Text: HF00696 Text: HF00698 Text: HF00600 - HF00699 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 15E.42, subsection 3, Code 2003, is 1 2 amended to read as follows: 1 3 3. "Investor" means an individual making a cash investment 1 4 in a qualifying business or an individual taxed on income from 1 5 a revocable trust's cash investment in a qualifying business 1 6 or a person making a cash investment in a community-based seed 1 7 capital fund. "Investor" does not include a person which is a 1 8 current or previous owner, member, or shareholder in a 1 9 qualifying business. 1 10 Sec. 2. Section 15E.43, subsection 1, paragraph a, Code 1 11 2003, is amended to read as follows: 1 12 a. For tax years beginning on or after January 1, 2002, a 1 13 tax credit shall be allowed against the taxes imposed in 1 14 chapter 422, division II, for a portion of an individual 1 15 taxpayer's equity investment, as provided in subsection 2, in 1 16 a qualifying business. An individual shall not claim a tax 1 17 credit under this paragraph of a partnership, limited 1 18 liability company, S corporation, estate, or trust electing to 1 19 have income taxed directly to the individual. However, an 1 20 individual receiving income from a revocable trust's 1 21 investment in a qualified business may claim a tax credit 1 22 under this paragraph against the taxes imposed in chapter 422, 1 23 division II, for a portion of the revocable trust's equity 1 24 investment, as provided in subsection 2, in a qualified 1 25 business. 1 26 Sec. 3. Section 15E.43, subsection 1, Code 2003, is 1 27 amended by adding the following new paragraph: 1 28 NEW PARAGRAPH. d. In the case of a tax credit allowed 1 29 against the taxes imposed in chapter 422, division II, where 1 30 the taxpayer died prior to redeeming the entire tax credit, 1 31 the remaining credit can be redeemed on the decedent's final 1 32 income tax return. 1 33 Sec. 4. Section 15E.45, subsection 2, paragraph c, Code 1 34 2003, is amended to read as follows: 1 35 c. The fund has no fewer than tenindividualinvestors who 2 1 are not affiliates, with no single investor and affiliates of 2 2 that investor together owning a total of more than twenty-five 2 3 percent of the ownership interests outstanding in the fund. 2 4 Sec. 5. Section 15E.51, subsection 4, Code 2003, is 2 5 amended to read as follows: 2 6 4. A taxpayer shall not claim a tax credit under this 2 7 section if the taxpayer is a venture capital investment fund 2 8 allocation manager for the Iowa fund of funds created in 2 9 section 15E.65 or an investor that receives a tax credit for 2 10anthe same investment in a community-based seed capital fund 2 11 as defined in 2002 Iowa Acts, House File 2271. 2 12 Sec. 6. Section 99E.10, subsection 1, unnumbered paragraph 2 13 1, Code 2003, is amended to read as follows: 2 14 Upon receipt of any revenue, the commissioner shall deposit 2 15 the moneys in the lottery fund created pursuant to section 2 16 99E.20. As nearly as is practicable, at least fifty percent 2 17 of the projected annual revenue, after deduction of the amount2 18of the sales tax,accruing from the sale of tickets or shares 2 19 is appropriated for payment of prizes to the holders of 2 20 winning tickets. After the payment of prizes, all of the 2 21 following shall be deducted from lottery revenue prior to 2 22 disbursement: 2 23 Sec. 7. Section 99E.10, subsection 1, paragraph b, Code 2 24 2003, is amended by striking the paragraph. 2 25 Sec. 8. Section 422.9, subsection 1, Code 2003, is amended 2 26 to read as follows: 2 27 1. An optional standard deduction, after deduction of 2 28 federal income tax, equal to one thousand two hundred thirty 2 29 dollars for a married person who files separately or a single 2 30 person or equal to three thousand thirty dollars for a husband 2 31 and wife who file a joint return, a surviving spouse, or an 2 32 unmarried head of household. The optional standard deduction 2 33 shall not exceed the amount remaining after deduction of the 2 34 federal income tax. The amount of federal income taxes 2 35 deducted shall be computed as provided under subsection 2, 3 1 paragraph "b". 3 2 Sec. 9. Section 422.9, subsection 2, paragraph b, Code 3 3 2003, is amended to read as follows: 3 4 b. Add the amount of federal income taxes paid or accrued 3 5 as the case may be, during the tax year,adjusted byand 3 6 subtract any federal income tax refunds received during the 3 7 tax year.Provided, however, that whereWhere married 3 8 persons, who have filed a joint federal income tax return, 3 9 file separately, such total shall be divided between them 3 10 according to the portionthereofpaid or accrued, as the case 3 11 may be, by each. However, federal income taxes paid for a tax 3 12 year in which an Iowa return was not required to be filed 3 13 shall not be added, and federal income tax refunds received 3 14 from a tax year in which an Iowa return was not required to be 3 15 filed shall not be subtracted. 3 16 Sec. 10. Section 422.42, subsection 19, Code 2003, is 3 17 amended to read as follows: 3 18 19. "Services" means all acts or services rendered, 3 19 furnished, or performed, other than services used in 3 20 processing of tangible personal property for use in retail 3 21 sales or services, for an"employer" as defined in section3 22422.4, subsection 3employer who pays the wages of an 3 23 employee, for a valuable consideration by any person engaged 3 24 in any business or occupation specifically enumerated in this 3 25 division. The tax shall be due and collectible when the 3 26 service is rendered, furnished, or performed for the ultimate 3 27 user of the service. 3 28 Sec. 11. Section 422.43, subsection 2, Code 2003, is 3 29 amended to read as follows: 3 30 2. There is imposed a tax of five percent upon the gross 3 31 receipts derived from the operation of all forms of amusement 3 32 devices and games of skill, games of chance, raffles, and 3 33 bingo games as defined in chapter 99B, operated or conducted 3 34 within the state, the tax to be collected from the operator in 3 35 the same manner as for the collection of taxes upon the gross 4 1 receipts of tickets or admission as provided in this section. 4 2The tax shall also be imposed upon the gross receipts derived4 3from the sale of lottery tickets or shares pursuant to chapter4 499E. The tax on the lottery tickets or shares shall be4 5included in the sales price and distributed to the general4 6fund as provided in section 99E.10.4 7 Sec. 12. Section 422.45, Code 2003, is amended by adding 4 8 the following new subsection: 4 9 NEW SUBSECTION. 31. Gross receipts from the sale of a 4 10 lottery ticket or share pursuant to chapter 99E. 4 11 Sec. 13. Section 422.45, Code 2003, is amended by adding 4 12 the following new subsection: 4 13 NEW SUBSECTION. 64. The gross receipts from noncustomer 4 14 point of sale or noncustomer automated teller machine access 4 15 or service charges assessed by a financial institution. For 4 16 purposes of this subsection, "financial institution" means the 4 17 same as defined in section 527.2. 4 18 Sec. 14. Section 422A.1, unnumbered paragraph 3, Code 4 19 2003, is amended to read as follows: 4 20 A local hotel and motel tax shall be imposed on January 1,4 21April 1,or July 1, or October 1,following the notification 4 22 of the director of revenue and finance. Once imposed, the tax 4 23 shall remain in effect at the rate imposed for a minimum of 4 24 one year. A local hotel and motel tax shall terminate only on 4 25March 31,June 30, September 30,or December 31. At least 4 26 forty-five days prior to the tax being effective or prior to a 4 27 revision in the tax rate, or prior to the repeal of the tax, a 4 28 city or county shall provide notice by mail of such action to 4 29 the director of revenue and finance. 4 30 Sec. 15. Section 423.4, Code 2003, is amended by adding 4 31 the following new subsection: 4 32 NEW SUBSECTION. 9A. Vehicles subject to registration 4 33 which are transferred from a corporation that is primarily 4 34 engaged in the business of leasing vehicles subject to 4 35 registration to a corporation that is primarily engaged in the 5 1 business of leasing vehicles subject to registration when the 5 2 transferor and transferee corporations are part of the same 5 3 controlled group for federal income tax purposes. 5 4 Sec. 16. Section 425.1, subsection 4, Code 2003, is 5 5 amended to read as follows: 5 6 4. Annually the department of revenue and finance shall 5 7estimate the credit not to exceed the actual levy on the first5 8four thousand eight hundred fifty dollars of actual value of5 9each eligible homestead, and shallcertify to the county 5 10 auditor of each county the credit and its amount in dollars. 5 11 Each county auditor shall then enter the credit against the 5 12 tax levied on each eligible homestead in each county payable 5 13 during the ensuing year, designating on the tax lists the 5 14 credit as being from the homestead credit fund, and credit 5 15 shall then be given to the several taxing districts in which 5 16 eligible homesteads are located in an amount equal to the 5 17 credits allowed on the taxes of the homesteads. The amount of 5 18 credits shall be apportioned by each county treasurer to the 5 19 several taxing districts as provided by law, in the same 5 20 manner as though the amount of the credit had been paid by the 5 21 owners of the homesteads. However, the several taxing 5 22 districts shall not draw the funds so credited until after the 5 23 semiannual allocations have been received by the county 5 24 treasurer, as provided in this chapter. Each county treasurer 5 25 shall show on each tax receipt the amount of credit received 5 26 from the homestead credit fund. 5 27 Sec. 17. Section 441.8, unnumbered paragraphs 6 and 7, 5 28 Code 2003, are amended to read as follows: 5 29 Upon receiving credit equal to one hundred fifty hours of 5 30 classroom instruction during the assessor's current term of 5 31 office of which at least ninety of the one hundred fifty hours 5 32 are from courses requiring an examination upon conclusion of 5 33 the course, the director of revenue and finance shall certify 5 34 to the assessor's conference board that the assessor is 5 35 eligible to be reappointed to the position. For persons 6 1 appointed to complete an unexpired term, the number of credits 6 2 required to be certified as eligible for reappointment shall 6 3 be prorated according to the amount of time remaining in the 6 4 present term of the assessor. The director of revenue and 6 5 finance may extend the period of time for an assessor to 6 6 obtain the required hours of credit if the committee finds 6 7 sufficient reason for granting an extension. If the person 6 8 was an assessor in another jurisdiction, the assessor may 6 9 carry forward any credit hours received in the previous 6 10 position in excess of the number that would be necessary to be 6 11 considered current in that position. 6 12 Within each six-year period following the appointment of a 6 13 deputy assessor, the deputy assessor shall comply with this 6 14 section except that upon the successful completion of ninety 6 15 hours of classroom instruction of which at least sixty of the 6 16 ninety hours are from courses requiring an examination upon 6 17 conclusion of the course, the deputy assessor shall be 6 18 certified by the director of revenue and finance as being 6 19 eligible to remain in the position. If a deputy assessor 6 20 fails to comply with this section, the deputy assessor shall 6 21 be removed from the position until successful completion of 6 22 the required hours of credit. The director of revenue and 6 23 finance may extend the period of time for a deputy assessor to 6 24 obtain the required hours of credit if the committee finds 6 25 sufficient reason for granting an extension. If a deputy is 6 26 appointed to the office of assessor, the hours of credit 6 27 obtained as deputy pursuant to this section shall be credited 6 28 to that individual as assessor and for the individual to be 6 29 reappointed at the expiration of the term as assessor, that 6 30 individual must obtain the credits which are necessary to 6 31 total the number of hours for reappointment. 6 32 Sec. 18. Section 450.37, subsection 2, paragraph a, Code 6 33 2003, is amended to read as follows: 6 34 a. If an agreement has not been reached on the fair market 6 35 value of real property in the ordinary course of trade, the 7 1 director of revenue and finance hasthirtysixty days after 7 2 the return is filed to request an appraisal under section 7 3 450.27. If an appraisal request is not made within the 7 4thirty-daysixty-day period, the value listed on the return is 7 5 the agreed value of the real property. 7 6 Sec. 19. Section 452A.2, Code 2003, is amended by adding 7 7 the following new subsection: 7 8 NEW SUBSECTION. 20A. "Nonterminal storage facility" means 7 9 a facility where motor fuel or special fuel, other than 7 10 liquefied petroleum gas, is stored that is not supplied by a 7 11 pipeline or a marine vessel. "Nonterminal storage facility" 7 12 includes a facility that manufactures products such as 7 13 alcohol, biofuel, blend stocks, or additives which may be used 7 14 as motor fuel or special fuel, other than liquefied petroleum 7 15 gas, for operating motor vehicles or aircraft. 7 16 Sec. 20. Section 452A.2, subsection 24, Code 2003, is 7 17 amended to read as follows: 7 18 24. "Special fuel" means fuel oils and all combustible 7 19 gases and liquids suitable for the generation of power for 7 20 propulsion of motor vehicles or turbine-powered aircraft, and 7 21 includes any substance used for that purpose, except that it 7 22 does not include motor fuel. Kerosene shall not be considered 7 23 to be a special fuel, unless blended with other special fuels 7 24 for use in a motor vehicle with a diesel engine. Methanol 7 25 shall not be considered to be a special fuel, unless blended 7 26 with other special fuels for use in a motor vehicle with a 7 27 diesel engine, and shall not be considered a motor fuel, 7 28 unless blended with other motor fuels for use in an aircraft 7 29 or for propelling motor vehicles. 7 30 Sec. 21. Section 452A.10, unnumbered paragraphs 1, 2, and 7 31 4, Code 2003, are amended to read as follows: 7 32 A motor fuel or special fuel supplier, restrictive 7 33 supplier, importer, exporter, blender, dealer, user, common 7 34 carrier, contract carrier,orterminal or nonterminal storage 7 35 facility shall maintain, for a period of three years, records 8 1 of all transactions by which the supplier, restrictive 8 2 supplier, or importer withdraws from a terminal or nonterminal 8 3 storage facility within this state or imports into this state 8 4 motor fuel or undyed special fuel together with invoices, 8 5 bills of lading, and other pertinent records and papers as 8 6 required by the department. 8 7 If in the normal conduct of a supplier's, restrictive 8 8 supplier's, importer's, exporter's, blender's, dealer's, 8 9 user's, common carrier's, contract carrier's,orterminal's, 8 10 or nonterminal storage facility's business the records are 8 11 maintained and kept at an office outside this state, the 8 12 records shall be made available for audit and examination by 8 13 the department at the office outside this state, but the audit 8 14 and examination shall be without expense to this state. 8 15 The department, after an audit and examination of records 8 16 required to be maintained under this section, may authorize 8 17 their disposal upon the written request of the supplier, 8 18 restrictive supplier, importer, exporter, blender, dealer, 8 19 user, carrier, terminal, nonterminal storage facility, or 8 20 distributor. 8 21 Sec. 22. Section 452A.62, subsection 1, paragraph a, Code 8 22 2003, is amended to read as follows: 8 23 a. A distributor, supplier, restrictive supplier, 8 24 importer, exporter, blender, terminal operator, nonterminal 8 25 storage facility, common carrier, or contract carrier, 8 26 pertaining to motor fuel or undyed special fuel withdrawn from 8 27 a terminal or nonterminal storage facility or brought into 8 28 this state. 8 29 Sec. 23. Section 452A.62, subsection 2, Code 2003, is 8 30 amended to read as follows: 8 31 2. To examine the records, books, papers, receipts, and 8 32 invoices of any distributor, supplier, restrictive supplier, 8 33 importer, blender, exporter, terminal operator, nonterminal 8 34 storage facility, licensed compressed natural gas or liquefied 8 35 petroleum gas dealer or user, or any other person who 9 1 possesses fuel upon which the tax has not been paid to 9 2 determine financial responsibility for the payment of the 9 3 taxes imposed by this chapter. 9 4 Sec. 24. Section 452A.85, Code 2003, is amended by adding 9 5 the following new subsection: 9 6 NEW SUBSECTION. 4. This section does not apply to an 9 7 increase in the tax rate of a specified fuel, except for 9 8 compressed natural gas, unless the increase in the tax rate of 9 9 that fuel is in excess of one-half cent per gallon. 9 10 Sec. 25. Section 453A.11, Code 2003, is amended to read as 9 11 follows: 9 12 453A.11 CANCELLATION OF STAMPS. 9 13 Stamps affixed to a package of cigarettes shall not be 9 14 canceled by any letter, numeral, or other mark of 9 15 identification or otherwise mutilated in any manner that will 9 16 prevent or hinder the department in making an examination as 9 17 to the genuineness of the stamp. However, the director may 9 18 requiresuchcancellation of the tax stamps affixed to 9 19 packages of cigarettes which is necessary to carry out 9 20 properly the provisions of this division. A person in 9 21 violation of this section shall be considered in possession of 9 22 unstamped cigarettes and is subject to the penalty provided in 9 23 section 453A.31, subsection 1. 9 24 Sec. 26. Section 453A.15, Code 2003, is amended by adding 9 25 the following new subsection: 9 26 NEW SUBSECTION. 7. The director may require by rule that 9 27 reports required to be made under this division be filed by 9 28 electronic transmission. 9 29 Sec. 27. Section 453A.18, Code 2003, is amended to read as 9 30 follows: 9 31 453A.18 FORMS FOR RECORDS AND REPORTS. 9 32 The department shall furnish or make available in 9 33 electronic form, without charge, to holders of the various 9 34 permits, forms in sufficient quantities to enable permit 9 35 holders to make the reports required to be made under this 10 1 division. The permit holders shall furnish at their own 10 2 expense the books, records, and invoices, required to be used 10 3 and kept, but the books, records, and invoices shall be in 10 4 exact conformity to the forms prescribed for that purpose by 10 5 the director, and shall be kept and used in the manner 10 6 prescribed by the director. However, the director may, by 10 7 express order in certain cases, authorize permit holders to 10 8 keep their records in a manner and upon forms other than those 10 9 so prescribed. The authorization may be revoked at any time. 10 10 Sec. 28. Section 453A.32, subsections 1, 4, and 5, Code 10 11 2003, are amended to read as follows: 10 12 1. All cigarettes on which taxes are imposed or required 10 13 to be imposed by this division, which are found in the 10 14 possession or custody, or within the control of any person, 10 15 for the purpose of being sold, distributed, or removed by the 10 16 person in violation of this division, and all cigarettes which 10 17 are removedor are, stored, transported, deposited, or 10 18 concealed in any placewith intent to avoid payment of taxes10 19 without the proper taxes paid, and any automobile, truck, 10 20 boat, conveyance, or other vehicle whatsoever, used in the 10 21 removal, storage, deposit, concealment, or transportation of 10 22 cigarettes forsuchthe purpose of avoiding the payment of the 10 23 proper tax, and all equipment or other tangible personal 10 24 property incident to and used forsuchthe purpose of avoiding 10 25 the payment of the proper tax, found in the place, building, 10 26 or vehicle where cigarettes are found, and all counterfeit 10 27 cigarettes may be seized by the department, with or without 10 28 process and shall be from the time of the seizure forfeited to 10 29 the state of Iowa. A proceeding in the nature of a proceeding 10 30 in rem shall be filed in a court of competent jurisdiction in 10 31 the county of seizure to maintain the seizure and declare and 10 32 perfect the forfeiture. All cigarettes, counterfeit 10 33 cigarettes, vehicles, and property seized, remaining in the 10 34 possession or custody of the department, sheriff or other 10 35 officer for forfeiture or other disposition as provided by 11 1 law, are not subject to replevin. 11 2 4. In the event final judgment is rendered in the 11 3 forfeiture proceedings aforesaid, maintaining the seizure, and 11 4 declaring and perfecting the forfeiture of said seized 11 5 property, the court shall order and decree the salethereofof 11 6 the seized property, other than the counterfeit cigarettes, to 11 7 the highest bidder, by the sheriff at public auction in the 11 8 county of seizure after notice is given in the manner provided 11 9 in the case of the sale of personal property under execution, 11 10 and the proceeds of such sale, less expense of seizure and 11 11 court costs, shall be paid into the state treasury. 11 12 Counterfeit cigarettes shall be destroyed or disposed of in a 11 13 manner determined by the director. 11 14 5. In the event the cigarettes seizedhereunderand sought 11 15 to be sold upon forfeitureshall beare unstamped, the 11 16 cigarettes shall be sold by the director or the director's 11 17 designee to the highest bidder among thelicensedpermitted 11 18 distributors in this state after written notice has been 11 19 mailed to allsuchdistributors. If there is no bidder, or in 11 20 the opinion of the director the quantity of cigarettes to be 11 21 sold is insufficient or for any other reasonsuchdisposition 11 22 of the cigarettes is impractical, the cigarettes shall be 11 23 destroyed or disposed of in a manner as determined by the 11 24 director. The proceedsof suchfrom the sales shall be paid 11 25 into the state treasury. 11 26 Sec. 29. Section 453A.36, Code 2003, is amended by adding 11 27 the following new subsection: 11 28 NEW SUBSECTION. 9. a. It is unlawful for a person to 11 29 ship or import into this state or to offer for sale, sell, 11 30 distribute, transport, or possess counterfeit cigarettes, 11 31 knowing such cigarettes are counterfeit cigarettes or having 11 32 reasonable cause to believe that such cigarettes are 11 33 counterfeit cigarettes. 11 34 b. For purposes of this subsection and section 453A.32, 11 35 "counterfeit cigarettes" means cigarettes, packages of 12 1 cigarettes, cartons of cigarettes or other containers of 12 2 cigarettes with a label, trademark, service mark, trade name, 12 3 device, design, or word adopted or used by a cigarette 12 4 manufacturer to identify its product that is false or used 12 5 without authority of the cigarette manufacturer. 12 6 Sec. 30. Section 453A.38, Code 2003, is amended to read as 12 7 follows: 12 8 453A.38 COUNTERFEITING AND PREVIOUSLY USED STAMPS. 12 9 Any person who shall print, engrave, make, issue, sell, or 12 10 circulate, or shall possess or have in the person's possession 12 11 with intent to use, sell, circulate, or pass, any counterfeit 12 12 stamp or previously used stamp, or who shall use, or consent 12 13 to the use of, any counterfeit stamp or previously used stamp 12 14 in connection with the sale, or offering for sale, of any 12 15 cigarettes, or who shall place, or cause to be placed, on any 12 16 individual package of cigarettes, any counterfeit stamp or 12 17 previously used stamp, shall be guilty of an aggravated 12 18 misdemeanor. A person in violation of this section shall also 12 19 be subject to the penalty provided in section 453A.31, 12 20 subsection 1. 12 21 Sec. 31. Section 453A.45, subsection 5, unnumbered 12 22 paragraph 2, Code 2003, is amended to read as follows: 12 23 Such report shall be made on forms provided by the director 12 24 or the director may require by rule that the report be filed 12 25 by electronic transmission. 12 26 Sec. 32. Section 453A.46, Code 2003, is amended by adding 12 27 the following new subsection: 12 28 NEW SUBSECTION. 7. The director may require by rule that 12 29 reports be filed by electronic transmission. 12 30 Sec. 33. Section 453C.1, subsection 10, Code 2003, is 12 31 amended to read as follows: 12 32 10. "Units sold" means the number of individual cigarettes 12 33 sold in the state by the applicable tobacco product 12 34 manufacturer, whether directly or through a distributor, 12 35 retailer, or similar intermediary or intermediaries, during 13 1 the year in question, as measured by excise taxes collected by 13 2 the state on packs or roll-your-own tobacco containersbearing13 3the excise tax stamp of the state. The department of revenue 13 4 and finance shall adopt rules as are necessary to ascertain 13 5 the amount of state excise tax paid on the cigarettes of such 13 6 tobacco product manufacturer for each year. 13 7 Sec. 34. Section 453C.2, subsection 2, paragraph b, 13 8 subparagraph (2), Code 2003, is amended to read as follows: 13 9 (2) To the extent that a tobacco product manufacturer 13 10 establishes that the amount the manufacturer was required to 13 11 place into escrow on account of units sold in the state in a 13 12 particular year was greater thanthe state's allocable share13 13of the total payments that such manufacturer would have been13 14required to make in that year under the master settlement13 15agreementthe master settlement agreement payments, as 13 16 determined pursuant to section IX(i) of that agreement 13 17 including after final determination of all adjustments, that 13 18 such manufacturer would have been required to make on account 13 19 of such units sold had such manufacturer been a participating 13 20 manufacturer,as such payments are determined pursuant to13 21section IX(i)(2) of the master settlement agreement and before13 22any of the adjustments or offsets described in section13 23IX(i)(3) of that agreement other than the inflation13 24adjustment,the excess shall be released from escrow and 13 25 revert back to such tobacco product manufacturer. 13 26 Sec. 35. SEVERABILITY. 13 27 1. If this entire Act or any portion of section 453C.2, 13 28 subsection 2, paragraph "b", subparagraph (2), as amended in 13 29 this Act, is held by a court of competent jurisdiction to be 13 30 unconstitutional, section 453C.2, subsection 2, paragraph "b", 13 31 subparagraph (2), is repealed in its entirety. 13 32 2. If section 453C.2, subsection 2, paragraph "b", 13 33 subparagraph (2), is repealed pursuant to subsection 1 and a 13 34 court of competent jurisdiction subsequently finds that 13 35 section 453C.2, subsection 2, paragraph "b", is 14 1 unconstitutional due to such repeal, section 453C.2, 14 2 subsection 2, paragraph "b", subparagraph (2), Code 2003, 14 3 shall be restored. 14 4 3. Any holding of unconstitutionality or any repeal of 14 5 section 453C.2, subsection 2, paragraph "b", subparagraph (2), 14 6 as amended in this Act, or of section 453C.2, subsection 2, 14 7 paragraph "b", subparagraph (2), Code 2003, shall not affect, 14 8 impair, or invalidate any other portion of section 453C.2 or 14 9 the application of that section to any other person or 14 10 circumstance, and the remaining portions of section 453C.2, 14 11 shall continue in full force and effect. 14 12 Sec. 36. Section 518.18, unnumbered paragraph 2, Code 14 13 2003, is amended to read as follows: 14 14 1.TwoThe applicable percent of the gross amount of 14 15 premiums received during the preceding calendar year, after 14 16 deducting the amount returned upon the canceled policies, 14 17 certificates, and rejected applications; and after deducting 14 18 premiums paid for windstorm or hail reinsurance on properties 14 19 specifically reinsured; provided, however, that. However, the 14 20 reinsurer of such windstorm or hail risks shall paytwothe 14 21 applicable percent of the gross amount of reinsurance premiums 14 22 received upon such risks after deducting the amounts returned 14 23 upon canceled policies, certificates, and rejected 14 24 applications. For purposes of this section, "applicable 14 25 percent" means the same as specified in section 432.1, 14 26 subsection 4. 14 27 2. Except as provided in subsection 3, the premium tax 14 28 shall be paid on or before March 1 of the year following the 14 29 calendar year for which the tax is due. The commissioner of 14 30 insurance may suspend the certificate of authority of a county 14 31 mutual insurance association that fails to pay its premium tax 14 32 on or before the due date. 14 33 3. a. Each county mutual insurance association 14 34 transacting business in this state whose Iowa premium tax 14 35 liability for the preceding calendar year was one thousand 15 1 dollars or more shall remit on or before June 1, on a 15 2 prepayment basis, an amount equal to one-half of the premium 15 3 tax liability for the preceding calendar year. 15 4 b. In addition to the prepayment amount in paragraph "a", 15 5 each association shall remit on or before June 30, on a 15 6 prepayment basis, an additional amount equal to the following 15 7 percent of the premium tax liability for the preceding 15 8 calendar year as follows: 15 9 (1) For prepayment in the 2003 and 2004 calendar years, 15 10 eleven percent. 15 11 (2) For prepayment in the 2005 calendar year, twenty-six 15 12 percent. 15 13 (3) For prepayment in the 2006 and subsequent calendar 15 14 years, fifty percent. 15 15 c. The sums prepaid by a county mutual insurance 15 16 association under this subsection shall be allowed as credits 15 17 against its premium tax liability for the calendar year during 15 18 which the payments are made. If a prepayment made under this 15 19 subsection exceeds the annual premium tax liability, the 15 20 excess shall be allowed as a credit against subsequent 15 21 prepayment or tax liabilities. The commissioner of insurance 15 22 may suspend the certificate of authority of an association 15 23 that fails to make a prepayment on or before the due date. 15 24 Sec. 37. Section 518A.35, Code 2003, is amended to read as 15 25 follows: 15 26 518A.35 ANNUAL TAX. 15 27 1. A state mutual insurance association doing business 15 28 under this chapter shall on or before the first day of March, 15 29 each year, pay to the director of revenue and finance, or a 15 30 depository designated by the director, a sum equivalent totwo15 31 the applicable percent of the gross receipts from premiums and 15 32 fees for business done within the state, including all 15 33 insurance upon property situated in the state without 15 34 including or deducting any amounts received or paid for 15 35 reinsurance. However, a company reinsuring windstorm or hail 16 1 risks written by county mutual insurance associations is 16 2 required to paya twothe applicable percent tax on the gross 16 3 amount of reinsurance premiums received upon such risks, but 16 4 after deducting the amount returned upon canceled policies and 16 5 rejected applications covering property situated within the 16 6 state, and dividends returned to policyholders on property 16 7 situated within the state. For purposes of this section, 16 8 "applicable percent" means the same as specified in section 16 9 432.1, subsection 4. 16 10 2. Except as provided in subsection 3, the premium tax 16 11 shall be paid on or before March 1 of the year following the 16 12 calendar year for which the tax is due. The commissioner of 16 13 insurance may suspend the certificate of authority of a state 16 14 mutual insurance association that fails to pay its premium tax 16 15 on or before the due date. 16 16 3. a. Each state mutual insurance association transacting 16 17 business in this state whose Iowa premium tax liability for 16 18 the preceding calendar year was one thousand dollars or more 16 19 shall remit on or before June 1, on a prepayment basis, an 16 20 amount equal to one-half of the premium tax liability for the 16 21 preceding calendar year. 16 22 b. In addition to the prepayment amount in paragraph "a", 16 23 each association shall remit on or before June 30, on a 16 24 prepayment basis, an additional amount equal to the following 16 25 percent of the premium tax liability for the preceding 16 26 calendar year as follows: 16 27 (1) For prepayment in the 2003 and 2004 calendar years, 16 28 eleven percent. 16 29 (2) For prepayment in the 2005 calendar year, twenty-six 16 30 percent. 16 31 (3) For prepayment in the 2006 and subsequent calendar 16 32 years, fifty percent. 16 33 c. The sums prepaid by a state mutual insurance 16 34 association under this subsection shall be allowed as credits 16 35 against its premium tax liability for the calendar year during 17 1 which the payments are made. If a prepayment made under this 17 2 subsection exceeds the annual premium tax liability, the 17 3 excess shall be allowed as a credit against subsequent 17 4 prepayment or tax liabilities. The commissioner of insurance 17 5 may suspend the certificate of authority of an association 17 6 that fails to make a prepayment on or before the due date. 17 7 Sec. 38. GUARANTEE OF REPLACEMENT FUNDS. The revaluation 17 8 of all industrial machinery, equipment, and computers 17 9 authorized in section 427B.19B, Code 2003, as a result of the 17 10 insufficient funding of the industrial machinery, equipment 17 11 and computers property tax replacement fund for the fiscal 17 12 year beginning July 1, 2002, is void and taxes payable in the 17 13 fiscal year beginning July 1, 2003, shall not be levied on the 17 14 amount of such revaluation. 17 15 Sec. 39. Section 427B.19B, Code 2003, is repealed. 17 16 Sec. 40. EFFECTIVE AND RETROACTIVE APPLICABILITY 17 17 PROVISION. 17 18 1. Sections 1 through 5 of this Act, amending sections 17 19 15E.42, 15E.43, 15E.45, and 15E.51, apply retroactively to 17 20 January 1, 2002, for tax years beginning on or after that 17 21 date. 17 22 2. Sections 8 and 9 of this Act, amending section 422.9, 17 23 apply retroactively to January 1, 2003, for tax years 17 24 beginning on or after that date. 17 25 3. Sections 33, 34, and 35 of this Act, amending sections 17 26 453C.1 and 453C.2 and relating to severability, being deemed 17 27 of immediate importance, take effect upon enactment. 17 28 4. Sections 36 and 37 of this Act, amending sections 17 29 518.18 and 518A.35, being deemed of immediate importance, take 17 30 effect upon enactment. 17 31 5. Section 38 of this Act that voids the revaluation of 17 32 machinery, equipment, and computers, being deemed of immediate 17 33 importance, takes effect upon enactment. 17 34 EXPLANATION 17 35 Code sections 15E.42 and 15E.43(1), paragraph "a", are 18 1 amended to add individuals receiving income from a revocable 18 2 trust which invests in a qualified business to qualify for a 18 3 tax credit for an equity investment in a qualifying business. 18 4 Code section 15E.43(1) is amended by adding a new paragraph 18 5 that provides that an individual who dies before redeeming the 18 6 entire investment tax credit for an equity investment in a 18 7 qualifying business or community-based seed capital fund can 18 8 claim the remaining credit on the decedent's final income tax 18 9 return. 18 10 Code section 15E.45 is amended to provide that since 18 11 investors in a community-based seed capital fund are not 18 12 restricted to individual taxpayers, the reference to 18 13 individual investors should be stricken. 18 14 Code section 15E.51 is amended to provide that an investor 18 15 who makes separate investments into a community-based seed 18 16 capital fund and a venture capital fund should be entitled to 18 17 claim a tax credit for both investments. 18 18 The amendments to Code sections 15E.42, 15E.43, 15E.45, and 18 19 15E.51 are effective upon enactment and apply retroactively to 18 20 January 1, 2002. 18 21 Code sections 99E.10(1), 422.43(2), and 422.45 are amended 18 22 to exempt the sale of lottery tickets and shares from the 18 23 state sales and use taxes. 18 24 Code sections 422.9(1) and (2)(b) are amended to provide 18 25 that no adjustment for federal income tax is allowed for a tax 18 26 year in which an Iowa return was not required to be filed. 18 27 This change is applicable beginning with the 2003 tax year. 18 28 Code section 422.42(19) is amended to define "employer" in 18 29 this subsection for purposes of the state sales tax or 18 30 services as the person who actually pays the wages of an 18 31 employee. 18 32 Code section 422.45 is amended to add a new subsection 64 18 33 that exempts from the sales and use taxes the access or 18 34 service charges assessed by financial institutions on 18 35 noncustomer point of sale or noncustomer use of automated 19 1 teller machines. 19 2 Code section 422A.1 is amended to provide that local hotel 19 3 and motel tax shall be imposed on January 1 and July 1 only 19 4 and terminated on June 30 and December 31 only. 19 5 Code section 423.4 is amended to exempt from the use tax 19 6 the transfer of vehicles subject to registration from one 19 7 leasing corporation to another if both corporations are part 19 8 of a controlled group for federal income tax purposes. 19 9 Code section 425.1(4) is amended to rescind the requirement 19 10 that the department estimate the amount of homestead tax 19 11 credits payable to the counties each year. 19 12 Code section 441.8 is amended to permit the director of 19 13 revenue and finance to extend for sufficient reason the period 19 14 of time for an assessor or deputy assessor to meet continuing 19 15 education requirements. 19 16 Code section 450.37(2)(a) is amended to extend from 30 to 19 17 60 days the period of time the director has to request an 19 18 appraisal after an inheritance tax return is filed. 19 19 Code section 452A.2 is amended to add a definition for 19 20 "nonterminal storage facility" in the motor fuel tax statute. 19 21 Code section 452A.2(24) is amended to state that for fuel tax 19 22 purposes, methanol is not a special fuel or motor fuel unless 19 23 blended for use in diesel engines or for use in aircraft or a 19 24 motor vehicle. 19 25 Code sections 452A.10 and 452A.62 are amended to require 19 26 nonterminal storage facilities to maintain the same records as 19 27 terminals. 19 28 Code section 452A.85 is amended to provide that the 19 29 inventory tax does not apply unless the increase in the fuel 19 30 tax rate is more than one-half cent per gallon. 19 31 Code section 453A.11 is amended to impose a penalty against 19 32 any person found to have altered a cigarette tax stamp. 19 33 Code section 453A.15 is amended to give the director the 19 34 authority to require that cigarette reports be filed by 19 35 electronic transmission. 20 1 Code section 453A.18 authorizes the department to furnish 20 2 permit holders with electronic forms in lieu of paper forms. 20 3 Code sections 453A.32(1) and (5) are amended to strengthen 20 4 the language relating to the seizure and forfeiture of 20 5 unstamped cigarettes and to reflect that cigarette 20 6 distributors receive a permit, not a license, to do business. 20 7 Code sections 453A.32 and 453A.36 are amended to make it 20 8 unlawful to ship or import into Iowa or sell, distribute, or 20 9 possess counterfeit cigarettes and allow for the confiscation 20 10 and destruction of those cigarettes. "Counterfeit cigarettes" 20 11 are cigarettes that are marked in such a manner that would 20 12 lead someone to believe the cigarettes were of a specific 20 13 known brand or manufacturer. 20 14 Code section 453A.38 is amended to subject counterfeiters 20 15 to a civil penalty in addition to the current criminal 20 16 penalty. 20 17 Code section 453A.45(5) is amended to give the director the 20 18 authority to require by rule that tobacco transportation 20 19 reports be filed electronically. 20 20 Code section 453A.46 is amended to give the director the 20 21 authority to require by rule that distributors file tobacco 20 22 reports electronically. 20 23 Code sections 453C.1 and 453C.2 are amended to allow 20 24 cigarette manufacturers that are not members of the master 20 25 settlement agreement and that are required to place moneys 20 26 into escrow on account of cigarettes to be sold in the state 20 27 to receive a refund of any excess escrow amounts remitting 20 28 because of fewer cigarettes sold than anticipated. The 20 29 amendments take effect upon enactment. 20 30 Code sections 518.18 and 518A.35 are amended to reduce the 20 31 premiums tax from 2 percent to 1 percent over four years and 20 32 increase the prepayment of such tax for county and state 20 33 mutual insurance associations. These amendments are effective 20 34 upon enactment. 20 35 The bill provides that the revaluation of machinery, 21 1 equipment, and computers authorized in Code section 427B.19B, 21 2 when insufficient replacement moneys are provided by the 21 3 state, is void and taxes payable based upon that revaluation 21 4 during the fiscal year beginning July 1, 2003, shall not be 21 5 levied or collected. This provision takes effect upon 21 6 enactment and Code section 427B.19B is repealed. 21 7 LSB 2570HV 80 21 8 mg/pj/5
Text: HF00696 Text: HF00698 Text: HF00600 - HF00699 Text: HF Index Bills and Amendments: General Index Bill History: General Index
© 2003 Cornell College and League of Women Voters of Iowa
Comments about this site or page?
webmaster@legis.iowa.gov.
Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.
Last update: Tue May 13 02:30:18 CDT 2003
URL: /DOCS/GA/80GA/Legislation/HF/00600/HF00697/030429.html
jhf