Text: HF00682 Text: HF00684 Text: HF00600 - HF00699 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 HOUSE FILE 683 1 2 1 3 AN ACT 1 4 RELATING TO ECONOMIC DEVELOPMENT, FINANCIAL, TAXATION, AND 1 5 REGULATORY MATTERS, MAKING AND REVISING APPROPRIATIONS, 1 6 MODIFYING PENALTIES, PROVIDING A FEE, AND INCLUDING 1 7 EFFECTIVE, APPLICABILITY, AND RETROACTIVE APPLICABILITY 1 8 PROVISIONS. 1 9 1 10 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 1 11 1 12 DIVISION I 1 13 STATE EMPLOYEE SALARIES 1 14 Section 1. 2003 Iowa Acts, Senate File 458, section 48, 1 15 unnumbered paragraphs 1 and 2, if enacted, are amended to read 1 16 as follows: 1 17 There is appropriated from the general fund of the state to 1 18 the salary adjustment fund for distribution by the department 1 19 of management to the various state departments, boards, 1 20 commissions, councils, and agencies, and to the state board of 1 21 regents for those persons employed at the state school for the 1 22 deaf and the Iowa braille and sight saving school, for the 1 23 fiscal year beginning July 1, 2003, and ending June 30, 2004, 1 24 the amount of$28,000,000$30,000,000, or so much thereof as 1 25 may be necessary, to fully fund annual pay adjustments, 1 26 expense reimbursements, and related benefits implemented 1 27 pursuant to the following: 1 28 Of the amount appropriated in this section,$2,668,0001 29 $2,818,000 shall be allocated to the judicial branch for the 1 30 purpose of funding annual pay adjustments, expense 1 31 reimbursements, and related benefits implemented for judicial 1 32 branch employees. In distributing the remainder of the amount 1 33 appropriated in this section, the department of management, in 1 34 order to address essential public protection functions and 1 35 recognizing the availability of funds appropriated in other 2 1 Acts of the general assembly and other sources, shall give 2 2 priority, in descending order, to the department of 2 3 corrections, department of human services, and department of 2 4 public safety, and then to the remaining state departments, 2 5 boards, commissions, councils, and agencies to which the 2 6 appropriation is applicable. 2 7 Sec. 2. STATE COURTS – JUSTICES, JUDGES, AND MAGISTRATES. 2 8 1. Of the amount allocated for the judicial branch in 2003 2 9 Iowa Acts, Senate File 458, section 48, if enacted, $150,000 2 10 is allocated to fund the changes in this section to the 2 11 salaries of justices, judges, and magistrates. 2 12 2. The following annual salary rates shall be paid to the 2 13 persons holding the judicial positions indicated during the 2 14 fiscal year beginning July 1, 2003, effective with the pay 2 15 period beginning December 5, 2003, and for subsequent pay 2 16 periods: 2 17 a. Chief justice of the supreme court: 2 18 .................................................. $ 127,040 2 19 b. Each justice of the supreme court: 2 20 .................................................. $ 122,500 2 21 c. Chief judge of the court of appeals: 2 22 .................................................. $ 122,380 2 23 d. Each associate judge of the court of appeals: 2 24 .................................................. $ 117,850 2 25 e. Each chief judge of a judicial district: 2 26 .................................................. $ 116,760 2 27 f. Each district judge except the chief judge of a 2 28 judicial district: 2 29 .................................................. $ 112,010 2 30 g. Each district associate judge: 2 31 .................................................. $ 97,610 2 32 h. Each associate juvenile judge: 2 33 .................................................. $ 97,610 2 34 i. Each associate probate judge: 2 35 .................................................. $ 97,610 3 1 j. Each judicial magistrate: 3 2 .................................................. $ 29,100 3 3 k. Each senior judge: 3 4 .................................................. $ 6,500 3 5 3. Persons receiving the salary rates established under 3 6 subsection 2 shall not receive any additional salary 3 7 adjustments provided by 2003 Iowa Acts, Senate File 458, 3 8 division V. 3 9 DIVISION II 3 10 APPROPRIATIONS AND APPROPRIATIONS REVISIONS 3 11 INSURANCE DIVISION 3 12 Sec. 3. INSURANCE STUDY. There is appropriated from the 3 13 general fund of the state to the department of commerce for 3 14 the fiscal year beginning July 1, 2003, and ending June 30, 3 15 2004, the following amount, or so much thereof as is 3 16 necessary, to be used for the purpose designated: 3 17 For the insurance division to implement the school health 3 18 insurance reform team study in accordance with 2003 Iowa Acts, 3 19 Senate File 386: 3 20 .................................................. $ 15,000 3 21 DEPARTMENT OF MANAGEMENT 3 22 Sec. 4. LOCAL GOVERNMENT INNOVATION FUND APPROPRIATION. 3 23 There is appropriated from the general fund of the state to 3 24 the department of management for the fiscal year beginning 3 25 July 1, 2003, and ending June 30, 2004, the following amount, 3 26 or so much thereof as is necessary, to be used for the purpose 3 27 designated: 3 28 For deposit in the local government innovation fund created 3 29 in section 8.64: 3 30 .................................................. $ 1,000,000 3 31 Notwithstanding section 8.64, subsection 4, if enacted by 3 32 2003 Iowa Acts, Senate File 453, section 27, the local 3 33 government innovation fund committee may provide up to 20 3 34 percent of the amount appropriated in this section in the form 3 35 of forgivable loans or as grants for those projects that 4 1 propose a new and innovative sharing initiative that would 4 2 serve as an important model for cities and counties. 4 3 DEPARTMENT OF HUMAN SERVICES 4 4 Sec. 5. COUNTY HOSPITALS. There is appropriated from the 4 5 general fund of the state to the department of human services 4 6 for the fiscal year beginning July 1, 2003, and ending June 4 7 30, 2004, the following amount, or so much thereof as is 4 8 necessary, for the purpose designated: 4 9 For support of mental health care services provided to 4 10 persons who are elderly or poor by county hospitals in 4 11 counties having a population of two hundred twenty-five 4 12 thousand or more: 4 13 .................................................. $ 312,000 4 14 Sec. 6. 2003 Iowa Acts, House File 667, section 13, 4 15 subsection 2, is amended to read as follows: 4 16 2. The department may either continue or reprocure the 4 17 contract existing on June 30, 2003, with the department's 4 18 fiscal agent. If the department initiates reprocurement of 4 19 the contract, of the amount appropriated in this Act for the 4 20 medical assistance program, up to $500,000 may be used to 4 21 begin the implementation process. 4 22 DEPARTMENT OF CORRECTIONS 4 23 Sec. 7. There is appropriated from the rebuild Iowa 4 24 infrastructure fund to the department of corrections for the 4 25 fiscal year beginning July 1, 2003, and ending June 30, 2004, 4 26 the following amounts, or so much thereof as is necessary, to 4 27 be used for the purposes designated: 4 28 1. For expansion of the Luster Heights facility into a 4 29 community-based corrections facility and an institutional work 4 30 and substance abuse treatment center: 4 31 .................................................. $ 92,000 4 32 2. For conversion of the Clarinda lodge into minimum 4 33 security bed space: 4 34 .................................................. $ 730,400 4 35 Sec. 8. 2003 Iowa Acts, Senate File 439, section 4, 5 1 subsection 1, paragraphs b and g, as enacted, are amended to 5 2 read as follows: 5 3 b. For the operation of the Anamosa correctional facility, 5 4 including salaries, support, maintenance, employment of 5 5 correctional officers and a part-time chaplain to provide 5 6 religious counseling to inmates of a minority race, 5 7 miscellaneous purposes, and for not more than the following 5 8 full-time equivalent positions: 5 9 .................................................. $24,531,9175 10 25,196,085 5 11 ............................................... FTEs375.755 12 385.25 5 13 Moneys are provided within this appropriation for one full- 5 14 time substance abuse counselor for the Luster Heights 5 15 facility, for the purpose of certification of a substance 5 16 abuse program at that facility. Of the funds appropriated in 5 17 this paragraph "b", $664,168 is allocated for implementation 5 18 costs associated with expansion of the Luster Heights 5 19 facility. 5 20 g. For the operation of the Clarinda correctional 5 21 facility, including salaries, support, maintenance, employment 5 22 of correctional officers, miscellaneous purposes, and for not 5 23 more than the following full-time equivalent positions: 5 24 .................................................. $18,595,7885 25 19,389,220 5 26 ............................................... FTEs291.765 27 304.58 5 28 Moneys received by the department of corrections as 5 29 reimbursement for services provided to the Clarinda youth 5 30 corporation are appropriated to the department and shall be 5 31 used for the purpose of operating the Clarinda correctional 5 32 facility. 5 33 Of the funds appropriated in this paragraph "g", $793,432 5 34 is allocated for implementation costs associated with 5 35 expansion of the conversion of the Clarinda lodge, with 6 1 $277,500 of the allocation for one-time costs and $515,932 for 6 2 ongoing costs. 6 3 PUBLIC TRANSIT 6 4 Sec. 9. 2003 Iowa Acts, Senate File 458, section 8, if 6 5 enacted, is amended to read as follows: 6 6 SEC. 8. PUBLIC TRANSIT ASSISTANCE APPROPRIATION. 6 7 Notwithstanding section 312.2, subsection 14, the amount 6 8 appropriated from the general fund of the state under section 6 9 312.2, subsection 14, to the state department of 6 10 transportation for public transit assistance under chapter 6 11 324A for the fiscal year beginning July 1, 2003, and ending 6 12 June 30, 2004, is reduced by the following amount: 6 13 .................................................. $1,298,6756 14 2,582,800 6 15 OFFICE OF THE GOVERNOR 6 16 Sec. 10. 2003 Iowa Acts, House File 655, section 5, 6 17 subsection 1, if enacted, is amended to read as follows: 6 18 1. GENERAL OFFICE 6 19 For salaries, support, maintenance, and miscellaneous 6 20 purposes for the general office of the governor and the 6 21 general office of the lieutenant governor, and for not more 6 22 than the following full-time equivalent positions: 6 23 .................................................. $1,243,6436 24 1,493,643 6 25 ............................................... FTEs17.256 26 19.25 6 27 Of the amount appropriated in this section, $250,000 is 6 28 allocated for two full-time equivalent positions in the office 6 29 of the governor that were previously funded by other state 6 30 departments and agencies. 6 31 DEPARTMENT OF REVENUE 6 32 Sec. 11. 2003 Iowa Acts, House File 655, section 31, if 6 33 enacted, is amended to read as follows: 6 34 SEC. 31. DEPARTMENT OF REVENUE. There is appropriated 6 35 from the general fund of the state to the department of 7 1 revenue for the fiscal year beginning July 1, 2003, and ending 7 2 June 30, 2004, the following amounts, or so much thereof as is 7 3 necessary, to be used for the purposes designated, and for not 7 4 more than the following full-time equivalent positions used 7 5 for the purposes designated in subsection 1: 7 6 ............................................... FTEs378.877 7 380.87 7 8 Of the full-time equivalent positions authorized in this 7 9 section, two full-time equivalent positions are allocated for 7 10 new positions to assist in preparation of information for the 7 11 revenue estimating conference and in improving the turnaround 7 12 time for processing corporate tax filings. 7 13 1. COMPLIANCE – INTERNAL RESOURCES MANAGEMENT – STATE 7 14 FINANCIAL MANAGEMENT – STATEWIDE PROPERTY TAX ADMINISTRATION 7 15 For salaries, support, maintenance, and miscellaneous 7 16 purposes: 7 17 .................................................. $23,259,1117 18 23,359,111 7 19 Of the funds appropriated pursuant to this subsection, 7 20 $400,000 shall be used to pay the direct costs of compliance 7 21 related to the collection and distribution of local sales and 7 22 services taxes imposed pursuant to chapters 422B and 422E. 7 23 The director of revenue shall prepare and issue a state 7 24 appraisal manual and the revisions to the state appraisal 7 25 manual as provided in section 421.17, subsection 18, without 7 26 cost to a city or county. 7 27 2. COLLECTION COSTS AND FEES 7 28 For payment of collection costs and fees pursuant to 7 29 section 422.26: 7 30 .................................................. $ 28,166 7 31 DEPARTMENT OF PUBLIC HEALTH 7 32 Sec. 12. 2003 Iowa Acts, House File 667, section 2, 7 33 subsection 8, as enacted, is amended to read as follows: 7 34 8. INFECTIOUS DISEASES 7 35 For reducing the incidence and prevalence of communicable 8 1 diseases, and for not more than the following full-time 8 2 equivalent positions: 8 3 .................................................. $977,3408 4 1,074,888 8 5 ............................................... FTEs 36.90 8 6 DIVISION III 8 7 MISCELLANEOUS PROVISIONS 8 8 Sec. 13. GOVERNMENT OVERSIGHT COMMITTEE – REVIEW OF 8 9 CONTINUING CARE RETIREMENT COMMUNITIES – ASSISTED LIVING 8 10 PROGRAM APPLICABILITY. The government oversight committees 8 11 shall review the application of chapter 231C, relating to 8 12 assisted living programs, to continuing care retirement 8 13 communities, as defined in section 523D.1. The committees 8 14 shall submit recommendations for any legislation deemed 8 15 necessary for consideration during the 2004 regular 8 16 legislative session. 8 17 Sec. 14. Section 7J.1, subsection 1, as enacted by 2003 8 18 Iowa Acts, Senate File 453, section 32, and amended by 2003 8 19 Iowa Acts, Senate File 458, section 85, is amended to read as 8 20 follows: 8 21 1. DESIGNATION OF CHARTER AGENCIES – PURPOSE. The 8 22 governor may, by executive order, designate state departments 8 23 or agencies, as described in section 7E.5, or the Iowa lottery 8 24 authority established in chapter 99G, other than the 8 25 department of administrative services, if the department is 8 26 established in law, or the department of management, as a 8 27 charter agency by July 1, 2003. The designation of a charter 8 28 agency shall be for a period of five years which shall 8 29 terminate as of June 30, 2008. The purpose of designating a 8 30 charter agency is to grant the agency additional authority as 8 31 provided by this chapter while reducing the total 8 32 appropriations to the agency. 8 33 Sec. 15. Section 15E.193B, subsection 4, Code 2003, as 8 34 amended by 2003 Iowa Acts, Senate File 458, section 100, if 8 35 enacted, is amended to read as follows: 9 1 4. The eligible housing business shall complete its 9 2 building or rehabilitation within two years from the time the 9 3 business begins construction on the single-family homes and 9 4 dwelling units. The failure to complete construction or 9 5 rehabilitation within two years shall result in the eligible 9 6 housing business becoming ineligible and subject to the 9 7 repayment requirements and penalties enumerated in subsection 9 8 7. The department may extend the prescribed two-year 9 9 completion period for any current or future project which has 9 10 not been completed if the department determines that 9 11 completion within the two-year period is impossible or 9 12 impractical as a result of a substantial loss caused by flood, 9 13 fire, earthquake, storm, or other catastrophe. For purposes 9 14 of this subsection, "substantial loss" means damage or 9 15 destruction in an amount in excess of thirty percent of the 9 16 project's expected eligible basis as set forth in the eligible 9 17 housing business's application. 9 18 Sec. 16. Section 215.14, Code 2003, is amended to read as 9 19 follows: 9 20 215.14 APPROVAL BY DEPARTMENT. 9 21 A commercial weighing and measuring device shall not be 9 22 installed in this state unless approved by the department. 9 23All livestock scales and9 24 1. A pit typescalesscale or any other scale installed in 9 25 a pit, regardless of capacity, that is installed on or after 9 26 July 1, 1990, shall have a clearance of not less than four 9 27 feet from the finished floor line of the scale to the bottom 9 28 of the "I" beam of the scale bridge. Livestock shall not be 9 29 weighed on any scale other than a livestock scale or pit type 9 30 scale. 9 31 2. An electronic pitless scale shall be placed on concrete 9 32 footings with concrete floor. The concrete floor shall allow 9 33 for adequate drainage away from the scale as required by the 9 34 department. There shall be a clearance of not less than eight 9 35 inches between the weigh bridge and the concrete floor to 10 1 facilitate inspection and cleaning. 10 2 3. After approval by the department, the specifications 10 3 for a commercial weighing and measuring device shall be 10 4 furnished to the purchaser of the device by the manufacturer. 10 5 The approval shall be based upon the recommendation of the 10 6 United States national institute of standards and technology. 10 7 Sec. 17. Section 231C.17, subsection 4, if enacted by 2003 10 8 Iowa Acts, House File 675, section 24, is amended by striking 10 9 the subsection and inserting in lieu thereof the following: 10 10 4. A continuing care retirement community, as defined in 10 11 section 523D.1, may provide limited personal care services and 10 12 emergency response services to its independent living tenants 10 13 if all of the following conditions are met: 10 14 a. The provision of such personal care services or 10 15 emergency response services does not result in inadequate 10 16 staff coverage to meet the service needs of all tenants of the 10 17 continuing care retirement community. 10 18 b. The staff providing the personal care or emergency 10 19 response services is trained or qualified to the extent 10 20 necessary to provide such services. 10 21 c. The continuing care retirement community documents the 10 22 date, time, and nature of the personal care or emergency 10 23 response services provided. 10 24 d. Emergency response services are only provided in 10 25 situations which constitute an urgent need for immediate 10 26 action or assistance due to unforeseen circumstances. 10 27 This subsection shall not be construed to prohibit an 10 28 independent living tenant of a continuing care retirement 10 29 community from contracting with a third party for personal 10 30 care or emergency response services. 10 31 Sec. 18. NEW SECTION. 237A.25 CONSUMER INFORMATION. 10 32 1. The department shall develop consumer information 10 33 material to assist parents in selecting a child care provider. 10 34 In developing the material, the department shall consult with 10 35 department of human services staff, department of education 11 1 staff, the state child care advisory council, the Iowa 11 2 empowerment board, and child care resource and referral 11 3 services. In addition, the department may consult with other 11 4 entities at the local, state, and national level. 11 5 2. The consumer information material developed by the 11 6 department for parents and other consumers of child care 11 7 services shall include but is not limited to all of the 11 8 following: 11 9 a. A pamphlet or other printed material containing 11 10 consumer-oriented information on locating a quality child care 11 11 provider. 11 12 b. Information explaining important considerations a 11 13 consumer should take into account in selecting a licensed or 11 14 registered child care provider. 11 15 c. Information explaining how a consumer can identify 11 16 quality services, including what questions to ask of providers 11 17 and what a consumer might expect or demand to know before 11 18 selecting a provider. 11 19 d. An explanation of the applicable laws and regulations 11 20 written in layperson's terms. 11 21 e. An explanation of what it means for a provider to be 11 22 licensed, registered, or unregistered. 11 23 f. An explanation of the information considered in 11 24 registry and record background checks. 11 25 g. Other information deemed relevant to consumers. 11 26 3. The department shall implement and publicize an 11 27 internet page or site that provides all of the following: 11 28 a. The written information developed pursuant to 11 29 subsections 1 and 2. 11 30 b. Regular informational updates, including when a child 11 31 care provider was last subject to a state quality review or 11 32 inspection and, based upon a final score or review, the 11 33 results indicating whether the provider passed or failed the 11 34 review or inspection. 11 35 c. Capability for a consumer to be able to access 12 1 information concerning child care providers, such as 12 2 informational updates, identification of provider location, 12 3 name, and capacity, and identification of providers 12 4 participating in the state child care assistance program and 12 5 those participating in the child care food program, by sorting 12 6 the information or employing other means that provide the 12 7 information in a manner that is useful to the consumer. 12 8 Information regarding provider location shall identify 12 9 providers located in the vicinity of an address selected by a 12 10 consumer and provide contact information without listing the 12 11 specific addresses of the providers. 12 12 d. Other information deemed appropriate by the department. 12 13 Sec. 19. Section 384.84, Code 2003, is amended by adding 12 14 the following new subsection: 12 15 NEW SUBSECTION. 9. Notwithstanding subsection 3, a lien 12 16 shall not be filed against the land if the premises are 12 17 located on leased land. If the premises are located on leased 12 18 land, a lien may be filed against the premises only. 12 19 Sec. 20. Section 422E.3A, subsection 2, paragraph a, if 12 20 enacted by 2003 Iowa Acts, Senate File 445, section 8, is 12 21 amended to read as follows: 12 22 a. A school district that is located in whole or in part 12 23 in a county that voted on and approved prior to April 1, 2003, 12 24 the local sales and services tax for school infrastructure 12 25 purposes and that has a sales tax capacity per student above 12 26 the guaranteed school infrastructure amount shall receive for 12 27 the remainder of the term of the tax an amount equal to its 12 28 pro rata share of the local sales and services tax receipts as 12 29 provided in section 422E.3, subsection 5, paragraph "d", 12 30 unless the school board passes a resolution by October 1, 12 31 2003, agreeing to receive a distribution pursuant to paragraph 12 32 "b", subparagraph (1). 12 33 Sec. 21. Section 422E.3A, subsection 2, paragraph b, 12 34 subparagraph (1), if enacted by 2003 Iowa Acts, Senate File 12 35 445, section 8, is amended to read as follows: 13 1 (1) A school district that is located in whole or in part 13 2 in a county that voted on and approved prior to April 1, 2003, 13 3 the local sales and services tax for school infrastructure 13 4 purposes and that has a sales tax capacity per student below 13 5 its guaranteed school infrastructure amount shall receive for 13 6 the remainder of the term of the tax an amount equal to its 13 7 pro rata share of the local sales and services tax receipts as 13 8 provided in section 422E.3, subsection 5, paragraph "d", plus 13 9 an amount equal to its supplemental school infrastructure 13 10 amount, unless the school district passes a resolution by 13 11 October 1, 2003, agreeing to receive only an amount equal to 13 12 its pro rata share as provided in section 422E.3, subsection 13 13 5, paragraph "d", in all subsequent years. 13 14 Sec. 22. Section 422E.3A, subsection 3, paragraph a, as 13 15 enacted by 2003 Iowa Acts, Senate File 445, is amended to read 13 16 as follows: 13 17 a. The director of revenue and finance by June 1 preceding 13 18 each fiscal year shall compute the guaranteed school 13 19 infrastructure amount for each school district, each school 13 20 district's sales tax capacity per student for each county,the13 21statewide tax revenues per student,and the supplemental 13 22 school infrastructure amount for the coming fiscal year. 13 23 Sec. 23. Section 422E.3A, subsection 3, paragraph b, 13 24 subparagraph (3), as enacted by 2003 Iowa Acts, Senate File 13 25 445, is amended by striking the subparagraph and inserting in 13 26 lieu thereof the following: 13 27 (3) "Statewide tax revenues per student" means five 13 28 hundred seventy-five dollars per student. The general 13 29 assembly shall review this amount annually to determine its 13 30 appropriateness. 13 31 Sec. 24. Section 422E.3A, subsection 5, as enacted by 2003 13 32 Iowa Acts, Senate File 445, is amended to read as follows: 13 33 5. In the case of a deficiency in the fund to pay the 13 34 supplemental school infrastructure amounts in full, the amount 13 35 available in the fund less the sales and services tax revenues 14 1 for school infrastructure purposes attributed to each school 14 2 district should be allocatedbased on the proportion of actual14 3enrollment in the district to the combined actual enrollment14 4in the counties where the sales and services tax for school14 5infrastructure purposes has been imposed and the school14 6districts in the counties qualify for the supplemental school14 7infrastructure amountfirst to increase the school district 14 8 with the lowest sales tax capacity per student to an amount 14 9 equal to the school district or school districts with the next 14 10 lowest sales tax capacity per student and then increase the 14 11 school districts to an amount equal to the school district or 14 12 school districts with the next lowest sales tax capacity per 14 13 student and continue on in this manner until money is no 14 14 longer available or all school districts reach their 14 15 guaranteed school infrastructure amount. 14 16 Sec. 25. Section 422E.3A, subsection 6, unnumbered 14 17 paragraph 1, as enacted by 2003 Iowa Acts, Senate File 445, is 14 18 amended to read as follows: 14 19 A school districtwith less than two hundred fifty actual14 20enrollment or less than one hundred actual enrollment in the14 21high schoolshall not expend the supplemental school 14 22 infrastructure amount received for new construction or for 14 23 payments for bonds issued for new construction against the 14 24 supplemental school infrastructure amount without prior 14 25 application to the department of education and receipt of a 14 26 certificate of need pursuant to this subsection. However, a 14 27 certificate of need is not required for the payment of 14 28 outstanding bonds issued for new construction pursuant to 14 29 section 296.1, before April 1, 2003. A certificate of need is 14 30 also not required for repairing schoolhouses or buildings, 14 31 equipment, technology, or transportation equipment for 14 32 transporting students as provided in section 298.3, or for 14 33 construction necessary for compliance with the federal 14 34 Americans With Disabilities Act pursuant to 42 U.S.C. } 12101- 14 35 12117. In determining whether a certificate of need shall be 15 1 issued or denied, the department shall consider all of the 15 2 following: 15 3 Sec. 26. Section 435.26A, subsection 5, as enacted by 2003 15 4 Iowa Acts, Senate File 134, section 7, and as amended by 2003 15 5 Iowa Acts, Senate File 458, section 128, if enacted, is 15 6 amended to read as follows: 15 7 5. An owner of a manufactured home who has surrendered a 15 8 certificate of title under this section and requires another 15 9 certificate of title for the manufactured home is required to 15 10 apply for a certificate of title undersection 321.42chapter 15 11 321. If supporting documents for the reissuance of a title 15 12 are not available or sufficient, the procedure for the 15 13 reissuance of a title specified in the rules of the department 15 14 of transportation shall be used. 15 15 Sec. 27. Section 459.315, Code 2003, as amended by 2003 15 16 Iowa Acts, House File 644, if enacted, is amended by adding 15 17 the following new subsection: 15 18 NEW SUBSECTION. 4A. This section shall not require a 15 19 person to be certified as a confinement site manure applicator 15 20 if the person applies manure which originates from a manure 15 21 storage structure which is part of a small animal feeding 15 22 operation. 15 23 Sec. 28. Section 508.31A, subsection 2, paragraph a, 15 24 subparagraph (4), as enacted by 2003 Iowa Acts, House File 15 25 647, section 7, is amended to read as follows: 15 26 (4) A person other than a natural person for the purpose 15 27 of providing collateral security for securitiesissued by such15 28person andregistered with the federal securities and exchange 15 29 commission. 15 30 Sec. 29. 2003 Iowa Acts, Senate File 401, section 5, 15 31 subsection 1, is amended to read as follows: 15 32 1. Notwithstanding any provision of law to the contrary, 15 33 the section of this Act creating section 453A.2, subsection 15 34 5A, is applicable to violations pending on the effective date 15 35 of this Act for which a penalty has not been assessed under 16 1 section 453A.22, subsection 2. Notwithstanding this 16 2 subsection, however, if a county health department, a city 16 3 health department, or a city assesses a penalty under section 16 4 453A.22, subsection 2, on or after April 11, 2003 but prior to 16 5 June 30, 2003, for a violation of section 453A.2, subsection 16 6 1, which was pending on April 11, 2003, the county health 16 7 department, city health department or city assessing the 16 8 penalty shall be deemed to have jurisdiction to assess the 16 9 penalty and the penalty assessed is deemed valid. 16 10 Sec. 30. 2003 Iowa Acts, Senate File 458, section 21, 16 11 unnumbered paragraph 3, if enacted, is amended to read as 16 12 follows: 16 13 Of the funds appropriated in this section, up to $10,000 is 16 14 transferred to theIowadepartment ofpublic healthhuman 16 15 services for allocation to community mental health centers to 16 16 provide counseling services to persons who are members of the 16 17 national guard and reservists activated but as yet not sent to 16 18 combat zones and to the persons' family members. The sessions 16 19 shall be provided on a first come, first served basis and 16 20 shall be limited to three visits per family. 16 21 Sec. 31. 2003 Iowa Acts, Senate File 458, section 149, if 16 22 enacted, is amended to read as follows: 16 23 SEC. 149. SUPPLEMENTAL PAYMENT ADJUSTMENTS FOR PHYSICIAN 16 24 SERVICES. To the extent that, pursuant to law enacted by the 16 25 Eightieth General Assembly, 2003 Session, supplemental payment 16 26 adjustments are implemented for physician services provided to 16 27 medical assistance program participants at publicly owned 16 28 acute care hospitals, the department of human services shall 16 29 not, directly or indirectly, recoup the supplemental payment 16 30 adjustments for any reason, unless an amount equivalent to the 16 31 amount of adjustment fundsthat wereis first transferred to 16 32 thedepartment by the stateuniversity of Iowa college of 16 33 medicineis transferredby the departmentto the qualifying16 34physicians. Any such amount transferred and identified as a 16 35 supplemental payment under this section shall then be refunded 17 1 to the department of human services, per the agreement 17 2 executed for this purpose between the department and the 17 3 university of Iowa. 17 4 Sec. 32. 2003 Iowa Acts, House File 667, section 27, 17 5 subsection 1, unnumbered paragraph 2, is amended to read as 17 6 follows: 17 7 For costs associated with the commitment and treatment of 17 8 sexually violent predators in the unit located at the state 17 9 mental health institute at Cherokee, including costs of legal 17 10 services and other associated costs, including salaries, 17 11 support, maintenance, and miscellaneous purposes and for not 17 12 more than the following full-time equivalent positions: 17 13 .................................................. $ 2,675,179 17 14 ............................................... FTEs46.0017 15 57.00 17 16 Sec. 33. EFFECTIVE DATE – RETROACTIVE APPLICABILITY. 17 17 1. The section of this division of this Act amending 17 18 section 231C.17, being deemed of immediate importance, takes 17 19 effect upon enactment. 17 20 2. The section of this division of this Act amending 2003 17 21 Iowa Acts, Senate File 401, being deemed of immediate 17 22 importance, takes effect upon enactment and is retroactively 17 23 applicable to April 11, 2003. 17 24 DIVISION IV 17 25 CORRECTIVE PROVISIONS 17 26 Sec. 34. Section 8A.505, as enacted by 2003 Iowa Acts, 17 27 House File 534, section 87, is amended by adding the following 17 28 new unnumbered paragraph: 17 29 NEW UNNUMBERED PARAGRAPH. There is appropriated annually 17 30 from the increase in indirect cost reimbursements over the 17 31 amount of indirect cost reimbursements received during the 17 32 fiscal year beginning July 1, 2002, to the office of grants 17 33 enterprise management of the department of management the sum 17 34 of up to one hundred twenty-five thousand dollars. The 17 35 director shall transfer the funds appropriated to the 18 1 department of management as provided in this paragraph and 18 2 shall make the funds resulting from the increase in 18 3 reimbursements available during the fiscal year to the 18 4 department of management on a monthly basis. If the amount of 18 5 the increase in indirect cost reimbursements is insufficient 18 6 to pay the maximum appropriation provided for in this 18 7 paragraph, the amount appropriated is equal to the amount of 18 8 such increase. 18 9 Sec. 35. Section 12C.4, Code 2003, as amended by 2003 Iowa 18 10 Acts, House File 289, section 2, is amended to read as 18 11 follows: 18 12 12C.4 LOCATION OF DEPOSITORIES. 18 13 Deposits by the treasurer of state shall be in depositories 18 14 located in this state; by a county officer or county public 18 15 hospital officer or merged area hospital officer, in 18 16 depositories located in the county or in an adjoining county 18 17 within this state; by a memorial hospital treasurer, in a 18 18 depository located within this state which shall be selected 18 19 by the memorial hospital treasurer and approved by the 18 20 memorial hospital commission; by a city treasurer or other 18 21 city financial officer, in depositories located in the county 18 22 in which the city is located or in an adjoining county, but if 18 23 there is no depository in the county in which the city is 18 24 located or in an adjoining county then in any other depository 18 25 located in this state which shall be selected as a depository 18 26 by the city council; by a school treasurer or by a school 18 27 secretary in a depository within this state which shall be 18 28 selected by the board of directors or the trustees of the 18 29 school district; by a township clerk in a depository located 18 30 within this state which shall be selected by the township 18 31 clerk and approved by the trustees of the township. However, 18 32 deposits may be made in depositories outside of Iowa for the 18 33 purpose of paying principal and interest on bonded 18 34 indebtedness of any municipality when the deposit is made not 18 35 more than ten days before the date the principal or interest 19 1 becomes due. Further, the treasurer of state may maintain an 19 2 account or accounts outside the state of Iowa for the purpose 19 3 of providing custodial services for the state and state 19 4 retirement fund accounts. Deposits made for the purpose of 19 5 completing an electronic financial transaction pursuant to 19 6 section14B.2038A.222 or 331.427 may be made in any 19 7 depository located in this state. 19 8 Sec. 36. Section 29A.28, subsection 3, as enacted by 2003 19 9 Iowa Acts, House File 674, section 3, is amended to read as 19 10 follows: 19 11 3. Upon returning from a leave of absence under this 19 12 section, an employee shall be entitled to return to the same 19 13 position and classification held by the employee at the time 19 14 of entryontointo state active duty, active state service, or 19 15 federal service or to the position and classification that the 19 16 employee would have been entitled to if the continuous civil 19 17 service of the employee had not been interrupted by state 19 18 active duty, active state service, or federal service. Under 19 19 this subsection, "position" includes the geographical location 19 20 of the position. 19 21 Sec. 37. Section 70A.39, subsection 1, paragraph b, as 19 22 enacted by 2003 Iowa Acts, House File 381, section 1, is 19 23 amended to read as follows: 19 24 b."Vascularized"Vascular organ" means a heart, lung, 19 25 liver, pancreas, kidney, intestine, or other organ that 19 26 requires the continuous circulation of blood to remain useful 19 27 for purposes of transplantation. 19 28 Sec. 38. Section 99B.7, subsection 1, paragraph 1, 19 29 subparagraph (1), Code 2003, as amended by 2003 Iowa Acts, 19 30 Senate File 453, section 104, if enacted, is amended to read 19 31 as follows: 19 32 (1) No other gambling is engaged in at the same location, 19 33 except that lottery tickets or shares issued by the Iowa 19 34 lotterydivision of the department of revenue and finance19 35 authority may be sold pursuant to chapter 99G. 20 1 Sec. 39. Section 507A.4, subsection 9, paragraph e, as 20 2 enacted by 2003 Iowa Acts, House File 647, section 4, is 20 3 amended to read as follows: 20 4 e. When not otherwise provided, a foreign or domestic 20 5 multipleemployeeemployer welfare arrangement doing business 20 6 in this state shall pay to the commissioner of insurance the 20 7 fees as required in section 511.24. 20 8 Sec. 40. Section 556.11, subsection 5, Code 2003, as 20 9 amended by 2003 Iowa Acts, Senate File 180, section 2, is 20 10 amended to read as follows: 20 11 5. If the holder of property presumed abandoned under this 20 12 chapter knows the whereabouts of the owner and if the owner's 20 13 claim has not been barred by the statute of limitations, the 20 14 holder shall, before filing the annual report, communicate 20 15 with the owner and take necessary steps to prevent abandonment 20 16 from being presumed. The holder shall exercise due diligence 20 17 to ascertain the whereabouts of the owner. A holder is not 20 18 required to make a due diligence mailing to owners whose 20 19 property has an aggregate value of less than fifty dollars. 20 20 The treasurer of state may charge a holder that fails to 20 21 timely exercise due diligence, as required in this subsection, 20 22 five dollars for each name and address account reported if 20 23 thirty-five percentofor more of the accounts are claimed 20 24 within the twenty-four months immediately following the filing 20 25 of the holder report. 20 26 Sec. 41. 2003 Iowa Acts, Senate File 438, section 3, is 20 27 repealed. 20 28 Sec. 42. 2003 Iowa Acts, Senate File 453, section 11, if 20 29 enacted, is amended to read as follows: 20 30 SEC. 11. Sections403.23,405A.1, 405A.2, 405A.3, 405A.4, 20 31 405A.5, 405A.6, 405A.7, 405A.8, 405A.9, 405A.10, 422.65, 20 32 427A.12, and 427B.19B, Code 2003, are repealed. 20 33 Sec. 43. 2003 Iowa Acts, Senate File 458, section 159, if 20 34 enacted, is amended to read as follows: 20 35 SEC. 159. EFFECTIVE DATES. The following provisions of 21 1 this division of this Act, being deemed of immediate 21 2 importance, take effect upon enactment: 21 3 1. The amendments to sections 8.23, 8.31, and 8.57 which 21 4 are first applicable to appropriations made for the fiscal 21 5 year beginning July 1, 2003. 21 6 2. The amendment to section 12E.12. 21 7 3. The amendments to sections 15E.42, 15E.43, 15E.45, and 21 8 15E.51, which apply retroactively to January 1, 2002, for tax 21 9 years beginning on or after that date. 21 10 4. The amendment to section 15E.193B. 21 11 5. The amendment to section 435.26A. 21 12 6. The amendment to section 453A.2, which shall only take 21 13 effect if 2003 Iowa Acts, Senate File 401, is enacted by the 21 14 Eightieth General Assembly, 2003 Regular Session. 21 15 7. The amendments to sections 453C.1 and 453C.2 and the 21 16 related severability provision. 21 17 8. The amendments to sections 518.18 and 518A.35. 21 18 9. The section directing the department of corrections to 21 19 develop a plan for selling certain land. 21 20 10. The section relating to the sales and use tax refund. 21 21 11. The section relating to the school district 21 22 reimbursement claim. 21 23 The sections of this division of this Act amending section 21 24 80B.5 and enacting section 80B.5A are applicable to the 21 25 appointment of the director of the Iowa law enforcement 21 26 academy for the term beginning May 1, 2004. 21 27Section 29C.8, subsection 3, paragraph "f", as enacted in21 28this division of this Act, and the amendment to section21 2929C.20, subsection 1, as enacted in this division of this Act,21 30take effect July 1, 2004.21 31 Sec. 44. 2003 Iowa Acts, House File 171, section 112, the 21 32 bill section amending clause, is amended to read as follows: 21 33 Section 656.2, subsection 2, paragraph a, unnumbered 21 34 paragraph113, Code 2003, is amended to read as follows: 21 35 Sec. 45. 2003 Iowa Acts, House File 662, section 5, 22 1 subsection 8, paragraphs a and b, if enacted, are amended to 22 2 read as follows: 22 3 a. Of the amount appropriated in thissectionsubsection, 22 4 $347,371 shall be allocated to the public broadcasting 22 5 division for purposes of providing support for functions 22 6 related to the Iowa communications network, including but not 22 7 limited to the following functions: development of distance 22 8 learning applications; development of a central information 22 9 source on the internet relating to educational uses of the 22 10 network; second-line technical support for network sites; 22 11 testing and initializing sites onto the network; and 22 12 coordinating the work of the education telecommunications 22 13 council. 22 14 b. Of the amount appropriated in thissectionsubsection, 22 15 $1,272,285 shall be allocated to the regional 22 16 telecommunications councils established in section 8D.5. The 22 17 regional telecommunications councils shall use the funds to 22 18 provide technical assistance for network classrooms, planning 22 19 and troubleshooting for local area networks, scheduling of 22 20 video sites, and other related support activities. 22 21 Sec. 46. 2003 Iowa Acts, House File 662, section 6, 22 22 unnumbered paragraph 2, if enacted, is amended to read as 22 23 follows: 22 24 The funds allocated in thissubsectionsection shall be 22 25 distributed as follows: 22 26 Sec. 47. EFFECTIVE AND APPLICABILITY DATES. 22 27 1. The section of this division of this Act amending 22 28 section 29A.28, subsection 3, being deemed of immediate 22 29 importance, takes effect upon enactment and applies 22 30 retroactively to January 1, 2003. 22 31 2. The section of this division of this Act amending 2003 22 32 Iowa Acts, Senate File 458, section 159, being deemed of 22 33 immediate importance, takes effect upon enactment. 22 34 3. 2003 Iowa Acts, Senate File 458, section 140, relating 22 35 to nonreversion of funds appropriated in 1996 Iowa Acts, 23 1 chapter 1218, and 1997 Iowa Acts, chapter 215, if enacted, 23 2 being deemed of immediate importance, takes effect upon 23 3 enactment of this Act. 23 4 DIVISION V 23 5 CRIMINAL OFFENDERS AND INMATES 23 6 Sec. 48. Section 321J.2, subsection 2, paragraph a, 23 7 subparagraph (1), Code 2003, is amended to read as follows: 23 8 (1) Imprisonment in the county jail for not less than 23 9 forty-eight hours, to be served as ordered by the court, less 23 10 credit for any time the person was confined in a jail or 23 11 detention facility following arrest or for any time the person 23 12 spent in a court-ordered operating-while-intoxicated program 23 13 that provides law enforcement security. However, the court, 23 14 in ordering service of the sentence and in its discretion, may 23 15 accommodate the defendant's work schedule. 23 16 Sec. 49. NEW SECTION. 811.2A PRETRIAL RELEASE. 23 17 A person, who has been released under a plan of pretrial 23 18 release or on the person's own recognizance and who is 23 19 subsequently arrested for a new criminal offense while under 23 20 the plan of pretrial release or released on the person's own 23 21 recognizance, shall not be eligible for another release 23 22 pursuant to pretrial release guidelines or released on the 23 23 person's own recognizance, if all of the following apply: 23 24 1. The arrest for the new criminal offense is based on a 23 25 set of facts or an event that is different than involved in 23 26 the earlier arrest. 23 27 2. The new criminal offense is classified as greater than 23 28 a serious misdemeanor. 23 29 However, a person may be admitted to bail if eligible 23 30 pursuant to section 811.1. 23 31 Sec. 50. Section 901.4, Code 2003, is amended to read as 23 32 follows: 23 33 901.4 PRESENTENCE INVESTIGATION REPORT CONFIDENTIAL – 23 34 DISTRIBUTION. 23 35 The presentence investigation report is confidential and 24 1 the court shall provide safeguards to ensure its 24 2 confidentiality, including but not limited to sealing the 24 3 report, which may be opened only by further court order. At 24 4 least three days prior to the date set for sentencing, the 24 5 court shall serve all of the presentence investigation report 24 6 upon the defendant's attorney and the attorney for the state, 24 7 and the report shall remain confidential except upon court 24 8 order. However, the court may conceal the identity of the 24 9 person who provided confidential information. The report of a 24 10 medical examination or psychological or psychiatric evaluation 24 11 shall be made available to the attorney for the state and to 24 12 the defendant upon request. The reports are part of the 24 13 record but shall be sealed and opened only on order of the 24 14 court. If the defendant is committed to the custody of the 24 15 Iowa department of corrections and is not a class "A" felon, a 24 16 copy of the presentence investigation report shall be 24 17 forwarded to the director with the order of commitment by the 24 18 clerk of the district court and to the board of parole at the 24 19 time of commitment.ThePursuant to section 904.602, the 24 20 presentence investigation report may also be released by the 24 21 department of corrections or a judicial district department of 24 22 correctional servicespursuant to section 904.602to another 24 23 jurisdiction for the purpose of providing interstate probation 24 24 and parole compact services or evaluations, or to a substance 24 25 abuse or mental health services provider when referring a 24 26 defendant for services. The defendant or the defendant's 24 27 attorney may file with the presentence investigation report, a 24 28 denial or refutation of the allegations, or both, contained in 24 29 the report. The denial or refutation shall be included in the 24 30 report. If the person is sentenced for an offense which 24 31 requires registration under chapter 692A, the court shall 24 32 release the report to the department which is responsible 24 33 under section 692A.13A for performing the assessment of risk. 24 34 Sec. 51. Section 901B.1, subsection 1, paragraph c, 24 35 subparagraph (5), Code 2003, is amended to read as follows: 25 1 (5) A substance abuse treatment facility as established 25 2 and operated by the Iowa department of public health or the 25 3 department of corrections. 25 4 Sec. 52. Section 903A.2, subsection 1, paragraph a, Code 25 5 2003, is amended to read as follows: 25 6 a. Category "A" sentences are those sentences which are 25 7 not subject to a maximum accumulation of earned time of 25 8 fifteen percent of the total sentence of confinement under 25 9 section 902.12. To the extent provided in subsection 5, 25 10 category "A" sentences also include life sentences imposed 25 11 under section 902.1. An inmate of an institution under the 25 12 control of the department of corrections who is serving a 25 13 category "A" sentence is eligible for a reduction of sentence 25 14 equal to one and two-tenths days for each day the inmate 25 15 demonstrates good conduct and satisfactorily participates in 25 16 any program or placement status identified by the director to 25 17 earn the reduction. The programs include but are not limited 25 18 to the following: 25 19 (1) Employment in the institution. 25 20 (2) Iowa state industries. 25 21 (3) An employment program established by the director. 25 22 (4) A treatment program established by the director. 25 23 (5) An inmate educational program approved by the 25 24 director. 25 25 An inmate serving a category "A" sentence is eligible for 25 26 an additional reduction of sentence of up to three hundred 25 27 sixty-five days of the full term of the sentence of the inmate 25 28 for exemplary acts. In accordance with section 903A.4, the 25 29 director shall by policy identify what constitutes an 25 30 exemplary act that may warrant an additional reduction of 25 31 sentence. 25 32 Sec. 53. Section 903A.3, subsection 2, Code 2003, is 25 33 amended to read as follows: 25 34 2. The orders of the administrative law judge are subject 25 35 to appeal to the superintendent or warden of the institution, 26 1 or the superintendent's or warden's designee, who may either 26 2 affirm, modify, remand for correction of procedural errors, or 26 3 reverse an order. However, sanctions shall not be increased 26 4 on appeal.A decision of the superintendent, warden, or26 5designee is subject to review by the director of the Iowa26 6department of corrections who may either affirm, modify,26 7remand for correction of procedural errors, or reverse the26 8decision. However, sanctions shall not be increased on26 9review.26 10 Sec. 54. NEW SECTION. 904.117 INTERSTATE COMPACT FUND. 26 11 An interstate compact fund is established under the control 26 12 of the department. All interstate compact fees collected by 26 13 the department pursuant to section 907B.5 shall be deposited 26 14 into the fund and the moneys shall be used by the department 26 15 to offset the costs of complying with the interstate compact 26 16 for adult offender supervision in chapter 907B. 26 17 Notwithstanding section 8.33, moneys remaining in the fund at 26 18 the end of a fiscal year shall not revert to the general fund 26 19 of the state. Notwithstanding section 12C.7, interest and 26 20 earnings deposited in the fund shall be credited to the fund. 26 21 Sec. 55. Section 904.503, subsection 2, Code 2003, is 26 22 amended to read as follows: 26 23 2. When the director has cause to believe that an inmate 26 24 in a state correctional institution is mentally ill, the Iowa 26 25 department of corrections may cause the inmate to be 26 26 transferred to the Iowa medical and classification center, or 26 27 to another appropriate facility within the department, for 26 28 examination, diagnosis, or treatment. The inmate shall be 26 29 confined at thatinstitutioncenter or facility or a state 26 30 hospital for persons with mental illness until the expiration 26 31 of the inmate's sentence or until the inmate is pronounced in 26 32 good mental health. If the inmate is pronounced in good 26 33 mental health before the expiration of the inmate's sentence, 26 34 the inmate shall be returned to the state correctional 26 35 institution until the expiration of the inmate's sentence. 27 1 Sec. 56. Section 904.508, subsection 2, Code 2003, is 27 2 amended to read as follows: 27 3 2.ThePursuant to section 904.702, the director shall 27 4 establish and maintain an inmate savings fund in an interest- 27 5 bearing account for the deposit of all or part of an inmate's 27 6 allowances, as provided in section 904.702and amounts, except 27 7 amounts directed to be deposited in the inmate telephone fund 27 8 established in section 904.508A, sent to the inmate from a 27 9 source other than the department. All or part of an inmate's 27 10 allowances and amounts, except amounts directed to be 27 11 deposited in the inmate telephone fund established in section 27 12 904.508A, from a source other than the department shall be 27 13 deposited into the savings fund, until the inmate's deposit is 27 14 equal tothe amount due the inmate upon discharge, parole, or27 15placement on work release,one hundred dollars as provided in 27 16 section 906.9. If an inmate's deposits are equalthis amount27 17 to or in excess of one hundred dollars, the inmate may 27 18 voluntarily withdraw from the savings fund. The director 27 19 shall notify the inmate of this right to withdraw and shall 27 20 provide the inmate with a written request form to facilitate 27 21 the withdrawal. If the inmate withdraws and the inmate's 27 22 deposits exceed the amount due as provided in section 906.9, 27 23 the director shall disburse the excess amount as provided for 27 24 allowances under section 904.702, except the director shall 27 25 not deposit the excess amount in the inmate savings fund. If 27 26 the inmate chooses to continue to participate in the savings 27 27 fund, the inmate's deposits shall be returned to the inmate 27 28 upon discharge, parole, or placement on work release. 27 29 Otherwise, the inmate's deposits shall be disposed of as 27 30 provided in subsection 3. An inmate's deposits into the 27 31 savings fund may be used to provide the money due the inmate 27 32 upon discharge, parole, or placement on work release, as 27 33 required under section 906.9. Interest earned from the 27 34 savings fund shall be placed in a separate account, and may be 27 35 used for purchases approved by the director to directly and 28 1 collectively benefit inmates. 28 2 Sec. 57. Section 904.508A, Code 2003, is amended to read 28 3 as follows: 28 4 904.508A INMATE TELEPHONEREBATEFUND. 28 5 The department is authorized to establish and maintain an 28 6 inmate telephonerebatefundin each institutionfor the 28 7 deposit of moneys received for inmate telephonerebatescalls. 28 8 All funds deposited in this fund shall be used for the benefit 28 9 of inmates. The director shall adopt rules providing for the 28 10 disbursement of moneys from the fund. 28 11 Sec. 58. Section 904.513, subsection 1, paragraph b, 28 12 subparagraph (4), Code 2003, is amended to read as follows: 28 13 (4) Assignment may also be made on the basis of the 28 14 offender's treatment program performance, as a disciplinary 28 15 measure, for medical needs, and for space availability at 28 16 community residential facilities. If there is insufficient 28 17 space at a community residential facility, the court may order 28 18 an offender to be released to the supervision of the judicial 28 19 district department of correctional services,orheld in jail, 28 20 or committed to the custody of the director of the department 28 21 of corrections for assignment to an appropriate correctional 28 22 facility until there is sufficient space at a community 28 23 residential facility. 28 24 Sec. 59. Section 904.702, unnumbered paragraph 1, Code 28 25 2003, is amended to read as follows: 28 26 If allowances are paid pursuant to section 904.701, the 28 27 director shall establish an inmate account, for deposit of 28 28 those allowances and for deposit of moneys sent to the inmate 28 29 from a source other than the department of corrections. The 28 30 director may deduct an amount, not to exceed ten percent of 28 31 the amount of the allowance, unless the inmate requests a 28 32 larger amount, to be deposited into the inmate savings fund as 28 33 required under section 904.508, subsection 2. In addition to 28 34 deducting a portion of the allowance, the director may also 28 35 deduct from an inmate account any amount, except amounts 29 1 directed to be deposited in the inmate telephone fund 29 2 established in section 904.508A, sent to the inmate from a 29 3 source other than the department of corrections for deposit in 29 4 the inmate savings fund as required under section 904.508, 29 5 subsection 2, until the amount in the fund equals the amount 29 6 due the inmate upon discharge, parole, or placement on work 29 7 release. The director shall deduct from the inmate account an 29 8 amount established by the inmate's restitution plan of 29 9 payment. The director shall also deduct from any remaining 29 10 account balance an amount sufficient to pay all or part of any 29 11 judgment against the inmate, including but not limited to 29 12 judgments for taxes and child support, and court costs and 29 13 fees assessed either as a result of the inmate's confinement 29 14 or amounts required to be paid under section 610A.1. Written 29 15 notice of the amount of the deduction shall be given to the 29 16 inmate, who shall have five days after receipt of the notice 29 17 to submit in writing any and all objections to the deduction 29 18 to the director, who shall consider the objections prior to 29 19 transmitting the deducted amount to the clerk of the district 29 20 court. The director need give only one notice for each action 29 21 or appeal under section 610A.1 for which periodic deductions 29 22 are to be made. The director shall next deduct from any 29 23 remaining account balance an amount sufficient to pay all or 29 24 part of any costs assessed against the inmate for misconduct 29 25 or damage to the property of others. The director may deduct 29 26 from the inmate's account an amount sufficient to pay for the 29 27 inmate's share of the costs of health services requested by 29 28 the inmate and for the treatment of injuries inflicted by the 29 29 inmate on the inmate or others. The director may deduct and 29 30 disburse an amount sufficient for industries' programs to 29 31 qualify under the eligibility requirements established in the 29 32 Justice Assistance Act of 1984, Pub. L. No. 98-473, including 29 33 an amount to pay all or part of the cost of the inmate's 29 34 incarceration. The director may pay all or any part of 29 35 remaining allowances paid pursuant to section 904.701 directly 30 1 to a dependent of the inmate, or may deposit the allowance to 30 2 the account of the inmate, or may deposit a portion and allow 30 3 the inmate a portion for the inmate's personal use. 30 4 Sec. 60. Section 907.4, Code 2003, is amended to read as 30 5 follows: 30 6 907.4 DEFERRED JUDGMENT DOCKET. 30 7 A deferment of judgment under section 907.3 shall be 30 8 reported promptly by the clerk of the district court, or the 30 9 clerk's designee, to the state court administrator for entry 30 10 in the deferred judgment docket. The docket shall contain a 30 11 permanent record of the deferred judgment including the name 30 12 and date of birth of the defendant, the district court docket 30 13 number, the nature of the offense, and the date of the 30 14 deferred judgment. Before granting deferred judgment in any 30 15 case, the court shall request of the state court administrator 30 16 a search of the deferred judgment docket and shall consider 30 17 any prior record of a deferred judgment against the defendant. 30 18 The permanent record provided for in this section is a 30 19 confidential record exempted from public access under section 30 20 22.7 and shall be available only to justices of the supreme 30 21 court, judges of the court of appeals, district judges, 30 22 district associate judges, judicial magistrates, clerks of the 30 23 district court, judicial district departments of correctional 30 24 services, and county attorneys requesting information pursuant 30 25 to this section, or the designee of a justice, judge, 30 26 magistrate, clerk, judicial district department of 30 27 correctional services, or county attorney. 30 28 Sec. 61. Section 907.9, subsections 1, 2, and 4, Code 30 29 2003, are amended to read as follows: 30 30 1. At any time that the court determines that the purposes 30 31 of probation have been fulfilled and the fees imposed under 30 32 section 905.14 have been paidto or waived by the judicial30 33district department of correctional servicesor on condition 30 34 that unpaid supervision fees be paid, the court may order the 30 35 discharge of a person from probation. 31 1 2. At any time that a probation officer determines that 31 2 the purposes of probation have been fulfilled and the fees 31 3 imposed under section 905.14 have been paidto or waived by31 4the judicial district department of correctional servicesor 31 5 on condition that unpaid supervision fees be paid, the officer 31 6 may order the discharge of a person from probation after 31 7 approval of the district director and notification of the 31 8 sentencing court and the county attorney who prosecuted the 31 9 case. 31 10 4. At the expiration of the period of probation and if the 31 11 fees imposed under section 905.14 have been paidto or waived31 12by the judicial district department of correctional services31 13 or on condition that unpaid supervision fees be paid, the 31 14 court shall order the discharge of the person from probation, 31 15 and the court shall forward to the governor a recommendation 31 16 for or against restoration of citizenship rights to that 31 17 person. A person who has been discharged from probation shall 31 18 no longer be held to answer for the person's offense. Upon 31 19 discharge from probation, if judgment has been deferred under 31 20 section 907.3, the court's criminal record with reference to 31 21 the deferred judgment shall be expunged. The record 31 22 maintained by the state court administrator as required by 31 23 section 907.4 shall not be expunged. The court's record shall 31 24 not be expunged in any other circumstances. 31 25 Sec. 62. NEW SECTION. 907B.4 INTERSTATE COMPACT FEE. 31 26 The department of corrections may assess a fee, not to 31 27 exceed one hundred dollars, for an application to transfer out 31 28 of the state under the interstate compact for adult offender 31 29 supervision. The fee may be waived by the department. The 31 30 moneys collected pursuant to this section shall be deposited 31 31 into the interstate compact fund established in section 31 32 904.117 and shall be used to offset the costs of complying 31 33 with the interstate compact for adult offender supervision. 31 34 Sec. 63. Section 910.3B, Code 2003, is amended to read as 31 35 follows: 32 1 910.3B RESTITUTION FOR DEATH OF VICTIM. 32 2 1. In all criminal cases in which the offender is 32 3 convicted of a felony in which the act or acts committed by 32 4 the offender caused the death of another person, in addition 32 5 to the amount determined to be payable and ordered to be paid 32 6 to a victim for pecuniary damages, as defined under section 32 7 910.1, and determined under section 910.3, the court shall 32 8 also order the offender to pay at least one hundred fifty 32 9 thousand dollars in restitution to the victim's estate if the 32 10 victim died testate. If the victim died intestate the court 32 11 shall order the offender to pay the restitution to the 32 12 victim's heirs at law as determined pursuant to section 32 13 633.210. The obligation to pay the additional amount shall 32 14 not be dischargeable in any proceeding under the federal 32 15 Bankruptcy Act. Payment of the additional amount shall have 32 16 the same priority as payment of a victim's pecuniary damages 32 17 under section 910.2, in the offender's plan for restitution. 32 18 2. An award under this section does not preclude or 32 19 supersede the right of a victim's estate or heirs at law to 32 20 bring a civil action against the offender for damages arising 32 21 out of the same facts or event. However, no evidence relating 32 22 to the entry of the judgment against the offender pursuant to 32 23 this section or the amount of the award ordered pursuant to 32 24 this section shall be permitted to be introduced in any civil 32 25 action for damages arising out of the same facts or event. 32 26 3. An offender who is ordered to pay a victim's estate or 32 27 heirs at law under this section is precluded from denying the 32 28 elements of the felony offense which resulted in the order for 32 29 payment in any subsequent civil action for damages arising out 32 30 of the same facts or event. 32 31 Sec. 64. Section 915.100, subsection 2, paragraph c, Code 32 32 2003, is amended to read as follows: 32 33 c. In cases where the act committed by an offender causes 32 34 the death of another person, in addition to the amount ordered 32 35 for payment of the victim's pecuniary damages, the court shall 33 1 also order the offender to pay at least one hundred fifty 33 2 thousand dollars in restitution to the victim's estate or 33 3 heirs at law, pursuant to the provisions of section 910.3B. 33 4 DIVISION VI 33 5 ECONOMIC DEVELOPMENT APPROPRIATIONS 33 6 Sec. 65. MARKETING APPROPRIATION. 33 7 1. There is appropriated from the grow Iowa values fund 33 8 created in section 15G.107, if enacted by 2003 Iowa Acts, 33 9 House File 692 or another Act, to the department of economic 33 10 development, for the fiscal period beginning July 1, 2003, and 33 11 ending June 30, 2006, the following amounts, or so much 33 12 thereof as is necessary, to be used for the purpose 33 13 designated: 33 14 For implementing and administering the marketing strategy 33 15 approved under section 15G.108, if enacted by 2003 Iowa Acts, 33 16 House File 692 or another Act: 33 17 FY 2003-2004..................................... $ 2,500,000 33 18 FY 2004-2005..................................... $ 7,500,000 33 19 FY 2005-2006..................................... $ 10,000,000 33 20 2. Notwithstanding section 8.33, moneys that remain 33 21 unexpended at the end of a fiscal year shall not revert to any 33 22 fund but shall remain available for expenditure for the 33 23 designated purposes during the succeeding fiscal year. 33 24 Sec. 66. DEPARTMENT OF ECONOMIC DEVELOPMENT APPROPRIATION. 33 25 1. There is appropriated from the grow Iowa values fund 33 26 created in section 15G.107, if enacted by 2003 Iowa Acts, 33 27 House File 692 or another Act, to the department of economic 33 28 development for the fiscal period beginning July 1, 2003, and 33 29 ending June 30, 2007, the following amounts, or so much 33 30 thereof as is necessary, to be used for the purpose 33 31 designated: 33 32 For programs administered by the department of economic 33 33 development: 33 34 FY 2003-2004...................................... $ 45,000,000 33 35 FY 2004-2005...................................... $ 41,000,000 34 1 FY 2005-2006...................................... $ 44,000,000 34 2 FY 2006-2007...................................... $ 48,000,000 34 3 2. Notwithstanding section 8.33, moneys that remain 34 4 unexpended at the end of a fiscal year shall not revert to any 34 5 fund but shall remain available for expenditure for the 34 6 designated purposes during the succeeding fiscal year. 34 7 3. Each year that moneys are appropriated under this 34 8 section, the grow Iowa values board shall allocate a 34 9 percentage of the moneys for each of the following types of 34 10 activities: 34 11 a. Business start-ups. 34 12 b. Business expansion. 34 13 c. Business modernization. 34 14 d. Business attraction. 34 15 e. Business retention. 34 16 f. Marketing. 34 17 4. An applicant for moneys appropriated under this section 34 18 shall be required by the department to include in the 34 19 application a statement regarding the intended return on 34 20 investment. A recipient of moneys appropriated under this 34 21 section shall annually submit a statement to the department 34 22 regarding the progress achieved on the intended return on 34 23 investment stated in the application. The department, in 34 24 cooperation with the department of revenue and finance, shall 34 25 develop a method of identifying and tracking each new job 34 26 created through financial assistance from moneys appropriated 34 27 under this section. 34 28 5. The department may use moneys appropriated under this 34 29 section to procure technical assistance from either the public 34 30 or private sector, for information technology purposes, and 34 31 for rail, air, or river port transportation-related purposes. 34 32 The use of moneys appropriated for rail, air, or river port 34 33 transportation-related purposes must be directly related to an 34 34 economic development project and the moneys must be used to 34 35 leverage other financial assistance moneys. 35 1 6. Of the moneys appropriated under this section, the 35 2 department may use one-half of one percent for administrative 35 3 purposes. 35 4 7. The grow Iowa values board is required to approve or 35 5 deny applications for financial assistance from moneys 35 6 appropriated under this section. 35 7 Sec. 67. UNIVERSITY AND COLLEGE FINANCIAL ASSISTANCE 35 8 APPROPRIATION. 35 9 1. There is appropriated from the grow Iowa values fund 35 10 created in section 15G.107, if enacted by 2003 Iowa Acts, 35 11 House File 692 or another Act, to the grow Iowa values board 35 12 for the fiscal period beginning July 1, 2003, and ending June 35 13 30, 2007, the following amounts, or so much thereof as is 35 14 necessary, to be used for the purposes designated: 35 15 For financial assistance for institutions of higher 35 16 learning under the control of the state board of regents and 35 17 for accredited private institutions as defined in section 35 18 261.9 for multiuse, goods manufacturing processes approved by 35 19 the food and drug administration of the United States 35 20 department of health and human services, protein purification 35 21 facilities for plant, animal, and chemical manufactured 35 22 proteins; accelerating new business creation; innovation 35 23 accelerators and business parks; incubator facilities; 35 24 upgrading food and drug administration drug approval 35 25 laboratories in Iowa City to a larger multiclient, goods 35 26 manufacturing processes facility; crop and animal livestock 35 27 facilities for the growing of transgenic crops and livestock, 35 28 protein extraction facilities, containment facilities, and 35 29 bioanalytical, biochemical, chemical, and microbiological 35 30 support facilities; a national center for food safety and 35 31 security; and advanced laboratory space: 35 32 FY 2003-2004...................................... $ 6,000,000 35 33 FY 2004-2005...................................... $ 7,000,000 35 34 FY 2005-2006...................................... $ 7,000,000 35 35 FY 2006-2007...................................... $ 7,000,000 36 1 2. Notwithstanding section 8.33, moneys that remain 36 2 unexpended at the end of a fiscal year shall not revert to any 36 3 fund but shall remain available for expenditure for the 36 4 designated purposes during the succeeding fiscal year. 36 5 3. In the distribution of moneys appropriated pursuant to 36 6 this section, the grow Iowa values board shall examine the 36 7 potential for using moneys appropriated pursuant to this 36 8 section to leverage other moneys for financial assistance to 36 9 accredited private institutions. 36 10 4. In awarding moneys appropriated pursuant to this 36 11 section, the grow Iowa values board shall consider whether the 36 12 purchase of suitable existing infrastructure is more cost- 36 13 efficient than building new infrastructure. 36 14 5. An institution of higher learning under the control of 36 15 the state board of regents may apply to use financial 36 16 assistance moneys under this section for purposes of a public 36 17 and private joint venture to acquire infrastructure assets or 36 18 research facilities or to leverage moneys in a manner 36 19 consistent with meeting the goals and performance measures 36 20 provided in section 15G.106, if enacted by 2003 Iowa Acts, 36 21 House File 692 or another Act. 36 22 6. Of the moneys appropriated under this section and 36 23 provided applications are submitted meeting the requirements 36 24 of the grow Iowa values board, not less than $10,000,000 in 36 25 financial assistance shall be awarded to the university of 36 26 Iowa, not less than $10,000,000 in financial assistance shall 36 27 be awarded to Iowa state university of science and technology, 36 28 and not less than $5,000,000 in financial assistance shall be 36 29 awarded to the university of northern Iowa. 36 30 Sec. 68. REHABILITATION PROJECT TAX CREDITS APPROPRIATION. 36 31 1. There is appropriated from the grow Iowa values fund 36 32 created in section 15G.107, if enacted by 2003 Iowa Acts, 36 33 House File 692 or another Act, to the general fund of the 36 34 state, for the fiscal period beginning July 1, 2005, and 36 35 ending June 30, 2007, the following amounts, or so much 37 1 thereof as is necessary, to be used for the purpose 37 2 designated: 37 3 For payment of tax credits approved pursuant to section 37 4 404A.4 for projects located in certified cultural and 37 5 entertainment districts: 37 6 FY 2005-2006...................................... $ 500,000 37 7 FY 2006-2007...................................... $ 500,000 37 8 2. Notwithstanding section 8.33, moneys that remain 37 9 unexpended at the end of a fiscal year shall not revert to any 37 10 fund but shall remain available for expenditure for the 37 11 designated purposes during the succeeding fiscal year. 37 12 Sec. 69. LOAN AND CREDIT GUARANTEE FUND APPROPRIATION. 37 13 1. There is appropriated from the grow Iowa values fund 37 14 created in section 15G.107, if enacted by 2003 Iowa Acts, 37 15 House File 692 or another Act, to the department of economic 37 16 development for the fiscal period beginning July 1, 2003, and 37 17 ending June 30, 2007, the following amounts, or so much 37 18 thereof as is necessary, to be used for the purpose 37 19 designated: 37 20 For deposit in the loan and credit guarantee fund created 37 21 in section 15E.227: 37 22 FY 2003-2004...................................... $ 2,500,000 37 23 FY 2004-2005...................................... $ 5,000,000 37 24 FY 2005-2006...................................... $ 7,500,000 37 25 FY 2006-2007...................................... $ 7,500,000 37 26 2. Notwithstanding section 8.33, moneys that remain 37 27 unexpended at the end of a fiscal year shall not revert to any 37 28 fund but shall remain available for expenditure for the 37 29 designated purpose during the succeeding fiscal year. 37 30 Sec. 70. ENDOW IOWA TAX CREDITS. 37 31 1. There is appropriated from the grow Iowa values fund 37 32 created in section 15G.107, if enacted by 2003 Iowa Acts, 37 33 House File 692 or another Act, to the general fund of the 37 34 state, for the fiscal period beginning July 1, 2004, and 37 35 ending June 30, 2007, the following amounts, or so much 38 1 thereof as is necessary, to be used for the purpose 38 2 designated: 38 3 For payment of endow Iowa tax credits authorized pursuant 38 4 to section 15E.305: 38 5 FY 2004-2005...................................... $ 250,000 38 6 FY 2005-2006...................................... $ 250,000 38 7 FY 2006-2007...................................... $ 500,000 38 8 2. Notwithstanding section 8.33, moneys that remain 38 9 unexpended at the end of a fiscal year shall not revert to any 38 10 fund but shall remain available for expenditure for the 38 11 designated purposes during the succeeding fiscal year. 38 12 Sec. 71. ENDOW IOWA GRANTS APPROPRIATION. 38 13 1. There is appropriated from the grow Iowa values fund 38 14 created in section 15G.107, if enacted by 2003 Iowa Acts, 38 15 House File 692 or another Act, to the department of economic 38 16 development for the fiscal period beginning July 1, 2004, and 38 17 ending June 30, 2007, the following amounts, or so much 38 18 thereof as is necessary, to be used for the purpose 38 19 designated: 38 20 For endow Iowa grants to lead philanthropic entities 38 21 pursuant to section 15E.304: 38 22 FY 2004-2005...................................... $ 250,000 38 23 FY 2005-2006...................................... $ 250,000 38 24 FY 2006-2007...................................... $ 500,000 38 25 2. Notwithstanding section 8.33, moneys that remain 38 26 unexpended at the end of a fiscal year shall not revert to any 38 27 fund but shall remain available for expenditure for the 38 28 designated purposes during the succeeding fiscal year. 38 29 Sec. 72. STATE PARKS AND DESTINATION PARKS APPROPRIATION. 38 30 1. There is appropriated from the grow Iowa values fund 38 31 created in section 15G.107, if enacted by 2003 Iowa Acts, 38 32 House File 692 or another Act, to the grow Iowa values board 38 33 for the fiscal period beginning July 1, 2003, and ending June 38 34 30, 2007, the following amount, or so much thereof as is 38 35 necessary, to be used for the purpose designated: 39 1 For the purpose of providing financial assistance for 39 2 projects in targeted state parks and destination parks: 39 3 FY 2003-2004...................................... $ 500,000 39 4 FY 2004-2005...................................... $ 0 39 5 FY 2005-2006...................................... $ 0 39 6 FY 2006-2007...................................... $ 500,000 39 7 2. Notwithstanding section 8.33, moneys that remain 39 8 unexpended at the end of a fiscal year shall not revert to any 39 9 fund but shall remain available for expenditure for the 39 10 designated purposes during the succeeding fiscal year. 39 11 3. The department of natural resources, in cooperation 39 12 with the department of economic development, shall submit a 39 13 plan to the grow Iowa values board for the expenditure of 39 14 moneys appropriated under this section. The plan shall focus 39 15 on improving state parks and destination parks for economic 39 16 development purposes. Based on the report submitted, the grow 39 17 Iowa values board shall provide financial assistance to the 39 18 department of natural resources for support of state parks and 39 19 destination parks. 39 20 Sec. 73. IOWA CULTURAL TRUST FUND APPROPRIATION. 39 21 1. There is appropriated from the grow Iowa values fund 39 22 created in section 15G.107, if enacted by 2003 Iowa Acts, 39 23 House File 692 or another Act, to the office of the treasurer 39 24 of state, for the fiscal period beginning July 1, 2003, and 39 25 ending June 30, 2007, the following amount, or so much thereof 39 26 as is necessary, to be used for the purpose designated: 39 27 For deposit in the Iowa cultural trust fund created in 39 28 section 303A.4: 39 29 FY 2003-2004...................................... $ 500,000 39 30 FY 2004-2005...................................... $ 0 39 31 FY 2005-2006...................................... $ 0 39 32 FY 2006-2007...................................... $ 500,000 39 33 2. Notwithstanding section 8.33, moneys that remain 39 34 unexpended at the end of a fiscal year shall not revert to any 39 35 fund but shall remain available for expenditure for the 40 1 designated purposes during the succeeding fiscal year. 40 2 Sec. 74. ANTICIPATED FEDERAL MONEYS – APPROPRIATION. 40 3 1. There is appropriated from the fund created by section 40 4 8.41, for the fiscal period beginning July 1, 2003, and ending 40 5 June 30, 2005, the following amounts to be used for the 40 6 purpose designated: 40 7 For deposit in the grow Iowa values fund created in section 40 8 15G.107, if enacted by 2003 Iowa Acts, House File 692 or 40 9 another Act: 40 10 FY 2003-2004...................................... $ 59,000,000 40 11 FY 2004-2005...................................... $ 41,000,000 40 12 2. Moneys appropriated in this section are moneys 40 13 anticipated to be received from the federal government for 40 14 state and local government fiscal relief under the federal 40 15 Jobs and Growth Tax Relief Reconciliation Act of 2003 and 40 16 shall be expended as provided in the federal law making the 40 17 moneys available and in conformance with chapter 17A. 40 18 3. Notwithstanding section 8.33, moneys that remain 40 19 unexpended at the end of a fiscal year shall not revert to any 40 20 fund but shall remain available for expenditure for the 40 21 designated purposes during the succeeding fiscal year. 40 22 Sec. 75. STREAMLINED SALES AND USE TAX REVENUE – 40 23 APPROPRIATION. 40 24 1. There is appropriated from the general fund of the 40 25 state from moneys credited to the general fund of the state as 40 26 a result of entering into the streamlined sales and use tax 40 27 agreement, for the fiscal period beginning July 1, 2003, and 40 28 ending June 30, 2010, the following amounts to be used for the 40 29 purpose designated: 40 30 For deposit in the grow Iowa values fund created in section 40 31 15G.107, if enacted by 2003 Iowa Acts, House File 692 or 40 32 another Act: 40 33 FY 2003-2004...................................... $ 5,000,000 40 34 FY 2004-2005...................................... $ 23,000,000 40 35 FY 2005-2006...................................... $ 75,000,000 41 1 FY 2006-2007...................................... $ 75,000,000 41 2 FY 2007-2008...................................... $ 75,000,000 41 3 FY 2008-2009...................................... $ 75,000,000 41 4 FY 2009-2010...................................... $ 75,000,000 41 5 2. For purposes of this section, "moneys credited to the 41 6 general fund of the state as a result of entering into the 41 7 streamlined sales and use tax agreement" means the amount of 41 8 sales and use tax receipts credited to the general fund of the 41 9 state during a fiscal year that exceeds by two percent or more 41 10 the total sales and use tax receipts credited to the general 41 11 fund of the state during the previous fiscal year. 41 12 a. If the moneys credited to the general fund of the state 41 13 as a result of entering into the streamlined sales and use tax 41 14 agreement during a fiscal year total less than the amount 41 15 appropriated in this section, the appropriation in this 41 16 section shall be reduced to equal the total amount of the 41 17 moneys so credited. 41 18 b. If the appropriation for a fiscal year is reduced 41 19 pursuant to paragraph "a", all appropriations made from the 41 20 grow Iowa values fund for the same fiscal year shall be 41 21 reduced proportionately to the amount reduced due to paragraph 41 22 "a". 41 23 3. Notwithstanding section 8.33, moneys that remain 41 24 unexpended at the end of a fiscal year shall not revert to any 41 25 fund but shall remain available for expenditure for the 41 26 designated purposes during the succeeding fiscal year. 41 27 DIVISION VII 41 28 WORKFORCE-RELATED ISSUES 41 29 Sec. 76. NEW SECTION. 260C.18A WORKFORCE TRAINING AND 41 30 ECONOMIC DEVELOPMENT FUNDS. 41 31 1. a. A workforce training and economic development fund 41 32 is created for each community college. Moneys shall be 41 33 deposited and expended from a fund as provided under this 41 34 section. 41 35 b. Moneys in the funds shall consist of any moneys 42 1 appropriated by the general assembly and any other moneys 42 2 available to and obtained or accepted by the department of 42 3 economic development from federal sources or private sources 42 4 for placement in the funds. Notwithstanding section 8.33, 42 5 moneys in the funds at the end of each fiscal year shall not 42 6 revert to any other fund but shall remain in the funds for 42 7 expenditure in subsequent fiscal years. 42 8 2. On July 1 of each year for the fiscal year beginning 42 9 July 1, 2003, and for every fiscal year thereafter, moneys 42 10 from the grow Iowa values fund created in section 15G.107, if 42 11 enacted by 2003 Iowa Acts, House File 692 or another Act, are 42 12 appropriated to the department of economic development for 42 13 deposit in the workforce training and economic development 42 14 funds in amounts determined pursuant to subsection 3. Moneys 42 15 deposited in the funds and disbursed to community colleges for 42 16 a fiscal year shall be expended for the following purposes, 42 17 provided seventy percent of the moneys shall be used on 42 18 projects in the areas of advanced manufacturing, information 42 19 technology and insurance, and life sciences which include the 42 20 areas of biotechnology, health care technology, and nursing 42 21 care technology: 42 22 a. Projects in which an agreement between a community 42 23 college and an employer located within the community college's 42 24 merged area meet all of the requirements of the accelerated 42 25 career education program under chapter 260G. 42 26 b. Projects in which an agreement between a community 42 27 college and a business meet all the requirements of the Iowa 42 28 jobs training Act under chapter 260F. 42 29 c. For the development and implementation of career 42 30 academies designed to provide new career preparation 42 31 opportunities for high school students that are formally 42 32 linked with postsecondary career and technical education 42 33 programs. For purposes of this section, "career academy" 42 34 means a program of study that combines a minimum of two years 42 35 of secondary education with an associate degree, or the 43 1 equivalent, career preparatory program in a nonduplicative, 43 2 sequential course of study that is standards based, integrates 43 3 academic and technical instruction, utilizes work-based and 43 4 worksite learning where appropriate and available, utilizes an 43 5 individual career planning process with parent involvement, 43 6 and leads to an associate degree or postsecondary diploma or 43 7 certificate in a career field that prepares an individual for 43 8 entry and advancement in a high-skill and reward career field 43 9 and further education. The department of economic 43 10 development, in conjunction with the state board of education 43 11 and the division of community colleges and workforce 43 12 preparation of the department of education, shall adopt 43 13 administrative rules for the development and implementation of 43 14 such career academies pursuant to section 256.11, subsection 43 15 5, paragraph "h", section 260C.1, and Title II of Pub. L. No. 43 16 105-332, Carl D. Perkins Vocational and Technical Education 43 17 Act of 1998. 43 18 d. Programs and courses that provide vocational and 43 19 technical training, and programs for in-service training and 43 20 retraining under section 260C.1, subsections 2 and 3. 43 21 e. Job retention projects under section 260F.9. 43 22 3. Of the moneys appropriated in this section, for the 43 23 fiscal period beginning July 1, 2003, and ending June 30, 43 24 2006, the following amounts shall be designated for the 43 25 purposes of funding job retention projects under section 43 26 260F.9: 43 27 a. One million dollars for the fiscal year beginning July 43 28 1, 2003. 43 29 b. One million dollars for the fiscal year beginning July 43 30 1, 2004. 43 31 c. One million dollars for the fiscal year beginning July 43 32 1, 2005. 43 33 4. The maximum cumulative total amount of moneys that may 43 34 be deposited in all the workforce training and economic 43 35 development funds for distribution to community colleges in a 44 1 fiscal year shall be determined as follows: 44 2 a. Five million dollars for the fiscal year beginning July 44 3 1, 2003. 44 4 b. Five million dollars for the fiscal year beginning July 44 5 1, 2004. 44 6 c. Five million dollars for the fiscal year beginning July 44 7 1, 2005. 44 8 d. Ten million dollars for the fiscal year beginning July 44 9 1, 2006. 44 10 e. For the fiscal year beginning July 1, 2007, and each 44 11 succeeding fiscal year, the grow Iowa values board shall make 44 12 a determination if sufficient moneys exist in the grow Iowa 44 13 values fund to distribute to community colleges. 44 14 5. The department of economic development shall allocate 44 15 the moneys appropriated pursuant to this section to the 44 16 community college workforce training and economic development 44 17 funds utilizing the same distribution formula used for the 44 18 allocation of state general aid to the community colleges. 44 19 6. Each community college shall do all of the following: 44 20 a. Adopt a two-year workforce training and economic 44 21 development fund plan outlining the community college's 44 22 proposed use of moneys appropriated under subsection 2. 44 23 b. Update the two-year plan annually. 44 24 c. Prepare an annual progress report on the two-year 44 25 plan's implementation. 44 26 d. Annually submit the two-year plan and progress report 44 27 to the department of economic development in a manner 44 28 prescribed by rules adopted by the department pursuant to 44 29 chapter 17A and annually file a copy of the plan and progress 44 30 report with the grow Iowa values board. For the fiscal year 44 31 beginning July 1, 2004, and each fiscal year thereafter, a 44 32 community college shall not have moneys deposited in the 44 33 workforce training and economic development fund of that 44 34 community college unless the grow Iowa values board approves 44 35 the annual progress report of the community college. 45 1 7. Any individual project using over one million dollars 45 2 of moneys from a workforce training and economic development 45 3 fund shall require prior approval from the grow Iowa values 45 4 board. 45 5 Sec. 77. NEW SECTION. 260F.9 JOB RETENTION PROGRAM. 45 6 1. The department of economic development shall administer 45 7 the job retention program. The department shall adopt rules 45 8 pursuant to chapter 17A necessary for the administration of 45 9 this section. By January 15 of each year, the department 45 10 shall submit a written report to the general assembly and the 45 11 governor regarding the activities of the job retention program 45 12 during the previous calendar year. 45 13 2. A community college and the department may enter into 45 14 an agreement to establish a job retention project. A job 45 15 retention project agreement shall include, but not be limited 45 16 to, the following: 45 17 a. The date of the agreement. 45 18 b. The anticipated number of employees to be trained. 45 19 c. The estimated cost of training. 45 20 d. A statement regarding the number of employees employed 45 21 by the participating business on the date of the agreement 45 22 which must equal at least the lesser of one thousand employees 45 23 or four percent or more of the county's resident labor force 45 24 based on the most recent annual labor force statistics from 45 25 the department of workforce development. 45 26 e. A commitment that the participating business shall 45 27 invest at least fifteen million dollars to retool the 45 28 workplace and upgrade the facilities of the participating 45 29 business. 45 30 f. A commitment that the participating business shall not 45 31 move the business operation out of this state or close the 45 32 business operation for at least ten years following the date 45 33 of the agreement. 45 34 g. Other criteria established by the department of 45 35 economic development. 46 1 3. A job retention project agreement entered into pursuant 46 2 to this section must be approved by the board of trustees of 46 3 the applicable community college, the department of economic 46 4 development, and the participating business. 46 5 Sec. 78. NEW SECTION. 260F.101 REPORTING. 46 6 A community college entering into an agreement pursuant to 46 7 this chapter shall submit an annual written report by the end 46 8 of each calendar year with the grow Iowa values board created 46 9 in section 15G.102, if enacted by 2003 Iowa Acts, House File 46 10 692 or another Act. The report shall provide information 46 11 regarding how the agreement affects the achievement of the 46 12 goals and performance measures provided in section 15G.106, if 46 13 enacted by 2003 Iowa Acts, House File 692 or another Act. 46 14 Sec. 79. Section 260G.3, subsection 2, Code 2003, is 46 15 amended to read as follows: 46 16 2. An agreement may include reasonable and necessary 46 17 provisions to implement the accelerated career education 46 18 program. If an agreement that utilizes program job credits is 46 19 entered into, the community college and the employer shall 46 20 notify the department of revenue and finance as soon as 46 21 possible. The community college shall also file a copy of the 46 22 agreement with the department of economic development as 46 23 required in section 260G.4B. The agreement shall provide for 46 24 program costs, including deferred costs, which may be paid 46 25 from any of the following sources: 46 26 a. Program job credits which the employer receives based 46 27 on the number of program job positions agreed to by the 46 28 employer to be available under the agreement. 46 29 b. Cash or in-kind contributions by the employer toward 46 30 the program cost. At a minimum, the employer contribution 46 31 shall be twenty percent of the program costs. 46 32 c. Tuition, student fees, or special charges fixed by the 46 33 board of directors to defray program costs. 46 34 d. Guarantee by the employer of payments to be received 46 35 under paragraphs "a" and "b". 47 1 e. Moneys from a workforce training and economic 47 2 development fund created in section 260C.18A, based on the 47 3 number of program job positions agreed to by the employer to 47 4 be available under the agreement, the amount of which shall be 47 5 calculated in the same manner as the program job credits 47 6 provided for in section 260G.4A. 47 7 Sec. 80. NEW SECTION. 260G.101 REPORTING. 47 8 A community college entering into an agreement pursuant to 47 9 this chapter shall submit an annual written report by the end 47 10 of each calendar year with the grow Iowa values board created 47 11 in section 15G.102, if enacted by 2003 Iowa Acts, House File 47 12 692 or another Act. The report shall provide information 47 13 regarding how the agreement affects the achievement of the 47 14 goals and performance measures provided in section 15G.106, if 47 15 enacted by 2003 Iowa Acts, House File 692 or another Act. 47 16 DIVISION VIII 47 17 LOAN AND CREDIT GUARANTEE FUND 47 18 Sec. 81. NEW SECTION. 15E.227 LOAN AND CREDIT GUARANTEE 47 19 FUND. 47 20 1. A loan and credit guarantee fund is created and 47 21 established as a separate and distinct fund in the state 47 22 treasury. Moneys in the fund shall only be used for purposes 47 23 provided in this section. The moneys in the fund are 47 24 appropriated to the department to be used for all of the 47 25 following purposes: 47 26 a. Payment of claims pursuant to loan and credit guarantee 47 27 agreements entered into under this division. 47 28 b. Payment of administrative costs of the department for 47 29 actual and necessary administrative expenses incurred by the 47 30 department in administering the program. 47 31 c. Purchase or buyout of superior or prior liens, 47 32 mortgages, or security interests. 47 33 d. Purchase of insurance to cover the default of loans 47 34 made pursuant to the requirements of the loan and credit 47 35 guarantee program. 48 1 2. Moneys in the loan and credit guarantee fund shall 48 2 consist of all of the following: 48 3 a. Moneys appropriated by the general assembly for that 48 4 purpose and any other moneys available to and obtained or 48 5 accepted by the department for placement in the fund. 48 6 b. Proceeds from collateral assigned to the department, 48 7 fees for guarantees, gifts, and moneys from any grant made to 48 8 the fund by any federal agency. 48 9 c. Moneys appropriated from the grow Iowa values fund 48 10 created in section 15G.107, if enacted by 2003 Iowa Acts, 48 11 House File 692 or another Act. 48 12 3. Moneys in the fund are not subject to section 8.33. 48 13 Notwithstanding section 12C.7, interest or earnings on the 48 14 moneys in the fund shall be credited to the fund. 48 15 4. a. The department shall only pledge moneys in the loan 48 16 and credit guarantee fund and not any other moneys of the 48 17 department. In a fiscal year, the department may pledge an 48 18 amount not to exceed the total amount appropriated to the fund 48 19 for the same fiscal year to assure the repayment of loan and 48 20 credit guarantees or other extensions of credit made to or on 48 21 behalf of qualified businesses or targeted industry businesses 48 22 for eligible project costs. 48 23 b. The department shall not pledge the credit or taxing 48 24 power of this state or any political subdivision of this state 48 25 or make debts payable out of any moneys except for those in 48 26 the loan and credit guarantee fund. 48 27 DIVISION IX 48 28 UNIVERSITY-BASED RESEARCH UTILIZATION 48 29 PROGRAM APPROPRIATION 48 30 Sec. 82. NEW SECTION. 262B.12 APPROPRIATION. 48 31 On July 1 of each year there is appropriated from the 48 32 general fund of the state to each university under the control 48 33 of the state board of regents, an amount equal to the amount 48 34 determined by the department of economic development pursuant 48 35 to section 262B.11, subsection 4, paragraph "c", subparagraph 49 1 (2), if enacted by 2003 Iowa Acts, House File 692 or another 49 2 Act. 49 3 DIVISION X 49 4 ENDOW IOWA TAX CREDIT 49 5 Sec. 83. NEW SECTION. 15E.305 ENDOW IOWA TAX CREDIT. 49 6 1. For tax years beginning on or after January 1, 2003, a 49 7 tax credit shall be allowed against the taxes imposed in 49 8 chapter 422, divisions II, III, and V, and in chapter 432, and 49 9 against the moneys and credits tax imposed in section 533.24 49 10 equal to twenty percent of a taxpayer's endowment gift to a 49 11 qualified community foundation. An individual may claim a tax 49 12 credit under this section of a partnership, limited liability 49 13 company, S corporation, estate, or trust electing to have 49 14 income taxed directly to the individual. The amount claimed 49 15 by the individual shall be based upon the pro rata share of 49 16 the individual's earnings from the partnership, limited 49 17 liability company, S corporation, estate, or trust. A tax 49 18 credit shall be allowed only for an endowment gift made to a 49 19 qualified community foundation for a permanent endowment fund 49 20 established to benefit a charitable cause in this state. Any 49 21 tax credit in excess of the taxpayer's tax liability for the 49 22 tax year may be credited to the tax liability for the 49 23 following five years or until depleted, whichever occurs 49 24 first. A tax credit shall not be carried back to a tax year 49 25 prior to the tax year in which the taxpayer claims the tax 49 26 credit. 49 27 2. The aggregate amount of tax credits authorized pursuant 49 28 to this section shall not exceed a total of two million 49 29 dollars. The maximum amount of tax credits granted to a 49 30 taxpayer shall not exceed five percent of the aggregate amount 49 31 of tax credits authorized. 49 32 3. A tax credit shall not be transferable to any other 49 33 taxpayer. 49 34 4. A tax credit shall not be authorized pursuant to this 49 35 section after December 31, 2005. 50 1 5. The department shall develop a system for registration 50 2 and authorization of tax credits under this section and shall 50 3 control the distribution of all tax credits to taxpayers 50 4 providing an endowment gift subject to this section. The 50 5 department shall adopt administrative rules pursuant to 50 6 chapter 17A for the qualification and administration of 50 7 endowment gifts. 50 8 Sec. 84. NEW SECTION. 422.11H ENDOW IOWA TAX CREDIT. 50 9 The tax imposed under this division, less the credits 50 10 allowed under sections 422.12 and 422.12B, shall be reduced by 50 11 an endow Iowa tax credit authorized pursuant to section 50 12 15E.305. 50 13 Sec. 85. Section 422.33, Code 2003, is amended by adding 50 14 the following new subsection: 50 15 NEW SUBSECTION. 14. The taxes imposed under this division 50 16 shall be reduced by an endow Iowa tax credit authorized 50 17 pursuant to section 15E.305. 50 18 Sec. 86. Section 422.60, Code 2003, is amended by adding 50 19 the following new subsection: 50 20 NEW SUBSECTION. 7. The taxes imposed under this division 50 21 shall be reduced by an endow Iowa tax credit authorized 50 22 pursuant to section 15E.305. 50 23 Sec. 87. NEW SECTION. 432.12D ENDOW IOWA TAX CREDIT. 50 24 The tax imposed under this chapter shall be reduced by an 50 25 endow Iowa tax credit authorized pursuant to section 15E.305. 50 26 Sec. 88. Section 533.24, Code 2003, is amended by adding 50 27 the following new unnumbered paragraph: 50 28 NEW UNNUMBERED PARAGRAPH. The moneys and credits tax 50 29 imposed under this section shall be reduced by an endow Iowa 50 30 tax credit authorized pursuant to section 15E.305. 50 31 Sec. 89. EFFECTIVE AND RETROACTIVE APPLICABILITY DATES. 50 32 This division of this Act, being deemed of immediate 50 33 importance, takes effect upon enactment and is retroactively 50 34 applicable to January 1, 2003, for tax years beginning on or 50 35 after that date. 51 1 DIVISION XI 51 2 REHABILITATION PROJECT TAX CREDITS 51 3 Sec. 90. Section 404A.4, subsection 4, Code 2003, is 51 4 amended to read as follows: 51 5 4. The total amount of tax credits that may be approved 51 6 for a fiscal year under this chapter shall not exceed two 51 7 million four hundred thousand dollars. For the fiscal years 51 8 beginning July 1, 2005, and July 1, 2006, an additional five 51 9 hundred thousand dollars of tax credits may be approved each 51 10 fiscal year for purposes of projects located in cultural and 51 11 entertainment districts certified pursuant to section 303.3B, 51 12 if enacted by 2003 Iowa Acts, House File 692 or another Act. 51 13 Any of the additional tax credits allocated for projects 51 14 located in certified cultural and entertainment districts that 51 15 are not approved during a fiscal year may be carried over to 51 16 the succeeding fiscal year. Tax credit certificates shall be 51 17 issued on the basis of the earliest awarding of certifications 51 18 of completion as provided in subsection 1. The departments of 51 19 economic development and revenue and finance shall each adopt 51 20 rules to jointly administer this subsection and shall provide 51 21 by rule for the method to be used to determine for which 51 22 fiscal year the tax credits are approved. 51 23 DIVISION XII 51 24 STATE ASSISTANCE FOR EDUCATIONAL INFRASTRUCTURE FUND 51 25 Sec. 91. Section 8.57, subsection 5, Code 2003, is amended 51 26 by adding the following new paragraph: 51 27 NEW PARAGRAPH. f. There is appropriated from the rebuild 51 28 Iowa infrastructure fund to the secure an advanced vision for 51 29 education fund created in section 422E.3A, for each fiscal 51 30 year of the fiscal period beginning July 1, 2004, and ending 51 31 June 30, 2014, the amount of the moneys in excess of the first 51 32 forty-seven million dollars credited to the rebuild Iowa 51 33 infrastructure fund during the fiscal year, not to exceed ten 51 34 million dollars. 51 35 Sec. 92. NEW SECTION. 292A.3A APPROPRIATION. 52 1 There is appropriated from the general fund of the state 52 2 from moneys credited to the general fund of the state as a 52 3 result of the state entering into the streamlined sales and 52 4 use tax agreement to the secure an advanced vision for 52 5 education fund created in section 422E.3A, the sum of five 52 6 million dollars for each fiscal year of the fiscal period 52 7 beginning July 1, 2004, and ending June 30, 2014. The 52 8 appropriation in this section shall be made after the 52 9 appropriation from the same source to the grow Iowa fund 52 10 created in 2003 Iowa Acts, House File 692 or another Act. For 52 11 purposes of this section, "moneys credited to the general fund 52 12 of the state as a result of entering into the streamlined 52 13 sales and use tax agreement" means the amount of sales and use 52 14 tax receipts credited to the general fund of the state during 52 15 a fiscal year that exceeds by two percent or more the total 52 16 sales and use tax receipts credited to the general fund of the 52 17 state during the previous fiscal year. 52 18 DIVISION XIII 52 19 REPEALS 52 20 Sec. 93. The divisions of this Act designated economic 52 21 development appropriations, workforce-related issues, loan and 52 22 credit guarantee fund, university-based research utilization 52 23 program appropriation, endow Iowa tax credit, and 52 24 rehabilitation project tax credits are repealed effective June 52 25 30, 2010. 52 26 DIVISION XIV 52 27 STREAMLINED SALES AND USE TAXES 52 28 SUBCHAPTER I 52 29 DEFINITIONS 52 30 Sec. 94. NEW SECTION. 423.1 DEFINITIONS. 52 31 As used in this chapter the following words, terms, and 52 32 phrases have the meanings ascribed to them by this section, 52 33 except where the context clearly indicates that a different 52 34 meaning is intended: 52 35 1. "Agent" means a person appointed by a seller to 53 1 represent the seller before the member states. 53 2 2. "Agreement" means the streamlined sales and use tax 53 3 agreement authorized by subchapter IV of this chapter to 53 4 provide a mechanism for establishing and maintaining a 53 5 cooperative, simplified system for the application and 53 6 administration of sales and use taxes. 53 7 3. "Agricultural production" includes the production of 53 8 flowering, ornamental, or vegetable plants in commercial 53 9 greenhouses or otherwise, and production from aquaculture. 53 10 "Agricultural products" includes flowering, ornamental, or 53 11 vegetable plants and those products of aquaculture. 53 12 4. "Business" includes any activity engaged in by any 53 13 person or caused to be engaged in by the person with the 53 14 object of gain, benefit, or advantage, either direct or 53 15 indirect. 53 16 5. "Certificate of title" means a certificate of title 53 17 issued for a vehicle or for manufactured housing under chapter 53 18 321. 53 19 6. "Certified automated system" means software certified 53 20 under the agreement to calculate the tax imposed by each 53 21 jurisdiction on a transaction, determine the amount of tax to 53 22 remit to the appropriate state, and maintain a record of the 53 23 transaction. 53 24 7. "Certified service provider" means an agent certified 53 25 under the agreement to perform all of a seller's sales or use 53 26 tax functions, other than the seller's obligation to remit tax 53 27 on its own purchases. 53 28 8. "Computer" means an electronic device that accepts 53 29 information in digital or similar form and manipulates the 53 30 information for a result based on a sequence of instructions. 53 31 9. "Computer software" means a set of coded instructions 53 32 designed to cause a computer or automatic data processing 53 33 equipment to perform a task. 53 34 10. "Delivered electronically" means delivered to the 53 35 purchaser by means other than tangible storage media. 54 1 11. "Delivery charges" means charges assessed by a seller 54 2 of personal property or services for preparation and delivery 54 3 to a location designated by the purchaser of personal property 54 4 or services including, but not limited to, transportation, 54 5 shipping, postage, handling, crating, and packing charges. 54 6 12. "Department" means the department of revenue and 54 7 finance. 54 8 13. "Direct mail" means printed material delivered or 54 9 distributed by United States mail or other delivery service to 54 10 a mass audience or to addressees on a mailing list provided by 54 11 the purchaser or at the direction of the purchaser when the 54 12 cost of the items is not billed directly to the recipients. 54 13 "Direct mail" includes tangible personal property supplied 54 14 directly or indirectly by the purchaser to the direct mail 54 15 seller for inclusion in the package containing the printed 54 16 material. "Direct mail" does not include multiple items of 54 17 printed material delivered to a single address. 54 18 14. "Director" means the director of revenue and finance. 54 19 15. "Electronic" means relating to technology having 54 20 electrical, digital, magnetic, wireless, optical, 54 21 electromagnetic, or similar capabilities. 54 22 16. "Farm deer" means the same as defined in section 54 23 189A.2. 54 24 17. "Farm machinery and equipment" means machinery and 54 25 equipment used in agricultural production. 54 26 18. "First use of a service". A "first use of a service" 54 27 occurs, for the purposes of this chapter, when a service is 54 28 rendered, furnished, or performed in Iowa or if rendered, 54 29 furnished, or performed outside of Iowa, when the product or 54 30 result of the service is used in Iowa. 54 31 19. "Goods, wares, or merchandise" means the same as 54 32 tangible personal property. 54 33 20. "Governing board" means the group comprised of 54 34 representatives of the member states of the agreement which is 54 35 created by the agreement to be responsible for the agreement's 55 1 administration and operation. 55 2 21. "Installed purchase price" is the amount charged, 55 3 valued in money whether paid in money or otherwise, by a 55 4 building contractor to convert manufactured housing from 55 5 tangible personal property into realty. "Installed purchase 55 6 price" includes, but is not limited to, amounts charged for 55 7 installing a foundation and electrical and plumbing hookups. 55 8 "Installed purchase price" excludes any amount charged for 55 9 landscaping in connection with the conversion. 55 10 22. "Lease or rental". 55 11 a. "Lease or rental" means any transfer of possession or 55 12 control of tangible personal property for a fixed or 55 13 indeterminate term for consideration. A "lease or rental" may 55 14 include future options to purchase or extend. 55 15 b. "Lease or rental" includes agreements covering motor 55 16 vehicles and trailers when the amount of consideration may be 55 17 increased or decreased by reference to the amount realized 55 18 upon sale or disposition of the property as defined in 26 55 19 U.S.C. } 7701(h)(1). 55 20 c. "Lease or rental" does not include any of the 55 21 following: 55 22 (1) A transfer of possession or control of property under 55 23 a security agreement or deferred payment plan that requires 55 24 the transfer of title upon completion of the required 55 25 payments. 55 26 (2) A transfer of possession or control of property under 55 27 an agreement that requires the transfer of title upon 55 28 completion of required payments, and payment of any option 55 29 price does not exceed the greater of one hundred dollars or 55 30 one percent of the total required payments. 55 31 (3) Providing tangible personal property along with an 55 32 operator for a fixed or indeterminate period of time. A 55 33 condition of this exclusion is that the operator is necessary 55 34 for the equipment to perform as designed. For the purpose of 55 35 this subparagraph, an operator must do more than maintain, 56 1 inspect, or set up the tangible personal property. 56 2 d. This definition shall be used for sales and use tax 56 3 purposes regardless of whether a transaction is characterized 56 4 as a lease or rental under generally accepted accounting 56 5 principles, the Internal Revenue Code, the Uniform Commercial 56 6 Code, or other provisions of federal, state, or local law. 56 7 23. "Livestock" includes but is not limited to an animal 56 8 classified as an ostrich, rhea, emu, bison, or farm deer. 56 9 24. "Manufactured housing" means "manufactured home" as 56 10 defined in section 321.1. 56 11 25. "Member state" is any state which has signed the 56 12 agreement. 56 13 26. "Mobile home" means "manufactured or mobile home" as 56 14 defined in section 321.1. 56 15 27. "Model 1 seller" is a seller that has selected a 56 16 certified service provider as its agent to perform all the 56 17 seller's sales and use tax functions, other than the seller's 56 18 obligation to remit tax on its own purchases. 56 19 28. "Model 2 seller" is a seller that has selected a 56 20 certified automated system to perform part of its sales and 56 21 use tax functions, but retains responsibility for remitting 56 22 the tax. 56 23 29. "Model 3 seller" is a seller that has sales in at 56 24 least five member states, has total annual sales revenue of at 56 25 least five hundred million dollars, has a proprietary system 56 26 that calculates the amount of tax due each jurisdiction, and 56 27 has entered into a performance agreement with the member 56 28 states that establishes a tax performance standard for the 56 29 seller. As used in this definition, a "seller" includes an 56 30 affiliated group of sellers using the same proprietary system. 56 31 30. "Nonresidential commercial operations" means 56 32 industrial, commercial, mining, or agricultural operations, 56 33 whether for profit or not, but does not include apartment 56 34 complexes or mobile home parks. 56 35 31. "Not registered under the agreement" means lack of 57 1 registration by a seller with the member states under the 57 2 central registration system referenced in section 423.11, 57 3 subsection 4. 57 4 32. "Person" means an individual, trust, estate, 57 5 fiduciary, partnership, limited liability company, limited 57 6 liability partnership, corporation, or any other legal entity. 57 7 33. "Place of business" means any warehouse, store, place, 57 8 office, building, or structure where goods, wares, or 57 9 merchandise are offered for sale at retail or where any 57 10 taxable amusement is conducted, or each office where gas, 57 11 water, heat, communication, or electric services are offered 57 12 for sale at retail. 57 13 When a retailer or amusement operator sells merchandise by 57 14 means of vending machines or operates music or amusement 57 15 devices by coin-operated machines at more than one location 57 16 within the state, the office, building, or place where the 57 17 books, papers, and records of the taxpayer are kept shall be 57 18 deemed to be the taxpayer's place of business. 57 19 34. "Prewritten computer software" includes software 57 20 designed and developed by the author or other creator to the 57 21 specifications of a specific purchaser when it is sold to a 57 22 person other than the purchaser. The combining of two or more 57 23 prewritten computer software programs or prewritten portions 57 24 of prewritten programs does not cause the combination to be 57 25 other than prewritten computer software. "Prewritten computer 57 26 software" also means computer software, including prewritten 57 27 upgrades, which is not designed and developed by the author or 57 28 other creator to the specifications of a specific purchaser. 57 29 When a person modifies or enhances computer software of 57 30 which the person is not the author or creator, the person 57 31 shall be deemed to be the author or creator only of such 57 32 person's modifications or enhancements. Prewritten computer 57 33 software or a prewritten portion of the prewritten software 57 34 that is modified or enhanced to any degree, when such 57 35 modification or enhancement is designed and developed to the 58 1 specifications of a specific purchaser, remains prewritten 58 2 computer software. However, when there is a reasonable, 58 3 separately stated charge or an invoice or other statement of 58 4 the price given to the purchaser for such modification or 58 5 enhancement, such modification or enhancement shall not 58 6 constitute prewritten computer software. 58 7 35. "Property purchased for resale in connection with the 58 8 performance of a service" means property which is purchased 58 9 for resale in connection with the rendition, furnishing, or 58 10 performance of a service by a person who renders, furnishes, 58 11 or performs the service if all of the following occur: 58 12 a. The provider and user of the service intend that a sale 58 13 of the property will occur. 58 14 b. The property is transferred to the user of the service 58 15 in connection with the performance of the service in a form or 58 16 quantity capable of a fixed or definite price value. 58 17 c. The sale is evidenced by a separate charge for the 58 18 identifiable piece of property. 58 19 36. "Purchase" means any transfer, exchange, or barter, 58 20 conditional or otherwise, in any manner or by any means 58 21 whatsoever, for a consideration. 58 22 37. "Purchase price" means the same as "sales price" as 58 23 defined in this section. 58 24 38. "Purchaser" is a person to whom a sale of personal 58 25 property is made or to whom a service is furnished. 58 26 39. "Receive" and "receipt" mean any of the following: 58 27 a. Taking possession of tangible personal property. 58 28 b. Making first use of a service. 58 29 c. Taking possession or making first use of digital goods, 58 30 whichever comes first. 58 31 "Receive" and "receipt" do not include possession by a 58 32 shipping company on behalf of a purchaser. 58 33 40. "Registered under the agreement" means registration by 58 34 a seller under the central registration system referenced in 58 35 section 423.11, subsection 4. 59 1 41. "Relief agency" means the state, any county, city and 59 2 county, city, or district thereof, or any agency engaged in 59 3 actual relief work. 59 4 42. "Retailer" means and includes every person engaged in 59 5 the business of selling tangible personal property or taxable 59 6 services at retail, or the furnishing of gas, electricity, 59 7 water, or communication service, and tickets or admissions to 59 8 places of amusement and athletic events or operating amusement 59 9 devices or other forms of commercial amusement from which 59 10 revenues are derived. However, when in the opinion of the 59 11 director it is necessary for the efficient administration of 59 12 this chapter to regard any salespersons, representatives, 59 13 truckers, peddlers, or canvassers as agents of the dealers, 59 14 distributors, supervisors, employers, or persons under whom 59 15 they operate or from whom they obtain tangible personal 59 16 property sold by them irrespective of whether or not they are 59 17 making sales on their own behalf or on behalf of such dealers, 59 18 distributors, supervisors, employers, or persons, the director 59 19 may so regard them, and may regard such dealers, distributors, 59 20 supervisors, employers, or persons as retailers for the 59 21 purposes of this chapter. "Retailer" includes a seller 59 22 obligated to collect sales or use tax. 59 23 43. "Retailer maintaining a place of business in this 59 24 state" or any like term includes any retailer having or 59 25 maintaining within this state, directly or by a subsidiary, an 59 26 office, distribution house, sales house, warehouse, or other 59 27 place of business, or any representative operating within this 59 28 state under the authority of the retailer or its subsidiary, 59 29 irrespective of whether that place of business or 59 30 representative is located here permanently or temporarily, or 59 31 whether the retailer or subsidiary is admitted to do business 59 32 within this state pursuant to chapter 490. 59 33 44. "Retailers who are not model sellers" means all 59 34 retailers other than model 1, model 2, or model 3 sellers. 59 35 45. "Retail sale" or "sale at retail" means any sale, 60 1 lease, or rental for any purpose other than resale, sublease, 60 2 or subrent. 60 3 46. "Sales" or "sale" means any transfer, exchange, or 60 4 barter, conditional or otherwise, in any manner or by any 60 5 means whatsoever, for consideration. 60 6 47. "Sales price" applies to the measure subject to sales 60 7 tax. 60 8 a. "Sales price" means the total amount of consideration, 60 9 including cash, credit, property, and services, for which 60 10 personal property or services are sold, leased, or rented, 60 11 valued in money, whether received in money or otherwise, 60 12 without any deduction for any of the following: 60 13 (1) The seller's cost of the property sold. 60 14 (2) The cost of materials used, labor or service cost, 60 15 interest, losses, all costs of transportation to the seller, 60 16 all taxes imposed on the seller, and any other expenses of the 60 17 seller. 60 18 (3) Charges by the seller for any services necessary to 60 19 complete the sale, other than delivery and installation 60 20 charges. 60 21 (4) Delivery charges. 60 22 (5) Installation charges. 60 23 (6) The value of exempt personal property given to the 60 24 purchaser where taxable and exempt personal property have been 60 25 bundled together and sold by the seller as a single product or 60 26 piece of merchandise. 60 27 (7) Credit for any trade-in authorized by section 423.3, 60 28 subsection 58. 60 29 b. "Sales price" does not include: 60 30 (1) Discounts, including cash, term, or coupons that are 60 31 not reimbursed by a third party that are allowed by a seller 60 32 and taken by a purchaser on a sale. 60 33 (2) Interest, financing, and carrying charges from credit 60 34 extended on the sale of personal property or services, if the 60 35 amount is separately stated on the invoice, bill of sale, or 61 1 similar document given to the purchaser. 61 2 (3) Any taxes legally imposed directly on the consumer 61 3 that are separately stated on the invoice, bill of sale, or 61 4 similar document given to the purchaser. 61 5 (4) The amounts received for charges included in paragraph 61 6 "a", subparagraphs (3) through (7), if they are separately 61 7 contracted for and separately stated on the invoice, billing, 61 8 or similar document given to the purchaser. 61 9 48. "Sales tax" means the tax levied under subchapter II 61 10 of this chapter. 61 11 49. "Seller" means any person making sales, leases, or 61 12 rentals of personal property or services. 61 13 50. "Services" means all acts or services rendered, 61 14 furnished, or performed, other than services used in 61 15 processing of tangible personal property for use in retail 61 16 sales or services, for an employer, as defined in section 61 17 422.4, subsection 3, for a valuable consideration by any 61 18 person engaged in any business or occupation specifically 61 19 enumerated in section 423.2. The tax shall be due and 61 20 collectible when the service is rendered, furnished, or 61 21 performed for the ultimate user of the service. 61 22 51. "Services used in the processing of tangible personal 61 23 property" includes the reconditioning or repairing of tangible 61 24 personal property of the type normally sold in the regular 61 25 course of the retailer's business and which is held for sale. 61 26 52. "State" means any state of the United States and the 61 27 District of Columbia. 61 28 53. "System" means the central electronic registration 61 29 system maintained by Iowa and other states which are 61 30 signatories to the agreement. 61 31 54. "Tangible personal property" means personal property 61 32 that can be seen, weighed, measured, felt, or touched, or that 61 33 is in any other manner perceptible to the senses. "Tangible 61 34 personal property" includes electricity, water, gas, steam, 61 35 and prewritten computer software. 62 1 55. "Taxpayer" includes any person who is subject to a tax 62 2 imposed by this chapter, whether acting on the person's own 62 3 behalf or as a fiduciary. 62 4 56. "Trailer" shall mean every trailer, as is now or may 62 5 be hereafter so defined by chapter 321, which is required to 62 6 be registered or is subject only to the issuance of a 62 7 certificate of title under chapter 321. 62 8 57. "Use" means and includes the exercise by any person of 62 9 any right or power over tangible personal property incident to 62 10 the ownership of that property. A retailer's or building 62 11 contractor's sale of manufactured housing for use in this 62 12 state, whether in the form of tangible personal property or of 62 13 realty, is a use of that property for the purposes of this 62 14 chapter. 62 15 58. "Use tax" means the tax levied under subchapter III of 62 16 this chapter for which the retailer collects and remits tax to 62 17 the department. 62 18 59. "User" means the immediate recipient of the services 62 19 who is entitled to exercise a right of power over the product 62 20 of such services. 62 21 60. "Value of services" means the price to the user 62 22 exclusive of any direct tax imposed by the federal government 62 23 or by this chapter. 62 24 61. "Vehicles subject to registration" means any vehicle 62 25 subject to registration pursuant to section 321.18. 62 26 SUBCHAPTER II 62 27 SALES TAX 62 28 Sec. 95. NEW SECTION. 423.2 TAX IMPOSED. 62 29 1. There is imposed a tax of five percent upon the sales 62 30 price of all sales of tangible personal property, consisting 62 31 of goods, wares, or merchandise, sold at retail in the state 62 32 to consumers or users except as otherwise provided in this 62 33 subchapter. 62 34 a. For the purposes of this subchapter, sales of the 62 35 following services are treated as if they were sales of 63 1 tangible personal property: 63 2 (1) Sales of engraving, photography, retouching, printing, 63 3 and binding services. 63 4 (2) Sales of vulcanizing, recapping, and retreading 63 5 services. 63 6 (3) Sales of prepaid telephone calling cards and prepaid 63 7 authorization numbers. 63 8 (4) Sales of optional service or warranty contracts, 63 9 except residential service contracts regulated under chapter 63 10 523C, which provide for the furnishing of labor and materials 63 11 and require the furnishing of any taxable service enumerated 63 12 under this section. The sales price is subject to tax even if 63 13 some of the services furnished are not enumerated under this 63 14 section. Additional sales, services, or use taxes shall not 63 15 be levied on services, parts, or labor provided under optional 63 16 service or warranty contracts which are subject to tax under 63 17 this subsection. 63 18 If the optional service or warranty contract is a computer 63 19 software maintenance or support service contract and there is 63 20 no separately stated fee for the taxable personal property or 63 21 for the nontaxable service, the tax imposed by this subsection 63 22 shall be imposed on fifty percent of the sales price from the 63 23 sale of such contract. If the contract provides for technical 63 24 support services only, no tax shall be imposed under this 63 25 subsection. The provisions of this subparagraph (4) also 63 26 apply to the use tax. 63 27 (5) Renting of rooms, apartments, or sleeping quarters in 63 28 a hotel, motel, inn, public lodging house, rooming house, 63 29 mobile home which is tangible personal property, or tourist 63 30 court, or in any place where sleeping accommodations are 63 31 furnished to transient guests for rent, whether with or 63 32 without meals. "Renting" and "rent" include any kind of 63 33 direct or indirect charge for such rooms, apartments, or 63 34 sleeping quarters, or their use. However, the tax does not 63 35 apply to the sales price from the renting of a room, 64 1 apartment, or sleeping quarters while rented by the same 64 2 person for a period of more than thirty-one consecutive days. 64 3 b. Sales of building materials, supplies, and equipment to 64 4 owners, contractors, subcontractors, or builders for the 64 5 erection of buildings or the alteration, repair, or 64 6 improvement of real property are retail sales of tangible 64 7 personal property in whatever quantity sold. Where the owner, 64 8 contractor, subcontractor, or builder is also a retailer 64 9 holding a retail sales tax permit and transacting retail sales 64 10 of building materials, supplies, and equipment, the person 64 11 shall purchase such items of tangible personal property 64 12 without liability for the tax if such property will be subject 64 13 to the tax at the time of resale or at the time it is 64 14 withdrawn from inventory for construction purposes. The sales 64 15 tax shall be due in the reporting period when the materials, 64 16 supplies, and equipment are withdrawn from inventory for 64 17 construction purposes or when sold at retail. The tax shall 64 18 not be due when materials are withdrawn from inventory for use 64 19 in construction outside of Iowa and the tax shall not apply to 64 20 tangible personal property purchased and consumed by the 64 21 manufacturer as building materials in the performance by the 64 22 manufacturer or its subcontractor of construction outside of 64 23 Iowa. The sale of carpeting is not a sale of building 64 24 materials. The sale of carpeting to owners, contractors, 64 25 subcontractors, or builders shall be treated as the sale of 64 26 ordinary tangible personal property and subject to the tax 64 27 imposed under this subsection and the use tax. 64 28 c. The use within this state of tangible personal property 64 29 by the manufacturer thereof, as building materials, supplies, 64 30 or equipment, in the performance of construction contracts in 64 31 Iowa, shall, for the purpose of this subchapter, be construed 64 32 as a sale at retail of tangible personal property by the 64 33 manufacturer who shall be deemed to be the consumer of such 64 34 tangible personal property. The tax shall be computed upon 64 35 the cost to the manufacturer of the fabrication or production 65 1 of the tangible personal property. 65 2 2. A tax of five percent is imposed upon the sales price 65 3 of the sale or furnishing of gas, electricity, water, heat, 65 4 pay television service, and communication service, including 65 5 the sales price from such sales by any municipal corporation 65 6 or joint water utility furnishing gas, electricity, water, 65 7 heat, pay television service, and communication service to the 65 8 public in its proprietary capacity, except as otherwise 65 9 provided in this subchapter, when sold at retail in the state 65 10 to consumers or users. 65 11 3. A tax of five percent is imposed upon the sales price 65 12 of all sales of tickets or admissions to places of amusement, 65 13 fairs, and athletic events except those of elementary and 65 14 secondary educational institutions. A tax of five percent is 65 15 imposed on the sales price of an entry fee or like charge 65 16 imposed solely for the privilege of participating in an 65 17 activity at a place of amusement, fair, or athletic event 65 18 unless the sales price of tickets or admissions charges for 65 19 observing the same activity are taxable under this subchapter. 65 20 A tax of five percent is imposed upon that part of private 65 21 club membership fees or charges paid for the privilege of 65 22 participating in any athletic sports provided club members. 65 23 4. A tax of five percent is imposed upon the sales price 65 24 derived from the operation of all forms of amusement devices 65 25 and games of skill, games of chance, raffles, and bingo games 65 26 as defined in chapter 99B, operated or conducted within the 65 27 state, the tax to be collected from the operator in the same 65 28 manner as for the collection of taxes upon the sales price of 65 29 tickets or admission as provided in this section. Nothing in 65 30 this subsection shall legalize any games of skill or chance or 65 31 slot-operated devices which are now prohibited by law. 65 32 The tax imposed under this subsection covers the total 65 33 amount from the operation of games of skill, games of chance, 65 34 raffles, and bingo games as defined in chapter 99B, and 65 35 musical devices, weighing machines, shooting galleries, 66 1 billiard and pool tables, bowling alleys, pinball machines, 66 2 slot-operated devices selling merchandise not subject to the 66 3 general sales taxes and on the total amount from devices or 66 4 systems where prizes are in any manner awarded to patrons and 66 5 upon the receipts from fees charged for participation in any 66 6 game or other form of amusement, and generally upon the sales 66 7 price from any source of amusement operated for profit, not 66 8 specified in this section, and upon the sales price from which 66 9 tax is not collected for tickets or admission, but tax shall 66 10 not be imposed upon any activity exempt from sales tax under 66 11 section 423.3, subsection 78. Every person receiving any 66 12 sales price from the sources described in this section is 66 13 subject to all provisions of this subchapter relating to 66 14 retail sales tax and other provisions of this chapter as 66 15 applicable. 66 16 5. There is imposed a tax of five percent upon the sales 66 17 price from the furnishing of services as defined in section 66 18 423.1. 66 19 6. The sales price of any of the following enumerated 66 20 services is subject to the tax imposed by subsection 5: 66 21 alteration and garment repair; armored car; vehicle repair; 66 22 battery, tire, and allied; investment counseling; service 66 23 charges of all financial institutions; barber and beauty; boat 66 24 repair; vehicle wash and wax; campgrounds; carpentry; roof, 66 25 shingle, and glass repair; dance schools and dance studios; 66 26 dating services; dry cleaning, pressing, dyeing, and 66 27 laundering; electrical and electronic repair and installation; 66 28 excavating and grading; farm implement repair of all kinds; 66 29 flying service; furniture, rug, carpet, and upholstery repair 66 30 and cleaning; fur storage and repair; golf and country clubs 66 31 and all commercial recreation; gun and camera repair; house 66 32 and building moving; household appliance, television, and 66 33 radio repair; janitorial and building maintenance or cleaning; 66 34 jewelry and watch repair; lawn care, landscaping, and tree 66 35 trimming and removal; limousine service, including driver; 67 1 machine operator; machine repair of all kinds; motor repair; 67 2 motorcycle, scooter, and bicycle repair; oilers and 67 3 lubricators; office and business machine repair; painting, 67 4 papering, and interior decorating; parking facilities; pay 67 5 television; pet grooming; pipe fitting and plumbing; wood 67 6 preparation; executive search agencies; private employment 67 7 agencies, excluding services for placing a person in 67 8 employment where the principal place of employment of that 67 9 person is to be located outside of the state; reflexology; 67 10 security and detective services; sewage services for 67 11 nonresidential commercial operations; sewing and stitching; 67 12 shoe repair and shoeshine; sign construction and installation; 67 13 storage of household goods, mini-storage, and warehousing of 67 14 raw agricultural products; swimming pool cleaning and 67 15 maintenance; tanning beds or salons; taxidermy services; 67 16 telephone answering service; test laboratories, including 67 17 mobile testing laboratories and field testing by testing 67 18 laboratories, and excluding tests on humans or animals; 67 19 termite, bug, roach, and pest eradicators; tin and sheet metal 67 20 repair; Turkish baths, massage, and reducing salons, excluding 67 21 services provided by massage therapists licensed under chapter 67 22 152C; water conditioning and softening; weighing; welding; 67 23 well drilling; wrapping, packing, and packaging of merchandise 67 24 other than processed meat, fish, fowl, and vegetables; 67 25 wrecking service; wrecker and towing. 67 26 For the purposes of this subsection, the sales price of a 67 27 lease or rental includes rents, royalties, and copyright and 67 28 license fees. For the purposes of this subsection, "financial 67 29 institutions" means all national banks, federally chartered 67 30 savings and loan associations, federally chartered savings 67 31 banks, federally chartered credit unions, banks organized 67 32 under chapter 524, savings and loan associations and savings 67 33 banks organized under chapter 534, and credit unions organized 67 34 under chapter 533. 67 35 7. a. A tax of five percent is imposed upon the sales 68 1 price from the sales, furnishing, or service of solid waste 68 2 collection and disposal service. 68 3 For purposes of this subsection, "solid waste" means 68 4 garbage, refuse, sludge from a water supply treatment plant or 68 5 air contaminant treatment facility, and other discarded waste 68 6 materials and sludges, in solid, semisolid, liquid, or 68 7 contained gaseous form, resulting from nonresidential 68 8 commercial operations, but does not include auto hulks; street 68 9 sweepings; ash; construction debris; mining waste; trees; 68 10 tires; lead acid batteries; used oil; hazardous waste; animal 68 11 waste used as fertilizer; earthen fill, boulders, or rock; 68 12 foundry sand used for daily cover at a sanitary landfill; 68 13 sewage sludge; solid or dissolved material in domestic sewage 68 14 or other common pollutants in water resources, such as silt, 68 15 dissolved or suspended solids in industrial waste water 68 16 effluents or discharges which are point sources subject to 68 17 permits under section 402 of the federal Water Pollution 68 18 Control Act, or dissolved materials in irrigation return 68 19 flows; or source, special nuclear, or by-product material 68 20 defined by the federal Atomic Energy Act of 1954. 68 21 A recycling facility that separates or processes recyclable 68 22 materials and that reduces the volume of the waste by at least 68 23 eighty-five percent is exempt from the tax imposed by this 68 24 subsection if the waste exempted is collected and disposed of 68 25 separately from other solid waste. 68 26 b. A person who transports solid waste generated by that 68 27 person or another person without compensation shall pay the 68 28 tax imposed by this subsection at the collection or disposal 68 29 facility based on the disposal charge or tipping fee. 68 30 However, the costs of a service or portion of a service to 68 31 collect and manage recyclable materials separated from solid 68 32 waste by the waste generator are exempt from the tax imposed 68 33 by this subsection. 68 34 8. a. A tax of five percent is imposed upon the sales 68 35 price from sales of bundled services contracts. For purposes 69 1 of this subsection, a "bundled services contract" means an 69 2 agreement providing for a retailer's performance of services, 69 3 one or more of which is a taxable service enumerated in this 69 4 section and one or more of which is not, in return for a 69 5 consumer's or user's single payment for the performance of the 69 6 services, with no separate statement to the consumer or user 69 7 of what portion of that payment is attributable to any one 69 8 service which is a part of the contract. 69 9 b. For purposes of the administration of the tax on 69 10 bundled services contracts, the director may enter into 69 11 agreements of limited duration with individual retailers, 69 12 groups of retailers, or organizations representing retailers 69 13 of bundled services contracts. Such an agreement shall impose 69 14 the tax rate only upon that portion of the sales price from a 69 15 bundled services contract which is attributable to taxable 69 16 services provided under the contract. 69 17 9. A tax of five percent is imposed upon the sales price 69 18 from any mobile telecommunications service which this state is 69 19 allowed to tax by the provisions of the federal Mobile 69 20 Telecommunications Sourcing Act, Pub. L. No. 106-252, 4 U.S.C. 69 21 } 116 et seq. For purposes of this subsection, taxes on 69 22 mobile telecommunications service, as defined under the 69 23 federal Mobile Telecommunications Sourcing Act that are deemed 69 24 to be provided by the customer's home service provider, shall 69 25 be paid to the taxing jurisdiction whose territorial limits 69 26 encompass the customer's place of primary use, regardless of 69 27 where the mobile telecommunications service originates, 69 28 terminates, or passes through and shall in all other respects 69 29 be taxed in conformity with the federal Mobile 69 30 Telecommunications Sourcing Act. All other provisions of the 69 31 federal Mobile Telecommunications Sourcing Act are adopted by 69 32 the state of Iowa and incorporated into this subsection by 69 33 reference. With respect to mobile telecommunications service 69 34 under the federal Mobile Telecommunications Sourcing Act, the 69 35 director shall, if requested, enter into agreements consistent 70 1 with the provisions of the federal Act. 70 2 10. All revenues arising under the operation of the 70 3 provisions of this section shall be deposited into the general 70 4 fund of the state. 70 5 Sec. 96. NEW SECTION. 423.3 EXEMPTIONS. 70 6 There is exempted from the provisions of this subchapter 70 7 and from the computation of the amount of tax imposed by it 70 8 the following: 70 9 1. The sales price from sales of tangible personal 70 10 property and services furnished which this state is prohibited 70 11 from taxing under the Constitution or laws of the United 70 12 States or under the Constitution of this state. 70 13 2. The sales price of sales for resale of tangible 70 14 personal property or taxable services, or for resale of 70 15 tangible personal property in connection with the furnishing 70 16 of taxable services. 70 17 3. The sales price of agricultural breeding livestock and 70 18 domesticated fowl. 70 19 4. The sales price of commercial fertilizer. 70 20 5. The sales price of agricultural limestone, herbicide, 70 21 pesticide, insecticide, including adjuvants, surfactants, and 70 22 other products directly related to the application enhancement 70 23 of those products, food, medication, or agricultural drain 70 24 tile, including installation of agricultural drain tile, any 70 25 of which are to be used in disease control, weed control, 70 26 insect control, or health promotion of plants or livestock 70 27 produced as part of agricultural production for market. 70 28 6. The sales price of tangible personal property which 70 29 will be consumed as fuel in creating heat, power, or steam for 70 30 grain drying, or for providing heat or cooling for livestock 70 31 buildings or for greenhouses or buildings or parts of 70 32 buildings dedicated to the production of flowering, 70 33 ornamental, or vegetable plants intended for sale in the 70 34 ordinary course of business, or for use in cultivation of 70 35 agricultural products by aquaculture, or in implements of 71 1 husbandry engaged in agricultural production. 71 2 7. The sales price of services furnished by specialized 71 3 flying implements of husbandry used for agricultural aerial 71 4 spraying. 71 5 8. The sales price exclusive of services of farm machinery 71 6 and equipment, including auxiliary attachments which improve 71 7 the performance, safety, operation, or efficiency of the 71 8 machinery and equipment and replacement parts, if the 71 9 following conditions are met: 71 10 a. The farm machinery and equipment shall be directly and 71 11 primarily used in production of agricultural products. 71 12 b. The farm machinery and equipment shall constitute self- 71 13 propelled implements or implements customarily drawn or 71 14 attached to self-propelled implements or the farm machinery or 71 15 equipment is a grain dryer. 71 16 c. The replacement part is essential to any repair or 71 17 reconstruction necessary to the farm machinery's or 71 18 equipment's exempt use in the production of agricultural 71 19 products. 71 20 Vehicles subject to registration, as defined in section 71 21 423.1, or replacement parts for such vehicles, are not 71 22 eligible for this exemption. 71 23 9. The sales price of wood chips, sawdust, hay, straw, 71 24 paper, or other materials used for bedding in the production 71 25 of agricultural livestock or fowl. 71 26 10. The sales price of gas, electricity, water, or heat to 71 27 be used in implements of husbandry engaged in agricultural 71 28 production. 71 29 11. The sales price exclusive of services of farm 71 30 machinery and equipment, including auxiliary attachments which 71 31 improve the performance, safety, operation, or efficiency of 71 32 the machinery and equipment and replacement parts, if all of 71 33 the following conditions are met: 71 34 a. The implement, machinery, or equipment is directly and 71 35 primarily used in livestock or dairy production, aquaculture 72 1 production, or the production of flowering, ornamental, or 72 2 vegetable plants. 72 3 b. The implement is not a self-propelled implement or 72 4 implement customarily drawn or attached to self-propelled 72 5 implements. 72 6 c. The replacement part is essential to any repair or 72 7 reconstruction necessary to the farm machinery's or 72 8 equipment's exempt use in livestock or dairy production, 72 9 aquaculture production, or the production of flowering, 72 10 ornamental, or vegetable plants. 72 11 12. The sales price, exclusive of services, from sales of 72 12 irrigation equipment used in farming operations. 72 13 13. The sales price from the sale or rental of irrigation 72 14 equipment, whether installed above or below ground, to a 72 15 contractor or farmer if the equipment will be primarily used 72 16 in agricultural operations. 72 17 14. The sales price from the sales of horses, commonly 72 18 known as draft horses, when purchased for use and so used as 72 19 draft horses. 72 20 15. The sales price from the sale of property which is a 72 21 container, label, carton, pallet, packing case, wrapping, 72 22 baling wire, twine, bag, bottle, shipping case, or other 72 23 similar article or receptacle sold for use in agricultural, 72 24 livestock, or dairy production. 72 25 16. The sales price from the sale of feed and feed 72 26 supplements and additives when used for consumption by farm 72 27 deer or bison. 72 28 17. The sales price of all goods, wares, or merchandise, 72 29 or services, used for educational purposes sold to any private 72 30 nonprofit educational institution in this state. For the 72 31 purpose of this subsection, "educational institution" means an 72 32 institution which primarily functions as a school, college, or 72 33 university with students, faculty, and an established 72 34 curriculum. The faculty of an educational institution must be 72 35 associated with the institution and the curriculum must 73 1 include basic courses which are offered every year. 73 2 "Educational institution" includes an institution primarily 73 3 functioning as a library. 73 4 18. The sales price of tangible personal property sold, or 73 5 of services furnished, to the following nonprofit 73 6 corporations: 73 7 a. Residential care facilities and intermediate care 73 8 facilities for persons with mental retardation and residential 73 9 care facilities for persons with mental illness licensed by 73 10 the department of inspections and appeals under chapter 135C. 73 11 b. Residential facilities licensed by the department of 73 12 human services pursuant to chapter 237, other than those 73 13 maintained by individuals as defined in section 237.1, 73 14 subsection 7. 73 15 c. Rehabilitation facilities that provide accredited 73 16 rehabilitation services to persons with disabilities which are 73 17 accredited by the commission on accreditation of 73 18 rehabilitation facilities or the accreditation council for 73 19 services for persons with mental retardation and other persons 73 20 with developmental disabilities and adult day care services 73 21 approved for reimbursement by the state department of human 73 22 services. 73 23 d. Community mental health centers accredited by the 73 24 department of human services pursuant to chapter 225C. 73 25 e. Community health centers as defined in 42 U.S.C. } 73 26 254(c) and migrant health centers as defined in 42 U.S.C. } 73 27 254(b). 73 28 19. The sales price of tangible personal property sold to 73 29 a nonprofit organization which was organized for the purpose 73 30 of lending the tangible personal property to the general 73 31 public for use by them for nonprofit purposes. 73 32 20. The sales price of tangible personal property sold, or 73 33 of services furnished, to nonprofit legal aid organizations. 73 34 21. The sales price of goods, wares, or merchandise, or of 73 35 services, used for educational, scientific, historic 74 1 preservation, or aesthetic purpose sold to a nonprofit private 74 2 museum. 74 3 22. The sales price from sales of goods, wares, or 74 4 merchandise, or from services furnished, to a nonprofit 74 5 private art center to be used in the operation of the art 74 6 center. 74 7 23. The sales price of tangible personal property sold, or 74 8 of services furnished, by a fair society organized under 74 9 chapter 174. 74 10 24. The sales price from services furnished by the 74 11 notification center established pursuant to section 480.3, and 74 12 the vendor selected pursuant to section 480.3 to provide the 74 13 notification service. 74 14 25. The sales price of food and beverages sold for human 74 15 consumption by a nonprofit organization which principally 74 16 promotes a food or beverage product for human consumption 74 17 produced, grown, or raised in this state and whose income is 74 18 exempt from federal taxation under section 501(c) of the 74 19 Internal Revenue Code. 74 20 26. The sales price of tangible personal property sold, or 74 21 of services furnished, to a statewide nonprofit organ 74 22 procurement organization, as defined in section 142C.2. 74 23 27. The sales price of tangible personal property sold, or 74 24 of services furnished, to a nonprofit hospital licensed 74 25 pursuant to chapter 135B to be used in the operation of the 74 26 hospital. 74 27 28. The sales price of tangible personal property sold, or 74 28 of services furnished, to a freestanding nonprofit hospice 74 29 facility which operates a hospice program as defined in 42 74 30 C.F.R., ch. IV, } 418.3, which property or services are to be 74 31 used in the hospice program. 74 32 29. The sales price of all goods, wares, or merchandise 74 33 sold, or of services furnished, which are used in the 74 34 fulfillment of a written construction contract with a 74 35 nonprofit hospital licensed pursuant to chapter 135B if all of 75 1 the following apply: 75 2 a. The sales and delivery of the goods, wares, or 75 3 merchandise, or the services furnished occurred between July 75 4 1, 1998, and December 31, 2001. 75 5 b. The written construction contract was entered into 75 6 prior to December 31, 1999, or bonds to fund the construction 75 7 were issued prior to December 31, 1999. 75 8 c. The sales or services were purchased by a contractor as 75 9 the agent for the hospital or were purchased directly by the 75 10 hospital. 75 11 30. The sales price of livestock ear tags sold by a 75 12 nonprofit organization whose income is exempt from federal 75 13 taxation under section 501(c)(6) of the Internal Revenue Code 75 14 where the proceeds are used in bovine research programs 75 15 selected or approved by such organization. 75 16 31. The sales price of goods, wares, or merchandise sold 75 17 to and of services furnished, and used for public purposes 75 18 sold to a tax-certifying or tax-levying body of the state or a 75 19 governmental subdivision of the state, including regional 75 20 transit systems, as defined in section 324A.1, the state board 75 21 of regents, department of human services, state department of 75 22 transportation, any municipally owned solid waste facility 75 23 which sells all or part of its processed waste as fuel to a 75 24 municipally owned public utility, and all divisions, boards, 75 25 commissions, agencies, or instrumentalities of state, federal, 75 26 county, or municipal government which have no earnings going 75 27 to the benefit of an equity investor or stockholder, except 75 28 any of the following: 75 29 a. The sales price of goods, wares, or merchandise sold 75 30 to, or of services furnished, and used by or in connection 75 31 with the operation of any municipally owned public utility 75 32 engaged in selling gas, electricity, heat, or pay television 75 33 service to the general public. 75 34 b. The sales price of furnishing of sewage services to a 75 35 county or municipality on behalf of nonresidential commercial 76 1 operations. 76 2 c. The furnishing of solid waste collection and disposal 76 3 service to a county or municipality on behalf of 76 4 nonresidential commercial operations located within the county 76 5 or municipality. 76 6 The exemption provided by this subsection shall also apply 76 7 to all such sales of goods, wares, or merchandise or of 76 8 services furnished and subject to use tax. 76 9 32. The sales price of tangible personal property sold, or 76 10 of services furnished, by a county or city. This exemption 76 11 does not apply to any of the following: 76 12 a. The tax specifically imposed under section 423.2 on the 76 13 sales price from sales or furnishing of gas, electricity, 76 14 water, heat, pay television service, or communication service 76 15 to the public by a municipal corporation in its proprietary 76 16 capacity. 76 17 b. The sale or furnishing of solid waste collection and 76 18 disposal service to nonresidential commercial operations. 76 19 c. The sale or furnishing of sewage service for 76 20 nonresidential commercial operations. 76 21 d. Fees paid to cities and counties for the privilege of 76 22 participating in any athletic sports. 76 23 33. The sales price of mementos and other items relating 76 24 to Iowa history and historic sites, the general assembly, and 76 25 the state capitol, sold by the legislative service bureau and 76 26 its legislative information office on the premises of property 76 27 under the control of the legislative council, at the state 76 28 capitol, and on other state property. 76 29 34. The sales price from sales of mementos and other items 76 30 relating to Iowa history and historic sites by the department 76 31 of cultural affairs on the premises of property under its 76 32 control and at the state capitol. 76 33 35. The sales price from sales or services furnished by 76 34 the state fair organized under chapter 173. 76 35 36. The sales price from sales of tangible personal 77 1 property or of the sale or furnishing of electrical energy, 77 2 natural or artificial gas, or communication service to another 77 3 state or political subdivision of another state if the other 77 4 state provides a similar reciprocal exemption for this state 77 5 and political subdivision of this state. 77 6 37. The sales price of services on or connected with new 77 7 construction, reconstruction, alteration, expansion, 77 8 remodeling, or the services of a general building contractor, 77 9 architect, or engineer. 77 10 38. The sales price from the sale of building materials, 77 11 supplies, or equipment sold to rural water districts organized 77 12 under chapter 504A as provided in chapter 357A and used for 77 13 the construction of facilities of a rural water district. 77 14 39. The sales price from "casual sales". 77 15 "Casual sales" means: 77 16 a. Sales of tangible personal property, or the furnishing 77 17 of services, of a nonrecurring nature, by the owner, if the 77 18 seller, at the time of the sale, is not engaged for profit in 77 19 the business of selling tangible personal property or services 77 20 taxed under section 423.2. 77 21 b. The sale of all or substantially all of the tangible 77 22 personal property or services held or used by a seller in the 77 23 course of the seller's trade or business for which the seller 77 24 is required to hold a sales tax permit when the seller sells 77 25 or otherwise transfers the trade or business to another person 77 26 who shall engage in a similar trade or business. 77 27 40. The sales price from the sale of automotive fluids to 77 28 a retailer to be used either in providing a service which 77 29 includes the installation or application of the fluids in or 77 30 on a motor vehicle, which service is subject to section 423.2, 77 31 subsection 6, or to be installed in or applied to a motor 77 32 vehicle which the retailer intends to sell, which sale is 77 33 subject to section 423.26. For purposes of this subsection, 77 34 automotive fluids are all those which are refined, 77 35 manufactured, or otherwise processed and packaged for sale 78 1 prior to their installation in or application to a motor 78 2 vehicle. They include but are not limited to motor oil and 78 3 other lubricants, hydraulic fluids, brake fluid, transmission 78 4 fluid, sealants, undercoatings, antifreeze, and gasoline 78 5 additives. 78 6 41. The sales price from the rental of motion picture 78 7 films, video and audio tapes, video and audio discs, records, 78 8 photos, copy, scripts, or other media used for the purpose of 78 9 transmitting that which can be seen, heard, or read, if either 78 10 of the following conditions are met: 78 11 a. The lessee imposes a charge for the viewing of such 78 12 media and the charge for the viewing is subject to taxation 78 13 under this subchapter or is subject to use tax. 78 14 b. The lessee broadcasts the contents of such media for 78 15 public viewing or listening. 78 16 42. The sales price from the sale of tangible personal 78 17 property consisting of advertising material including paper to 78 18 a person in Iowa if that person or that person's agent will, 78 19 subsequent to the sale, send that advertising material outside 78 20 this state and the material is subsequently used solely 78 21 outside of Iowa. For the purpose of this subsection, 78 22 "advertising material" means any brochure, catalog, leaflet, 78 23 flyer, order form, return envelope, or similar item used to 78 24 promote sales of property or services. 78 25 43. The sales price from the sale of property or of 78 26 services performed on property which the retailer transfers to 78 27 a carrier for shipment to a point outside of Iowa, places in 78 28 the United States mail or parcel post directed to a point 78 29 outside of Iowa, or transports to a point outside of Iowa by 78 30 means of the retailer's own vehicles, and which is not 78 31 thereafter returned to a point within Iowa, except solely in 78 32 the course of interstate commerce or transportation. This 78 33 exemption shall not apply if the purchaser, consumer, or their 78 34 agent, other than a carrier, takes physical possession of the 78 35 property in Iowa. 79 1 44. The sales price from the sale of property which is a 79 2 container, label, carton, pallet, packing case, wrapping 79 3 paper, twine, bag, bottle, shipping case, or other similar 79 4 article or receptacle sold to retailers or manufacturers for 79 5 the purpose of packaging or facilitating the transportation of 79 6 tangible personal property sold at retail or transferred in 79 7 association with the maintenance or repair of fabric or 79 8 clothing. 79 9 45. The sales price from sales or rentals to a printer or 79 10 publisher of the following: acetate; anti-halation backing; 79 11 antistatic spray; back lining; base material used as a carrier 79 12 for light sensitive emulsions; blankets; blow-ups; bronze 79 13 powder; carbon tissue; codas; color filters; color 79 14 separations; contacts; continuous tone separations; creative 79 15 art; custom dies and die cutting materials; dampener sleeves; 79 16 dampening solution; design and styling; diazo coating; dot 79 17 etching; dot etching solutions; drawings; drawsheets; driers; 79 18 duplicate films or prints; electronically digitized images; 79 19 electrotypes; end product of image modulation; engravings; 79 20 etch solutions; film; finished art or final art; fix; fixative 79 21 spray; flats; flying pasters; foils; goldenrod paper; gum; 79 22 halftones; illustrations; ink; ink paste; keylines; lacquer; 79 23 lasering images; layouts; lettering; line negatives and 79 24 positives; linotypes; lithographic offset plates; magnesium 79 25 and zinc etchings; masking paper; masks; masters; mats; mat 79 26 service; metal toner; models and modeling; mylar; negatives; 79 27 nonoffset spray; opaque film process paper; opaquing; padding 79 28 compound; paper stock; photographic materials: acids, plastic 79 29 film, desensitizer emulsion, exposure chemicals, fix, 79 30 developers, and paper; photography, day rate; photopolymer 79 31 coating; photographs; photostats; photo-display tape; 79 32 phototypesetter materials; ph-indicator sticks; positives; 79 33 press pack; printing cylinders; printing plates, all types; 79 34 process lettering; proof paper; proofs and proof processes, 79 35 all types; pumice powder; purchased author alterations; 80 1 purchased composition; purchased phototypesetting; purchased 80 2 stripping and pasteups; red litho tape; reducers; roller 80 3 covering; screen tints; sketches; stepped plates; stereotypes; 80 4 strip types; substrate; tints; tissue overlays; toners; 80 5 transparencies; tympan; typesetting; typography; varnishes; 80 6 veloxes; wood mounts; and any other items used in a like 80 7 capacity to any of the above enumerated items by the printer 80 8 or publisher to complete a finished product for sale at 80 9 retail. Expendable tools and supplies which are not 80 10 enumerated in this subsection are excluded from the exemption. 80 11 "Printer" means that portion of a person's business engaged in 80 12 printing that completes a finished product for ultimate sale 80 13 at retail or means that portion of a person's business used to 80 14 complete a finished printed packaging material used to package 80 15 a product for ultimate sale at retail. "Printer" does not 80 16 mean an in-house printer who prints or copyrights its own 80 17 materials. 80 18 46. a. The sales price from the sale or rental of 80 19 computers, machinery, and equipment, including replacement 80 20 parts, and materials used to construct or self-construct 80 21 computers, machinery, and equipment if such items are any of 80 22 the following: 80 23 (1) Directly and primarily used in processing by a 80 24 manufacturer. 80 25 (2) Directly and primarily used to maintain the integrity 80 26 of the product or to maintain unique environmental conditions 80 27 required for either the product or the computers, machinery, 80 28 and equipment used in processing by a manufacturer, including 80 29 test equipment used to control quality and specifications of 80 30 the product. 80 31 (3) Directly and primarily used in research and 80 32 development of new products or processes of processing. 80 33 (4) Computers used in processing or storage of data or 80 34 information by an insurance company, financial institution, or 80 35 commercial enterprise. 81 1 (5) Directly and primarily used in recycling or 81 2 reprocessing of waste products. 81 3 (6) Pollution-control equipment used by a manufacturer, 81 4 including but not limited to that required or certified by an 81 5 agency of this state or of the United States government. 81 6 b. The sales price from the sale of fuel used in creating 81 7 heat, power, steam, or for generating electrical current, or 81 8 from the sale of electricity, consumed by computers, 81 9 machinery, or equipment used in an exempt manner described in 81 10 paragraph "a", subparagraph (1), (2), (3), (5), or (6). 81 11 c. The sales price from the sale or rental of the 81 12 following shall not be exempt from the tax imposed by this 81 13 subchapter: 81 14 (1) Hand tools. 81 15 (2) Point-of-sale equipment and computers. 81 16 (3) Industrial machinery, equipment, and computers, 81 17 including pollution-control equipment within the scope of 81 18 section 427A.1, subsection 1, paragraphs "h" and "i". 81 19 (4) Vehicles subject to registration, except vehicles 81 20 subject to registration which are directly and primarily used 81 21 in recycling or reprocessing of waste products. 81 22 d. As used in this subsection: 81 23 (1) "Commercial enterprise" includes businesses and 81 24 manufacturers conducted for profit and centers for data 81 25 processing services to insurance companies, financial 81 26 institutions, businesses, and manufacturers, but excludes 81 27 professions and occupations and nonprofit organizations. 81 28 (2) "Financial institution" means as defined in section 81 29 527.2. 81 30 (3) "Insurance company" means an insurer organized or 81 31 operating under chapter 508, 514, 515, 518, 518A, 519, or 520, 81 32 or authorized to do business in Iowa as an insurer or an 81 33 insurance producer under chapter 522B. 81 34 (4) "Manufacturer" means as defined in section 428.20, but 81 35 also includes contract manufacturers. A contract manufacturer 82 1 is a manufacturer that otherwise falls within the definition 82 2 of manufacturer under section 428.20, except that a contract 82 3 manufacturer does not sell the tangible personal property the 82 4 contract manufacturer processes on behalf of other 82 5 manufacturers. A business engaged in activities subsequent to 82 6 the extractive process of quarrying or mining, such as 82 7 crushing, washing, sizing, or blending of aggregate materials, 82 8 is a manufacturer with respect to these activities. 82 9 (5) "Processing" means a series of operations in which 82 10 materials are manufactured, refined, purified, created, 82 11 combined, or transformed by a manufacturer, ultimately into 82 12 tangible personal property. Processing encompasses all 82 13 activities commencing with the receipt or producing of raw 82 14 materials by the manufacturer and ending at the point products 82 15 are delivered for shipment or transferred from the 82 16 manufacturer. Processing includes but is not limited to 82 17 refinement or purification of materials; treatment of 82 18 materials to change their form, context, or condition; 82 19 maintenance of the quality or integrity of materials, 82 20 components, or products; maintenance of environmental 82 21 conditions necessary for materials, components, or products; 82 22 quality control activities; and construction of packaging and 82 23 shipping devices, placement into shipping containers or any 82 24 type of shipping devices or medium, and the movement of 82 25 materials, components, or products until shipment from the 82 26 processor. 82 27 (6) "Receipt or producing of raw materials" means 82 28 activities performed upon tangible personal property only. 82 29 With respect to raw materials produced from or upon real 82 30 estate, the receipt or producing of raw materials is deemed to 82 31 occur immediately following the severance of the raw materials 82 32 from the real estate. 82 33 47. The sales price from the furnishing of the design and 82 34 installation of new industrial machinery or equipment, 82 35 including electrical and electronic installation. 83 1 48. The sales price from the sale of carbon dioxide in a 83 2 liquid, solid, or gaseous form, electricity, steam, and other 83 3 taxable services when used by a manufacturer of food products 83 4 to produce marketable food products for human consumption, 83 5 including but not limited to treatment of material to change 83 6 its form, context, or condition, in order to produce the food 83 7 product, maintenance of quality or integrity of the food 83 8 product, changing or maintenance of temperature levels 83 9 necessary to avoid spoilage or to hold the food product in 83 10 marketable condition, maintenance of environmental conditions 83 11 necessary for the safe or efficient use of machinery and 83 12 material used to produce the food product, sanitation and 83 13 quality control activities, formation of packaging, placement 83 14 into shipping containers, and movement of the material or food 83 15 product until shipment from the building of manufacture. 83 16 49. The sales price of sales of electricity, steam, or any 83 17 taxable service when purchased and used in the processing of 83 18 tangible personal property intended to be sold ultimately at 83 19 retail. 83 20 50. The sales price of tangible personal property sold for 83 21 processing. Tangible personal property is sold for processing 83 22 within the meaning of this subsection only when it is intended 83 23 that the property will, by means of fabrication, compounding, 83 24 manufacturing, or germination, become an integral part of 83 25 other tangible personal property intended to be sold 83 26 ultimately at retail; or for generating electric current; or 83 27 the property is a chemical, solvent, sorbent, or reagent, 83 28 which is directly used and is consumed, dissipated, or 83 29 depleted, in processing tangible personal property which is 83 30 intended to be sold ultimately at retail or consumed in the 83 31 maintenance or repair of fabric or clothing, and which may not 83 32 become a component or integral part of the finished product. 83 33 The distribution to the public of free newspapers or shoppers 83 34 guides is a retail sale for purposes of the processing 83 35 exemption set out in this subsection and in subsection 49. 84 1 51. The sales price from the sale of argon and other 84 2 similar gases to be used in the manufacturing process. 84 3 52. The sales price from the sale of electricity to water 84 4 companies assessed for property tax pursuant to sections 84 5 428.24, 428.26, and 428.28 which is used solely for the 84 6 purpose of pumping water from a river or well. 84 7 53. The sales price from the sale of wind energy 84 8 conversion property to be used as an electric power source and 84 9 the sale of the materials used to manufacture, install, or 84 10 construct wind energy conversion property used or to be used 84 11 as an electric power source. 84 12 For purposes of this subsection, "wind energy conversion 84 13 property" means any device, including, but not limited to, a 84 14 wind charger, windmill, wind turbine, tower and electrical 84 15 equipment, pad mount transformers, power lines, and 84 16 substation, which converts wind energy to a form of usable 84 17 energy. 84 18 54. The sales price from the sales of newspapers, free 84 19 newspapers, or shoppers guides and the printing and publishing 84 20 of such newspapers and shoppers guides, and envelopes for 84 21 advertising. 84 22 55. The sales price from the sale of motor fuel and 84 23 special fuel consumed for highway use or in watercraft or 84 24 aircraft where the fuel tax has been imposed and paid and no 84 25 refund has been or will be allowed and the sales price from 84 26 the sales of ethanol blended gasoline, as defined in section 84 27 452A.2. 84 28 56. The sales price from all sales of food and food 84 29 ingredients. However, as used in this subsection, "food" does 84 30 not include alcoholic beverages, candy, dietary supplements, 84 31 food sold through vending machines, prepared food, soft 84 32 drinks, and tobacco. 84 33 For the purposes of this subsection: 84 34 a. "Alcoholic beverages" means beverages that are suitable 84 35 for human consumption and contain one-half of one percent or 85 1 more of alcohol by volume. 85 2 b. "Candy" means a preparation of sugar, honey, or other 85 3 natural or artificial sweeteners in combination with 85 4 chocolate, fruits, nuts, or other ingredients or flavorings in 85 5 the form of bars, drops, or pieces. Candy shall not include 85 6 any preparation containing flour and shall require no 85 7 refrigeration. 85 8 c. "Dietary supplement" means any product, other than 85 9 tobacco, intended to supplement the diet that contains one or 85 10 more of the following dietary ingredients: 85 11 (1) A vitamin. 85 12 (2) A mineral. 85 13 (3) An herb or other botanical. 85 14 (4) An amino acid. 85 15 (5) A dietary substance for use by humans to supplement 85 16 the diet by increasing the total dietary intake. 85 17 (6) A concentrate, metabolite, constituent, extract, or 85 18 combination of any of the ingredients in subparagraphs (1) 85 19 through (5) that is intended for ingestion in tablet, capsule, 85 20 powder, softgel, gelcap, or liquid form, or if not intended 85 21 for ingestion in such a form, is not represented as 85 22 conventional food and is not represented for use as a sole 85 23 item of a meal or of the diet; and is required to be labeled 85 24 as a dietary supplement, identifiable by the "supplement 85 25 facts" box found on the label and as required pursuant to 21 85 26 C.F.R. } 101.36. 85 27 d. "Food and food ingredients" means substances, whether 85 28 in liquid, concentrated, solid, frozen, dried, or dehydrated 85 29 form, that are sold for ingestion or chewing by humans and are 85 30 consumed for their taste or nutritional value. 85 31 e. "Food sold through vending machines" means food 85 32 dispensed from a machine or other mechanical device that 85 33 accepts payment, other than food which would be qualified for 85 34 exemption under subsection 57 if purchased with a coupon 85 35 described in subsection 57. 86 1 f. "Prepared food" means any of following: 86 2 (1) Food sold in a heated state or heated by the seller, 86 3 including food sold by a caterer. 86 4 (2) Two or more food ingredients mixed or combined by the 86 5 seller for sale as a single item. 86 6 (3) "Prepared food", for the purposes of this paragraph, 86 7 does not include food that is any of the following: 86 8 (a) Only cut, repackaged, or pasteurized by the seller. 86 9 (b) Eggs, fish, meat, poultry, and foods containing these 86 10 raw animal foods requiring cooking by the consumer as 86 11 recommended by the United States food and drug administration 86 12 in chapter 3, part 401.11 of its food code, so as to prevent 86 13 food borne illnesses. 86 14 (c) Bakery items sold by the seller which baked them. The 86 15 words "bakery items" includes but is not limited to breads, 86 16 rolls, buns, biscuits, bagels, croissants, pastries, donuts, 86 17 Danish, cakes, tortes, pies, tarts, muffins, bars, cookies, 86 18 and tortillas. 86 19 (d) Food sold without eating utensils provided by the 86 20 seller in an unheated state as a single item which is priced 86 21 by weight or volume. 86 22 (4) Food sold with eating utensils provided by the seller, 86 23 including plates, knives, forks, spoons, glasses, cups, 86 24 napkins, or straws. A plate does not include a container or 86 25 packaging used to transport food. 86 26 g. "Soft drinks" means nonalcoholic beverages that contain 86 27 natural or artificial sweeteners. "Soft drinks" does not 86 28 include beverages that contain milk or milk products; soy, 86 29 rice, or similar milk substitutes; or greater than fifty 86 30 percent of vegetable or fruit juice by volume. 86 31 f. "Tobacco" means cigarettes, cigars, chewing or pipe 86 32 tobacco, or any other item that contains tobacco. 86 33 57. The sales price from the sale of items purchased with 86 34 coupons issued under the federal Food Stamp Act of 1977, 7 86 35 U.S.C. } 2011 et seq. 87 1 58. In transactions in which tangible personal property is 87 2 traded toward the sales price of other tangible personal 87 3 property, that portion of the sales price which is not payable 87 4 in money to the retailer is exempted from the taxable amount 87 5 if the following conditions are met: 87 6 a. The tangible personal property traded to the retailer 87 7 is the type of property normally sold in the regular course of 87 8 the retailer's business. 87 9 b. The tangible personal property traded to the retailer 87 10 is intended by the retailer to be ultimately sold at retail or 87 11 is intended to be used by the retailer or another in the 87 12 remanufacturing of a like item. 87 13 59. The sales price from the sale or rental of 87 14 prescription drugs or medical devices intended for human use 87 15 or consumption. 87 16 For the purposes of this subsection: 87 17 a. "Drug" means a compound, substance, or preparation, and 87 18 any component of a compound, substance, or preparation, other 87 19 than food and food ingredients, dietary supplements, or 87 20 alcoholic beverages which is any of the following: 87 21 (1) Recognized in the official United States 87 22 pharmacopoeia, official homeopathic pharmacopoeia of the 87 23 United States, or official national formulary, and supplement 87 24 to any of them. 87 25 (2) Intended for use in the diagnosis, cure, mitigation, 87 26 treatment, or prevention of disease. 87 27 (3) Intended to affect the structure or any function of 87 28 the body. 87 29 b. "Medical device" means equipment or a supply, intended 87 30 to be prescribed by a practitioner, including orthopedic or 87 31 orthotic devices. However, "medical device" also includes 87 32 prosthetic devices, ostomy, urological, and tracheostomy 87 33 equipment and supplies, and diabetic testing materials, 87 34 hypodermic syringes and needles, anesthesia trays, biopsy 87 35 trays and biopsy needles, cannula systems, catheter trays and 88 1 invasive catheters, dialyzers, drug infusion devices, fistula 88 2 sets, hemodialysis devices, insulin infusion devices, 88 3 intraocular lenses, irrigation solutions, intravenous 88 4 administering sets, solutions and stopcocks, myelogram trays, 88 5 nebulizers, small vein infusion kits, spinal puncture trays, 88 6 transfusion sets, venous blood sets, and oxygen equipment, 88 7 intended to be dispensed for human use with or without a 88 8 prescription to an ultimate user. 88 9 c. "Practitioner" means a practitioner as defined in 88 10 section 155A.3, or a person licensed to prescribe drugs. 88 11 d. "Prescription drug" means a drug intended to be 88 12 dispensed to an ultimate user pursuant to a prescription drug 88 13 order, formula, or recipe issued in any form of oral, written, 88 14 electronic, or other means of transmission by a duly licensed 88 15 practitioner, or oxygen or insulin dispensed for human 88 16 consumption with or without a prescription drug order or 88 17 medication order. 88 18 e. "Prosthetic device" means a replacement, corrective, or 88 19 supportive device including repair and replacement parts for 88 20 the same worn on or in the body to do any of the following: 88 21 (1) Artificially replace a missing portion of the body. 88 22 (2) Prevent or correct physical deformity or malfunction. 88 23 (3) Support a weak or deformed portion of the body. 88 24 f. "Ultimate user" means an individual who has lawfully 88 25 obtained and possesses a prescription drug or medical device 88 26 for the individual's own use or for the use of a member of the 88 27 individual's household, or an individual to whom a 88 28 prescription drug or medical device has been lawfully 88 29 supplied, administered, dispensed, or prescribed. 88 30 60. The sales price from services furnished by aerial 88 31 commercial and charter transportation services. 88 32 61. The sales price from the sale of raffle tickets for a 88 33 raffle licensed pursuant to section 99B.5. 88 34 62. The sales price from the sale of tangible personal 88 35 property which will be given as prizes to players in games of 89 1 skill, games of chance, raffles, and bingo games as defined in 89 2 chapter 99B. 89 3 63. The sales price from the sale of a modular home, as 89 4 defined in section 435.1, to the extent of the portion of the 89 5 purchase price of the modular home which is not attributable 89 6 to the cost of the tangible personal property used in the 89 7 processing of the modular home. For purposes of this 89 8 exemption, the portion of the purchase price which is not 89 9 attributable to the cost of the tangible personal property 89 10 used in the processing of the modular home is forty percent. 89 11 64. The sales price from charges paid to a provider for 89 12 access to on-line computer services. For purposes of this 89 13 subsection, "on-line computer service" means a service that 89 14 provides or enables computer access by multiple users to the 89 15 internet or to other information made available through a 89 16 computer server. 89 17 65. The sales price from the sale or rental of information 89 18 services. "Information services" means every business 89 19 activity, process, or function by which a seller or its agent 89 20 accumulates, prepares, organizes, or conveys data, facts, 89 21 knowledge, procedures, and like services to a buyer or its 89 22 agent of such information through any tangible or intangible 89 23 medium. Information accumulated, prepared, or organized for a 89 24 buyer or its agent is an information service even though it 89 25 may incorporate preexisting components of data or other 89 26 information. "Information services" includes, but is not 89 27 limited to, database files, mailing lists, subscription files, 89 28 market research, credit reports, surveys, real estate 89 29 listings, bond rating reports, abstracts of title, bad check 89 30 lists, broadcasting rating services, wire services, and 89 31 scouting reports, or other similar items. 89 32 66. The sales price of a sale at retail if the substance 89 33 of the transaction is delivered to the purchaser digitally, 89 34 electronically, or utilizing cable, or by radio waves, 89 35 microwaves, satellites, or fiber optics. 90 1 67. a. The sales price from the sale of an article of 90 2 clothing designed to be worn on or about the human body if all 90 3 of the following apply: 90 4 (1) The sales price of the article is less than one 90 5 hundred dollars. 90 6 (2) The sale takes place during a period beginning at 90 7 12:01 a.m. on the first Friday in August and ending at 90 8 midnight on the following Saturday. 90 9 b. This subsection does not apply to any of the following: 90 10 (1) Sport or recreational equipment and protective 90 11 equipment. 90 12 (2) Clothing accessories or equipment. 90 13 (3) The rental of clothing. 90 14 c. For purposes of this subsection: 90 15 (1) "Clothing" means all human wearing apparel suitable 90 16 for general use. "Clothing" includes, but is not limited to 90 17 the following: aprons, household and shop; athletic 90 18 supporters; baby receiving blankets; bathing suits and caps; 90 19 beach capes and coats; belts and suspenders; boots; coats and 90 20 jackets; costumes; diapers (children and adults, including 90 21 disposable diapers); earmuffs; footlets; formal wear; garters 90 22 and garter belts; girdles; gloves and mittens for general use; 90 23 hats and caps; hosiery; insoles for shoes; lab coats; 90 24 neckties; overshoes; pantyhose; rainwear; rubber pants; 90 25 sandals; scarves; shoes and shoelaces; slippers; sneakers; 90 26 socks and stockings; steel-toed shoes; underwear; uniforms, 90 27 athletic and nonathletic; and wedding apparel. 90 28 "Clothing" does not include the following: belt buckles 90 29 sold separately; costume masks sold separately; patches and 90 30 emblems sold separately; sewing equipment and supplies 90 31 (including, but not limited to, knitting needles, patterns, 90 32 pins, scissors, sewing machines, sewing needles, tape 90 33 measures, and thimbles); and sewing materials that become part 90 34 of clothing (including, but not limited to, buttons, fabric, 90 35 lace, thread, yarn, and zippers). 91 1 (2) "Clothing accessories or equipment" means incidental 91 2 items worn on the person or in conjunction with clothing. 91 3 "Clothing accessories or equipment" includes, but is not 91 4 limited to, the following: briefcases; cosmetics; hair 91 5 notions (including, but not limited to, barrettes, hair bows, 91 6 and hair nets); handbags; handkerchiefs; jewelry; sunglasses, 91 7 nonprescription; umbrellas; wallets; watches; and wigs and 91 8 hairpieces. 91 9 (3) "Protective equipment" means items for human wear and 91 10 designed as protection for the wearer against injury or 91 11 disease or as protection against damage or injury of other 91 12 persons or property but not suitable for general use. 91 13 "Protective equipment" includes, but is not limited to, the 91 14 following: breathing masks; clean room apparel and equipment; 91 15 ear and hearing protectors; face shields; hard hats; helmets; 91 16 paint or dust respirators; protective gloves; safety glasses 91 17 and goggles; safety belts; tool belts; and welders gloves and 91 18 masks. 91 19 (4) "Sport or recreational equipment" means items designed 91 20 for human use and worn in conjunction with an athletic or 91 21 recreational activity that are not suitable for general use. 91 22 "Sport or recreational equipment" includes, but is not limited 91 23 to, the following: ballet and tap shoes; cleated or spiked 91 24 athletic shoes; gloves (including, but not limited to, 91 25 baseball, bowling, boxing, hockey, and golf); goggles; hand 91 26 and elbow guards; life preservers and vests; mouth guards; 91 27 roller and ice skates; shin guards; shoulder pads; ski boots; 91 28 waders; and wetsuits and fins. 91 29 68. a. Subject to paragraph "b", the sales price from the 91 30 sale or furnishing of metered gas, electricity, and fuel, 91 31 including propane and heating oil, to residential customers 91 32 which is used to provide energy for residential dwellings and 91 33 units of apartment and condominium complexes used for human 91 34 occupancy. 91 35 b. The exemption in this subsection shall be phased in by 92 1 means of a reduction in the tax rate as follows: 92 2 (1) If the date of the utility billing or meter reading 92 3 cycle of the residential customer for the sale or furnishing 92 4 of metered gas and electricity is on or after January 1, 2002, 92 5 through December 31, 2002, or if the sale or furnishing of 92 6 fuel for purposes of residential energy and the delivery of 92 7 the fuel occurs on or after January 1, 2002, through December 92 8 31, 2002, the rate of tax is four percent of the sales price. 92 9 (2) If the date of the utility billing or meter reading 92 10 cycle of the residential customer for the sale or furnishing 92 11 of metered gas and electricity is on or after January 1, 2003, 92 12 through June 30, 2008, or if the sale or furnishing of fuel 92 13 for purposes of residential energy and the delivery of the 92 14 fuel occurs on or after January 1, 2003, through June 30, 92 15 2008, the rate of tax is three percent of the sales price. 92 16 (3) If the date of the utility billing or meter reading 92 17 cycle of the residential customer for the sale or furnishing 92 18 of metered gas and electricity is on or after July 1, 2008, 92 19 through June 30, 2009, or if the sale or furnishing of fuel 92 20 for purposes of residential energy and the delivery of the 92 21 fuel occurs on or after July 1, 2008, through June 30, 2009, 92 22 the rate of tax is two percent of the sales price. 92 23 (4) If the date of the utility billing or meter reading 92 24 cycle of the residential customer for the sale or furnishing 92 25 of metered gas and electricity is on or after July 1, 2009, 92 26 through June 30, 2010, or if the sale or furnishing of fuel 92 27 for purposes of residential energy and the delivery of the 92 28 fuel occurs on or after July 1, 2009, through June 30, 2010, 92 29 the rate of tax is one percent of the sales price. 92 30 (5) If the date of the utility billing or meter reading 92 31 cycle of the residential customer for the sale or furnishing 92 32 of metered gas and electricity is on or after July 1, 2010, or 92 33 if the sale, furnishing, or service of fuel for purposes of 92 34 residential energy and the delivery of the fuel occurs on or 92 35 after July 1, 2010, the rate of tax is zero percent of the 93 1 sales price. 93 2 c. The exemption in this subsection does not apply to 93 3 local option sales and services tax imposed pursuant to 93 4 chapters 423B and 423E. 93 5 69. The sales price from charges paid for the delivery of 93 6 electricity or natural gas if the sale or furnishing of the 93 7 electricity or natural gas or its use is exempt from the tax 93 8 on sales prices imposed under this subchapter or from the use 93 9 tax imposed under subchapter III. 93 10 70. The sales price from the sales, furnishing, or service 93 11 of transportation service except the rental of recreational 93 12 vehicles or recreational boats, except the rental of motor 93 13 vehicles subject to registration which are registered for a 93 14 gross weight of thirteen tons or less for a period of sixty 93 15 days or less, and except the rental of aircraft for a period 93 16 of sixty days or less. This exemption does not apply to the 93 17 transportation of electric energy or natural gas. 93 18 71. The sales price from sales of tangible personal 93 19 property used or to be used as railroad rolling stock for 93 20 transporting persons or property, or as materials or parts 93 21 therefor. 93 22 72. The sales price from the sales of special fuel for 93 23 diesel engines consumed or used in the operation of ships, 93 24 barges, or waterborne vessels which are used primarily in or 93 25 for the transportation of property or cargo, or the conveyance 93 26 of persons for hire on rivers bordering on the state if the 93 27 fuel is delivered by the seller to the purchaser's barge, 93 28 ship, or waterborne vessel while it is afloat upon such a 93 29 river. 93 30 73. The sales price from sales of vehicles subject to 93 31 registration or subject only to the issuance of a certificate 93 32 of title and sales of aircraft subject to registration under 93 33 section 328.20. 93 34 74. The sales price from the sale of aircraft for use in a 93 35 scheduled interstate federal aviation administration 94 1 certificated air carrier operation. 94 2 75. The sales price from the sale or rental of aircraft; 94 3 the sale or rental of tangible personal property permanently 94 4 affixed or attached as a component part of the aircraft, 94 5 including but not limited to repair or replacement materials 94 6 or parts; and the sales price of all services used for 94 7 aircraft repair, remodeling, and maintenance services when 94 8 such services are performed on aircraft, aircraft engines, or 94 9 aircraft component materials or parts. For the purposes of 94 10 this exemption, "aircraft" means aircraft used in a scheduled 94 11 interstate federal aviation administration certificated air 94 12 carrier operation. 94 13 76. The sales price from the sale or rental of tangible 94 14 personal property permanently affixed or attached as a 94 15 component part of the aircraft, including but not limited to 94 16 repair or replacement materials or parts; and the sales price 94 17 of all services used for aircraft repair, remodeling, and 94 18 maintenance services when such services are performed on 94 19 aircraft, aircraft engines, or aircraft component materials or 94 20 parts. For the purposes of this exemption, "aircraft" means 94 21 aircraft used in nonscheduled interstate federal aviation 94 22 administration certificated air carrier operation operating 94 23 under 14 C.F.R. ch. 1, pt. 135. 94 24 77. The sales price from the sale of aircraft to an 94 25 aircraft dealer who in turn rents or leases the aircraft if 94 26 all of the following apply: 94 27 a. The aircraft is kept in the inventory of the dealer for 94 28 sale at all times. 94 29 b. The dealer reserves the right to immediately take the 94 30 aircraft from the renter or lessee when a buyer is found. 94 31 c. The renter or lessee is aware that the dealer will 94 32 immediately take the aircraft when a buyer is found. 94 33 If an aircraft exempt under this subsection is used for any 94 34 purpose other than leasing or renting, or the conditions in 94 35 paragraphs "a", "b", and "c" are not continuously met, the 95 1 dealer claiming the exemption under this subsection is liable 95 2 for the tax that would have been due except for this 95 3 subsection. The tax shall be computed upon the original 95 4 purchase price. 95 5 78. The sales price from sales or rental of tangible 95 6 personal property, or services rendered by any entity where 95 7 the profits from the sales or rental of the tangible personal 95 8 property, or services rendered are used by or donated to a 95 9 nonprofit entity which is exempt from federal income taxation 95 10 pursuant to section 501(c)(3) of the Internal Revenue Code, a 95 11 government entity, or a nonprofit private educational 95 12 institution, and where the entire proceeds from the sales, 95 13 rental, or services are expended for any of the following 95 14 purposes: 95 15 a. Educational. 95 16 b. Religious. 95 17 c. Charitable. A charitable act is an act done out of 95 18 goodwill, benevolence, and a desire to add to or to improve 95 19 the good of humankind in general or any class or portion of 95 20 humankind, with no pecuniary profit inuring to the person 95 21 performing the service or giving the gift. 95 22 This exemption does not apply to the sales price from games 95 23 of skill, games of chance, raffles, and bingo games as defined 95 24 in chapter 99B. This exemption is disallowed on the amount of 95 25 the sales price only to the extent the profits from the sales, 95 26 rental, or services are not used by or donated to the 95 27 appropriate entity and expended for educational, religious, or 95 28 charitable purposes. 95 29 79. The sales price from the sale or rental of tangible 95 30 personal property or from services furnished to a recognized 95 31 community action agency as provided in section 216A.93 to be 95 32 used for the purposes of the agency. 95 33 80. a. For purposes of this subsection, "designated 95 34 exempt entity" means an entity which is designated in section 95 35 423.4, subsection 1. 96 1 b. If a contractor, subcontractor, or builder is to use 96 2 building materials, supplies, and equipment in the performance 96 3 of a construction contract with a designated exempt entity, 96 4 the person shall purchase such items of tangible personal 96 5 property without liability for the tax if such property will 96 6 be used in the performance of the construction contract and a 96 7 purchasing agent authorization letter and an exemption 96 8 certificate, issued by the designated exempt entity, are 96 9 presented to the retailer. 96 10 c. Where the owner, contractor, subcontractor, or builder 96 11 is also a retailer holding a retail sales tax permit and 96 12 transacting retail sales of building materials, supplies, and 96 13 equipment, the tax shall not be due when materials are 96 14 withdrawn from inventory for use in construction performed for 96 15 a designated exempt entity if an exemption certificate is 96 16 received from such entity. 96 17 d. Tax shall not apply to tangible personal property 96 18 purchased and consumed by a manufacturer as building 96 19 materials, supplies, or equipment in the performance of a 96 20 construction contract for a designated exempt entity, if a 96 21 purchasing agent authorization letter and an exemption 96 22 certificate are received from such entity and presented to a 96 23 retailer. 96 24 81. The sales price from the sales of lottery tickets or 96 25 shares pursuant to chapter 99G. 96 26 82. The sales price from the sale or rental of core and 96 27 mold making equipment and sand handling equipment directly and 96 28 primarily used in the mold making process by a foundry. 96 29 83. The sales price from noncustomer point of sale or 96 30 noncustomer automated teller machine access or service charges 96 31 assessed by a financial institution. For purposes of this 96 32 subsection, "financial institution" means the same as defined 96 33 in section 527.2. 96 34 Sec. 97. NEW SECTION. 423.4 REFUNDS. 96 35 1. A private nonprofit educational institution in this 97 1 state, nonprofit private museum in this state, tax-certifying 97 2 or tax-levying body or governmental subdivision of the state, 97 3 including the state board of regents, state department of 97 4 human services, state department of transportation, a 97 5 municipally owned solid waste facility which sells all or part 97 6 of its processed waste as fuel to a municipally owned public 97 7 utility, and all divisions, boards, commissions, agencies, or 97 8 instrumentalities of state, federal, county, or municipal 97 9 government which do not have earnings going to the benefit of 97 10 an equity investor or stockholder, may make application to the 97 11 department for the refund of the sales or use tax upon the 97 12 sales price of all sales of goods, wares, or merchandise, or 97 13 from services furnished to a contractor, used in the 97 14 fulfillment of a written contract with the state of Iowa, any 97 15 political subdivision of the state, or a division, board, 97 16 commission, agency, or instrumentality of the state or a 97 17 political subdivision, a private nonprofit educational 97 18 institution in this state, or a nonprofit private museum in 97 19 this state if the property becomes an integral part of the 97 20 project under contract and at the completion of the project 97 21 becomes public property, is devoted to educational uses, or 97 22 becomes a nonprofit private museum; except goods, wares, or 97 23 merchandise, or services furnished which are used in the 97 24 performance of any contract in connection with the operation 97 25 of any municipal utility engaged in selling gas, electricity, 97 26 or heat to the general public or in connection with the 97 27 operation of a municipal pay television system; and except 97 28 goods, wares, and merchandise used in the performance of a 97 29 contract for a "project" under chapter 419 as defined in that 97 30 chapter other than goods, wares, or merchandise used in the 97 31 performance of a contract for a "project" under chapter 419 97 32 for which a bond issue was approved by a municipality prior to 97 33 July 1, 1968, or for which the goods, wares, or merchandise 97 34 becomes an integral part of the project under contract and at 97 35 the completion of the project becomes public property or is 98 1 devoted to educational uses. 98 2 a. Such contractor shall state under oath, on forms 98 3 provided by the department, the amount of such sales of goods, 98 4 wares, or merchandise, or services furnished and used in the 98 5 performance of such contract, and upon which sales or use tax 98 6 has been paid, and shall file such forms with the governmental 98 7 unit, private nonprofit educational institution, or nonprofit 98 8 private museum which has made any written contract for 98 9 performance by the contractor. The forms shall be filed by 98 10 the contractor with the governmental unit, educational 98 11 institution, or nonprofit private museum before final 98 12 settlement is made. 98 13 b. Such governmental unit, educational institution, or 98 14 nonprofit private museum shall, not more than one year after 98 15 the final settlement has been made, make application to the 98 16 department for any refund of the amount of the sales or use 98 17 tax which shall have been paid upon any goods, wares, or 98 18 merchandise, or services furnished, the application to be made 98 19 in the manner and upon forms to be provided by the department, 98 20 and the department shall forthwith audit the claim and, if 98 21 approved, issue a warrant to the governmental unit, 98 22 educational institution, or nonprofit private museum in the 98 23 amount of the sales or use tax which has been paid to the 98 24 state of Iowa under the contract. 98 25 Refunds authorized under this subsection shall accrue 98 26 interest at the rate in effect under section 421.7 from the 98 27 first day of the second calendar month following the date the 98 28 refund claim is received by the department. 98 29 c. Any contractor who willfully makes a false report of 98 30 tax paid under the provisions of this subsection is guilty of 98 31 a simple misdemeanor and in addition shall be liable for the 98 32 payment of the tax and any applicable penalty and interest. 98 33 2. The refund of sales and use tax paid on transportation 98 34 construction projects let by the state department of 98 35 transportation is subject to the special provisions of this 99 1 subsection. 99 2 a. A contractor awarded a contract for a transportation 99 3 construction project is considered the consumer of all 99 4 building materials, building supplies, and equipment and shall 99 5 pay sales tax to the supplier or remit consumer use tax 99 6 directly to the department. 99 7 b. The contractor is not required to file information with 99 8 the state department of transportation stating the amount of 99 9 goods, wares, or merchandise, or services rendered, furnished, 99 10 or performed and used in the performance of the contract or 99 11 the amount of sales or use tax paid. 99 12 c. The state department of transportation shall file a 99 13 refund claim based on a formula that considers the following: 99 14 (1) The quantity of material to complete the contract, and 99 15 quantities of items of work. 99 16 (2) The estimated cost of these materials included in the 99 17 items of work, and the state sales or use tax to be paid on 99 18 the tax rate in effect in section 423.2. The quantity of 99 19 materials shall be determined after each letting based on the 99 20 contract quantities of all items of work let to contract. The 99 21 quantity of individual component materials required for each 99 22 item shall be determined and maintained in a database. The 99 23 total quantities of materials shall be determined by 99 24 multiplying the quantities of component materials for each 99 25 contract item of work by the total quantities of each contract 99 26 item for each letting. Where variances exist in the cost of 99 27 materials, the lowest cost shall be used as the base cost. 99 28 d. Only the state sales or use tax is refundable. Local 99 29 option taxes paid by the contractor are not refundable. 99 30 3. A relief agency may apply to the director for refund of 99 31 the amount of sales or use tax imposed and paid upon sales to 99 32 it of any goods, wares, merchandise, or services furnished, 99 33 used for free distribution to the poor and needy. 99 34 a. The refunds may be obtained only in the following 99 35 amounts and manner and only under the following conditions: 100 1 (1) On forms furnished by the department, and filed within 100 2 the time as the director shall provide by rule, the relief 100 3 agency shall report to the department the total amount or 100 4 amounts, valued in money, expended directly or indirectly for 100 5 goods, wares, merchandise, or services furnished, used for 100 6 free distribution to the poor and needy. 100 7 (2) On these forms the relief agency shall separately list 100 8 the persons making the sales to it or to its order, together 100 9 with the dates of the sales, and the total amount so expended 100 10 by the relief agency. 100 11 (3) The relief agency must prove to the satisfaction of 100 12 the director that the person making the sales has included the 100 13 amount thereof in the computation of the sales price of such 100 14 person and that such person has paid the tax levied by this 100 15 subchapter or subchapter III, based upon such computation of 100 16 the sales price. 100 17 b. If satisfied that the foregoing conditions and 100 18 requirements have been complied with, the director shall 100 19 refund the amount claimed by the relief agency. 100 20 SUBCHAPTER III 100 21 USE TAX 100 22 Sec. 98. NEW SECTION. 423.5 IMPOSITION OF TAX. 100 23 An excise tax at the rate of five percent of the purchase 100 24 price or installed purchase price is imposed on the following: 100 25 1. The use in this state of tangible personal property as 100 26 defined in section 423.1, including aircraft subject to 100 27 registration under section 328.20, purchased for use in this 100 28 state. For the purposes of this subchapter, the furnishing or 100 29 use of the following services is also treated as the use of 100 30 tangible personal property: optional service or warranty 100 31 contracts, except residential service contracts regulated 100 32 under chapter 523C, vulcanizing, recapping, or retreading 100 33 services, engraving, photography, retouching, printing, or 100 34 binding services, and communication service when furnished or 100 35 delivered to consumers or users within this state. 101 1 2. The use of manufactured housing in this state, on the 101 2 purchase price if the manufactured housing is sold in the form 101 3 of tangible personal property or on the installed purchase 101 4 price if the manufactured housing is sold in the form of 101 5 realty. 101 6 3. The use of leased vehicles, on the amount subject to 101 7 tax as calculated pursuant to section 423.27. 101 8 4. Purchases of tangible personal property made from the 101 9 government of the United States or any of its agencies by 101 10 ultimate consumers shall be subject to the tax imposed by this 101 11 section. Services purchased from the same source or sources 101 12 shall be subject to the service tax imposed by this subchapter 101 13 and apply to the user of the services. 101 14 5. The use in this state of services enumerated in section 101 15 423.2. This tax is applicable where services are furnished in 101 16 this state or where the product or result of the service is 101 17 used in this state. 101 18 6. The excise tax is imposed upon every person using the 101 19 property within this state until the tax has been paid 101 20 directly to the county treasurer, the state department of 101 21 transportation, a retailer, or the department. This tax is 101 22 imposed on every person using the services or the product of 101 23 the services in this state until the user has paid the tax 101 24 either to an Iowa use tax permit holder or to the department. 101 25 7. For the purpose of the proper administration of the use 101 26 tax and to prevent its evasion, evidence that tangible 101 27 personal property was sold by any person for delivery in this 101 28 state shall be prima facie evidence that such tangible 101 29 personal property was sold for use in this state. 101 30 Sec. 99. NEW SECTION. 423.6 EXEMPTIONS. 101 31 The use in this state of the following tangible personal 101 32 property and services is exempted from the tax imposed by this 101 33 subchapter: 101 34 1. Tangible personal property and enumerated services, the 101 35 sales price from the sale of which are required to be included 102 1 in the measure of the sales tax, if that tax has been paid to 102 2 the department or the retailer. This exemption does not 102 3 include vehicles subject to registration or subject only to 102 4 the issuance of a certificate of title. 102 5 2. The sale of tangible personal property or the 102 6 furnishing of services in the regular course of business. 102 7 3. Property used in processing. The use of property in 102 8 processing within the meaning of this subsection shall mean 102 9 and include any of the following: 102 10 a. Any tangible personal property including containers 102 11 which it is intended shall, by means of fabrication, 102 12 compounding, manufacturing, or germination, become an integral 102 13 part of other tangible personal property intended to be sold 102 14 ultimately at retail, and containers used in the collection, 102 15 recovery, or return of empty beverage containers subject to 102 16 chapter 455C. 102 17 b. Fuel which is consumed in creating power, heat, or 102 18 steam for processing or for generating electric current. 102 19 c. Chemicals, solvents, sorbents, or reagents, which are 102 20 directly used and are consumed, dissipated, or depleted in 102 21 processing tangible personal property which is intended to be 102 22 sold ultimately at retail, and which may not become a 102 23 component or integral part of the finished product. 102 24 d. The distribution to the public of free newspapers or 102 25 shoppers guides shall be deemed a retail sale for purposes of 102 26 the processing exemption in this subsection. 102 27 4. All articles of tangible personal property brought into 102 28 the state of Iowa by a nonresident individual for the 102 29 individual's use or enjoyment while within the state. 102 30 5. Services exempt from taxation by the provisions of 102 31 section 423.3. 102 32 6. Tangible personal property or services the sales price 102 33 of which is exempt from the sales tax under section 423.3, 102 34 except subsections 39 and 73, as it relates to the sale, but 102 35 not the lease or rental, of vehicles subject to registration 103 1 or subject only to the issuance of a certificate of title and 103 2 as it relates to aircraft subject to registration under 103 3 section 328.20. 103 4 7. Advertisement and promotional material and matter, seed 103 5 catalogs, envelopes for same, and other similar material 103 6 temporarily stored in this state which are acquired outside of 103 7 Iowa and which, subsequent to being brought into this state, 103 8 are sent outside of Iowa, either singly or physically attached 103 9 to other tangible personal property sent outside of Iowa. 103 10 8. Vehicles, as defined in section 321.1, subsections 41, 103 11 64A, 71, 85, and 88, except such vehicles subject to 103 12 registration which are designed primarily for carrying 103 13 persons, when purchased for lease and actually leased to a 103 14 lessee for use outside the state of Iowa and the subsequent 103 15 sole use in Iowa is in interstate commerce or interstate 103 16 transportation. 103 17 9. Tangible personal property which, by means of 103 18 fabrication, compounding, or manufacturing, becomes an 103 19 integral part of vehicles, as defined in section 321.1, 103 20 subsections 41, 64A, 71, 85, and 88, manufactured for lease 103 21 and actually leased to a lessee for use outside the state of 103 22 Iowa and the subsequent sole use in Iowa is in interstate 103 23 commerce or interstate transportation. Vehicles subject to 103 24 registration which are designed primarily for carrying persons 103 25 are excluded from this subsection. 103 26 10. Vehicles subject to registration which are transferred 103 27 from a business or individual conducting a business within 103 28 this state as a sole proprietorship, partnership, or limited 103 29 liability company to a corporation formed by the sole 103 30 proprietorship, partnership, or limited liability company for 103 31 the purpose of continuing the business when all of the stock 103 32 of the corporation so formed is owned by the sole proprietor 103 33 and the sole proprietor's spouse, by all the partners in the 103 34 case of a partnership, or by all the members in the case of a 103 35 limited liability company. This exemption is equally 104 1 available where the vehicles subject to registration are 104 2 transferred from a corporation to a sole proprietorship, 104 3 partnership, or limited liability company formed by that 104 4 corporation for the purpose of continuing the business when 104 5 all of the incidents of ownership are owned by the same person 104 6 or persons who were stockholders of the corporation. 104 7 This exemption also applies where the vehicles subject to 104 8 registration are transferred from a corporation as part of the 104 9 liquidation of the corporation to its stockholders if within 104 10 three months of such transfer the stockholders retransfer 104 11 those vehicles subject to registration to a sole 104 12 proprietorship, partnership, or limited liability company for 104 13 the purpose of continuing the business of the corporation when 104 14 all of the incidents of ownership are owned by the same person 104 15 or persons who were stockholders of the corporation. 104 16 10A. Vehicles subject to registration which are 104 17 transferred from a corporation that is primarily engaged in 104 18 the business of leasing vehicles subject to registration to a 104 19 corporation that is primarily engaged in the business of 104 20 leasing vehicles subject to registration when the transferor 104 21 and transferee corporations are part of the same controlled 104 22 group for federal income tax purposes. 104 23 11. Vehicles registered or operated under chapter 326 and 104 24 used substantially in interstate commerce, section 423.5, 104 25 subsection 7, notwithstanding. For purposes of this 104 26 subsection, "substantially in interstate commerce" means that 104 27 a minimum of twenty-five percent of the miles operated by the 104 28 vehicle accrues in states other than Iowa. This subsection 104 29 applies only to vehicles which are registered for a gross 104 30 weight of thirteen tons or more. 104 31 For purposes of this subsection, trailers and semitrailers 104 32 registered or operated under chapter 326 are deemed to be used 104 33 substantially in interstate commerce and to be registered for 104 34 a gross weight of thirteen tons or more. 104 35 For the purposes of this subsection, if a vehicle meets the 105 1 requirement that twenty-five percent of the miles operated 105 2 accrues in states other than Iowa in each year of the first 105 3 four-year period of operation, the exemption from use tax 105 4 shall continue until the vehicle is sold or transferred. If 105 5 the vehicle is found to have not met the exemption 105 6 requirements or the exemption was revoked, the value of the 105 7 vehicle upon which the use tax shall be imposed is the book or 105 8 market value, whichever is less, at the time the exemption 105 9 requirements were not met or the exemption was revoked. 105 10 12. Mobile homes and manufactured housing the use of which 105 11 has previously been subject to the tax imposed under this 105 12 subchapter and for which that tax has been paid. 105 13 13. Mobile homes to the extent of the portion of the 105 14 purchase price of the mobile home which is not attributable to 105 15 the cost of the tangible personal property used in the 105 16 processing of the mobile home, and manufactured housing to the 105 17 extent of the purchase price or the installed purchase price 105 18 of the manufactured housing which is not attributable to the 105 19 cost of the tangible personal property used in the processing 105 20 of the manufactured housing. For purposes of this exemption, 105 21 the portion of the purchase price which is not attributable to 105 22 the cost of the tangible personal property used in the 105 23 processing of the mobile home is forty percent and the portion 105 24 of the purchase price or installed purchase price which is not 105 25 attributable to the cost of the tangible personal property 105 26 used in the processing of the manufactured housing is forty 105 27 percent. 105 28 14. Tangible personal property used or to be used as a 105 29 ship, barge, or waterborne vessel which is used or to be used 105 30 primarily in or for the transportation of property or cargo 105 31 for hire on the rivers bordering the state or as materials or 105 32 parts of such ship, barge, or waterborne vessel. 105 33 15. Vehicles subject to registration in any state when 105 34 purchased for rental or registered and titled by a motor 105 35 vehicle dealer licensed pursuant to chapter 322 for rental 106 1 use, and held for rental for a period of one hundred twenty 106 2 days or more and actually rented for periods of sixty days or 106 3 less by a person regularly engaged in the business of renting 106 4 vehicles including, but not limited to, motor vehicle dealers 106 5 licensed pursuant to chapter 322 who rent automobiles to 106 6 users, if the rental of the vehicles is subject to taxation 106 7 under chapter 423C. 106 8 16. Motor vehicles subject to registration which were 106 9 registered and titled between July 1, 1982, and July 1, 1992, 106 10 to a motor vehicle dealer licensed under chapter 322 and which 106 11 were rented to a user as defined in section 423C.2 if the 106 12 following occurred: 106 13 a. The dealer kept the vehicle on the inventory of 106 14 vehicles for sale at all times. 106 15 b. The vehicle was to be immediately taken from the user 106 16 of the vehicle when a buyer was found. 106 17 c. The user was aware of this situation. 106 18 17. Vehicles subject to registration under chapter 321, 106 19 with a gross vehicle weight rating of less than sixteen 106 20 thousand pounds, excluding motorcycles and motorized bicycles, 106 21 when purchased for lease and titled by the lessor licensed 106 22 pursuant to chapter 321F and actually leased for a period of 106 23 twelve months or more if the lease of the vehicle is subject 106 24 to taxation under section 423.27. 106 25 A lessor may maintain the exemption from use tax under this 106 26 subsection for a qualifying lease that terminates at the 106 27 conclusion or prior to the contracted expiration date, if the 106 28 lessor does not use the vehicle for any purpose other than for 106 29 lease. Once the vehicle is used by the lessor for a purpose 106 30 other than for lease, the exemption from use tax under this 106 31 subsection no longer applies and, unless there is an exemption 106 32 from the use tax, use tax is due on the fair market value of 106 33 the vehicle determined at the time the lessor uses the vehicle 106 34 for a purpose other than for lease, payable to the department. 106 35 If the lessor holds the vehicle exclusively for sale, use tax 107 1 is due and payable on the purchase price of the vehicle at the 107 2 time of purchase pursuant to this subchapter. 107 3 18. Aircraft for use in a scheduled interstate federal 107 4 aviation administration certificated air carrier operation. 107 5 19. Aircraft; tangible personal property permanently 107 6 affixed or attached as a component part of the aircraft, 107 7 including but not limited to repair or replacement materials 107 8 or parts; and all services used for aircraft repair, 107 9 remodeling, and maintenance services when such services are 107 10 performed on aircraft, aircraft engines, or aircraft component 107 11 materials or parts. For the purposes of this exemption, 107 12 "aircraft" means aircraft used in a scheduled interstate 107 13 federal aviation administration certificated air carrier 107 14 operation. 107 15 20. Tangible personal property permanently affixed or 107 16 attached as a component part of the aircraft, including but 107 17 not limited to repair or replacement materials or parts; and 107 18 all services used for aircraft repair, remodeling, and 107 19 maintenance services when such services are performed on 107 20 aircraft, aircraft engines, or aircraft component materials or 107 21 parts. For the purposes of this exemption, "aircraft" means 107 22 aircraft used in a nonscheduled interstate federal aviation 107 23 administration certificated air carrier operation operating 107 24 under 14 C.F.R., ch. 1, pt. 135. 107 25 21. Aircraft sold to an aircraft dealer who in turn rents 107 26 or leases the aircraft if all of the following apply: 107 27 a. The aircraft is kept in the inventory of the dealer for 107 28 sale at all times. 107 29 b. The dealer reserves the right to immediately take the 107 30 aircraft from the renter or lessee when a buyer is found. 107 31 c. The renter or lessee is aware that the dealer will 107 32 immediately take the aircraft when a buyer is found. 107 33 If an aircraft exempt under this subsection is used for any 107 34 purpose other than leasing or renting, or the conditions in 107 35 paragraphs "a", "b", and "c" are not continuously met, the 108 1 dealer claiming the exemption under this subsection is liable 108 2 for the tax that would have been due except for this 108 3 subsection. The tax shall be computed upon the original 108 4 purchase price. 108 5 22. The use in this state of building materials, supplies, 108 6 or equipment, the sale or use of which is not treated as a 108 7 retail sale or a sale at retail under section 423.2, 108 8 subsection 1. 108 9 23. Exempted from the purchase price of any vehicle 108 10 subject to registration is: 108 11 a. The amount of any cash rebate which is provided by a 108 12 motor vehicle manufacturer to the purchaser of the vehicle 108 13 subject to registration so long as the rebate is applied to 108 14 the purchase price of the vehicle. 108 15 b. That in transactions, except those subject to paragraph 108 16 "c", in which tangible personal property is traded toward the 108 17 purchase price of other tangible personal property the 108 18 purchase price is only that portion of the purchase price 108 19 which is payable in money to the retailer if the following 108 20 conditions are met: 108 21 (1) The tangible personal property traded to the retailer 108 22 is the type of property normally sold in the regular course of 108 23 the retailer's business. 108 24 (2) The tangible personal property traded to the retailer 108 25 is intended by the retailer to be ultimately sold at retail or 108 26 is intended to be used by the retailer or another in the 108 27 remanufacturing of a like item. 108 28 c. In a transaction between persons, neither of which is a 108 29 retailer of vehicles subject to registration, in which a 108 30 vehicle subject to registration is traded toward the purchase 108 31 price of another vehicle subject to registration, the amount 108 32 of the trade-in value allowed on the vehicle subject to 108 33 registration traded. 108 34 SUBCHAPTER IV 108 35 UNIFORM SALES AND USE TAX ADMINISTRATION ACT 109 1 Sec. 100. NEW SECTION. 423.7 TITLE. 109 2 This subchapter shall be known and may be cited as the 109 3 "Uniform Sales and Use Tax Administration Act". 109 4 Sec. 101. NEW SECTION. 423.8 LEGISLATIVE FINDING AND 109 5 INTENT. 109 6 The general assembly finds that Iowa should enter into an 109 7 agreement with one or more states to simplify and modernize 109 8 sales and use tax administration in order to substantially 109 9 reduce the burden of tax compliance for all sellers and for 109 10 all types of commerce. It is the intent of the general 109 11 assembly that entering into this agreement will lead to 109 12 simplification and modernization of the sales and use tax law 109 13 and not to the imposition of new taxes or an increase or 109 14 decrease in the existing number of exemptions, unless such a 109 15 result is unavoidable under the terms of the agreement. 109 16 Sec. 102. NEW SECTION. 423.9 AUTHORITY TO ENTER 109 17 AGREEMENT AND TO REPRESENT THE STATE. 109 18 The director is authorized and directed to enter into the 109 19 streamlined sales and use tax agreement with one or more 109 20 states to simplify and modernize sales and use tax 109 21 administration in order to substantially reduce the burden of 109 22 tax compliance for all sellers and for all types of commerce. 109 23 The director is further authorized to take other actions 109 24 reasonably required to implement the provisions set forth in 109 25 this chapter. Other actions authorized by this section 109 26 include, but are not limited to, the adoption of rules and the 109 27 joint procurement, with other member states, of goods and 109 28 services in furtherance of the cooperative agreement. 109 29 The director or the director's designee is authorized to be 109 30 a member of the governing board established pursuant to the 109 31 agreement and to represent Iowa before that body. 109 32 Sec. 103. NEW SECTION. 423.10 RELATIONSHIP TO STATE LAW. 109 33 Entry into the agreement by the director does not amend or 109 34 modify any law of this state. Implementation of any condition 109 35 of the agreement in this state, whether adopted before, at, or 110 1 after membership of this state in the agreement, shall be by 110 2 action of the general assembly. 110 3 Sec. 104. NEW SECTION. 423.11 AGREEMENT REQUIREMENTS. 110 4 The director shall not enter into the agreement unless the 110 5 agreement requires each state to abide by the following 110 6 requirements: 110 7 1. UNIFORM STATE RATE. The agreement must set 110 8 restrictions to achieve more uniform state rates through the 110 9 following: 110 10 a. Limiting the number of state rates. 110 11 b. Limiting the application of maximums on the amount of 110 12 state tax that is due on a transaction. 110 13 c. Limiting the application of thresholds on the 110 14 application of state tax. 110 15 2. UNIFORM STANDARDS. The agreement must establish 110 16 uniform standards for the following: 110 17 a. The sourcing of transactions to taxing jurisdictions. 110 18 b. The administration of exempt sales. 110 19 c. The allowances a seller can take for bad debts. 110 20 d. Sales and use tax returns and remittances. 110 21 3. UNIFORM DEFINITIONS. The agreement must require states 110 22 to develop and adopt uniform definitions of sales and use tax 110 23 terms. The definitions must enable a state to preserve its 110 24 ability to make policy choices not inconsistent with the 110 25 uniform definitions. 110 26 4. CENTRAL REGISTRATION. The agreement must provide a 110 27 central, electronic registration system that allows a seller 110 28 to register to collect and remit sales and use taxes for all 110 29 member states. 110 30 5. NO NEXUS ATTRIBUTION. The agreement must provide that 110 31 registration with the central registration system and the 110 32 collection of sales and use taxes in the member states must 110 33 not be used as a factor in determining whether the seller has 110 34 nexus with a state for any tax. 110 35 6. LOCAL SALES AND USE TAXES. The agreement must provide 111 1 for reduction of the burdens of complying with local sales and 111 2 use taxes through the following: 111 3 a. Restricting variances between the state and local tax 111 4 bases. 111 5 b. Requiring states to administer any sales and use taxes 111 6 levied by local jurisdictions within the state so that sellers 111 7 collecting and remitting these taxes must not have to register 111 8 or file returns with, remit funds to, or be subject to 111 9 independent audits from local taxing jurisdictions. 111 10 c. Restricting the frequency of changes in the local sales 111 11 and use tax rates and setting effective dates for the 111 12 application of local jurisdictional boundary changes to local 111 13 sales and use taxes. 111 14 d. Providing notice of changes in local sales and use tax 111 15 rates and of changes in the boundaries of local taxing 111 16 jurisdictions. 111 17 7. MONETARY ALLOWANCES. The agreement must outline any 111 18 monetary allowances that are to be provided by the states to 111 19 sellers or certified service providers. 111 20 8. STATE COMPLIANCE. The agreement must require each 111 21 state to certify compliance with the terms of the agreement 111 22 prior to joining and to maintain compliance, under the laws of 111 23 the member state, with all provisions of the agreement while a 111 24 member. 111 25 9. CONSUMER PRIVACY. The agreement must require each 111 26 state to adopt a uniform policy for certified service 111 27 providers that protects the privacy of consumers and maintains 111 28 the confidentiality of tax information. 111 29 10. ADVISORY COUNCILS. The agreement must provide for the 111 30 appointment of an advisory council of private sector 111 31 representatives and an advisory council of nonmember state 111 32 representatives to consult with in the administration of the 111 33 agreement. 111 34 Sec. 105. NEW SECTION. 423.12 LIMITED BINDING AND 111 35 BENEFICIAL EFFECT. 112 1 1. The agreement binds and inures only to the benefit of 112 2 Iowa and the other member states. A person, other than a 112 3 member state, is not an intended beneficiary of the agreement. 112 4 Any benefit to a person other than a member state is 112 5 established by the law of Iowa and not by the terms of the 112 6 agreement. 112 7 2. A person shall not have any cause of action or defense 112 8 under the agreement or by virtue of this state's entry into 112 9 the agreement. A person may not challenge, in any action 112 10 brought under any provision of law, any action or inaction by 112 11 any department, agency, or other instrumentality of this 112 12 state, or any political subdivision of this state on the 112 13 ground that the action or inaction is inconsistent with the 112 14 agreement. 112 15 3. A law of this state, or the application of it, shall 112 16 not be declared invalid as to any such person or circumstance 112 17 on the ground that the provision or application is 112 18 inconsistent with the agreement. 112 19 SUBCHAPTER V 112 20 SALES AND USE TAX ACT – ADMINISTRATION OF 112 21 RETAILERS NOT REGISTERED UNDER THE AGREEMENT AND OF 112 22 CONSUMERS OBLIGATED TO PAY USE TAX DIRECTLY 112 23 Sec. 106. NEW SECTION. 423.13 PURPOSE OF THIS 112 24 SUBCHAPTER. 112 25 The purpose of this subchapter is to provide for the 112 26 administration and collection of sales or use tax on the part 112 27 of retailers who are not registered under the agreement and 112 28 for the collection of use tax on the part of consumers who are 112 29 obligated to pay that tax directly. Any application of the 112 30 sections of this subchapter to retailers registered under the 112 31 agreement is only by way of incorporation by reference into 112 32 subchapter VI of this chapter. 112 33 Sec. 107. NEW SECTION. 423.14 SALES AND USE TAX 112 34 COLLECTION. 112 35 1. a. Sales tax, other than that described in paragraph 113 1 "c", shall be collected by sellers who are retailers or by 113 2 their agents. Sellers or their agents shall, as far as 113 3 practicable, add the sales tax, or the average equivalent 113 4 thereof, to the sales price or charge, less trade-ins allowed 113 5 and taken and when added such tax shall constitute a part of 113 6 the sales price or charge, shall be a debt from consumer or 113 7 user to seller or agent until paid, and shall be recoverable 113 8 at law in the same manner as other debts. 113 9 b. In computing the tax to be collected as the result of 113 10 any transaction, the tax computation must be carried to the 113 11 third decimal place. Whenever the third decimal place is 113 12 greater than four, the tax must be rounded up to the next 113 13 whole cent; whenever the third decimal place is four or less, 113 14 the tax must be rounded downward to a whole cent. Sellers may 113 15 elect to compute the tax due on transactions on an item or 113 16 invoice basis. Sellers are not required to use a bracket 113 17 system. 113 18 c. The tax imposed upon those sales of motor vehicle fuel 113 19 which are subject to tax and refund under chapter 452A shall 113 20 be collected by the state treasurer by way of deduction from 113 21 refunds otherwise allowable under that chapter. The treasurer 113 22 shall transfer the amount of such deductions from the motor 113 23 vehicle fuel tax fund to the special tax fund. 113 24 2. Use tax shall be collected in the following manner: 113 25 a. The tax upon the use of all vehicles subject to 113 26 registration or subject only to the issuance of a certificate 113 27 of title or the tax upon the use of manufactured housing shall 113 28 be collected by the county treasurer or the state department 113 29 of transportation pursuant to sections 423.26 and 423.27. The 113 30 county treasurer shall retain one dollar from each tax payment 113 31 collected, to be credited to the county general fund. 113 32 b. The tax upon the use of all tangible personal property 113 33 other than that enumerated in paragraph "a", which is sold by 113 34 a seller who is a retailer maintaining a place of business in 113 35 this state, or by such other retailer or agent as the director 114 1 shall authorize pursuant to section 423.30, shall be collected 114 2 by the retailer or agent and remitted to the department, 114 3 pursuant to the provisions of paragraph "e", and sections 114 4 423.24, 423.29, 423.30, 423.32, and 423.33. 114 5 c. The tax upon the use of all tangible personal property 114 6 not paid pursuant to paragraphs "a" and "b" shall be paid to 114 7 the department directly by any person using the property 114 8 within this state, pursuant to the provisions of section 114 9 423.34. 114 10 d. The tax imposed on the use of services enumerated in 114 11 section 423.5 shall be collected, remitted, and paid to the 114 12 department of revenue and finance in the same manner as use 114 13 tax on tangible personal property is collected, remitted, and 114 14 paid under this subchapter. 114 15 e. All persons obligated by paragraph "a", "b", or "d", to 114 16 collect use tax shall, as far as practicable, add that tax, or 114 17 the average equivalent thereof, to the purchase price, less 114 18 trade-ins allowed and taken, and when added the tax shall 114 19 constitute a part of the purchase price. Use tax which this 114 20 section requires to be collected by a retailer and any tax 114 21 collected pursuant to this section by a retailer shall 114 22 constitute a debt owed by the retailer to this state. Tax 114 23 which must be paid directly to the department, pursuant to 114 24 paragraph "c" or "d", is to be computed and added by the 114 25 consumer or user to the purchase price in the same manner as 114 26 this paragraph requires a seller to compute and add the tax. 114 27 The tax shall be a debt from the consumer or user to the 114 28 department until paid, and shall be recoverable at law in the 114 29 same manner as other debts. 114 30 Sec. 108. NEW SECTION. 423.15 GENERAL SOURCING RULES. 114 31 All sellers obligated to collect Iowa sales or use tax 114 32 shall use the standards set out in this section to determine 114 33 where sales of products occur, excluding sales enumerated in 114 34 section 423.16. These provisions apply regardless of the 114 35 characterization of a product as tangible personal property, a 115 1 digital good, or a service, excluding telecommunications 115 2 services. This section only applies to determine a seller's 115 3 obligation to pay or collect and remit a sales or use tax with 115 4 respect to the seller's sale of a product. This section does 115 5 not affect the obligation of a purchaser or lessee to remit 115 6 tax on the use of the product to the taxing jurisdictions in 115 7 which the use occurs. A seller's obligation to collect Iowa 115 8 sales tax or Iowa use tax only occurs if the sale is sourced 115 9 to this state. The application of whether Iowa sales tax 115 10 applies to sales sourced to Iowa depends upon where the sale 115 11 is consummated by delivery. 115 12 1. Sales, excluding leases or rentals other than leases or 115 13 rentals set out in subsection 2, of products shall be sourced 115 14 as follows: 115 15 a. When the product is received by the purchaser at a 115 16 business location of the seller, the sale is sourced to that 115 17 business location. 115 18 b. When the product is not received by the purchaser at a 115 19 business location of the seller, the sale is sourced to the 115 20 location where receipt by the purchaser or the purchaser's 115 21 donee, designated as such by the purchaser, occurs, including 115 22 the location indicated by instructions for delivery to the 115 23 purchaser or donee, known to the seller. 115 24 c. When paragraphs "a" and "b" do not apply, the sale is 115 25 sourced to the location indicated by an address for the 115 26 purchaser that is available from the business records of the 115 27 seller that are maintained in the ordinary course of the 115 28 seller's business when use of this address does not constitute 115 29 bad faith. 115 30 d. When paragraphs "a", "b", and "c" do not apply, the 115 31 sale is sourced to the location indicated by an address for 115 32 the purchaser obtained during the consummation of the sale, 115 33 including the address of a purchaser's payment instrument, if 115 34 no other address is available, when use of this address does 115 35 not constitute bad faith. 116 1 e. When paragraphs "a", "b", "c", and "d" do not apply, 116 2 including the circumstance where the seller is without 116 3 sufficient information to apply the previous rules, then the 116 4 location will be determined by the address from which tangible 116 5 personal property was shipped, from which the digital good or 116 6 the computer software delivered electronically was first 116 7 available for transmission by the seller, or from which the 116 8 service was provided disregarding for these purposes any 116 9 location that merely provided the digital transfer of the 116 10 product sold. 116 11 2. The lease or rental of tangible personal property, 116 12 other than property identified in subsection 3 or section 116 13 423.16, shall be sourced as follows: 116 14 a. For a lease or rental that requires recurring periodic 116 15 payments, the first periodic payment is sourced the same as a 116 16 retail sale in accordance with the provisions of subsection 1. 116 17 Periodic payments made subsequent to the first payment are 116 18 sourced to the primary property location for each period 116 19 covered by the payment. The primary property location shall 116 20 be as indicated by an address for the property provided by the 116 21 lessee that is available to the lessor from its records 116 22 maintained in the ordinary course of business, when use of 116 23 this address does not constitute bad faith. The property 116 24 location shall not be altered by intermittent use at different 116 25 locations, such as use of business property that accompanies 116 26 employees on business trips and service calls. 116 27 b. For a lease or rental that does not require recurring 116 28 periodic payments, the payment is sourced the same as a retail 116 29 sale in accordance with the provisions of subsection 1. 116 30 c. This subsection does not affect the imposition or 116 31 computation of sales or use tax on leases or rentals based on 116 32 a lump sum or accelerated basis, or on the acquisition of 116 33 property for lease. 116 34 3. The retail sale, including lease or rental, of 116 35 transportation equipment shall be sourced the same as a retail 117 1 sale in accordance with the provisions of subsection 1, 117 2 notwithstanding the exclusion of lease or rental in that 117 3 subsection. "Transportation equipment" means any of the 117 4 following: 117 5 a. Locomotives or railcars that are utilized for the 117 6 carriage of persons or property in interstate commerce. 117 7 b. Trucks and truck-tractors with a gross vehicle weight 117 8 rating of ten thousand one pounds or greater, trailers, 117 9 semitrailers, or passenger buses that meet both of the 117 10 following requirements: 117 11 (1) Are registered through the international registration 117 12 plan. 117 13 (2) Are operated under authority of a carrier authorized 117 14 and certificated by the United States department of 117 15 transportation or another federal authority to engage in the 117 16 carriage of persons or property in interstate commerce. 117 17 c. Aircraft that are operated by air carriers authorized 117 18 and certificated by the United States department of 117 19 transportation or another federal or a foreign authority to 117 20 engage in the carriage of persons or property in interstate or 117 21 foreign commerce. 117 22 d. Containers designed for use on and component parts 117 23 attached or secured on the items set forth in paragraphs "a" 117 24 through "c". 117 25 Sec. 109. NEW SECTION. 423.16 TRANSACTIONS TO WHICH THE 117 26 GENERAL SOURCING RULES DO NOT APPLY. 117 27 Section 423.15 does not apply to sales or use taxes levied 117 28 on the following: 117 29 1. The retail sale or transfer of watercraft, modular 117 30 homes, manufactured housing, or mobile homes, and the retail 117 31 sale, excluding lease or rental, of motor vehicles, trailers, 117 32 semitrailers, or aircraft that do not qualify as 117 33 transportation equipment, as defined in section 423.15, 117 34 subsection 3. 117 35 2. The lease or rental of motor vehicles, trailers, 118 1 semitrailers, or aircraft that do not qualify as 118 2 transportation equipment, as defined in section 423.15, 118 3 subsection 3, which shall be sourced in accordance with 118 4 section 423.17. 118 5 3. Transactions to which the multiple points use exemption 118 6 is applicable, which shall be sourced in accordance with 118 7 section 423.18. 118 8 4. Transactions to which direct mail sourcing is 118 9 applicable, which shall be sourced in accordance with section 118 10 423.19. 118 11 5. Telecommunications services, as set out in section 118 12 423.20, which shall be sourced in accordance with section 118 13 423.20, subsection 2. 118 14 Sec. 110. NEW SECTION. 423.17 SOURCING RULES FOR VARIOUS 118 15 TYPES OF LEASED OR RENTED EQUIPMENT WHICH IS NOT 118 16 TRANSPORTATION EQUIPMENT. 118 17 The lease or rental of motor vehicles, trailers, 118 18 semitrailers, or aircraft that do not qualify as 118 19 transportation equipment, as defined in section 423.15, 118 20 subsection 3, shall be sourced as follows: 118 21 1. For a lease or rental that requires recurring periodic 118 22 payments, each periodic payment is sourced to the primary 118 23 property location. The primary property location shall be as 118 24 indicated by an address for the property provided by the 118 25 lessee that is available to the lessor from its records 118 26 maintained in the ordinary course of business, when use of 118 27 this address does not constitute bad faith. This location 118 28 shall not be altered by intermittent use at different 118 29 locations. 118 30 2. For a lease or rental that does not require recurring 118 31 periodic payments, the payment is sourced the same as a retail 118 32 sale in accordance with the provisions of section 423.15, 118 33 subsection 1. 118 34 3. This section does not affect the imposition or 118 35 computation of sales or use tax on leases or rentals based on 119 1 a lump sum or accelerated basis, or on the acquisition of 119 2 property for lease. 119 3 Sec. 111. NEW SECTION. 423.18 MULTIPLE POINTS OF USE 119 4 EXEMPTION FORMS. 119 5 A business purchaser that is not a holder of a direct pay 119 6 tax permit pursuant to section 423.36 that knows at the time 119 7 of its purchase of a digital good, computer software delivered 119 8 electronically, or a service that the digital good, computer 119 9 software delivered electronically, or service will be 119 10 concurrently available for use in more than one jurisdiction 119 11 shall deliver to the seller in conjunction with its purchase a 119 12 "multiple points of use" or "MPU" exemption form disclosing 119 13 this fact. 119 14 1. Upon receipt of the MPU exemption form, the seller is 119 15 relieved of all obligation to collect, pay, or remit the 119 16 applicable tax and the purchaser shall be obligated to 119 17 collect, pay, or remit the applicable tax on a direct pay 119 18 basis. 119 19 2. A purchaser delivering the MPU exemption form may use 119 20 any reasonable, but consistent and uniform, method of 119 21 apportionment that is supported by the purchaser's business 119 22 records as they exist at the time of the consummation of the 119 23 sale. 119 24 3. The MPU exemption form will remain in effect for all 119 25 future sales by the seller to the purchaser except as to the 119 26 subsequent sale's specific apportionment that is governed by 119 27 the principle of subsection 2 and the facts existing at the 119 28 time of the sale until it is revoked in writing. 119 29 4. A holder of a direct pay tax permit under section 119 30 423.36 shall not be required to deliver an MPU exemption form 119 31 to the seller. A direct pay tax permit holder shall follow 119 32 the provisions of subsection 2 in apportioning the tax due on 119 33 a digital good, computer software delivered electronically, or 119 34 service that will be concurrently available for use in more 119 35 than one jurisdiction. 120 1 Sec. 112. NEW SECTION. 423.19 DIRECT MAIL SOURCING. 120 2 1. Notwithstanding section 423.15, a purchaser of direct 120 3 mail that is not a holder of a direct pay tax permit pursuant 120 4 to section 423.36 shall provide to the seller in conjunction 120 5 with the purchase either a direct mail form or information to 120 6 show the jurisdictions to which the direct mail is delivered 120 7 to recipients. 120 8 a. Upon receipt of the direct mail form, the seller is 120 9 relieved of all obligations to collect, pay, or remit the 120 10 applicable tax and the purchaser is obligated to pay or remit 120 11 the applicable tax on a direct pay basis. A direct mail form 120 12 shall remain in effect for all future sales of direct mail by 120 13 the seller to the purchaser until it is revoked in writing. 120 14 b. Upon receipt of information from the purchaser showing 120 15 the jurisdictions to which the direct mail is delivered to 120 16 recipients, the seller shall collect the tax according to the 120 17 delivery information provided by the purchaser. In the 120 18 absence of bad faith, the seller is relieved of any further 120 19 obligation to collect tax on any transaction where the seller 120 20 has collected tax pursuant to the delivery information 120 21 provided by the purchaser. 120 22 2. If the purchaser of direct mail does not have a direct 120 23 pay tax permit and does not provide the seller with either a 120 24 direct mail form or delivery information, as required by 120 25 subsection 1, the seller shall collect the tax according to 120 26 section 423.15, subsection 1, paragraph "e". Nothing in this 120 27 subsection shall limit a purchaser's obligation for sales or 120 28 use tax to any state to which the direct mail is delivered. 120 29 3. If a purchaser of direct mail provides the seller with 120 30 documentation of direct pay authority, the purchaser shall not 120 31 be required to provide a direct mail form or delivery 120 32 information to the seller. 120 33 Sec. 113. NEW SECTION. 423.20 TELECOMMUNICATIONS SERVICE 120 34 SOURCING. 120 35 1. As used in this section: 121 1 a. "Air-to-ground radiotelephone service" means a radio 121 2 service, as that term is used in 47 C.F.R. } 22.99, in which 121 3 common carriers are authorized to offer and provide radio 121 4 telecommunications service for hire to subscribers in 121 5 aircraft. 121 6 b. "Call-by-call basis" means any method of charging for 121 7 the telecommunications service where the price is measured by 121 8 individual calls. 121 9 c. "Communications channel" means a physical or virtual 121 10 path of communications over which signals are transmitted 121 11 between or among customer channel termination points. 121 12 d. "Customer" means the person or entity that contracts 121 13 with the seller of the telecommunications service. If the end 121 14 user of the telecommunications service is not the contracting 121 15 party, the end user of the telecommunications service is the 121 16 customer of the telecommunications service, but this sentence 121 17 only applies for the purpose of sourcing sales of the 121 18 telecommunications service under this section. "Customer" 121 19 does not include a reseller of a telecommunications service or 121 20 for mobile telecommunications service of a serving carrier 121 21 under an agreement to serve the customer outside the home 121 22 service provider's licensed service area. 121 23 e. "Customer channel termination point" means the location 121 24 where the customer either inputs or receives the 121 25 communications. 121 26 f. "End user" means the person who utilizes the 121 27 telecommunications service. In the case of an entity, "end 121 28 user" means the individual who utilizes the service on behalf 121 29 of the entity. 121 30 g. "Home service provider" means the same as that term is 121 31 defined in the federal Mobile Telecommunications Sourcing Act, 121 32 Pub. L. No. 106-252, 4 U.S.C. } 124(5). 121 33 h. "Mobile telecommunications service" means the same as 121 34 that term is defined in federal Mobile Telecommunications 121 35 Sourcing Act, Pub. L. No. 106-252, 4 U.S.C. } 124(7). 122 1 i. "Place of primary use" means the street address 122 2 representative of where the customer's use of the 122 3 telecommunications service primarily occurs, which must be the 122 4 residential street address or the primary business street 122 5 address of the customer. In the case of mobile 122 6 telecommunications service, "place of primary use" must be 122 7 within the licensed service area of the home service provider. 122 8 j. "Postpaid calling service" means the telecommunications 122 9 service obtained by making a payment on a call-by-call basis 122 10 either through the use of a credit card or payment mechanism 122 11 such as a bank card, travel card, credit card, or debit card, 122 12 or by charge made to a telephone number which is not 122 13 associated with the origination or termination of the 122 14 telecommunications service. A "postpaid calling service" 122 15 includes a telecommunications service that would be a prepaid 122 16 calling service except it is not exclusively a 122 17 telecommunications service. 122 18 k. "Prepaid calling service" means the right to access 122 19 exclusively telecommunications services, which must be paid 122 20 for in advance and which enables the origination of calls 122 21 using an access number or authorization code, whether manually 122 22 or electronically dialed, and that is sold in predetermined 122 23 units or dollars of which the amount declines with use in a 122 24 known amount. 122 25 l. "Private communication service" means a 122 26 telecommunications service that entitles the customer to 122 27 exclusive or priority use of a communications channel or group 122 28 of channels between or among termination points, regardless of 122 29 the manner in which such channel or channels are connected, 122 30 and includes switching capacity, extension lines, stations, 122 31 and any other associated services that are provided in 122 32 connection with the use of such channel or channels. 122 33 m. "Service address" means one of the following: 122 34 (1) The location of the telecommunications equipment to 122 35 which a customer's call is charged and from which the call 123 1 originates or terminates, regardless of where the call is 123 2 billed or paid. 123 3 (2) If the location in subparagraph (1) is not known, 123 4 "service address" means the origination point of the signal of 123 5 the telecommunications service first identified by either the 123 6 seller's telecommunications system or in information received 123 7 by the seller from its service provider, where the system used 123 8 to transport such signals is not that of the seller. 123 9 (3) If the locations in subparagraphs (1) and (2) are not 123 10 known, the "service address" means the location of the 123 11 customer's place of primary use. 123 12 2. Sales of telecommunications services shall be sourced 123 13 in the following manner: 123 14 a. Except for the defined telecommunications services in 123 15 paragraph "c", the sale of telecommunications services sold on 123 16 a call-by-call basis shall be sourced to one of the following: 123 17 (1) Each level of taxing jurisdiction where the call 123 18 originates and terminates in that jurisdiction. 123 19 (2) Each level of taxing jurisdiction where the call 123 20 either originates or terminates and in which the service 123 21 address is also located. 123 22 b. Except for the defined telecommunications services in 123 23 paragraph "c", a sale of telecommunications services sold on a 123 24 basis other than a call-by-call basis is sourced to the 123 25 customer's place of primary use. 123 26 c. Sale of the following telecommunications services shall 123 27 be sourced to each level of taxing jurisdiction as follows: 123 28 (1) A sale of mobile telecommunications services other 123 29 than air-to-ground radiotelephone service or prepaid calling 123 30 service is sourced to the customer's place of primary use as 123 31 required by the federal Mobile Telecommunications Sourcing 123 32 Act. 123 33 (2) A sale of postpaid calling service is sourced to the 123 34 origination point of the telecommunications signal as first 123 35 identified by either of the following: 124 1 (a) The seller's telecommunications system. 124 2 (b) Information received by the seller from its service 124 3 provider, where the system used to transport such signals is 124 4 not that of the seller. 124 5 (3) A sale of prepaid calling service is sourced in 124 6 accordance with section 423.15. However, in the case of a 124 7 sale of mobile telecommunications services that is a prepaid 124 8 telecommunications service, the rule provided in section 124 9 423.15, subsection 1, paragraph "e", shall include as an 124 10 option the location associated with the mobile telephone 124 11 number. 124 12 (4) A sale of a private telecommunications service is 124 13 sourced as follows: 124 14 (a) Service for a separate charge related to a customer 124 15 channel termination point is sourced to each level of 124 16 jurisdiction in which such customer channel termination point 124 17 is located. 124 18 (b) Service where all customer termination points are 124 19 located entirely within one jurisdiction or level of 124 20 jurisdiction is sourced in such jurisdiction in which the 124 21 customer channel termination points are located. 124 22 (c) Service for segments of a channel between two customer 124 23 channel termination points located in different jurisdictions 124 24 and which segments of a channel are separately charged is 124 25 sourced fifty percent in each level of jurisdiction in which 124 26 the customer channel termination points are located. 124 27 (d) Service for segments of a channel located in more than 124 28 one jurisdiction or levels of jurisdiction and which segments 124 29 are not separately billed is sourced in each jurisdiction 124 30 based on the percentage determined by dividing the number of 124 31 customer channel termination points in such jurisdiction by 124 32 the total number of customer channel termination points. 124 33 Sec. 114. NEW SECTION. 423.21 BAD DEBT DEDUCTIONS. 124 34 1. For the purposes of this section, "bad debt" means an 124 35 amount properly calculated pursuant to section 166 of the 125 1 Internal Revenue Code then adjusted to exclude financing 125 2 charges or interest, sales or use taxes charged on the 125 3 purchase price, uncollectible amounts on property that remain 125 4 in the possession of the seller until the full purchase price 125 5 is paid, expenses incurred in attempting to collect any debt, 125 6 and repossessed property. 125 7 2. In computing the amount of tax due, a seller may deduct 125 8 bad debts from the total amount upon which the tax is 125 9 calculated for any return. Any deduction taken or refund paid 125 10 which is attributed to bad debts shall not include interest. 125 11 3. A seller may deduct bad debts on the return for the 125 12 period during which the bad debt is written off as 125 13 uncollectible in the seller's books and records and is 125 14 eligible to be deducted for federal income tax purposes. For 125 15 purposes of this subsection, a seller who is not required to 125 16 file federal income tax returns may deduct a bad debt on a 125 17 return filed for the period in which the bad debt is written 125 18 off as uncollectible in the seller's books and records and 125 19 would be eligible for a bad debt deduction for federal income 125 20 tax purposes if the seller were required to file a federal 125 21 income tax return. 125 22 4. If a deduction is taken for a bad debt and the seller 125 23 subsequently collects the debt in whole or in part, the tax on 125 24 the amount so collected must be paid and reported on the 125 25 return filed for the period in which the collection is made. 125 26 5. A seller may obtain a refund of tax on any amount of 125 27 bad debt that exceeds the amount of taxable sales within the 125 28 period allowed for refund claims by section 423.47. However, 125 29 the period allowed for refund claims shall be measured from 125 30 the due date of the return on which the bad debt could first 125 31 be claimed. 125 32 6. For the purposes of computing a bad debt deduction or 125 33 reporting a payment received on a previously claimed bad debt, 125 34 any payments made on a debt or account shall be applied first 125 35 to the price of the property or service and tax thereon, 126 1 proportionally, and secondly to interest, service charges, and 126 2 any other charges. 126 3 Sec. 115. NEW SECTION. 423.22 TAXATION IN ANOTHER STATE. 126 4 If any person who causes tangible personal property to be 126 5 brought into this state or who uses in this state services 126 6 enumerated in section 423.2 has already paid a tax in another 126 7 state in respect to the sale or use of the property or the 126 8 performance of the service, or an occupation tax in respect to 126 9 the property or service, in an amount less than the tax 126 10 imposed by subchapter II or III, the provisions of those 126 11 subchapters shall apply, but at a rate measured by the 126 12 difference only between the rate fixed by subchapter II or III 126 13 and the rate by which the previous tax on the sale or use, or 126 14 the occupation tax, was computed. If the tax imposed and paid 126 15 in the other state is equal to or more than the tax imposed by 126 16 those subchapters, then a tax is not due in this state on the 126 17 personal property or service. 126 18 Sec. 116. NEW SECTION. 423.23 SELLERS' AGREEMENTS. 126 19 Agreements between competing sellers, or the adoption of 126 20 appropriate rules and regulations by organizations or 126 21 associations of sellers to provide uniform methods for adding 126 22 sales or use tax or the average equivalent thereof, and which 126 23 do not involve price-fixing agreements otherwise unlawful, are 126 24 expressly authorized and shall be held not in violation of 126 25 chapter 553 or other antitrust laws of this state. The 126 26 director shall cooperate with sellers, organizations, or 126 27 associations in formulating agreements and rules. 126 28 Sec. 117. NEW SECTION. 423.24 ABSORBING TAX PROHIBITED. 126 29 A seller shall not advertise or hold out or state to the 126 30 public or to any purchaser, consumer, or user, directly or 126 31 indirectly, that the taxes or any parts thereof imposed by 126 32 subchapter II or III will be assumed or absorbed by the seller 126 33 or the taxes will not be added to the sales price of the 126 34 property sold, or if added that the taxes or any part thereof 126 35 will be refunded. Any person violating any of the provisions 127 1 of this section within this state is guilty of a simple 127 2 misdemeanor. 127 3 Sec. 118. NEW SECTION. 423.25 DIRECTOR'S POWER TO ADOPT 127 4 RULES. 127 5 The director shall have the power to adopt rules for adding 127 6 the taxes imposed by subchapters II and III, or the average 127 7 equivalents thereof, by providing different methods applying 127 8 uniformly to retailers within the same general classification 127 9 for the purpose of enabling the retailers to add and collect, 127 10 as far as practicable, the amounts of those taxes. 127 11 Sec. 119. NEW SECTION. 423.26 VEHICLES SUBJECT TO 127 12 REGISTRATION OR ONLY TO THE ISSUANCE OF TITLE – MANUFACTURED 127 13 HOUSING. 127 14 The use tax imposed upon the use of vehicles subject to 127 15 registration or subject only to the issuance of a certificate 127 16 of title or imposed upon the use of manufactured housing shall 127 17 be paid by the owner of the vehicle or of the manufactured 127 18 housing to the county treasurer or the state department of 127 19 transportation from whom the registration receipt or 127 20 certificate of title is obtained. A registration receipt for 127 21 a vehicle subject to registration or certificate of title 127 22 shall not be issued until the tax has been paid. The county 127 23 treasurer or the state department of transportation shall 127 24 require every applicant for a registration receipt for a 127 25 vehicle subject to registration or certificate of title to 127 26 supply information as the county treasurer or the director 127 27 deems necessary as to the time of purchase, the purchase 127 28 price, installed purchase price, and other information 127 29 relative to the purchase of the vehicle or manufactured 127 30 housing. On or before the tenth day of each month, the county 127 31 treasurer or the state department of transportation shall 127 32 remit to the department the amount of the taxes collected 127 33 during the preceding month. 127 34 A person who willfully makes a false statement in regard to 127 35 the purchase price of a vehicle subject to taxation under this 128 1 section is guilty of a fraudulent practice. A person who 128 2 willfully makes a false statement in regard to the purchase 128 3 price of such a vehicle with the intent to evade the payment 128 4 of tax shall be assessed a penalty of seventy-five percent of 128 5 the amount of tax unpaid and required to be paid on the actual 128 6 purchase price less trade-in allowance. 128 7 Sec. 120. NEW SECTION. 423.27 MOTOR VEHICLE LEASE TAX. 128 8 1. The use tax imposed upon the use of leased vehicles 128 9 subject to registration under chapter 321, with gross vehicle 128 10 weight ratings of less than sixteen thousand pounds, excluding 128 11 motorcycles and motorized bicycles, which are leased by a 128 12 lessor licensed pursuant to chapter 321F for a period of 128 13 twelve months or more shall be paid by the owner of the 128 14 vehicle to the county treasurer or state department of 128 15 transportation from whom the registration receipt or 128 16 certificate of title is obtained. A registration receipt for 128 17 a vehicle subject to registration or issuance of a certificate 128 18 of title shall not be issued until the tax is paid in the 128 19 initial instance. Tax on the lease transaction that does not 128 20 require titling or registration of the vehicle shall be 128 21 remitted to the department. Tax and the reporting of tax due 128 22 to the department shall be remitted on or before fifteen days 128 23 from the last day of the month that the vehicle lease tax 128 24 becomes due. Failure to timely report or remit any of the tax 128 25 when due shall result in a penalty and interest being imposed 128 26 on the tax due pursuant to section 423.40, subsection 1, and 128 27 section 423.42, subsection 1. 128 28 2. The amount subject to tax shall be computed on each 128 29 separate lease transaction by taking the total of the lease 128 30 payments, plus the down payment, and excluding all of the 128 31 following: 128 32 a. Title fee. 128 33 b. Registration fees. 128 34 c. Vehicle lease tax pursuant to this section. 128 35 d. Federal excise taxes attributable to the sale of the 129 1 vehicle to the owner or to the lease of the vehicle by the 129 2 owner. 129 3 e. Optional service or warranty contracts subject to tax 129 4 pursuant to section 423.2, subsection 1. 129 5 f. Insurance. 129 6 g. Manufacturer's rebate. 129 7 h. Refundable deposit. 129 8 i. Finance charges, if any, on items listed in paragraphs 129 9 "a" through "h". 129 10 If any or all of the items in paragraphs "a" through "i" 129 11 are excluded from the taxable lease price, the owner shall 129 12 maintain adequate records of the amounts of those items. If 129 13 the parties to a lease enter into an agreement providing that 129 14 the tax imposed under this statute is to be paid by the lessee 129 15 or included in the monthly lease payments to be paid by the 129 16 lessee, the total cost of the tax shall not be included in the 129 17 computation of lease price for the purpose of taxation under 129 18 this section. The county treasurer, the state department of 129 19 transportation, or the department of revenue and finance shall 129 20 require every applicant for a registration receipt for a 129 21 vehicle subject to tax under this section to supply 129 22 information as the county treasurer or director deems 129 23 necessary as to the date of the lease transaction, the lease 129 24 price, and other information relative to the lease of the 129 25 vehicle. 129 26 3. On or before the tenth day of each month, the county 129 27 treasurer or the state department of transportation shall 129 28 remit to the department the amount of the taxes collected 129 29 during the preceding month. 129 30 4. If the lease is terminated prior to the termination 129 31 date contained in the lease agreement, no refund shall be 129 32 allowed for tax previously paid under this section, except as 129 33 provided in section 322G.4. 129 34 Sec. 121. NEW SECTION. 423.28 SALES TAX REPORT – 129 35 DEDUCTION. 130 1 Motor vehicle or trailer dealers, in making their reports 130 2 and returns to the department for the purpose of paying the 130 3 sales tax, shall be permitted to deduct all sales prices from 130 4 retail sales of vehicles subject to registration or subject 130 5 only to the issuance of a certificate of title. Sales prices 130 6 from sales of vehicles subject to registration or subject only 130 7 to the issuance of a certificate of title are exempted from 130 8 the sales tax, but, if required by the director, the sales 130 9 prices shall be included in the returns made by motor vehicle 130 10 or trailer dealers under subchapter II, and proper deductions 130 11 taken pursuant to this section. 130 12 Sec. 122. NEW SECTION. 423.29 COLLECTIONS BY SELLERS. 130 13 Every seller who is a retailer and who is making taxable 130 14 sales of tangible personal property in Iowa shall, at the time 130 15 of selling the property, collect the sales tax. Every seller 130 16 who is a retailer maintaining a place of business in this 130 17 state and selling tangible personal property for use in Iowa 130 18 shall, at the time of making the sale, whether within or 130 19 without the state, collect the use tax. Sellers required to 130 20 collect sales or use tax shall give to any purchaser a receipt 130 21 for the tax collected in the manner and form prescribed by the 130 22 director. 130 23 Every seller who is a retailer furnishing taxable services 130 24 in Iowa and every seller who is a retailer maintaining a place 130 25 of business in this state and furnishing taxable services in 130 26 Iowa or services outside Iowa if the product or result of the 130 27 service is used in Iowa shall be subject to the provisions of 130 28 the preceding paragraph. 130 29 Sec. 123. NEW SECTION. 423.30 FOREIGN SELLERS NOT 130 30 REGISTERED UNDER THE AGREEMENT. 130 31 The director may, upon application, authorize the 130 32 collection of the use tax by any seller who is a retailer not 130 33 maintaining a place of business within this state and not 130 34 registered under the agreement, who, to the satisfaction of 130 35 the director, furnishes adequate security to ensure collection 131 1 and payment of the tax. Such sellers shall be issued, without 131 2 charge, permits to collect tax subject to any regulations 131 3 which the director shall prescribe. When so authorized, it 131 4 shall be the duty of foreign sellers to collect the tax upon 131 5 all tangible personal property sold, to the retailer's 131 6 knowledge, for use within this state, in the same manner and 131 7 subject to the same requirements as a retailer maintaining a 131 8 place of business within this state. The authority and permit 131 9 may be canceled when, at any time, the director considers the 131 10 security inadequate, or that tax can more effectively be 131 11 collected from the person using property in this state. 131 12 The discretionary power granted in this section is extended 131 13 to apply in the case of foreign retailers furnishing services 131 14 enumerated in section 423.2. 131 15 Sec. 124. NEW SECTION. 423.31 FILING OF SALES TAX 131 16 RETURNS AND PAYMENT OF SALES TAX. 131 17 1. Each person subject to this section and section 423.36 131 18 and in accordance with the provisions of this section and 131 19 section 423.36 shall, on or before the last day of the month 131 20 following the close of each calendar quarter during which such 131 21 person is or has become or ceased being subject to the 131 22 provisions of this section and section 423.36, make, sign, and 131 23 file a return for the calendar quarter in the form as may be 131 24 required. Returns shall show information relating to sales 131 25 prices including goods, wares, and services converted to the 131 26 use of such person, the amounts of sales prices excluded and 131 27 exempt from the tax, the amounts of sales prices subject to 131 28 tax, a calculation of tax due, and any other information for 131 29 the period covered by the return as may be required. Returns 131 30 shall be signed by the retailer or the retailer's authorized 131 31 agent and must be certified by the retailer to be correct in 131 32 accordance with forms and rules prescribed by the director. 131 33 2. Persons required to file, or committed to file by 131 34 reason of voluntary action or by order of the department, 131 35 deposits of taxes due under this subchapter shall be entitled 132 1 to take credit against the total quarterly amount of tax due 132 2 such amount as shall have been deposited by such persons 132 3 during that calendar quarter. The balance remaining due after 132 4 such credit for deposits shall be entered on the return. 132 5 However, such person may be granted an extension of time not 132 6 exceeding thirty days for filing the quarterly return, upon a 132 7 proper showing of necessity. If an extension is granted, such 132 8 person shall have paid by the twentieth day of the month 132 9 following the close of such quarter ninety percent of the 132 10 estimated tax due. 132 11 3. The sales tax forms prescribed by the director shall be 132 12 referred to as "retailers tax deposit". Deposit forms shall 132 13 be signed by the retailer or the retailer's duly authorized 132 14 agent, and shall be duly certified by the retailer or agent to 132 15 be correct. The director may authorize incorporated banks and 132 16 trust companies or other depositories authorized by law which 132 17 are depositories or financial agents of the United States, or 132 18 of this state, to receive any sales tax imposed under this 132 19 chapter, in the manner, at the times, and under the conditions 132 20 the director prescribes. The director shall prescribe the 132 21 manner, times, and conditions under which the receipt of the 132 22 tax by those depositories is to be treated as payment of the 132 23 tax to the department. 132 24 4. Every retailer at the time of making any return 132 25 required by this section shall compute and pay to the 132 26 department the tax due for the preceding period. The tax on 132 27 sales prices from the sale or rental of tangible personal 132 28 property under a consumer rental purchase agreement as defined 132 29 in section 537.3604, subsection 8, is payable in the tax 132 30 period of receipt. 132 31 5. Upon making application and receiving approval from the 132 32 director, a parent corporation and its affiliated corporations 132 33 that make retail sales of tangible personal property or 132 34 taxable enumerated services may make deposits and file a 132 35 consolidated sales tax return for the affiliated group, 133 1 pursuant to rules adopted by the director. A parent 133 2 corporation and each affiliate corporation that files a 133 3 consolidated return are jointly and severally liable for all 133 4 tax, penalty, and interest found due for the tax period for 133 5 which a consolidated return is filed or required to be filed. 133 6 A business required to file a consolidated sales tax return 133 7 shall file a form entitled "schedule of consolidated business 133 8 locations" with its quarterly sales tax return that shows the 133 9 taxpayer's consolidated permit number, the permit number for 133 10 each Iowa business location, the state sales tax amount by 133 11 business location, and the amount of state sales tax due on 133 12 goods consumed that are not assigned to a specific business 133 13 location. Consolidated quarterly sales tax returns that are 133 14 not accompanied by the schedule of consolidated business 133 15 locations form are considered incomplete and are subject to 133 16 penalty under section 421.27. 133 17 6. If necessary or advisable in order to insure the 133 18 payment of the tax, the director may require returns and 133 19 payment of the tax to be made for other than quarterly 133 20 periods, the provisions of this section, or other provision to 133 21 the contrary notwithstanding. 133 22 Sec. 125. NEW SECTION. 423.32 FILING OF USE TAX RETURNS 133 23 AND PAYMENT OF USE TAX. 133 24 1. A retailer maintaining a place of business in this 133 25 state who is required to collect or a user who is required to 133 26 pay the use tax or a foreign retailer authorized, pursuant to 133 27 section 423.30, to collect the use tax, shall remit to the 133 28 department the amount of tax on or before the last day of the 133 29 month following each calendar quarterly period. However, a 133 30 retailer who collects or owes more than fifteen hundred 133 31 dollars in use taxes in a month shall deposit with the 133 32 department or in a depository authorized by law and designated 133 33 by the director, the amount collected or owed, with a deposit 133 34 form for the month as prescribed by the director. 133 35 a. The deposit form is due on or before the twentieth day 134 1 of the month following the month of collection, except a 134 2 deposit is not required for the third month of the calendar 134 3 quarter, and the total quarterly amount, less the amounts 134 4 deposited for the first two months of the quarter, is due with 134 5 the quarterly report on the last day of the month following 134 6 the month of collection. At that time, the retailer shall 134 7 file with the department a return for the preceding quarterly 134 8 period in the form prescribed by the director showing the 134 9 purchase price of the tangible personal property sold by the 134 10 retailer during the preceding quarterly period, the use of 134 11 which is subject to the use tax imposed by this chapter, and 134 12 other information the director deems necessary for the proper 134 13 administration of the use tax. 134 14 b. The return shall be accompanied by a remittance of the 134 15 use tax for the period covered by the return. If necessary in 134 16 order to ensure payment to the state of the tax, the director 134 17 may in any or all cases require returns and payments to be 134 18 made for other than quarterly periods. The director, upon 134 19 request and a proper showing of necessity, may grant an 134 20 extension of time not to exceed thirty days for making any 134 21 return and payment. Returns shall be signed, in accordance 134 22 with forms and rules prescribed by the director, by the 134 23 retailer or the retailer's authorized agent, and shall be 134 24 certified by the retailer or agent to be correct. 134 25 2. If it is reasonably expected, as determined by rules 134 26 prescribed by the director, that a retailer's annual sales or 134 27 use tax liability will not exceed one hundred twenty dollars 134 28 for a calendar year, the retailer may request and the director 134 29 may grant permission to the retailer, in lieu of the quarterly 134 30 filing and remitting requirements set out elsewhere in this 134 31 section, to file the return required by and remit the sales or 134 32 use tax due under this section on a calendar-year basis. The 134 33 return and tax are due and payable no later than January 31 134 34 following each calendar year in which the retailer carries on 134 35 business. 135 1 3. The director, in cooperation with the department of 135 2 management, may periodically change the filing and remittance 135 3 thresholds by administrative rule if in the best interests of 135 4 the state and taxpayer to do so. 135 5 Sec. 126. NEW SECTION. 423.33 LIABILITY OF PERSONS OTHER 135 6 THAN RETAILERS FOR PAYMENT OF SALES OR USE TAX. 135 7 1. LIABILITY OF PURCHASER FOR SALES TAX. If a purchaser 135 8 fails to pay sales tax to the retailer required to collect the 135 9 tax, then in addition to all of the rights, obligations, and 135 10 remedies provided, the tax is payable by the purchaser 135 11 directly to the department, and sections 423.31, 423.32, 135 12 423.37, 423.38, 423.39, 423.40, 423.41, and 423.42 apply to 135 13 the purchaser. For failure to pay, the retailer and purchaser 135 14 are liable, unless the circumstances described in section 135 15 421.60, subsection 2, paragraph "m", or section 423.45, 135 16 subsection 4, paragraph "b" or "e", or subsection 5, paragraph 135 17 "c" or "e", are applicable. 135 18 2. IMMEDIATE SUCCESSOR LIABILITY FOR SALES OR USE TAX. If 135 19 a retailer sells the retailer's business or stock of goods or 135 20 quits the business, the retailer shall prepare a final return 135 21 and pay all sales or use tax due within the time required by 135 22 law. The immediate successor to the retailer, if any, shall 135 23 withhold a sufficient portion of the purchase price, in money 135 24 or money's worth, to pay the amount of delinquent tax, 135 25 interest, or penalty due and unpaid. If the immediate 135 26 successor of the business or stock of goods intentionally 135 27 fails to withhold the amount due from the purchase price as 135 28 provided in this subsection, the immediate successor is 135 29 personally liable for the payment of delinquent taxes, 135 30 interest, and penalty accrued and unpaid on account of the 135 31 operation of the business by the immediate former retailer, 135 32 except when the purchase is made in good faith as provided in 135 33 section 421.28. However, a person foreclosing on a valid 135 34 security interest or retaking possession of premises under a 135 35 valid lease is not an "immediate successor" for purposes of 136 1 this section. The department may waive the liability of the 136 2 immediate successor under this subsection if the immediate 136 3 successor exercised good faith in establishing the amount of 136 4 the previous liability. 136 5 3. EVENT SPONSOR'S LIABILITY FOR SALES TAX. A person 136 6 sponsoring a flea market or a craft, antique, coin, or stamp 136 7 show or similar event shall obtain from every retailer selling 136 8 tangible personal property or taxable services at the event 136 9 proof that the retailer possesses a valid sales tax permit or 136 10 secure from the retailer a statement, taken in good faith, 136 11 that property or services offered for sale are not subject to 136 12 sales tax. Failure to do so renders a sponsor of the event 136 13 liable for payment of any sales tax, interest, and penalty due 136 14 and owing from any retailer selling property or services at 136 15 the event. Sections 423.31, 423.32, 423.37, 423.38, 423.39, 136 16 423.40, 423.41, and 423.42 apply to the sponsors. For 136 17 purposes of this subsection, a person sponsoring a flea market 136 18 or a craft, antique, coin, or stamp show or similar event does 136 19 not include an organization which sponsors an event less than 136 20 three times a year or a state, county, or district 136 21 agricultural fair. 136 22 Sec. 127. NEW SECTION. 423.34 LIABILITY OF USER. 136 23 Any person who uses any property or services enumerated in 136 24 section 423.2 upon which the use tax has not been paid, either 136 25 to the county treasurer or to a retailer or direct to the 136 26 department as required by this subchapter, shall be liable for 136 27 the payment of tax, and shall on or before the last day of the 136 28 month next succeeding each quarterly period pay the use tax 136 29 upon all property or services used by the person during the 136 30 preceding quarterly period in the manner and accompanied by 136 31 such returns as the director shall prescribe. All of the 136 32 provisions of sections 423.32 and 423.33 with reference to the 136 33 returns and payments shall be applicable to the returns and 136 34 payments required by this section. 136 35 Sec. 128. NEW SECTION. 423.35 POSTING OF BOND TO SECURE 137 1 PAYMENT. 137 2 The director may, when necessary and advisable in order to 137 3 secure the collection of the sales or use tax, authorize any 137 4 person subject to either tax, and any retailer required or 137 5 authorized to collect those taxes pursuant to the provisions 137 6 of section 423.14, to file with the department a bond, issued 137 7 by a surety company authorized to transact business in this 137 8 state and approved by the insurance commissioner as to 137 9 solvency and responsibility, in an amount as the director may 137 10 fix, to secure the payment of any tax, interest, or penalties 137 11 due or which may become due from such person. In lieu of a 137 12 bond, securities approved by the director, in an amount which 137 13 the director may prescribe, may be deposited with the 137 14 department, which securities shall be kept in the custody of 137 15 the department and may be sold by the director at public or 137 16 private sale, without notice to the depositor, if it becomes 137 17 necessary to do so in order to recover any tax, interest, or 137 18 penalties due. Upon the sale, the surplus, if any, above the 137 19 amounts due under this chapter shall be returned to the person 137 20 who deposited the securities. 137 21 Sec. 129. NEW SECTION. 423.36 PERMITS REQUIRED TO 137 22 COLLECT SALES OR USE TAX – APPLICATIONS – REVOCATION. 137 23 1. A person shall not engage in or transact business as a 137 24 retailer making taxable sales of tangible personal property or 137 25 furnishing services within this state or as a retailer making 137 26 taxable sales of tangible personal property or furnishing 137 27 services for use within this state, unless a permit has been 137 28 issued to the retailer under this section, except as provided 137 29 in subsection 6. Every person desiring to engage in or 137 30 transact business as a retailer shall file with the department 137 31 an application for a permit to collect sales or use tax. 137 32 Every application for a sales or use tax permit shall be made 137 33 upon a form prescribed by the director and shall set forth any 137 34 information the director may require. The application shall 137 35 be signed by an owner of the business if a natural person; in 138 1 the case of a retailer which is an association or partnership, 138 2 by a member or partner; and in the case of a retailer which is 138 3 a corporation, by an executive officer or some person 138 4 specifically authorized by the corporation to sign the 138 5 application, to which shall be attached the written evidence 138 6 of the person's authority. 138 7 2. To collect sales or use tax, the applicant must have a 138 8 permit for each place of business in the state of Iowa. The 138 9 department may deny a permit to an applicant who is 138 10 substantially delinquent in paying a tax due, or the interest 138 11 or penalty on the tax, administered by the department at the 138 12 time of application. If the applicant is a partnership, a 138 13 permit may be denied if a partner is substantially delinquent 138 14 in paying any delinquent tax, penalty, or interest. If the 138 15 applicant is a corporation, a permit may be denied if any 138 16 officer having a substantial legal or equitable interest in 138 17 the ownership of the corporation owes any delinquent tax, 138 18 penalty, or interest. 138 19 3. The department shall grant and issue to each applicant 138 20 a permit for each place of business in this state where sales 138 21 or use tax is collected. A permit is not assignable and is 138 22 valid only for the person in whose name it is issued and for 138 23 the transaction of business at the place designated or at a 138 24 place of relocation within the state if the ownership remains 138 25 the same. 138 26 If an applicant is making sales outside Iowa for use in 138 27 this state or furnishing services outside Iowa, the product or 138 28 result of which will be used in this state, that applicant 138 29 shall be issued one use tax permit by the department 138 30 applicable to these out-of-state sales or services. 138 31 4. Permits issued under this section are valid and 138 32 effective until revoked by the department. 138 33 5. If the holder of a permit fails to comply with any of 138 34 the provisions of this subchapter or of subchapter II or III 138 35 or any order or rule of the department adopted under those 139 1 subchapters or is substantially delinquent in the payment of a 139 2 tax administered by the department or the interest or penalty 139 3 on the tax, or if the person is a corporation and if any 139 4 officer having a substantial legal or equitable interest in 139 5 the ownership of the corporation owes any delinquent tax of 139 6 the permit-holding corporation, or interest or penalty on the 139 7 tax, administered by the department, the director may revoke 139 8 the permit. The director shall send notice by mail to a 139 9 permit holder informing that person of the director's intent 139 10 to revoke the permit and of the permit holder's right to a 139 11 hearing on the matter. If the permit holder petitions the 139 12 director for a hearing on the proposed revocation, after 139 13 giving ten days' notice of the time and place of the hearing 139 14 in accordance with section 17A.18, subsection 3, the matter 139 15 may be heard and a decision rendered. The director may 139 16 restore permits after revocation. The director shall adopt 139 17 rules setting forth the period of time a retailer must wait 139 18 before a permit may be restored or a new permit may be issued. 139 19 The waiting period shall not exceed ninety days from the date 139 20 of the revocation of the permit. 139 21 6. Sellers who are not regularly engaged in selling at 139 22 retail and do not have a permanent place of business, but who 139 23 are temporarily engaged in selling from trucks, portable 139 24 roadside stands, concessionaires at state, county, district, 139 25 or local fairs, carnivals, or the like, shall report and remit 139 26 the sales tax on a temporary basis, under rules the director 139 27 shall provide for the efficient collection of the sales tax. 139 28 This subsection applies to sellers who are temporarily engaged 139 29 in furnishing services. 139 30 Persons engaged in selling tangible personal property or 139 31 furnishing services shall not be required to obtain or retain 139 32 a sales tax permit for a place of business at which taxable 139 33 sales of tangible personal property or taxable performance of 139 34 services will not occur. 139 35 7. The provisions of subsection 1, dealing with the lawful 140 1 right of a retailer to transact business, as applicable, apply 140 2 to persons having receipts from furnishing services enumerated 140 3 in section 423.2, except that a person holding a permit 140 4 pursuant to subsection 1 shall not be required to obtain any 140 5 separate sales tax permit for the purpose of engaging in 140 6 business involving the services. 140 7 8. a. Except as provided in paragraph "b", purchasers, 140 8 users, and consumers of tangible personal property or 140 9 enumerated services taxed pursuant to subchapter II or III of 140 10 this chapter or chapters 423B and 423E may be authorized, 140 11 pursuant to rules adopted by the director, to remit tax owed 140 12 directly to the department instead of the tax being collected 140 13 and paid by the seller. To qualify for a direct pay tax 140 14 permit, the purchaser, user, or consumer must accrue a tax 140 15 liability of more than four thousand dollars in tax under 140 16 subchapters II and III in a semimonthly period and make 140 17 deposits and file returns pursuant to section 423.31. This 140 18 authority shall not be granted or exercised except upon 140 19 application to the director and then only after issuance by 140 20 the director of a direct pay tax permit. 140 21 b. The granting of a direct pay tax permit is not 140 22 authorized for any of the following: 140 23 (1) Taxes imposed on the sales, furnishing, or service of 140 24 gas, electricity, water, heat, pay television service, and 140 25 communication service. 140 26 (2) Taxes imposed under sections 423.26 and 423.27 and 140 27 chapter 423C. 140 28 Sec. 130. NEW SECTION. 423.37 FAILURE TO FILE SALES OR 140 29 USE TAX RETURNS – INCORRECT RETURNS. 140 30 1. As soon as practicable after a return is filed and in 140 31 any event within three years after the return is filed, the 140 32 department shall examine it, assess and determine the tax due 140 33 if the return is found to be incorrect, and give notice to the 140 34 person liable for the tax of the assessment and determination 140 35 as provided in subsection 2. The period for the examination 141 1 and determination of the correct amount of tax is unlimited in 141 2 the case of a false or fraudulent return made with the intent 141 3 to evade tax or in the case of a failure to file a return. 141 4 2. If a return required by this subchapter is not filed, 141 5 or if a return when filed is incorrect or insufficient and the 141 6 maker fails to file a corrected or sufficient return within 141 7 twenty days after the same is required by notice from the 141 8 department, the department shall determine the amount of tax 141 9 due from information as the department may be able to obtain 141 10 and, if necessary, may estimate the tax on the basis of 141 11 external indices, such as number of employees of the person 141 12 concerned, rentals paid by the person, stock on hand, or other 141 13 factors. The department shall give notice of the 141 14 determination to the person liable for the tax. The 141 15 determination shall fix the tax unless the person against whom 141 16 it is assessed shall, within sixty days after the giving of 141 17 notice of the determination, apply to the director for a 141 18 hearing or unless the taxpayer contests the determination by 141 19 paying the tax, interest, and penalty and timely filing a 141 20 claim for refund. At the hearing evidence may be offered to 141 21 support the determination or to prove that it is incorrect. 141 22 After the hearing the director shall give notice of the 141 23 decision to the person liable for the tax. 141 24 3. The three-year period of limitation provided in 141 25 subsection 1 may be extended by a taxpayer by signing a waiver 141 26 agreement form to be provided by the department. The 141 27 agreement shall stipulate the period of extension and the tax 141 28 period to which the extension applies. The agreement shall 141 29 also provide that a claim for refund may be filed by the 141 30 taxpayer at any time during the period of extension. 141 31 Sec. 131. NEW SECTION. 423.38 JUDICIAL REVIEW. 141 32 1. Judicial review of actions of the director may be 141 33 sought in accordance with the terms of the Iowa administrative 141 34 procedure Act. 141 35 2. For cause and upon a showing by the director that 142 1 collection of the tax in dispute is in doubt, the court may 142 2 order the petitioner to file with the clerk a bond for the use 142 3 of the respondent, with sureties approved by the clerk, in the 142 4 amount of tax appealed from, conditioned that the petitioner 142 5 shall perform the orders of the court. 142 6 3. An appeal may be taken by the taxpayer or the director 142 7 to the supreme court of this state irrespective of the amount 142 8 involved. 142 9 Sec. 132. NEW SECTION. 423.39 SERVICE OF NOTICES. 142 10 1. A notice authorized or required under this subchapter 142 11 may be given by mailing the notice to the person for whom it 142 12 is intended, addressed to that person at the address given in 142 13 the last return filed by the person pursuant to this 142 14 subchapter, or if no return has been filed, then to any 142 15 address obtainable. The mailing of the notice is presumptive 142 16 evidence of the receipt of the notice by the person to whom 142 17 addressed. Any period of time which is determined according 142 18 to this subchapter by the giving of notice commences to run 142 19 from the date of mailing of the notice. 142 20 2. The provisions of the Code relative to the limitation 142 21 of time for the enforcement of a civil remedy shall not apply 142 22 to any proceeding or action taken to levy, appraise, assess, 142 23 determine, or enforce the collection of any tax or penalty 142 24 provided by this chapter. 142 25 Sec. 133. NEW SECTION. 423.40 PENALTIES – OFFENSES – 142 26 LIMITATION. 142 27 1. In addition to the sales or use tax or additional sales 142 28 or use tax, the taxpayer shall pay a penalty as provided in 142 29 section 421.27. The taxpayer shall also pay interest on the 142 30 sales or use tax or additional sales or use tax at the rate in 142 31 effect under section 421.7 for each month counting each 142 32 fraction of a month as an entire month, computed from the date 142 33 the semimonthly or monthly tax deposit form or return was 142 34 required to be filed. The penalty and interest shall be paid 142 35 to the department and disposed of in the same manner as other 143 1 receipts under this subchapter. Unpaid penalties and interest 143 2 may be enforced in the same manner as the taxes imposed by 143 3 this chapter. 143 4 2. a. Any person who knowingly sells tangible personal 143 5 property, tickets or admissions to places of amusement and 143 6 athletic events, or gas, water, electricity, or communication 143 7 service at retail, or engages in the furnishing of services 143 8 enumerated in section 423.2, in this state without procuring a 143 9 permit to collect tax, as provided in section 423.36, or who 143 10 violates section 423.24 and the officers of any corporation 143 11 who so act are guilty of a serious misdemeanor. 143 12 b. A person who knowingly sells tangible personal 143 13 property, tickets or admissions to places of amusement and 143 14 athletic events, or gas, water, electricity, or communication 143 15 service at retail, or engages in the furnishing of services 143 16 enumerated in section 423.2, in this state after the person's 143 17 sales tax permit has been revoked and before it has been 143 18 restored as provided in section 423.36, subsection 5, and the 143 19 officers of any corporation who so act are guilty of an 143 20 aggravated misdemeanor. 143 21 3. A person who willfully attempts in any manner to evade 143 22 any tax imposed by this chapter or the payment of the tax or a 143 23 person who makes or causes to be made a false or fraudulent 143 24 semimonthly or monthly tax deposit form or return with intent 143 25 to evade any tax imposed by subchapter II or III or the 143 26 payment of the tax is guilty of a class "D" felony. 143 27 4. The certificate of the director to the effect that a 143 28 tax has not been paid, that a return has not been filed, or 143 29 that information has not been supplied pursuant to the 143 30 provisions of this subchapter shall be prima facie evidence 143 31 thereof. 143 32 5. A person required to pay sales or use tax, or to make, 143 33 sign, or file a tax deposit form or return or supplemental 143 34 return, who willfully makes a false or fraudulent tax deposit 143 35 form or return, or willfully fails to pay at least ninety 144 1 percent of the tax or willfully fails to make, sign, or file 144 2 the tax deposit form or return, at the time required by law, 144 3 is guilty of a fraudulent practice. 144 4 6. A prosecution for an offense specified in this section 144 5 shall be commenced within six years after its commission. 144 6 Sec. 134. NEW SECTION. 423.41 BOOKS – EXAMINATION. 144 7 Every retailer required or authorized to collect taxes 144 8 imposed by this chapter and every person using in this state 144 9 tangible personal property, services, or the product of 144 10 services shall keep records, receipts, invoices, and other 144 11 pertinent papers as the director shall require, in the form 144 12 that the director shall require, for as long as the director 144 13 has the authority to examine and determine tax due. The 144 14 director or any duly authorized agent of the department may 144 15 examine the books, papers, records, and equipment of any 144 16 person either selling tangible personal property or services 144 17 or liable for the tax imposed by this chapter, and investigate 144 18 the character of the business of any person in order to verify 144 19 the accuracy of any return made, or if a return was not made 144 20 by the person, ascertain and determine the amount due under 144 21 this chapter. These books, papers, and records shall be made 144 22 available within this state for examination upon reasonable 144 23 notice when the director deems it advisable and so orders. 144 24 The preceding requirements shall likewise apply to users and 144 25 persons furnishing services enumerated in section 423.2. 144 26 Sec. 135. NEW SECTION. 423.42 STATUTES APPLICABLE. 144 27 1. The director shall administer the taxes imposed by 144 28 subchapters II and III in the same manner and subject to all 144 29 the provisions of, and all of the powers, duties, authority, 144 30 and restrictions contained in, section 422.25, subsection 4, 144 31 section 422.30, and sections 422.67 through 422.75. 144 32 2. All the provisions of section 422.26 shall apply in 144 33 respect to the taxes and penalties imposed by subchapters II 144 34 and III and this subchapter, except that, as applied to any 144 35 tax imposed by subchapters II and III, the lien provided in 145 1 section 422.26 shall be prior and paramount over all 145 2 subsequent liens upon any personal property within this state, 145 3 or right to such personal property, belonging to the taxpayer 145 4 without the necessity of recording as provided in section 145 5 422.26. The requirements for recording shall, as applied to 145 6 the taxes imposed by subchapters II and III, apply only to the 145 7 liens upon real property. When requested to do so by any 145 8 person from whom a taxpayer is seeking credit, or with whom 145 9 the taxpayer is negotiating the sale of any personal property, 145 10 or by any other person having a legitimate interest in such 145 11 information, the director shall, upon being satisfied that 145 12 such a situation exists, inform that person as to the amount 145 13 of unpaid taxes due by such taxpayer under the provisions of 145 14 subchapters II and III. The giving of this information under 145 15 these circumstances shall not be deemed a violation of section 145 16 422.72 as applied to subchapters II and III. 145 17 Sec. 136. NEW SECTION. 423.43 DEPOSIT OF REVENUE – 145 18 APPROPRIATIONS. 145 19 Except as otherwise provided in section 312.2, subsection 145 20 14, all revenues derived from the use tax on motor vehicles, 145 21 trailers, and motor vehicle accessories and equipment as 145 22 collected pursuant to sections 423.26 and 423.27 shall be 145 23 deposited and credited to the road use tax fund and shall be 145 24 used exclusively for the construction, maintenance, and 145 25 supervision of public highways. 145 26 1. Notwithstanding any provision of this section which 145 27 provides that all revenues derived from the use tax on motor 145 28 vehicles, trailers, and motor vehicle accessories and 145 29 equipment as collected pursuant to sections 423.26 and 423.27 145 30 shall be deposited and credited to the road use tax fund, 145 31 eighty percent of the revenues shall be deposited and credited 145 32 as follows: 145 33 a. Twenty-five percent of all such revenue, up to a 145 34 maximum of four million two hundred fifty thousand dollars per 145 35 quarter, shall be deposited into and credited to the Iowa 146 1 comprehensive petroleum underground storage tank fund created 146 2 in section 455G.3, and the moneys so deposited are a 146 3 continuing appropriation for expenditure under chapter 455G, 146 4 and moneys so appropriated shall not be used for other 146 5 purposes. 146 6 b. Any such revenues remaining shall be credited to the 146 7 road use tax fund. 146 8 2. Notwithstanding any other provision of this section 146 9 that provides that all revenue derived from the use tax on 146 10 motor vehicles, trailers, and motor vehicle accessories and 146 11 equipment as collected pursuant to section 423.26 shall be 146 12 deposited and credited to the road use tax fund, twenty 146 13 percent of the revenues shall be credited and deposited as 146 14 follows: one-half to the road use tax fund and one-half to 146 15 the primary road fund to be used for the commercial and 146 16 industrial highway network. 146 17 3. All other revenue arising under the operation of this 146 18 chapter shall be credited to the general fund of the state. 146 19 Sec. 137. NEW SECTION. 423.44 REIMBURSEMENT FOR PRIMARY 146 20 ROAD FUND. 146 21 From moneys deposited into the road use tax fund, the 146 22 department may credit to the primary road fund any amount of 146 23 revenues derived from the use tax on motor vehicles, trailers, 146 24 and motor vehicle accessories and equipment as collected 146 25 pursuant to sections 423.26 and 423.27 to the extent necessary 146 26 to reimburse that fund for the expenditures not otherwise 146 27 eligible to be made from the primary road fund, which are made 146 28 for repairing, improving, and maintaining bridges over the 146 29 rivers bordering the state. Expenditures for those portions 146 30 of bridges within adjacent states may be included when they 146 31 are made pursuant to an agreement entered into under section 146 32 313.63, 313A.34, or 314.10. 146 33 Sec. 138. NEW SECTION. 423.45 REFUNDS – EXEMPTION 146 34 CERTIFICATES. 146 35 1. If an amount of tax represented by a retailer to a 147 1 consumer or user as constituting tax due is computed upon a 147 2 sales price that is not taxable or the amount represented is 147 3 in excess of the actual taxable amount and the amount 147 4 represented is actually paid by the consumer or user to the 147 5 retailer, the excess amount of tax paid shall be returned to 147 6 the consumer or user upon notification to the retailer by the 147 7 department that an excess payment exists. 147 8 2. If an amount of tax represented by a retailer to a 147 9 consumer or user as constituting tax due is computed upon a 147 10 sales price that is not taxable or the amount represented is 147 11 in excess of the actual taxable amount and the amount 147 12 represented is actually paid by the consumer or user to the 147 13 retailer, the excess amount of tax paid shall be returned to 147 14 the consumer or user upon proper notification to the retailer 147 15 by the consumer or user that an excess payment exists. 147 16 "Proper" notification is written notification which allows a 147 17 retailer at least sixty days to respond and which contains 147 18 enough information to allow a retailer to determine the 147 19 validity of a consumer's or user's claim that an excess amount 147 20 of tax has been paid. No cause of action shall accrue against 147 21 a retailer for excess tax paid until sixty days after proper 147 22 notice has been given the retailer by the consumer or user. 147 23 3. In the circumstances described in subsections 1 and 2, 147 24 a retailer has the option to either return any excess amount 147 25 of tax paid to a consumer or user, or to remit the amount 147 26 which a consumer or user has paid to the retailer to the 147 27 department. 147 28 4. a. The department shall issue or the seller may 147 29 separately provide exemption certificates in the form 147 30 prescribed by the director, including certificates not made of 147 31 paper, which conform to the requirements of paragraph "c", to 147 32 assist retailers in properly accounting for nontaxable sales 147 33 of tangible personal property or services to purchasers for a 147 34 nontaxable purpose. The department shall also allow the use 147 35 of exemption certificates for those circumstances in which a 148 1 sale is taxable but the seller is not obligated to collect tax 148 2 from the buyer. 148 3 b. The sales tax liability for all sales of tangible 148 4 personal property and all sales of services is upon the seller 148 5 and the purchaser unless the seller takes in good faith from 148 6 the purchaser a valid exemption certificate stating under 148 7 penalty of perjury that the purchase is for a nontaxable 148 8 purpose and is not a retail sale as defined in section 423.1, 148 9 or the seller is not obligated to collect tax due, or unless 148 10 the seller takes a fuel exemption certificate pursuant to 148 11 subsection 5. If the tangible personal property or services 148 12 are purchased tax free pursuant to a valid exemption 148 13 certificate which is taken in good faith by the seller, and 148 14 the tangible personal property or services are used or 148 15 disposed of by the purchaser in a nonexempt manner, the 148 16 purchaser is solely liable for the taxes and shall remit the 148 17 taxes directly to the department and sections 423.31, 423.32, 148 18 423.37, 423.38, 423.39, 423.40, 423.41, and 423.42 shall apply 148 19 to the purchaser. 148 20 c. A valid exemption certificate is an exemption 148 21 certificate which is complete and correct according to the 148 22 requirements of the director. 148 23 d. A valid exemption certificate is taken in good faith by 148 24 the seller when the seller has exercised that caution and 148 25 diligence which honest persons of ordinary prudence would 148 26 exercise in handling their own business affairs, and includes 148 27 an honesty of intention and freedom from knowledge of 148 28 circumstances which ought to put one upon inquiry as to the 148 29 facts. In order for a seller to take a valid exemption 148 30 certificate in good faith, the seller must exercise reasonable 148 31 prudence to determine the facts supporting the valid exemption 148 32 certificate, and if any facts upon such certificate would lead 148 33 a reasonable person to further inquiry, such inquiry must be 148 34 made with an honest intent to discover the facts. 148 35 e. If the circumstances change and as a result the 149 1 tangible personal property or services are used or disposed of 149 2 by the purchaser in a nonexempt manner or the purchaser 149 3 becomes obligated to pay the tax, the purchaser is liable 149 4 solely for the taxes and shall remit the taxes directly to the 149 5 department in accordance with this subsection. 149 6 5. a. The department shall issue or the seller may 149 7 separately provide fuel exemption certificates in the form 149 8 prescribed by the director. 149 9 b. For purposes of this subsection: 149 10 (1) "Fuel" includes gas, electricity, water, heat, steam, 149 11 and any other tangible personal property consumed in creating 149 12 heat, power, or steam. 149 13 (2) "Fuel consumed in processing" means fuel used or 149 14 consumed for processing including grain drying, for providing 149 15 heat or cooling for livestock buildings or for greenhouses or 149 16 buildings or parts of buildings dedicated to the production of 149 17 flowering, ornamental, or vegetable plants intended for sale 149 18 in the ordinary course of business, for use in aquaculture 149 19 production, or for generating electric current, or in 149 20 implements of husbandry engaged in agricultural production. 149 21 (3) "Fuel exemption certificate" means an exemption 149 22 certificate given by the purchaser under penalty of perjury to 149 23 assist retailers in properly accounting for nontaxable sales 149 24 of fuel consumed in processing. 149 25 (4) "Substantial change" means a change in the use or 149 26 disposition of tangible personal property and services by the 149 27 purchaser such that the purchaser pays less than ninety 149 28 percent of the purchaser's actual sales tax liability. A 149 29 change includes a misstatement of facts in an application made 149 30 pursuant to paragraph "d" or in a fuel exemption certificate. 149 31 c. The seller may accept a completed fuel exemption 149 32 certificate, as prepared by the purchaser, for three years 149 33 unless the purchaser files a new completed exemption 149 34 certificate. If the fuel is purchased tax free pursuant to a 149 35 fuel exemption certificate which is taken by the seller, and 150 1 the fuel is used or disposed of by the purchaser in a 150 2 nonexempt manner, the purchaser is solely liable for the 150 3 taxes, and shall remit the taxes directly to the department 150 4 and sections 423.31, 423.32, 423.37, 423.38, 423.39, 423.40, 150 5 423.41, and 423.42 shall apply to the purchaser. 150 6 d. The purchaser may apply to the department for its 150 7 review of the fuel exemption certificate. In this event, the 150 8 department shall review the fuel exemption certificate within 150 9 twelve months from the date of application and determine the 150 10 correct amount of the exemption. If the amount determined by 150 11 the department is different than the amount that the purchaser 150 12 claims is exempt, the department shall promptly notify the 150 13 purchaser of the determination. Failure of the department to 150 14 make a determination within twelve months from the date of 150 15 application shall constitute a determination that the fuel 150 16 exemption certificate is correct as submitted. A 150 17 determination of exemption by the department is final unless 150 18 the purchaser appeals to the director for a revision of the 150 19 determination within sixty days after the date of the notice 150 20 of determination. The director shall grant a hearing, and 150 21 upon the hearing, the director shall determine the correct 150 22 exemption and notify the purchaser of the decision by mail. 150 23 The decision of the director is final unless the purchaser 150 24 seeks judicial review of the director's decision under section 150 25 423.38 within sixty days after the date of the notice of the 150 26 director's decision. Unless there is a substantial change, 150 27 the department shall not impose penalties pursuant to section 150 28 423.40 both retroactively to purchases made after the date of 150 29 application and prospectively until the department gives 150 30 notice to the purchaser that a tax or additional tax is due, 150 31 for failure to remit any tax due which is in excess of a 150 32 determination made under this section. A determination made 150 33 by the department pursuant to this subsection does not 150 34 constitute an audit for purposes of section 423.37. 150 35 e. If the circumstances change and the fuel is used or 151 1 disposed of by the purchaser in a nonexempt manner, the 151 2 purchaser is solely liable for the taxes and shall remit the 151 3 taxes directly to the department in accordance with paragraph 151 4 "c". 151 5 f. The purchaser shall attach documentation to the fuel 151 6 exemption certificate which is reasonably necessary to support 151 7 the exemption for fuel consumed in processing. If the 151 8 purchaser files a new exemption certificate with the seller, 151 9 documentation shall not be required if the purchaser 151 10 previously furnished the seller with this documentation and 151 11 substantial change has not occurred since that documentation 151 12 was furnished or if fuel consumed in processing is separately 151 13 metered and billed by the seller. 151 14 6. Nothing in this section authorizes any cause of action 151 15 by any person to recover sales or use taxes directly from the 151 16 state or extends any person's time to seek a refund of sales 151 17 or use taxes which have been collected and remitted to the 151 18 state. 151 19 Sec. 139. NEW SECTION. 423.46 RATE AND BASE CHANGES. 151 20 The department shall make a reasonable effort to provide 151 21 sellers with as much advance notice as practicable of a rate 151 22 change and to notify sellers of legislative changes in the tax 151 23 base and amendments to sales and use tax rules. Failure of a 151 24 seller to receive notice or failure of this state to provide 151 25 notice or limit the effective date of a rate change shall not 151 26 relieve the seller of its obligation to collect sales or use 151 27 taxes for this state. 151 28 Sec. 140. NEW SECTION. 423.47 REFUNDS AND CREDITS. 151 29 If it shall appear that, as a result of mistake, an amount 151 30 of tax, penalty, or interest has been paid which was not due 151 31 under the provisions of this chapter, such amount shall be 151 32 credited against any tax due, or to become due, on the books 151 33 of the department from the person who made the erroneous 151 34 payment, or such amount shall be refunded to such person by 151 35 the department. A claim for refund or credit that has not 152 1 been filed with the department within three years after the 152 2 tax payment for which a refund or credit is claimed became 152 3 due, or one year after such tax payment was made, whichever 152 4 time is the later, shall not be allowed by the director. 152 5 SUBCHAPTER VI 152 6 SALES AND USE TAX ACT – ADMINISTRATION OF 152 7 RETAILERS REGISTERED VOLUNTARILY UNDER THE 152 8 AGREEMENT 152 9 Sec. 141. NEW SECTION. 423.48 RESPONSIBILITIES AND 152 10 RIGHTS OF SELLERS REGISTERED UNDER THE AGREEMENT. 152 11 1. By registering under the agreement, the seller agrees 152 12 to collect and remit sales and use taxes for all its taxable 152 13 Iowa sales. Iowa's withdrawal from the agreement or 152 14 revocation of its membership in the agreement shall not 152 15 relieve a seller from its responsibility to remit taxes 152 16 previously collected on behalf of this state. 152 17 2. The following provisions apply to any seller who 152 18 registers under the agreement: 152 19 a. The seller may register on-line. 152 20 b. Registration under the agreement and the collection of 152 21 Iowa sales and use taxes shall not be used as factors in 152 22 determining whether the seller has nexus with Iowa for any 152 23 tax. 152 24 c. If registered under the agreement with any other member 152 25 state, the seller is considered to be registered in Iowa. 152 26 d. The seller is not required to pay registration fees or 152 27 other charges. 152 28 e. A written signature from the seller is not required. 152 29 f. The seller may register by way of an agent. The 152 30 agent's appointment shall be in writing and submitted to the 152 31 department if requested by the department. 152 32 g. The seller may cancel its registration at any time 152 33 under procedures adopted by the governing board established 152 34 pursuant to the agreement. Cancellation does not relieve the 152 35 seller of its liability for remitting any Iowa taxes 153 1 collected. 153 2 3. The following additional responsibilities and rights 153 3 apply to model sellers: 153 4 a. A model 1 seller's obligation to calculate, collect, 153 5 and remit sales and use taxes shall be performed by its 153 6 certified service provider, except for the seller's obligation 153 7 to remit tax on its own purchases. As the seller's agent, the 153 8 certified service provider is liable for its model 1 seller's 153 9 sales and use tax due Iowa on all sales transactions it 153 10 processes for the seller except as set out in this section. A 153 11 seller that contracts with a certified service provider is not 153 12 liable to the state for sales or use tax due on transactions 153 13 processed by the certified service provider unless the seller 153 14 misrepresents the types of items or services it sells or 153 15 commits fraud. In the absence of probable cause to believe 153 16 that the seller has committed fraud or made a material 153 17 misrepresentation, the seller is not subject to audit on the 153 18 transactions processed by the certified service provider. A 153 19 model 1 seller is subject to audit for transactions not 153 20 processed by the certified service provider. The director is 153 21 authorized to perform a system check of the model 1 seller and 153 22 review the seller's procedures to determine if the certified 153 23 service provider's system is functioning properly and the 153 24 extent to which the seller's transactions are being processed 153 25 by the certified service provider. 153 26 b. A model 2 seller shall calculate the amount of tax due 153 27 on a transaction by the use of a certified automated system, 153 28 but shall collect and remit tax on its own sales. A person 153 29 that provides a certified automated system is responsible for 153 30 the proper functioning of that system and is liable to this 153 31 state for underpayments of tax attributable to errors in the 153 32 functioning of the certified automated system. A seller that 153 33 uses a certified automated system remains responsible and is 153 34 liable to the state for reporting and remitting tax. 153 35 c. A model 3 seller shall use its own proprietary 154 1 automated system to calculate tax due and collect and remit 154 2 tax on its own sales. A model 3 seller is liable for the 154 3 failure of its proprietary automated system to meet the 154 4 applicable performance standard. 154 5 Sec. 142. NEW SECTION. 423.49 RETURNS. 154 6 1. All model 1, 2, or 3 sellers are subject to all of the 154 7 following return requirements: 154 8 a. The seller is required to file only one return per 154 9 month for this state and for all taxing jurisdictions within 154 10 this state. 154 11 b. The date for filing returns shall be determined under 154 12 rules adopted by the director. However, in no case shall the 154 13 return be due earlier than the twentieth day of the following 154 14 month. 154 15 c. The director shall request additional information 154 16 returns. These returns shall not be required more frequently 154 17 than every six months. 154 18 2. Any registered seller which does not have a legal 154 19 obligation to register in this state and is not a model 1, 2, 154 20 or 3 seller is subject to all of the following return 154 21 requirements: 154 22 a. The seller is required to file a return within one year 154 23 of the month of initial registration and shall file a return 154 24 on an annual basis in succeeding years. 154 25 b. In addition to the return required in paragraph "a", if 154 26 the seller accumulates more than one thousand dollars in total 154 27 state and local tax, the seller is required to file a return 154 28 in the following month. 154 29 c. The format of the return and the due date of the 154 30 initial return and the annual return shall be determined under 154 31 rules adopted by the department. 154 32 Sec. 143. NEW SECTION. 423.50 REMITTANCE OF FUNDS. 154 33 1. Only one remittance of tax per return is required 154 34 except as provided in this subsection. Sellers that collect 154 35 more than thirty thousand dollars in sales and use taxes for 155 1 this state during the preceding calendar year shall be 155 2 required to make additional remittances as required under 155 3 rules adopted by the director. The filing of a return is not 155 4 required with an additional remittance. 155 5 2. All remittances shall be remitted electronically. 155 6 3. Electronic payments may be made either by automated 155 7 clearinghouse credit or automated clearinghouse debit. Any 155 8 data accompanying a remittance must be formatted using uniform 155 9 tax type and payment codes approved by the governing board 155 10 established pursuant to the agreement. An alternative method 155 11 for making same-day payments shall be determined under rules 155 12 adopted by the director. 155 13 4. If a due date falls on a legal banking holiday in this 155 14 state, the taxes are due on the succeeding business day. 155 15 Sec. 144. NEW SECTION. 423.51 ADMINISTRATION OF 155 16 EXEMPTIONS. 155 17 1. The following provisions shall apply when a purchaser 155 18 claims an exemption: 155 19 a. The seller shall obtain identifying information of the 155 20 purchaser and the reason for claiming a tax exemption at the 155 21 time of the purchase as determined by the member states acting 155 22 jointly. 155 23 b. A purchaser is not required to provide a signature to 155 24 claim an exemption from tax unless a paper certificate is 155 25 used. 155 26 c. The seller shall use the standard form for claiming an 155 27 exemption electronically as adopted jointly by the member 155 28 states. 155 29 d. The seller shall obtain the same information for proof 155 30 of a claimed exemption regardless of the medium in which the 155 31 transaction occurred. 155 32 e. The department may authorize a system wherein the 155 33 purchaser exempt from the payment of the tax is issued an 155 34 identification number which shall be presented to the seller 155 35 at the time of the sale. 156 1 f. The seller shall maintain proper records of exempt 156 2 transactions and provide them to the department when 156 3 requested. 156 4 g. The department shall administer entity-based and use- 156 5 based exemptions when practicable through a direct pay tax 156 6 permit, an exemption certificate, or another means that does 156 7 not burden sellers. For the purposes of this paragraph: 156 8 (1) An "entity-based exemption" is an exemption based on 156 9 who purchases the product or who sells the product. 156 10 (2) A "use-based exemption" is an exemption based on the 156 11 purchaser's use of the product. 156 12 2. Sellers that follow the requirements of this section 156 13 are relieved from any tax otherwise applicable if it is 156 14 determined that the purchaser improperly claimed an exemption 156 15 and that the purchaser is liable for the nonpayment of tax. 156 16 This relief from liability does not apply to a seller who 156 17 fraudulently fails to collect the tax or solicits purchasers 156 18 to participate in the unlawful claim of an exemption. 156 19 Sec. 145. NEW SECTION. 423.52 RELIEF FROM LIABILITY FOR 156 20 SELLERS AND CERTIFIED SERVICE PROVIDERS. 156 21 Sellers and certified service providers are relieved from 156 22 liability to this state or its local taxing jurisdictions for 156 23 having charged and collected the incorrect amount of sales or 156 24 use tax resulting from the seller or certified service 156 25 provider relying on erroneous data provided by this state on 156 26 tax rates, boundaries, or taxing jurisdiction assignments. If 156 27 this state provides an address-based system for assigning 156 28 taxing jurisdictions whether or not pursuant to the federal 156 29 Mobile Telecommunications Sourcing Act, the director is not 156 30 required to provide liability relief for errors resulting from 156 31 reliance on the information provided by this state. 156 32 Sec. 146. NEW SECTION. 423.53 BAD DEBTS AND MODEL 1 156 33 SELLERS. 156 34 A certified service provider may claim, on behalf of a 156 35 model 1 seller, any bad debt deduction as provided in section 157 1 423.21. The certified service provider must credit or refund 157 2 the full amount of any bad debt deduction or refund received 157 3 to the seller. 157 4 Sec. 147. NEW SECTION. 423.54 AMNESTY FOR REGISTERED 157 5 SELLERS. 157 6 1. Subject to the limitations in subsections 2 through 6, 157 7 the following provisions apply: 157 8 a. Amnesty is provided for uncollected or unpaid sales or 157 9 use tax to a seller who registers to pay or to collect and 157 10 remit applicable sales or use tax on sales made to purchasers 157 11 in this state in accordance with the terms of the agreement, 157 12 provided the seller was not so registered in this state in the 157 13 twelve-month period preceding the commencement of Iowa's 157 14 participation in the agreement. 157 15 b. Amnesty precludes assessment of the seller for 157 16 uncollected or unpaid sales or use tax together with penalty 157 17 or interest for sales made during the period the seller was 157 18 not registered in this state, provided registration occurs 157 19 within twelve months of the commencement of Iowa's 157 20 participation in the agreement. 157 21 c. Amnesty shall be provided to any seller lawfully 157 22 registered under the agreement by any other member state prior 157 23 to the date of the commencement of Iowa's participation in the 157 24 agreement. 157 25 2. Amnesty is not available to a seller with respect to 157 26 any matter or matters for which the seller received notice of 157 27 the commencement of an audit and which audit is not yet 157 28 finally resolved, including any related administrative and 157 29 judicial processes. 157 30 3. Amnesty is not available for sales or use taxes already 157 31 paid or remitted or to taxes collected by the seller. 157 32 4. Amnesty is fully effective absent the seller's fraud or 157 33 intentional misrepresentation of a material fact as long as 157 34 the seller continues registration and continues payment or 157 35 collection and remittance of applicable sales or use taxes for 158 1 a period of at least thirty-six months. The statute of 158 2 limitations applicable to asserting a tax liability is tolled 158 3 during this thirty-six month period. 158 4 5. Amnesty is applicable only to sales or use taxes due 158 5 from a seller in its capacity as a seller and not to sales or 158 6 use taxes due from a seller in its capacity as a buyer. 158 7 6. The director may allow amnesty on terms and conditions 158 8 more favorable to a seller than the terms required by this 158 9 section. 158 10 Sec. 148. NEW SECTION. 423.55 DATABASES. 158 11 The department shall provide and maintain databases 158 12 required by the agreement for the benefit of sellers 158 13 registered under the agreement. 158 14 Sec. 149. NEW SECTION. 423.56 CONFIDENTIALITY AND 158 15 PRIVACY PROTECTIONS UNDER MODEL 1. 158 16 1. As used in this section: 158 17 a. "Anonymous data" means information that does not 158 18 identify a person. 158 19 b. "Confidential taxpayer information" means all 158 20 information that is protected under this state's laws, rules, 158 21 and privileges. 158 22 c. "Personally identifiable information" means information 158 23 that identifies a person. 158 24 2. With very limited exceptions, a certified service 158 25 provider shall perform its tax calculation, remittance, and 158 26 reporting functions without retaining the personally 158 27 identifiable information of consumers. 158 28 3. A certified service provider may perform its services 158 29 in this state only if the certified service provider certifies 158 30 that: 158 31 a. Its system has been designed and tested to ensure that 158 32 the fundamental precept of anonymity is respected. 158 33 b. Personally identifiable information is only used and 158 34 retained to the extent necessary for the administration of 158 35 model 1 sellers with respect to exempt purchasers. 159 1 c. It provides consumers clear and conspicuous notice of 159 2 its information practices, including what information it 159 3 collects, how it collects the information, how it uses the 159 4 information, how long, if at all, it retains the information, 159 5 and whether it discloses the information to member states. 159 6 This notice shall be satisfied by a written privacy policy 159 7 statement accessible by the public on the official web site of 159 8 the certified service provider. 159 9 d. Its collection, use, and retention of personally 159 10 identifiable information is limited to that required by the 159 11 member states to ensure the validity of exemptions from 159 12 taxation that are claimed by reason of a consumer's status or 159 13 the intended use of the goods or services purchased. 159 14 e. It provides adequate technical, physical, and 159 15 administrative safeguards so as to protect personally 159 16 identifiable information from unauthorized access and 159 17 disclosure. 159 18 4. The department shall provide public notification of its 159 19 practices relating to the collection, use, and retention of 159 20 personally identifiable information. 159 21 5. When any personally identifiable information that has 159 22 been collected and retained by the department or certified 159 23 service provider is no longer required for the purposes set 159 24 forth in subsection 3, paragraph "d", that information shall 159 25 no longer be retained by the department or certified service 159 26 provider. 159 27 6. When personally identifiable information regarding an 159 28 individual is retained by or on behalf of this state, this 159 29 state shall provide reasonable access by such individual to 159 30 his or her own information in the state's possession and a 159 31 right to correct any inaccurately recorded information. 159 32 7. This privacy policy is subject to enforcement by the 159 33 department and the attorney general. 159 34 8. This state's laws and rules regarding the collection, 159 35 use, and maintenance of confidential taxpayer information 160 1 remain fully applicable and binding. Without limitation, the 160 2 agreement does not enlarge or limit the state's or 160 3 department's authority to: 160 4 a. Conduct audits or other review as provided under the 160 5 agreement and state law. 160 6 b. Provide records pursuant to its examination of public 160 7 records law, disclosure laws of individual governmental 160 8 agencies, or other regulations. 160 9 c. Prevent, consistent with state law, disclosures of 160 10 confidential taxpayer information. 160 11 d. Prevent, consistent with federal law, disclosures or 160 12 misuse of federal return information obtained under a 160 13 disclosure agreement with the internal revenue service. 160 14 e. Collect, disclose, disseminate, or otherwise use 160 15 anonymous data for governmental purposes. 160 16 9. This privacy policy does not preclude the certification 160 17 of a certified service provider whose privacy policy is more 160 18 protective of confidential taxpayer information or personally 160 19 identifiable information than is required by the agreement. 160 20 Sec. 150. NEW SECTION. 423.57 STATUTES APPLICABLE. 160 21 The director shall administer this subchapter as it relates 160 22 to the taxes imposed in this chapter in the same manner and 160 23 subject to all the provisions of, and all of the powers, 160 24 duties, authority, and restrictions contained in sections 160 25 423.14, 423.15, 423.16, 423.17, 423.18, 423.19, 423.20, 160 26 423.21, 423.22, 423.23, 423.24, 423.25, 423.28, 423.29, 160 27 423.31, 423.32, 423.33, 423.34, 423.35, 423.37, 423.38, 160 28 423.39, 423.40, 423.41, and 423.42, section 423.43, subsection 160 29 3, and sections 423.45, 423.46, and 423.47. 160 30 Sec. 151. 160 31 1. Sections 422.42 through 422.59, Code 2003, are 160 32 repealed. 160 33 2. Chapter 423, Code 2003, is repealed. 160 34 COORDINATING AMENDMENTS 160 35 Sec. 152. Section 15.331A, Code 2003, is amended to read 161 1 as follows: 161 2 15.331A SALES, SERVICES, AND USE TAX REFUND – CONTRACTOR 161 3 OR SUBCONTRACTOR. 161 4 The eligible business or a supporting business shall be 161 5 entitled to a refund of the sales and use taxes paid under 161 6chapters 422 andchapter 423 for gas, electricity, water, or 161 7 sewer utility services, goods, wares, or merchandise, or on 161 8 services rendered, furnished, or performed to or for a 161 9 contractor or subcontractor and used in the fulfillment of a 161 10 written contract relating to the construction or equipping of 161 11 a facility within the economic development area of the 161 12 eligible business or a supporting business. Taxes 161 13 attributable to intangible property and furniture and 161 14 furnishings shall not be refunded. 161 15 To receive the refund a claim shall be filed by the 161 16 eligible business or a supporting business with the department 161 17 of revenue and finance as follows: 161 18 1. The contractor or subcontractor shall state under oath, 161 19 on forms provided by the department, the amount of the sales 161 20 of goods, wares, or merchandise or services rendered, 161 21 furnished, or performed including water, sewer, gas, and 161 22 electric utility services for use in the economic development 161 23 area upon which sales or use tax has been paid prior to the 161 24 project completion, and shall file the forms with the eligible 161 25 business or supporting business before final settlement is 161 26 made. 161 27 2. The eligible business or a supporting business shall, 161 28 not more than one year after project completion, make 161 29 application to the department for any refund of the amount of 161 30 the sales and use taxes paid pursuant to chapter422 or423 161 31 upon any goods, wares, or merchandise, or services rendered, 161 32 furnished, or performed, including water, sewer, gas, and 161 33 electric utility services. The application shall be made in 161 34 the manner and upon forms to be provided by the department, 161 35 and the department shall audit the claim and, if approved, 162 1 issue a warrant to the eligible business or supporting 162 2 business in the amount of the sales or use tax which has been 162 3 paid to the state of Iowa under a contract. A claim filed by 162 4 the eligible business or a supporting business in accordance 162 5 with this section shall not be denied by reason of a 162 6 limitation provision set forth in chapter 421, 422,or 423. 162 7 3. A contractor or subcontractor who willfully makes a 162 8 false report of tax paid under the provisions of this section 162 9 is guilty of a simple misdemeanor and in addition is liable 162 10 for the payment of the tax and any applicable penalty and 162 11 interest. 162 12 Sec. 153. Section 15.334A, Code 2003, is amended to read 162 13 as follows: 162 14 15.334A SALES AND USE TAX EXEMPTION. 162 15 An eligible business may claim an exemption from sales and 162 16 use taxation under section422.45423.3, subsection2746, for 162 17 property which is exempt from taxation under section 15.334, 162 18 notwithstanding the requirements of section422.45423.3, 162 19 subsection2746, or any other provision of the Code to the 162 20 contrary. 162 21 Sec. 154. Section 15A.9, subsections 5, 6, and 7, Code 162 22 2003, are amended to read as follows: 162 23 5. PROPERTY TAX EXEMPTION. 162 24 a. All property, as defined in section 427A.1, subsection 162 25 1, paragraphs "e" and "j", Code 1993, used by the primary 162 26 business or a supporting business and located within the zone, 162 27 shall be exempt from property taxation for a period of twenty 162 28 years beginning with the year it is first assessed for 162 29 taxation. In order to be eligible for this exemption, the 162 30 property shall be acquired or leased by the primary business 162 31 or a supporting business or relocated by the primary business 162 32 or a supporting business to the zone from outside the state 162 33 prior to project completion. 162 34 b. Property which is exempt for property tax purposes 162 35 under this subsection is eligible for the sales and use tax 163 1 exemption under section422.45423.3, subsection2746, 163 2 notwithstanding that subsection or any other provision of the 163 3 Code to the contrary. 163 4 6. SALES, SERVICES, AND USE TAX REFUND. Taxes paid 163 5 pursuant to chapter422 or423 on thegross receiptssales 163 6 price or rental price of property purchased or rented by the 163 7 primary business or a supporting business for use by the 163 8 primary business or a supporting business within the zone or 163 9 on gas, electricity, water, and sewer utility services prior 163 10 to project completion shall be refunded to the primary 163 11 business or supporting business if the item was purchased or 163 12 the service was performed or received prior to project 163 13 completion. Claims under this section shall be submitted on 163 14 forms provided by the department of revenue and finance not 163 15 later than six months after project completion. The refund in 163 16 this subsection shall not apply to furniture or furnishings, 163 17 or intangible property. 163 18 7. SALES, SERVICES, AND USE TAX REFUND – CONTRACTOR OR 163 19 SUBCONTRACTOR. The primary business or a supporting business 163 20 shall be entitled to a refund of the sales and use taxes paid 163 21 underchapters 422 andchapter 423 for gas, electricity, 163 22 water, or sewer utility services, goods, wares, or 163 23 merchandise, or on services rendered, furnished, or performed 163 24 to or for a contractor or subcontractor and used in the 163 25 fulfillment of a written contract relating to the construction 163 26 or equipping of a facility within the zone of the primary 163 27 business or a supporting business. Taxes attributable to 163 28 intangible property and furniture and furnishings shall not be 163 29 refunded. 163 30 To receive the refund a claim shall be filed by the primary 163 31 business or a supporting business with the department of 163 32 revenue and finance as follows: 163 33 a. The contractor or subcontractor shall state under oath, 163 34 on forms provided by the department, the amount of the sales 163 35 of goods, wares, or merchandise or services rendered, 164 1 furnished, or performed including water, sewer, gas, and 164 2 electric utility services for use in the zone upon which sales 164 3 or use tax has been paid prior to the project completion, and 164 4 shall file the forms with the primary business or supporting 164 5 business before final settlement is made. 164 6 b. The primary business or a supporting business shall, 164 7 not more than six months after project completion, make 164 8 application to the department for any refund of the amount of 164 9 the sales and use taxes paid pursuant to chapter422 or423 164 10 upon any goods, wares, or merchandise, or services rendered, 164 11 furnished, or performed, including water, sewer, gas, and 164 12 electric utility services. The application shall be made in 164 13 the manner and upon forms to be provided by the department, 164 14 and the department shall audit the claim and, if approved, 164 15 issue a warrant to the primary business or supporting business 164 16 in the amount of the sales or use tax which has been paid to 164 17 the state of Iowa under a contract. A claim filed by the 164 18 primary business or a supporting business in accordance with 164 19 this subsection shall not be denied by reason of a limitation 164 20 provision set forth in chapter 421, 422, or 423. 164 21 c. A contractor or subcontractor who willfully makes a 164 22 false report of tax paid under the provisions of this 164 23 subsection is guilty of a simple misdemeanor and in addition 164 24 is liable for the payment of the tax and any applicable 164 25 penalty and interest. 164 26 Sec. 155. Section 28A.17, unnumbered paragraph 1, Code 164 27 2003, is amended to read as follows: 164 28 If an authority is established as provided in section 28A.6 164 29 and after approval of a referendum by a simple majority of 164 30 votes cast in each metropolitan area in favor of the sales and 164 31 services tax, the governing board of a county in this state 164 32 within a metropolitan area which is part of the authority 164 33 shall impose, at the request of the authority, a local sales 164 34 and services tax at the rate of one-fourth of one percent on 164 35gross receiptsthe sales price taxed by this state under 165 1chapter 422, division IVsection 423.2, within the 165 2 metropolitan area located in this state. The referendum shall 165 3 be called by resolution of the board and shall be held as 165 4 provided in section 28A.6 to the extent applicable. The 165 5 ballot proposition shall contain a statement as to the 165 6 specific purpose or purposes for which the revenues shall be 165 7 expended and the date of expiration of the tax. The local 165 8 sales and services tax shall be imposed on the same basis, 165 9 with the same exceptions, and following the same 165 10 administrative procedures as provided for a county under 165 11 sections 422B.8 and 422B.9. The amount of the sale, for the 165 12 purposes of determining the amount of the local sales and 165 13 services tax under this section, does not include the amount 165 14 of any local sales and services tax imposed under sections 165 15 422B.8 and 422B.9. 165 16 Sec. 156. Section 29C.15, Code 2003, is amended to read as 165 17 follows: 165 18 29C.15 TAX-EXEMPT PURCHASES. 165 19 All purchases under the provisions of this chapter shall be 165 20 exempt from the taxes imposed by sections422.43423.2 and 165 21423.2423.5. 165 22 Sec. 157. Section 99E.10, subsection 1, paragraph b, Code 165 23 2003, is amended to read as follows: 165 24 b. An amount equal to the product of the state sales tax 165 25 rate under section422.43423.2 multiplied by the gross sales 165 26 price of each ticket or share sold shall be deducted as the 165 27 sales tax on the sale of that ticket or share, remitted to the 165 28 treasurer of state and deposited into the state general fund. 165 29 Sec. 158. Section 123.187, subsection 2, Code 2003, is 165 30 amended to read as follows: 165 31 2. A winery licensed or permitted pursuant to laws 165 32 regulating alcoholic beverages in a state which affords this 165 33 state an equal reciprocal shipping privilege may ship into 165 34 this state by private common carrier, to a person twenty-one 165 35 years of age or older, not more than eighteen liters of wine 166 1 per month, for consumption or use by the person. Such wine 166 2 shall not be resold. Shipment of wine pursuant to this 166 3 subsection is not subject to sales tax under section422.43166 4 423.2, use tax under section423.2423.5, or the wine 166 5 gallonage tax under section 123.183, and does not require a 166 6 refund value for beverage container control purposes under 166 7 chapter 455C. 166 8 Sec. 159. Section 262.54, Code 2003, is amended to read as 166 9 follows: 166 10 262.54 COMPUTER SALES. 166 11 Sales, by an institution under the control of the board of 166 12 regents, of computer equipment, computer software, and 166 13 computer supplies to students and faculty at the institution 166 14 are retail sales under chapter422, division IV423. 166 15 Sec. 160. Section 303.9, subsection 2, Code 2003, is 166 16 amended to read as follows: 166 17 2. The department may sell mementos and other items 166 18 relating to Iowa history and historic sites on the premises of 166 19 property under control of the department and at the state 166 20 capitol. Notwithstanding sections 18.12 and 18.16, the 166 21 department may directly and independently enter into rental 166 22 and lease agreements with private vendors for the purpose of 166 23 selling mementos. All fees and income produced by the sales 166 24 and rental or lease agreements shall be credited to the 166 25 account of the department. The mementos and other items sold 166 26 by the department or vendors under this subsection are exempt 166 27 from section 18.6.The department is not a retailer under166 28chapter 422 and the sale of such mementos and other items by166 29the department is not a retail sale under chapter 422 and is166 30exempt from the sales tax.166 31 Sec. 161. Section 312.1, subsection 4, Code 2003, is 166 32 amended to read as follows: 166 33 4. To the extent provided in section423.24423.43, 166 34 subsection 1, paragraph "b", from revenue derived from the use 166 35 tax, under chapter 423 on motor vehicles, trailers, and motor 167 1 vehicle accessories and equipment. 167 2 Sec. 162. Section 312.2, subsections 14 and 16, Code 2003, 167 3 are amended to read as follows: 167 4 14. The treasurer of state, before making the allotments 167 5 provided for in this section, shall credit monthly from the 167 6 road use tax fund to the general fund of the state from 167 7 revenue credited to the road use tax fund under section423.24167 8 423.43, subsection 1, paragraph "b", an amount equal to one- 167 9 twentieth of eighty percent of the revenue from the operation 167 10 of section423.7423.26. 167 11 There is appropriated from the general fund of the state 167 12 for each fiscal year to the state department of transportation 167 13 the amount of revenues credited to the general fund of the 167 14 state during the fiscal year under this subsection to be used 167 15 for purposes of public transit assistance under chapter 324A. 167 16 16. The treasurer of state, before making the allotments 167 17 provided for in this section, shall credit monthly from the 167 18 road use tax fund to the motorcycle rider education fund 167 19 established in section 321.180B, an amount equal to one dollar 167 20 per year of license validity for each issued or renewed 167 21 driver's license which is valid for the operation of a 167 22 motorcycle. Moneys credited to the motorcycle rider education 167 23 fund under this subsection shall be taken from moneys credited 167 24 to the road use tax fund under section423.24423.43. 167 25 Sec. 163. Section 321.20, subsection 5, Code 2003, is 167 26 amended to read as follows: 167 27 5. The amount of tax to be paid under section423.7167 28 423.26. 167 29 Sec. 164. Section 321.24, subsections 1 and 3, Code 2003, 167 30 are amended to read as follows: 167 31 1. Upon receipt of the application for title and payment 167 32 of the required fees for a motor vehicle, trailer, or 167 33 semitrailer, the county treasurer or the department shall, 167 34 when satisfied as to the application's genuineness and 167 35 regularity, and, in the case of a mobile home or manufactured 168 1 home, that taxes are not owing under chapter 435, issue a 168 2 certificate of title and, except for a mobile home or 168 3 manufactured home, a registration receipt, and shall file the 168 4 application, the manufacturer's or importer's certificate, the 168 5 certificate of title, or other evidence of ownership, as 168 6 prescribed by the department. The registration receipt shall 168 7 be delivered to the owner and shall contain upon its face the 168 8 date issued, the name and address of the owner, the 168 9 registration number assigned to the vehicle, the amount of the 168 10 fee paid, the amount of tax paid pursuant to section423.7168 11 423.26, the type of fuel used, and a description of the 168 12 vehicle as determined by the department, and upon the reverse 168 13 side a form for notice of transfer of the vehicle. The name 168 14 and address of any lessee of the vehicle shall not be printed 168 15 on the registration receipt or certificate of title. Up to 168 16 three owners may be listed on the registration receipt and 168 17 certificate of title. 168 18 3. The certificate of title shall contain upon its face 168 19 the identical information required upon the face of the 168 20 registration receipt. In addition, the certificate of title 168 21 shall contain a statement of the owner's title, the title 168 22 number assigned to the owner or owners of the vehicle, the 168 23 amount of tax paid pursuant to section423.7423.26, the name 168 24 and address of the previous owner, and a statement of all 168 25 security interests and encumbrances as shown in the 168 26 application, upon the vehicle described, including the nature 168 27 of the security interest, date of notation, and name and 168 28 address of the secured party. 168 29 Sec. 165. Section 321.34, subsection 7, paragraph c, Code 168 30 2003, is amended to read as follows: 168 31 c. The fees for a collegiate registration plate are as 168 32 follows: 168 33 (1) A registration fee of twenty-five dollars. 168 34 (2) A special collegiate registration fee of twenty-five 168 35 dollars. 169 1 These fees are in addition to the regular annual 169 2 registration fee. The fees collected by the director under 169 3 this subsection shall be paid monthly to the treasurer of 169 4 state and credited by the treasurer of state to the road use 169 5 tax fund. Notwithstanding section423.24423.43 and prior to 169 6 the revenues being credited to the road use tax fund under 169 7 section423.24423.43, subsection 1, paragraph "b", the 169 8 treasurer of state shall credit monthly from those revenues 169 9 respectively, to Iowa state university of science and 169 10 technology, the university of northern Iowa, and the state 169 11 university of Iowa, the amount of the special collegiate 169 12 registration fees collected in the previous month for 169 13 collegiate registration plates designed for the university. 169 14 The moneys credited are appropriated to the respective 169 15 universities to be used for scholarships for students 169 16 attending the universities. 169 17 Sec. 166. Section 321.34, subsection 11, paragraph c, Code 169 18 2003, is amended to read as follows: 169 19 c. The special natural resources fee for letter number 169 20 designated natural resources plates is thirty-five dollars. 169 21 The fee for personalized natural resources plates is forty- 169 22 five dollars which shall be paid in addition to the special 169 23 natural resources fee of thirty-five dollars. The fees 169 24 collected by the director under this subsection shall be paid 169 25 monthly to the treasurer of state and credited to the road use 169 26 tax fund. Notwithstanding section423.24423.43, and prior to 169 27 the crediting of revenues to the road use tax fund under 169 28 section423.24423.43, subsection 1, paragraph "b", the 169 29 treasurer of state shall credit monthly from those revenues to 169 30 the Iowa resources enhancement and protection fund created 169 31 pursuant to section 455A.18, the amount of the special natural 169 32 resources fees collected in the previous month for the natural 169 33 resources plates. 169 34 Sec. 167. Section 321.34, subsection 11A, paragraph c, 169 35 Code 2003, is amended to read as follows: 170 1 c. The special fee for letter number designated love our 170 2 kids plates is thirty-five dollars. The fee for personalized 170 3 love our kids plates is twenty-five dollars, which shall be 170 4 paid in addition to the special love our kids fee of thirty- 170 5 five dollars. The fees collected by the director under this 170 6 subsection shall be paid monthly to the treasurer of state and 170 7 credited to the road use tax fund. Notwithstanding section 170 8423.24423.43, and prior to the crediting of revenues to the 170 9 road use tax fund under section423.24423.43, subsection 1, 170 10 paragraph "b", the treasurer of state shall transfer monthly 170 11 from those revenues to the Iowa department of public health 170 12 the amount of the special fees collected in the previous month 170 13 for the love our kids plates. Notwithstanding section 8.33, 170 14 moneys transferred under this subsection shall not revert to 170 15 the general fund of the state. 170 16 Sec. 168. Section 321.34, subsection 11B, paragraph c, 170 17 Code 2003, is amended to read as follows: 170 18 c. The special fee for letter number designated motorcycle 170 19 rider education plates is thirty-five dollars. The fee for 170 20 personalized motorcycle rider education plates is twenty-five 170 21 dollars, which shall be paid in addition to the special 170 22 motorcycle rider education fee of thirty-five dollars. The 170 23 fees collected by the director under this subsection shall be 170 24 paid monthly to the treasurer of state and credited to the 170 25 road use tax fund. Notwithstanding section423.24423.43, and 170 26 prior to the crediting of revenues to the road use tax fund 170 27 under section423.24423.43, subsection 1, paragraph "b", the 170 28 treasurer of state shall transfer monthly from those revenues 170 29 to the department for use in accordance with section 321.180B, 170 30 subsection 6, the amount of the special fees collected in the 170 31 previous month for the motorcycle rider education plates. 170 32 Sec. 169. Section 321.34, subsection 13, paragraph d, Code 170 33 2003, is amended to read as follows: 170 34 d. A state agency may submit a request to the department 170 35 recommending a special registration plate. The alternate fee 171 1 for letter number designated plates is thirty-five dollars 171 2 with a ten dollar annual special renewal fee. The fee for 171 3 personalized plates is twenty-five dollars which is in 171 4 addition to the alternative fee of thirty-five dollars with an 171 5 annual personalized plate renewal fee of five dollars which is 171 6 in addition to the special renewal fee of ten dollars. The 171 7 alternate fees are in addition to the regular annual 171 8 registration fee. The alternate fees collected under this 171 9 paragraph shall be paid monthly to the treasurer of state and 171 10 credited to the road use tax fund. Notwithstanding section 171 11423.24423.43, and prior to the crediting of the revenues to 171 12 the road use tax fund under section423.24423.43, subsection 171 13 1, paragraph "b", the treasurer of state shall credit monthly 171 14 the amount of the alternate fees collected in the previous 171 15 month to the state agency that recommended the special 171 16 registration plate. 171 17 Sec. 170. Section 321.34, subsection 21, paragraph c, Code 171 18 2003, is amended to read as follows: 171 19 c. The special fees collected by the director under this 171 20 subsection shall be paid monthly to the treasurer of state and 171 21 credited to the road use tax fund. Notwithstanding section 171 22423.24423.43, and prior to the crediting of revenues to the 171 23 road use tax fund under section423.24423.43, subsection 1, 171 24 paragraph "b", the treasurer of state shall credit monthly to 171 25 the Iowa heritage fund created under section 303.9A the amount 171 26 of the special fees collected in the previous month for the 171 27 Iowa heritage plates. 171 28 Sec. 171. Section 321.34, subsection 22, paragraph b, Code 171 29 2003, is amended to read as follows: 171 30 b. The special school transportation fee for letter number 171 31 designated education plates is thirty-five dollars. The fee 171 32 for personalized education plates is twenty-five dollars, 171 33 which shall be paid in addition to the special school 171 34 transportation fee of thirty-five dollars. The annual special 171 35 school transportation fee is ten dollars for letter number 172 1 designated registration plates and is fifteen dollars for 172 2 personalized registration plates which shall be paid in 172 3 addition to the regular annual registration fee. The fees 172 4 collected by the director under this subsection shall be paid 172 5 monthly to the treasurer of state and credited to the road use 172 6 tax fund. Notwithstanding section423.24423.43, and prior to 172 7 the crediting of revenues to the road use tax fund under 172 8 section423.24423.43, subsection 1, paragraph "b", the 172 9 treasurer of state shall transfer monthly from those revenues 172 10 to the school budget review committee in accordance with 172 11 section 257.31, subsection 17, the amount of the special 172 12 school transportation fees collected in the previous month for 172 13 the education plates. 172 14 Sec. 172. Section 321F.9, Code 2003, is amended to read as 172 15 follows: 172 16 321F.9 OPTION TO PURCHASE – DEALER'S LICENSE. 172 17 Any person engaged in business in this state shall not 172 18 enter into any agreement for the use of a motor vehicle under 172 19 the terms of whichsuchthat person grants to another an 172 20 option to purchasesuchthe motor vehicle without first having 172 21 obtained a motor vehicle dealer's license under the provisions 172 22 of chapter 322, and all sales of motor vehicles under such 172 23 options shall be subject to sales or use taxes imposed under 172 24 the provisions ofchapters 422 andchapter 423. Nothing 172 25 contained in this section shall require such person to have a 172 26 place of business as provided by section 322.6, subsection 8. 172 27 Sec. 173. Section 327I.26, Code 2003, is amended to read 172 28 as follows: 172 29 327I.26 APPROPRIATION TO AUTHORITY. 172 30 Notwithstanding section423.24423.43, and prior to the 172 31 application of section423.24423.43, subsection 1, paragraph 172 32 "b", there shall be deposited into the general fund of the 172 33 state and is appropriated to the authority from eighty percent 172 34 of the revenues derived from the operation of section423.7172 35 423.26, the amounts certified by the authority under section 173 1 327I.25. However, the total amount deposited into the general 173 2 fund and appropriated to the Iowa railway finance authority 173 3 under this section shall not exceed two million dollars 173 4 annually. Moneys appropriated to the Iowa railway finance 173 5 authority under this section are appropriated only for the 173 6 payment of principal and interest on obligations or the 173 7 payment of leases guaranteed by the authority as provided 173 8 under section 327I.25. 173 9 Sec. 174. Section 328.26, unnumbered paragraph 2, Code 173 10 2003, is amended to read as follows: 173 11 When an aircraft is registered to a person for the first 173 12 time the fee submitted to the department shall include the tax 173 13 imposed by section422.43423.2 or section423.2423.5 or 173 14 evidence of the exemption of the aircraft from the tax imposed 173 15 under section422.43423.2 or423.2423.5. 173 16 Sec. 175. Section 331.557, subsection 3, Code 2003, is 173 17 amended to read as follows: 173 18 3. Collect the use tax on vehicles subject to registration 173 19 as provided in sections423.6, 423.7, and 423.7A423.14, 173 20 423.26, and 423.27. 173 21 Sec. 176. Section 357A.15, unnumbered paragraph 2, Code 173 22 2003, is amended to read as follows: 173 23 A rural water district organized under chapter 504A shall 173 24 receive a refund of sales or use taxes upon submitting an 173 25 application to the department of revenue and finance forsuch173 26 the refund of taxes imposed upon thegross receiptssales 173 27 price of all sales of building materials, supplies, or 173 28 equipment sold to a contractor or used in the fulfillment of a 173 29 written contract for the construction of facilities forsuch173 30 the rural water district to the same extent as a rural water 173 31 district organized under this chapter may obtain a refund 173 32 under section422.45423.4, subsection71. 173 33 Sec. 177. Section 421.10, Code 2003, is amended to read as 173 34 follows: 173 35 421.10 APPEAL PERIOD – APPLICABILITY. 174 1 The appeal period for revision of assessment of tax, 174 2 interest, and penalties set out under section 422.28,422.54174 3 423.37, 437A.9, 437A.22, 452A.64, 453A.29, or 453A.46 applies 174 4 to appeals to notices from the department denying changes in 174 5 filing methods, denying refund claims, and denying portions of 174 6 refund claims for the tax covered by that section, and notices 174 7 of any department action directed to a specific taxpayer, 174 8 other than licensing, which involves a calculation. 174 9 Sec. 178. Section 421.17, subsection 22B, Code 2003, is 174 10 amended to read as follows: 174 11 22B.EnterTo enter into agreements or compacts with 174 12 remote sellers, retailers, or third-party providers for the 174 13 voluntary collection of Iowa sales or use taxes attributable 174 14 to sales into Iowaand to enter. The director has the 174 15 authority to enter into and perform all duties required of the 174 16 office of director by multistate agreements or compacts that 174 17 provide for thevoluntarycollection of sales and use taxes, 174 18 including joint audits with other states or audits on behalf 174 19 of other states. The agreements or compacts shall generally 174 20 conform to the provisions of Iowa sales and use tax statutes. 174 21 All fees for services, reimbursements, remuneration, 174 22 incentives, and costs incurred by the department associated 174 23 with these agreements or compacts may be paid or reimbursed 174 24 from the additional revenue generated. An amount is 174 25 appropriated from amounts generated to pay or reimburse all 174 26 costs associated with this subsection. Persons entering into 174 27 an agreement or compact with the department pursuant to this 174 28 subsection are subject to the requirements and penalties of 174 29 the confidentiality laws of this state regarding tax 174 30 information. Notwithstanding any other provisions of law, the 174 31 contract, agreement, or compact shall provide for the 174 32 registration, collection, report, and verification of amounts 174 33 subject to this subsection. 174 34 Sec. 179. Section 421.17, subsection 29, paragraph j, Code 174 35 2003, is amended to read as follows: 175 1 j. The department's existing right to credit against tax 175 2 due or to become due under section 422.73 or 423.47 is not to 175 3 be impaired by a right granted to or a duty imposed upon the 175 4 department or other state agency by this subsection. This 175 5 subsection is not intended to impose upon the department any 175 6 additional requirement of notice, hearing, or appeal 175 7 concerning the right to credit against tax due under section 175 8 422.73 or 423.47. 175 9 Sec. 180. Section 421.17, subsection 34, paragraph i, Code 175 10 2003, is amended to read as follows: 175 11 i. The director may distribute to credit reporting 175 12 entities and for publication the names, addresses, and amounts 175 13 of indebtedness owed to or being collected by the state if the 175 14 indebtedness is subject to the centralized debt collection 175 15 procedure established in this subsection. The director shall 175 16 adopt rules to administer this paragraph, and the rules shall 175 17 provide guidelines by which the director shall determine which 175 18 names, addresses, and amounts of indebtedness may be 175 19 distributed for publication. The director may distribute 175 20 information for publication pursuant to this paragraph, 175 21 notwithstanding sections 422.20, 422.72, and423.23423.42, or 175 22 any other provision of state law to the contrary pertaining to 175 23 confidentiality of information. 175 24 Sec. 181. Section 421.26, Code 2003, is amended to read as 175 25 follows: 175 26 421.26 PERSONAL LIABILITY FOR TAX DUE. 175 27 If a licensee or other person under section 452A.65, a 175 28 retailer or purchaser under chapter 422A or 422B, or section 175 29422.52423.31 or 423.33, or a retailer or purchaser under 175 30 section423.13423.32 or a user under section423.14423.34 175 31 fails to pay a tax under those sections when due, an officer 175 32 of a corporation or association, notwithstanding sections 175 33 490A.601 and 490A.602, a member or manager of a limited 175 34 liability company, or a partner of a partnership, having 175 35 control or supervision of or the authority for remitting the 176 1 tax payments and having a substantial legal or equitable 176 2 interest in the ownership of the corporation, association, 176 3 limited liability company, or partnership, who has 176 4 intentionally failed to pay the tax is personally liable for 176 5 the payment of the tax, interest, and penalty due and unpaid. 176 6 However, this section shall not apply to taxes on accounts 176 7 receivable. The dissolution of a corporation, association, 176 8 limited liability company, or partnership shall not discharge 176 9 a person's liability for failure to remit the tax due. 176 10 Sec. 182. Section 421.28, Code 2003, is amended to read as 176 11 follows: 176 12 421.28 EXCEPTIONS TO SUCCESSOR LIABILITY. 176 13 The immediate successor to a licensee's or retailer's 176 14 business or stock of goods under chapter 422A or 422B, or 176 15 section422.52, 423.13, 423.14,423.33 or 452A.65, is not 176 16 personally liable for the amount of delinquent tax, interest, 176 17 or penalty due and unpaid if the immediate successor shows 176 18 that the purchase of the business or stock of goods was made 176 19 in good faith that no delinquent tax, interest, or penalty was 176 20 due and unpaid. For purposes of this section the immediate 176 21 successor shows good faith by evidence that the department had 176 22 provided the immediate successor with a certified statement 176 23 that no delinquent tax, interest, or penalty is unpaid, or 176 24 that the immediate successor had taken in good faith a 176 25 certified statement from the licensee, retailer, or seller 176 26 that no delinquent tax, interest, or penalty is unpaid. When 176 27 requested to do so by a person with whom the licensee or 176 28 retailer is negotiating the sale of the business or stock of 176 29 goods, the director of revenue and finance shall, upon being 176 30 satisfied that such a situation exists, inform that person as 176 31 to the amount of unpaid delinquent tax, interest, or penalty 176 32 due by the licensee or the retailer. The giving of the 176 33 information under this circumstance is not a violation of 176 34 section 422.20, 422.72, or 452A.63. 176 35 Sec. 183. Section 421B.11, unnumbered paragraph 3, Code 177 1 2003, is amended to read as follows: 177 2 Judicial review of the actions of the director may be 177 3 sought in accordance with the terms of the Iowa administrative 177 4 procedure Act, and section422.55423.38. 177 5 Sec. 184. Section 422.7, subsection 21, paragraph a, 177 6 subparagraph (1), unnumbered paragraph 1, Code 2003, is 177 7 amended to read as follows: 177 8 Net capital gain from the sale of real property used in a 177 9 business, in which the taxpayer materially participated for 177 10 ten years, as defined in section 469(h) of the Internal 177 11 Revenue Code, and which has been held for a minimum of ten 177 12 years, or from the sale of a business, as defined in section 177 13422.42423.1, in which the taxpayer was employed or in which 177 14 the taxpayer materially participated for ten years, as defined 177 15 in section 469(h) of the Internal Revenue Code, and which has 177 16 been held for a minimum of ten years. The sale of a business 177 17 means the sale of all or substantially all of the tangible 177 18 personal property or service of the business. 177 19 Sec. 185. Section 422.73, subsection 1, Code 2003, is 177 20 amended by striking the subsection. 177 21 Sec. 186. Section 422A.1, unnumbered paragraphs 1, 3, 7, 177 22 and 8, Code 2003, are amended to read as follows: 177 23 A city or county may impose by ordinance of the city 177 24 council or by resolution of the board of supervisors a hotel 177 25 and motel tax, at a rate not to exceed seven percent, which 177 26 shall be imposed in increments of one or more full percentage 177 27 points upon thegross receiptssales price from the renting of 177 28 sleeping rooms, apartments, or sleeping quarters in a hotel, 177 29 motel, inn, public lodging house, rooming house, manufactured 177 30 or mobile home which is tangible personal property, or tourist 177 31 court, or in any place where sleeping accommodations are 177 32 furnished to transient guests for rent, whether with or 177 33 without meals; except thegross receiptssales price from the 177 34 renting of sleeping rooms in dormitories and in memorial 177 35 unions at all universities and colleges located in the state 178 1 of Iowa and the guests of a religious institution if the 178 2 property is exempt under section 427.1, subsection 8, and the 178 3 purpose of renting is to provide a place for a religious 178 4 retreat or function and not a place for transient guests 178 5 generally. The tax when imposed by a city shall apply only 178 6 within the corporate boundaries of that city and when imposed 178 7 by a county shall apply only outside incorporated areas within 178 8 that county. "Renting" and "rent" include any kind of direct 178 9 or indirect charge for such sleeping rooms, apartments, or 178 10 sleeping quarters, or their use. However, the tax does not 178 11 apply to thegross receiptssales price from the renting of a 178 12 sleeping room, apartment, or sleeping quarters while rented by 178 13 the same person for a period of more than thirty-one 178 14 consecutive days. 178 15 A local hotel and motel tax shall be imposed on January 1, 178 16 April 1, July 1, or October 1, following the notification of 178 17 the director of revenue and finance. Once imposed, the tax 178 18 shall remain in effect at the rate imposed for a minimum of 178 19 one year. A local hotel and motel tax shall terminate only on 178 20 March 31, June 30, September 30, or December 31. At least 178 21forty-fivesixty days prior to the tax being effective or 178 22 prior to a revision in the tax rate, or prior to the repeal of 178 23 the tax, a city or county shall provide notice by mail of such 178 24 action to the director of revenue and finance. 178 25 No tax permit other than the state sales tax permit 178 26 required under section422.53423.36 may be required by local 178 27 authorities. 178 28 The tax levied shall be in addition to any state sales tax 178 29 imposed under section422.43423.2. Section 422.25, 178 30 subsection 4, sections 422.30,422.48 to 422.52, 422.54 to178 31422.58,422.67, and 422.68, section 422.69, subsection 1,and178 32 sections 422.70 to 422.75, section 423.14, subsection 1, and 178 33 sections 423.23, 423.24, 423.25, 423.31, 423.33, 423.35, 178 34 423.37 to 423.42, and 423.47, consistent with the provisions 178 35 of this chapter, apply with respect to the taxes authorized 179 1 under this chapter, in the same manner and with the same 179 2 effect as if the hotel and motel taxes were retail sales taxes 179 3 within the meaning of those statutes. Notwithstanding this 179 4 paragraph, the director shall provide for quarterly filing of 179 5 returnsas prescribed in section 422.51and for other than 179 6 quarterly filing of returns both as prescribed in section 179 7422.51, subsection 2423.31. The director may require all 179 8 persons, as defined in section422.42423.1, who are engaged 179 9 in the business of derivinggross receiptsany sales price 179 10 subject to tax under this chapter, to register with the 179 11 department. 179 12 Sec. 187. Section 422B.8, Code 2003, is amended to read as 179 13 follows: 179 14 422B.8 LOCAL SALES AND SERVICES TAX. 179 15 A local sales and services tax at the rate of not more than 179 16 one percent may be imposed by a county on thegross receipts179 17 sales price taxed by the state under chapter422423,division179 18IVsubchapter II. A local sales and services tax shall be 179 19 imposed on the same basis as the state sales and services tax 179 20 or in the case of the use of natural gas, natural gas service, 179 21 electricity, or electric service on the same basis as the 179 22 state use tax and shall not be imposed on the sale of any 179 23 property or on any service not taxed by the state, except the 179 24 tax shall not be imposed on thegross receiptssales price 179 25 from the sale of motor fuel or special fuel as defined in 179 26 chapter 452A which is consumed for highway use or in 179 27 watercraft or aircraft if the fuel tax is paid on the 179 28 transaction and a refund has not or will not be allowed, on 179 29 thegross receiptssales price from the rental of rooms, 179 30 apartments, or sleeping quarters which are taxed under chapter 179 31 422A during the period the hotel and motel tax is imposed, on 179 32 thegross receiptssales price from the sale of equipment by 179 33 the state department of transportation, on thegross receipts179 34 sales price from the sale of self-propelled building 179 35 equipment, pile drivers, motorized scaffolding, or attachments 180 1 customarily drawn or attached to self-propelled building 180 2 equipment, pile drivers, and motorized scaffolding, including 180 3 auxiliary attachments which improve the performance, safety, 180 4 operation, or efficiency of the equipment and replacement 180 5 parts and are directly and primarily used by contractors, 180 6 subcontractors, and builders for new construction, 180 7 reconstruction, alterations, expansion, or remodeling of real 180 8 property or structures, and on thegross receiptssales price 180 9 from the sale of a lottery ticket or share in a lottery game 180 10 conducted pursuant to chapter 99E and except the tax shall not 180 11 be imposed on thegross receiptssales price from the sale or 180 12 use of natural gas, natural gas service, electricity, or 180 13 electric service in a city or county where thegross receipts180 14 sales price from the sale of natural gas or electric energy 180 15 are subject to a franchise fee or user fee during the period 180 16 the franchise or user fee is imposed. A local sales and 180 17 services tax is applicable to transactions within those 180 18 incorporated and unincorporated areas of the county where it 180 19 is imposed and shall be collected by all persons required to 180 20 collect stategross receiptssales taxes. However, a person 180 21 required to collect state retail sales tax under chapter422180 22 423,division IVsubchapter V or VI, is not required to 180 23 collect local sales and services tax on transactions delivered 180 24 within the area where the local sales and services tax is 180 25 imposed unless the person has physical presence in that taxing 180 26 area. All cities contiguous to each other shall be treated as 180 27 part of one incorporated area and the tax would be imposed in 180 28 each of those contiguous cities only if the majority of those 180 29 voting in the total area covered by the contiguous cities 180 30 favor its imposition. 180 31 The amount of the sale, for purposes of determining the 180 32 amount of the local sales and services tax, does not include 180 33 the amount of any stategross receipts taxessales tax. 180 34 A tax permit other than the state sales tax permit required 180 35 under section422.53 or 423.10423.36 shall not be required by 181 1 local authorities. 181 2 If a local sales and services tax is imposed by a county 181 3 pursuant to this chapter, a local excise tax at the same rate 181 4 shall be imposed by the county on the purchase price of 181 5 natural gas, natural gas service, electricity, or electric 181 6 service subject to tax under chapter 423, subchapter III, and 181 7 not exempted from tax by any provision of chapter 423, 181 8 subchapter III. The local excise tax is applicable only to 181 9 the use of natural gas, natural gas service, electricity, or 181 10 electric service within those incorporated and unincorporated 181 11 areas of the county where it is imposed and, except as 181 12 otherwise provided in this chapter, shall be collected and 181 13 administered in the same manner as the local sales and 181 14 services tax. For purposes of this chapter, "local sales and 181 15 services tax" shall also include the local excise tax. 181 16 Sec. 188. Section 422B.9, subsections 1 and 2, Code 2003, 181 17 are amended to read as follows: 181 18 1. a. A local sales and services tax shall be imposed 181 19 either January 1 or July 1 following the notification of the 181 20 director of revenue and finance but not sooner than ninety 181 21 days following the favorable election and not sooner than 181 22 sixty days following notice to sellers, as defined in section 181 23 423.1. However, a jurisdiction which has voted to continue 181 24 imposition of the tax may impose that tax without repeal of 181 25 the prior tax. 181 26 b. A local sales and services tax shall be repealed only 181 27 on June 30 or December 31 but not sooner than ninety days 181 28 following the favorable election if one is held. However, a 181 29 local sales and services tax shall not be repealed before the 181 30 tax has been in effect for one year. At least forty days 181 31 before the imposition or repeal of the tax, a county shall 181 32 provide notice of the action by certified mail to the director 181 33 of revenue and finance. 181 34 c. The imposition of or a rate change for a local sales 181 35 and service tax shall not be applied to purchases from a 182 1 printed catalog wherein a purchaser computes the local tax 182 2 based on rates published in the catalog unless a minimum of 182 3 one hundred twenty days' notice of the imposition or rate 182 4 change has been given to the seller from the catalog and the 182 5 first day of a calendar quarter has occurred on or after the 182 6 one hundred twentieth day. 182 7c.d. If a local sales and services tax has been imposed 182 8 prior to April 1, 2000, and at the time of the election a date 182 9 for repeal was specified on the ballot, the local sales and 182 10 services tax may be repealed on that date, notwithstanding 182 11 paragraph "b". 182 12 2. a. The director of revenue and finance shall 182 13 administer a local sales and services tax as nearly as 182 14 possible in conjunction with the administration of stategross182 15receiptssales tax laws. The director shall provide 182 16 appropriate forms or provide on the regular state tax forms 182 17 for reporting local sales and services tax liability. 182 18 b. The ordinance of a county board of supervisors imposing 182 19 a local sales and services tax shall adopt by reference the 182 20 applicable provisions of the appropriate sections ofchapter182 21422, division IV, andchapter 423. All powers and 182 22 requirements of the director to administer the stategross182 23receiptssales tax law and use tax law are applicable to the 182 24 administration of a local sales and services tax law and the 182 25 local excise tax, including but not limited to, the provisions 182 26 of section 422.25, subsection 4, sections 422.30,422.48 to182 27422.52, 422.54 to 422.58,422.67, and 422.68, section 422.69, 182 28 subsection 1, sections 422.70 to 422.75,423.6, subsections 2182 29to 4, and sections 423.11 to 423.18, and 423.21section 182 30 423.14, subsection 1 and subsection 2, paragraphs "b" through 182 31 "e", and sections 423.15, 423.23, 423.24, 423.25, 423.31 to 182 32 423.35, 423.37 to 423.42, 423.46, and 423.47. Local officials 182 33 shall confer with the director of revenue and finance for 182 34 assistance in drafting the ordinance imposing a local sales 182 35 and services tax. A certified copy of the ordinance shall be 183 1 filed with the director as soon as possible after passage. 183 2 c. Frequency of deposits and quarterly reports of a local 183 3 sales and services tax with the department of revenue and 183 4 finance are governed by the tax provisions in section422.52183 5 423.31. Local tax collections shall not be included in 183 6 computation of the total tax to determine frequency of filing 183 7 under section422.52423.31. 183 8 d. The director shall apply a boundary change of a county 183 9 or city imposing or collecting the local sales and service tax 183 10 to the imposition or collection of that tax only on the first 183 11 day of a calendar quarter which occurs sixty days or more 183 12 after the director has given notice of the boundary change to 183 13 sellers. 183 14 Sec. 189. Section 422C.2, subsections 4 and 6, Code 2003, 183 15 are amended to read as follows: 183 16 4. "Person" means person as defined in section422.42183 17 423.1. 183 18 6. "Rental price" means the consideration for renting an 183 19 automobile valued in money, and means the same as"gross183 20taxable services""sales price" as defined in section422.42183 21 423.1. 183 22 Sec. 190. Section 422C.3, Code 2003, is amended to read as 183 23 follows: 183 24 422C.3 TAX ON RENTAL OF AUTOMOBILES. 183 25 1. A tax of five percent is imposed upon the rental price 183 26 of an automobile if the rental transaction is subject to the 183 27 sales and services tax under chapter422423,division IV183 28 subchapter II, or the use tax under chapter 423, subchapter 183 29 III. The tax shall not be imposed on any rental transaction 183 30 not taxable under the state sales and services tax, as 183 31 provided in section422.45423.3, or the state use tax, as 183 32 provided in section423.4423.6, on automobile rental 183 33 receipts. 183 34 2. The lessor shall collect the tax by adding the tax to 183 35 the rental price of the automobile. 184 1 3. The tax, when collected, shall be stated as a distinct 184 2 item separate and apart from the rental price of the 184 3 automobile and the sales and services tax imposed under 184 4 chapter422423,division IVsubchapter II, or the use tax 184 5 imposed under chapter 423, subchapter III. 184 6 Sec. 191. Section 422C.4, Code 2003, is amended to read as 184 7 follows: 184 8 422C.4 ADMINISTRATION AND ENFORCEMENT. 184 9 All powers and requirements of the director of revenue and 184 10 finance to administer the stategross receiptssales tax law 184 11 under chapter422, division IV,423 are applicable to the 184 12 administration of the tax imposed under section 422C.3, 184 13 including but not limited to section 422.25, subsection 4, 184 14 sections 422.30,422.48 through 422.52, 422.54 through 422.58,184 15 422.67, and 422.68, section 422.69, subsection 1,andsections 184 16 422.70 through 422.75, section 423.14, subsection 1, and 184 17 sections 423.15, 423.23, 423.24, 423.25, 423.31, 423.33, 184 18 423.35 and 423.37 through 423.42, 423.45, 423.46, and 423.47. 184 19 However, as an exception to the powers specified in section 184 20422.52, subsection 1423.31, the director shall only require 184 21 the filing of quarterly reports. 184 22 Sec. 192. Section 422E.1, subsection 1, is amended to read 184 23 as follows: 184 24 1. A local sales and services tax for school 184 25 infrastructure purposes may be imposed by a county on behalf 184 26 of school districts as provided in this chapter. 184 27 If a local sales and services tax for school infrastructure 184 28 is imposed by a county pursuant to this chapter, a local 184 29 excise tax for school infrastructure at the same rate shall be 184 30 imposed by the county on the purchase price of natural gas, 184 31 natural gas service, electricity, or electric service subject 184 32 to tax under chapter 423, subchapter III, and not exempted 184 33 from tax by any provision of chapter 423, subchapter III. The 184 34 local excise tax for school infrastructure is applicable only 184 35 to the use of natural gas, natural gas service, electricity, 185 1 or electric service within those incorporated and 185 2 unincorporated areas of the county where it is imposed and, 185 3 except as otherwise provided in this chapter, shall be 185 4 collected and administered in the same manner as the local 185 5 sales and services tax for school infrastructure. For 185 6 purposes of this chapter, "local sales and services tax for 185 7 school infrastructure" shall also include the local excise tax 185 8 for school infrastructure. 185 9 Sec. 193. Section 422E.3, subsections 1, 2, and 3, Code 185 10 2003, are amended to read as follows: 185 11 1. If a majority of those voting on the question of 185 12 imposition of a local sales and services tax for school 185 13 infrastructure purposes favors imposition of the tax, the tax 185 14 shall be imposed by the county board of supervisors within the 185 15 county pursuant to section 422E.2, at the rate specified for a 185 16 ten-year duration on thegross receiptssales price taxed by 185 17 the state under chapter422423,division IVsubchapter II. 185 18 2. The tax shall be imposed on the same basis as the state 185 19 sales and services tax or in the case of the use of natural 185 20 gas, natural gas service, electricity, or electric service on 185 21 the same basis as the state use tax and shall not be imposed 185 22 on the sale of any property or on any service not taxed by the 185 23 state, except the tax shall not be imposed on thegross185 24receiptssales price from the sale of motor fuel or special 185 25 fuel as defined in chapter 452A which is consumed for highway 185 26 use or in watercraft or aircraft if the fuel tax is paid on 185 27 the transaction and a refund has not or will not be allowed, 185 28 on thegross receiptssales price from the rental of rooms, 185 29 apartments, or sleeping quarters which are taxed under chapter 185 30 422A during the period the hotel and motel tax is imposed, on 185 31 thegross receiptssales price from the sale of equipment by 185 32 the state department of transportation, on thegross receipts185 33 sales price from the sale of self-propelled building 185 34 equipment, pile drivers, motorized scaffolding, or attachments 185 35 customarily drawn or attached to self-propelled building 186 1 equipment, pile drivers, and motorized scaffolding, including 186 2 auxiliary attachments which improve the performance, safety, 186 3 operation, or efficiency of the equipment, and replacement 186 4 parts and are directly and primarily used by contractors, 186 5 subcontractors, and builders for new construction, 186 6 reconstruction, alterations, expansion, or remodeling of real 186 7 property or structures, and on thegross receiptssales price 186 8 from the sale of a lottery ticket or share in a lottery game 186 9 conducted pursuant to chapter 99E and except the tax shall not 186 10 be imposed on thegross receiptssales price from the sale or 186 11 use of natural gas, natural gas service, electricity, or 186 12 electric service in a city or county where thegross receipts186 13 sales price from the sale of natural gas or electric energy 186 14 are subject to a franchise fee or user fee during the period 186 15 the franchise or user fee is imposed. 186 16 3. The tax is applicable to transactions within the county 186 17 where it is imposed and shall be collected by all persons 186 18 required to collect stategross receiptssales or local excise 186 19 taxes. However, a person required to collect stateretail186 20 sales tax under chapter422, division IV,423 is not required 186 21 to collect local sales and services tax on transactions 186 22 delivered within the area where the local sales and services 186 23 tax is imposed unless the person has physical presence in that 186 24 taxing area. The amount of the sale, for purposes of 186 25 determining the amount of the tax, does not include the amount 186 26 of any stategross receiptssales taxes or excise taxes or 186 27 other local option sales or excise taxes. A tax permit other 186 28 than the state tax permit required under section422.53 or186 29423.10423.36 shall not be required by local authorities. 186 30 Sec. 194. Section 425.30, Code 2003, is amended to read as 186 31 follows: 186 32 425.30 NOTICES. 186 33 Section422.57423.39, subsection 1, shall apply to all 186 34 notices under this division. 186 35 Sec. 195. Section 425.31, Code 2003, is amended to read as 187 1 follows: 187 2 425.31 APPEALS. 187 3 Any person aggrieved by an act or decision of the director 187 4 of revenue and finance or the department of revenue and 187 5 finance under this division shall have the same rights of 187 6 appeal and review as provided in sections 421.1 and422.55187 7 423.38 and the rules of the department of revenue and finance. 187 8 Sec. 196. Section 452A.66, unnumbered paragraph 1, Code 187 9 2003, is amended to read as follows: 187 10 The appropriate state agency shall administer the taxes 187 11 imposed by this chapter in the same manner as and subject to 187 12 section 422.25, subsection 4 and section422.52, subsection 3187 13 423.35. 187 14 Sec. 197. Section 455B.455, Code 2003, is amended to read 187 15 as follows: 187 16 455B.455 SURCHARGE IMPOSED. 187 17 A land burial surcharge tax of two percent is imposed on 187 18 the fee for land burial of a hazardous waste. The owner of 187 19 the land burial facility shall remit the tax collected to the 187 20 director of revenue and finance after consultation with the 187 21 director according to rules that the director shall adopt. 187 22 The director shall forward a copy of the site license to the 187 23 director of revenue and finance which shall be the appropriate 187 24 license for the collection of the land burial surcharge tax 187 25 and shall be subject to suspension or revocation if the site 187 26 license holder fails to collect or remit the tax collected 187 27 under this section. The provisions ofsectionssection 187 28 422.25, subsection 4, sections 422.30,422.48 to 422.52,187 29422.54 to 422.58,422.67, and 422.68, section 422.69, 187 30 subsection 1,andsections 422.70 to 422.75, section 423.14, 187 31 subsection 1, and sections 423.23, 423.24, 423.25, 423.31, 187 32 423.33, 423.35, 423.37 to 423.42, and 423.47, consistent with 187 33 the provisions of this part 6 of division IV, shall apply with 187 34 respect to the taxes authorized under this part, in the same 187 35 manner and with the same effect as if the land burial 188 1 surcharge tax wereretailsales taxes within the meaning of 188 2 those statutes. Notwithstanding the provisions of this 188 3paragraphsection, the director shall provide for only 188 4 quarterly filing of returns as prescribed in section422.51188 5 423.31. Taxes collected by the director of revenue and 188 6 finance under this section shall be deposited in the general 188 7 fund of the state. 188 8 Sec. 198. Section 455G.3, subsection 1, Code 2003, is 188 9 amended to read as follows: 188 10 1. The Iowa comprehensive petroleum underground storage 188 11 tank fund is created as a separate fund in the state treasury, 188 12 and any funds remaining in the fund at the end of each fiscal 188 13 year shall not revert to the general fund but shall remain in 188 14 the Iowa comprehensive petroleum underground storage tank 188 15 fund. Interest or other income earned by the fund shall be 188 16 deposited in the fund. The fund shall include moneys credited 188 17 to the fund under this section, section423.24423.43, 188 18 subsection 1, paragraph "a", and sections 455G.8, 455G.9, and 188 19 455G.11, and other funds which by law may be credited to the 188 20 fund. The moneys in the fund are appropriated to and for the 188 21 purposes of the board as provided in this chapter. Amounts in 188 22 the fund shall not be subject to appropriation for any other 188 23 purpose by the general assembly, but shall be used only for 188 24 the purposes set forth in this chapter. The treasurer of 188 25 state shall act as custodian of the fund and disburse amounts 188 26 contained in it as directed by the board including automatic 188 27 disbursements of funds as received pursuant to the terms of 188 28 bond indentures and documents and security provisions to 188 29 trustees and custodians. The treasurer of state is authorized 188 30 to invest the funds deposited in the fund at the direction of 188 31 the board and subject to any limitations contained in any 188 32 applicable bond proceedings. The income from such investment 188 33 shall be credited to and deposited in the fund. The fund 188 34 shall be administered by the board which shall make 188 35 expenditures from the fund consistent with the purposes of the 189 1 programs set out in this chapter without further 189 2 appropriation. The fund may be divided into different 189 3 accounts with different depositories as determined by the 189 4 board and to fulfill the purposes of this chapter. 189 5 Sec. 199. Section 455G.6, subsection 4, Code 2003, is 189 6 amended to read as follows: 189 7 4. Grant a mortgage, lien, pledge, assignment, or other 189 8 encumbrance on one or more improvements, revenues, asset of 189 9 right, accounts, or funds established or received in 189 10 connection with the fund, including revenues derived from the 189 11 use tax under section423.24423.43, subsection 1, paragraph 189 12 "a", and deposited in the fund or an account of the fund. 189 13 Sec. 200. Section 455G.8, subsection 2, Code 2003, is 189 14 amended to read as follows: 189 15 2. USE TAX. The revenues derived from the use tax imposed 189 16 under chapter 423, subchapter III. The proceeds of the use 189 17 tax under section423.24423.43, subsection 1, paragraph "a", 189 18 shall be allocated, consistent with this chapter, among the 189 19 fund's accounts, for debt service and other fund expenses, 189 20 according to the fund budget, resolution, trust agreement, or 189 21 other instrument prepared or entered into by the board or 189 22 authority under direction of the board. 189 23 Sec. 201. Section 455G.9, subsection 2, Code 2003, is 189 24 amended to read as follows: 189 25 2. REMEDIAL ACCOUNT FUNDING. The remedial account shall 189 26 be funded by that portion of the proceeds of the use tax 189 27 imposed under chapter 423, subchapter III, and other moneys 189 28 and revenues budgeted to the remedial account by the board. 189 29 Sec. 202. Section 2.67, Code 2003, is repealed. 189 30 Sec. 203. CODE EDITOR DIRECTIVE. The Code editor is 189 31 directed to transfer Code chapter 423A to Code chapter 421A 189 32 and to transfer Code chapters 422A, 422B, 422C, and 422E to 189 33 Code chapters 423A, 423B, 423C, and 423E, respectively. The 189 34 Code editor is directed to correct Code references as required 189 35 due to the changes made in this Act. 190 1 SALES TAX ADVISORY COUNCIL 190 2 Sec. 204. IOWA STREAMLINED SALES TAX ADVISORY COUNCIL. 190 3 1. An Iowa streamlined sales tax advisory council is 190 4 created. The advisory council shall review, study, and submit 190 5 recommendations to the Iowa streamlined sales and use tax 190 6 delegation regarding the proposed streamlined sales and use 190 7 tax agreement formalized by the project's implementing sales 190 8 on November 12, 2002, the proposed language conforming Iowa's 190 9 sales and use tax to the national agreement, and the following 190 10 issues: 190 11 a. Uniform definitions proposed in the current streamlined 190 12 sales and use tax agreement and future proposals. 190 13 b. Effects upon taxability of items newly defined in Iowa. 190 14 c. Impacts upon business as a result of the streamlined 190 15 sales and use tax. 190 16 d. Technology implementation issues. 190 17 e. Any other issues that are brought before the 190 18 streamlined sales and use tax implementing state or the 190 19 streamlined sales and use tax governing board. 190 20 2. The department shall provide administrative support to 190 21 the Iowa streamlined sales tax advisory council. The advisory 190 22 council shall be representative of Iowa's business community 190 23 and economy when reviewing and recommending solutions to 190 24 streamlined sales and use tax issues. The advisory council 190 25 shall provide the general assembly and the governor with final 190 26 recommendations made to the Iowa streamlined sales and use tax 190 27 delegation upon the conclusion of each calendar year. 190 28 3. The director of revenue, in consultation with the Iowa 190 29 taxpayers association and the Iowa association of business and 190 30 industry, shall appoint members to the Iowa streamlined sales 190 31 tax advisory council, which shall consist of the following 190 32 members: 190 33 a. One member from the department of revenue and finance. 190 34 b. Three members representing small Iowa businesses, at 190 35 least one of whom must be a retailer, and at least one of whom 191 1 shall be a supplier. 191 2 c. Three members representing medium Iowa businesses, at 191 3 least one of whom shall be a retailer, and at least one of 191 4 whom shall be a supplier. 191 5 d. Three members representing large Iowa businesses, at 191 6 least one of whom shall be a retailer, and at least one of 191 7 whom shall be a supplier. 191 8 e. One member representing taxpayers as a whole. 191 9 f. One member representing the retail community as a 191 10 whole. 191 11 g. Any other member the director of revenue and finance 191 12 deems appropriate. 191 13 Sec. 205. EFFECTIVE DATE. Except for the section creating 191 14 the Iowa streamlined sales tax advisory council, this division 191 15 of this Act takes effect July 1, 2004. 191 16 DIVISION XV 191 17 CAPITOL COMPLEX PARKING STRUCTURE 191 18 Sec. 206. NEW SECTION. 18A.8 CAPITOL COMPLEX PARKING 191 19 STRUCTURE REVOLVING FUND. 191 20 A capitol complex parking structure revolving fund is 191 21 created in the state treasury. The capitol complex parking 191 22 structure revolving fund shall be administered by the 191 23 department of administrative services and shall consist of 191 24 moneys collected by the department as parking fees, moneys 191 25 appropriated to the fund by the general assembly, and any 191 26 other moneys obtained or accepted by the department for 191 27 deposit in the revolving fund. The proceeds of the revolving 191 28 fund are appropriated to and shall be used by the department 191 29 for costs associated with the management, operation, and 191 30 maintenance of the capitol complex parking structure located 191 31 at the intersection of Pennsylvania and Grand avenues in Des 191 32 Moines. The department shall submit an annual report not 191 33 later than January 31 to the members of the general assembly 191 34 and the legislative services agency, of the activities funded 191 35 by and expenditures made from the revolving fund during the 192 1 preceding fiscal year. Section 8.33 does not apply to any 192 2 moneys in the revolving fund and, notwithstanding section 192 3 12C.7, subsection 2, earnings or interest on moneys deposited 192 4 in the revolving fund shall be credited to the revolving fund. 192 5 Sec. 207. CAPITOL COMPLEX PARKING STRUCTURE MANAGEMENT – 192 6 REQUEST FOR PROPOSALS. The department of administrative 192 7 services shall issue a request for proposals for the 192 8 management, operation, and maintenance of the state-owned 192 9 parking structure located at the intersection of Pennsylvania 192 10 and Grand avenues in Des Moines. The request for proposals 192 11 shall include all of the following services: 192 12 1. The collection of parking fees and administration of 192 13 parking permits. 192 14 2. Daily janitorial maintenance and necessary annual 192 15 maintenance, pursuant to standards outlined in the parking 192 16 garage maintenance manual published by the parking consultants 192 17 council of the national parking association. 192 18 3. Long-term structural maintenance. 192 19 Awarding of a contract for the management, operation, and 192 20 maintenance of the parking structure is subject to approval by 192 21 the general assembly. 192 22 Sec. 208. CAPITOL COMPLEX PARKING STRUCTURE – EMPLOYEE 192 23 PARKING FEES. The department of administrative services shall 192 24 establish reasonable parking fees for state employees for the 192 25 use of the state-owned parking structure located at the 192 26 intersection of Pennsylvania and Grand avenues in Des Moines. 192 27 Parking fees shall not be established or collected for use of 192 28 the parking structure by members of the general public. Such 192 29 fees shall be deposited in the capitol complex parking 192 30 structure revolving fund created in section 18A.8, as enacted 192 31 by this Act. 192 32 DIVISION XVI 192 33 EFFECTIVE DATE 192 34 Sec. 209. EFFECTIVE DATE. Unless otherwise provided in 192 35 this Act, this Act takes effect July 1, 2003. 193 1 193 2 193 3 193 4 CHRISTOPHER C. RANTS 193 5 Speaker of the House 193 6 193 7 193 8 193 9 MARY E. KRAMER 193 10 President of the Senate 193 11 193 12 I hereby certify that this bill originated in the House and 193 13 is known as House File 683, Eightieth General Assembly. 193 14 193 15 193 16 193 17 MARGARET THOMSON 193 18 Chief Clerk of the House 193 19 Approved , 2003 193 20 193 21 193 22 193 23 THOMAS J. VILSACK 193 24 Governor
Text: HF00682 Text: HF00684 Text: HF00600 - HF00699 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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