Text: H08388 Text: H08390 Text: H08300 - H08399 Text: H Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Amend the House amendment, H-8365, to Senate File 1 2 2298, as amended, passed, and reprinted by the Senate, 1 3 as follows: 1 4 #1. Page 1, by inserting after line 10 the 1 5 following: 1 6 "# . Page 49, by striking lines 1 through 18 and 1 7 inserting the following: 1 8 "................................................. $147,582,047 1 9 The funds appropriated in this subsection shall be 1 10 allocated as follows: 1 11 a. Merged Area I ............................. $ 7,193,209 1 12 b. Merged Area II ............................ $ 8,136,366 1 13 c. Merged Area III ........................... $ 7,600,107 1 14 d. Merged Area IV ............................ $ 3,670,204 1 15 e. Merged Area V ............................. $ 8,015,816 1 16 f. Merged Area VI ............................ $ 7,142,277 1 17 g. Merged Area VII ........................... $ 10,530,666 1 18 h. Merged Area IX ............................ $ 13,020,106 1 19 i. Merged Area X ............................. $ 20,883,389 1 20 j. Merged Area XI ............................ $ 21,903,444 1 21 k. Merged Area XII ........................... $ 8,609,947 1 22 l. Merged Area XIII .......................... $ 8,743,547 1 23 m. Merged Area XIV ........................... $ 3,744,512 1 24 n. Merged Area XV ............................ $ 11,726,862 1 25 o. Merged Area XVI ........................... $ 6,661,595"" 1 26 #2. Page 1, by inserting before line 11 the 1 27 following: 1 28 "# . By striking page 52, line 2, through page 1 29 60, line 9, and inserting the following: "purposes, 1 30 and for not more than the following full-time 1 31 equivalent positions: 1 32 .................................................. $ 1,190,152 1 33 ............................................... FTEs 16.00 1 34 b. For allocation by the state board of regents to 1 35 the state university of Iowa, the Iowa state 1 36 university of science and technology, and the 1 37 university of northern Iowa to reimburse the 1 38 institutions for deficiencies in their operating funds 1 39 resulting from the pledging of tuitions, student fees 1 40 and charges, and institutional income to finance the 1 41 cost of providing academic and administrative 1 42 buildings and facilities and utility services at the 1 43 institutions: 1 44 .................................................. $ 12,701,278 1 45 Notwithstanding section 8.33, funds appropriated 1 46 for purposes of this lettered paragraph that remain 1 47 unencumbered or unobligated on June 30, 2005, shall 1 48 not revert to the general fund of the state, but shall 1 49 be available for expenditure for the following fiscal 1 50 year for purposes specified in this lettered 2 1 paragraph. 2 2 c. For funds to be allocated to the southwest Iowa 2 3 graduate studies center: 2 4 .................................................. $ 108,673 2 5 d. For funds to be allocated to the siouxland 2 6 interstate metropolitan planning council for the 2 7 tristate graduate center under section 262.9, 2 8 subsection 21: 2 9 .................................................. $ 79,940 2 10 e. For funds to be allocated to the quad-cities 2 11 graduate studies center: 2 12 .................................................. $ 161,173 2 13 2. STATE UNIVERSITY OF IOWA 2 14 a. General university, including lakeside 2 15 laboratory 2 16 For salaries, support, maintenance, equipment, and 2 17 miscellaneous purposes, and for not more than the 2 18 following full-time equivalent positions: 2 19 .................................................. $276,520,093 2 20 ............................................... FTEs 4,055.62 2 21 b. University hospitals 2 22 For salaries, support, maintenance, equipment, and 2 23 miscellaneous purposes and for medical and surgical 2 24 treatment of indigent patients as provided in chapter 2 25 255, and for medical education, and for not more than 2 26 the following full-time equivalent positions: 2 27 .................................................. $ 27,984,189 2 28 ............................................... FTEs 5,471.01 2 29 c. Psychiatric hospital 2 30 For salaries, support, maintenance, equipment, 2 31 miscellaneous purposes, and for the care, treatment, 2 32 and maintenance of committed and voluntary public 2 33 patients, and for not more than the following full- 2 34 time equivalent positions: 2 35 .................................................. $ 7,223,647 2 36 ............................................... FTEs 272.11 2 37 d. Center for disabilities and development 2 38 For salaries, support, maintenance, and 2 39 miscellaneous purposes, and for not more than the 2 40 following full-time equivalent positions: 2 41 .................................................. $ 6,526,426 2 42 ............................................... FTEs 143.34 2 43 e. Oakdale campus 2 44 For salaries, support, maintenance, and 2 45 miscellaneous purposes, and for not more than the 2 46 following full-time equivalent positions: 2 47 .................................................. $ 2,725,472 2 48 ............................................... FTEs 43.25 2 49 f. State hygienic laboratory 2 50 For salaries, support, maintenance, and 3 1 miscellaneous purposes and for not more than the 3 2 following full-time equivalent positions: 3 3 .................................................. $ 3,900,021 3 4 ............................................... FTEs 102.49 3 5 g. Family practice program 3 6 For allocation by the dean of the college of 3 7 medicine, with approval of the advisory board, to 3 8 qualified participants, to carry out chapter 148D for 3 9 the family practice program, including salaries and 3 10 support, and for not more than the following full-time 3 11 equivalent positions: 3 12 .................................................. $ 2,129,177 3 13 ............................................... FTEs 192.40 3 14 h. Child health care services 3 15 For specialized child health care services, 3 16 including childhood cancer diagnostic and treatment 3 17 network programs, rural comprehensive care for 3 18 hemophilia patients, and the Iowa high-risk infant 3 19 follow-up program, including salaries and support, and 3 20 for not more than the following full-time equivalent 3 21 positions: 3 22 .................................................. $ 665,709 3 23 ............................................... FTEs 53.46 3 24 i. Statewide cancer registry 3 25 For the statewide cancer registry, and for not more 3 26 than the following full-time equivalent positions: 3 27 .................................................. $ 183,322 3 28 ............................................... FTEs 2.40 3 29 j. Substance abuse consortium 3 30 For funds to be allocated to the Iowa consortium 3 31 for substance abuse research and evaluation, and for 3 32 not more than the following full-time equivalent 3 33 positions: 3 34 .................................................. $ 66,534 3 35 ............................................... FTEs 1.50 3 36 k. Center for biocatalysis 3 37 For the center for biocatalysis, and for not more 3 38 than the following full-time equivalent positions: 3 39 .................................................. $ 903,984 3 40 ............................................... FTEs 5.20 3 41 l. Primary health care initiative 3 42 For the primary health care initiative in the 3 43 college of medicine, and for not more than the 3 44 following full-time equivalent positions: 3 45 .................................................. $ 779,359 3 46 ............................................... FTEs 7.75 3 47 m. Birth defects registry 3 48 For the birth defects registry, and for not more 3 49 than the following full-time equivalent positions: 3 50 .................................................. $ 45,781 4 1 ............................................... FTEs 1.30 4 2 3. IOWA STATE UNIVERSITY OF SCIENCE AND TECHNOLOGY 4 3 a. General university 4 4 For salaries, support, maintenance, equipment, and 4 5 miscellaneous purposes, and for not more than the 4 6 following full-time equivalent positions: 4 7 .................................................. $217,686,641 4 8 ............................................... FTEs 3,647.42 4 9 b. Agricultural experiment station 4 10 For salaries, support, maintenance, and 4 11 miscellaneous purposes, and for not more than the 4 12 following full-time equivalent positions: 4 13 .................................................. $ 31,814,892 4 14 ............................................... FTEs 546.98 4 15 c. Cooperative extension service in agriculture 4 16 and home economics 4 17 For salaries, support, maintenance, and 4 18 miscellaneous purposes, and for not more than the 4 19 following full-time equivalent positions: 4 20 .................................................. $ 20,244,546 4 21 ............................................... FTEs 383.34 4 22 d. Leopold center 4 23 For agricultural research grants at Iowa state 4 24 university under section 266.39B, and for not more 4 25 than the following full-time equivalent positions: 4 26 .................................................. $ 476,225 4 27 ............................................... FTEs 11.25 4 28 e. Livestock disease research 4 29 For deposit in and the use of the livestock disease 4 30 research fund under section 267.8: 4 31 .................................................. $ 226,367 4 32 4. UNIVERSITY OF NORTHERN IOWA 4 33 a. General university 4 34 For salaries, support, maintenance, equipment, and 4 35 miscellaneous purposes, and for not more than the 4 36 following full-time equivalent positions: 4 37 .................................................. $ 97,950,925 4 38 ............................................... FTEs 1,398.01 4 39 b. Recycling and reuse center 4 40 For purposes of the recycling and reuse center, and 4 41 for not more than the following full-time equivalent 4 42 positions: 4 43 .................................................. $ 217,290 4 44 ............................................... FTEs 3.00 4 45 5. STATE SCHOOL FOR THE DEAF 4 46 For salaries, support, maintenance, and 4 47 miscellaneous purposes, and for not more than the 4 48 following full-time equivalent positions: 4 49 .................................................. $ 10,132,297 4 50 ............................................... FTEs 126.60 5 1 6. IOWA BRAILLE AND SIGHT SAVING SCHOOL 5 2 For salaries, support, maintenance, and 5 3 miscellaneous purposes, and for not more than the 5 4 following full-time equivalent positions: 5 5 .................................................. $ 5,669,244 5 6 ............................................... FTEs 81.00 5 7 7. TUITION AND TRANSPORTATION COSTS 5 8 For payment to local school boards for the tuition 5 9 and transportation costs of students residing in the 5 10 Iowa braille and sight saving school and the state 5 11 school for the deaf pursuant to section 262.43 and for 5 12 payment of certain clothing, prescription, and 5 13 transportation costs for students at these schools 5 14 pursuant to section 270.5: 5 15 .................................................. $ 7,500"" 5 16 #3. Page 1, by inserting after line 22 the 5 17 following: 5 18 "# . Page 64, by striking lines 28 through 32 5 19 and inserting the following: 5 20 "1. There is appropriated from the general fund of 5 21 the state to the commission for each fiscal year the 5 22 sum offorty-sixforty-eight millionfoureight 5 23 hundredseventeenthirty thousandnine hundred sixty-5 24fourseventy-five dollars for"." 5 25 #4. Page 1, by inserting after line 46 the 5 26 following: 5 27 "# . Page 65, by inserting after line 28 the 5 28 following: 5 29 "Sec. . Section 279.51, subsection 1, 5 30 unnumbered paragraph 1, Code 2003, is amended to read 5 31 as follows: 5 32 There is appropriated from the general fund of the 5 33 state to the department of education for the fiscal 5 34 year beginning July 1, 2000, and each succeeding 5 35 fiscal year, the sum oftwelvefourteen million five 5 36 hundred sixty thousand dollars. 5 37 Sec. . Section 279.51, subsection 1, paragraph 5 38 b, Code 2003, is amended to read as follows: 5 39 b. For the fiscal year beginning July 1, 1998, and 5 40 for each succeeding fiscal year,eightten million 5 41 five hundred ten thousand dollars of the funds 5 42 appropriated shall be allocated to the child 5 43 development coordinating council established in 5 44 chapter 256A for the purposes set out in subsection 2 5 45 of this section and section 256A.3."" 5 46 #5. Page 2, by inserting after line 34 the 5 47 following: 5 48 "# . By striking page 183, line 32 through page 5 49 184, line 9, and inserting the following: 5 50 "Sec. . Section 257.8, subsection 1, Code 6 1 Supplement 2003, is amended to read as follows: 6 2 1. STATE PERCENT OF GROWTH. The state percent of 6 3 growth for the budget year beginning July 1, 2003, is 6 4 two percent. The state percent of growth for the 6 5 budget year beginning July 1, 2004, istwosix 6 6 percent. The state percent of growth for each 6 7 subsequent budget year shall be established by statute 6 8 which shall be enacted within thirty days of the 6 9 submission in the year preceding the base year of the 6 10 governor's budget under section 8.21. The 6 11 establishment of the state percent of growth for a 6 12 budget year shall be the only subject matter of the 6 13 bill which enacts the state percent of growth for a 6 14 budget year."" 6 15 #6. Page 2, by striking lines 35 through 37 and 6 16 inserting the following: 6 17 "# . By striking page 184, line 19, through page 6 18 185, line 31, and inserting the following: 6 19 "Sec. . Section 257.35, subsection 2, Code 6 20 Supplement 2003, is amended by striking the 6 21 subsection."" 6 22 #7. Page 7, by striking lines 47 and 48 and 6 23 inserting the following: 6 24 "# . Page 204, by striking lines 18 and 19, and 6 25 inserting the following: 6 26 "1. The section of this division of this Act 6 27 amending section 257.8 is applicable for"." 6 28 #8. Page 8, by inserting after line 5 the 6 29 following: 6 30 "# . Page 205, by inserting after line 21 the 6 31 following: 6 32 "DIVISION 6 33 INCOME TAX 6 34 Sec. . Section 422.5, subsection 1, paragraphs 6 35 a through i, Code Supplement 2003, are amended to read 6 36 as follows: 6 37 a. On all taxable income from zero through one 6 38 thousand dollars,thirty-six hundredthsfour-tenths of 6 39 one percent. 6 40 b. On all taxable income exceeding one thousand 6 41 dollars but not exceeding two thousand dollars, 6 42seventy-two hundredthseight-tenths of one percent. 6 43 c. On all taxable income exceeding two thousand 6 44 dollars but not exceeding four thousand dollars, two 6 45 andforty-three hundredthsseven-tenths percent. 6 46 d. On all taxable income exceeding four thousand 6 47 dollars but not exceeding nine thousand dollars,four6 48and one-halffive percent. 6 49 e. On all taxable income exceeding nine thousand 6 50 dollars but not exceeding fifteen thousand dollars, 7 1 six andtwelve hundredthseight-tenths percent. 7 2 f. On all taxable income exceeding fifteen 7 3 thousand dollars but not exceeding twenty thousand 7 4 dollars,six and forty-eight hundredthsseven and two- 7 5 tenths percent. 7 6 g. On all taxable income exceeding twenty thousand 7 7 dollars but not exceeding thirty thousand dollars,six7 8and eight-tenthsseven and fifty-five hundredths 7 9 percent. 7 10 h. On all taxable income exceeding thirty thousand 7 11 dollars but not exceeding forty-five thousand dollars, 7 12seven and ninety-two hundredthseight and eight-tenths 7 13 percent. 7 14 i. On all taxable income exceeding forty-five 7 15 thousand dollars,eightnine and ninety-eight 7 16 hundredths percent. 7 17 Sec. . Section 422.5, subsection 1, paragraph 7 18 j, Code Supplement 2003, is amended to read as 7 19 follows: 7 20 j.(1)The tax imposed upon the taxable income of 7 21 a nonresident shall be computed by reducing the amount 7 22 determined pursuant to paragraphs "a" through "i" by 7 23 the amounts of nonrefundable credits under this 7 24 division and by multiplying this resulting amount by a 7 25 fraction of which the nonresident's net income 7 26 allocated to Iowa, as determined in section 422.8, 7 27 subsection 2,paragraph "a",is the numerator and the 7 28 nonresident's total net income computed under section 7 29 422.7 is the denominator. This provision also applies 7 30 to individuals who are residents of Iowa for less than 7 31 the entire tax year. 7 32(2) The tax imposed upon the taxable income of a7 33resident shareholder in an S corporation which has in7 34effect for the tax year an election under subchapter S7 35of the Internal Revenue Code and carries on business7 36within and without the state may be computed by7 37reducing the amount determined pursuant to paragraphs7 38"a" through "i" by the amounts of nonrefundable7 39credits under this division and by multiplying this7 40resulting amount by a fraction of which the resident's7 41net income allocated to Iowa, as determined in section7 42422.8, subsection 2, paragraph "b", is the numerator7 43and the resident's total net income computed under7 44section 422.7 is the denominator. If a resident7 45shareholder has elected to take advantage of this7 46subparagraph, and for the next tax year elects not to7 47take advantage of this subparagraph, the resident7 48shareholder shall not reelect to take advantage of7 49this subparagraph for the three tax years immediately7 50following the first tax year for which the shareholder8 1elected not to take advantage of this subparagraph,8 2unless the director consents to the reelection. This8 3subparagraph also applies to individuals who are8 4residents of Iowa for less than the entire tax year.8 5This subparagraph shall not affect the amount of8 6the taxpayer's checkoff to the Iowa election campaign8 7fund under section 68A.601, the checkoff for the fish8 8and game fund in section 456A.16, the credits from tax8 9provided in sections 422.10, 422.11A, and 422.12 and8 10the allocation of these credits between spouses if the8 11taxpayers filed separate returns or separately on8 12combined returns.8 13 Sec. . Section 422.5, subsection 1, paragraph 8 14 k, unnumbered paragraph 4, Code Supplement 2003, is 8 15 amended to read as follows: 8 16 In the case of a resident, including a resident 8 17 estate or trust, the state's apportioned share of the 8 18 state alternative minimum tax is one hundred percent 8 19 of the state alternative minimum tax computed in this 8 20 subsection. In the case ofa resident or part-year8 21resident shareholder in an S corporation which has in8 22effect for the tax year an election under subchapter S8 23of the Internal Revenue Code and carries on business8 24within and without the state,a nonresident, including 8 25 a nonresident estate or trust, or an individual, 8 26 estate, or trust that is domiciled in the state for 8 27 less than the entire tax year, the state's apportioned 8 28 share of the state alternative minimum tax is the 8 29 amount of tax computed under this subsection, reduced 8 30 by the applicable credits in sections 422.10 through 8 31 422.12 and this result multiplied by a fraction with a 8 32 numerator of the sum of state net income allocated to 8 33 Iowa as determined in section 422.8, subsection 2, 8 34paragraph "a" or "b" as applicable,plus tax 8 35 preference items, adjustments, and losses under 8 36 subparagraph (1) attributable to Iowa and with a 8 37 denominator of the sum of total net income computed 8 38 under section 422.7 plus all tax preference items, 8 39 adjustments, and losses under subparagraph (1). In 8 40 computing this fraction, those items excludable under 8 41 subparagraph (1) shall not be used in computing the 8 42 tax preference items. Married taxpayers electing to 8 43 file separate returns or separately on a combined 8 44 return must allocate the minimum tax computed in this 8 45 subsection in the proportion that each spouse's 8 46 respective preference items, adjustments, and losses 8 47 under subparagraph (1) bear to the combined preference 8 48 items, adjustments, and losses under subparagraph (1) 8 49 of both spouses. 8 50 Sec. . Section 422.7, subsection 21, Code 9 1 Supplement 2003, is amended by striking the 9 2 subsection. 9 3 Sec. . Section 422.8, subsection 2, Code 9 4 Supplement 2003, is amended to read as follows: 9 5 2.a.Nonresident's net income allocated to Iowa 9 6 is the net income, or portion of net income, which is 9 7 derived from a business, trade, profession, or 9 8 occupation carried on within this state or income from 9 9 any property, trust, estate, or other source within 9 10 Iowa. However, income derived from a business, trade, 9 11 profession, or occupation carried on within this state 9 12 and income from any property, trust, estate, or other 9 13 source within Iowa shall not include distributions 9 14 from pensions, including defined benefit or defined 9 15 contribution plans, annuities, individual retirement 9 16 accounts, and deferred compensation plans or any 9 17 earnings attributable thereto so long as the 9 18 distribution is directly related to an individual's 9 19 documented retirement and received while the 9 20 individual is a nonresident of this state. If a 9 21 business, trade, profession, or occupation is carried 9 22 on partly within and partly without the state, only 9 23 the portion of the net income which is fairly and 9 24 equitably attributable to that part of the business, 9 25 trade, profession, or occupation carried on within the 9 26 state is allocated to Iowa for purposes of section 9 27 422.5, subsection 1, paragraph "j", and section 422.13 9 28 and income from any property, trust, estate, or other 9 29 source partly within and partly without the state is 9 30 allocated to Iowa in the same manner, except that 9 31 annuities, interest on bank deposits and interest- 9 32 bearing obligations, and dividends are allocated to 9 33 Iowa only to the extent to which they are derived from 9 34 a business, trade, profession, or occupation carried 9 35 on within the state. 9 36b. A resident's income allocable to Iowa is the9 37income determined under section 422.7 reduced by items9 38of income and expenses from an S corporation that9 39carries on business within and without the state when9 40those items of income and expenses pass directly to9 41the shareholders under provisions of the Internal9 42Revenue Code. These items of income and expenses are9 43increased by the greater of the following:9 44(1) The net income or loss of the corporation9 45which is fairly and equitably attributable to this9 46state under section 422.33, subsections 2 and 3.9 47(2) Any cash or the value of property9 48distributions which are made only to the extent that9 49they are paid from income upon which Iowa income tax9 50has not been paid, as determined under rules of the10 1director, reduced by the amount of any of these10 2distributions that are made to enable the shareholder10 3to pay federal income tax on items of income, loss,10 4and expenses from the corporation.10 5 Sec. . Section 422.8, subsection 6, Code 10 6 Supplement 2003, is amended by striking the 10 7 subsection. 10 8 Sec. . Section 422.37, Code 2003, is amended by 10 9 striking the section and inserting in lieu thereof the 10 10 following: 10 11 422.37 COMBINED RETURNS. 10 12 An affiliated group of corporations shall, under 10 13 rules prescribed by the director, file a combined 10 14 return showing the net income of all corporations 10 15 engaged in a unitary business, subject to the 10 16 following: 10 17 1. The affiliated group filing under this section 10 18 shall meet the requirements to file a consolidated 10 19 return for federal income tax purposes under the 10 20 Internal Revenue Code for the same taxable year. 10 21 2. All members of the affiliated group shall join 10 22 in the filing of an Iowa combined return to the extent 10 23 they are engaged in a unitary business. 10 24 3. Members of the affiliated group exempt from 10 25 taxation by section 422.34 shall not be included in a 10 26 combined return. 10 27 4. All members of the affiliated group shall use 10 28 the statutory method of allocation and apportionment 10 29 unless the director has granted permission to all 10 30 members to use an alternative method of allocation and 10 31 apportionment. 10 32 5. The computation of federal taxable income 10 33 before the net operating loss deduction on a combined 10 34 return for members of an affiliated group shall be 10 35 made in the same manner and under the same procedures, 10 36 including all intercompany adjustments and 10 37 eliminations, as are required for consolidating the 10 38 incomes of affiliated corporations for the taxable 10 39 year for federal income tax purposes in accordance 10 40 with the Internal Revenue Code. 10 41 6. The combined income approach reflects the 10 42 federal taxable income of the unitary members of the 10 43 Iowa affiliated group as a single economic unit, with 10 44 the application of the adjustments in section 422.35, 10 45 and the affiliated group shall only file one income 10 46 tax return. Any nonunitary members of the federal 10 47 affiliated group subject to tax imposed by section 10 48 422.33 must each file its own separate corporate 10 49 income tax return. The net income of an affiliated 10 50 group is determined by applying the apportionment 11 1 formula against the combined income of the affiliated 11 2 group. 11 3 7. Only the sales of those corporations in the 11 4 affiliated group subject to the tax imposed by section 11 5 422.33 are included in the numerator of the 11 6 apportionment formula. 11 7 8. Only those corporations in the affiliated group 11 8 subject to the tax imposed by section 422.33 are 11 9 jointly and severally liable for the Iowa tax of the 11 10 combined group. 11 11 Sec. . EFFECTIVE AND APPLICABILITY DATES. This 11 12 division of this Act, being deemed of immediate 11 13 importance, takes effect upon enactment and applies as 11 14 follows: 11 15 1. The section of this division amending section 11 16 422.5, subsection 1, paragraphs "a" through "i", apply 11 17 to tax years beginning on or after January 1, 2005. 11 18 2. The section of this division amending section 11 19 422.5, subsection 1, paragraphs "j" and "k", and 11 20 section 422.8 apply retroactively to January 1, 2004, 11 21 for tax years beginning on or after that date. 11 22 3. The section of this division amending section 11 23 422.7 applies retroactively to January 1, 2004, for 11 24 tax years beginning on or after that date. 11 25 4. The section of this division amending section 11 26 422.37 applies retroactively to January 1, 2004, for 11 27 tax years beginning on or after that date. 11 28 DIVISION 11 29 SALES AND USE TAXES 11 30 Sec. . Section 423.3, subsection 27, as enacted 11 31 by 2003 Iowa Acts, First Extraordinary Session, 11 32 chapter 2, section 96, is amended to read as follows: 11 33 27. The sales price of tangible personal property 11 34 sold, or of services furnished, to a nonprofit 11 35 hospital licensed pursuant to chapter 135B which is 11 36 located in a rural county to be used in the operation 11 37 of the hospital. For purposes of this exemption, 11 38 "rural county" is a county with a population of not 11 39 more than fifty thousand according to the latest 11 40 federal census. 11 41 Sec. . Section 423.3, subsection 45, as enacted 11 42 by 2003 Iowa Acts, First Extraordinary Session, 11 43 chapter 2, section 96, is amended by striking the 11 44 subsection and inserting in lieu thereof the 11 45 following: 11 46 45. The sales price from the sales by a trade shop 11 47 to a printer of lithographic-offset plates, 11 48 photoengraved plates, engravings, negatives, color 11 49 separations, typesetting, the end products of image 11 50 modulation, or any base material used as a carrier for 12 1 light-sensitive emulsions to be used by the printer to 12 2 complete a finished product for sale at retail. For 12 3 purposes of this subsection, "trade shop" means a 12 4 business which is not normally engaged in printing and 12 5 which sells supplies to printers, including but not 12 6 limited to, those supplies enumerated in this 12 7 subsection. 12 8 Sec. . Section 423.3, subsections 51, 66, 67, 12 9 74, 75, 76, and 77, as enacted by 2003 Iowa Acts, 12 10 First Extraordinary Session, chapter 2, section 96, 12 11 are amended by striking the subsections. 12 12 Sec. . Section 423.6, subsections 17 through 12 13 21, as enacted by 2003 Iowa Acts, First Extraordinary 12 14 Session, chapter 2, section 99, are amended by 12 15 striking the subsections. 12 16 DIVISION 12 17 INSURANCE PREMIUMS TAXES 12 18 Sec. . Section 432.1, subsection 1, paragraph 12 19 a, Code Supplement 2003, is amended to read as 12 20 follows: 12 21 a.The applicable percent, as provided in12 22subsection 2,Two percent of the gross amount of 12 23 premiums received during the preceding calendar year 12 24 by every life insurance company or association, not 12 25 including fraternal beneficiary associations, or the 12 26 gross payments or deposits collected from holders of 12 27 fraternal beneficiary association certificates, on 12 28 contracts of insurance covering risks resident in this 12 29 state during the preceding year, including contracts 12 30 for group insurance and annuities and without 12 31 including or deducting any amounts received or paid 12 32 for reinsurance. 12 33 Sec. . Section 432.1, subsection 2, Code 12 34 Supplement 2003, is amended by striking the 12 35 subsection. 12 36 Sec. . Section 432.1, subsection 3, Code 12 37 Supplement 2003, is amended to read as follows: 12 38 3.The applicable percent, as provided in12 39subsection 4,Two percent of the gross amount of 12 40 premiums, assessments, and fees received during the 12 41 preceding calendar year by every company or 12 42 association other than life on contracts of insurance 12 43 other than life for business done in this state, 12 44 including all insurance upon property situated in this 12 45 state, after deducting the amounts returned upon 12 46 canceled policies, certificates and rejected 12 47 applications but not including the gross premiums, 12 48 assessments, and fees in connection with ocean marine 12 49 insurance authorized in section 515.48. 12 50 Sec. . Section 432.1, subsection 4, Code 13 1 Supplement 2003, is amended by striking the 13 2 subsection. 13 3 Sec. . Section 432.1, subsection 6, Code 13 4 Supplement 2003, is amended by striking the subsection 13 5 and inserting in lieu thereof the following: 13 6 6. Each insurance company and association 13 7 transacting business in this state whose Iowa premium 13 8 tax liability for the preceding calendar year was one 13 9 thousand dollars or more shall remit on or before June 13 10 1, on a prepayment basis, an amount equal to one-half 13 11 of the premium tax liability for the preceding 13 12 calendar year. 13 13 Sec. . Section 432.2, Code Supplement 2003, is 13 14 amended to read as follows: 13 15 432.2 MUTUAL SERVICE CORPORATIONS. 13 16 Notwithstanding section 432.1, a hospital service 13 17 corporation, medical service corporation, 13 18 pharmaceutical service corporation, optometric service 13 19 corporation, and any other service corporation 13 20 operating under chapter 514 shall pay as taxes to the 13 21 director of revenue an amount equal tothe applicable13 22percent, as provided in section 432.1, subsection 2,13 23 two percent of the gross amount of payments received 13 24 during the preceding calendar year for subscriber 13 25 contracts covering residents in this state after 13 26 deducting the amounts returned to subscribers upon 13 27 canceled subscriber contracts and rejected 13 28 applications. Section 432.1, subsections 5 and 6, 13 29 apply to the tax imposed by this section. 13 30 Sec. . Section 518.18, subsection 1, Code 13 31 Supplement 2003, is amended to read as follows: 13 321. The applicableTwo percent of the gross amount 13 33 of premiums received during the preceding calendar 13 34 year, after deducting the amount returned upon the 13 35 canceled policies, certificates, and rejected 13 36 applications; and after deducting premiums paid for 13 37 windstorm or hail reinsurance on properties 13 38 specifically reinsured. However, the reinsurer of 13 39 such windstorm or hail risks shall paythe applicable13 40 a two percentoftax on the gross amount of 13 41 reinsurance premiums received upon such risks after 13 42 deducting the amounts returned upon canceled policies, 13 43 certificates, and rejected applications.For purposes13 44of this section, "applicable percent" means the same13 45as specified in section 432.1, subsection 4.13 46 Sec. . Section 518.18, subsections 2 and 3, 13 47 Code Supplement 2003, are amended by striking the 13 48 subsections. 13 49 Sec. . Section 518A.35, subsection 1, Code 13 50 Supplement 2003, is amended to read as follows: 14 11.A state mutual insurance association doing 14 2 business under this chapter shall on or before the 14 3 first day of March, each year, pay to the director of 14 4 revenue, or a depository designated by the director, a 14 5 sum equivalent tothe applicabletwo percent of the 14 6 gross receipts from premiums and fees for business 14 7 done within the state, including all insurance upon 14 8 property situated in the state without including or 14 9 deducting any amounts received or paid for 14 10 reinsurance. However, a company reinsuring windstorm 14 11 or hail risks written by county mutual insurance 14 12 associations is required to paythe applicablea two 14 13 percent tax on the gross amount of reinsurance 14 14 premiums received upon such risks, but after deducting 14 15 the amount returned upon canceled policies and 14 16 rejected applications covering property situated 14 17 within the state, and dividends returned to 14 18 policyholders on property situated within the state. 14 19For purposes of this section, "applicable percent"14 20means the same as specified in section 432.1,14 21subsection 4.14 22 Sec. . Section 518A.35, subsections 2 and 3, 14 23 Code Supplement 2003, are amended by striking the 14 24 subsections. 14 25 DIVISION 14 26 USE TAX REVENUE TRANSFER 14 27 Sec. . Notwithstanding the provisions of 14 28 section 423.43, as enacted by 2003 Iowa Acts, First 14 29 Extraordinary Session, chapter 2, section 136, from 14 30 the use tax revenues to be credited to the road use 14 31 tax fund pursuant to section 423.43, subsection 1, as 14 32 enacted by 2003 Iowa Acts, First Extraordinary 14 33 Session, chapter 2, section 136, the first seven 14 34 million dollars collected during the fiscal year 14 35 beginning July 1, 2004, and ending June 30, 2005, 14 36 shall be credited to the general fund of the state. 14 37 DIVISION 14 38 REPEAL OF NEW TAX INCENTIVE CREDIT AND REFUND 14 39 Sec. . 2004 Iowa Acts, Senate File 2290, is 14 40 repealed. 14 41 Sec. . EFFECTIVE DATE. This division of this 14 42 Act, being deemed of immediate importance, takes 14 43 effect upon enactment."" 14 44 #9. By renumbering as necessary. 14 45 14 46 14 47 14 48 FALLON of Polk 14 49 SF 2298.546 80 14 50 rn/pj
Text: H08388 Text: H08390 Text: H08300 - H08399 Text: H Index Bills and Amendments: General Index Bill History: General Index
© 2004 Cornell College and League of Women Voters of Iowa
Comments about this site or page?
webmaster@legis.iowa.gov.
Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.
Last update: Tue Apr 6 03:31:17 CDT 2004
URL: /DOCS/GA/80GA/Legislation/H/08300/H08389/040405.html
jhf