. Moneys in the funds shall consist of any moneys 35 29 appropriated by the general assembly and any other 35 30 moneys available to and obtained or accepted by the 35 31 department of economic development from federal 35 32 sources or private sources for placement in the funds. 35 33 Notwithstanding section 8.33, moneys in the funds at 35 34 the end of each fiscal year shall not revert to any 35 35 other fund but shall remain in the funds for 35 36 expenditure in subsequent fiscal years. 35 37 2. On July 1 of each year for the fiscal year 35 38 beginning July 1, 2003, and for every fiscal year 35 39 thereafter, moneys from the grow Iowa fund created in 35 40 section 15G.107, if enacted by 2003 Iowa Acts, House 35 41 File 692 or another Act, are appropriated to the 35 42 department of economic development for deposit in the 35 43 workforce training and economic development funds in 35 44 amounts determined pursuant to subsection 3. Moneys 35 45 deposited in the funds and disbursed to community 35 46 colleges for a fiscal year shall be expended for the 35 47 following purposes: 35 48 a. Projects in which an agreement between a 35 49 community college and an employer located within the 35 50 community college's merged area meet all of the 36 1 requirements of the accelerated career education 36 2 program under chapter 260G. However, moneys used by 36 3 the community colleges from the workforce training and 36 4 economic development fund for these projects shall be 36 5 in lieu of the program job credits provided under 36 6 chapter 260G. Projects using moneys from the 36 7 workforce training and economic development fund under 36 8 this paragraph shall be in accordance with rules 36 9 adopted by the department of economic development 36 10 under chapter 260G. 36 11 b. Projects in which an agreement between a 36 12 community college and a business meet all the 36 13 requirements of the Iowa jobs training Act under 36 14 chapter 260F. However, when moneys are provided 36 15 through the grow Iowa fund for such projects, section 36 16 260F.6, subsections 1 and 2, and section 260F.8 shall 36 17 not apply. Projects using moneys from the workforce 36 18 training and economic development fund under this 36 19 paragraph shall be in accordance with rules adopted by 36 20 the department of economic development under chapter 36 21 260F. 36 22 c. For the development and implementation of 36 23 career academies designed to provide new career 36 24 preparation opportunities for high school students 36 25 that are formally linked with postsecondary career and 36 26 technical education programs. Moneys from workforce 36 27 training and economic development funds that are 36 28 expended for purposes of this paragraph shall be in 36 29 accordance with the plan submitted to the department 36 30 of economic development and the grow Iowa board under 36 31 subsection 5. For purposes of this section, "career 36 32 academy" means a program of study that combines a 36 33 minimum of two years of secondary education with an 36 34 associate degree, or the equivalent, career 36 35 preparatory program in a nonduplicative, sequential 36 36 course of study that is standards based, integrates 36 37 academic and technical instruction, utilizes work- 36 38 based and worksite learning where appropriate and 36 39 available, utilizes an individual career planning 36 40 process with parent involvement, and leads to an 36 41 associate degree or postsecondary diploma or 36 42 certificate in a career field that prepares an 36 43 individual for entry and advancement in a high-skill 36 44 and reward career field and further education. The 36 45 state board of education, in conjunction with the 36 46 division of community colleges and workforce 36 47 preparation of the department of education, and in 36 48 consultation with the department of economic 36 49 development, shall adopt administrative rules for the 36 50 development and implementation of such career 37 1 academies pursuant to section 256.11, subsection 5, 37 2 paragraph "h", section 260C.1, and Title II of Pub. L. 37 3 No. 105-332, Carl D. Perkins Vocational and Technical 37 4 Education Act of 1998. 37 5 d. Programs and courses that provide vocational 37 6 and technical training, and programs for in-service 37 7 training and retraining under section 260C.1, 37 8 subsections 2 and 3. 37 9 3. Moneys from the workforce training and economic 37 10 development fund that are expended for purposes of 37 11 this subsection shall be in accordance with the plan 37 12 submitted to the department of economic development 37 13 and the grow Iowa board under subsection 5. The 37 14 maximum cumulative total amount of moneys that may be 37 15 deposited in all the workforce training and economic 37 16 development funds for distribution to community 37 17 colleges in a fiscal year shall be determined as 37 18 follows: 37 19 a. Six million dollars for the fiscal year 37 20 beginning July 1, 2003. 37 21 b. Eleven million dollars for the fiscal year 37 22 beginning July 1, 2004. 37 23 c. Twenty million dollars for the fiscal year 37 24 beginning July 1, 2005. 37 25 d. Twenty million dollars for the fiscal year 37 26 beginning July 1, 2006. 37 27 e. Twenty million dollars for the fiscal year 37 28 beginning July 1, 2007. 37 29 f. Fifteen million dollars for the fiscal year 37 30 beginning July 1, 2008. 37 31 g. Fifteen million dollars for the fiscal year 37 32 beginning July 1, 2009. 37 33 4. The department of economic development shall 37 34 allocate the moneys appropriated pursuant to this 37 35 section to the community college workforce training 37 36 and economic development funds utilizing the same 37 37 distribution formula used for the allocation of state 37 38 general aid to the community colleges. 37 39 5. Each community college shall do all of the 37 40 following: 37 41 a. Adopt a two-year workforce training and 37 42 economic development fund plan outlining the community 37 43 college's proposed use of moneys appropriated under 37 44 subsection 2. 37 45 b. Update the two-year plan annually. 37 46 c. Prepare an annual progress report on the two- 37 47 year plan's implementation. 37 48 d. Annually submit the two-year plan and progress 37 49 report to the department of economic development in a 37 50 manner prescribed by rules adopted by the department 38 1 pursuant to chapter 17A and annually file a copy of 38 2 the plan and progress report with the grow Iowa board. 38 3 6. Any individual project using over one million 38 4 dollars of moneys from a workforce training and 38 5 economic development fund shall require prior approval 38 6 from the grow Iowa board. 38 7 Sec. 86. NEW SECTION. 260F.9 JOB RETENTION 38 8 PROGRAM AND FUND. 38 9 1. A job retention fund is created in the state 38 10 treasury under the control of the department of 38 11 economic development to encourage the retention of 38 12 existing jobs and income that would otherwise be lost 38 13 and encourage large businesses to remain in the state. 38 14 Moneys shall be deposited and expended from the fund 38 15 as provided in this section. 38 16 2. There is appropriated from the grow Iowa fund 38 17 created in section 15G.107, if enacted by 2003 Iowa 38 18 Acts, House File 692 or another Act, to the department 38 19 of economic development for the fiscal period 38 20 beginning July 1, 2003, and ending June 30, 2006, the 38 21 following amounts to be used for funding of job 38 22 retention programs and agreements authorized by the 38 23 department and participating community colleges as 38 24 provided in this section: 38 25 a. One million dollars for the fiscal year 38 26 beginning July 1, 2003. 38 27 b. One million dollars for the fiscal year 38 28 beginning July 1, 2004. 38 29 c. One million dollars for the fiscal year 38 30 beginning July 1, 2005. 38 31 3. Notwithstanding section 8.33, moneys that 38 32 remain unexpended at the end of a fiscal year shall 38 33 not revert to any fund but shall remain available for 38 34 expenditure for the designated purposes during the 38 35 succeeding fiscal year. 38 36 4. The department of economic development shall 38 37 administer the allocation of moneys in the job 38 38 retention fund and shall administer the job retention 38 39 program. The department shall adopt rules pursuant to 38 40 chapter 17A necessary for the administration of this 38 41 section. By January 15 of each year, the department 38 42 shall submit a written report to the general assembly 38 43 and the governor regarding the activities of the job 38 44 retention program during the previous calendar year. 38 45 5. A community college and the department may 38 46 enter into an agreement to establish a job retention 38 47 project. A job retention project agreement shall 38 48 include, but not be limited to, the following: 38 49 a. The date of the agreement. 38 50 b. The anticipated number of employees to be 39 1 trained. 39 2 c. The estimated cost of training. 39 3 d. A statement regarding the number of employees 39 4 employed by the participating business on the date of 39 5 the agreement which must equal at least the lesser of 39 6 one thousand employees or four percent or more of the 39 7 county's resident labor force based on the most recent 39 8 annual labor force statistics from the department of 39 9 workforce development. 39 10 e. A commitment that the participating business 39 11 shall invest at least fifteen million dollars to 39 12 retool the workplace and upgrade the facilities of the 39 13 participating business. 39 14 f. A commitment that the participating business 39 15 shall not move the business operation out of this 39 16 state or close the business operation for at least ten 39 17 years following the date of the agreement. 39 18 g. Other criteria established by the department of 39 19 economic development. 39 20 6. A job retention project agreement entered into 39 21 pursuant to this section must be approved by the board 39 22 of trustees of the applicable community college, the 39 23 department of economic development, and the 39 24 participating business. 39 25 Sec. 87. NEW SECTION. 260F.101 REPORTING. 39 26 A community college entering into an agreement 39 27 pursuant to this chapter shall submit an annual 39 28 written report by the end of each calendar year with 39 29 the grow Iowa board created in section 15G.102, if 39 30 enacted by 2003 Iowa Acts, House File 692 or another 39 31 Act. The report shall provide information regarding 39 32 how the agreement affects the achievement of the goals 39 33 and performance measures provided in section 15G.106, 39 34 if enacted by 2003 Iowa Acts, House File 692 or 39 35 another Act. 39 36 Sec. 88. Section 260G.3, subsection 2, Code 2003, 39 37 is amended to read as follows: 39 38 2. An agreement may include reasonable and 39 39 necessary provisions to implement the accelerated 39 40 career education program. If an agreement that 39 41 utilizes program job credits is entered into, the 39 42 community college and the employer shall notify the 39 43 department of revenue and finance as soon as possible. 39 44 The community college shall also file a copy of the 39 45 agreement with the department of economic development 39 46 as required in section 260G.4B. The agreement shall 39 47 provide for program costs, including deferred costs, 39 48 which may be paid from any of the following sources: 39 49 a. Program job credits which the employer receives 39 50 based on the number of program job positions agreed to 40 1 by the employer to be available under the agreement. 40 2 b. Cash or in-kind contributions by the employer 40 3 toward the program cost. At a minimum, the employer 40 4 contribution shall be twenty percent of the program 40 5 costs. 40 6 c. Tuition, student fees, or special charges fixed 40 7 by the board of directors to defray program costs. 40 8 d. Guarantee by the employer of payments to be 40 9 received under paragraphs "a" and "b". 40 10 e. Moneys from a workforce training and economic 40 11 development fund created in section 260C.18A, based on 40 12 the number of program job positions agreed to by the 40 13 employer to be available under the agreement, the 40 14 amount of which shall be calculated in the same manner 40 15 as the program job credits provided for in section 40 16 260G.4A. 40 17 Sec. 89. NEW SECTION. 260G.101 REPORTING. 40 18 A community college entering into an agreement 40 19 pursuant to this chapter shall submit an annual 40 20 written report by the end of each calendar year with 40 21 the grow Iowa board created in section 15G.102, if 40 22 enacted by 2003 Iowa Acts, House File 692 or another 40 23 Act. The report shall provide information regarding 40 24 how the agreement affects the achievement of the goals 40 25 and performance measures provided in section 15G.106, 40 26 if enacted by 2003 Iowa Acts, House File 692 or 40 27 another Act. 40 28 DIVISION IX 40 29 LOAN AND CREDIT GUARANTEE FUND 40 30 Sec. 90. NEW SECTION. 15E.227 LOAN AND CREDIT 40 31 GUARANTEE FUND. 40 32 1. A loan and credit guarantee fund is created and 40 33 established as a separate and distinct fund in the 40 34 state treasury. Moneys in the fund shall only be used 40 35 for purposes provided in this section. The moneys in 40 36 the fund are appropriated to the department to be used 40 37 for all of the following purposes: 40 38 a. Payment of claims pursuant to loan and credit 40 39 guarantee agreements entered into under this division. 40 40 b. Payment of administrative costs of the 40 41 department for actual and necessary administrative 40 42 expenses incurred by the department in administering 40 43 the program. 40 44 c. Purchase or buyout of superior or prior liens, 40 45 mortgages, or security interests. 40 46 2. Moneys in the loan and credit guarantee fund 40 47 shall consist of all of the following: 40 48 a. Moneys appropriated by the general assembly for 40 49 that purpose and any other moneys available to and 40 50 obtained or accepted by the department for placement 41 1 in the fund. 41 2 b. Proceeds from collateral assigned to the 41 3 department, fees for guarantees, gifts, and moneys 41 4 from any grant made to the fund by any federal agency. 41 5 c. Moneys appropriated from the grow Iowa fund 41 6 created in section 15G.107, if enacted by 2003 Iowa 41 7 Acts, House File 692 or another Act. 41 8 3. Moneys in the fund are not subject to section 41 9 8.33. Notwithstanding section 12C.7, interest or 41 10 earnings on the moneys in the fund shall be credited 41 11 to the fund. 41 12 4. a. The department shall only pledge moneys in 41 13 the loan and credit guarantee fund and not any other 41 14 moneys of the department. The department may pledge 41 15 an amount not to exceed a total of any of the 41 16 following amounts of moneys in the fund to assure the 41 17 repayment of loan and credit guarantees or other 41 18 extensions of credit made to or on behalf of qualified 41 19 businesses or targeted industry businesses for 41 20 eligible project costs. 41 21 (1) Two million five hundred thousand dollars for 41 22 the fiscal year beginning July 1, 2003. 41 23 (2) Seven million five hundred thousand dollars 41 24 for the fiscal year beginning July 1, 2004. 41 25 (3) Eight million five hundred seventy-five 41 26 thousand dollars for the fiscal year beginning July 1, 41 27 2005. 41 28 (4) Eleven million seventy-five thousand dollars 41 29 for the fiscal year beginning July 1, 2006. 41 30 (5) Thirteen million seventy-five thousand dollars 41 31 for the fiscal year beginning July 1, 2007. 41 32 (6) Thirty-five million seventy-five thousand 41 33 dollars for the fiscal year beginning July 1, 2008. 41 34 (7) Thirty-seven million five hundred seventy-five 41 35 thousand dollars for the fiscal year beginning July 1, 41 36 2009. 41 37 b. The department shall not pledge the credit or 41 38 taxing power of this state or any political 41 39 subdivision of this state or make debts payable out of 41 40 any moneys except for those in the loan and credit 41 41 guarantee fund. 41 42 DIVISION X 41 43 UNIVERSITY-BASED RESEARCH UTILIZATION 41 44 PROGRAM APPROPRIATION 41 45 Sec. 91. NEW SECTION. 262B.12 APPROPRIATION. 41 46 On July 1 of each year there is appropriated from 41 47 the general fund of the state to each university under 41 48 the control of the state board of regents, an amount 41 49 equal to the amount determined by the department of 41 50 economic development pursuant to section 262B.11, 42 1 subsection 4, paragraph "c", subparagraph (2), if 42 2 enacted by 2003 Iowa Acts, House File 692 or another 42 3 Act. 42 4 DIVISION XI 42 5 ENDOW IOWA TAX CREDIT 42 6 Sec. 92. NEW SECTION. 15E.305 ENDOW IOWA TAX 42 7 CREDIT. 42 8 1. For tax years beginning on or after January 1, 42 9 2003, a tax credit shall be allowed against the taxes 42 10 imposed in chapter 422, divisions II, III, and V, and 42 11 in chapter 432, and against the moneys and credits tax 42 12 imposed in section 533.24 equal to twenty percent of a 42 13 taxpayer's endowment gift to a qualified community 42 14 foundation. An individual may claim a tax credit 42 15 under this section of a partnership, limited liability 42 16 company, S corporation, estate, or trust electing to 42 17 have income taxed directly to the individual. The 42 18 amount claimed by the individual shall be based upon 42 19 the pro rata share of the individual's earnings from 42 20 the partnership, limited liability company, S 42 21 corporation, estate, or trust. A tax credit shall be 42 22 allowed only for an endowment gift made to a qualified 42 23 community foundation for a permanent endowment fund 42 24 established to benefit a charitable cause in this 42 25 state. Any tax credit in excess of the taxpayer's tax 42 26 liability for the tax year may be credited to the tax 42 27 liability for the following five years or until 42 28 depleted, whichever occurs first. A tax credit shall 42 29 not be carried back to a tax year prior to the tax 42 30 year in which the taxpayer claims the tax credit. 42 31 2. The aggregate amount of tax credits authorized 42 32 pursuant to this section shall not exceed a total of 42 33 two million dollars. The maximum amount of tax 42 34 credits granted to a taxpayer shall not exceed five 42 35 percent of the aggregate amount of tax credits 42 36 authorized. 42 37 3. A tax credit shall not be transferable to any 42 38 other taxpayer. 42 39 4. A tax credit shall not be authorized pursuant 42 40 to this section after December 31, 2005. 42 41 5. The department shall develop a system for 42 42 registration and authorization of tax credits under 42 43 this section and shall control the distribution of all 42 44 tax credits to taxpayers providing an endowment gift 42 45 subject to this section. The department shall adopt 42 46 administrative rules pursuant to chapter 17A for the 42 47 qualification and administration of endowment gifts. 42 48 Sec. 93. NEW SECTION. 422.11H ENDOW IOWA TAX 42 49 CREDIT. 42 50 The tax imposed under this division, less the 43 1 credits allowed under sections 422.12 and 422.12B, 43 2 shall be reduced by an endow Iowa tax credit 43 3 authorized pursuant to section 15E.305. 43 4 Sec. 94. Section 422.33, Code 2003, is amended by 43 5 adding the following new subsection: 43 6 NEW SUBSECTION. 14. The taxes imposed under this 43 7 division shall be reduced by an endow Iowa tax credit 43 8 authorized pursuant to section 15E.305. 43 9 Sec. 95. Section 422.60, Code 2003, is amended by 43 10 adding the following new subsection: 43 11 NEW SUBSECTION. 7. The taxes imposed under this 43 12 division shall be reduced by an endow Iowa tax credit 43 13 authorized pursuant to section 15E.305. 43 14 Sec. 96. NEW SECTION. 432.12D ENDOW IOWA TAX 43 15 CREDIT. 43 16 The tax imposed under this chapter shall be reduced 43 17 by an endow Iowa tax credit authorized pursuant to 43 18 section 15E.305. 43 19 Sec. 97. Section 533.24, Code 2003, is amended by 43 20 adding the following new unnumbered paragraph: 43 21 NEW UNNUMBERED PARAGRAPH. The moneys and credits 43 22 tax imposed under this section shall be reduced by an 43 23 endow Iowa tax credit authorized pursuant to section 43 24 15E.305. 43 25 Sec. 98. EFFECTIVE AND RETROACTIVE APPLICABILITY 43 26 DATES. This division of this Act, being deemed of 43 27 immediate importance, takes effect upon enactment and 43 28 is retroactively applicable to January 1, 2003, for 43 29 tax years beginning on or after that date. 43 30 DIVISION XII 43 31 REHABILITATION PROJECT TAX CREDITS 43 32 Sec. 99. Section 404A.4, subsection 4, Code 2003, 43 33 is amended to read as follows: 43 34 4. The total amount of tax credits that may be 43 35 approved for a fiscal year under this chapter shall 43 36 not exceed two million four hundred thousand dollars. 43 37 For the fiscal years beginning July 1, 2003, and July 43 38 1, 2004, an additional two million dollars of tax 43 39 credits may be approved each fiscal year for purposes 43 40 of projects located in cultural and entertainment 43 41 districts certified pursuant to section 303.3B, if 43 42 enacted by 2003 Iowa Acts, House File 692 or another 43 43 Act. Any of the additional tax credits allocated for 43 44 projects located in certified cultural and 43 45 entertainment districts that are not approved during a 43 46 fiscal year may be carried over to the succeeding 43 47 fiscal year. Tax credit certificates shall be issued 43 48 on the basis of the earliest awarding of 43 49 certifications of completion as provided in subsection 43 50 1. The departments of economic development and 44 1 revenue and finance shall each adopt rules to jointly 44 2 administer this subsection and shall provide by rule 44 3 for the method to be used to determine for which 44 4 fiscal year the tax credits are approved. 44 5 DIVISION XIII 44 6 STATE ASSISTANCE FOR EDUCATIONAL INFRASTRUCTURE FUND 44 7 Sec. 100. Section 8.57, subsection 5, Code 2003, 44 8 is amended by adding the following new paragraph: 44 9 NEW PARAGRAPH. f. There is appropriated from the 44 10 rebuild Iowa infrastructure fund to the state 44 11 assistance for educational infrastructure fund created 44 12 in 2003 Iowa Acts, House File 692 or another Act, for 44 13 each fiscal year of the fiscal period beginning July 44 14 1, 2004, and ending June 30, 2014, the amount of the 44 15 moneys in excess of the first forty-seven million 44 16 dollars credited to the rebuild Iowa infrastructure 44 17 fund during the fiscal year, not to exceed ten million 44 18 dollars. 44 19 Sec. 101. NEW SECTION. 292A.3A APPROPRIATION. 44 20 There is appropriated from the general fund of the 44 21 state from moneys credited to the general fund of the 44 22 state as a result of the state entering into the 44 23 streamlined sales and use tax agreement to the state 44 24 assistance for educational infrastructure fund created 44 25 in 2003 Iowa Acts, House File 692 or another Act, the 44 26 sum of five million dollars for each fiscal year of 44 27 the fiscal period beginning July 1, 2004, and ending 44 28 June 30, 2014. The appropriation in this section 44 29 shall be made after the appropriation from the same 44 30 source to the grow Iowa fund created in 2003 Iowa 44 31 Acts, House File 692 or another Act. For purposes of 44 32 this section, "moneys credited to the general fund of 44 33 the state as a result of entering into the streamlined 44 34 sales and use tax agreement" means the amount of sales 44 35 and use tax receipts credited to the general fund of 44 36 the state during a fiscal year that exceeds by two 44 37 percent or more the total sales and use tax receipts 44 38 credited to the general fund of the state during the 44 39 previous fiscal year. 44 40 DIVISION XIV 44 41 REPEALS 44 42 Sec. 102. The divisions of this Act designated 44 43 economic development appropriations, workforce-related 44 44 issues, loan and credit guarantee fund, university- 44 45 based research utilization program appropriation, 44 46 endow Iowa tax credit, and rehabilitation project tax 44 47 credits are repealed effective June 30, 2010. 44 48 DIVISION XV 44 49 STREAMLINED SALES AND USE TAXES 44 50 SUBCHAPTER I 45 1 DEFINITIONS 45 2 Sec. 103. NEW SECTION. 423.1 DEFINITIONS. 45 3 As used in this chapter the following words, terms, 45 4 and phrases have the meanings ascribed to them by this 45 5 section, except where the context clearly indicates 45 6 that a different meaning is intended: 45 7 1. "Agent" means a person appointed by a seller to 45 8 represent the seller before the member states. 45 9 2. "Agreement" means the streamlined sales and use 45 10 tax agreement authorized by subchapter IV of this 45 11 chapter to provide a mechanism for establishing and 45 12 maintaining a cooperative, simplified system for the 45 13 application and administration of sales and use taxes. 45 14 3. "Agricultural production" includes the 45 15 production of flowering, ornamental, or vegetable 45 16 plants in commercial greenhouses or otherwise, and 45 17 production from aquaculture. "Agricultural products" 45 18 includes flowering, ornamental, or vegetable plants 45 19 and those products of aquaculture. 45 20 4. "Business" includes any activity engaged in by 45 21 any person or caused to be engaged in by the person 45 22 with the object of gain, benefit, or advantage, either 45 23 direct or indirect. 45 24 5. "Certificate of title" means a certificate of 45 25 title issued for a vehicle or for manufactured housing 45 26 under chapter 321. 45 27 6. "Certified automated system" means software 45 28 certified under the agreement to calculate the tax 45 29 imposed by each jurisdiction on a transaction, 45 30 determine the amount of tax to remit to the 45 31 appropriate state, and maintain a record of the 45 32 transaction. 45 33 7. "Certified service provider" means an agent 45 34 certified under the agreement to perform all of a 45 35 seller's sales or use tax functions, other than the 45 36 seller's obligation to remit tax on its own purchases. 45 37 8. "Computer" means an electronic device that 45 38 accepts information in digital or similar form and 45 39 manipulates the information for a result based on a 45 40 sequence of instructions. 45 41 9. "Computer software" means a set of coded 45 42 instructions designed to cause a computer or automatic 45 43 data processing equipment to perform a task. 45 44 10. "Delivered electronically" means delivered to 45 45 the purchaser by means other than tangible storage 45 46 media. 45 47 11. "Delivery charges" means charges assessed by a 45 48 seller of personal property or services for 45 49 preparation and delivery to a location designated by 45 50 the purchaser of personal property or services 46 1 including, but not limited to, transportation, 46 2 shipping, postage, handling, crating, and packing 46 3 charges. 46 4 12. "Department" means the department of revenue 46 5 and finance. 46 6 13. "Direct mail" means printed material delivered 46 7 or distributed by United States mail or other delivery 46 8 service to a mass audience or to addressees on a 46 9 mailing list provided by the purchaser or at the 46 10 direction of the purchaser when the cost of the items 46 11 is not billed directly to the recipients. "Direct 46 12 mail" includes tangible personal property supplied 46 13 directly or indirectly by the purchaser to the direct 46 14 mail seller for inclusion in the package containing 46 15 the printed material. "Direct mail" does not include 46 16 multiple items of printed material delivered to a 46 17 single address. 46 18 14. "Director" means the director of revenue and 46 19 finance. 46 20 15. "Electronic" means relating to technology 46 21 having electrical, digital, magnetic, wireless, 46 22 optical, electromagnetic, or similar capabilities. 46 23 16. "Farm deer" means the same as defined in 46 24 section 189A.2. 46 25 17. "Farm machinery and equipment" means machinery 46 26 and equipment used in agricultural production. 46 27 18. "First use of a service". A "first use of a 46 28 service" occurs, for the purposes of this chapter, 46 29 when a service is rendered, furnished, or performed in 46 30 Iowa or if rendered, furnished, or performed outside 46 31 of Iowa, when the product or result of the service is 46 32 used in Iowa. 46 33 19. "Goods, wares, or merchandise" means the same 46 34 as tangible personal property. 46 35 20. "Governing board" means the group comprised of 46 36 representatives of the member states of the agreement 46 37 which is created by the agreement to be responsible 46 38 for the agreement's administration and operation. 46 39 21. "Installed purchase price" is the amount 46 40 charged, valued in money whether paid in money or 46 41 otherwise, by a building contractor to convert 46 42 manufactured housing from tangible personal property 46 43 into realty. "Installed purchase price" includes, but 46 44 is not limited to, amounts charged for installing a 46 45 foundation and electrical and plumbing hookups. 46 46 "Installed purchase price" excludes any amount charged 46 47 for landscaping in connection with the conversion. 46 48 22. "Lease or rental". 46 49 a. "Lease or rental" means any transfer of 46 50 possession or control of tangible personal property 47 1 for a fixed or indeterminate term for consideration. 47 2 A "lease or rental" may include future options to 47 3 purchase or extend. 47 4 b. "Lease or rental" includes agreements covering 47 5 motor vehicles and trailers when the amount of 47 6 consideration may be increased or decreased by 47 7 reference to the amount realized upon sale or 47 8 disposition of the property as defined in 26 U.S.C. } 47 9 7701(h)(1). 47 10 c. "Lease or rental" does not include any of the 47 11 following: 47 12 (1) A transfer of possession or control of 47 13 property under a security agreement or deferred 47 14 payment plan that requires the transfer of title upon 47 15 completion of the required payments. 47 16 (2) A transfer of possession or control of 47 17 property under an agreement that requires the transfer 47 18 of title upon completion of required payments, and 47 19 payment of any option price does not exceed the 47 20 greater of one hundred dollars or one percent of the 47 21 total required payments. 47 22 (3) Providing tangible personal property along 47 23 with an operator for a fixed or indeterminate period 47 24 of time. A condition of this exclusion is that the 47 25 operator is necessary for the equipment to perform as 47 26 designed. For the purpose of this subparagraph, an 47 27 operator must do more than maintain, inspect, or set 47 28 up the tangible personal property. 47 29 d. This definition shall be used for sales and use 47 30 tax purposes regardless of whether a transaction is 47 31 characterized as a lease or rental under generally 47 32 accepted accounting principles, the Internal Revenue 47 33 Code, the Uniform Commercial Code, or other provisions 47 34 of federal, state, or local law. 47 35 23. "Livestock" includes but is not limited to an 47 36 animal classified as an ostrich, rhea, emu, bison, or 47 37 farm deer. 47 38 24. "Manufactured housing" means "manufactured 47 39 home" as defined in section 321.1. 47 40 25. "Member state" is any state which has signed 47 41 the agreement. 47 42 26. "Mobile home" means "manufactured or mobile 47 43 home" as defined in section 321.1. 47 44 27. "Model 1 seller" is a seller that has selected 47 45 a certified service provider as its agent to perform 47 46 all the seller's sales and use tax functions, other 47 47 than the seller's obligation to remit tax on its own 47 48 purchases. 47 49 28. "Model 2 seller" is a seller that has selected 47 50 a certified automated system to perform part of its 48 1 sales and use tax functions, but retains 48 2 responsibility for remitting the tax. 48 3 29. "Model 3 seller" is a seller that has sales in 48 4 at least five member states, has total annual sales 48 5 revenue of at least five hundred million dollars, has 48 6 a proprietary system that calculates the amount of tax 48 7 due each jurisdiction, and has entered into a 48 8 performance agreement with the member states that 48 9 establishes a tax performance standard for the seller. 48 10 As used in this definition, a "seller" includes an 48 11 affiliated group of sellers using the same proprietary 48 12 system. 48 13 30. "Nonresidential commercial operations" means 48 14 industrial, commercial, mining, or agricultural 48 15 operations, whether for profit or not, but does not 48 16 include apartment complexes or mobile home parks. 48 17 31. "Not registered under the agreement" means 48 18 lack of registration by a seller with the member 48 19 states under the central registration system 48 20 referenced in section 423.11, subsection 4. 48 21 32. "Person" means an individual, trust, estate, 48 22 fiduciary, partnership, limited liability company, 48 23 limited liability partnership, corporation, or any 48 24 other legal entity. 48 25 33. "Place of business" means any warehouse, 48 26 store, place, office, building, or structure where 48 27 goods, wares, or merchandise are offered for sale at 48 28 retail or where any taxable amusement is conducted, or 48 29 each office where gas, water, heat, communication, or 48 30 electric services are offered for sale at retail. 48 31 When a retailer or amusement operator sells 48 32 merchandise by means of vending machines or operates 48 33 music or amusement devices by coin-operated machines 48 34 at more than one location within the state, the 48 35 office, building, or place where the books, papers, 48 36 and records of the taxpayer are kept shall be deemed 48 37 to be the taxpayer's place of business. 48 38 34. "Prewritten computer software" includes 48 39 software designed and developed by the author or other 48 40 creator to the specifications of a specific purchaser 48 41 when it is sold to a person other than the purchaser. 48 42 The combining of two or more prewritten computer 48 43 software programs or prewritten portions of prewritten 48 44 programs does not cause the combination to be other 48 45 than prewritten computer software. "Prewritten 48 46 computer software" also means computer software, 48 47 including prewritten upgrades, which is not designed 48 48 and developed by the author or other creator to the 48 49 specifications of a specific purchaser. 48 50 When a person modifies or enhances computer 49 1 software of which the person is not the author or 49 2 creator, the person shall be deemed to be the author 49 3 or creator only of such person's modifications or 49 4 enhancements. Prewritten computer software or a 49 5 prewritten portion of the prewritten software that is 49 6 modified or enhanced to any degree, when such 49 7 modification or enhancement is designed and developed 49 8 to the specifications of a specific purchaser, remains 49 9 prewritten computer software. However, when there is 49 10 a reasonable, separately stated charge or an invoice 49 11 or other statement of the price given to the purchaser 49 12 for such modification or enhancement, such 49 13 modification or enhancement shall not constitute 49 14 prewritten computer software. 49 15 35. "Property purchased for resale in connection 49 16 with the performance of a service" means property 49 17 which is purchased for resale in connection with the 49 18 rendition, furnishing, or performance of a service by 49 19 a person who renders, furnishes, or performs the 49 20 service if all of the following occur: 49 21 a. The provider and user of the service intend 49 22 that a sale of the property will occur. 49 23 b. The property is transferred to the user of the 49 24 service in connection with the performance of the 49 25 service in a form or quantity capable of a fixed or 49 26 definite price value. 49 27 c. The sale is evidenced by a separate charge for 49 28 the identifiable piece of property. 49 29 36. "Purchase" means any transfer, exchange, or 49 30 barter, conditional or otherwise, in any manner or by 49 31 any means whatsoever, for a consideration. 49 32 37. "Purchase price" means the same as "sales 49 33 price" as defined in this section. 49 34 38. "Purchaser" is a person to whom a sale of 49 35 personal property is made or to whom a service is 49 36 furnished. 49 37 39. "Receive" and "receipt" mean any of the 49 38 following: 49 39 a. Taking possession of tangible personal 49 40 property. 49 41 b. Making first use of a service. 49 42 c. Taking possession or making first use of 49 43 digital goods, whichever comes first. 49 44 "Receive" and "receipt" do not include possession 49 45 by a shipping company on behalf of a purchaser. 49 46 40. "Registered under the agreement" means 49 47 registration by a seller under the central 49 48 registration system referenced in section 423.11, 49 49 subsection 4. 49 50 41. "Relief agency" means the state, any county, 50 1 city and county, city, or district thereof, or any 50 2 agency engaged in actual relief work. 50 3 42. "Retailer" means and includes every person 50 4 engaged in the business of selling tangible personal 50 5 property or taxable services at retail, or the 50 6 furnishing of gas, electricity, water, or 50 7 communication service, and tickets or admissions to 50 8 places of amusement and athletic events or operating 50 9 amusement devices or other forms of commercial 50 10 amusement from which revenues are derived. However, 50 11 when in the opinion of the director it is necessary 50 12 for the efficient administration of this chapter to 50 13 regard any salespersons, representatives, truckers, 50 14 peddlers, or canvassers as agents of the dealers, 50 15 distributors, supervisors, employers, or persons under 50 16 whom they operate or from whom they obtain tangible 50 17 personal property sold by them irrespective of whether 50 18 or not they are making sales on their own behalf or on 50 19 behalf of such dealers, distributors, supervisors, 50 20 employers, or persons, the director may so regard 50 21 them, and may regard such dealers, distributors, 50 22 supervisors, employers, or persons as retailers for 50 23 the purposes of this chapter. "Retailer" includes a 50 24 seller obligated to collect sales or use tax. 50 25 43. "Retailer maintaining a place of business in 50 26 this state" or any like term includes any retailer 50 27 having or maintaining within this state, directly or 50 28 by a subsidiary, an office, distribution house, sales 50 29 house, warehouse, or other place of business, or any 50 30 representative operating within this state under the 50 31 authority of the retailer or its subsidiary, 50 32 irrespective of whether that place of business or 50 33 representative is located here permanently or 50 34 temporarily, or whether the retailer or subsidiary is 50 35 admitted to do business within this state pursuant to 50 36 chapter 490. 50 37 44. "Retailers who are not model sellers" means 50 38 all retailers other than model 1, model 2, or model 3 50 39 sellers. 50 40 45. "Retail sale" or "sale at retail" means any 50 41 sale, lease, or rental for any purpose other than 50 42 resale, sublease, or subrent. 50 43 46. "Sales" or "sale" means any transfer, 50 44 exchange, or barter, conditional or otherwise, in any 50 45 manner or by any means whatsoever, for consideration. 50 46 47. "Sales price" applies to the measure subject 50 47 to sales tax. 50 48 a. "Sales price" means the total amount of 50 49 consideration, including cash, credit, property, and 50 50 services, for which personal property or services are 51 1 sold, leased, or rented, valued in money, whether 51 2 received in money or otherwise, without any deduction 51 3 for any of the following: 51 4 (1) The seller's cost of the property sold. 51 5 (2) The cost of materials used, labor or service 51 6 cost, interest, losses, all costs of transportation to 51 7 the seller, all taxes imposed on the seller, and any 51 8 other expenses of the seller. 51 9 (3) Charges by the seller for any services 51 10 necessary to complete the sale, other than delivery 51 11 and installation charges. 51 12 (4) Delivery charges. 51 13 (5) Installation charges. 51 14 (6) The value of exempt personal property given to 51 15 the purchaser where taxable and exempt personal 51 16 property have been bundled together and sold by the 51 17 seller as a single product or piece of merchandise. 51 18 (7) Credit for any trade-in authorized by section 51 19 423.3, subsection 58. 51 20 b. "Sales price" does not include: 51 21 (1) Discounts, including cash, term, or coupons 51 22 that are not reimbursed by a third party that are 51 23 allowed by a seller and taken by a purchaser on a 51 24 sale. 51 25 (2) Interest, financing, and carrying charges from 51 26 credit extended on the sale of personal property or 51 27 services, if the amount is separately stated on the 51 28 invoice, bill of sale, or similar document given to 51 29 the purchaser. 51 30 (3) Any taxes legally imposed directly on the 51 31 consumer that are separately stated on the invoice, 51 32 bill of sale, or similar document given to the 51 33 purchaser. 51 34 (4) The amounts received for charges included in 51 35 paragraph "a", subparagraphs (3) through (7), if they 51 36 are separately contracted for and separately stated on 51 37 the invoice, billing, or similar document given to the 51 38 purchaser. 51 39 48. "Sales tax" means the tax levied under 51 40 subchapter II of this chapter. 51 41 49. "Seller" means any person making sales, 51 42 leases, or rentals of personal property or services. 51 43 50. "Services" means all acts or services 51 44 rendered, furnished, or performed, other than services 51 45 used in processing of tangible personal property for 51 46 use in retail sales or services, for an employer, as 51 47 defined in section 422.4, subsection 3, for a valuable 51 48 consideration by any person engaged in any business or 51 49 occupation specifically enumerated in section 423.2. 51 50 The tax shall be due and collectible when the service 52 1 is rendered, furnished, or performed for the ultimate 52 2 user of the service. 52 3 51. "Services used in the processing of tangible 52 4 personal property" includes the reconditioning or 52 5 repairing of tangible personal property of the type 52 6 normally sold in the regular course of the retailer's 52 7 business and which is held for sale. 52 8 52. "State" means any state of the United States 52 9 and the District of Columbia. 52 10 53. "System" means the central electronic 52 11 registration system maintained by Iowa and other 52 12 states which are signatories to the agreement. 52 13 54. "Tangible personal property" means personal 52 14 property that can be seen, weighed, measured, felt, or 52 15 touched, or that is in any other manner perceptible to 52 16 the senses. "Tangible personal property" includes 52 17 electricity, water, gas, steam, and prewritten 52 18 computer software. 52 19 55. "Taxpayer" includes any person who is subject 52 20 to a tax imposed by this chapter, whether acting on 52 21 the person's own behalf or as a fiduciary. 52 22 56. "Trailer" shall mean every trailer, as is now 52 23 or may be hereafter so defined by chapter 321, which 52 24 is required to be registered or is subject only to the 52 25 issuance of a certificate of title under chapter 321. 52 26 57. "Use" means and includes the exercise by any 52 27 person of any right or power over tangible personal 52 28 property incident to the ownership of that property. 52 29 A retailer's or building contractor's sale of 52 30 manufactured housing for use in this state, whether in 52 31 the form of tangible personal property or of realty, 52 32 is a use of that property for the purposes of this 52 33 chapter. 52 34 58. "Use tax" means the tax levied under 52 35 subchapter III of this chapter for which the retailer 52 36 collects and remits tax to the department. 52 37 59. "User" means the immediate recipient of the 52 38 services who is entitled to exercise a right of power 52 39 over the product of such services. 52 40 60. "Value of services" means the price to the 52 41 user exclusive of any direct tax imposed by the 52 42 federal government or by this chapter. 52 43 61. "Vehicles subject to registration" means any 52 44 vehicle subject to registration pursuant to section 52 45 321.18. 52 46 SUBCHAPTER II 52 47 SALES TAX 52 48 Sec. 104. NEW SECTION. 423.2 TAX IMPOSED. 52 49 1. There is imposed a tax of five percent upon the 52 50 sales price of all sales of tangible personal 53 1 property, consisting of goods, wares, or merchandise, 53 2 sold at retail in the state to consumers or users 53 3 except as otherwise provided in this subchapter. 53 4 a. For the purposes of this subchapter, sales of 53 5 the following services are treated as if they were 53 6 sales of tangible personal property: 53 7 (1) Sales of engraving, photography, retouching, 53 8 printing, and binding services. 53 9 (2) Sales of vulcanizing, recapping, and 53 10 retreading services. 53 11 (3) Sales of prepaid telephone calling cards and 53 12 prepaid authorization numbers. 53 13 (4) Sales of optional service or warranty 53 14 contracts, except residential service contracts 53 15 regulated under chapter 523C, which provide for the 53 16 furnishing of labor and materials and require the 53 17 furnishing of any taxable service enumerated under 53 18 this section. The sales price is subject to tax even 53 19 if some of the services furnished are not enumerated 53 20 under this section. Additional sales, services, or 53 21 use taxes shall not be levied on services, parts, or 53 22 labor provided under optional service or warranty 53 23 contracts which are subject to tax under this 53 24 subsection. 53 25 If the optional service or warranty contract is a 53 26 computer software maintenance or support service 53 27 contract and there is no separately stated fee for the 53 28 taxable personal property or for the nontaxable 53 29 service, the tax imposed by this subsection shall be 53 30 imposed on fifty percent of the sales price from the 53 31 sale of such contract. If the contract provides for 53 32 technical support services only, no tax shall be 53 33 imposed under this subsection. The provisions of this 53 34 subparagraph (4) also apply to the use tax. 53 35 (5) Renting of rooms, apartments, or sleeping 53 36 quarters in a hotel, motel, inn, public lodging house, 53 37 rooming house, mobile home which is tangible personal 53 38 property, or tourist court, or in any place where 53 39 sleeping accommodations are furnished to transient 53 40 guests for rent, whether with or without meals. 53 41 "Renting" and "rent" include any kind of direct or 53 42 indirect charge for such rooms, apartments, or 53 43 sleeping quarters, or their use. However, the tax 53 44 does not apply to the sales price from the renting of 53 45 a room, apartment, or sleeping quarters while rented 53 46 by the same person for a period of more than thirty- 53 47 one consecutive days. 53 48 b. Sales of building materials, supplies, and 53 49 equipment to owners, contractors, subcontractors, or 53 50 builders for the erection of buildings or the 54 1 alteration, repair, or improvement of real property 54 2 are retail sales of tangible personal property in 54 3 whatever quantity sold. Where the owner, contractor, 54 4 subcontractor, or builder is also a retailer holding a 54 5 retail sales tax permit and transacting retail sales 54 6 of building materials, supplies, and equipment, the 54 7 person shall purchase such items of tangible personal 54 8 property without liability for the tax if such 54 9 property will be subject to the tax at the time of 54 10 resale or at the time it is withdrawn from inventory 54 11 for construction purposes. The sales tax shall be due 54 12 in the reporting period when the materials, supplies, 54 13 and equipment are withdrawn from inventory for 54 14 construction purposes or when sold at retail. The tax 54 15 shall not be due when materials are withdrawn from 54 16 inventory for use in construction outside of Iowa and 54 17 the tax shall not apply to tangible personal property 54 18 purchased and consumed by the manufacturer as building 54 19 materials in the performance by the manufacturer or 54 20 its subcontractor of construction outside of Iowa. 54 21 The sale of carpeting is not a sale of building 54 22 materials. The sale of carpeting to owners, 54 23 contractors, subcontractors, or builders shall be 54 24 treated as the sale of ordinary tangible personal 54 25 property and subject to the tax imposed under this 54 26 subsection and the use tax. 54 27 c. The use within this state of tangible personal 54 28 property by the manufacturer thereof, as building 54 29 materials, supplies, or equipment, in the performance 54 30 of construction contracts in Iowa, shall, for the 54 31 purpose of this subchapter, be construed as a sale at 54 32 retail of tangible personal property by the 54 33 manufacturer who shall be deemed to be the consumer of 54 34 such tangible personal property. The tax shall be 54 35 computed upon the cost to the manufacturer of the 54 36 fabrication or production of the tangible personal 54 37 property. 54 38 2. A tax of five percent is imposed upon the sales 54 39 price of the sale or furnishing of gas, electricity, 54 40 water, heat, pay television service, and communication 54 41 service, including the sales price from such sales by 54 42 any municipal corporation or joint water utility 54 43 furnishing gas, electricity, water, heat, pay 54 44 television service, and communication service to the 54 45 public in its proprietary capacity, except as 54 46 otherwise provided in this subchapter, when sold at 54 47 retail in the state to consumers or users. 54 48 3. A tax of five percent is imposed upon the sales 54 49 price of all sales of tickets or admissions to places 54 50 of amusement, fairs, and athletic events except those 55 1 of elementary and secondary educational institutions. 55 2 A tax of five percent is imposed on the sales price of 55 3 an entry fee or like charge imposed solely for the 55 4 privilege of participating in an activity at a place 55 5 of amusement, fair, or athletic event unless the sales 55 6 price of tickets or admissions charges for observing 55 7 the same activity are taxable under this subchapter. 55 8 A tax of five percent is imposed upon that part of 55 9 private club membership fees or charges paid for the 55 10 privilege of participating in any athletic sports 55 11 provided club members. 55 12 4. A tax of five percent is imposed upon the sales 55 13 price derived from the operation of all forms of 55 14 amusement devices and games of skill, games of chance, 55 15 raffles, and bingo games as defined in chapter 99B, 55 16 operated or conducted within the state, the tax to be 55 17 collected from the operator in the same manner as for 55 18 the collection of taxes upon the sales price of 55 19 tickets or admission as provided in this section. 55 20 Nothing in this subsection shall legalize any games of 55 21 skill or chance or slot-operated devices which are now 55 22 prohibited by law. 55 23 The tax imposed under this subsection covers the 55 24 total amount from the operation of games of skill, 55 25 games of chance, raffles, and bingo games as defined 55 26 in chapter 99B, and musical devices, weighing 55 27 machines, shooting galleries, billiard and pool 55 28 tables, bowling alleys, pinball machines, slot- 55 29 operated devices selling merchandise not subject to 55 30 the general sales taxes and on the total amount from 55 31 devices or systems where prizes are in any manner 55 32 awarded to patrons and upon the receipts from fees 55 33 charged for participation in any game or other form of 55 34 amusement, and generally upon the sales price from any 55 35 source of amusement operated for profit, not specified 55 36 in this section, and upon the sales price from which 55 37 tax is not collected for tickets or admission, but tax 55 38 shall not be imposed upon any activity exempt from 55 39 sales tax under section 423.3, subsection 78. Every 55 40 person receiving any sales price from the sources 55 41 described in this section is subject to all provisions 55 42 of this subchapter relating to retail sales tax and 55 43 other provisions of this chapter as applicable. 55 44 5. There is imposed a tax of five percent upon the 55 45 sales price from the furnishing of services as defined 55 46 in section 423.1. 55 47 6. The sales price of any of the following 55 48 enumerated services is subject to the tax imposed by 55 49 subsection 5: alteration and garment repair; armored 55 50 car; vehicle repair; battery, tire, and allied; 56 1 investment counseling; service charges of all 56 2 financial institutions; barber and beauty; boat 56 3 repair; vehicle wash and wax; campgrounds; carpentry; 56 4 roof, shingle, and glass repair; dance schools and 56 5 dance studios; dating services; dry cleaning, 56 6 pressing, dyeing, and laundering; electrical and 56 7 electronic repair and installation; excavating and 56 8 grading; farm implement repair of all kinds; flying 56 9 service; furniture, rug, carpet, and upholstery repair 56 10 and cleaning; fur storage and repair; golf and country 56 11 clubs and all commercial recreation; gun and camera 56 12 repair; house and building moving; household 56 13 appliance, television, and radio repair; janitorial 56 14 and building maintenance or cleaning; jewelry and 56 15 watch repair; lawn care, landscaping, and tree 56 16 trimming and removal; limousine service, including 56 17 driver; machine operator; machine repair of all kinds; 56 18 motor repair; motorcycle, scooter, and bicycle repair; 56 19 oilers and lubricators; office and business machine 56 20 repair; painting, papering, and interior decorating; 56 21 parking facilities; pay television; pet grooming; pipe 56 22 fitting and plumbing; wood preparation; executive 56 23 search agencies; private employment agencies, 56 24 excluding services for placing a person in employment 56 25 where the principal place of employment of that person 56 26 is to be located outside of the state; reflexology; 56 27 security and detective services; sewage services for 56 28 nonresidential commercial operations; sewing and 56 29 stitching; shoe repair and shoeshine; sign 56 30 construction and installation; storage of household 56 31 goods, mini-storage, and warehousing of raw 56 32 agricultural products; swimming pool cleaning and 56 33 maintenance; tanning beds or salons; taxidermy 56 34 services; telephone answering service; test 56 35 laboratories, including mobile testing laboratories 56 36 and field testing by testing laboratories, and 56 37 excluding tests on humans or animals; termite, bug, 56 38 roach, and pest eradicators; tin and sheet metal 56 39 repair; Turkish baths, massage, and reducing salons, 56 40 excluding services provided by massage therapists 56 41 licensed under chapter 152C; water conditioning and 56 42 softening; weighing; welding; well drilling; wrapping, 56 43 packing, and packaging of merchandise other than 56 44 processed meat, fish, fowl, and vegetables; wrecking 56 45 service; wrecker and towing. 56 46 For the purposes of this subsection, the sales 56 47 price of a lease or rental includes rents, royalties, 56 48 and copyright and license fees. For the purposes of 56 49 this subsection, "financial institutions" means all 56 50 national banks, federally chartered savings and loan 57 1 associations, federally chartered savings banks, 57 2 federally chartered credit unions, banks organized 57 3 under chapter 524, savings and loan associations and 57 4 savings banks organized under chapter 534, and credit 57 5 unions organized under chapter 533. 57 6 7. a. A tax of five percent is imposed upon the 57 7 sales price from the sales, furnishing, or service of 57 8 solid waste collection and disposal service. 57 9 For purposes of this subsection, "solid waste" 57 10 means garbage, refuse, sludge from a water supply 57 11 treatment plant or air contaminant treatment facility, 57 12 and other discarded waste materials and sludges, in 57 13 solid, semisolid, liquid, or contained gaseous form, 57 14 resulting from nonresidential commercial operations, 57 15 but does not include auto hulks; street sweepings; 57 16 ash; construction debris; mining waste; trees; tires; 57 17 lead acid batteries; used oil; hazardous waste; animal 57 18 waste used as fertilizer; earthen fill, boulders, or 57 19 rock; foundry sand used for daily cover at a sanitary 57 20 landfill; sewage sludge; solid or dissolved material 57 21 in domestic sewage or other common pollutants in water 57 22 resources, such as silt, dissolved or suspended solids 57 23 in industrial waste water effluents or discharges 57 24 which are point sources subject to permits under 57 25 section 402 of the federal Water Pollution Control 57 26 Act, or dissolved materials in irrigation return 57 27 flows; or source, special nuclear, or by-product 57 28 material defined by the federal Atomic Energy Act of 57 29 1954. 57 30 A recycling facility that separates or processes 57 31 recyclable materials and that reduces the volume of 57 32 the waste by at least eighty-five percent is exempt 57 33 from the tax imposed by this subsection if the waste 57 34 exempted is collected and disposed of separately from 57 35 other solid waste. 57 36 b. A person who transports solid waste generated 57 37 by that person or another person without compensation 57 38 shall pay the tax imposed by this subsection at the 57 39 collection or disposal facility based on the disposal 57 40 charge or tipping fee. However, the costs of a 57 41 service or portion of a service to collect and manage 57 42 recyclable materials separated from solid waste by the 57 43 waste generator are exempt from the tax imposed by 57 44 this subsection. 57 45 8. a. A tax of five percent is imposed upon the 57 46 sales price from sales of bundled services contracts. 57 47 For purposes of this subsection, a "bundled services 57 48 contract" means an agreement providing for a 57 49 retailer's performance of services, one or more of 57 50 which is a taxable service enumerated in this section 58 1 and one or more of which is not, in return for a 58 2 consumer's or user's single payment for the 58 3 performance of the services, with no separate 58 4 statement to the consumer or user of what portion of 58 5 that payment is attributable to any one service which 58 6 is a part of the contract. 58 7 b. For purposes of the administration of the tax 58 8 on bundled services contracts, the director may enter 58 9 into agreements of limited duration with individual 58 10 retailers, groups of retailers, or organizations 58 11 representing retailers of bundled services contracts. 58 12 Such an agreement shall impose the tax rate only upon 58 13 that portion of the sales price from a bundled 58 14 services contract which is attributable to taxable 58 15 services provided under the contract. 58 16 9. A tax of five percent is imposed upon the sales 58 17 price from any mobile telecommunications service which 58 18 this state is allowed to tax by the provisions of the 58 19 federal Mobile Telecommunications Sourcing Act, Pub. 58 20 L. No. 106-252, 4 U.S.C. } 116 et seq. For purposes 58 21 of this subsection, taxes on mobile telecommunications 58 22 service, as defined under the federal Mobile 58 23 Telecommunications Sourcing Act that are deemed to be 58 24 provided by the customer's home service provider, 58 25 shall be paid to the taxing jurisdiction whose 58 26 territorial limits encompass the customer's place of 58 27 primary use, regardless of where the mobile 58 28 telecommunications service originates, terminates, or 58 29 passes through and shall in all other respects be 58 30 taxed in conformity with the federal Mobile 58 31 Telecommunications Sourcing Act. All other provisions 58 32 of the federal Mobile Telecommunications Sourcing Act 58 33 are adopted by the state of Iowa and incorporated into 58 34 this subsection by reference. With respect to mobile 58 35 telecommunications service under the federal Mobile 58 36 Telecommunications Sourcing Act, the director shall, 58 37 if requested, enter into agreements consistent with 58 38 the provisions of the federal Act. 58 39 10. All revenues arising under the operation of 58 40 the provisions of this section shall be deposited into 58 41 the general fund of the state. 58 42 Sec. 105. NEW SECTION. 423.3 EXEMPTIONS. 58 43 There is exempted from the provisions of this 58 44 subchapter and from the computation of the amount of 58 45 tax imposed by it the following: 58 46 1. The sales price from sales of tangible personal 58 47 property and services furnished which this state is 58 48 prohibited from taxing under the Constitution or laws 58 49 of the United States or under the Constitution of this 58 50 state. 59 1 2. The sales price of sales for resale of tangible 59 2 personal property or taxable services, or for resale 59 3 of tangible personal property in connection with the 59 4 furnishing of taxable services. 59 5 3. The sales price of agricultural breeding 59 6 livestock and domesticated fowl. 59 7 4. The sales price of commercial fertilizer. 59 8 5. The sales price of agricultural limestone, 59 9 herbicide, pesticide, insecticide, including 59 10 adjuvants, surfactants, and other products directly 59 11 related to the application enhancement of those 59 12 products, food, medication, or agricultural drain 59 13 tile, including installation of agricultural drain 59 14 tile, any of which are to be used in disease control, 59 15 weed control, insect control, or health promotion of 59 16 plants or livestock produced as part of agricultural 59 17 production for market. 59 18 6. The sales price of tangible personal property 59 19 which will be consumed as fuel in creating heat, 59 20 power, or steam for grain drying, or for providing 59 21 heat or cooling for livestock buildings or for 59 22 greenhouses or buildings or parts of buildings 59 23 dedicated to the production of flowering, ornamental, 59 24 or vegetable plants intended for sale in the ordinary 59 25 course of business, or for use in cultivation of 59 26 agricultural products by aquaculture, or in implements 59 27 of husbandry engaged in agricultural production. 59 28 7. The sales price of services furnished by 59 29 specialized flying implements of husbandry used for 59 30 agricultural aerial spraying. 59 31 8. The sales price exclusive of services of farm 59 32 machinery and equipment, including auxiliary 59 33 attachments which improve the performance, safety, 59 34 operation, or efficiency of the machinery and 59 35 equipment and replacement parts, if the following 59 36 conditions are met: 59 37 a. The farm machinery and equipment shall be 59 38 directly and primarily used in production of 59 39 agricultural products. 59 40 b. The farm machinery and equipment shall 59 41 constitute self-propelled implements or implements 59 42 customarily drawn or attached to self-propelled 59 43 implements or the farm machinery or equipment is a 59 44 grain dryer. 59 45 c. The replacement part is essential to any repair 59 46 or reconstruction necessary to the farm machinery's or 59 47 equipment's exempt use in the production of 59 48 agricultural products. 59 49 Vehicles subject to registration, as defined in 59 50 section 423.1, or replacement parts for such vehicles, 60 1 are not eligible for this exemption. 60 2 9. The sales price of wood chips, sawdust, hay, 60 3 straw, paper, or other materials used for bedding in 60 4 the production of agricultural livestock or fowl. 60 5 10. The sales price of gas, electricity, water, or 60 6 heat to be used in implements of husbandry engaged in 60 7 agricultural production. 60 8 11. The sales price exclusive of services of farm 60 9 machinery and equipment, including auxiliary 60 10 attachments which improve the performance, safety, 60 11 operation, or efficiency of the machinery and 60 12 equipment and replacement parts, if all of the 60 13 following conditions are met: 60 14 a. The implement, machinery, or equipment is 60 15 directly and primarily used in livestock or dairy 60 16 production, aquaculture production, or the production 60 17 of flowering, ornamental, or vegetable plants. 60 18 b. The implement is not a self-propelled implement 60 19 or implement customarily drawn or attached to self- 60 20 propelled implements. 60 21 c. The replacement part is essential to any repair 60 22 or reconstruction necessary to the farm machinery's or 60 23 equipment's exempt use in livestock or dairy 60 24 production, aquaculture production, or the production 60 25 of flowering, ornamental, or vegetable plants. 60 26 12. The sales price, exclusive of services, from 60 27 sales of irrigation equipment used in farming 60 28 operations. 60 29 13. The sales price from the sale or rental of 60 30 irrigation equipment, whether installed above or below 60 31 ground, to a contractor or farmer if the equipment 60 32 will be primarily used in agricultural operations. 60 33 14. The sales price from the sales of horses, 60 34 commonly known as draft horses, when purchased for use 60 35 and so used as draft horses. 60 36 15. The sales price from the sale of property 60 37 which is a container, label, carton, pallet, packing 60 38 case, wrapping, baling wire, twine, bag, bottle, 60 39 shipping case, or other similar article or receptacle 60 40 sold for use in agricultural, livestock, or dairy 60 41 production. 60 42 16. The sales price from the sale of feed and feed 60 43 supplements and additives when used for consumption by 60 44 farm deer or bison. 60 45 17. The sales price of all goods, wares, or 60 46 merchandise, or services, used for educational 60 47 purposes sold to any private nonprofit educational 60 48 institution in this state. For the purpose of this 60 49 subsection, "educational institution" means an 60 50 institution which primarily functions as a school, 61 1 college, or university with students, faculty, and an 61 2 established curriculum. The faculty of an educational 61 3 institution must be associated with the institution 61 4 and the curriculum must include basic courses which 61 5 are offered every year. "Educational institution" 61 6 includes an institution primarily functioning as a 61 7 library. 61 8 18. The sales price of tangible personal property 61 9 sold, or of services furnished, to the following 61 10 nonprofit corporations: 61 11 a. Residential care facilities and intermediate 61 12 care facilities for persons with mental retardation 61 13 and residential care facilities for persons with 61 14 mental illness licensed by the department of 61 15 inspections and appeals under chapter 135C. 61 16 b. Residential facilities licensed by the 61 17 department of human services pursuant to chapter 237, 61 18 other than those maintained by individuals as defined 61 19 in section 237.1, subsection 7. 61 20 c. Rehabilitation facilities that provide 61 21 accredited rehabilitation services to persons with 61 22 disabilities which are accredited by the commission on 61 23 accreditation of rehabilitation facilities or the 61 24 accreditation council for services for persons with 61 25 mental retardation and other persons with 61 26 developmental disabilities and adult day care services 61 27 approved for reimbursement by the state department of 61 28 human services. 61 29 d. Community mental health centers accredited by 61 30 the department of human services pursuant to chapter 61 31 225C. 61 32 e. Community health centers as defined in 42 61 33 U.S.C. } 254(c) and migrant health centers as defined 61 34 in 42 U.S.C. } 254(b). 61 35 19. The sales price of tangible personal property 61 36 sold to a nonprofit organization which was organized 61 37 for the purpose of lending the tangible personal 61 38 property to the general public for use by them for 61 39 nonprofit purposes. 61 40 20. The sales price of tangible personal property 61 41 sold, or of services furnished, to nonprofit legal aid 61 42 organizations. 61 43 21. The sales price of goods, wares, or 61 44 merchandise, or of services, used for educational, 61 45 scientific, historic preservation, or aesthetic 61 46 purpose sold to a nonprofit private museum. 61 47 22. The sales price from sales of goods, wares, or 61 48 merchandise, or from services furnished, to a 61 49 nonprofit private art center to be used in the 61 50 operation of the art center. 62 1 23. The sales price of tangible personal property 62 2 sold, or of services furnished, by a fair society 62 3 organized under chapter 174. 62 4 24. The sales price from services furnished by the 62 5 notification center established pursuant to section 62 6 480.3, and the vendor selected pursuant to section 62 7 480.3 to provide the notification service. 62 8 25. The sales price of food and beverages sold for 62 9 human consumption by a nonprofit organization which 62 10 principally promotes a food or beverage product for 62 11 human consumption produced, grown, or raised in this 62 12 state and whose income is exempt from federal taxation 62 13 under section 501(c) of the Internal Revenue Code. 62 14 26. The sales price of tangible personal property 62 15 sold, or of services furnished, to a statewide 62 16 nonprofit organ procurement organization, as defined 62 17 in section 142C.2. 62 18 27. The sales price of tangible personal property 62 19 sold, or of services furnished, to a nonprofit 62 20 hospital licensed pursuant to chapter 135B to be used 62 21 in the operation of the hospital. 62 22 28. The sales price of tangible personal property 62 23 sold, or of services furnished, to a freestanding 62 24 nonprofit hospice facility which operates a hospice 62 25 program as defined in 42 C.F.R., ch. IV, } 418.3, 62 26 which property or services are to be used in the 62 27 hospice program. 62 28 29. The sales price of all goods, wares, or 62 29 merchandise sold, or of services furnished, which are 62 30 used in the fulfillment of a written construction 62 31 contract with a nonprofit hospital licensed pursuant 62 32 to chapter 135B if all of the following apply: 62 33 a. The sales and delivery of the goods, wares, or 62 34 merchandise, or the services furnished occurred 62 35 between July 1, 1998, and December 31, 2001. 62 36 b. The written construction contract was entered 62 37 into prior to December 31, 1999, or bonds to fund the 62 38 construction were issued prior to December 31, 1999. 62 39 c. The sales or services were purchased by a 62 40 contractor as the agent for the hospital or were 62 41 purchased directly by the hospital. 62 42 30. The sales price of livestock ear tags sold by 62 43 a nonprofit organization whose income is exempt from 62 44 federal taxation under section 501(c)(6) of the 62 45 Internal Revenue Code where the proceeds are used in 62 46 bovine research programs selected or approved by such 62 47 organization. 62 48 31. The sales price of goods, wares, or 62 49 merchandise sold to and of services furnished, and 62 50 used for public purposes sold to a tax-certifying or 63 1 tax-levying body of the state or a governmental 63 2 subdivision of the state, including regional transit 63 3 systems, as defined in section 324A.1, the state board 63 4 of regents, department of human services, state 63 5 department of transportation, any municipally owned 63 6 solid waste facility which sells all or part of its 63 7 processed waste as fuel to a municipally owned public 63 8 utility, and all divisions, boards, commissions, 63 9 agencies, or instrumentalities of state, federal, 63 10 county, or municipal government which have no earnings 63 11 going to the benefit of an equity investor or 63 12 stockholder, except any of the following: 63 13 a. The sales price of goods, wares, or merchandise 63 14 sold to, or of services furnished, and used by or in 63 15 connection with the operation of any municipally owned 63 16 public utility engaged in selling gas, electricity, 63 17 heat, or pay television service to the general public. 63 18 b. The sales price of furnishing of sewage 63 19 services to a county or municipality on behalf of 63 20 nonresidential commercial operations. 63 21 c. The furnishing of solid waste collection and 63 22 disposal service to a county or municipality on behalf 63 23 of nonresidential commercial operations located within 63 24 the county or municipality. 63 25 The exemption provided by this subsection shall 63 26 also apply to all such sales of goods, wares, or 63 27 merchandise or of services furnished and subject to 63 28 use tax. 63 29 32. The sales price of tangible personal property 63 30 sold, or of services furnished, by a county or city. 63 31 This exemption does not apply to any of the following: 63 32 a. The tax specifically imposed under section 63 33 423.2 on the sales price from sales or furnishing of 63 34 gas, electricity, water, heat, pay television service, 63 35 or communication service to the public by a municipal 63 36 corporation in its proprietary capacity. 63 37 b. The sale or furnishing of solid waste 63 38 collection and disposal service to nonresidential 63 39 commercial operations. 63 40 c. The sale or furnishing of sewage service for 63 41 nonresidential commercial operations. 63 42 d. Fees paid to cities and counties for the 63 43 privilege of participating in any athletic sports. 63 44 33. The sales price of mementos and other items 63 45 relating to Iowa history and historic sites, the 63 46 general assembly, and the state capitol, sold by the 63 47 legislative service bureau and its legislative 63 48 information office on the premises of property under 63 49 the control of the legislative council, at the state 63 50 capitol, and on other state property. 64 1 34. The sales price from sales of mementos and 64 2 other items relating to Iowa history and historic 64 3 sites by the department of cultural affairs on the 64 4 premises of property under its control and at the 64 5 state capitol. 64 6 35. The sales price from sales or services 64 7 furnished by the state fair organized under chapter 64 8 173. 64 9 36. The sales price from sales of tangible 64 10 personal property or of the sale or furnishing of 64 11 electrical energy, natural or artificial gas, or 64 12 communication service to another state or political 64 13 subdivision of another state if the other state 64 14 provides a similar reciprocal exemption for this state 64 15 and political subdivision of this state. 64 16 37. The sales price of services on or connected 64 17 with new construction, reconstruction, alteration, 64 18 expansion, remodeling, or the services of a general 64 19 building contractor, architect, or engineer. 64 20 38. The sales price from the sale of building 64 21 materials, supplies, or equipment sold to rural water 64 22 districts organized under chapter 504A as provided in 64 23 chapter 357A and used for the construction of 64 24 facilities of a rural water district. 64 25 39. The sales price from "casual sales". 64 26 "Casual sales" means: 64 27 a. Sales of tangible personal property, or the 64 28 furnishing of services, of a nonrecurring nature, by 64 29 the owner, if the seller, at the time of the sale, is 64 30 not engaged for profit in the business of selling 64 31 tangible personal property or services taxed under 64 32 section 423.2. 64 33 b. The sale of all or substantially all of the 64 34 tangible personal property or services held or used by 64 35 a seller in the course of the seller's trade or 64 36 business for which the seller is required to hold a 64 37 sales tax permit when the seller sells or otherwise 64 38 transfers the trade or business to another person who 64 39 shall engage in a similar trade or business. 64 40 40. The sales price from the sale of automotive 64 41 fluids to a retailer to be used either in providing a 64 42 service which includes the installation or application 64 43 of the fluids in or on a motor vehicle, which service 64 44 is subject to section 423.2, subsection 6, or to be 64 45 installed in or applied to a motor vehicle which the 64 46 retailer intends to sell, which sale is subject to 64 47 section 423.26. For purposes of this subsection, 64 48 automotive fluids are all those which are refined, 64 49 manufactured, or otherwise processed and packaged for 64 50 sale prior to their installation in or application to 65 1 a motor vehicle. They include but are not limited to 65 2 motor oil and other lubricants, hydraulic fluids, 65 3 brake fluid, transmission fluid, sealants, 65 4 undercoatings, antifreeze, and gasoline additives. 65 5 41. The sales price from the rental of motion 65 6 picture films, video and audio tapes, video and audio 65 7 discs, records, photos, copy, scripts, or other media 65 8 used for the purpose of transmitting that which can be 65 9 seen, heard, or read, if either of the following 65 10 conditions are met: 65 11 a. The lessee imposes a charge for the viewing of 65 12 such media and the charge for the viewing is subject 65 13 to taxation under this subchapter or is subject to use 65 14 tax. 65 15 b. The lessee broadcasts the contents of such 65 16 media for public viewing or listening. 65 17 42. The sales price from the sale of tangible 65 18 personal property consisting of advertising material 65 19 including paper to a person in Iowa if that person or 65 20 that person's agent will, subsequent to the sale, send 65 21 that advertising material outside this state and the 65 22 material is subsequently used solely outside of Iowa. 65 23 For the purpose of this subsection, "advertising 65 24 material" means any brochure, catalog, leaflet, flyer, 65 25 order form, return envelope, or similar item used to 65 26 promote sales of property or services. 65 27 43. The sales price from the sale of property or 65 28 of services performed on property which the retailer 65 29 transfers to a carrier for shipment to a point outside 65 30 of Iowa, places in the United States mail or parcel 65 31 post directed to a point outside of Iowa, or 65 32 transports to a point outside of Iowa by means of the 65 33 retailer's own vehicles, and which is not thereafter 65 34 returned to a point within Iowa, except solely in the 65 35 course of interstate commerce or transportation. This 65 36 exemption shall not apply if the purchaser, consumer, 65 37 or their agent, other than a carrier, takes physical 65 38 possession of the property in Iowa. 65 39 44. The sales price from the sale of property 65 40 which is a container, label, carton, pallet, packing 65 41 case, wrapping paper, twine, bag, bottle, shipping 65 42 case, or other similar article or receptacle sold to 65 43 retailers or manufacturers for the purpose of 65 44 packaging or facilitating the transportation of 65 45 tangible personal property sold at retail or 65 46 transferred in association with the maintenance or 65 47 repair of fabric or clothing. 65 48 45. The sales price from sales or rentals to a 65 49 printer or publisher of the following: acetate; anti- 65 50 halation backing; antistatic spray; back lining; base 66 1 material used as a carrier for light sensitive 66 2 emulsions; blankets; blow-ups; bronze powder; carbon 66 3 tissue; codas; color filters; color separations; 66 4 contacts; continuous tone separations; creative art; 66 5 custom dies and die cutting materials; dampener 66 6 sleeves; dampening solution; design and styling; diazo 66 7 coating; dot etching; dot etching solutions; drawings; 66 8 drawsheets; driers; duplicate films or prints; 66 9 electronically digitized images; electrotypes; end 66 10 product of image modulation; engravings; etch 66 11 solutions; film; finished art or final art; fix; 66 12 fixative spray; flats; flying pasters; foils; 66 13 goldenrod paper; gum; halftones; illustrations; ink; 66 14 ink paste; keylines; lacquer; lasering images; 66 15 layouts; lettering; line negatives and positives; 66 16 linotypes; lithographic offset plates; magnesium and 66 17 zinc etchings; masking paper; masks; masters; mats; 66 18 mat service; metal toner; models and modeling; mylar; 66 19 negatives; nonoffset spray; opaque film process paper; 66 20 opaquing; padding compound; paper stock; photographic 66 21 materials: acids, plastic film, desensitizer 66 22 emulsion, exposure chemicals, fix, developers, and 66 23 paper; photography, day rate; photopolymer coating; 66 24 photographs; photostats; photo-display tape; 66 25 phototypesetter materials; ph-indicator sticks; 66 26 positives; press pack; printing cylinders; printing 66 27 plates, all types; process lettering; proof paper; 66 28 proofs and proof processes, all types; pumice powder; 66 29 purchased author alterations; purchased composition; 66 30 purchased phototypesetting; purchased stripping and 66 31 pasteups; red litho tape; reducers; roller covering; 66 32 screen tints; sketches; stepped plates; stereotypes; 66 33 strip types; substrate; tints; tissue overlays; 66 34 toners; transparencies; tympan; typesetting; 66 35 typography; varnishes; veloxes; wood mounts; and any 66 36 other items used in a like capacity to any of the 66 37 above enumerated items by the printer or publisher to 66 38 complete a finished product for sale at retail. 66 39 Expendable tools and supplies which are not enumerated 66 40 in this subsection are excluded from the exemption. 66 41 "Printer" means that portion of a person's business 66 42 engaged in printing that completes a finished product 66 43 for ultimate sale at retail or means that portion of a 66 44 person's business used to complete a finished printed 66 45 packaging material used to package a product for 66 46 ultimate sale at retail. "Printer" does not mean an 66 47 in-house printer who prints or copyrights its own 66 48 materials. 66 49 46. a. The sales price from the sale or rental of 66 50 computers, machinery, and equipment, including 67 1 replacement parts, and materials used to construct or 67 2 self-construct computers, machinery, and equipment if 67 3 such items are any of the following: 67 4 (1) Directly and primarily used in processing by a 67 5 manufacturer. 67 6 (2) Directly and primarily used to maintain the 67 7 integrity of the product or to maintain unique 67 8 environmental conditions required for either the 67 9 product or the computers, machinery, and equipment 67 10 used in processing by a manufacturer, including test 67 11 equipment used to control quality and specifications 67 12 of the product. 67 13 (3) Directly and primarily used in research and 67 14 development of new products or processes of 67 15 processing. 67 16 (4) Computers used in processing or storage of 67 17 data or information by an insurance company, financial 67 18 institution, or commercial enterprise. 67 19 (5) Directly and primarily used in recycling or 67 20 reprocessing of waste products. 67 21 (6) Pollution-control equipment used by a 67 22 manufacturer, including but not limited to that 67 23 required or certified by an agency of this state or of 67 24 the United States government. 67 25 b. The sales price from the sale of fuel used in 67 26 creating heat, power, steam, or for generating 67 27 electrical current, or from the sale of electricity, 67 28 consumed by computers, machinery, or equipment used in 67 29 an exempt manner described in paragraph "a", 67 30 subparagraph (1), (2), (3), (5), or (6). 67 31 c. The sales price from the sale or rental of the 67 32 following shall not be exempt from the tax imposed by 67 33 this subchapter: 67 34 (1) Hand tools. 67 35 (2) Point-of-sale equipment and computers. 67 36 (3) Industrial machinery, equipment, and 67 37 computers, including pollution-control equipment 67 38 within the scope of section 427A.1, subsection 1, 67 39 paragraphs "h" and "i". 67 40 (4) Vehicles subject to registration, except 67 41 vehicles subject to registration which are directly 67 42 and primarily used in recycling or reprocessing of 67 43 waste products. 67 44 d. As used in this subsection: 67 45 (1) "Commercial enterprise" includes businesses 67 46 and manufacturers conducted for profit and centers for 67 47 data processing services to insurance companies, 67 48 financial institutions, businesses, and manufacturers, 67 49 but excludes professions and occupations and nonprofit 67 50 organizations. 68 1 (2) "Financial institution" means as defined in 68 2 section 527.2. 68 3 (3) "Insurance company" means an insurer organized 68 4 or operating under chapter 508, 514, 515, 518, 518A, 68 5 519, or 520, or authorized to do business in Iowa as 68 6 an insurer or an insurance producer under chapter 68 7 522B. 68 8 (4) "Manufacturer" means as defined in section 68 9 428.20, but also includes contract manufacturers. A 68 10 contract manufacturer is a manufacturer that otherwise 68 11 falls within the definition of manufacturer under 68 12 section 428.20, except that a contract manufacturer 68 13 does not sell the tangible personal property the 68 14 contract manufacturer processes on behalf of other 68 15 manufacturers. A business engaged in activities 68 16 subsequent to the extractive process of quarrying or 68 17 mining, such as crushing, washing, sizing, or blending 68 18 of aggregate materials, is a manufacturer with respect 68 19 to these activities. 68 20 (5) "Processing" means a series of operations in 68 21 which materials are manufactured, refined, purified, 68 22 created, combined, or transformed by a manufacturer, 68 23 ultimately into tangible personal property. 68 24 Processing encompasses all activities commencing with 68 25 the receipt or producing of raw materials by the 68 26 manufacturer and ending at the point products are 68 27 delivered for shipment or transferred from the 68 28 manufacturer. Processing includes but is not limited 68 29 to refinement or purification of materials; treatment 68 30 of materials to change their form, context, or 68 31 condition; maintenance of the quality or integrity of 68 32 materials, components, or products; maintenance of 68 33 environmental conditions necessary for materials, 68 34 components, or products; quality control activities; 68 35 and construction of packaging and shipping devices, 68 36 placement into shipping containers or any type of 68 37 shipping devices or medium, and the movement of 68 38 materials, components, or products until shipment from 68 39 the processor. 68 40 (6) "Receipt or producing of raw materials" means 68 41 activities performed upon tangible personal property 68 42 only. With respect to raw materials produced from or 68 43 upon real estate, the receipt or producing of raw 68 44 materials is deemed to occur immediately following the 68 45 severance of the raw materials from the real estate. 68 46 47. The sales price from the furnishing of the 68 47 design and installation of new industrial machinery or 68 48 equipment, including electrical and electronic 68 49 installation. 68 50 48. The sales price from the sale of carbon 69 1 dioxide in a liquid, solid, or gaseous form, 69 2 electricity, steam, and other taxable services when 69 3 used by a manufacturer of food products to produce 69 4 marketable food products for human consumption, 69 5 including but not limited to treatment of material to 69 6 change its form, context, or condition, in order to 69 7 produce the food product, maintenance of quality or 69 8 integrity of the food product, changing or maintenance 69 9 of temperature levels necessary to avoid spoilage or 69 10 to hold the food product in marketable condition, 69 11 maintenance of environmental conditions necessary for 69 12 the safe or efficient use of machinery and material 69 13 used to produce the food product, sanitation and 69 14 quality control activities, formation of packaging, 69 15 placement into shipping containers, and movement of 69 16 the material or food product until shipment from the 69 17 building of manufacture. 69 18 49. The sales price of sales of electricity, 69 19 steam, or any taxable service when purchased and used 69 20 in the processing of tangible personal property 69 21 intended to be sold ultimately at retail. 69 22 50. The sales price of tangible personal property 69 23 sold for processing. Tangible personal property is 69 24 sold for processing within the meaning of this 69 25 subsection only when it is intended that the property 69 26 will, by means of fabrication, compounding, 69 27 manufacturing, or germination, become an integral part 69 28 of other tangible personal property intended to be 69 29 sold ultimately at retail; or for generating electric 69 30 current; or the property is a chemical, solvent, 69 31 sorbent, or reagent, which is directly used and is 69 32 consumed, dissipated, or depleted, in processing 69 33 tangible personal property which is intended to be 69 34 sold ultimately at retail or consumed in the 69 35 maintenance or repair of fabric or clothing, and which 69 36 may not become a component or integral part of the 69 37 finished product. The distribution to the public of 69 38 free newspapers or shoppers guides is a retail sale 69 39 for purposes of the processing exemption set out in 69 40 this subsection and in subsection 49. 69 41 51. The sales price from the sale of argon and 69 42 other similar gases to be used in the manufacturing 69 43 process. 69 44 52. The sales price from the sale of electricity 69 45 to water companies assessed for property tax pursuant 69 46 to sections 428.24, 428.26, and 428.28 which is used 69 47 solely for the purpose of pumping water from a river 69 48 or well. 69 49 53. The sales price from the sale of wind energy 69 50 conversion property to be used as an electric power 70 1 source and the sale of the materials used to 70 2 manufacture, install, or construct wind energy 70 3 conversion property used or to be used as an electric 70 4 power source. 70 5 For purposes of this subsection, "wind energy 70 6 conversion property" means any device, including, but 70 7 not limited to, a wind charger, windmill, wind 70 8 turbine, tower and electrical equipment, pad mount 70 9 transformers, power lines, and substation, which 70 10 converts wind energy to a form of usable energy. 70 11 54. The sales price from the sales of newspapers, 70 12 free newspapers, or shoppers guides and the printing 70 13 and publishing of such newspapers and shoppers guides, 70 14 and envelopes for advertising. 70 15 55. The sales price from the sale of motor fuel 70 16 and special fuel consumed for highway use or in 70 17 watercraft or aircraft where the fuel tax has been 70 18 imposed and paid and no refund has been or will be 70 19 allowed and the sales price from the sales of ethanol 70 20 blended gasoline, as defined in section 452A.2. 70 21 56. The sales price from all sales of food and 70 22 food ingredients. However, as used in this 70 23 subsection, "food" does not include alcoholic 70 24 beverages, candy, dietary supplements, food sold 70 25 through vending machines, prepared food, soft drinks, 70 26 and tobacco. 70 27 For the purposes of this subsection: 70 28 a. "Alcoholic beverages" means beverages that are 70 29 suitable for human consumption and contain one-half of 70 30 one percent or more of alcohol by volume. 70 31 b. "Candy" means a preparation of sugar, honey, or 70 32 other natural or artificial sweeteners in combination 70 33 with chocolate, fruits, nuts, or other ingredients or 70 34 flavorings in the form of bars, drops, or pieces. 70 35 Candy shall not include any preparation containing 70 36 flour and shall require no refrigeration. 70 37 c. "Dietary supplement" means any product, other 70 38 than tobacco, intended to supplement the diet that 70 39 contains one or more of the following dietary 70 40 ingredients: 70 41 (1) A vitamin. 70 42 (2) A mineral. 70 43 (3) An herb or other botanical. 70 44 (4) An amino acid. 70 45 (5) A dietary substance for use by humans to 70 46 supplement the diet by increasing the total dietary 70 47 intake. 70 48 (6) A concentrate, metabolite, constituent, 70 49 extract, or combination of any of the ingredients in 70 50 subparagraphs (1) through (5) that is intended for 71 1 ingestion in tablet, capsule, powder, softgel, gelcap, 71 2 or liquid form, or if not intended for ingestion in 71 3 such a form, is not represented as conventional food 71 4 and is not represented for use as a sole item of a 71 5 meal or of the diet; and is required to be labeled as 71 6 a dietary supplement, identifiable by the "supplement 71 7 facts" box found on the label and as required pursuant 71 8 to 21 C.F.R. } 101.36. 71 9 d. "Food and food ingredients" means substances, 71 10 whether in liquid, concentrated, solid, frozen, dried, 71 11 or dehydrated form, that are sold for ingestion or 71 12 chewing by humans and are consumed for their taste or 71 13 nutritional value. 71 14 e. "Food sold through vending machines" means food 71 15 dispensed from a machine or other mechanical device 71 16 that accepts payment, other than food which would be 71 17 qualified for exemption under subsection 57 if 71 18 purchased with a coupon described in subsection 57. 71 19 f. "Prepared food" means any of following: 71 20 (1) Food sold in a heated state or heated by the 71 21 seller, including food sold by a caterer. 71 22 (2) Two or more food ingredients mixed or combined 71 23 by the seller for sale as a single item. 71 24 (3) "Prepared food", for the purposes of this 71 25 paragraph, does not include food that is any of the 71 26 following: 71 27 (a) Only cut, repackaged, or pasteurized by the 71 28 seller. 71 29 (b) Eggs, fish, meat, poultry, and foods 71 30 containing these raw animal foods requiring cooking by 71 31 the consumer as recommended by the United States food 71 32 and drug administration in chapter 3, part 401.11 of 71 33 its food code, so as to prevent food borne illnesses. 71 34 (c) Bakery items sold by the seller which baked 71 35 them. The words "bakery items" includes but is not 71 36 limited to breads, rolls, buns, biscuits, bagels, 71 37 croissants, pastries, donuts, Danish, cakes, tortes, 71 38 pies, tarts, muffins, bars, cookies, and tortillas. 71 39 (d) Food sold without eating utensils provided by 71 40 the seller in an unheated state as a single item which 71 41 is priced by weight or volume. 71 42 (4) Food sold with eating utensils provided by the 71 43 seller, including plates, knives, forks, spoons, 71 44 glasses, cups, napkins, or straws. A plate does not 71 45 include a container or packaging used to transport 71 46 food. 71 47 g. "Soft drinks" means nonalcoholic beverages that 71 48 contain natural or artificial sweeteners. "Soft 71 49 drinks" does not include beverages that contain milk 71 50 or milk products; soy, rice, or similar milk 72 1 substitutes; or greater than fifty percent of 72 2 vegetable or fruit juice by volume. 72 3 f. "Tobacco" means cigarettes, cigars, chewing or 72 4 pipe tobacco, or any other item that contains tobacco. 72 5 57. The sales price from the sale of items 72 6 purchased with coupons issued under the federal Food 72 7 Stamp Act of 1977, 7 U.S.C. } 2011 et seq. 72 8 58. In transactions in which tangible personal 72 9 property is traded toward the sales price of other 72 10 tangible personal property, that portion of the sales 72 11 price which is not payable in money to the retailer is 72 12 exempted from the taxable amount if the following 72 13 conditions are met: 72 14 a. The tangible personal property traded to the 72 15 retailer is the type of property normally sold in the 72 16 regular course of the retailer's business. 72 17 b. The tangible personal property traded to the 72 18 retailer is intended by the retailer to be ultimately 72 19 sold at retail or is intended to be used by the 72 20 retailer or another in the remanufacturing of a like 72 21 item. 72 22 59. The sales price from the sale or rental of 72 23 prescription drugs or medical devices intended for 72 24 human use or consumption. 72 25 For the purposes of this subsection: 72 26 a. "Drug" means a compound, substance, or 72 27 preparation, and any component of a compound, 72 28 substance, or preparation, other than food and food 72 29 ingredients, dietary supplements, or alcoholic 72 30 beverages which is any of the following: 72 31 (1) Recognized in the official United States 72 32 pharmacopoeia, official homeopathic pharmacopoeia of 72 33 the United States, or official national formulary, and 72 34 supplement to any of them. 72 35 (2) Intended for use in the diagnosis, cure, 72 36 mitigation, treatment, or prevention of disease. 72 37 (3) Intended to affect the structure or any 72 38 function of the body. 72 39 b. "Medical device" means equipment or a supply, 72 40 intended to be prescribed by a practitioner, including 72 41 orthopedic or orthotic devices. However, "medical 72 42 device" also includes prosthetic devices, ostomy, 72 43 urological, and tracheostomy equipment and supplies, 72 44 and diabetic testing materials, hypodermic syringes 72 45 and needles, anesthesia trays, biopsy trays and biopsy 72 46 needles, cannula systems, catheter trays and invasive 72 47 catheters, dialyzers, drug infusion devices, fistula 72 48 sets, hemodialysis devices, insulin infusion devices, 72 49 intraocular lenses, irrigation solutions, intravenous 72 50 administering sets, solutions and stopcocks, myelogram 73 1 trays, nebulizers, small vein infusion kits, spinal 73 2 puncture trays, transfusion sets, venous blood sets, 73 3 and oxygen equipment, intended to be dispensed for 73 4 human use with or without a prescription to an 73 5 ultimate user. 73 6 c. "Practitioner" means a practitioner as defined 73 7 in section 155A.3, or a person licensed to prescribe 73 8 drugs. 73 9 d. "Prescription drug" means a drug intended to be 73 10 dispensed to an ultimate user pursuant to a 73 11 prescription drug order, formula, or recipe issued in 73 12 any form of oral, written, electronic, or other means 73 13 of transmission by a duly licensed practitioner, or 73 14 oxygen or insulin dispensed for human consumption with 73 15 or without a prescription drug order or medication 73 16 order. 73 17 e. "Prosthetic device" means a replacement, 73 18 corrective, or supportive device including repair and 73 19 replacement parts for the same worn on or in the body 73 20 to do any of the following: 73 21 (1) Artificially replace a missing portion of the 73 22 body. 73 23 (2) Prevent or correct physical deformity or 73 24 malfunction. 73 25 (3) Support a weak or deformed portion of the 73 26 body. 73 27 f. "Ultimate user" means an individual who has 73 28 lawfully obtained and possesses a prescription drug or 73 29 medical device for the individual's own use or for the 73 30 use of a member of the individual's household, or an 73 31 individual to whom a prescription drug or medical 73 32 device has been lawfully supplied, administered, 73 33 dispensed, or prescribed. 73 34 60. The sales price from services furnished by 73 35 aerial commercial and charter transportation services. 73 36 61. The sales price from the sale of raffle 73 37 tickets for a raffle licensed pursuant to section 73 38 99B.5. 73 39 62. The sales price from the sale of tangible 73 40 personal property which will be given as prizes to 73 41 players in games of skill, games of chance, raffles, 73 42 and bingo games as defined in chapter 99B. 73 43 63. The sales price from the sale of a modular 73 44 home, as defined in section 435.1, to the extent of 73 45 the portion of the purchase price of the modular home 73 46 which is not attributable to the cost of the tangible 73 47 personal property used in the processing of the 73 48 modular home. For purposes of this exemption, the 73 49 portion of the purchase price which is not 73 50 attributable to the cost of the tangible personal 74 1 property used in the processing of the modular home is 74 2 forty percent. 74 3 64. The sales price from charges paid to a 74 4 provider for access to on-line computer services. For 74 5 purposes of this subsection, "on-line computer 74 6 service" means a service that provides or enables 74 7 computer access by multiple users to the internet or 74 8 to other information made available through a computer 74 9 server. 74 10 65. The sales price from the sale or rental of 74 11 information services. "Information services" means 74 12 every business activity, process, or function by which 74 13 a seller or its agent accumulates, prepares, 74 14 organizes, or conveys data, facts, knowledge, 74 15 procedures, and like services to a buyer or its agent 74 16 of such information through any tangible or intangible 74 17 medium. Information accumulated, prepared, or 74 18 organized for a buyer or its agent is an information 74 19 service even though it may incorporate preexisting 74 20 components of data or other information. "Information 74 21 services" includes, but is not limited to, database 74 22 files, mailing lists, subscription files, market 74 23 research, credit reports, surveys, real estate 74 24 listings, bond rating reports, abstracts of title, bad 74 25 check lists, broadcasting rating services, wire 74 26 services, and scouting reports, or other similar 74 27 items. 74 28 66. The sales price of a sale at retail if the 74 29 substance of the transaction is delivered to the 74 30 purchaser digitally, electronically, or utilizing 74 31 cable, or by radio waves, microwaves, satellites, or 74 32 fiber optics. 74 33 67. a. The sales price from the sale of an 74 34 article of clothing designed to be worn on or about 74 35 the human body if all of the following apply: 74 36 (1) The sales price of the article is less than 74 37 one hundred dollars. 74 38 (2) The sale takes place during a period beginning 74 39 at 12:01 a.m. on the first Friday in August and ending 74 40 at midnight on the following Saturday. 74 41 b. This subsection does not apply to any of the 74 42 following: 74 43 (1) Sport or recreational equipment and protective 74 44 equipment. 74 45 (2) Clothing accessories or equipment. 74 46 (3) The rental of clothing. 74 47 c. For purposes of this subsection: 74 48 (1) "Clothing" means all human wearing apparel 74 49 suitable for general use. "Clothing" includes, but is 74 50 not limited to the following: aprons, household and 75 1 shop; athletic supporters; baby receiving blankets; 75 2 bathing suits and caps; beach capes and coats; belts 75 3 and suspenders; boots; coats and jackets; costumes; 75 4 diapers (children and adults, including disposable 75 5 diapers); earmuffs; footlets; formal wear; garters and 75 6 garter belts; girdles; gloves and mittens for general 75 7 use; hats and caps; hosiery; insoles for shoes; lab 75 8 coats; neckties; overshoes; pantyhose; rainwear; 75 9 rubber pants; sandals; scarves; shoes and shoelaces; 75 10 slippers; sneakers; socks and stockings; steel-toed 75 11 shoes; underwear; uniforms, athletic and nonathletic; 75 12 and wedding apparel. 75 13 "Clothing" does not include the following: belt 75 14 buckles sold separately; costume masks sold 75 15 separately; patches and emblems sold separately; 75 16 sewing equipment and supplies (including, but not 75 17 limited to, knitting needles, patterns, pins, 75 18 scissors, sewing machines, sewing needles, tape 75 19 measures, and thimbles); and sewing materials that 75 20 become part of clothing (including, but not limited 75 21 to, buttons, fabric, lace, thread, yarn, and zippers). 75 22 (2) "Clothing accessories or equipment" means 75 23 incidental items worn on the person or in conjunction 75 24 with clothing. "Clothing accessories or equipment" 75 25 includes, but is not limited to, the following: 75 26 briefcases; cosmetics; hair notions (including, but 75 27 not limited to, barrettes, hair bows, and hair nets); 75 28 handbags; handkerchiefs; jewelry; sunglasses, 75 29 nonprescription; umbrellas; wallets; watches; and wigs 75 30 and hairpieces. 75 31 (3) "Protective equipment" means items for human 75 32 wear and designed as protection for the wearer against 75 33 injury or disease or as protection against damage or 75 34 injury of other persons or property but not suitable 75 35 for general use. "Protective equipment" includes, but 75 36 is not limited to, the following: breathing masks; 75 37 clean room apparel and equipment; ear and hearing 75 38 protectors; face shields; hard hats; helmets; paint or 75 39 dust respirators; protective gloves; safety glasses 75 40 and goggles; safety belts; tool belts; and welders 75 41 gloves and masks. 75 42 (4) "Sport or recreational equipment" means items 75 43 designed for human use and worn in conjunction with an 75 44 athletic or recreational activity that are not 75 45 suitable for general use. "Sport or recreational 75 46 equipment" includes, but is not limited to, the 75 47 following: ballet and tap shoes; cleated or spiked 75 48 athletic shoes; gloves (including, but not limited to, 75 49 baseball, bowling, boxing, hockey, and golf); goggles; 75 50 hand and elbow guards; life preservers and vests; 76 1 mouth guards; roller and ice skates; shin guards; 76 2 shoulder pads; ski boots; waders; and wetsuits and 76 3 fins. 76 4 68. a. Subject to paragraph "b", the sales price 76 5 from the sale or furnishing of metered gas, 76 6 electricity, and fuel, including propane and heating 76 7 oil, to residential customers which is used to provide 76 8 energy for residential dwellings and units of 76 9 apartment and condominium complexes used for human 76 10 occupancy. 76 11 b. The exemption in this subsection shall be 76 12 phased in by means of a reduction in the tax rate as 76 13 follows: 76 14 (1) If the date of the utility billing or meter 76 15 reading cycle of the residential customer for the sale 76 16 or furnishing of metered gas and electricity is on or 76 17 after January 1, 2002, through December 31, 2002, or 76 18 if the sale or furnishing of fuel for purposes of 76 19 residential energy and the delivery of the fuel occurs 76 20 on or after January 1, 2002, through December 31, 76 21 2002, the rate of tax is four percent of the sales 76 22 price. 76 23 (2) If the date of the utility billing or meter 76 24 reading cycle of the residential customer for the sale 76 25 or furnishing of metered gas and electricity is on or 76 26 after January 1, 2003, through June 30, 2008, or if 76 27 the sale or furnishing of fuel for purposes of 76 28 residential energy and the delivery of the fuel occurs 76 29 on or after January 1, 2003, through June 30, 2008, 76 30 the rate of tax is three percent of the sales price. 76 31 (3) If the date of the utility billing or meter 76 32 reading cycle of the residential customer for the sale 76 33 or furnishing of metered gas and electricity is on or 76 34 after July 1, 2008, through June 30, 2009, or if the 76 35 sale or furnishing of fuel for purposes of residential 76 36 energy and the delivery of the fuel occurs on or after 76 37 July 1, 2008, through June 30, 2009, the rate of tax 76 38 is two percent of the sales price. 76 39 (4) If the date of the utility billing or meter 76 40 reading cycle of the residential customer for the sale 76 41 or furnishing of metered gas and electricity is on or 76 42 after July 1, 2009, through June 30, 2010, or if the 76 43 sale or furnishing of fuel for purposes of residential 76 44 energy and the delivery of the fuel occurs on or after 76 45 July 1, 2009, through June 30, 2010, the rate of tax 76 46 is one percent of the sales price. 76 47 (5) If the date of the utility billing or meter 76 48 reading cycle of the residential customer for the sale 76 49 or furnishing of metered gas and electricity is on or 76 50 after July 1, 2010, or if the sale, furnishing, or 77 1 service of fuel for purposes of residential energy and 77 2 the delivery of the fuel occurs on or after July 1, 77 3 2010, the rate of tax is zero percent of the sales 77 4 price. 77 5 c. The exemption in this subsection does not apply 77 6 to local option sales and services tax imposed 77 7 pursuant to chapters 423B and 423E. 77 8 69. The sales price from charges paid for the 77 9 delivery of electricity or natural gas if the sale or 77 10 furnishing of the electricity or natural gas or its 77 11 use is exempt from the tax on sales prices imposed 77 12 under this subchapter or from the use tax imposed 77 13 under subchapter III. 77 14 70. The sales price from the sales, furnishing, or 77 15 service of transportation service except the rental of 77 16 recreational vehicles or recreational boats, except 77 17 the rental of motor vehicles subject to registration 77 18 which are registered for a gross weight of thirteen 77 19 tons or less for a period of sixty days or less, and 77 20 except the rental of aircraft for a period of sixty 77 21 days or less. This exemption does not apply to the 77 22 transportation of electric energy or natural gas. 77 23 71. The sales price from sales of tangible 77 24 personal property used or to be used as railroad 77 25 rolling stock for transporting persons or property, or 77 26 as materials or parts therefor. 77 27 72. The sales price from the sales of special fuel 77 28 for diesel engines consumed or used in the operation 77 29 of ships, barges, or waterborne vessels which are used 77 30 primarily in or for the transportation of property or 77 31 cargo, or the conveyance of persons for hire on rivers 77 32 bordering on the state if the fuel is delivered by the 77 33 seller to the purchaser's barge, ship, or waterborne 77 34 vessel while it is afloat upon such a river. 77 35 73. The sales price from sales of vehicles subject 77 36 to registration or subject only to the issuance of a 77 37 certificate of title and sales of aircraft subject to 77 38 registration under section 328.20. 77 39 74. The sales price from the sale of aircraft for 77 40 use in a scheduled interstate federal aviation 77 41 administration certificated air carrier operation. 77 42 75. The sales price from the sale or rental of 77 43 aircraft; the sale or rental of tangible personal 77 44 property permanently affixed or attached as a 77 45 component part of the aircraft, including but not 77 46 limited to repair or replacement materials or parts; 77 47 and the sales price of all services used for aircraft 77 48 repair, remodeling, and maintenance services when such 77 49 services are performed on aircraft, aircraft engines, 77 50 or aircraft component materials or parts. For the 78 1 purposes of this exemption, "aircraft" means aircraft 78 2 used in a scheduled interstate federal aviation 78 3 administration certificated air carrier operation. 78 4 76. The sales price from the sale or rental of 78 5 tangible personal property permanently affixed or 78 6 attached as a component part of the aircraft, 78 7 including but not limited to repair or replacement 78 8 materials or parts; and the sales price of all 78 9 services used for aircraft repair, remodeling, and 78 10 maintenance services when such services are performed 78 11 on aircraft, aircraft engines, or aircraft component 78 12 materials or parts. For the purposes of this 78 13 exemption, "aircraft" means aircraft used in 78 14 nonscheduled interstate federal aviation 78 15 administration certificated air carrier operation 78 16 operating under 14 C.F.R. ch. 1, pt. 135. 78 17 77. The sales price from the sale of aircraft to 78 18 an aircraft dealer who in turn rents or leases the 78 19 aircraft if all of the following apply: 78 20 a. The aircraft is kept in the inventory of the 78 21 dealer for sale at all times. 78 22 b. The dealer reserves the right to immediately 78 23 take the aircraft from the renter or lessee when a 78 24 buyer is found. 78 25 c. The renter or lessee is aware that the dealer 78 26 will immediately take the aircraft when a buyer is 78 27 found. 78 28 If an aircraft exempt under this subsection is used 78 29 for any purpose other than leasing or renting, or the 78 30 conditions in paragraphs "a", "b", and "c" are not 78 31 continuously met, the dealer claiming the exemption 78 32 under this subsection is liable for the tax that would 78 33 have been due except for this subsection. The tax 78 34 shall be computed upon the original purchase price. 78 35 78. The sales price from sales or rental of 78 36 tangible personal property, or services rendered by 78 37 any entity where the profits from the sales or rental 78 38 of the tangible personal property, or services 78 39 rendered are used by or donated to a nonprofit entity 78 40 which is exempt from federal income taxation pursuant 78 41 to section 501(c)(3) of the Internal Revenue Code, a 78 42 government entity, or a nonprofit private educational 78 43 institution, and where the entire proceeds from the 78 44 sales, rental, or services are expended for any of the 78 45 following purposes: 78 46 a. Educational. 78 47 b. Religious. 78 48 c. Charitable. A charitable act is an act done 78 49 out of goodwill, benevolence, and a desire to add to 78 50 or to improve the good of humankind in general or any 79 1 class or portion of humankind, with no pecuniary 79 2 profit inuring to the person performing the service or 79 3 giving the gift. 79 4 This exemption does not apply to the sales price 79 5 from games of skill, games of chance, raffles, and 79 6 bingo games as defined in chapter 99B. This exemption 79 7 is disallowed on the amount of the sales price only to 79 8 the extent the profits from the sales, rental, or 79 9 services are not used by or donated to the appropriate 79 10 entity and expended for educational, religious, or 79 11 charitable purposes. 79 12 79. The sales price from the sale or rental of 79 13 tangible personal property or from services furnished 79 14 to a recognized community action agency as provided in 79 15 section 216A.93 to be used for the purposes of the 79 16 agency. 79 17 80. a. For purposes of this subsection, 79 18 "designated exempt entity" means an entity which is 79 19 designated in section 423.4, subsection 1. 79 20 b. If a contractor, subcontractor, or builder is 79 21 to use building materials, supplies, and equipment in 79 22 the performance of a construction contract with a 79 23 designated exempt entity, the person shall purchase 79 24 such items of tangible personal property without 79 25 liability for the tax if such property will be used in 79 26 the performance of the construction contract and a 79 27 purchasing agent authorization letter and an exemption 79 28 certificate, issued by the designated exempt entity, 79 29 are presented to the retailer. 79 30 c. Where the owner, contractor, subcontractor, or 79 31 builder is also a retailer holding a retail sales tax 79 32 permit and transacting retail sales of building 79 33 materials, supplies, and equipment, the tax shall not 79 34 be due when materials are withdrawn from inventory for 79 35 use in construction performed for a designated exempt 79 36 entity if an exemption certificate is received from 79 37 such entity. 79 38 d. Tax shall not apply to tangible personal 79 39 property purchased and consumed by a manufacturer as 79 40 building materials, supplies, or equipment in the 79 41 performance of a construction contract for a 79 42 designated exempt entity, if a purchasing agent 79 43 authorization letter and an exemption certificate are 79 44 received from such entity and presented to a retailer. 79 45 81. The sales price from the sales of lottery 79 46 tickets or shares pursuant to chapter 99G. 79 47 82. The sales price from the sale or rental of 79 48 core and mold making equipment and sand handling 79 49 equipment directly and primarily used in the mold 79 50 making process by a foundry. 80 1 83. The sales price from noncustomer point of sale 80 2 or noncustomer automated teller machine access or 80 3 service charges assessed by a financial institution. 80 4 For purposes of this subsection, "financial 80 5 institution" means the same as defined in section 80 6 527.2. 80 7 Sec. 106. NEW SECTION. 423.4 REFUNDS. 80 8 1. A private nonprofit educational institution in 80 9 this state, nonprofit private museum in this state, 80 10 tax-certifying or tax-levying body or governmental 80 11 subdivision of the state, including the state board of 80 12 regents, state department of human services, state 80 13 department of transportation, a municipally owned 80 14 solid waste facility which sells all or part of its 80 15 processed waste as fuel to a municipally owned public 80 16 utility, and all divisions, boards, commissions, 80 17 agencies, or instrumentalities of state, federal, 80 18 county, or municipal government which do not have 80 19 earnings going to the benefit of an equity investor or 80 20 stockholder, may make application to the department 80 21 for the refund of the sales or use tax upon the sales 80 22 price of all sales of goods, wares, or merchandise, or 80 23 from services furnished to a contractor, used in the 80 24 fulfillment of a written contract with the state of 80 25 Iowa, any political subdivision of the state, or a 80 26 division, board, commission, agency, or 80 27 instrumentality of the state or a political 80 28 subdivision, a private nonprofit educational 80 29 institution in this state, or a nonprofit private 80 30 museum in this state if the property becomes an 80 31 integral part of the project under contract and at the 80 32 completion of the project becomes public property, is 80 33 devoted to educational uses, or becomes a nonprofit 80 34 private museum; except goods, wares, or merchandise, 80 35 or services furnished which are used in the 80 36 performance of any contract in connection with the 80 37 operation of any municipal utility engaged in selling 80 38 gas, electricity, or heat to the general public or in 80 39 connection with the operation of a municipal pay 80 40 television system; and except goods, wares, and 80 41 merchandise used in the performance of a contract for 80 42 a "project" under chapter 419 as defined in that 80 43 chapter other than goods, wares, or merchandise used 80 44 in the performance of a contract for a "project" under 80 45 chapter 419 for which a bond issue was approved by a 80 46 municipality prior to July 1, 1968, or for which the 80 47 goods, wares, or merchandise becomes an integral part 80 48 of the project under contract and at the completion of 80 49 the project becomes public property or is devoted to 80 50 educational uses. 81 1 a. Such contractor shall state under oath, on 81 2 forms provided by the department, the amount of such 81 3 sales of goods, wares, or merchandise, or services 81 4 furnished and used in the performance of such 81 5 contract, and upon which sales or use tax has been 81 6 paid, and shall file such forms with the governmental 81 7 unit, private nonprofit educational institution, or 81 8 nonprofit private museum which has made any written 81 9 contract for performance by the contractor. The forms 81 10 shall be filed by the contractor with the governmental 81 11 unit, educational institution, or nonprofit private 81 12 museum before final settlement is made. 81 13 b. Such governmental unit, educational 81 14 institution, or nonprofit private museum shall, not 81 15 more than one year after the final settlement has been 81 16 made, make application to the department for any 81 17 refund of the amount of the sales or use tax which 81 18 shall have been paid upon any goods, wares, or 81 19 merchandise, or services furnished, the application to 81 20 be made in the manner and upon forms to be provided by 81 21 the department, and the department shall forthwith 81 22 audit the claim and, if approved, issue a warrant to 81 23 the governmental unit, educational institution, or 81 24 nonprofit private museum in the amount of the sales or 81 25 use tax which has been paid to the state of Iowa under 81 26 the contract. 81 27 Refunds authorized under this subsection shall 81 28 accrue interest at the rate in effect under section 81 29 421.7 from the first day of the second calendar month 81 30 following the date the refund claim is received by the 81 31 department. 81 32 c. Any contractor who willfully makes a false 81 33 report of tax paid under the provisions of this 81 34 subsection is guilty of a simple misdemeanor and in 81 35 addition shall be liable for the payment of the tax 81 36 and any applicable penalty and interest. 81 37 2. The refund of sales and use tax paid on 81 38 transportation construction projects let by the state 81 39 department of transportation is subject to the special 81 40 provisions of this subsection. 81 41 a. A contractor awarded a contract for a 81 42 transportation construction project is considered the 81 43 consumer of all building materials, building supplies, 81 44 and equipment and shall pay sales tax to the supplier 81 45 or remit consumer use tax directly to the department. 81 46 b. The contractor is not required to file 81 47 information with the state department of 81 48 transportation stating the amount of goods, wares, or 81 49 merchandise, or services rendered, furnished, or 81 50 performed and used in the performance of the contract 82 1 or the amount of sales or use tax paid. 82 2 c. The state department of transportation shall 82 3 file a refund claim based on a formula that considers 82 4 the following: 82 5 (1) The quantity of material to complete the 82 6 contract, and quantities of items of work. 82 7 (2) The estimated cost of these materials included 82 8 in the items of work, and the state sales or use tax 82 9 to be paid on the tax rate in effect in section 423.2. 82 10 The quantity of materials shall be determined after 82 11 each letting based on the contract quantities of all 82 12 items of work let to contract. The quantity of 82 13 individual component materials required for each item 82 14 shall be determined and maintained in a database. The 82 15 total quantities of materials shall be determined by 82 16 multiplying the quantities of component materials for 82 17 each contract item of work by the total quantities of 82 18 each contract item for each letting. Where variances 82 19 exist in the cost of materials, the lowest cost shall 82 20 be used as the base cost. 82 21 d. Only the state sales or use tax is refundable. 82 22 Local option taxes paid by the contractor are not 82 23 refundable. 82 24 3. A relief agency may apply to the director for 82 25 refund of the amount of sales or use tax imposed and 82 26 paid upon sales to it of any goods, wares, 82 27 merchandise, or services furnished, used for free 82 28 distribution to the poor and needy. 82 29 a. The refunds may be obtained only in the 82 30 following amounts and manner and only under the 82 31 following conditions: 82 32 (1) On forms furnished by the department, and 82 33 filed within the time as the director shall provide by 82 34 rule, the relief agency shall report to the department 82 35 the total amount or amounts, valued in money, expended 82 36 directly or indirectly for goods, wares, merchandise, 82 37 or services furnished, used for free distribution to 82 38 the poor and needy. 82 39 (2) On these forms the relief agency shall 82 40 separately list the persons making the sales to it or 82 41 to its order, together with the dates of the sales, 82 42 and the total amount so expended by the relief agency. 82 43 (3) The relief agency must prove to the 82 44 satisfaction of the director that the person making 82 45 the sales has included the amount thereof in the 82 46 computation of the sales price of such person and that 82 47 such person has paid the tax levied by this subchapter 82 48 or subchapter III, based upon such computation of the 82 49 sales price. 82 50 b. If satisfied that the foregoing conditions and 83 1 requirements have been complied with, the director 83 2 shall refund the amount claimed by the relief agency. 83 3 SUBCHAPTER III 83 4 USE TAX 83 5 Sec. 107. NEW SECTION. 423.5 IMPOSITION OF TAX. 83 6 An excise tax at the rate of five percent of the 83 7 purchase price or installed purchase price is imposed 83 8 on the following: 83 9 1. The use in this state of tangible personal 83 10 property as defined in section 423.1, including 83 11 aircraft subject to registration under section 328.20, 83 12 purchased for use in this state. For the purposes of 83 13 this subchapter, the furnishing or use of the 83 14 following services is also treated as the use of 83 15 tangible personal property: optional service or 83 16 warranty contracts, except residential service 83 17 contracts regulated under chapter 523C, vulcanizing, 83 18 recapping, or retreading services, engraving, 83 19 photography, retouching, printing, or binding 83 20 services, and communication service when furnished or 83 21 delivered to consumers or users within this state. 83 22 2. The use of manufactured housing in this state, 83 23 on the purchase price if the manufactured housing is 83 24 sold in the form of tangible personal property or on 83 25 the installed purchase price if the manufactured 83 26 housing is sold in the form of realty. 83 27 3. The use of leased vehicles, on the amount 83 28 subject to tax as calculated pursuant to section 83 29 423.27. 83 30 4. Purchases of tangible personal property made 83 31 from the government of the United States or any of its 83 32 agencies by ultimate consumers shall be subject to the 83 33 tax imposed by this section. Services purchased from 83 34 the same source or sources shall be subject to the 83 35 service tax imposed by this subchapter and apply to 83 36 the user of the services. 83 37 5. The use in this state of services enumerated in 83 38 section 423.2. This tax is applicable where services 83 39 are furnished in this state or where the product or 83 40 result of the service is used in this state. 83 41 6. The excise tax is imposed upon every person 83 42 using the property within this state until the tax has 83 43 been paid directly to the county treasurer, the state 83 44 department of transportation, a retailer, or the 83 45 department. This tax is imposed on every person using 83 46 the services or the product of the services in this 83 47 state until the user has paid the tax either to an 83 48 Iowa use tax permit holder or to the department. 83 49 7. For the purpose of the proper administration of 83 50 the use tax and to prevent its evasion, evidence that 84 1 tangible personal property was sold by any person for 84 2 delivery in this state shall be prima facie evidence 84 3 that such tangible personal property was sold for use 84 4 in this state. 84 5 Sec. 108. NEW SECTION. 423.6 EXEMPTIONS. 84 6 The use in this state of the following tangible 84 7 personal property and services is exempted from the 84 8 tax imposed by this subchapter: 84 9 1. Tangible personal property and enumerated 84 10 services, the sales price from the sale of which are 84 11 required to be included in the measure of the sales 84 12 tax, if that tax has been paid to the department or 84 13 the retailer. This exemption does not include 84 14 vehicles subject to registration or subject only to 84 15 the issuance of a certificate of title. 84 16 2. The sale of tangible personal property or the 84 17 furnishing of services in the regular course of 84 18 business. 84 19 3. Property used in processing. The use of 84 20 property in processing within the meaning of this 84 21 subsection shall mean and include any of the 84 22 following: 84 23 a. Any tangible personal property including 84 24 containers which it is intended shall, by means of 84 25 fabrication, compounding, manufacturing, or 84 26 germination, become an integral part of other tangible 84 27 personal property intended to be sold ultimately at 84 28 retail, and containers used in the collection, 84 29 recovery, or return of empty beverage containers 84 30 subject to chapter 455C. 84 31 b. Fuel which is consumed in creating power, heat, 84 32 or steam for processing or for generating electric 84 33 current. 84 34 c. Chemicals, solvents, sorbents, or reagents, 84 35 which are directly used and are consumed, dissipated, 84 36 or depleted in processing tangible personal property 84 37 which is intended to be sold ultimately at retail, and 84 38 which may not become a component or integral part of 84 39 the finished product. 84 40 d. The distribution to the public of free 84 41 newspapers or shoppers guides shall be deemed a retail 84 42 sale for purposes of the processing exemption in this 84 43 subsection. 84 44 4. All articles of tangible personal property 84 45 brought into the state of Iowa by a nonresident 84 46 individual for the individual's use or enjoyment while 84 47 within the state. 84 48 5. Services exempt from taxation by the provisions 84 49 of section 423.3. 84 50 6. Tangible personal property or services the 85 1 sales price of which is exempt from the sales tax 85 2 under section 423.3, except subsections 39 and 73, as 85 3 it relates to the sale, but not the lease or rental, 85 4 of vehicles subject to registration or subject only to 85 5 the issuance of a certificate of title and as it 85 6 relates to aircraft subject to registration under 85 7 section 328.20. 85 8 7. Advertisement and promotional material and 85 9 matter, seed catalogs, envelopes for same, and other 85 10 similar material temporarily stored in this state 85 11 which are acquired outside of Iowa and which, 85 12 subsequent to being brought into this state, are sent 85 13 outside of Iowa, either singly or physically attached 85 14 to other tangible personal property sent outside of 85 15 Iowa. 85 16 8. Vehicles, as defined in section 321.1, 85 17 subsections 41, 64A, 71, 85, and 88, except such 85 18 vehicles subject to registration which are designed 85 19 primarily for carrying persons, when purchased for 85 20 lease and actually leased to a lessee for use outside 85 21 the state of Iowa and the subsequent sole use in Iowa 85 22 is in interstate commerce or interstate 85 23 transportation. 85 24 9. Tangible personal property which, by means of 85 25 fabrication, compounding, or manufacturing, becomes an 85 26 integral part of vehicles, as defined in section 85 27 321.1, subsections 41, 64A, 71, 85, and 88, 85 28 manufactured for lease and actually leased to a lessee 85 29 for use outside the state of Iowa and the subsequent 85 30 sole use in Iowa is in interstate commerce or 85 31 interstate transportation. Vehicles subject to 85 32 registration which are designed primarily for carrying 85 33 persons are excluded from this subsection. 85 34 10. Vehicles subject to registration which are 85 35 transferred from a business or individual conducting a 85 36 business within this state as a sole proprietorship, 85 37 partnership, or limited liability company to a 85 38 corporation formed by the sole proprietorship, 85 39 partnership, or limited liability company for the 85 40 purpose of continuing the business when all of the 85 41 stock of the corporation so formed is owned by the 85 42 sole proprietor and the sole proprietor's spouse, by 85 43 all the partners in the case of a partnership, or by 85 44 all the members in the case of a limited liability 85 45 company. This exemption is equally available where 85 46 the vehicles subject to registration are transferred 85 47 from a corporation to a sole proprietorship, 85 48 partnership, or limited liability company formed by 85 49 that corporation for the purpose of continuing the 85 50 business when all of the incidents of ownership are 86 1 owned by the same person or persons who were 86 2 stockholders of the corporation. 86 3 This exemption also applies where the vehicles 86 4 subject to registration are transferred from a 86 5 corporation as part of the liquidation of the 86 6 corporation to its stockholders if within three months 86 7 of such transfer the stockholders retransfer those 86 8 vehicles subject to registration to a sole 86 9 proprietorship, partnership, or limited liability 86 10 company for the purpose of continuing the business of 86 11 the corporation when all of the incidents of ownership 86 12 are owned by the same person or persons who were 86 13 stockholders of the corporation. 86 14 10A. Vehicles subject to registration which are 86 15 transferred from a corporation that is primarily 86 16 engaged in the business of leasing vehicles subject to 86 17 registration to a corporation that is primarily 86 18 engaged in the business of leasing vehicles subject to 86 19 registration when the transferor and transferee 86 20 corporations are part of the same controlled group for 86 21 federal income tax purposes. 86 22 11. Vehicles registered or operated under chapter 86 23 326 and used substantially in interstate commerce, 86 24 section 423.5, subsection 7, notwithstanding. For 86 25 purposes of this subsection, "substantially in 86 26 interstate commerce" means that a minimum of twenty- 86 27 five percent of the miles operated by the vehicle 86 28 accrues in states other than Iowa. This subsection 86 29 applies only to vehicles which are registered for a 86 30 gross weight of thirteen tons or more. 86 31 For purposes of this subsection, trailers and 86 32 semitrailers registered or operated under chapter 326 86 33 are deemed to be used substantially in interstate 86 34 commerce and to be registered for a gross weight of 86 35 thirteen tons or more. 86 36 For the purposes of this subsection, if a vehicle 86 37 meets the requirement that twenty-five percent of the 86 38 miles operated accrues in states other than Iowa in 86 39 each year of the first four-year period of operation, 86 40 the exemption from use tax shall continue until the 86 41 vehicle is sold or transferred. If the vehicle is 86 42 found to have not met the exemption requirements or 86 43 the exemption was revoked, the value of the vehicle 86 44 upon which the use tax shall be imposed is the book or 86 45 market value, whichever is less, at the time the 86 46 exemption requirements were not met or the exemption 86 47 was revoked. 86 48 12. Mobile homes and manufactured housing the use 86 49 of which has previously been subject to the tax 86 50 imposed under this subchapter and for which that tax 87 1 has been paid. 87 2 13. Mobile homes to the extent of the portion of 87 3 the purchase price of the mobile home which is not 87 4 attributable to the cost of the tangible personal 87 5 property used in the processing of the mobile home, 87 6 and manufactured housing to the extent of the purchase 87 7 price or the installed purchase price of the 87 8 manufactured housing which is not attributable to the 87 9 cost of the tangible personal property used in the 87 10 processing of the manufactured housing. For purposes 87 11 of this exemption, the portion of the purchase price 87 12 which is not attributable to the cost of the tangible 87 13 personal property used in the processing of the mobile 87 14 home is forty percent and the portion of the purchase 87 15 price or installed purchase price which is not 87 16 attributable to the cost of the tangible personal 87 17 property used in the processing of the manufactured 87 18 housing is forty percent. 87 19 14. Tangible personal property used or to be used 87 20 as a ship, barge, or waterborne vessel which is used 87 21 or to be used primarily in or for the transportation 87 22 of property or cargo for hire on the rivers bordering 87 23 the state or as materials or parts of such ship, 87 24 barge, or waterborne vessel. 87 25 15. Vehicles subject to registration in any state 87 26 when purchased for rental or registered and titled by 87 27 a motor vehicle dealer licensed pursuant to chapter 87 28 322 for rental use, and held for rental for a period 87 29 of one hundred twenty days or more and actually rented 87 30 for periods of sixty days or less by a person 87 31 regularly engaged in the business of renting vehicles 87 32 including, but not limited to, motor vehicle dealers 87 33 licensed pursuant to chapter 322 who rent automobiles 87 34 to users, if the rental of the vehicles is subject to 87 35 taxation under chapter 423C. 87 36 16. Motor vehicles subject to registration which 87 37 were registered and titled between July 1, 1982, and 87 38 July 1, 1992, to a motor vehicle dealer licensed under 87 39 chapter 322 and which were rented to a user as defined 87 40 in section 423C.2 if the following occurred: 87 41 a. The dealer kept the vehicle on the inventory of 87 42 vehicles for sale at all times. 87 43 b. The vehicle was to be immediately taken from 87 44 the user of the vehicle when a buyer was found. 87 45 c. The user was aware of this situation. 87 46 17. Vehicles subject to registration under chapter 87 47 321, with a gross vehicle weight rating of less than 87 48 sixteen thousand pounds, excluding motorcycles and 87 49 motorized bicycles, when purchased for lease and 87 50 titled by the lessor licensed pursuant to chapter 321F 88 1 and actually leased for a period of twelve months or 88 2 more if the lease of the vehicle is subject to 88 3 taxation under section 423.27. 88 4 A lessor may maintain the exemption from use tax 88 5 under this subsection for a qualifying lease that 88 6 terminates at the conclusion or prior to the 88 7 contracted expiration date, if the lessor does not use 88 8 the vehicle for any purpose other than for lease. 88 9 Once the vehicle is used by the lessor for a purpose 88 10 other than for lease, the exemption from use tax under 88 11 this subsection no longer applies and, unless there is 88 12 an exemption from the use tax, use tax is due on the 88 13 fair market value of the vehicle determined at the 88 14 time the lessor uses the vehicle for a purpose other 88 15 than for lease, payable to the department. If the 88 16 lessor holds the vehicle exclusively for sale, use tax 88 17 is due and payable on the purchase price of the 88 18 vehicle at the time of purchase pursuant to this 88 19 subchapter. 88 20 18. Aircraft for use in a scheduled interstate 88 21 federal aviation administration certificated air 88 22 carrier operation. 88 23 19. Aircraft; tangible personal property 88 24 permanently affixed or attached as a component part of 88 25 the aircraft, including but not limited to repair or 88 26 replacement materials or parts; and all services used 88 27 for aircraft repair, remodeling, and maintenance 88 28 services when such services are performed on aircraft, 88 29 aircraft engines, or aircraft component materials or 88 30 parts. For the purposes of this exemption, "aircraft" 88 31 means aircraft used in a scheduled interstate federal 88 32 aviation administration certificated air carrier 88 33 operation. 88 34 20. Tangible personal property permanently affixed 88 35 or attached as a component part of the aircraft, 88 36 including but not limited to repair or replacement 88 37 materials or parts; and all services used for aircraft 88 38 repair, remodeling, and maintenance services when such 88 39 services are performed on aircraft, aircraft engines, 88 40 or aircraft component materials or parts. For the 88 41 purposes of this exemption, "aircraft" means aircraft 88 42 used in a nonscheduled interstate federal aviation 88 43 administration certificated air carrier operation 88 44 operating under 14 C.F.R., ch. 1, pt. 135. 88 45 21. Aircraft sold to an aircraft dealer who in 88 46 turn rents or leases the aircraft if all of the 88 47 following apply: 88 48 a. The aircraft is kept in the inventory of the 88 49 dealer for sale at all times. 88 50 b. The dealer reserves the right to immediately 89 1 take the aircraft from the renter or lessee when a 89 2 buyer is found. 89 3 c. The renter or lessee is aware that the dealer 89 4 will immediately take the aircraft when a buyer is 89 5 found. 89 6 If an aircraft exempt under this subsection is used 89 7 for any purpose other than leasing or renting, or the 89 8 conditions in paragraphs "a", "b", and "c" are not 89 9 continuously met, the dealer claiming the exemption 89 10 under this subsection is liable for the tax that would 89 11 have been due except for this subsection. The tax 89 12 shall be computed upon the original purchase price. 89 13 22. The use in this state of building materials, 89 14 supplies, or equipment, the sale or use of which is 89 15 not treated as a retail sale or a sale at retail under 89 16 section 423.2, subsection 1. 89 17 23. Exempted from the purchase price of any 89 18 vehicle subject to registration is: 89 19 a. The amount of any cash rebate which is provided 89 20 by a motor vehicle manufacturer to the purchaser of 89 21 the vehicle subject to registration so long as the 89 22 rebate is applied to the purchase price of the 89 23 vehicle. 89 24 b. That in transactions, except those subject to 89 25 paragraph "c", in which tangible personal property is 89 26 traded toward the purchase price of other tangible 89 27 personal property the purchase price is only that 89 28 portion of the purchase price which is payable in 89 29 money to the retailer if the following conditions are 89 30 met: 89 31 (1) The tangible personal property traded to the 89 32 retailer is the type of property normally sold in the 89 33 regular course of the retailer's business. 89 34 (2) The tangible personal property traded to the 89 35 retailer is intended by the retailer to be ultimately 89 36 sold at retail or is intended to be used by the 89 37 retailer or another in the remanufacturing of a like 89 38 item. 89 39 c. In a transaction between persons, neither of 89 40 which is a retailer of vehicles subject to 89 41 registration, in which a vehicle subject to 89 42 registration is traded toward the purchase price of 89 43 another vehicle subject to registration, the amount of 89 44 the trade-in value allowed on the vehicle subject to 89 45 registration traded. 89 46 SUBCHAPTER IV 89 47 UNIFORM SALES AND USE TAX ADMINISTRATION ACT 89 48 Sec. 109. NEW SECTION. 423.7 TITLE. 89 49 This subchapter shall be known and may be cited as 89 50 the "Uniform Sales and Use Tax Administration Act". 90 1 Sec. 110. NEW SECTION. 423.8 LEGISLATIVE FINDING 90 2 AND INTENT. 90 3 The general assembly finds that Iowa should enter 90 4 into an agreement with one or more states to simplify 90 5 and modernize sales and use tax administration in 90 6 order to substantially reduce the burden of tax 90 7 compliance for all sellers and for all types of 90 8 commerce. It is the intent of the general assembly 90 9 that entering into this agreement will lead to 90 10 simplification and modernization of the sales and use 90 11 tax law and not to the imposition of new taxes or an 90 12 increase or decrease in the existing number of 90 13 exemptions, unless such a result is unavoidable under 90 14 the terms of the agreement. 90 15 Sec. 111. NEW SECTION. 423.9 AUTHORITY TO ENTER 90 16 AGREEMENT AND TO REPRESENT THE STATE. 90 17 The director is authorized and directed to enter 90 18 into the streamlined sales and use tax agreement with 90 19 one or more states to simplify and modernize sales and 90 20 use tax administration in order to substantially 90 21 reduce the burden of tax compliance for all sellers 90 22 and for all types of commerce. 90 23 The director is further authorized to take other 90 24 actions reasonably required to implement the 90 25 provisions set forth in this chapter. Other actions 90 26 authorized by this section include, but are not 90 27 limited to, the adoption of rules and the joint 90 28 procurement, with other member states, of goods and 90 29 services in furtherance of the cooperative agreement. 90 30 The director or the director's designee is 90 31 authorized to be a member of the governing board 90 32 established pursuant to the agreement and to represent 90 33 Iowa before that body. 90 34 Sec. 112. NEW SECTION. 423.10 RELATIONSHIP TO 90 35 STATE LAW. 90 36 Entry into the agreement by the director does not 90 37 amend or modify any law of this state. Implementation 90 38 of any condition of the agreement in this state, 90 39 whether adopted before, at, or after membership of 90 40 this state in the agreement, shall be by action of the 90 41 general assembly. 90 42 Sec. 113. NEW SECTION. 423.11 AGREEMENT 90 43 REQUIREMENTS. 90 44 The director shall not enter into the agreement 90 45 unless the agreement requires each state to abide by 90 46 the following requirements: 90 47 1. UNIFORM STATE RATE. The agreement must set 90 48 restrictions to achieve more uniform state rates 90 49 through the following: 90 50 a. Limiting the number of state rates. 91 1 b. Limiting the application of maximums on the 91 2 amount of state tax that is due on a transaction. 91 3 c. Limiting the application of thresholds on the 91 4 application of state tax. 91 5 2. UNIFORM STANDARDS. The agreement must 91 6 establish uniform standards for the following: 91 7 a. The sourcing of transactions to taxing 91 8 jurisdictions. 91 9 b. The administration of exempt sales. 91 10 c. The allowances a seller can take for bad debts. 91 11 d. Sales and use tax returns and remittances. 91 12 3. UNIFORM DEFINITIONS. The agreement must 91 13 require states to develop and adopt uniform 91 14 definitions of sales and use tax terms. The 91 15 definitions must enable a state to preserve its 91 16 ability to make policy choices not inconsistent with 91 17 the uniform definitions. 91 18 4. CENTRAL REGISTRATION. The agreement must 91 19 provide a central, electronic registration system that 91 20 allows a seller to register to collect and remit sales 91 21 and use taxes for all member states. 91 22 5. NO NEXUS ATTRIBUTION. The agreement must 91 23 provide that registration with the central 91 24 registration system and the collection of sales and 91 25 use taxes in the member states must not be used as a 91 26 factor in determining whether the seller has nexus 91 27 with a state for any tax. 91 28 6. LOCAL SALES AND USE TAXES. The agreement must 91 29 provide for reduction of the burdens of complying with 91 30 local sales and use taxes through the following: 91 31 a. Restricting variances between the state and 91 32 local tax bases. 91 33 b. Requiring states to administer any sales and 91 34 use taxes levied by local jurisdictions within the 91 35 state so that sellers collecting and remitting these 91 36 taxes must not have to register or file returns with, 91 37 remit funds to, or be subject to independent audits 91 38 from local taxing jurisdictions. 91 39 c. Restricting the frequency of changes in the 91 40 local sales and use tax rates and setting effective 91 41 dates for the application of local jurisdictional 91 42 boundary changes to local sales and use taxes. 91 43 d. Providing notice of changes in local sales and 91 44 use tax rates and of changes in the boundaries of 91 45 local taxing jurisdictions. 91 46 7. MONETARY ALLOWANCES. The agreement must 91 47 outline any monetary allowances that are to be 91 48 provided by the states to sellers or certified service 91 49 providers. 91 50 8. STATE COMPLIANCE. The agreement must require 92 1 each state to certify compliance with the terms of the 92 2 agreement prior to joining and to maintain compliance, 92 3 under the laws of the member state, with all 92 4 provisions of the agreement while a member. 92 5 9. CONSUMER PRIVACY. The agreement must require 92 6 each state to adopt a uniform policy for certified 92 7 service providers that protects the privacy of 92 8 consumers and maintains the confidentiality of tax 92 9 information. 92 10 10. ADVISORY COUNCILS. The agreement must provide 92 11 for the appointment of an advisory council of private 92 12 sector representatives and an advisory council of 92 13 nonmember state representatives to consult with in the 92 14 administration of the agreement. 92 15 Sec. 114. NEW SECTION. 423.12 LIMITED BINDING 92 16 AND BENEFICIAL EFFECT. 92 17 1. The agreement binds and inures only to the 92 18 benefit of Iowa and the other member states. A 92 19 person, other than a member state, is not an intended 92 20 beneficiary of the agreement. Any benefit to a person 92 21 other than a member state is established by the law of 92 22 Iowa and not by the terms of the agreement. 92 23 2. A person shall not have any cause of action or 92 24 defense under the agreement or by virtue of this 92 25 state's entry into the agreement. A person may not 92 26 challenge, in any action brought under any provision 92 27 of law, any action or inaction by any department, 92 28 agency, or other instrumentality of this state, or any 92 29 political subdivision of this state on the ground that 92 30 the action or inaction is inconsistent with the 92 31 agreement. 92 32 3. A law of this state, or the application of it, 92 33 shall not be declared invalid as to any such person or 92 34 circumstance on the ground that the provision or 92 35 application is inconsistent with the agreement. 92 36 SUBCHAPTER V 92 37 SALES AND USE TAX ACT – ADMINISTRATION OF 92 38 RETAILERS NOT REGISTERED UNDER THE AGREEMENT AND OF 92 39 CONSUMERS OBLIGATED TO PAY USE TAX DIRECTLY 92 40 Sec. 115. NEW SECTION. 423.13 PURPOSE OF THIS 92 41 SUBCHAPTER. 92 42 The purpose of this subchapter is to provide for 92 43 the administration and collection of sales or use tax 92 44 on the part of retailers who are not registered under 92 45 the agreement and for the collection of use tax on the 92 46 part of consumers who are obligated to pay that tax 92 47 directly. Any application of the sections of this 92 48 subchapter to retailers registered under the agreement 92 49 is only by way of incorporation by reference into 92 50 subchapter VI of this chapter. 93 1 Sec. 116. NEW SECTION. 423.14 SALES AND USE TAX 93 2 COLLECTION. 93 3 1. a. Sales tax, other than that described in 93 4 paragraph "c", shall be collected by sellers who are 93 5 retailers or by their agents. Sellers or their agents 93 6 shall, as far as practicable, add the sales tax, or 93 7 the average equivalent thereof, to the sales price or 93 8 charge, less trade-ins allowed and taken and when 93 9 added such tax shall constitute a part of the sales 93 10 price or charge, shall be a debt from consumer or user 93 11 to seller or agent until paid, and shall be 93 12 recoverable at law in the same manner as other debts. 93 13 b. In computing the tax to be collected as the 93 14 result of any transaction, the tax computation must be 93 15 carried to the third decimal place. Whenever the 93 16 third decimal place is greater than four, the tax must 93 17 be rounded up to the next whole cent; whenever the 93 18 third decimal place is four or less, the tax must be 93 19 rounded downward to a whole cent. Sellers may elect 93 20 to compute the tax due on transactions on an item or 93 21 invoice basis. Sellers are not required to use a 93 22 bracket system. 93 23 c. The tax imposed upon those sales of motor 93 24 vehicle fuel which are subject to tax and refund under 93 25 chapter 452A shall be collected by the state treasurer 93 26 by way of deduction from refunds otherwise allowable 93 27 under that chapter. The treasurer shall transfer the 93 28 amount of such deductions from the motor vehicle fuel 93 29 tax fund to the special tax fund. 93 30 2. Use tax shall be collected in the following 93 31 manner: 93 32 a. The tax upon the use of all vehicles subject to 93 33 registration or subject only to the issuance of a 93 34 certificate of title or the tax upon the use of 93 35 manufactured housing shall be collected by the county 93 36 treasurer or the state department of transportation 93 37 pursuant to sections 423.26 and 423.27. The county 93 38 treasurer shall retain one dollar from each tax 93 39 payment collected, to be credited to the county 93 40 general fund. 93 41 b. The tax upon the use of all tangible personal 93 42 property other than that enumerated in paragraph "a", 93 43 which is sold by a seller who is a retailer 93 44 maintaining a place of business in this state, or by 93 45 such other retailer or agent as the director shall 93 46 authorize pursuant to section 423.30, shall be 93 47 collected by the retailer or agent and remitted to the 93 48 department, pursuant to the provisions of paragraph 93 49 "e", and sections 423.24, 423.29, 423.30, 423.32, and 93 50 423.33. 94 1 c. The tax upon the use of all tangible personal 94 2 property not paid pursuant to paragraphs "a" and "b" 94 3 shall be paid to the department directly by any person 94 4 using the property within this state, pursuant to the 94 5 provisions of section 423.34. 94 6 d. The tax imposed on the use of services 94 7 enumerated in section 423.5 shall be collected, 94 8 remitted, and paid to the department of revenue and 94 9 finance in the same manner as use tax on tangible 94 10 personal property is collected, remitted, and paid 94 11 under this subchapter. 94 12 e. All persons obligated by paragraph "a", "b", or 94 13 "d", to collect use tax shall, as far as practicable, 94 14 add that tax, or the average equivalent thereof, to 94 15 the purchase price, less trade-ins allowed and taken, 94 16 and when added the tax shall constitute a part of the 94 17 purchase price. Use tax which this section requires 94 18 to be collected by a retailer and any tax collected 94 19 pursuant to this section by a retailer shall 94 20 constitute a debt owed by the retailer to this state. 94 21 Tax which must be paid directly to the department, 94 22 pursuant to paragraph "c" or "d", is to be computed 94 23 and added by the consumer or user to the purchase 94 24 price in the same manner as this paragraph requires a 94 25 seller to compute and add the tax. The tax shall be a 94 26 debt from the consumer or user to the department until 94 27 paid, and shall be recoverable at law in the same 94 28 manner as other debts. 94 29 Sec. 117. NEW SECTION. 423.15 GENERAL SOURCING 94 30 RULES. 94 31 All sellers obligated to collect Iowa sales or use 94 32 tax shall use the standards set out in this section to 94 33 determine where sales of products occur, excluding 94 34 sales enumerated in section 423.16. These provisions 94 35 apply regardless of the characterization of a product 94 36 as tangible personal property, a digital good, or a 94 37 service, excluding telecommunications services. This 94 38 section only applies to determine a seller's 94 39 obligation to pay or collect and remit a sales or use 94 40 tax with respect to the seller's sale of a product. 94 41 This section does not affect the obligation of a 94 42 purchaser or lessee to remit tax on the use of the 94 43 product to the taxing jurisdictions in which the use 94 44 occurs. A seller's obligation to collect Iowa sales 94 45 tax or Iowa use tax only occurs if the sale is sourced 94 46 to this state. The application of whether Iowa sales 94 47 tax applies to sales sourced to Iowa depends upon 94 48 where the sale is consummated by delivery. 94 49 1. Sales, excluding leases or rentals other than 94 50 leases or rentals set out in subsection 2, of products 95 1 shall be sourced as follows. 95 2 a. When the product is received by the purchaser 95 3 at a business location of the seller, the sale is 95 4 sourced to that business location. 95 5 b. When the product is not received by the 95 6 purchaser at a business location of the seller, the 95 7 sale is sourced to the location where receipt by the 95 8 purchaser or the purchaser's donee, designated as such 95 9 by the purchaser, occurs, including the location 95 10 indicated by instructions for delivery to the 95 11 purchaser or donee, known to the seller. 95 12 c. When paragraphs "a" and "b" do not apply, the 95 13 sale is sourced to the location indicated by an 95 14 address for the purchaser that is available from the 95 15 business records of the seller that are maintained in 95 16 the ordinary course of the seller's business when use 95 17 of this address does not constitute bad faith. 95 18 d. When paragraphs "a", "b", and "c" do not apply, 95 19 the sale is sourced to the location indicated by an 95 20 address for the purchaser obtained during the 95 21 consummation of the sale, including the address of a 95 22 purchaser's payment instrument, if no other address is 95 23 available, when use of this address does not 95 24 constitute bad faith. 95 25 e. When paragraphs "a", "b", "c", and "d" do not 95 26 apply, including the circumstance where the seller is 95 27 without sufficient information to apply the previous 95 28 rules, then the location will be determined by the 95 29 address from which tangible personal property was 95 30 shipped, from which the digital good or the computer 95 31 software delivered electronically was first available 95 32 for transmission by the seller, or from which the 95 33 service was provided disregarding for these purposes 95 34 any location that merely provided the digital transfer 95 35 of the product sold. 95 36 2. The lease or rental of tangible personal 95 37 property, other than property identified in subsection 95 38 3 or section 423.16, shall be sourced as follows: 95 39 a. For a lease or rental that requires recurring 95 40 periodic payments, the first periodic payment is 95 41 sourced the same as a retail sale in accordance with 95 42 the provisions of subsection 1. Periodic payments 95 43 made subsequent to the first payment are sourced to 95 44 the primary property location for each period covered 95 45 by the payment. The primary property location shall 95 46 be as indicated by an address for the property 95 47 provided by the lessee that is available to the lessor 95 48 from its records maintained in the ordinary course of 95 49 business, when use of this address does not constitute 95 50 bad faith. The property location shall not be altered 96 1 by intermittent use at different locations, such as 96 2 use of business property that accompanies employees on 96 3 business trips and service calls. 96 4 b. For a lease or rental that does not require 96 5 recurring periodic payments, the payment is sourced 96 6 the same as a retail sale in accordance with the 96 7 provisions of subsection 1. 96 8 c. This subsection does not affect the imposition 96 9 or computation of sales or use tax on leases or 96 10 rentals based on a lump sum or accelerated basis, or 96 11 on the acquisition of property for lease. 96 12 3. The retail sale, including lease or rental, of 96 13 transportation equipment shall be sourced the same as 96 14 a retail sale in accordance with the provisions of 96 15 subsection 1, notwithstanding the exclusion of lease 96 16 or rental in that subsection. "Transportation 96 17 equipment" means any of the following: 96 18 a. Locomotives or railcars that are utilized for 96 19 the carriage of persons or property in interstate 96 20 commerce. 96 21 b. Trucks and truck-tractors with a gross vehicle 96 22 weight rating of ten thousand one pounds or greater, 96 23 trailers, semitrailers, or passenger buses that meet 96 24 both of the following requirements: 96 25 (1) Are registered through the international 96 26 registration plan. 96 27 (2) Are operated under authority of a carrier 96 28 authorized and certificated by the United States 96 29 department of transportation or another federal 96 30 authority to engage in the carriage of persons or 96 31 property in interstate commerce. 96 32 c. Aircraft that are operated by air carriers 96 33 authorized and certificated by the United States 96 34 department of transportation or another federal or a 96 35 foreign authority to engage in the carriage of persons 96 36 or property in interstate or foreign commerce. 96 37 d. Containers designed for use on and component 96 38 parts attached or secured on the items set forth in 96 39 paragraphs "a" through "c". 96 40 Sec. 118. NEW SECTION. 423.16 TRANSACTIONS TO 96 41 WHICH THE GENERAL SOURCING RULES DO NOT APPLY. 96 42 Section 423.15 does not apply to sales or use taxes 96 43 levied on the following: 96 44 1. The retail sale or transfer of watercraft, 96 45 modular homes, manufactured housing, or mobile homes, 96 46 and the retail sale, excluding lease or rental, of 96 47 motor vehicles, trailers, semitrailers, or aircraft 96 48 that do not qualify as transportation equipment, as 96 49 defined in section 423.15, subsection 3. 96 50 2. The lease or rental of motor vehicles, 97 1 trailers, semitrailers, or aircraft that do not 97 2 qualify as transportation equipment, as defined in 97 3 section 423.15, subsection 3, which shall be sourced 97 4 in accordance with section 423.17. 97 5 3. Transactions to which the multiple points use 97 6 exemption is applicable, which shall be sourced in 97 7 accordance with section 423.18. 97 8 4. Transactions to which direct mail sourcing is 97 9 applicable, which shall be sourced in accordance with 97 10 section 423.19. 97 11 5. Telecommunications services, as set out in 97 12 section 423.20, which shall be sourced in accordance 97 13 with section 423.20, subsection 2. 97 14 Sec. 119. NEW SECTION. 423.17 SOURCING RULES FOR 97 15 VARIOUS TYPES OF LEASED OR RENTED EQUIPMENT WHICH IS 97 16 NOT TRANSPORTATION EQUIPMENT. 97 17 The lease or rental of motor vehicles, trailers, 97 18 semitrailers, or aircraft that do not qualify as 97 19 transportation equipment, as defined in section 97 20 423.15, subsection 3, shall be sourced as follows: 97 21 1. For a lease or rental that requires recurring 97 22 periodic payments, each periodic payment is sourced to 97 23 the primary property location. The primary property 97 24 location shall be as indicated by an address for the 97 25 property provided by the lessee that is available to 97 26 the lessor from its records maintained in the ordinary 97 27 course of business, when use of this address does not 97 28 constitute bad faith. This location shall not be 97 29 altered by intermittent use at different locations. 97 30 2. For a lease or rental that does not require 97 31 recurring periodic payments, the payment is sourced 97 32 the same as a retail sale in accordance with the 97 33 provisions of section 423.15, subsection 1. 97 34 3. This section does not affect the imposition or 97 35 computation of sales or use tax on leases or rentals 97 36 based on a lump sum or accelerated basis, or on the 97 37 acquisition of property for lease. 97 38 Sec. 120. NEW SECTION. 423.18 MULTIPLE POINTS OF 97 39 USE EXEMPTION FORMS. 97 40 A business purchaser that is not a holder of a 97 41 direct pay tax permit pursuant to section 423.36 that 97 42 knows at the time of its purchase of a digital good, 97 43 computer software delivered electronically, or a 97 44 service that the digital good, computer software 97 45 delivered electronically, or service will be 97 46 concurrently available for use in more than one 97 47 jurisdiction shall deliver to the seller in 97 48 conjunction with its purchase a "multiple points of 97 49 use" or "MPU" exemption form disclosing this fact. 97 50 1. Upon receipt of the MPU exemption form, the 98 1 seller is relieved of all obligation to collect, pay, 98 2 or remit the applicable tax and the purchaser shall be 98 3 obligated to collect, pay, or remit the applicable tax 98 4 on a direct pay basis. 98 5 2. A purchaser delivering the MPU exemption form 98 6 may use any reasonable, but consistent and uniform, 98 7 method of apportionment that is supported by the 98 8 purchaser's business records as they exist at the time 98 9 of the consummation of the sale. 98 10 3. The MPU exemption form will remain in effect 98 11 for all future sales by the seller to the purchaser 98 12 except as to the subsequent sale's specific 98 13 apportionment that is governed by the principle of 98 14 subsection 2 and the facts existing at the time of the 98 15 sale until it is revoked in writing. 98 16 4. A holder of a direct pay tax permit under 98 17 section 423.36 shall not be required to deliver an MPU 98 18 exemption form to the seller. A direct pay tax permit 98 19 holder shall follow the provisions of subsection 2 in 98 20 apportioning the tax due on a digital good, computer 98 21 software delivered electronically, or service that 98 22 will be concurrently available for use in more than 98 23 one jurisdiction. 98 24 Sec. 121. NEW SECTION. 423.19 DIRECT MAIL 98 25 SOURCING. 98 26 1. Notwithstanding section 423.15, a purchaser of 98 27 direct mail that is not a holder of a direct pay tax 98 28 permit pursuant to section 423.36 shall provide to the 98 29 seller in conjunction with the purchase either a 98 30 direct mail form or information to show the 98 31 jurisdictions to which the direct mail is delivered to 98 32 recipients. 98 33 a. Upon receipt of the direct mail form, the 98 34 seller is relieved of all obligations to collect, pay, 98 35 or remit the applicable tax and the purchaser is 98 36 obligated to pay or remit the applicable tax on a 98 37 direct pay basis. A direct mail form shall remain in 98 38 effect for all future sales of direct mail by the 98 39 seller to the purchaser until it is revoked in 98 40 writing. 98 41 b. Upon receipt of information from the purchaser 98 42 showing the jurisdictions to which the direct mail is 98 43 delivered to recipients, the seller shall collect the 98 44 tax according to the delivery information provided by 98 45 the purchaser. In the absence of bad faith, the 98 46 seller is relieved of any further obligation to 98 47 collect tax on any transaction where the seller has 98 48 collected tax pursuant to the delivery information 98 49 provided by the purchaser. 98 50 2. If the purchaser of direct mail does not have a 99 1 direct pay tax permit and does not provide the seller 99 2 with either a direct mail form or delivery 99 3 information, as required by subsection 1, the seller 99 4 shall collect the tax according to section 423.15, 99 5 subsection 1, paragraph "e". Nothing in this 99 6 subsection shall limit a purchaser's obligation for 99 7 sales or use tax to any state to which the direct mail 99 8 is delivered. 99 9 3. If a purchaser of direct mail provides the 99 10 seller with documentation of direct pay authority, the 99 11 purchaser shall not be required to provide a direct 99 12 mail form or delivery information to the seller. 99 13 Sec. 122. NEW SECTION. 423.20 TELECOMMUNICATIONS 99 14 SERVICE SOURCING. 99 15 1. As used in this section: 99 16 a. "Air-to-ground radiotelephone service" means a 99 17 radio service, as that term is used in 47 C.F.R. } 99 18 22.99, in which common carriers are authorized to 99 19 offer and provide radio telecommunications service for 99 20 hire to subscribers in aircraft. 99 21 b. "Call-by-call basis" means any method of 99 22 charging for the telecommunications service where the 99 23 price is measured by individual calls. 99 24 c. "Communications channel" means a physical or 99 25 virtual path of communications over which signals are 99 26 transmitted between or among customer channel 99 27 termination points. 99 28 d. "Customer" means the person or entity that 99 29 contracts with the seller of the telecommunications 99 30 service. If the end user of the telecommunications 99 31 service is not the contracting party, the end user of 99 32 the telecommunications service is the customer of the 99 33 telecommunications service, but this sentence only 99 34 applies for the purpose of sourcing sales of the 99 35 telecommunications service under this section. 99 36 "Customer" does not include a reseller of a 99 37 telecommunications service or for mobile 99 38 telecommunications service of a serving carrier under 99 39 an agreement to serve the customer outside the home 99 40 service provider's licensed service area. 99 41 e. "Customer channel termination point" means the 99 42 location where the customer either inputs or receives 99 43 the communications. 99 44 f. "End user" means the person who utilizes the 99 45 telecommunications service. In the case of an entity, 99 46 "end user" means the individual who utilizes the 99 47 service on behalf of the entity. 99 48 g. "Home service provider" means the same as that 99 49 term is defined in the federal Mobile 99 50 Telecommunications Sourcing Act, Pub. L. No. 106-252, 100 1 4 U.S.C. } 124(5). 100 2 h. "Mobile telecommunications service" means the 100 3 same as that term is defined in federal Mobile 100 4 Telecommunications Sourcing Act, Pub. L. No. 106-252, 100 5 4 U.S.C. } 124(7). 100 6 i. "Place of primary use" means the street address 100 7 representative of where the customer's use of the 100 8 telecommunications service primarily occurs, which 100 9 must be the residential street address or the primary 100 10 business street address of the customer. In the case 100 11 of mobile telecommunications service, "place of 100 12 primary use" must be within the licensed service area 100 13 of the home service provider. 100 14 j. "Postpaid calling service" means the 100 15 telecommunications service obtained by making a 100 16 payment on a call-by-call basis either through the use 100 17 of a credit card or payment mechanism such as a bank 100 18 card, travel card, credit card, or debit card, or by 100 19 charge made to a telephone number which is not 100 20 associated with the origination or termination of the 100 21 telecommunications service. A "postpaid calling 100 22 service" includes a telecommunications service that 100 23 would be a prepaid calling service except it is not 100 24 exclusively a telecommunications service. 100 25 k. "Prepaid calling service" means the right to 100 26 access exclusively telecommunications services, which 100 27 must be paid for in advance and which enables the 100 28 origination of calls using an access number or 100 29 authorization code, whether manually or electronically 100 30 dialed, and that is sold in predetermined units or 100 31 dollars of which the amount declines with use in a 100 32 known amount. 100 33 l. "Private communication service" means a 100 34 telecommunications service that entitles the customer 100 35 to exclusive or priority use of a communications 100 36 channel or group of channels between or among 100 37 termination points, regardless of the manner in which 100 38 such channel or channels are connected, and includes 100 39 switching capacity, extension lines, stations, and any 100 40 other associated services that are provided in 100 41 connection with the use of such channel or channels. 100 42 m. "Service address" means one of the following: 100 43 (1) The location of the telecommunications 100 44 equipment to which a customer's call is charged and 100 45 from which the call originates or terminates, 100 46 regardless of where the call is billed or paid. 100 47 (2) If the location in subparagraph (1) is not 100 48 known, "service address" means the origination point 100 49 of the signal of the telecommunications service first 100 50 identified by either the seller's telecommunications 101 1 system or in information received by the seller from 101 2 its service provider, where the system used to 101 3 transport such signals is not that of the seller. 101 4 (3) If the locations in subparagraphs (1) and (2) 101 5 are not known, the "service address" means the 101 6 location of the customer's place of primary use. 101 7 2. Sales of telecommunications services shall be 101 8 sourced in the following manner: 101 9 a. Except for the defined telecommunications 101 10 services in paragraph "c", the sale of 101 11 telecommunications services sold on a call-by-call 101 12 basis shall be sourced to one of the following: 101 13 (1) Each level of taxing jurisdiction where the 101 14 call originates and terminates in that jurisdiction. 101 15 (2) Each level of taxing jurisdiction where the 101 16 call either originates or terminates and in which the 101 17 service address is also located. 101 18 b. Except for the defined telecommunications 101 19 services in paragraph "c", a sale of 101 20 telecommunications services sold on a basis other than 101 21 a call-by-call basis is sourced to the customer's 101 22 place of primary use. 101 23 c. Sale of the following telecommunications 101 24 services shall be sourced to each level of taxing 101 25 jurisdiction as follows: 101 26 (1) A sale of mobile telecommunications services 101 27 other than air-to-ground radiotelephone service or 101 28 prepaid calling service is sourced to the customer's 101 29 place of primary use as required by the federal Mobile 101 30 Telecommunications Sourcing Act. 101 31 (2) A sale of postpaid calling service is sourced 101 32 to the origination point of the telecommunications 101 33 signal as first identified by either of the following: 101 34 (a) The seller's telecommunications system. 101 35 (b) Information received by the seller from its 101 36 service provider, where the system used to transport 101 37 such signals is not that of the seller. 101 38 (3) A sale of prepaid calling service is sourced 101 39 in accordance with section 423.15. However, in the 101 40 case of a sale of mobile telecommunications services 101 41 that is a prepaid telecommunications service, the rule 101 42 provided in section 423.15, subsection 1, paragraph 101 43 "e", shall include as an option the location 101 44 associated with the mobile telephone number. 101 45 (4) A sale of a private telecommunications service 101 46 is sourced as follows: 101 47 (a) Service for a separate charge related to a 101 48 customer channel termination point is sourced to each 101 49 level of jurisdiction in which such customer channel 101 50 termination point is located. 102 1 (b) Service where all customer termination points 102 2 are located entirely within one jurisdiction or level 102 3 of jurisdiction is sourced in such jurisdiction in 102 4 which the customer channel termination points are 102 5 located. 102 6 (c) Service for segments of a channel between two 102 7 customer channel termination points located in 102 8 different jurisdictions and which segments of a 102 9 channel are separately charged is sourced fifty 102 10 percent in each level of jurisdiction in which the 102 11 customer channel termination points are located. 102 12 (d) Service for segments of a channel located in 102 13 more than one jurisdiction or levels of jurisdiction 102 14 and which segments are not separately billed is 102 15 sourced in each jurisdiction based on the percentage 102 16 determined by dividing the number of customer channel 102 17 termination points in such jurisdiction by the total 102 18 number of customer channel termination points. 102 19 Sec. 123. NEW SECTION. 423.21 BAD DEBT 102 20 DEDUCTIONS. 102 21 1. For the purposes of this section, "bad debt" 102 22 means an amount properly calculated pursuant to 102 23 section 166 of the Internal Revenue Code then adjusted 102 24 to exclude financing charges or interest, sales or use 102 25 taxes charged on the purchase price, uncollectible 102 26 amounts on property that remain in the possession of 102 27 the seller until the full purchase price is paid, 102 28 expenses incurred in attempting to collect any debt, 102 29 and repossessed property. 102 30 2. In computing the amount of tax due, a seller 102 31 may deduct bad debts from the total amount upon which 102 32 the tax is calculated for any return. Any deduction 102 33 taken or refund paid which is attributed to bad debts 102 34 shall not include interest. 102 35 3. A seller may deduct bad debts on the return for 102 36 the period during which the bad debt is written off as 102 37 uncollectible in the seller's books and records and is 102 38 eligible to be deducted for federal income tax 102 39 purposes. For purposes of this subsection, a seller 102 40 who is not required to file federal income tax returns 102 41 may deduct a bad debt on a return filed for the period 102 42 in which the bad debt is written off as uncollectible 102 43 in the seller's books and records and would be 102 44 eligible for a bad debt deduction for federal income 102 45 tax purposes if the seller were required to file a 102 46 federal income tax return. 102 47 4. If a deduction is taken for a bad debt and the 102 48 seller subsequently collects the debt in whole or in 102 49 part, the tax on the amount so collected must be paid 102 50 and reported on the return filed for the period in 103 1 which the collection is made. 103 2 5. A seller may obtain a refund of tax on any 103 3 amount of bad debt that exceeds the amount of taxable 103 4 sales within the period allowed for refund claims by 103 5 section 423.47. However, the period allowed for 103 6 refund claims shall be measured from the due date of 103 7 the return on which the bad debt could first be 103 8 claimed. 103 9 6. For the purposes of computing a bad debt 103 10 deduction or reporting a payment received on a 103 11 previously claimed bad debt, any payments made on a 103 12 debt or account shall be applied first to the price of 103 13 the property or service and tax thereon, 103 14 proportionally, and secondly to interest, service 103 15 charges, and any other charges. 103 16 Sec. 124. NEW SECTION. 423.22 TAXATION IN 103 17 ANOTHER STATE. 103 18 If any person who causes tangible personal property 103 19 to be brought into this state or who uses in this 103 20 state services enumerated in section 423.2 has already 103 21 paid a tax in another state in respect to the sale or 103 22 use of the property or the performance of the service, 103 23 or an occupation tax in respect to the property or 103 24 service, in an amount less than the tax imposed by 103 25 subchapter II or III, the provisions of those 103 26 subchapters shall apply, but at a rate measured by the 103 27 difference only between the rate fixed by subchapter 103 28 II or III and the rate by which the previous tax on 103 29 the sale or use, or the occupation tax, was computed. 103 30 If the tax imposed and paid in the other state is 103 31 equal to or more than the tax imposed by those 103 32 subchapters, then a tax is not due in this state on 103 33 the personal property or service. 103 34 Sec. 125. NEW SECTION. 423.23 SELLERS' 103 35 AGREEMENTS. 103 36 Agreements between competing sellers, or the 103 37 adoption of appropriate rules and regulations by 103 38 organizations or associations of sellers to provide 103 39 uniform methods for adding sales or use tax or the 103 40 average equivalent thereof, and which do not involve 103 41 price-fixing agreements otherwise unlawful, are 103 42 expressly authorized and shall be held not in 103 43 violation of chapter 553 or other antitrust laws of 103 44 this state. The director shall cooperate with 103 45 sellers, organizations, or associations in formulating 103 46 agreements and rules. 103 47 Sec. 126. NEW SECTION. 423.24 ABSORBING TAX 103 48 PROHIBITED. 103 49 A seller shall not advertise or hold out or state 103 50 to the public or to any purchaser, consumer, or user, 104 1 directly or indirectly, that the taxes or any parts 104 2 thereof imposed by subchapter II or III will be 104 3 assumed or absorbed by the seller or the taxes will 104 4 not be added to the sales price of the property sold, 104 5 or if added that the taxes or any part thereof will be 104 6 refunded. Any person violating any of the provisions 104 7 of this section within this state is guilty of a 104 8 simple misdemeanor. 104 9 Sec. 127. NEW SECTION. 423.25 DIRECTOR'S POWER 104 10 TO ADOPT RULES. 104 11 The director shall have the power to adopt rules 104 12 for adding the taxes imposed by subchapters II and 104 13 III, or the average equivalents thereof, by providing 104 14 different methods applying uniformly to retailers 104 15 within the same general classification for the purpose 104 16 of enabling the retailers to add and collect, as far 104 17 as practicable, the amounts of those taxes. 104 18 Sec. 128. NEW SECTION. 423.26 VEHICLES SUBJECT 104 19 TO REGISTRATION OR ONLY TO THE ISSUANCE OF TITLE – 104 20 MANUFACTURED HOUSING. 104 21 The use tax imposed upon the use of vehicles 104 22 subject to registration or subject only to the 104 23 issuance of a certificate of title or imposed upon the 104 24 use of manufactured housing shall be paid by the owner 104 25 of the vehicle or of the manufactured housing to the 104 26 county treasurer or the state department of 104 27 transportation from whom the registration receipt or 104 28 certificate of title is obtained. A registration 104 29 receipt for a vehicle subject to registration or 104 30 certificate of title shall not be issued until the tax 104 31 has been paid. The county treasurer or the state 104 32 department of transportation shall require every 104 33 applicant for a registration receipt for a vehicle 104 34 subject to registration or certificate of title to 104 35 supply information as the county treasurer or the 104 36 director deems necessary as to the time of purchase, 104 37 the purchase price, installed purchase price, and 104 38 other information relative to the purchase of the 104 39 vehicle or manufactured housing. On or before the 104 40 tenth day of each month, the county treasurer or the 104 41 state department of transportation shall remit to the 104 42 department the amount of the taxes collected during 104 43 the preceding month. 104 44 A person who willfully makes a false statement in 104 45 regard to the purchase price of a vehicle subject to 104 46 taxation under this section is guilty of a fraudulent 104 47 practice. A person who willfully makes a false 104 48 statement in regard to the purchase price of such a 104 49 vehicle with the intent to evade the payment of tax 104 50 shall be assessed a penalty of seventy-five percent of 105 1 the amount of tax unpaid and required to be paid on 105 2 the actual purchase price less trade-in allowance. 105 3 Sec. 129. NEW SECTION. 423.27 MOTOR VEHICLE 105 4 LEASE TAX. 105 5 1. The use tax imposed upon the use of leased 105 6 vehicles subject to registration under chapter 321, 105 7 with gross vehicle weight ratings of less than sixteen 105 8 thousand pounds, excluding motorcycles and motorized 105 9 bicycles, which are leased by a lessor licensed 105 10 pursuant to chapter 321F for a period of twelve months 105 11 or more shall be paid by the owner of the vehicle to 105 12 the county treasurer or state department of 105 13 transportation from whom the registration receipt or 105 14 certificate of title is obtained. A registration 105 15 receipt for a vehicle subject to registration or 105 16 issuance of a certificate of title shall not be issued 105 17 until the tax is paid in the initial instance. Tax on 105 18 the lease transaction that does not require titling or 105 19 registration of the vehicle shall be remitted to the 105 20 department. Tax and the reporting of tax due to the 105 21 department shall be remitted on or before fifteen days 105 22 from the last day of the month that the vehicle lease 105 23 tax becomes due. Failure to timely report or remit 105 24 any of the tax when due shall result in a penalty and 105 25 interest being imposed on the tax due pursuant to 105 26 section 423.40, subsection 1, and section 423.42, 105 27 subsection 1. 105 28 2. The amount subject to tax shall be computed on 105 29 each separate lease transaction by taking the total of 105 30 the lease payments, plus the down payment, and 105 31 excluding all of the following: 105 32 a. Title fee. 105 33 b. Registration fees. 105 34 c. Vehicle lease tax pursuant to this section. 105 35 d. Federal excise taxes attributable to the sale 105 36 of the vehicle to the owner or to the lease of the 105 37 vehicle by the owner. 105 38 e. Optional service or warranty contracts subject 105 39 to tax pursuant to section 423.2, subsection 1. 105 40 f. Insurance. 105 41 g. Manufacturer's rebate. 105 42 h. Refundable deposit. 105 43 i. Finance charges, if any, on items listed in 105 44 paragraphs "a" through "h". 105 45 If any or all of the items in paragraphs "a" 105 46 through "i" are excluded from the taxable lease price, 105 47 the owner shall maintain adequate records of the 105 48 amounts of those items. If the parties to a lease 105 49 enter into an agreement providing that the tax imposed 105 50 under this statute is to be paid by the lessee or 106 1 included in the monthly lease payments to be paid by 106 2 the lessee, the total cost of the tax shall not be 106 3 included in the computation of lease price for the 106 4 purpose of taxation under this section. The county 106 5 treasurer, the state department of transportation, or 106 6 the department of revenue and finance shall require 106 7 every applicant for a registration receipt for a 106 8 vehicle subject to tax under this section to supply 106 9 information as the county treasurer or director deems 106 10 necessary as to the date of the lease transaction, the 106 11 lease price, and other information relative to the 106 12 lease of the vehicle. 106 13 3. On or before the tenth day of each month, the 106 14 county treasurer or the state department of 106 15 transportation shall remit to the department the 106 16 amount of the taxes collected during the preceding 106 17 month. 106 18 4. If the lease is terminated prior to the 106 19 termination date contained in the lease agreement, no 106 20 refund shall be allowed for tax previously paid under 106 21 this section, except as provided in section 322G.4. 106 22 Sec. 130. NEW SECTION. 423.28 SALES TAX REPORT 106 23 – DEDUCTION. 106 24 Motor vehicle or trailer dealers, in making their 106 25 reports and returns to the department for the purpose 106 26 of paying the sales tax, shall be permitted to deduct 106 27 all sales prices from retail sales of vehicles subject 106 28 to registration or subject only to the issuance of a 106 29 certificate of title. Sales prices from sales of 106 30 vehicles subject to registration or subject only to 106 31 the issuance of a certificate of title are exempted 106 32 from the sales tax, but, if required by the director, 106 33 the sales prices shall be included in the returns made 106 34 by motor vehicle or trailer dealers under subchapter 106 35 II, and proper deductions taken pursuant to this 106 36 section. 106 37 Sec. 131. NEW SECTION. 423.29 COLLECTIONS BY 106 38 SELLERS. 106 39 Every seller who is a retailer and who is making 106 40 taxable sales of tangible personal property in Iowa 106 41 shall, at the time of selling the property, collect 106 42 the sales tax. Every seller who is a retailer 106 43 maintaining a place of business in this state and 106 44 selling tangible personal property for use in Iowa 106 45 shall, at the time of making the sale, whether within 106 46 or without the state, collect the use tax. Sellers 106 47 required to collect sales or use tax shall give to any 106 48 purchaser a receipt for the tax collected in the 106 49 manner and form prescribed by the director. 106 50 Every seller who is a retailer furnishing taxable 107 1 services in Iowa and every seller who is a retailer 107 2 maintaining a place of business in this state and 107 3 furnishing taxable services in Iowa or services 107 4 outside Iowa if the product or result of the service 107 5 is used in Iowa shall be subject to the provisions of 107 6 the preceding paragraph. 107 7 Sec. 132. NEW SECTION. 423.30 FOREIGN SELLERS 107 8 NOT REGISTERED UNDER THE AGREEMENT. 107 9 The director may, upon application, authorize the 107 10 collection of the use tax by any seller who is a 107 11 retailer not maintaining a place of business within 107 12 this state and not registered under the agreement, 107 13 who, to the satisfaction of the director, furnishes 107 14 adequate security to ensure collection and payment of 107 15 the tax. Such sellers shall be issued, without 107 16 charge, permits to collect tax subject to any 107 17 regulations which the director shall prescribe. When 107 18 so authorized, it shall be the duty of foreign sellers 107 19 to collect the tax upon all tangible personal property 107 20 sold, to the retailer's knowledge, for use within this 107 21 state, in the same manner and subject to the same 107 22 requirements as a retailer maintaining a place of 107 23 business within this state. The authority and permit 107 24 may be canceled when, at any time, the director 107 25 considers the security inadequate, or that tax can 107 26 more effectively be collected from the person using 107 27 property in this state. 107 28 The discretionary power granted in this section is 107 29 extended to apply in the case of foreign retailers 107 30 furnishing services enumerated in section 423.2. 107 31 Sec. 133. NEW SECTION. 423.31 FILING OF SALES 107 32 TAX RETURNS AND PAYMENT OF SALES TAX. 107 33 1. Each person subject to this section and section 107 34 423.36 and in accordance with the provisions of this 107 35 section and section 423.36 shall, on or before the 107 36 last day of the month following the close of each 107 37 calendar quarter during which such person is or has 107 38 become or ceased being subject to the provisions of 107 39 this section and section 423.36, make, sign, and file 107 40 a return for the calendar quarter in the form as may 107 41 be required. Returns shall show information relating 107 42 to sales prices including goods, wares, and services 107 43 converted to the use of such person, the amounts of 107 44 sales prices excluded and exempt from the tax, the 107 45 amounts of sales prices subject to tax, a calculation 107 46 of tax due, and any other information for the period 107 47 covered by the return as may be required. Returns 107 48 shall be signed by the retailer or the retailer's 107 49 authorized agent and must be certified by the retailer 107 50 to be correct in accordance with forms and rules 108 1 prescribed by the director. 108 2 2. Persons required to file, or committed to file 108 3 by reason of voluntary action or by order of the 108 4 department, deposits of taxes due under this 108 5 subchapter shall be entitled to take credit against 108 6 the total quarterly amount of tax due such amount as 108 7 shall have been deposited by such persons during that 108 8 calendar quarter. The balance remaining due after 108 9 such credit for deposits shall be entered on the 108 10 return. However, such person may be granted an 108 11 extension of time not exceeding thirty days for filing 108 12 the quarterly return, upon a proper showing of 108 13 necessity. If an extension is granted, such person 108 14 shall have paid by the twentieth day of the month 108 15 following the close of such quarter ninety percent of 108 16 the estimated tax due. 108 17 3. The sales tax forms prescribed by the director 108 18 shall be referred to as "retailers tax deposit". 108 19 Deposit forms shall be signed by the retailer or the 108 20 retailer's duly authorized agent, and shall be duly 108 21 certified by the retailer or agent to be correct. The 108 22 director may authorize incorporated banks and trust 108 23 companies or other depositories authorized by law 108 24 which are depositories or financial agents of the 108 25 United States, or of this state, to receive any sales 108 26 tax imposed under this chapter, in the manner, at the 108 27 times, and under the conditions the director 108 28 prescribes. The director shall prescribe the manner, 108 29 times, and conditions under which the receipt of the 108 30 tax by those depositories is to be treated as payment 108 31 of the tax to the department. 108 32 4. Every retailer at the time of making any return 108 33 required by this section shall compute and pay to the 108 34 department the tax due for the preceding period. The 108 35 tax on sales prices from the sale or rental of 108 36 tangible personal property under a consumer rental 108 37 purchase agreement as defined in section 537.3604, 108 38 subsection 8, is payable in the tax period of receipt. 108 39 5. Upon making application and receiving approval 108 40 from the director, a parent corporation and its 108 41 affiliated corporations that make retail sales of 108 42 tangible personal property or taxable enumerated 108 43 services may make deposits and file a consolidated 108 44 sales tax return for the affiliated group, pursuant to 108 45 rules adopted by the director. A parent corporation 108 46 and each affiliate corporation that files a 108 47 consolidated return are jointly and severally liable 108 48 for all tax, penalty, and interest found due for the 108 49 tax period for which a consolidated return is filed or 108 50 required to be filed. 109 1 A business required to file a consolidated sales 109 2 tax return shall file a form entitled "schedule of 109 3 consolidated business locations" with its quarterly 109 4 sales tax return that shows the taxpayer's 109 5 consolidated permit number, the permit number for each 109 6 Iowa business location, the state sales tax amount by 109 7 business location, and the amount of state sales tax 109 8 due on goods consumed that are not assigned to a 109 9 specific business location. Consolidated quarterly 109 10 sales tax returns that are not accompanied by the 109 11 schedule of consolidated business locations form are 109 12 considered incomplete and are subject to penalty under 109 13 section 421.27. 109 14 6. If necessary or advisable in order to insure 109 15 the payment of the tax, the director may require 109 16 returns and payment of the tax to be made for other 109 17 than quarterly periods, the provisions of this 109 18 section, or other provision to the contrary 109 19 notwithstanding. 109 20 Sec. 134. NEW SECTION. 423.32 FILING OF USE TAX 109 21 RETURNS AND PAYMENT OF USE TAX. 109 22 1. A retailer maintaining a place of business in 109 23 this state who is required to collect or a user who is 109 24 required to pay the use tax or a foreign retailer 109 25 authorized, pursuant to section 423.30, to collect the 109 26 use tax, shall remit to the department the amount of 109 27 tax on or before the last day of the month following 109 28 each calendar quarterly period. However, a retailer 109 29 who collects or owes more than fifteen hundred dollars 109 30 in use taxes in a month shall deposit with the 109 31 department or in a depository authorized by law and 109 32 designated by the director, the amount collected or 109 33 owed, with a deposit form for the month as prescribed 109 34 by the director. 109 35 a. The deposit form is due on or before the 109 36 twentieth day of the month following the month of 109 37 collection, except a deposit is not required for the 109 38 third month of the calendar quarter, and the total 109 39 quarterly amount, less the amounts deposited for the 109 40 first two months of the quarter, is due with the 109 41 quarterly report on the last day of the month 109 42 following the month of collection. At that time, the 109 43 retailer shall file with the department a return for 109 44 the preceding quarterly period in the form prescribed 109 45 by the director showing the purchase price of the 109 46 tangible personal property sold by the retailer during 109 47 the preceding quarterly period, the use of which is 109 48 subject to the use tax imposed by this chapter, and 109 49 other information the director deems necessary for the 109 50 proper administration of the use tax. 110 1 b. The return shall be accompanied by a remittance 110 2 of the use tax for the period covered by the return. 110 3 If necessary in order to ensure payment to the state 110 4 of the tax, the director may in any or all cases 110 5 require returns and payments to be made for other than 110 6 quarterly periods. The director, upon request and a 110 7 proper showing of necessity, may grant an extension of 110 8 time not to exceed thirty days for making any return 110 9 and payment. Returns shall be signed, in accordance 110 10 with forms and rules prescribed by the director, by 110 11 the retailer or the retailer's authorized agent, and 110 12 shall be certified by the retailer or agent to be 110 13 correct. 110 14 2. If it is reasonably expected, as determined by 110 15 rules prescribed by the director, that a retailer's 110 16 annual sales or use tax liability will not exceed one 110 17 hundred twenty dollars for a calendar year, the 110 18 retailer may request and the director may grant 110 19 permission to the retailer, in lieu of the quarterly 110 20 filing and remitting requirements set out elsewhere in 110 21 this section, to file the return required by and remit 110 22 the sales or use tax due under this section on a 110 23 calendar-year basis. The return and tax are due and 110 24 payable no later than January 31 following each 110 25 calendar year in which the retailer carries on 110 26 business. 110 27 3. The director, in cooperation with the 110 28 department of management, may periodically change the 110 29 filing and remittance thresholds by administrative 110 30 rule if in the best interests of the state and 110 31 taxpayer to do so. 110 32 Sec. 135. NEW SECTION. 423.33 LIABILITY OF 110 33 PERSONS OTHER THAN RETAILERS FOR PAYMENT OF SALES OR 110 34 USE TAX. 110 35 1. LIABILITY OF PURCHASER FOR SALES TAX. If a 110 36 purchaser fails to pay sales tax to the retailer 110 37 required to collect the tax, then in addition to all 110 38 of the rights, obligations, and remedies provided, the 110 39 tax is payable by the purchaser directly to the 110 40 department, and sections 423.31, 423.32, 423.37, 110 41 423.38, 423.39, 423.40, 423.41, and 423.42 apply to 110 42 the purchaser. For failure to pay, the retailer and 110 43 purchaser are liable, unless the circumstances 110 44 described in section 421.60, subsection 2, paragraph 110 45 "m", or section 423.45, subsection 4, paragraph "b" or 110 46 "e", or subsection 5, paragraph "c" or "e", are 110 47 applicable. 110 48 2. IMMEDIATE SUCCESSOR LIABILITY FOR SALES OR USE 110 49 TAX. If a retailer sells the retailer's business or 110 50 stock of goods or quits the business, the retailer 111 1 shall prepare a final return and pay all sales or use 111 2 tax due within the time required by law. The 111 3 immediate successor to the retailer, if any, shall 111 4 withhold a sufficient portion of the purchase price, 111 5 in money or money's worth, to pay the amount of 111 6 delinquent tax, interest, or penalty due and unpaid. 111 7 If the immediate successor of the business or stock of 111 8 goods intentionally fails to withhold the amount due 111 9 from the purchase price as provided in this 111 10 subsection, the immediate successor is personally 111 11 liable for the payment of delinquent taxes, interest, 111 12 and penalty accrued and unpaid on account of the 111 13 operation of the business by the immediate former 111 14 retailer, except when the purchase is made in good 111 15 faith as provided in section 421.28. However, a 111 16 person foreclosing on a valid security interest or 111 17 retaking possession of premises under a valid lease is 111 18 not an "immediate successor" for purposes of this 111 19 section. The department may waive the liability of 111 20 the immediate successor under this subsection if the 111 21 immediate successor exercised good faith in 111 22 establishing the amount of the previous liability. 111 23 3. EVENT SPONSOR'S LIABILITY FOR SALES TAX. A 111 24 person sponsoring a flea market or a craft, antique, 111 25 coin, or stamp show or similar event shall obtain from 111 26 every retailer selling tangible personal property or 111 27 taxable services at the event proof that the retailer 111 28 possesses a valid sales tax permit or secure from the 111 29 retailer a statement, taken in good faith, that 111 30 property or services offered for sale are not subject 111 31 to sales tax. Failure to do so renders a sponsor of 111 32 the event liable for payment of any sales tax, 111 33 interest, and penalty due and owing from any retailer 111 34 selling property or services at the event. Sections 111 35 423.31, 423.32, 423.37, 423.38, 423.39, 423.40, 111 36 423.41, and 423.42 apply to the sponsors. For 111 37 purposes of this subsection, a person sponsoring a 111 38 flea market or a craft, antique, coin, or stamp show 111 39 or similar event does not include an organization 111 40 which sponsors an event less than three times a year 111 41 or a state, county, or district agricultural fair. 111 42 Sec. 136. NEW SECTION. 423.34 LIABILITY OF USER. 111 43 Any person who uses any property or services 111 44 enumerated in section 423.2 upon which the use tax has 111 45 not been paid, either to the county treasurer or to a 111 46 retailer or direct to the department as required by 111 47 this subchapter, shall be liable for the payment of 111 48 tax, and shall on or before the last day of the month 111 49 next succeeding each quarterly period pay the use tax 111 50 upon all property or services used by the person 112 1 during the preceding quarterly period in the manner 112 2 and accompanied by such returns as the director shall 112 3 prescribe. All of the provisions of sections 423.32 112 4 and 423.33 with reference to the returns and payments 112 5 shall be applicable to the returns and payments 112 6 required by this section. 112 7 Sec. 137. NEW SECTION. 423.35 POSTING OF BOND TO 112 8 SECURE PAYMENT. 112 9 The director may, when necessary and advisable in 112 10 order to secure the collection of the sales or use 112 11 tax, authorize any person subject to either tax, and 112 12 any retailer required or authorized to collect those 112 13 taxes pursuant to the provisions of section 423.14, to 112 14 file with the department a bond, issued by a surety 112 15 company authorized to transact business in this state 112 16 and approved by the insurance commissioner as to 112 17 solvency and responsibility, in an amount as the 112 18 director may fix, to secure the payment of any tax, 112 19 interest, or penalties due or which may become due 112 20 from such person. In lieu of a bond, securities 112 21 approved by the director, in an amount which the 112 22 director may prescribe, may be deposited with the 112 23 department, which securities shall be kept in the 112 24 custody of the department and may be sold by the 112 25 director at public or private sale, without notice to 112 26 the depositor, if it becomes necessary to do so in 112 27 order to recover any tax, interest, or penalties due. 112 28 Upon the sale, the surplus, if any, above the amounts 112 29 due under this chapter shall be returned to the person 112 30 who deposited the securities. 112 31 Sec. 138. NEW SECTION. 423.36 PERMITS REQUIRED 112 32 TO COLLECT SALES OR USE TAX – APPLICATIONS – 112 33 REVOCATION. 112 34 1. A person shall not engage in or transact 112 35 business as a retailer making taxable sales of 112 36 tangible personal property or furnishing services 112 37 within this state or as a retailer making taxable 112 38 sales of tangible personal property or furnishing 112 39 services for use within this state, unless a permit 112 40 has been issued to the retailer under this section, 112 41 except as provided in subsection 6. Every person 112 42 desiring to engage in or transact business as a 112 43 retailer shall file with the department an application 112 44 for a permit to collect sales or use tax. Every 112 45 application for a sales or use tax permit shall be 112 46 made upon a form prescribed by the director and shall 112 47 set forth any information the director may require. 112 48 The application shall be signed by an owner of the 112 49 business if a natural person; in the case of a 112 50 retailer which is an association or partnership, by a 113 1 member or partner; and in the case of a retailer which 113 2 is a corporation, by an executive officer or some 113 3 person specifically authorized by the corporation to 113 4 sign the application, to which shall be attached the 113 5 written evidence of the person's authority. 113 6 2. To collect sales or use tax, the applicant must 113 7 have a permit for each place of business in the state 113 8 of Iowa. The department may deny a permit to an 113 9 applicant who is substantially delinquent in paying a 113 10 tax due, or the interest or penalty on the tax, 113 11 administered by the department at the time of 113 12 application. If the applicant is a partnership, a 113 13 permit may be denied if a partner is substantially 113 14 delinquent in paying any delinquent tax, penalty, or 113 15 interest. If the applicant is a corporation, a permit 113 16 may be denied if any officer having a substantial 113 17 legal or equitable interest in the ownership of the 113 18 corporation owes any delinquent tax, penalty, or 113 19 interest. 113 20 3. The department shall grant and issue to each 113 21 applicant a permit for each place of business in this 113 22 state where sales or use tax is collected. A permit 113 23 is not assignable and is valid only for the person in 113 24 whose name it is issued and for the transaction of 113 25 business at the place designated or at a place of 113 26 relocation within the state if the ownership remains 113 27 the same. 113 28 If an applicant is making sales outside Iowa for 113 29 use in this state or furnishing services outside Iowa, 113 30 the product or result of which will be used in this 113 31 state, that applicant shall be issued one use tax 113 32 permit by the department applicable to these out-of- 113 33 state sales or services. 113 34 4. Permits issued under this section are valid and 113 35 effective until revoked by the department. 113 36 5. If the holder of a permit fails to comply with 113 37 any of the provisions of this subchapter or of 113 38 subchapter II or III or any order or rule of the 113 39 department adopted under those subchapters or is 113 40 substantially delinquent in the payment of a tax 113 41 administered by the department or the interest or 113 42 penalty on the tax, or if the person is a corporation 113 43 and if any officer having a substantial legal or 113 44 equitable interest in the ownership of the corporation 113 45 owes any delinquent tax of the permit-holding 113 46 corporation, or interest or penalty on the tax, 113 47 administered by the department, the director may 113 48 revoke the permit. The director shall send notice by 113 49 mail to a permit holder informing that person of the 113 50 director's intent to revoke the permit and of the 114 1 permit holder's right to a hearing on the matter. If 114 2 the permit holder petitions the director for a hearing 114 3 on the proposed revocation, after giving ten days' 114 4 notice of the time and place of the hearing in 114 5 accordance with section 17A.18, subsection 3, the 114 6 matter may be heard and a decision rendered. The 114 7 director may restore permits after revocation. The 114 8 director shall adopt rules setting forth the period of 114 9 time a retailer must wait before a permit may be 114 10 restored or a new permit may be issued. The waiting 114 11 period shall not exceed ninety days from the date of 114 12 the revocation of the permit. 114 13 6. Sellers who are not regularly engaged in 114 14 selling at retail and do not have a permanent place of 114 15 business, but who are temporarily engaged in selling 114 16 from trucks, portable roadside stands, concessionaires 114 17 at state, county, district, or local fairs, carnivals, 114 18 or the like, shall report and remit the sales tax on a 114 19 temporary basis, under rules the director shall 114 20 provide for the efficient collection of the sales tax. 114 21 This subsection applies to sellers who are temporarily 114 22 engaged in furnishing services. 114 23 Persons engaged in selling tangible personal 114 24 property or furnishing services shall not be required 114 25 to obtain or retain a sales tax permit for a place of 114 26 business at which taxable sales of tangible personal 114 27 property or taxable performance of services will not 114 28 occur. 114 29 7. The provisions of subsection 1, dealing with 114 30 the lawful right of a retailer to transact business, 114 31 as applicable, apply to persons having receipts from 114 32 furnishing services enumerated in section 423.2, 114 33 except that a person holding a permit pursuant to 114 34 subsection 1 shall not be required to obtain any 114 35 separate sales tax permit for the purpose of engaging 114 36 in business involving the services. 114 37 8. a. Except as provided in paragraph "b", 114 38 purchasers, users, and consumers of tangible personal 114 39 property or enumerated services taxed pursuant to 114 40 subchapter II or III of this chapter or chapters 423B 114 41 and 423E may be authorized, pursuant to rules adopted 114 42 by the director, to remit tax owed directly to the 114 43 department instead of the tax being collected and paid 114 44 by the seller. To qualify for a direct pay tax 114 45 permit, the purchaser, user, or consumer must accrue a 114 46 tax liability of more than four thousand dollars in 114 47 tax under subchapters II and III in a semimonthly 114 48 period and make deposits and file returns pursuant to 114 49 section 423.31. This authority shall not be granted 114 50 or exercised except upon application to the director 115 1 and then only after issuance by the director of a 115 2 direct pay tax permit. 115 3 b. The granting of a direct pay tax permit is not 115 4 authorized for any of the following: 115 5 (1) Taxes imposed on the sales, furnishing, or 115 6 service of gas, electricity, water, heat, pay 115 7 television service, and communication service. 115 8 (2) Taxes imposed under sections 423.26 and 423.27 115 9 and chapter 423C. 115 10 Sec. 139. NEW SECTION. 423.37 FAILURE TO FILE 115 11 SALES OR USE TAX RETURNS – INCORRECT RETURNS. 115 12 1. As soon as practicable after a return is filed 115 13 and in any event within three years after the return 115 14 is filed, the department shall examine it, assess and 115 15 determine the tax due if the return is found to be 115 16 incorrect, and give notice to the person liable for 115 17 the tax of the assessment and determination as 115 18 provided in subsection 2. The period for the 115 19 examination and determination of the correct amount of 115 20 tax is unlimited in the case of a false or fraudulent 115 21 return made with the intent to evade tax or in the 115 22 case of a failure to file a return. 115 23 2. If a return required by this subchapter is not 115 24 filed, or if a return when filed is incorrect or 115 25 insufficient and the maker fails to file a corrected 115 26 or sufficient return within twenty days after the same 115 27 is required by notice from the department, the 115 28 department shall determine the amount of tax due from 115 29 information as the department may be able to obtain 115 30 and, if necessary, may estimate the tax on the basis 115 31 of external indices, such as number of employees of 115 32 the person concerned, rentals paid by the person, 115 33 stock on hand, or other factors. The department shall 115 34 give notice of the determination to the person liable 115 35 for the tax. The determination shall fix the tax 115 36 unless the person against whom it is assessed shall, 115 37 within sixty days after the giving of notice of the 115 38 determination, apply to the director for a hearing or 115 39 unless the taxpayer contests the determination by 115 40 paying the tax, interest, and penalty and timely 115 41 filing a claim for refund. At the hearing evidence 115 42 may be offered to support the determination or to 115 43 prove that it is incorrect. After the hearing the 115 44 director shall give notice of the decision to the 115 45 person liable for the tax. 115 46 3. The three-year period of limitation provided in 115 47 subsection 1 may be extended by a taxpayer by signing 115 48 a waiver agreement form to be provided by the 115 49 department. The agreement shall stipulate the period 115 50 of extension and the tax period to which the extension 116 1 applies. The agreement shall also provide that a 116 2 claim for refund may be filed by the taxpayer at any 116 3 time during the period of extension. 116 4 Sec. 140. NEW SECTION. 423.38 JUDICIAL REVIEW. 116 5 1. Judicial review of actions of the director may 116 6 be sought in accordance with the terms of the Iowa 116 7 administrative procedure Act. 116 8 2. For cause and upon a showing by the director 116 9 that collection of the tax in dispute is in doubt, the 116 10 court may order the petitioner to file with the clerk 116 11 a bond for the use of the respondent, with sureties 116 12 approved by the clerk, in the amount of tax appealed 116 13 from, conditioned that the petitioner shall perform 116 14 the orders of the court. 116 15 3. An appeal may be taken by the taxpayer or the 116 16 director to the supreme court of this state 116 17 irrespective of the amount involved. 116 18 Sec. 141. NEW SECTION. 423.39 SERVICE OF 116 19 NOTICES. 116 20 1. A notice authorized or required under this 116 21 subchapter may be given by mailing the notice to the 116 22 person for whom it is intended, addressed to that 116 23 person at the address given in the last return filed 116 24 by the person pursuant to this subchapter, or if no 116 25 return has been filed, then to any address obtainable. 116 26 The mailing of the notice is presumptive evidence of 116 27 the receipt of the notice by the person to whom 116 28 addressed. Any period of time which is determined 116 29 according to this subchapter by the giving of notice 116 30 commences to run from the date of mailing of the 116 31 notice. 116 32 2. The provisions of the Code relative to the 116 33 limitation of time for the enforcement of a civil 116 34 remedy shall not apply to any proceeding or action 116 35 taken to levy, appraise, assess, determine, or enforce 116 36 the collection of any tax or penalty provided by this 116 37 chapter. 116 38 Sec. 142. NEW SECTION. 423.40 PENALTIES – 116 39 OFFENSES – LIMITATION. 116 40 1. In addition to the sales or use tax or 116 41 additional sales or use tax, the taxpayer shall pay a 116 42 penalty as provided in section 421.27. The taxpayer 116 43 shall also pay interest on the sales or use tax or 116 44 additional sales or use tax at the rate in effect 116 45 under section 421.7 for each month counting each 116 46 fraction of a month as an entire month, computed from 116 47 the date the semimonthly or monthly tax deposit form 116 48 or return was required to be filed. The penalty and 116 49 interest shall be paid to the department and disposed 116 50 of in the same manner as other receipts under this 117 1 subchapter. Unpaid penalties and interest may be 117 2 enforced in the same manner as the taxes imposed by 117 3 this chapter. 117 4 2. a. Any person who knowingly sells tangible 117 5 personal property, tickets or admissions to places of 117 6 amusement and athletic events, or gas, water, 117 7 electricity, or communication service at retail, or 117 8 engages in the furnishing of services enumerated in 117 9 section 423.2, in this state without procuring a 117 10 permit to collect tax, as provided in section 423.36, 117 11 or who violates section 423.24 and the officers of any 117 12 corporation who so act are guilty of a serious 117 13 misdemeanor. 117 14 b. A person who knowingly sells tangible personal 117 15 property, tickets or admissions to places of amusement 117 16 and athletic events, or gas, water, electricity, or 117 17 communication service at retail, or engages in the 117 18 furnishing of services enumerated in section 423.2, in 117 19 this state after the person's sales tax permit has 117 20 been revoked and before it has been restored as 117 21 provided in section 423.36, subsection 5, and the 117 22 officers of any corporation who so act are guilty of 117 23 an aggravated misdemeanor. 117 24 3. A person who willfully attempts in any manner 117 25 to evade any tax imposed by this chapter or the 117 26 payment of the tax or a person who makes or causes to 117 27 be made a false or fraudulent semimonthly or monthly 117 28 tax deposit form or return with intent to evade any 117 29 tax imposed by subchapter II or III or the payment of 117 30 the tax is guilty of a class "D" felony. 117 31 4. The certificate of the director to the effect 117 32 that a tax has not been paid, that a return has not 117 33 been filed, or that information has not been supplied 117 34 pursuant to the provisions of this subchapter shall be 117 35 prima facie evidence thereof. 117 36 5. A person required to pay sales or use tax, or 117 37 to make, sign, or file a tax deposit form or return or 117 38 supplemental return, who willfully makes a false or 117 39 fraudulent tax deposit form or return, or willfully 117 40 fails to pay at least ninety percent of the tax or 117 41 willfully fails to make, sign, or file the tax deposit 117 42 form or return, at the time required by law, is guilty 117 43 of a fraudulent practice. 117 44 6. A prosecution for an offense specified in this 117 45 section shall be commenced within six years after its 117 46 commission. 117 47 Sec. 143. NEW SECTION. 423.41 BOOKS – 117 48 EXAMINATION. 117 49 Every retailer required or authorized to collect 117 50 taxes imposed by this chapter and every person using 118 1 in this state tangible personal property, services, or 118 2 the product of services shall keep records, receipts, 118 3 invoices, and other pertinent papers as the director 118 4 shall require, in the form that the director shall 118 5 require, for as long as the director has the authority 118 6 to examine and determine tax due. The director or any 118 7 duly authorized agent of the department may examine 118 8 the books, papers, records, and equipment of any 118 9 person either selling tangible personal property or 118 10 services or liable for the tax imposed by this 118 11 chapter, and investigate the character of the business 118 12 of any person in order to verify the accuracy of any 118 13 return made, or if a return was not made by the 118 14 person, ascertain and determine the amount due under 118 15 this chapter. These books, papers, and records shall 118 16 be made available within this state for examination 118 17 upon reasonable notice when the director deems it 118 18 advisable and so orders. The preceding requirements 118 19 shall likewise apply to users and persons furnishing 118 20 services enumerated in section 423.2. 118 21 Sec. 144. NEW SECTION. 423.42 STATUTES 118 22 APPLICABLE. 118 23 1. The director shall administer the taxes imposed 118 24 by subchapters II and III in the same manner and 118 25 subject to all the provisions of, and all of the 118 26 powers, duties, authority, and restrictions contained 118 27 in, section 422.25, subsection 4, section 422.30, and 118 28 sections 422.67 through 422.75. 118 29 2. All the provisions of section 422.26 shall 118 30 apply in respect to the taxes and penalties imposed by 118 31 subchapters II and III and this subchapter, except 118 32 that, as applied to any tax imposed by subchapters II 118 33 and III, the lien provided in section 422.26 shall be 118 34 prior and paramount over all subsequent liens upon any 118 35 personal property within this state, or right to such 118 36 personal property, belonging to the taxpayer without 118 37 the necessity of recording as provided in section 118 38 422.26. The requirements for recording shall, as 118 39 applied to the taxes imposed by subchapters II and 118 40 III, apply only to the liens upon real property. When 118 41 requested to do so by any person from whom a taxpayer 118 42 is seeking credit, or with whom the taxpayer is 118 43 negotiating the sale of any personal property, or by 118 44 any other person having a legitimate interest in such 118 45 information, the director shall, upon being satisfied 118 46 that such a situation exists, inform that person as to 118 47 the amount of unpaid taxes due by such taxpayer under 118 48 the provisions of subchapters II and III. The giving 118 49 of this information under these circumstances shall 118 50 not be deemed a violation of section 422.72 as applied 119 1 to subchapters II and III. 119 2 Sec. 145. NEW SECTION. 423.43 DEPOSIT OF REVENUE 119 3 – APPROPRIATIONS. 119 4 Except as otherwise provided in section 312.2, 119 5 subsection 15, all revenues derived from the use tax 119 6 on motor vehicles, trailers, and motor vehicle 119 7 accessories and equipment as collected pursuant to 119 8 sections 423.26 and 423.27 shall be deposited and 119 9 credited to the road use tax fund and shall be used 119 10 exclusively for the construction, maintenance, and 119 11 supervision of public highways. 119 12 1. Notwithstanding any provision of this section 119 13 which provides that all revenues derived from the use 119 14 tax on motor vehicles, trailers, and motor vehicle 119 15 accessories and equipment as collected pursuant to 119 16 sections 423.26 and 423.27 shall be deposited and 119 17 credited to the road use tax fund, eighty percent of 119 18 the revenues shall be deposited and credited as 119 19 follows: 119 20 a. Twenty-five percent of all such revenue, up to 119 21 a maximum of four million two hundred fifty thousand 119 22 dollars per quarter, shall be deposited into and 119 23 credited to the Iowa comprehensive petroleum 119 24 underground storage tank fund created in section 119 25 455G.3, and the moneys so deposited are a continuing 119 26 appropriation for expenditure under chapter 455G, and 119 27 moneys so appropriated shall not be used for other 119 28 purposes. 119 29 b. Any such revenues remaining shall be credited 119 30 to the road use tax fund. 119 31 2. Notwithstanding any other provision of this 119 32 section that provides that all revenue derived from 119 33 the use tax on motor vehicles, trailers, and motor 119 34 vehicle accessories and equipment as collected 119 35 pursuant to section 423.26 shall be deposited and 119 36 credited to the road use tax fund, twenty percent of 119 37 the revenues shall be credited and deposited as 119 38 follows: one-half to the road use tax fund and one- 119 39 half to the primary road fund to be used for the 119 40 commercial and industrial highway network. 119 41 3. All other revenue arising under the operation 119 42 of this chapter shall be credited to the general fund 119 43 of the state. 119 44 Sec. 146. NEW SECTION. 423.44 REIMBURSEMENT FOR 119 45 PRIMARY ROAD FUND. 119 46 From moneys deposited into the road use tax fund, 119 47 the department may credit to the primary road fund any 119 48 amount of revenues derived from the use tax on motor 119 49 vehicles, trailers, and motor vehicle accessories and 119 50 equipment as collected pursuant to sections 423.26 and 120 1 423.27 to the extent necessary to reimburse that fund 120 2 for the expenditures not otherwise eligible to be made 120 3 from the primary road fund, which are made for 120 4 repairing, improving, and maintaining bridges over the 120 5 rivers bordering the state. Expenditures for those 120 6 portions of bridges within adjacent states may be 120 7 included when they are made pursuant to an agreement 120 8 entered into under section 313.63, 313A.34, or 314.10. 120 9 Sec. 147. NEW SECTION. 423.45 REFUNDS – 120 10 EXEMPTION CERTIFICATES. 120 11 1. If an amount of tax represented by a retailer 120 12 to a consumer or user as constituting tax due is 120 13 computed upon a sales price that is not taxable or the 120 14 amount represented is in excess of the actual taxable 120 15 amount and the amount represented is actually paid by 120 16 the consumer or user to the retailer, the excess 120 17 amount of tax paid shall be returned to the consumer 120 18 or user upon notification to the retailer by the 120 19 department that an excess payment exists. 120 20 2. If an amount of tax represented by a retailer 120 21 to a consumer or user as constituting tax due is 120 22 computed upon a sales price that is not taxable or the 120 23 amount represented is in excess of the actual taxable 120 24 amount and the amount represented is actually paid by 120 25 the consumer or user to the retailer, the excess 120 26 amount of tax paid shall be returned to the consumer 120 27 or user upon proper notification to the retailer by 120 28 the consumer or user that an excess payment exists. 120 29 "Proper" notification is written notification which 120 30 allows a retailer at least sixty days to respond and 120 31 which contains enough information to allow a retailer 120 32 to determine the validity of a consumer's or user's 120 33 claim that an excess amount of tax has been paid. No 120 34 cause of action shall accrue against a retailer for 120 35 excess tax paid until sixty days after proper notice 120 36 has been given the retailer by the consumer or user. 120 37 3. In the circumstances described in subsections 1 120 38 and 2, a retailer has the option to either return any 120 39 excess amount of tax paid to a consumer or user, or to 120 40 remit the amount which a consumer or user has paid to 120 41 the retailer to the department. 120 42 4. a. The department shall issue or the seller 120 43 may separately provide exemption certificates in the 120 44 form prescribed by the director, including 120 45 certificates not made of paper, which conform to the 120 46 requirements of paragraph "c", to assist retailers in 120 47 properly accounting for nontaxable sales of tangible 120 48 personal property or services to purchasers for a 120 49 nontaxable purpose. The department shall also allow 120 50 the use of exemption certificates for those 121 1 circumstances in which a sale is taxable but the 121 2 seller is not obligated to collect tax from the buyer. 121 3 b. The sales tax liability for all sales of 121 4 tangible personal property and all sales of services 121 5 is upon the seller and the purchaser unless the seller 121 6 takes in good faith from the purchaser a valid 121 7 exemption certificate stating under penalty of perjury 121 8 that the purchase is for a nontaxable purpose and is 121 9 not a retail sale as defined in section 423.1, or the 121 10 seller is not obligated to collect tax due, or unless 121 11 the seller takes a fuel exemption certificate pursuant 121 12 to subsection 5. If the tangible personal property or 121 13 services are purchased tax free pursuant to a valid 121 14 exemption certificate which is taken in good faith by 121 15 the seller, and the tangible personal property or 121 16 services are used or disposed of by the purchaser in a 121 17 nonexempt manner, the purchaser is solely liable for 121 18 the taxes and shall remit the taxes directly to the 121 19 department and sections 423.31, 423.32, 423.37, 121 20 423.38, 423.39, 423.40, 423.41, and 423.42 shall apply 121 21 to the purchaser. 121 22 c. A valid exemption certificate is an exemption 121 23 certificate which is complete and correct according to 121 24 the requirements of the director. 121 25 d. A valid exemption certificate is taken in good 121 26 faith by the seller when the seller has exercised that 121 27 caution and diligence which honest persons of ordinary 121 28 prudence would exercise in handling their own business 121 29 affairs, and includes an honesty of intention and 121 30 freedom from knowledge of circumstances which ought to 121 31 put one upon inquiry as to the facts. In order for a 121 32 seller to take a valid exemption certificate in good 121 33 faith, the seller must exercise reasonable prudence to 121 34 determine the facts supporting the valid exemption 121 35 certificate, and if any facts upon such certificate 121 36 would lead a reasonable person to further inquiry, 121 37 such inquiry must be made with an honest intent to 121 38 discover the facts. 121 39 e. If the circumstances change and as a result the 121 40 tangible personal property or services are used or 121 41 disposed of by the purchaser in a nonexempt manner or 121 42 the purchaser becomes obligated to pay the tax, the 121 43 purchaser is liable solely for the taxes and shall 121 44 remit the taxes directly to the department in 121 45 accordance with this subsection. 121 46 5. a. The department shall issue or the seller 121 47 may separately provide fuel exemption certificates in 121 48 the form prescribed by the director. 121 49 b. For purposes of this subsection: 121 50 (1) "Fuel" includes gas, electricity, water, heat, 122 1 steam, and any other tangible personal property 122 2 consumed in creating heat, power, or steam. 122 3 (2) "Fuel consumed in processing" means fuel used 122 4 or consumed for processing including grain drying, for 122 5 providing heat or cooling for livestock buildings or 122 6 for greenhouses or buildings or parts of buildings 122 7 dedicated to the production of flowering, ornamental, 122 8 or vegetable plants intended for sale in the ordinary 122 9 course of business, for use in aquaculture production, 122 10 or for generating electric current, or in implements 122 11 of husbandry engaged in agricultural production. 122 12 (3) "Fuel exemption certificate" means an 122 13 exemption certificate given by the purchaser under 122 14 penalty of perjury to assist retailers in properly 122 15 accounting for nontaxable sales of fuel consumed in 122 16 processing. 122 17 (4) "Substantial change" means a change in the use 122 18 or disposition of tangible personal property and 122 19 services by the purchaser such that the purchaser pays 122 20 less than ninety percent of the purchaser's actual 122 21 sales tax liability. A change includes a misstatement 122 22 of facts in an application made pursuant to paragraph 122 23 "d" or in a fuel exemption certificate. 122 24 c. The seller may accept a completed fuel 122 25 exemption certificate, as prepared by the purchaser, 122 26 for three years unless the purchaser files a new 122 27 completed exemption certificate. If the fuel is 122 28 purchased tax free pursuant to a fuel exemption 122 29 certificate which is taken by the seller, and the fuel 122 30 is used or disposed of by the purchaser in a nonexempt 122 31 manner, the purchaser is solely liable for the taxes, 122 32 and shall remit the taxes directly to the department 122 33 and sections 423.31, 423.32, 423.37, 423.38, 423.39, 122 34 423.40, 423.41, and 423.42 shall apply to the 122 35 purchaser. 122 36 d. The purchaser may apply to the department for 122 37 its review of the fuel exemption certificate. In this 122 38 event, the department shall review the fuel exemption 122 39 certificate within twelve months from the date of 122 40 application and determine the correct amount of the 122 41 exemption. If the amount determined by the department 122 42 is different than the amount that the purchaser claims 122 43 is exempt, the department shall promptly notify the 122 44 purchaser of the determination. Failure of the 122 45 department to make a determination within twelve 122 46 months from the date of application shall constitute a 122 47 determination that the fuel exemption certificate is 122 48 correct as submitted. A determination of exemption by 122 49 the department is final unless the purchaser appeals 122 50 to the director for a revision of the determination 123 1 within sixty days after the date of the notice of 123 2 determination. The director shall grant a hearing, 123 3 and upon the hearing, the director shall determine the 123 4 correct exemption and notify the purchaser of the 123 5 decision by mail. The decision of the director is 123 6 final unless the purchaser seeks judicial review of 123 7 the director's decision under section 423.38 within 123 8 sixty days after the date of the notice of the 123 9 director's decision. Unless there is a substantial 123 10 change, the department shall not impose penalties 123 11 pursuant to section 423.40 both retroactively to 123 12 purchases made after the date of application and 123 13 prospectively until the department gives notice to the 123 14 purchaser that a tax or additional tax is due, for 123 15 failure to remit any tax due which is in excess of a 123 16 determination made under this section. A 123 17 determination made by the department pursuant to this 123 18 subsection does not constitute an audit for purposes 123 19 of section 423.37. 123 20 e. If the circumstances change and the fuel is 123 21 used or disposed of by the purchaser in a nonexempt 123 22 manner, the purchaser is solely liable for the taxes 123 23 and shall remit the taxes directly to the department 123 24 in accordance with paragraph "c". 123 25 f. The purchaser shall attach documentation to the 123 26 fuel exemption certificate which is reasonably 123 27 necessary to support the exemption for fuel consumed 123 28 in processing. If the purchaser files a new exemption 123 29 certificate with the seller, documentation shall not 123 30 be required if the purchaser previously furnished the 123 31 seller with this documentation and substantial change 123 32 has not occurred since that documentation was 123 33 furnished or if fuel consumed in processing is 123 34 separately metered and billed by the seller. 123 35 6. Nothing in this section authorizes any cause of 123 36 action by any person to recover sales or use taxes 123 37 directly from the state or extends any person's time 123 38 to seek a refund of sales or use taxes which have been 123 39 collected and remitted to the state. 123 40 Sec. 148. NEW SECTION. 423.46 RATE AND BASE 123 41 CHANGES. 123 42 The department shall make a reasonable effort to 123 43 provide sellers with as much advance notice as 123 44 practicable of a rate change and to notify sellers of 123 45 legislative changes in the tax base and amendments to 123 46 sales and use tax rules. Failure of a seller to 123 47 receive notice or failure of this state to provide 123 48 notice or limit the effective date of a rate change 123 49 shall not relieve the seller of its obligation to 123 50 collect sales or use taxes for this state. 124 1 Sec. 149. NEW SECTION. 423.47 REFUNDS AND 124 2 CREDITS. 124 3 If it shall appear that, as a result of mistake, an 124 4 amount of tax, penalty, or interest has been paid 124 5 which was not due under the provisions of this 124 6 chapter, such amount shall be credited against any tax 124 7 due, or to become due, on the books of the department 124 8 from the person who made the erroneous payment, or 124 9 such amount shall be refunded to such person by the 124 10 department. A claim for refund or credit that has not 124 11 been filed with the department within three years 124 12 after the tax payment for which a refund or credit is 124 13 claimed became due, or one year after such tax payment 124 14 was made, whichever time is the later, shall not be 124 15 allowed by the director. 124 16 SUBCHAPTER VI 124 17 SALES AND USE TAX ACT – ADMINISTRATION OF 124 18 RETAILERS REGISTERED VOLUNTARILY UNDER THE 124 19 AGREEMENT 124 20 Sec. 150. NEW SECTION. 423.48 RESPONSIBILITIES 124 21 AND RIGHTS OF SELLERS REGISTERED UNDER THE AGREEMENT. 124 22 1. By registering under the agreement, the seller 124 23 agrees to collect and remit sales and use taxes for 124 24 all its taxable Iowa sales. Iowa's withdrawal from 124 25 the agreement or revocation of its membership in the 124 26 agreement shall not relieve a seller from its 124 27 responsibility to remit taxes previously collected on 124 28 behalf of this state. 124 29 2. The following provisions apply to any seller 124 30 who registers under the agreement: 124 31 a. The seller may register on-line. 124 32 b. Registration under the agreement and the 124 33 collection of Iowa sales and use taxes shall not be 124 34 used as factors in determining whether the seller has 124 35 nexus with Iowa for any tax. 124 36 c. If registered under the agreement with any 124 37 other member state, the seller is considered to be 124 38 registered in Iowa. 124 39 d. The seller is not required to pay registration 124 40 fees or other charges. 124 41 e. A written signature from the seller is not 124 42 required. 124 43 f. The seller may register by way of an agent. 124 44 The agent's appointment shall be in writing and 124 45 submitted to the department if requested by the 124 46 department. 124 47 g. The seller may cancel its registration at any 124 48 time under procedures adopted by the governing board 124 49 established pursuant to the agreement. Cancellation 124 50 does not relieve the seller of its liability for 125 1 remitting any Iowa taxes collected. 125 2 3. The following additional responsibilities and 125 3 rights apply to model sellers: 125 4 a. A model 1 seller's obligation to calculate, 125 5 collect, and remit sales and use taxes shall be 125 6 performed by its certified service provider, except 125 7 for the seller's obligation to remit tax on its own 125 8 purchases. As the seller's agent, the certified 125 9 service provider is liable for its model 1 seller's 125 10 sales and use tax due Iowa on all sales transactions 125 11 it processes for the seller except as set out in this 125 12 section. A seller that contracts with a certified 125 13 service provider is not liable to the state for sales 125 14 or use tax due on transactions processed by the 125 15 certified service provider unless the seller 125 16 misrepresents the types of items or services it sells 125 17 or commits fraud. In the absence of probable cause to 125 18 believe that the seller has committed fraud or made a 125 19 material misrepresentation, the seller is not subject 125 20 to audit on the transactions processed by the 125 21 certified service provider. A model 1 seller is 125 22 subject to audit for transactions not processed by the 125 23 certified service provider. The director is 125 24 authorized to perform a system check of the model 1 125 25 seller and review the seller's procedures to determine 125 26 if the certified service provider's system is 125 27 functioning properly and the extent to which the 125 28 seller's transactions are being processed by the 125 29 certified service provider. 125 30 b. A model 2 seller shall calculate the amount of 125 31 tax due on a transaction by the use of a certified 125 32 automated system, but shall collect and remit tax on 125 33 its own sales. A person that provides a certified 125 34 automated system is responsible for the proper 125 35 functioning of that system and is liable to this state 125 36 for underpayments of tax attributable to errors in the 125 37 functioning of the certified automated system. A 125 38 seller that uses a certified automated system remains 125 39 responsible and is liable to the state for reporting 125 40 and remitting tax. 125 41 c. A model 3 seller shall use its own proprietary 125 42 automated system to calculate tax due and collect and 125 43 remit tax on its own sales. A model 3 seller is 125 44 liable for the failure of its proprietary automated 125 45 system to meet the applicable performance standard. 125 46 Sec. 151. NEW SECTION. 423.49 RETURNS. 125 47 1. All model 1, 2, or 3 sellers are subject to all 125 48 of the following return requirements: 125 49 a. The seller is required to file only one return 125 50 per month for this state and for all taxing 126 1 jurisdictions within this state. 126 2 b. The date for filing returns shall be determined 126 3 under rules adopted by the director. However, in no 126 4 case shall the return be due earlier than the 126 5 twentieth day of the following month. 126 6 c. The director shall request additional 126 7 information returns. These returns shall not be 126 8 required more frequently than every six months. 126 9 2. Any registered seller which does not have a 126 10 legal obligation to register in this state and is not 126 11 a model 1, 2, or 3 seller is subject to all of the 126 12 following return requirements: 126 13 a. The seller is required to file a return within 126 14 one year of the month of initial registration and 126 15 shall file a return on an annual basis in succeeding 126 16 years. 126 17 b. In addition to the return required in paragraph 126 18 "a", if the seller accumulates more than one thousand 126 19 dollars in total state and local tax, the seller is 126 20 required to file a return in the following month. 126 21 c. The format of the return and the due date of 126 22 the initial return and the annual return shall be 126 23 determined under rules adopted by the department. 126 24 Sec. 152. NEW SECTION. 423.50 REMITTANCE OF 126 25 FUNDS. 126 26 1. Only one remittance of tax per return is 126 27 required except as provided in this subsection. 126 28 Sellers that collect more than thirty thousand dollars 126 29 in sales and use taxes for this state during the 126 30 preceding calendar year shall be required to make 126 31 additional remittances as required under rules adopted 126 32 by the director. The filing of a return is not 126 33 required with an additional remittance. 126 34 2. All remittances shall be remitted 126 35 electronically. 126 36 3. Electronic payments may be made either by 126 37 automated clearinghouse credit or automated 126 38 clearinghouse debit. Any data accompanying a 126 39 remittance must be formatted using uniform tax type 126 40 and payment codes approved by the governing board 126 41 established pursuant to the agreement. An alternative 126 42 method for making same-day payments shall be 126 43 determined under rules adopted by the director. 126 44 4. If a due date falls on a legal banking holiday 126 45 in this state, the taxes are due on the succeeding 126 46 business day. 126 47 Sec. 153. NEW SECTION. 423.51 ADMINISTRATION OF 126 48 EXEMPTIONS. 126 49 1. The following provisions shall apply when a 126 50 purchaser claims an exemption: 127 1 a. The seller shall obtain identifying information 127 2 of the purchaser and the reason for claiming a tax 127 3 exemption at the time of the purchase as determined by 127 4 the member states acting jointly. 127 5 b. A purchaser is not required to provide a 127 6 signature to claim an exemption from tax unless a 127 7 paper certificate is used. 127 8 c. The seller shall use the standard form for 127 9 claiming an exemption electronically as adopted 127 10 jointly by the member states. 127 11 d. The seller shall obtain the same information 127 12 for proof of a claimed exemption regardless of the 127 13 medium in which the transaction occurred. 127 14 e. The department may authorize a system wherein 127 15 the purchaser exempt from the payment of the tax is 127 16 issued an identification number which shall be 127 17 presented to the seller at the time of the sale. 127 18 f. The seller shall maintain proper records of 127 19 exempt transactions and provide them to the department 127 20 when requested. 127 21 g. The department shall administer entity-based 127 22 and use-based exemptions when practicable through a 127 23 direct pay tax permit, an exemption certificate, or 127 24 another means that does not burden sellers. For the 127 25 purposes of this paragraph: 127 26 (1) An "entity-based exemption" is an exemption 127 27 based on who purchases the product or who sells the 127 28 product. 127 29 (2) A "use-based exemption" is an exemption based 127 30 on the purchaser's use of the product. 127 31 2. Sellers that follow the requirements of this 127 32 section are relieved from any tax otherwise applicable 127 33 if it is determined that the purchaser improperly 127 34 claimed an exemption and that the purchaser is liable 127 35 for the nonpayment of tax. This relief from liability 127 36 does not apply to a seller who fraudulently fails to 127 37 collect the tax or solicits purchasers to participate 127 38 in the unlawful claim of an exemption. 127 39 Sec. 154. NEW SECTION. 423.52 RELIEF FROM 127 40 LIABILITY FOR SELLERS AND CERTIFIED SERVICE PROVIDERS. 127 41 Sellers and certified service providers are 127 42 relieved from liability to this state or its local 127 43 taxing jurisdictions for having charged and collected 127 44 the incorrect amount of sales or use tax resulting 127 45 from the seller or certified service provider relying 127 46 on erroneous data provided by this state on tax rates, 127 47 boundaries, or taxing jurisdiction assignments. If 127 48 this state provides an address-based system for 127 49 assigning taxing jurisdictions whether or not pursuant 127 50 to the federal Mobile Telecommunications Sourcing Act, 128 1 the director is not required to provide liability 128 2 relief for errors resulting from reliance on the 128 3 information provided by this state. 128 4 Sec. 155. NEW SECTION. 423.53 BAD DEBTS AND 128 5 MODEL 1 SELLERS. 128 6 A certified service provider may claim, on behalf 128 7 of a model 1 seller, any bad debt deduction as 128 8 provided in section 423.21. The certified service 128 9 provider must credit or refund the full amount of any 128 10 bad debt deduction or refund received to the seller. 128 11 Sec. 156. NEW SECTION. 423.54 AMNESTY FOR 128 12 REGISTERED SELLERS. 128 13 1. Subject to the limitations in subsections 2 128 14 through 6, the following provisions apply: 128 15 a. Amnesty is provided for uncollected or unpaid 128 16 sales or use tax to a seller who registers to pay or 128 17 to collect and remit applicable sales or use tax on 128 18 sales made to purchasers in this state in accordance 128 19 with the terms of the agreement, provided the seller 128 20 was not so registered in this state in the twelve- 128 21 month period preceding the commencement of Iowa's 128 22 participation in the agreement. 128 23 b. Amnesty precludes assessment of the seller for 128 24 uncollected or unpaid sales or use tax together with 128 25 penalty or interest for sales made during the period 128 26 the seller was not registered in this state, provided 128 27 registration occurs within twelve months of the 128 28 commencement of Iowa's participation in the agreement. 128 29 c. Amnesty shall be provided to any seller 128 30 lawfully registered under the agreement by any other 128 31 member state prior to the date of the commencement of 128 32 Iowa's participation in the agreement. 128 33 2. Amnesty is not available to a seller with 128 34 respect to any matter or matters for which the seller 128 35 received notice of the commencement of an audit and 128 36 which audit is not yet finally resolved, including any 128 37 related administrative and judicial processes. 128 38 3. Amnesty is not available for sales or use taxes 128 39 already paid or remitted or to taxes collected by the 128 40 seller. 128 41 4. Amnesty is fully effective absent the seller's 128 42 fraud or intentional misrepresentation of a material 128 43 fact as long as the seller continues registration and 128 44 continues payment or collection and remittance of 128 45 applicable sales or use taxes for a period of at least 128 46 thirty-six months. The statute of limitations 128 47 applicable to asserting a tax liability is tolled 128 48 during this thirty-six month period. 128 49 5. Amnesty is applicable only to sales or use 128 50 taxes due from a seller in its capacity as a seller 129 1 and not to sales or use taxes due from a seller in its 129 2 capacity as a buyer. 129 3 6. The director may allow amnesty on terms and 129 4 conditions more favorable to a seller than the terms 129 5 required by this section. 129 6 Sec. 157. NEW SECTION. 423.55 DATABASES. 129 7 The department shall provide and maintain databases 129 8 required by the agreement for the benefit of sellers 129 9 registered under the agreement. 129 10 Sec. 158. NEW SECTION. 423.56 CONFIDENTIALITY 129 11 AND PRIVACY PROTECTIONS UNDER MODEL 1. 129 12 1. As used in this section: 129 13 a. "Anonymous data" means information that does 129 14 not identify a person. 129 15 b. "Confidential taxpayer information" means all 129 16 information that is protected under this state's laws, 129 17 rules, and privileges. 129 18 c. "Personally identifiable information" means 129 19 information that identifies a person. 129 20 2. With very limited exceptions, a certified 129 21 service provider shall perform its tax calculation, 129 22 remittance, and reporting functions without retaining 129 23 the personally identifiable information of consumers. 129 24 3. A certified service provider may perform its 129 25 services in this state only if the certified service 129 26 provider certifies that: 129 27 a. Its system has been designed and tested to 129 28 ensure that the fundamental precept of anonymity is 129 29 respected. 129 30 b. Personally identifiable information is only 129 31 used and retained to the extent necessary for the 129 32 administration of model 1 sellers with respect to 129 33 exempt purchasers. 129 34 c. It provides consumers clear and conspicuous 129 35 notice of its information practices, including what 129 36 information it collects, how it collects the 129 37 information, how it uses the information, how long, if 129 38 at all, it retains the information, and whether it 129 39 discloses the information to member states. This 129 40 notice shall be satisfied by a written privacy policy 129 41 statement accessible by the public on the official web 129 42 site of the certified service provider. 129 43 d. Its collection, use, and retention of 129 44 personally identifiable information is limited to that 129 45 required by the member states to ensure the validity 129 46 of exemptions from taxation that are claimed by reason 129 47 of a consumer's status or the intended use of the 129 48 goods or services purchased. 129 49 e. It provides adequate technical, physical, and 129 50 administrative safeguards so as to protect personally 130 1 identifiable information from unauthorized access and 130 2 disclosure. 130 3 4. The department shall provide public 130 4 notification of its practices relating to the 130 5 collection, use, and retention of personally 130 6 identifiable information. 130 7 5. When any personally identifiable information 130 8 that has been collected and retained by the department 130 9 or certified service provider is no longer required 130 10 for the purposes set forth in subsection 3, paragraph 130 11 "d", that information shall no longer be retained by 130 12 the department or certified service provider. 130 13 6. When personally identifiable information 130 14 regarding an individual is retained by or on behalf of 130 15 this state, this state shall provide reasonable access 130 16 by such individual to his or her own information in 130 17 the state's possession and a right to correct any 130 18 inaccurately recorded information. 130 19 7. This privacy policy is subject to enforcement 130 20 by the department and the attorney general. 130 21 8. This state's laws and rules regarding the 130 22 collection, use, and maintenance of confidential 130 23 taxpayer information remain fully applicable and 130 24 binding. Without limitation, the agreement does not 130 25 enlarge or limit the state's or department's authority 130 26 to: 130 27 a. Conduct audits or other review as provided 130 28 under the agreement and state law. 130 29 b. Provide records pursuant to its examination of 130 30 public records law, disclosure laws of individual 130 31 governmental agencies, or other regulations. 130 32 c. Prevent, consistent with state law, disclosures 130 33 of confidential taxpayer information. 130 34 d. Prevent, consistent with federal law, 130 35 disclosures or misuse of federal return information 130 36 obtained under a disclosure agreement with the 130 37 internal revenue service. 130 38 e. Collect, disclose, disseminate, or otherwise 130 39 use anonymous data for governmental purposes. 130 40 9. This privacy policy does not preclude the 130 41 certification of a certified service provider whose 130 42 privacy policy is more protective of confidential 130 43 taxpayer information or personally identifiable 130 44 information than is required by the agreement. 130 45 Sec. 159. NEW SECTION. 423.57 STATUTES 130 46 APPLICABLE. 130 47 The director shall administer this subchapter as it 130 48 relates to the taxes imposed in this chapter in the 130 49 same manner and subject to all the provisions of, and 130 50 all of the powers, duties, authority, and restrictions 131 1 contained in sections 423.14, 423.15, 423.16, 423.17, 131 2 423.18, 423.19, 423.20, 423.21, 423.22, 423.23, 131 3 423.24, 423.25, 423.28, 423.29, 423.31, 423.32, 131 4 423.33, 423.34, 423.35, 423.37, 423.38, 423.39, 131 5 423.40, 423.41, and 423.42, section 423.43, subsection 131 6 3, and sections 423.45, 423.46, and 423.47. 131 7 Sec. 160. 131 8 1. Sections 422.42 through 422.59, Code 2003, are 131 9 repealed. 131 10 2. Chapter 423, Code 2003, is repealed. 131 11 COORDINATING AMENDMENTS 131 12 Sec. 161. Section 15.331A, Code 2003, is amended 131 13 to read as follows: 131 14 15.331A SALES, SERVICES, AND USE TAX REFUND – 131 15 CONTRACTOR OR SUBCONTRACTOR. 131 16 The eligible business or a supporting business 131 17 shall be entitled to a refund of the sales and use 131 18 taxes paid underchapters 422 andchapter 423 for gas, 131 19 electricity, water, or sewer utility services, goods, 131 20 wares, or merchandise, or on services rendered, 131 21 furnished, or performed to or for a contractor or 131 22 subcontractor and used in the fulfillment of a written 131 23 contract relating to the construction or equipping of 131 24 a facility within the economic development area of the 131 25 eligible business or a supporting business. Taxes 131 26 attributable to intangible property and furniture and 131 27 furnishings shall not be refunded. 131 28 To receive the refund a claim shall be filed by the 131 29 eligible business or a supporting business with the 131 30 department of revenue and finance as follows: 131 31 1. The contractor or subcontractor shall state 131 32 under oath, on forms provided by the department, the 131 33 amount of the sales of goods, wares, or merchandise or 131 34 services rendered, furnished, or performed including 131 35 water, sewer, gas, and electric utility services for 131 36 use in the economic development area upon which sales 131 37 or use tax has been paid prior to the project 131 38 completion, and shall file the forms with the eligible 131 39 business or supporting business before final 131 40 settlement is made. 131 41 2. The eligible business or a supporting business 131 42 shall, not more than one year after project 131 43 completion, make application to the department for any 131 44 refund of the amount of the sales and use taxes paid 131 45 pursuant to chapter422 or423 upon any goods, wares, 131 46 or merchandise, or services rendered, furnished, or 131 47 performed, including water, sewer, gas, and electric 131 48 utility services. The application shall be made in 131 49 the manner and upon forms to be provided by the 131 50 department, and the department shall audit the claim 132 1 and, if approved, issue a warrant to the eligible 132 2 business or supporting business in the amount of the 132 3 sales or use tax which has been paid to the state of 132 4 Iowa under a contract. A claim filed by the eligible 132 5 business or a supporting business in accordance with 132 6 this section shall not be denied by reason of a 132 7 limitation provision set forth in chapter 421, 422,or 132 8 423. 132 9 3. A contractor or subcontractor who willfully 132 10 makes a false report of tax paid under the provisions 132 11 of this section is guilty of a simple misdemeanor and 132 12 in addition is liable for the payment of the tax and 132 13 any applicable penalty and interest. 132 14 Sec. 162. Section 15.334A, Code 2003, is amended 132 15 to read as follows: 132 16 15.334A SALES AND USE TAX EXEMPTION. 132 17 An eligible business may claim an exemption from 132 18 sales and use taxation under section422.45423.3, 132 19 subsection2746, for property which is exempt from 132 20 taxation under section 15.334, notwithstanding the 132 21 requirements of section422.45423.3, subsection27132 22 46, or any other provision of the Code to the 132 23 contrary. 132 24 Sec. 163. Section 15A.9, subsections 5, 6, and 7, 132 25 Code 2003, are amended to read as follows: 132 26 5. PROPERTY TAX EXEMPTION. 132 27 a. All property, as defined in section 427A.1, 132 28 subsection 1, paragraphs "e" and "j", Code 1993, used 132 29 by the primary business or a supporting business and 132 30 located within the zone, shall be exempt from property 132 31 taxation for a period of twenty years beginning with 132 32 the year it is first assessed for taxation. In order 132 33 to be eligible for this exemption, the property shall 132 34 be acquired or leased by the primary business or a 132 35 supporting business or relocated by the primary 132 36 business or a supporting business to the zone from 132 37 outside the state prior to project completion. 132 38 b. Property which is exempt for property tax 132 39 purposes under this subsection is eligible for the 132 40 sales and use tax exemption under section422.45132 41 423.3, subsection2746, notwithstanding that 132 42 subsection or any other provision of the Code to the 132 43 contrary. 132 44 6. SALES, SERVICES, AND USE TAX REFUND. Taxes 132 45 paid pursuant to chapter422 or423 on thegross132 46receiptssales price or rental price of property 132 47 purchased or rented by the primary business or a 132 48 supporting business for use by the primary business or 132 49 a supporting business within the zone or on gas, 132 50 electricity, water, and sewer utility services prior 133 1 to project completion shall be refunded to the primary 133 2 business or supporting business if the item was 133 3 purchased or the service was performed or received 133 4 prior to project completion. Claims under this 133 5 section shall be submitted on forms provided by the 133 6 department of revenue and finance not later than six 133 7 months after project completion. The refund in this 133 8 subsection shall not apply to furniture or 133 9 furnishings, or intangible property. 133 10 7. SALES, SERVICES, AND USE TAX REFUND – 133 11 CONTRACTOR OR SUBCONTRACTOR. The primary business or 133 12 a supporting business shall be entitled to a refund of 133 13 the sales and use taxes paid underchapters 422 and133 14 chapter 423 for gas, electricity, water, or sewer 133 15 utility services, goods, wares, or merchandise, or on 133 16 services rendered, furnished, or performed to or for a 133 17 contractor or subcontractor and used in the 133 18 fulfillment of a written contract relating to the 133 19 construction or equipping of a facility within the 133 20 zone of the primary business or a supporting business. 133 21 Taxes attributable to intangible property and 133 22 furniture and furnishings shall not be refunded. 133 23 To receive the refund a claim shall be filed by the 133 24 primary business or a supporting business with the 133 25 department of revenue and finance as follows: 133 26 a. The contractor or subcontractor shall state 133 27 under oath, on forms provided by the department, the 133 28 amount of the sales of goods, wares, or merchandise or 133 29 services rendered, furnished, or performed including 133 30 water, sewer, gas, and electric utility services for 133 31 use in the zone upon which sales or use tax has been 133 32 paid prior to the project completion, and shall file 133 33 the forms with the primary business or supporting 133 34 business before final settlement is made. 133 35 b. The primary business or a supporting business 133 36 shall, not more than six months after project 133 37 completion, make application to the department for any 133 38 refund of the amount of the sales and use taxes paid 133 39 pursuant to chapter422 or423 upon any goods, wares, 133 40 or merchandise, or services rendered, furnished, or 133 41 performed, including water, sewer, gas, and electric 133 42 utility services. The application shall be made in 133 43 the manner and upon forms to be provided by the 133 44 department, and the department shall audit the claim 133 45 and, if approved, issue a warrant to the primary 133 46 business or supporting business in the amount of the 133 47 sales or use tax which has been paid to the state of 133 48 Iowa under a contract. A claim filed by the primary 133 49 business or a supporting business in accordance with 133 50 this subsection shall not be denied by reason of a 134 1 limitation provision set forth in chapter 421, 422, or 134 2 423. 134 3 c. A contractor or subcontractor who willfully 134 4 makes a false report of tax paid under the provisions 134 5 of this subsection is guilty of a simple misdemeanor 134 6 and in addition is liable for the payment of the tax 134 7 and any applicable penalty and interest. 134 8 Sec. 164. Section 28A.17, unnumbered paragraph 1, 134 9 Code 2003, is amended to read as follows: 134 10 If an authority is established as provided in 134 11 section 28A.6 and after approval of a referendum by a 134 12 simple majority of votes cast in each metropolitan 134 13 area in favor of the sales and services tax, the 134 14 governing board of a county in this state within a 134 15 metropolitan area which is part of the authority shall 134 16 impose, at the request of the authority, a local sales 134 17 and services tax at the rate of one-fourth of one 134 18 percent ongross receiptsthe sales price taxed by 134 19 this state underchapter 422, division IVsection 134 20 423.2, within the metropolitan area located in this 134 21 state. The referendum shall be called by resolution 134 22 of the board and shall be held as provided in section 134 23 28A.6 to the extent applicable. The ballot 134 24 proposition shall contain a statement as to the 134 25 specific purpose or purposes for which the revenues 134 26 shall be expended and the date of expiration of the 134 27 tax. The local sales and services tax shall be 134 28 imposed on the same basis, with the same exceptions, 134 29 and following the same administrative procedures as 134 30 provided for a county under sections 422B.8 and 134 31 422B.9. The amount of the sale, for the purposes of 134 32 determining the amount of the local sales and services 134 33 tax under this section, does not include the amount of 134 34 any local sales and services tax imposed under 134 35 sections 422B.8 and 422B.9. 134 36 Sec. 165. Section 29C.15, Code 2003, is amended to 134 37 read as follows: 134 38 29C.15 TAX-EXEMPT PURCHASES. 134 39 All purchases under the provisions of this chapter 134 40 shall be exempt from the taxes imposed by sections 134 41422.43423.2 and423.2423.5. 134 42 Sec. 166. Section 99E.10, subsection 1, paragraph 134 43 b, Code 2003, is amended to read as follows: 134 44 b. An amount equal to the product of the state 134 45 sales tax rate under section422.43423.2 multiplied 134 46 by the gross sales price of each ticket or share sold 134 47 shall be deducted as the sales tax on the sale of that 134 48 ticket or share, remitted to the treasurer of state 134 49 and deposited into the state general fund. 134 50 Sec. 167. Section 123.187, subsection 2, Code 135 1 2003, is amended to read as follows: 135 2 2. A winery licensed or permitted pursuant to laws 135 3 regulating alcoholic beverages in a state which 135 4 affords this state an equal reciprocal shipping 135 5 privilege may ship into this state by private common 135 6 carrier, to a person twenty-one years of age or older, 135 7 not more than eighteen liters of wine per month, for 135 8 consumption or use by the person. Such wine shall not 135 9 be resold. Shipment of wine pursuant to this 135 10 subsection is not subject to sales tax under section 135 11422.43423.2, use tax under section423.2423.5, or 135 12 the wine gallonage tax under section 123.183, and does 135 13 not require a refund value for beverage container 135 14 control purposes under chapter 455C. 135 15 Sec. 168. Section 262.54, Code 2003, is amended to 135 16 read as follows: 135 17 262.54 COMPUTER SALES. 135 18 Sales, by an institution under the control of the 135 19 board of regents, of computer equipment, computer 135 20 software, and computer supplies to students and 135 21 faculty at the institution are retail sales under 135 22 chapter422, division IV423. 135 23 Sec. 169. Section 303.9, subsection 2, Code 2003, 135 24 is amended to read as follows: 135 25 2. The department may sell mementos and other 135 26 items relating to Iowa history and historic sites on 135 27 the premises of property under control of the 135 28 department and at the state capitol. Notwithstanding 135 29 sections 18.12 and 18.16, the department may directly 135 30 and independently enter into rental and lease 135 31 agreements with private vendors for the purpose of 135 32 selling mementos. All fees and income produced by the 135 33 sales and rental or lease agreements shall be credited 135 34 to the account of the department. The mementos and 135 35 other items sold by the department or vendors under 135 36 this subsection are exempt from section 18.6.The135 37department is not a retailer under chapter 422 and the135 38sale of such mementos and other items by the135 39department is not a retail sale under chapter 422 and135 40is exempt from the sales tax.135 41 Sec. 170. Section 312.1, subsection 4, Code 2003, 135 42 is amended to read as follows: 135 43 4. To the extent provided in section423.24135 44 423.43, subsection 1, paragraph "b", from revenue 135 45 derived from the use tax, under chapter 423 on motor 135 46 vehicles, trailers, and motor vehicle accessories and 135 47 equipment. 135 48 Sec. 171. Section 312.2, subsections 14 and 16, 135 49 Code 2003, are amended to read as follows: 135 50 14. The treasurer of state, before making the 136 1 allotments provided for in this section, shall credit 136 2 monthly from the road use tax fund to the general fund 136 3 of the state from revenue credited to the road use tax 136 4 fund under section423.24423.43, subsection 1, 136 5 paragraph "b", an amount equal to one-twentieth of 136 6 eighty percent of the revenue from the operation of 136 7 section423.7423.26. 136 8 There is appropriated from the general fund of the 136 9 state for each fiscal year to the state department of 136 10 transportation the amount of revenues credited to the 136 11 general fund of the state during the fiscal year under 136 12 this subsection to be used for purposes of public 136 13 transit assistance under chapter 324A. 136 14 16. The treasurer of state, before making the 136 15 allotments provided for in this section, shall credit 136 16 monthly from the road use tax fund to the motorcycle 136 17 rider education fund established in section 321.180B, 136 18 an amount equal to one dollar per year of license 136 19 validity for each issued or renewed driver's license 136 20 which is valid for the operation of a motorcycle. 136 21 Moneys credited to the motorcycle rider education fund 136 22 under this subsection shall be taken from moneys 136 23 credited to the road use tax fund under section423.24136 24 423.43. 136 25 Sec. 172. Section 321.20, subsection 5, Code 2003, 136 26 is amended to read as follows: 136 27 5. The amount of tax to be paid under section 136 28423.7423.26. 136 29 Sec. 173. Section 321.24, subsections 1 and 3, 136 30 Code 2003, are amended to read as follows: 136 31 1. Upon receipt of the application for title and 136 32 payment of the required fees for a motor vehicle, 136 33 trailer, or semitrailer, the county treasurer or the 136 34 department shall, when satisfied as to the 136 35 application's genuineness and regularity, and, in the 136 36 case of a mobile home or manufactured home, that taxes 136 37 are not owing under chapter 435, issue a certificate 136 38 of title and, except for a mobile home or manufactured 136 39 home, a registration receipt, and shall file the 136 40 application, the manufacturer's or importer's 136 41 certificate, the certificate of title, or other 136 42 evidence of ownership, as prescribed by the 136 43 department. The registration receipt shall be 136 44 delivered to the owner and shall contain upon its face 136 45 the date issued, the name and address of the owner, 136 46 the registration number assigned to the vehicle, the 136 47 amount of the fee paid, the amount of tax paid 136 48 pursuant to section423.7423.26, the type of fuel 136 49 used, and a description of the vehicle as determined 136 50 by the department, and upon the reverse side a form 137 1 for notice of transfer of the vehicle. The name and 137 2 address of any lessee of the vehicle shall not be 137 3 printed on the registration receipt or certificate of 137 4 title. Up to three owners may be listed on the 137 5 registration receipt and certificate of title. 137 6 3. The certificate of title shall contain upon its 137 7 face the identical information required upon the face 137 8 of the registration receipt. In addition, the 137 9 certificate of title shall contain a statement of the 137 10 owner's title, the title number assigned to the owner 137 11 or owners of the vehicle, the amount of tax paid 137 12 pursuant to section423.7423.26, the name and address 137 13 of the previous owner, and a statement of all security 137 14 interests and encumbrances as shown in the 137 15 application, upon the vehicle described, including the 137 16 nature of the security interest, date of notation, and 137 17 name and address of the secured party. 137 18 Sec. 174. Section 321.34, subsection 7, paragraph 137 19 c, Code 2003, is amended to read as follows: 137 20 c. The fees for a collegiate registration plate 137 21 are as follows: 137 22 (1) A registration fee of twenty-five dollars. 137 23 (2) A special collegiate registration fee of 137 24 twenty-five dollars. 137 25 These fees are in addition to the regular annual 137 26 registration fee. The fees collected by the director 137 27 under this subsection shall be paid monthly to the 137 28 treasurer of state and credited by the treasurer of 137 29 state to the road use tax fund. Notwithstanding 137 30 section423.24423.43 and prior to the revenues being 137 31 credited to the road use tax fund under section423.24137 32 423.43, subsection 1, paragraph "b", the treasurer of 137 33 state shall credit monthly from those revenues 137 34 respectively, to Iowa state university of science and 137 35 technology, the university of northern Iowa, and the 137 36 state university of Iowa, the amount of the special 137 37 collegiate registration fees collected in the previous 137 38 month for collegiate registration plates designed for 137 39 the university. The moneys credited are appropriated 137 40 to the respective universities to be used for 137 41 scholarships for students attending the universities. 137 42 Sec. 175. Section 321.34, subsection 11, paragraph 137 43 c, Code 2003, is amended to read as follows: 137 44 c. The special natural resources fee for letter 137 45 number designated natural resources plates is thirty- 137 46 five dollars. The fee for personalized natural 137 47 resources plates is forty-five dollars which shall be 137 48 paid in addition to the special natural resources fee 137 49 of thirty-five dollars. The fees collected by the 137 50 director under this subsection shall be paid monthly 138 1 to the treasurer of state and credited to the road use 138 2 tax fund. Notwithstanding section423.24423.43, and 138 3 prior to the crediting of revenues to the road use tax 138 4 fund under section423.24423.43, subsection 1, 138 5 paragraph "b", the treasurer of state shall credit 138 6 monthly from those revenues to the Iowa resources 138 7 enhancement and protection fund created pursuant to 138 8 section 455A.18, the amount of the special natural 138 9 resources fees collected in the previous month for the 138 10 natural resources plates. 138 11 Sec. 176. Section 321.34, subsection 11A, 138 12 paragraph c, Code 2003, is amended to read as follows: 138 13 c. The special fee for letter number designated 138 14 love our kids plates is thirty-five dollars. The fee 138 15 for personalized love our kids plates is twenty-five 138 16 dollars, which shall be paid in addition to the 138 17 special love our kids fee of thirty-five dollars. The 138 18 fees collected by the director under this subsection 138 19 shall be paid monthly to the treasurer of state and 138 20 credited to the road use tax fund. Notwithstanding 138 21 section423.24423.43, and prior to the crediting of 138 22 revenues to the road use tax fund under section423.24138 23 423.43, subsection 1, paragraph "b", the treasurer of 138 24 state shall transfer monthly from those revenues to 138 25 the Iowa department of public health the amount of the 138 26 special fees collected in the previous month for the 138 27 love our kids plates. Notwithstanding section 8.33, 138 28 moneys transferred under this subsection shall not 138 29 revert to the general fund of the state. 138 30 Sec. 177. Section 321.34, subsection 11B, 138 31 paragraph c, Code 2003, is amended to read as follows: 138 32 c. The special fee for letter number designated 138 33 motorcycle rider education plates is thirty-five 138 34 dollars. The fee for personalized motorcycle rider 138 35 education plates is twenty-five dollars, which shall 138 36 be paid in addition to the special motorcycle rider 138 37 education fee of thirty-five dollars. The fees 138 38 collected by the director under this subsection shall 138 39 be paid monthly to the treasurer of state and credited 138 40 to the road use tax fund. Notwithstanding section 138 41423.24423.43, and prior to the crediting of revenues 138 42 to the road use tax fund under section423.24423.43, 138 43 subsection 1, paragraph "b", the treasurer of state 138 44 shall transfer monthly from those revenues to the 138 45 department for use in accordance with section 138 46 321.180B, subsection 6, the amount of the special fees 138 47 collected in the previous month for the motorcycle 138 48 rider education plates. 138 49 Sec. 178. Section 321.34, subsection 13, paragraph 138 50 d, Code 2003, is amended to read as follows: 139 1 d. A state agency may submit a request to the 139 2 department recommending a special registration plate. 139 3 The alternate fee for letter number designated plates 139 4 is thirty-five dollars with a ten dollar annual 139 5 special renewal fee. The fee for personalized plates 139 6 is twenty-five dollars which is in addition to the 139 7 alternative fee of thirty-five dollars with an annual 139 8 personalized plate renewal fee of five dollars which 139 9 is in addition to the special renewal fee of ten 139 10 dollars. The alternate fees are in addition to the 139 11 regular annual registration fee. The alternate fees 139 12 collected under this paragraph shall be paid monthly 139 13 to the treasurer of state and credited to the road use 139 14 tax fund. Notwithstanding section423.24423.43, and 139 15 prior to the crediting of the revenues to the road use 139 16 tax fund under section423.24423.43, subsection 1, 139 17 paragraph "b", the treasurer of state shall credit 139 18 monthly the amount of the alternate fees collected in 139 19 the previous month to the state agency that 139 20 recommended the special registration plate. 139 21 Sec. 179. Section 321.34, subsection 21, paragraph 139 22 c, Code 2003, is amended to read as follows: 139 23 c. The special fees collected by the director 139 24 under this subsection shall be paid monthly to the 139 25 treasurer of state and credited to the road use tax 139 26 fund. Notwithstanding section423.24423.43, and 139 27 prior to the crediting of revenues to the road use tax 139 28 fund under section423.24423.43, subsection 1, 139 29 paragraph "b", the treasurer of state shall credit 139 30 monthly to the Iowa heritage fund created under 139 31 section 303.9A the amount of the special fees 139 32 collected in the previous month for the Iowa heritage 139 33 plates. 139 34 Sec. 180. Section 321.34, subsection 22, paragraph 139 35 b, Code 2003, is amended to read as follows: 139 36 b. The special school transportation fee for 139 37 letter number designated education plates is thirty- 139 38 five dollars. The fee for personalized education 139 39 plates is twenty-five dollars, which shall be paid in 139 40 addition to the special school transportation fee of 139 41 thirty-five dollars. The annual special school 139 42 transportation fee is ten dollars for letter number 139 43 designated registration plates and is fifteen dollars 139 44 for personalized registration plates which shall be 139 45 paid in addition to the regular annual registration 139 46 fee. The fees collected by the director under this 139 47 subsection shall be paid monthly to the treasurer of 139 48 state and credited to the road use tax fund. 139 49 Notwithstanding section423.24423.43, and prior to 139 50 the crediting of revenues to the road use tax fund 140 1 under section423.24423.43, subsection 1, paragraph 140 2 "b", the treasurer of state shall transfer monthly 140 3 from those revenues to the school budget review 140 4 committee in accordance with section 257.31, 140 5 subsection 17, the amount of the special school 140 6 transportation fees collected in the previous month 140 7 for the education plates. 140 8 Sec. 181. Section 321F.9, Code 2003, is amended to 140 9 read as follows: 140 10 321F.9 OPTION TO PURCHASE – DEALER'S LICENSE. 140 11 Any person engaged in business in this state shall 140 12 not enter into any agreement for the use of a motor 140 13 vehicle under the terms of whichsuchthat person 140 14 grants to another an option to purchasesuchthe motor 140 15 vehicle without first having obtained a motor vehicle 140 16 dealer's license under the provisions of chapter 322, 140 17 and all sales of motor vehicles under such options 140 18 shall be subject to sales or use taxes imposed under 140 19 the provisions ofchapters 422 andchapter 423. 140 20 Nothing contained in this section shall require such 140 21 person to have a place of business as provided by 140 22 section 322.6, subsection 8. 140 23 Sec. 182. Section 327I.26, Code 2003, is amended 140 24 to read as follows: 140 25 327I.26 APPROPRIATION TO AUTHORITY. 140 26 Notwithstanding section423.24423.43, and prior to 140 27 the application of section423.24423.43, subsection 140 28 1, paragraph "b", there shall be deposited into the 140 29 general fund of the state and is appropriated to the 140 30 authority from eighty percent of the revenues derived 140 31 from the operation of section423.7423.26, the 140 32 amounts certified by the authority under section 140 33 327I.25. However, the total amount deposited into the 140 34 general fund and appropriated to the Iowa railway 140 35 finance authority under this section shall not exceed 140 36 two million dollars annually. Moneys appropriated to 140 37 the Iowa railway finance authority under this section 140 38 are appropriated only for the payment of principal and 140 39 interest on obligations or the payment of leases 140 40 guaranteed by the authority as provided under section 140 41 327I.25. 140 42 Sec. 183. Section 328.26, unnumbered paragraph 2, 140 43 Code 2003, is amended to read as follows: 140 44 When an aircraft is registered to a person for the 140 45 first time the fee submitted to the department shall 140 46 include the tax imposed by section422.43423.2 or 140 47 section423.2423.5 or evidence of the exemption of 140 48 the aircraft from the tax imposed under section422.43140 49 423.2 or423.2423.5. 140 50 Sec. 184. Section 331.557, subsection 3, Code 141 1 2003, is amended to read as follows: 141 2 3. Collect the use tax on vehicles subject to 141 3 registration as provided in sections423.6, 423.7, and141 4423.7A423.14, 423.26, and 423.27. 141 5 Sec. 185. Section 357A.15, unnumbered paragraph 2, 141 6 Code 2003, is amended to read as follows: 141 7 A rural water district organized under chapter 504A 141 8 shall receive a refund of sales or use taxes upon 141 9 submitting an application to the department of revenue 141 10 and finance forsuchthe refund of taxes imposed upon 141 11 thegross receiptssales price of all sales of 141 12 building materials, supplies, or equipment sold to a 141 13 contractor or used in the fulfillment of a written 141 14 contract for the construction of facilities forsuch141 15 the rural water district to the same extent as a rural 141 16 water district organized under this chapter may obtain 141 17 a refund under section422.45423.4, subsection71. 141 18 Sec. 186. Section 421.10, Code 2003, is amended to 141 19 read as follows: 141 20 421.10 APPEAL PERIOD – APPLICABILITY. 141 21 The appeal period for revision of assessment of 141 22 tax, interest, and penalties set out under section 141 23 422.28,422.54423.37, 437A.9, 437A.22, 452A.64, 141 24 453A.29, or 453A.46 applies to appeals to notices from 141 25 the department denying changes in filing methods, 141 26 denying refund claims, and denying portions of refund 141 27 claims for the tax covered by that section, and 141 28 notices of any department action directed to a 141 29 specific taxpayer, other than licensing, which 141 30 involves a calculation. 141 31 Sec. 187. Section 421.17, subsection 22B, Code 141 32 2003, is amended to read as follows: 141 33 22B.EnterTo enter into agreements or compacts 141 34 with remote sellers, retailers, or third-party 141 35 providers for the voluntary collection of Iowa sales 141 36 or use taxes attributable to sales into Iowaand to141 37enter. The director has the authority to enter into 141 38 and perform all duties required of the office of 141 39 director by multistate agreements or compacts that 141 40 provide for thevoluntarycollection of sales and use 141 41 taxes, including joint audits with other states or 141 42 audits on behalf of other states. The agreements or 141 43 compacts shall generally conform to the provisions of 141 44 Iowa sales and use tax statutes. All fees for 141 45 services, reimbursements, remuneration, incentives, 141 46 and costs incurred by the department associated with 141 47 these agreements or compacts may be paid or reimbursed 141 48 from the additional revenue generated. An amount is 141 49 appropriated from amounts generated to pay or 141 50 reimburse all costs associated with this subsection. 142 1 Persons entering into an agreement or compact with the 142 2 department pursuant to this subsection are subject to 142 3 the requirements and penalties of the confidentiality 142 4 laws of this state regarding tax information. 142 5 Notwithstanding any other provisions of law, the 142 6 contract, agreement, or compact shall provide for the 142 7 registration, collection, report, and verification of 142 8 amounts subject to this subsection. 142 9 Sec. 188. Section 421.17, subsection 29, paragraph 142 10 j, Code 2003, is amended to read as follows: 142 11 j. The department's existing right to credit 142 12 against tax due or to become due under section 422.73 142 13 or 423.47 is not to be impaired by a right granted to 142 14 or a duty imposed upon the department or other state 142 15 agency by this subsection. This subsection is not 142 16 intended to impose upon the department any additional 142 17 requirement of notice, hearing, or appeal concerning 142 18 the right to credit against tax due under section 142 19 422.73 or 423.47. 142 20 Sec. 189. Section 421.17, subsection 34, paragraph 142 21 i, Code 2003, is amended to read as follows: 142 22 i. The director may distribute to credit reporting 142 23 entities and for publication the names, addresses, and 142 24 amounts of indebtedness owed to or being collected by 142 25 the state if the indebtedness is subject to the 142 26 centralized debt collection procedure established in 142 27 this subsection. The director shall adopt rules to 142 28 administer this paragraph, and the rules shall provide 142 29 guidelines by which the director shall determine which 142 30 names, addresses, and amounts of indebtedness may be 142 31 distributed for publication. The director may 142 32 distribute information for publication pursuant to 142 33 this paragraph, notwithstanding sections 422.20, 142 34 422.72, and423.23423.42, or any other provision of 142 35 state law to the contrary pertaining to 142 36 confidentiality of information. 142 37 Sec. 190. Section 421.26, Code 2003, is amended to 142 38 read as follows: 142 39 421.26 PERSONAL LIABILITY FOR TAX DUE. 142 40 If a licensee or other person under section 142 41 452A.65, a retailer or purchaser under chapter 422A or 142 42 422B, or section422.52423.31 or 423.33, or a 142 43 retailer or purchaser under section423.13423.32 or a 142 44 user under section423.14423.34 fails to pay a tax 142 45 under those sections when due, an officer of a 142 46 corporation or association, notwithstanding sections 142 47 490A.601 and 490A.602, a member or manager of a 142 48 limited liability company, or a partner of a 142 49 partnership, having control or supervision of or the 142 50 authority for remitting the tax payments and having a 143 1 substantial legal or equitable interest in the 143 2 ownership of the corporation, association, limited 143 3 liability company, or partnership, who has 143 4 intentionally failed to pay the tax is personally 143 5 liable for the payment of the tax, interest, and 143 6 penalty due and unpaid. However, this section shall 143 7 not apply to taxes on accounts receivable. The 143 8 dissolution of a corporation, association, limited 143 9 liability company, or partnership shall not discharge 143 10 a person's liability for failure to remit the tax due. 143 11 Sec. 191. Section 421.28, Code 2003, is amended to 143 12 read as follows: 143 13 421.28 EXCEPTIONS TO SUCCESSOR LIABILITY. 143 14 The immediate successor to a licensee's or 143 15 retailer's business or stock of goods under chapter 143 16 422A or 422B, or section422.52, 423.13, 423.14,143 17 423.33 or 452A.65, is not personally liable for the 143 18 amount of delinquent tax, interest, or penalty due and 143 19 unpaid if the immediate successor shows that the 143 20 purchase of the business or stock of goods was made in 143 21 good faith that no delinquent tax, interest, or 143 22 penalty was due and unpaid. For purposes of this 143 23 section the immediate successor shows good faith by 143 24 evidence that the department had provided the 143 25 immediate successor with a certified statement that no 143 26 delinquent tax, interest, or penalty is unpaid, or 143 27 that the immediate successor had taken in good faith a 143 28 certified statement from the licensee, retailer, or 143 29 seller that no delinquent tax, interest, or penalty is 143 30 unpaid. When requested to do so by a person with whom 143 31 the licensee or retailer is negotiating the sale of 143 32 the business or stock of goods, the director of 143 33 revenue and finance shall, upon being satisfied that 143 34 such a situation exists, inform that person as to the 143 35 amount of unpaid delinquent tax, interest, or penalty 143 36 due by the licensee or the retailer. The giving of 143 37 the information under this circumstance is not a 143 38 violation of section 422.20, 422.72, or 452A.63. 143 39 Sec. 192. Section 421B.11, unnumbered paragraph 3, 143 40 Code 2003, is amended to read as follows: 143 41 Judicial review of the actions of the director may 143 42 be sought in accordance with the terms of the Iowa 143 43 administrative procedure Act, and section422.55143 44 423.38. 143 45 Sec. 193. Section 422.7, subsection 21, paragraph 143 46 a, subparagraph (1), unnumbered paragraph 1, Code 143 47 2003, is amended to read as follows: 143 48 Net capital gain from the sale of real property 143 49 used in a business, in which the taxpayer materially 143 50 participated for ten years, as defined in section 144 1 469(h) of the Internal Revenue Code, and which has 144 2 been held for a minimum of ten years, or from the sale 144 3 of a business, as defined in section422.42423.1, in 144 4 which the taxpayer was employed or in which the 144 5 taxpayer materially participated for ten years, as 144 6 defined in section 469(h) of the Internal Revenue 144 7 Code, and which has been held for a minimum of ten 144 8 years. The sale of a business means the sale of all 144 9 or substantially all of the tangible personal property 144 10 or service of the business. 144 11 Sec. 194. Section 422.73, subsection 1, Code 2003, 144 12 is amended by striking the subsection. 144 13 Sec. 195. Section 422A.1, unnumbered paragraphs 1, 144 14 3, 7, and 8, Code 2003, are amended to read as 144 15 follows: 144 16 A city or county may impose by ordinance of the 144 17 city council or by resolution of the board of 144 18 supervisors a hotel and motel tax, at a rate not to 144 19 exceed seven percent, which shall be imposed in 144 20 increments of one or more full percentage points upon 144 21 thegross receiptssales price from the renting of 144 22 sleeping rooms, apartments, or sleeping quarters in a 144 23 hotel, motel, inn, public lodging house, rooming 144 24 house, manufactured or mobile home which is tangible 144 25 personal property, or tourist court, or in any place 144 26 where sleeping accommodations are furnished to 144 27 transient guests for rent, whether with or without 144 28 meals; except thegross receiptssales price from the 144 29 renting of sleeping rooms in dormitories and in 144 30 memorial unions at all universities and colleges 144 31 located in the state of Iowa and the guests of a 144 32 religious institution if the property is exempt under 144 33 section 427.1, subsection 8, and the purpose of 144 34 renting is to provide a place for a religious retreat 144 35 or function and not a place for transient guests 144 36 generally. The tax when imposed by a city shall apply 144 37 only within the corporate boundaries of that city and 144 38 when imposed by a county shall apply only outside 144 39 incorporated areas within that county. "Renting" and 144 40 "rent" include any kind of direct or indirect charge 144 41 for such sleeping rooms, apartments, or sleeping 144 42 quarters, or their use. However, the tax does not 144 43 apply to thegross receiptssales price from the 144 44 renting of a sleeping room, apartment, or sleeping 144 45 quarters while rented by the same person for a period 144 46 of more than thirty-one consecutive days. 144 47 A local hotel and motel tax shall be imposed on 144 48 January 1, April 1, July 1, or October 1, following 144 49 the notification of the director of revenue and 144 50 finance. Once imposed, the tax shall remain in effect 145 1 at the rate imposed for a minimum of one year. A 145 2 local hotel and motel tax shall terminate only on 145 3 March 31, June 30, September 30, or December 31. At 145 4 leastforty-fivesixty days prior to the tax being 145 5 effective or prior to a revision in the tax rate, or 145 6 prior to the repeal of the tax, a city or county shall 145 7 provide notice by mail of such action to the director 145 8 of revenue and finance. 145 9 No tax permit other than the state sales tax permit 145 10 required under section422.53423.36 may be required 145 11 by local authorities. 145 12 The tax levied shall be in addition to any state 145 13 sales tax imposed under section422.43423.2. Section 145 14 422.25, subsection 4, sections 422.30,422.48 to145 15422.52, 422.54 to 422.58,422.67, and 422.68, section 145 16 422.69, subsection 1,andsections 422.70 to 422.75, 145 17 section 423.14, subsection 1, and sections 423.23, 145 18 423.24, 423.25, 423.31, 423.33, 423.35, 423.37 to 145 19 423.42, and 423.47, consistent with the provisions of 145 20 this chapter, apply with respect to the taxes 145 21 authorized under this chapter, in the same manner and 145 22 with the same effect as if the hotel and motel taxes 145 23 were retail sales taxes within the meaning of those 145 24 statutes. Notwithstanding this paragraph, the 145 25 director shall provide for quarterly filing of returns 145 26as prescribed in section 422.51and for other than 145 27 quarterly filing of returns both as prescribed in 145 28 section422.51, subsection 2423.31. The director may 145 29 require all persons, as defined in section422.42145 30 423.1, who are engaged in the business of deriving 145 31gross receiptsany sales price subject to tax under 145 32 this chapter, to register with the department. 145 33 Sec. 196. Section 422B.8, Code 2003, is amended to 145 34 read as follows: 145 35 422B.8 LOCAL SALES AND SERVICES TAX. 145 36 A local sales and services tax at the rate of not 145 37 more than one percent may be imposed by a county on 145 38 thegross receiptssales price taxed by the state 145 39 under chapter422423,division IVsubchapter II. A 145 40 local sales and services tax shall be imposed on the 145 41 same basis as the state sales and services tax or in 145 42 the case of the use of natural gas, natural gas 145 43 service, electricity, or electric service on the same 145 44 basis as the state use tax and shall not be imposed on 145 45 the sale of any property or on any service not taxed 145 46 by the state, except the tax shall not be imposed on 145 47 thegross receiptssales price from the sale of motor 145 48 fuel or special fuel as defined in chapter 452A which 145 49 is consumed for highway use or in watercraft or 145 50 aircraft if the fuel tax is paid on the transaction 146 1 and a refund has not or will not be allowed, on the 146 2gross receiptssales price from the rental of rooms, 146 3 apartments, or sleeping quarters which are taxed under 146 4 chapter 422A during the period the hotel and motel tax 146 5 is imposed, on thegross receiptssales price from the 146 6 sale of equipment by the state department of 146 7 transportation, on thegross receiptssales price from 146 8 the sale of self-propelled building equipment, pile 146 9 drivers, motorized scaffolding, or attachments 146 10 customarily drawn or attached to self-propelled 146 11 building equipment, pile drivers, and motorized 146 12 scaffolding, including auxiliary attachments which 146 13 improve the performance, safety, operation, or 146 14 efficiency of the equipment and replacement parts and 146 15 are directly and primarily used by contractors, 146 16 subcontractors, and builders for new construction, 146 17 reconstruction, alterations, expansion, or remodeling 146 18 of real property or structures, and on thegross146 19receiptssales price from the sale of a lottery ticket 146 20 or share in a lottery game conducted pursuant to 146 21 chapter 99E and except the tax shall not be imposed on 146 22 thegross receiptssales price from the sale or use of 146 23 natural gas, natural gas service, electricity, or 146 24 electric service in a city or county where thegross146 25receiptssales price from the sale of natural gas or 146 26 electric energy are subject to a franchise fee or user 146 27 fee during the period the franchise or user fee is 146 28 imposed. A local sales and services tax is applicable 146 29 to transactions within those incorporated and 146 30 unincorporated areas of the county where it is imposed 146 31 and shall be collected by all persons required to 146 32 collect stategross receiptssales taxes. However, a 146 33 person required to collect state retail sales tax 146 34 under chapter422423,division IVsubchapter V or VI, 146 35 is not required to collect local sales and services 146 36 tax on transactions delivered within the area where 146 37 the local sales and services tax is imposed unless the 146 38 person has physical presence in that taxing area. All 146 39 cities contiguous to each other shall be treated as 146 40 part of one incorporated area and the tax would be 146 41 imposed in each of those contiguous cities only if the 146 42 majority of those voting in the total area covered by 146 43 the contiguous cities favor its imposition. 146 44 The amount of the sale, for purposes of determining 146 45 the amount of the local sales and services tax, does 146 46 not include the amount of any stategross receipts146 47taxessales tax. 146 48 A tax permit other than the state sales tax permit 146 49 required under section422.53 or 423.10423.36 shall 146 50 not be required by local authorities. 147 1 If a local sales and services tax is imposed by a 147 2 county pursuant to this chapter, a local excise tax at 147 3 the same rate shall be imposed by the county on the 147 4 purchase price of natural gas, natural gas service, 147 5 electricity, or electric service subject to tax under 147 6 chapter 423, subchapter III, and not exempted from tax 147 7 by any provision of chapter 423, subchapter III. The 147 8 local excise tax is applicable only to the use of 147 9 natural gas, natural gas service, electricity, or 147 10 electric service within those incorporated and 147 11 unincorporated areas of the county where it is imposed 147 12 and, except as otherwise provided in this chapter, 147 13 shall be collected and administered in the same manner 147 14 as the local sales and services tax. For purposes of 147 15 this chapter, "local sales and services tax" shall 147 16 also include the local excise tax. 147 17 Sec. 197. Section 422B.9, subsections 1 and 2, 147 18 Code 2003, are amended to read as follows: 147 19 1. a. A local sales and services tax shall be 147 20 imposed either January 1 or July 1 following the 147 21 notification of the director of revenue and finance 147 22 but not sooner than ninety days following the 147 23 favorable election and not sooner than sixty days 147 24 following notice to sellers, as defined in section 147 25 423.1. However, a jurisdiction which has voted to 147 26 continue imposition of the tax may impose that tax 147 27 without repeal of the prior tax. 147 28 b. A local sales and services tax shall be 147 29 repealed only on June 30 or December 31 but not sooner 147 30 than ninety days following the favorable election if 147 31 one is held. However, a local sales and services tax 147 32 shall not be repealed before the tax has been in 147 33 effect for one year. At least forty days before the 147 34 imposition or repeal of the tax, a county shall 147 35 provide notice of the action by certified mail to the 147 36 director of revenue and finance. 147 37 c. The imposition of or a rate change for a local 147 38 sales and service tax shall not be applied to 147 39 purchases from a printed catalog wherein a purchaser 147 40 computes the local tax based on rates published in the 147 41 catalog unless a minimum of one hundred twenty days' 147 42 notice of the imposition or rate change has been given 147 43 to the seller from the catalog and the first day of a 147 44 calendar quarter has occurred on or after the one 147 45 hundred twentieth day. 147 46c.d. If a local sales and services tax has been 147 47 imposed prior to April 1, 2000, and at the time of the 147 48 election a date for repeal was specified on the 147 49 ballot, the local sales and services tax may be 147 50 repealed on that date, notwithstanding paragraph "b". 148 1 2. a. The director of revenue and finance shall 148 2 administer a local sales and services tax as nearly as 148 3 possible in conjunction with the administration of 148 4 stategross receiptssales tax laws. The director 148 5 shall provide appropriate forms or provide on the 148 6 regular state tax forms for reporting local sales and 148 7 services tax liability. 148 8 b. The ordinance of a county board of supervisors 148 9 imposing a local sales and services tax shall adopt by 148 10 reference the applicable provisions of the appropriate 148 11 sections ofchapter 422, division IV, andchapter 423. 148 12 All powers and requirements of the director to 148 13 administer the stategross receiptssales tax law and 148 14 use tax law are applicable to the administration of a 148 15 local sales and services tax law and the local excise 148 16 tax, including but not limited to, the provisions of 148 17 section 422.25, subsection 4, sections 422.30,422.48148 18to 422.52, 422.54 to 422.58,422.67, and 422.68, 148 19 section 422.69, subsection 1, sections 422.70 to 148 20 422.75,423.6, subsections 2 to 4, and sections 423.11148 21to 423.18, and 423.21section 423.14, subsection 1 and 148 22 subsection 2, paragraphs "b" through "e", and sections 148 23 423.15, 423.23, 423.24, 423.25, 423.31 to 423.35, 148 24 423.37 to 423.42, 423.46, and 423.47. Local officials 148 25 shall confer with the director of revenue and finance 148 26 for assistance in drafting the ordinance imposing a 148 27 local sales and services tax. A certified copy of the 148 28 ordinance shall be filed with the director as soon as 148 29 possible after passage. 148 30 c. Frequency of deposits and quarterly reports of 148 31 a local sales and services tax with the department of 148 32 revenue and finance are governed by the tax provisions 148 33 in section422.52423.31. Local tax collections shall 148 34 not be included in computation of the total tax to 148 35 determine frequency of filing under section422.52148 36 423.31. 148 37 d. The director shall apply a boundary change of a 148 38 county or city imposing or collecting the local sales 148 39 and service tax to the imposition or collection of 148 40 that tax only on the first day of a calendar quarter 148 41 which occurs sixty days or more after the director has 148 42 given notice of the boundary change to sellers. 148 43 Sec. 198. Section 422C.2, subsections 4 and 6, 148 44 Code 2003, are amended to read as follows: 148 45 4. "Person" means person as defined in section 148 46422.42423.1. 148 47 6. "Rental price" means the consideration for 148 48 renting an automobile valued in money, and means the 148 49 same as"gross taxable services""sales price" as 148 50 defined in section422.42423.1. 149 1 Sec. 199. Section 422C.3, Code 2003, is amended to 149 2 read as follows: 149 3 422C.3 TAX ON RENTAL OF AUTOMOBILES. 149 4 1. A tax of five percent is imposed upon the 149 5 rental price of an automobile if the rental 149 6 transaction is subject to the sales and services tax 149 7 under chapter422423,division IVsubchapter II, or 149 8 the use tax under chapter 423, subchapter III. The 149 9 tax shall not be imposed on any rental transaction not 149 10 taxable under the state sales and services tax, as 149 11 provided in section422.45423.3, or the state use 149 12 tax, as provided in section423.4423.6, on automobile 149 13 rental receipts. 149 14 2. The lessor shall collect the tax by adding the 149 15 tax to the rental price of the automobile. 149 16 3. The tax, when collected, shall be stated as a 149 17 distinct item separate and apart from the rental price 149 18 of the automobile and the sales and services tax 149 19 imposed under chapter422423,division IVsubchapter 149 20 II, or the use tax imposed under chapter 423, 149 21 subchapter III. 149 22 Sec. 200. Section 422C.4, Code 2003, is amended to 149 23 read as follows: 149 24 422C.4 ADMINISTRATION AND ENFORCEMENT. 149 25 All powers and requirements of the director of 149 26 revenue and finance to administer the stategross149 27receiptssales tax law under chapter422, division IV,149 28 423 are applicable to the administration of the tax 149 29 imposed under section 422C.3, including but not 149 30 limited to section 422.25, subsection 4, sections 149 31 422.30,422.48 through 422.52, 422.54 through 422.58,149 32 422.67, and 422.68, section 422.69, subsection 1,and149 33 sections 422.70 through 422.75, section 423.14, 149 34 subsection 1, and sections 423.15, 423.23, 423.24, 149 35 423.25, 423.31, 423.33, 423.35 and 423.37 through 149 36 423.42, 423.45, 423.46, and 423.47. However, as an 149 37 exception to the powers specified in section422.52,149 38subsection 1423.31, the director shall only require 149 39 the filing of quarterly reports. 149 40 Sec. 201. Section 422E.1, subsection 1, is amended 149 41 to read as follows: 149 42 1. A local sales and services tax for school 149 43 infrastructure purposes may be imposed by a county on 149 44 behalf of school districts as provided in this 149 45 chapter. 149 46 If a local sales and services tax for school 149 47 infrastructure is imposed by a county pursuant to this 149 48 chapter, a local excise tax for school infrastructure 149 49 at the same rate shall be imposed by the county on the 149 50 purchase price of natural gas, natural gas service, 150 1 electricity, or electric service subject to tax under 150 2 chapter 423, subchapter III, and not exempted from tax 150 3 by any provision of chapter 423, subchapter III. The 150 4 local excise tax for school infrastructure is 150 5 applicable only to the use of natural gas, natural gas 150 6 service, electricity, or electric service within those 150 7 incorporated and unincorporated areas of the county 150 8 where it is imposed and, except as otherwise provided 150 9 in this chapter, shall be collected and administered 150 10 in the same manner as the local sales and services tax 150 11 for school infrastructure. For purposes of this 150 12 chapter, "local sales and services tax for school 150 13 infrastructure" shall also include the local excise 150 14 tax for school infrastructure. 150 15 Sec. 202. Section 422E.3, subsections 1, 2, and 3, 150 16 Code 2003, are amended to read as follows: 150 17 1. If a majority of those voting on the question 150 18 of imposition of a local sales and services tax for 150 19 school infrastructure purposes favors imposition of 150 20 the tax, the tax shall be imposed by the county board 150 21 of supervisors within the county pursuant to section 150 22 422E.2, at the rate specified for a ten-year duration 150 23 on thegross receiptssales price taxed by the state 150 24 under chapter422423,division IVsubchapter II. 150 25 2. The tax shall be imposed on the same basis as 150 26 the state sales and services tax or in the case of the 150 27 use of natural gas, natural gas service, electricity, 150 28 or electric service on the same basis as the state use 150 29 tax and shall not be imposed on the sale of any 150 30 property or on any service not taxed by the state, 150 31 except the tax shall not be imposed on thegross150 32receiptssales price from the sale of motor fuel or 150 33 special fuel as defined in chapter 452A which is 150 34 consumed for highway use or in watercraft or aircraft 150 35 if the fuel tax is paid on the transaction and a 150 36 refund has not or will not be allowed, on thegross150 37receiptssales price from the rental of rooms, 150 38 apartments, or sleeping quarters which are taxed under 150 39 chapter 422A during the period the hotel and motel tax 150 40 is imposed, on thegross receiptssales price from the 150 41 sale of equipment by the state department of 150 42 transportation, on thegross receiptssales price from 150 43 the sale of self-propelled building equipment, pile 150 44 drivers, motorized scaffolding, or attachments 150 45 customarily drawn or attached to self-propelled 150 46 building equipment, pile drivers, and motorized 150 47 scaffolding, including auxiliary attachments which 150 48 improve the performance, safety, operation, or 150 49 efficiency of the equipment, and replacement parts and 150 50 are directly and primarily used by contractors, 151 1 subcontractors, and builders for new construction, 151 2 reconstruction, alterations, expansion, or remodeling 151 3 of real property or structures, and on thegross151 4receiptssales price from the sale of a lottery ticket 151 5 or share in a lottery game conducted pursuant to 151 6 chapter 99E and except the tax shall not be imposed on 151 7 thegross receiptssales price from the sale or use of 151 8 natural gas, natural gas service, electricity, or 151 9 electric service in a city or county where thegross151 10receiptssales price from the sale of natural gas or 151 11 electric energy are subject to a franchise fee or user 151 12 fee during the period the franchise or user fee is 151 13 imposed. 151 14 3. The tax is applicable to transactions within 151 15 the county where it is imposed and shall be collected 151 16 by all persons required to collect stategross151 17receiptssales or local excise taxes. However, a 151 18 person required to collect stateretailsales tax 151 19 under chapter422, division IV,423 is not required to 151 20 collect local sales and services tax on transactions 151 21 delivered within the area where the local sales and 151 22 services tax is imposed unless the person has physical 151 23 presence in that taxing area. The amount of the sale, 151 24 for purposes of determining the amount of the tax, 151 25 does not include the amount of any stategross151 26receiptssales taxes or excise taxes or other local 151 27 option sales or excise taxes. A tax permit other than 151 28 the state tax permit required under section422.53 or151 29423.10423.36 shall not be required by local 151 30 authorities. 151 31 Sec. 203. Section 425.30, Code 2003, is amended to 151 32 read as follows: 151 33 425.30 NOTICES. 151 34 Section422.57423.39, subsection 1, shall apply to 151 35 all notices under this division. 151 36 Sec. 204. Section 425.31, Code 2003, is amended to 151 37 read as follows: 151 38 425.31 APPEALS. 151 39 Any person aggrieved by an act or decision of the 151 40 director of revenue and finance or the department of 151 41 revenue and finance under this division shall have the 151 42 same rights of appeal and review as provided in 151 43 sections 421.1 and422.55423.38 and the rules of the 151 44 department of revenue and finance. 151 45 Sec. 205. Section 452A.66, unnumbered paragraph 1, 151 46 Code 2003, is amended to read as follows: 151 47 The appropriate state agency shall administer the 151 48 taxes imposed by this chapter in the same manner as 151 49 and subject to section 422.25, subsection 4 and 151 50 section422.52, subsection 3423.35. 152 1 Sec. 206. Section 455B.455, Code 2003, is amended 152 2 to read as follows: 152 3 455B.455 SURCHARGE IMPOSED. 152 4 A land burial surcharge tax of two percent is 152 5 imposed on the fee for land burial of a hazardous 152 6 waste. The owner of the land burial facility shall 152 7 remit the tax collected to the director of revenue and 152 8 finance after consultation with the director according 152 9 to rules that the director shall adopt. The director 152 10 shall forward a copy of the site license to the 152 11 director of revenue and finance which shall be the 152 12 appropriate license for the collection of the land 152 13 burial surcharge tax and shall be subject to 152 14 suspension or revocation if the site license holder 152 15 fails to collect or remit the tax collected under this 152 16 section. The provisions ofsectionssection 422.25, 152 17 subsection 4, sections 422.30,422.48 to 422.52,152 18422.54 to 422.58,422.67, and 422.68, section 422.69, 152 19 subsection 1,andsections 422.70 to 422.75, section 152 20 423.14, subsection 1, and sections 423.23, 423.24, 152 21 423.25, 423.31, 423.33, 423.35, 423.37 to 423.42, and 152 22 423.47, consistent with the provisions of this part 6 152 23 of division IV, shall apply with respect to the taxes 152 24 authorized under this part, in the same manner and 152 25 with the same effect as if the land burial surcharge 152 26 tax wereretailsales taxes within the meaning of 152 27 those statutes. Notwithstanding the provisions of 152 28 thisparagraphsection, the director shall provide for 152 29 only quarterly filing of returns as prescribed in 152 30 section422.51423.31. Taxes collected by the 152 31 director of revenue and finance under this section 152 32 shall be deposited in the general fund of the state. 152 33 Sec. 207. Section 455G.3, subsection 1, Code 2003, 152 34 is amended to read as follows: 152 35 1. The Iowa comprehensive petroleum underground 152 36 storage tank fund is created as a separate fund in the 152 37 state treasury, and any funds remaining in the fund at 152 38 the end of each fiscal year shall not revert to the 152 39 general fund but shall remain in the Iowa 152 40 comprehensive petroleum underground storage tank fund. 152 41 Interest or other income earned by the fund shall be 152 42 deposited in the fund. The fund shall include moneys 152 43 credited to the fund under this section, section 152 44423.24423.43, subsection 1, paragraph "a", and 152 45 sections 455G.8, 455G.9, and 455G.11, and other funds 152 46 which by law may be credited to the fund. The moneys 152 47 in the fund are appropriated to and for the purposes 152 48 of the board as provided in this chapter. Amounts in 152 49 the fund shall not be subject to appropriation for any 152 50 other purpose by the general assembly, but shall be 153 1 used only for the purposes set forth in this chapter. 153 2 The treasurer of state shall act as custodian of the 153 3 fund and disburse amounts contained in it as directed 153 4 by the board including automatic disbursements of 153 5 funds as received pursuant to the terms of bond 153 6 indentures and documents and security provisions to 153 7 trustees and custodians. The treasurer of state is 153 8 authorized to invest the funds deposited in the fund 153 9 at the direction of the board and subject to any 153 10 limitations contained in any applicable bond 153 11 proceedings. The income from such investment shall be 153 12 credited to and deposited in the fund. The fund shall 153 13 be administered by the board which shall make 153 14 expenditures from the fund consistent with the 153 15 purposes of the programs set out in this chapter 153 16 without further appropriation. The fund may be 153 17 divided into different accounts with different 153 18 depositories as determined by the board and to fulfill 153 19 the purposes of this chapter. 153 20 Sec. 208. Section 455G.6, subsection 4, Code 2003, 153 21 is amended to read as follows: 153 22 4. Grant a mortgage, lien, pledge, assignment, or 153 23 other encumbrance on one or more improvements, 153 24 revenues, asset of right, accounts, or funds 153 25 established or received in connection with the fund, 153 26 including revenues derived from the use tax under 153 27 section423.24423.43, subsection 1, paragraph "a", 153 28 and deposited in the fund or an account of the fund. 153 29 Sec. 209. Section 455G.8, subsection 2, Code 2003, 153 30 is amended to read as follows: 153 31 2. USE TAX. The revenues derived from the use tax 153 32 imposed under chapter 423, subchapter III. The 153 33 proceeds of the use tax under section423.24423.43, 153 34 subsection 1, paragraph "a", shall be allocated, 153 35 consistent with this chapter, among the fund's 153 36 accounts, for debt service and other fund expenses, 153 37 according to the fund budget, resolution, trust 153 38 agreement, or other instrument prepared or entered 153 39 into by the board or authority under direction of the 153 40 board. 153 41 Sec. 210. Section 455G.9, subsection 2, Code 2003, 153 42 is amended to read as follows: 153 43 2. REMEDIAL ACCOUNT FUNDING. The remedial account 153 44 shall be funded by that portion of the proceeds of the 153 45 use tax imposed under chapter 423, subchapter III, and 153 46 other moneys and revenues budgeted to the remedial 153 47 account by the board. 153 48 Sec. 211. Section 2.67, Code 2003, is repealed. 153 49 Sec. 212. CODE EDITOR DIRECTIVE. The Code editor 153 50 is directed to transfer Code chapter 423A to Code 154 1 chapter 421A and to transfer Code chapters 422A, 422B, 154 2 422C, and 422E to Code chapters 423A, 423B, 423C, and 154 3 423E, respectively. The Code editor is directed to 154 4 correct Code references as required due to the changes 154 5 made in this Act. 154 6 SALES TAX ADVISORY COUNCIL 154 7 Sec. 213. IOWA STREAMLINED SALES TAX ADVISORY 154 8 COUNCIL. 154 9 1. An Iowa streamlined sales tax advisory council 154 10 is created. The advisory council shall review, study, 154 11 and submit recommendations to the Iowa streamlined 154 12 sales and use tax delegation regarding the proposed 154 13 streamlined sales and use tax agreement formalized by 154 14 the project's implementing sales on November 12, 2002, 154 15 the proposed language conforming Iowa's sales and use 154 16 tax to the national agreement, and the following 154 17 issues: 154 18 a. Uniform definitions proposed in the current 154 19 streamlined sales and use tax agreement and future 154 20 proposals. 154 21 b. Effects upon taxability of items newly defined 154 22 in Iowa. 154 23 c. Impacts upon business as a result of the 154 24 streamlined sales and use tax. 154 25 d. Technology implementation issues. 154 26 e. Any other issues that are brought before the 154 27 streamlined sales and use tax implementing state or 154 28 the streamlined sales and use tax governing board. 154 29 2. The department shall provide administrative 154 30 support to the Iowa streamlined sales tax advisory 154 31 council. The advisory council shall be representative 154 32 of Iowa's business community and economy when 154 33 reviewing and recommending solutions to streamlined 154 34 sales and use tax issues. The advisory council shall 154 35 provide the general assembly and the governor with 154 36 final recommendations made to the Iowa streamlined 154 37 sales and use tax delegation upon the conclusion of 154 38 each calendar year. 154 39 3. The director of revenue, in consultation with 154 40 the Iowa taxpayers association and the Iowa 154 41 association of business and industry, shall appoint 154 42 members to the Iowa streamlined sales tax advisory 154 43 council, which shall consist of the following members: 154 44 a. One member from the department of revenue and 154 45 finance. 154 46 b. Three members representing small Iowa 154 47 businesses, at least one of whom must be a retailer, 154 48 and at least one of whom shall be a supplier. 154 49 c. Three members representing medium Iowa 154 50 businesses, at least one of whom shall be a retailer, 155 1 and at least one of whom shall be a supplier. 155 2 d. Three members representing large Iowa 155 3 businesses, at least one of whom shall be a retailer, 155 4 and at least one of whom shall be a supplier. 155 5 e. One member representing taxpayers as a whole. 155 6 f. One member representing the retail community as 155 7 a whole. 155 8 g. Any other member the director of revenue and 155 9 finance deems appropriate. 155 10 Sec. 214. EFFECTIVE DATE. Except for the section 155 11 creating the Iowa streamlined sales tax advisory 155 12 council, this division of this Act takes effect July 155 13 1, 2004. 155 14 DIVISION XVI 155 15 WIND ENERGY PRODUCTION TAX CREDIT 155 16 Sec. 215. NEW SECTION. 422.11H WIND ENERGY 155 17 PRODUCTION TAX CREDIT. 155 18 The taxes imposed under this division, less the 155 19 credits allowed under sections 422.12 and 422.12B, 155 20 shall be reduced by a wind energy production tax 155 21 credit allowed under chapter 476B. 155 22 Sec. 216. Section 422.33, Code 2003, is amended by 155 23 adding the following new subsection: 155 24 NEW SUBSECTION. 14. The taxes imposed under this 155 25 division shall be reduced by a wind energy production 155 26 tax credit allowed under chapter 476B. 155 27 Sec. 217. Section 422.60, Code 2003, is amended by 155 28 adding the following new subsection: 155 29 NEW SUBSECTION. 7. The taxes imposed under this 155 30 division shall be reduced by a wind energy production 155 31 tax credit allowed under chapter 476B. 155 32 Sec. 218. NEW SECTION. 432.12D WIND ENERGY 155 33 PRODUCTION TAX CREDIT. 155 34 The taxes imposed under this chapter shall be 155 35 reduced by a wind energy production tax credit allowed 155 36 under chapter 476B. 155 37 Sec. 219. NEW SECTION. 476B.1 DEFINITIONS. 155 38 For purposes of this chapter, unless the context 155 39 otherwise requires: 155 40 1. "Board" means the utilities board within the 155 41 utilities division of the department of commerce. 155 42 2. "Department" means the department of revenue 155 43 and finance. 155 44 3. "Qualified electricity" means electricity 155 45 produced from wind at a qualified facility. 155 46 4. "Qualified facility" means an electrical 155 47 production facility that meets all of the following: 155 48 a. Produces electricity from wind. 155 49 b. Is located in Iowa. 155 50 c. Was originally placed in service on or after 156 1 July 1, 2004, but before July 1, 2007. 156 2 Sec. 220. NEW SECTION. 476B.2 GENERAL RULE. 156 3 The owner of a qualified facility shall, for each 156 4 kilowatt-hour of qualified electricity that the owner 156 5 sells during the ten-year period beginning on the date 156 6 the qualified facility was originally placed in 156 7 service, be allowed a wind energy production tax 156 8 credit to the extent provided in this chapter against 156 9 the tax imposed in chapter 422, divisions II, III, and 156 10 V, and chapter 432. 156 11 Sec. 221. NEW SECTION. 476B.3 CREDIT AMOUNT. 156 12 The wind energy production tax credit allowed under 156 13 this chapter equals the product of one cent multiplied 156 14 by the number of kilowatt-hours of qualified 156 15 electricity sold by the owner during the taxable year. 156 16 Sec. 222. NEW SECTION. 476B.4 LIMITATIONS. 156 17 1. a. The wind energy production tax credit shall 156 18 not be allowed for any kilowatt-hour of electricity 156 19 produced on wind energy conversion property for which 156 20 the owner has claimed or otherwise received for that 156 21 property the benefit of special valuation under 156 22 section 427B.26 or section 441.21, subsection 8, or 156 23 the exemption from retail sales tax under section 156 24 422.45, subsection 48. 156 25 b. The disallowance of the tax credit pursuant to 156 26 paragraph "a" does not apply to an owner of a 156 27 qualified facility that owns, directly or indirectly, 156 28 in the aggregate, a total annual turbine nameplate 156 29 capacity of all such property of less than one 156 30 megawatt. 156 31 2. The wind energy production tax credit shall not 156 32 be allowed for any kilowatt-hour of electricity that 156 33 is sold to a related person. For purpose of this 156 34 subsection, persons shall be treated as related to 156 35 each other if such persons would be treated as a 156 36 single employer under the regulations prescribed under 156 37 section 52(b) of the Internal Revenue Code. In the 156 38 case of a corporation that is a member of an 156 39 affiliated group of corporations filing a consolidated 156 40 return, such corporation shall be treated as selling 156 41 electricity to an unrelated person if such electricity 156 42 is sold to such a person by another member of such 156 43 group. 156 44 Sec. 223. NEW SECTION. 476B.5 APPLICATION FOR 156 45 TAX CREDIT CERTIFICATES. 156 46 1. To receive the wind energy production tax 156 47 credit, an owner of the qualified facility must submit 156 48 an application for a tax credit certificate to the 156 49 board not later than thirty days after the close of 156 50 its taxable year. The owner's application must 157 1 contain, but need not be limited to, all of the 157 2 following information: the owner's name, tax 157 3 identification number, and address, the number of 157 4 kilowatt-hours of qualified electricity sold by the 157 5 owner during the preceding taxable year, the address 157 6 of the qualified facility at which the qualified 157 7 electricity was produced, a certified statement of the 157 8 number, if any, of kilowatt-hours of electricity 157 9 produced on wind energy conversion property for which 157 10 the owner has claimed or otherwise received for that 157 11 property the benefit of special valuation under 157 12 section 427B.26 or section 441.21, subsection 8, or 157 13 the exemption from the retail sales tax under section 157 14 422.45, subsection 48, and the denomination that each 157 15 tax credit certificate is to carry. 157 16 1A. In addition to the information required in 157 17 subsection 1, the application shall specify the amount 157 18 of property taxes imposed by the school district, 157 19 city, and county on the wind energy conversion 157 20 property payable during the owner's taxable year. The 157 21 amount of property taxes imposed by the school 157 22 district, city, and county on such property that is 157 23 payable during the owner's taxable year shall be 157 24 computed as follows: 157 25 a. If the fiscal year for which such property 157 26 taxes are imposed ends during the taxable year, divide 157 27 the property taxes imposed by the school district, 157 28 city, and county payable in that fiscal year by twelve 157 29 and multiply the resulting quotient by the number of 157 30 months of the fiscal year ending in the taxable year. 157 31 b. If the fiscal year for which such property 157 32 taxes are imposed begins, but does not end, during the 157 33 taxable year, divide the property taxes imposed by the 157 34 school district, city, and county payable in that 157 35 fiscal year by twelve and multiply the resulting 157 36 quotient by the number of months of the fiscal year 157 37 ending in the taxable year. 157 38 c. Add the amounts determined pursuant to 157 39 paragraphs "a" and "b". 157 40 The application shall also contain the name of the 157 41 school district, city or cities, and county and the 157 42 portion of the total amount of paragraph "c" that was 157 43 imposed by each jurisdiction. 157 44 2. The board shall, in conjunction with the 157 45 department, prescribe appropriate forms and 157 46 instructions to enable owners to claim the tax credit 157 47 allowed under this chapter. If the board prescribes 157 48 these forms and instructions, an owner's application 157 49 for a tax credit certificate shall not be valid unless 157 50 made on and in accordance with these forms and 158 1 instructions. 158 2 3. Within thirty days of the end of the owner's 158 3 eleventh and twelfth taxable years with respect to the 158 4 ownership of the qualified facility for which the 158 5 owner had previously received a tax credit, the owner 158 6 shall file with the board an "extra two year 158 7 information form". The form shall contain all 158 8 property tax information in subsection 1A and other 158 9 information deemed appropriate by the board or 158 10 treasurer of state for the owner's eleventh or twelfth 158 11 taxable year, as applicable. 158 12 Sec. 224. NEW SECTION. 476B.6 ISSUANCE OF TAX 158 13 CREDIT CERTIFICATES. 158 14 1. If the owner meets the criteria for eligibility 158 15 for the wind energy production tax credit, the board 158 16 shall determine the validity of the application and if 158 17 valid, shall issue one or more tax credit certificates 158 18 to the owner not later than thirty days after the 158 19 application is submitted to the board. Each tax 158 20 credit certificate must contain the owner's name, 158 21 address, and tax identification number, amount of tax 158 22 credits, and the expiration date of the tax credit 158 23 certificate, which shall be seven years from its date 158 24 of issuance and any other information required by the 158 25 department. Once issued by the board, the tax credit 158 26 certificate shall be binding on the board and the 158 27 department and shall not be modified, terminated, or 158 28 rescinded. Upon the issuance of the tax credit 158 29 certificate, the board shall forward to the treasurer 158 30 of state a copy of the information provided pursuant 158 31 to section 476B.5, subsection 1A, containing the 158 32 amount of property taxes payable during the owner's 158 33 taxable year which were levied on wind energy 158 34 conversion property for which the tax credit 158 35 certificates were issued. The board shall also 158 36 forward to the treasurer of state information provided 158 37 pursuant to section 476B.5, subsection 3, containing 158 38 the amount of property taxes payable during the 158 39 eleventh or twelfth taxable year. 158 40 2. If the tax credit application is filed by a 158 41 partnership, limited liability company, S corporation, 158 42 estate, trust, or other reporting entity all of the 158 43 income of which is taxed directly to its equity 158 44 holders or beneficiaries, the tax credit certificate 158 45 may, at the election of the owner, be issued directly 158 46 to equity holders or beneficiaries of the owner in 158 47 proportion to their pro rata share of the income of 158 48 such entity. If the owner elects to have the tax 158 49 credit certificate issued directly to its equity 158 50 holders or beneficiaries, the owner must, in the 159 1 application made under section 476B.5, identify its 159 2 equity holders or beneficiaries, and the amount of 159 3 such entity's income that is allocable to each equity 159 4 holder or beneficiary. 159 5 Sec. 225. NEW SECTION. 476B.7 TRANSFER OF TAX 159 6 CREDIT CERTIFICATES. 159 7 Wind energy production tax credit certificates 159 8 issued under this chapter may be transferred to any 159 9 person or entity. Within thirty days of transfer, the 159 10 transferee must submit the transferred tax credit 159 11 certificate to the board along with a statement 159 12 containing the transferee's name, tax identification 159 13 number, and address, and the denomination that each 159 14 replacement tax credit certificate is to carry and any 159 15 other information required by the department. Within 159 16 thirty days of receiving the transferred tax credit 159 17 certificate and the transferee's statement, the board 159 18 shall issue one or more replacement tax credit 159 19 certificates to the transferee. Each replacement 159 20 certificate must contain the information required 159 21 under section 476B.6 and must have the same expiration 159 22 date that appeared in the transferred tax credit 159 23 certificate. Tax credit certificate amounts of less 159 24 than the minimum amount established by rule of the 159 25 board shall not be transferable. A tax credit shall 159 26 not be claimed by a transferee under this chapter 159 27 until a replacement tax credit certificate identifying 159 28 the transferee as the proper holder has been issued. 159 29 The tax credit shall only be transferred once. The 159 30 transferee may use the amount of the tax credit 159 31 transferred against the taxes imposed under chapter 159 32 422, divisions II, III, and V, and chapter 432 for any 159 33 tax year the original transferor could have claimed 159 34 the tax credit. Any consideration received for the 159 35 transfer of the tax credit shall not be included as 159 36 income under chapter 422, divisions II, III, and V. 159 37 Any consideration paid for the transfer of the tax 159 38 credit shall not be deducted from income under chapter 159 39 422, divisions II, III, and V. 159 40 Sec. 226. NEW SECTION. 476B.8 USE OF TAX CREDIT 159 41 CERTIFICATES. 159 42 To claim a wind energy production tax credit under 159 43 this chapter, a taxpayer must attach one or more tax 159 44 credit certificates to the taxpayer's tax return. A 159 45 tax credit certificate shall not be used or attached 159 46 to a return filed prior to July 1, 2005. The tax 159 47 credit certificate or certificates attached to the 159 48 taxpayer's tax return shall be issued in the 159 49 taxpayer's name, expire on or after the last day of 159 50 the taxable year for which the taxpayer is claiming 160 1 the tax credit, and show a tax credit amount equal to 160 2 or greater than the tax credit claimed on the 160 3 taxpayer's tax return. Any tax credit in excess of 160 4 the taxpayer's tax liability for the taxable year may 160 5 be credited to the taxpayer's tax liability for the 160 6 following seven taxable years or until depleted, 160 7 whichever is the earlier. 160 8 Sec. 227. NEW SECTION. 476B.9 REGISTRATION OF 160 9 TAX CREDIT CERTIFICATES. 160 10 The board shall, in conjunction with the 160 11 department, develop a system for the registration of 160 12 the wind energy production tax credit certificates 160 13 issued or transferred under this chapter and a system 160 14 that permits verification that any tax credit claimed 160 15 on a tax return is valid and that transfers of the tax 160 16 credit certificates are made in accordance with the 160 17 requirements of this chapter. The tax credit 160 18 certificates issued under this chapter shall not be 160 19 classified as a security pursuant to chapter 502. 160 20 Sec. 228. NEW SECTION. 476B.10 PAYMENT TO STATE 160 21 OF PROPERTY TAXES COLLECTED. 160 22 1. a. By March 15 and September 15 of each year, 160 23 the treasurer of state shall notify each school 160 24 district, city, and county of the amount of property 160 25 taxes imposed by the jurisdiction on wind energy 160 26 conversion property for which tax credit certificates 160 27 have been issued under this chapter. The amount of 160 28 property taxes contained on the notice to the school 160 29 district, city, or county shall equal the amounts 160 30 received by the treasurer of state from the board 160 31 since the treasurer of state last sent out notices 160 32 pursuant to this subsection. The sending of a notice 160 33 shall constitute a demand for the payment of an amount 160 34 equal to the property taxes imposed on the wind energy 160 35 conversion property as specified in the notice. 160 36 b. In addition to the amount of property taxes 160 37 referred to in paragraph "a", the treasurer of state 160 38 shall notify each school district, city, and county of 160 39 the property taxes imposed on wind energy conversion 160 40 property for the owner's eleventh or twelfth taxable 160 41 year as specified pursuant to section 476B.5, 160 42 subsection 3. 160 43 2. A school district, city, or county to which a 160 44 notice under subsection 1 is sent shall remit to the 160 45 treasurer of state the amount of property taxes 160 46 imposed in the wind energy conversion property 160 47 specified in the notice by the end of the third month 160 48 following the month in which the notice is sent. 160 49 Interest for late payment shall be assessed at the 160 50 rate specified in section 421.7 for each month, 161 1 counting a part of a month a whole month, after the 161 2 due date. Failure of the school district, city, or 161 3 county to receive the notice is not a defense to the 161 4 payment of the amount specified in the notice or for 161 5 any interest for late payment. 161 6 3. A school district, city, or county that remits 161 7 payments to the treasurer of state pursuant to 161 8 subsection 2 in a fiscal year may adjust its budget or 161 9 certified budget, notwithstanding any provision of 161 10 law, to compensate for such payments. 161 11 Sec. 229. EFFECTIVE AND APPLICABILITY DATES. 161 12 1. Except for subsection 2, this division of this 161 13 Act applies to tax years beginning on or after January 161 14 1, 2004. 161 15 2. The section of this division of this Act 161 16 enacting new Code section 476B.10, takes effect 161 17 January 1, 2005. 161 18 DIVISION XVII 161 19 EFFECTIVE DATE 161 20 Sec. 230. EFFECTIVE DATE. Unless otherwise 161 21 provided in this Act, this Act takes effect July 1, 161 22 2003." 161 23 #2. Title page, by striking lines 1 through 15 and 161 24 inserting the following: "An Act relating to economic 161 25 development, financial, taxation, and regulatory 161 26 matters, making and revising appropriations, modifying 161 27 penalties, providing a fee, and including effective, 161 28 applicability, and retroactive applicability 161 29 provisions." 161 30 HF 683S 161 31 tm/cc/26
Text: H01615 Text: H01617 Text: H01600 - H01699 Text: H Index Bills and Amendments: General Index Bill History: General Index
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