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PAG LIN 1 1 Section 1. Section 422.45, subsection 7, Code Supplement 1 2 2003, is amended to read as follows: 1 3 7. A private nonprofit educational institution in this 1 4 state, nonprofit private museum in this state, nonprofit 1 5 hospital licensed pursuant to chapter 135B in a city in this 1 6 state with a population of less than twenty thousand, tax- 1 7 certifying or tax-levying body or governmental subdivision of 1 8 the state, including the state board of regents, state 1 9 department of human services, state department of 1 10 transportation, a municipally owned solid waste facility which 1 11 sells all or part of its processed waste as fuel to a 1 12 municipally owned public utility, and all divisions, boards, 1 13 commissions, agencies, or instrumentalities of state, federal, 1 14 county, or municipal government which do not have earnings 1 15 going to the benefit of an equity investor or stockholder, may 1 16 make application to the department for the refund of the 1 17 sales, services, or use tax upon the gross receipts of all 1 18 sales of goods, wares, or merchandise, or from services 1 19 rendered, furnished, or performed, to a contractor, used in 1 20 the fulfillment of a written contract with the state of Iowa, 1 21 any political subdivision of the state, or a division, board, 1 22 commission, agency, or instrumentality of the state or a 1 23 political subdivision, a private nonprofit educational 1 24 institution in this state,ora nonprofit private museum in 1 25 this state, or a nonprofit hospital in a city in this state 1 26 with a population of less than twenty thousand, if the 1 27 property becomes an integral part of the project under 1 28 contract and at the completion of the project becomes public 1 29 property, is devoted to educational uses,orbecomes a 1 30 nonprofit private museum, or becomes part of the nonprofit 1 31 hospital; except goods, wares, or merchandise, or services 1 32 rendered, furnished, or performed used in the performance of 1 33 any contract in connection with the operation of any municipal 1 34 utility engaged in selling gas, electricity, or heat to the 1 35 general public or in connection with the operation of a 2 1 municipal pay television system; and except goods, wares, and 2 2 merchandise used in the performance of a contract for a 2 3 "project" under chapter 419 as defined in that chapter other 2 4 than goods, wares, or merchandise used in the performance of a 2 5 contract for a "project" under chapter 419 for which a bond 2 6 issue was approved by a municipality prior to July 1, 1968, or 2 7 for which the goods, wares, or merchandise becomes an integral 2 8 part of the project under contract and at the completion of 2 9 the project becomes public property,oris devoted to 2 10 educational uses, or becomes part of a nonprofit hospital in a 2 11 city in this state with a population of less than twenty 2 12 thousand. 2 13 a. Such contractor shall state under oath, on forms 2 14 provided by the department, the amount of such sales of goods, 2 15 wares, or merchandise or services rendered, furnished, or 2 16 performed and used in the performance of such contract, and 2 17 upon which sales or use tax has been paid, and shall file such 2 18 forms with the governmental unit, private nonprofit 2 19 educational institution,ornonprofit private museum, or 2 20 nonprofit hospital which has made any written contract for 2 21 performance by the contractor. The forms shall be filed by 2 22 the contractor with the governmental unit, educational 2 23 institution,ornonprofit private museum, or nonprofit 2 24 hospital before final settlement is made. 2 25 b. Such governmental unit, educational institution,or2 26 nonprofit private museum, or nonprofit hospital shall, not 2 27 more than one year after the final settlement has been made, 2 28 make application to the department for any refund of the 2 29 amount of the sales or use tax which shall have been paid upon 2 30 any goods, wares, or merchandise, or services rendered, 2 31 furnished, or performed, the application to be made in the 2 32 manner and upon forms to be provided by the department, and 2 33 the department shall forthwith audit the claim and, if 2 34 approved, issue a warrant to the governmental unit, 2 35 educational institution,ornonprofit private museum, or 3 1 nonprofit hospital in the amount of the sales or use tax which 3 2 has been paid to the state of Iowa under the contract. 3 3 Refunds authorized under this subsection shall accrue 3 4 interest at the rate in effect under section 421.7 from the 3 5 first day of the second calendar month following the date the 3 6 refund claim is received by the department. 3 7 c. Any contractor who shall willfully make false report of 3 8 tax paid under the provisions of this subsection shall be 3 9 guilty of a simple misdemeanor and in addition thereto shall 3 10 be liable for the payment of the tax and any applicable 3 11 penalty and interest. 3 12 Sec. 2. Section 422.45, Code Supplement 2003, is amended 3 13 by adding the following new subsection: 3 14 NEW SUBSECTION. 54C. The gross receipts from the sales of 3 15 goods, wares, or merchandise, or from services rendered, 3 16 furnished, or performed to a nonprofit hospital licensed 3 17 pursuant to chapter 135B in a city in this state with a 3 18 population of less than twenty thousand to be used for 3 19 construction at such hospital. 3 20 Sec. 3. Section 423.3, as enacted by 2003 Iowa Acts, First 3 21 Extraordinary Session, chapter 2, section 96, is amended by 3 22 adding the following new subsection: 3 23 NEW SUBSECTION. 29A. The sales price of goods, wares, or 3 24 merchandise sold, or of services furnished to a nonprofit 3 25 hospital licensed pursuant to chapter 135B in a city in this 3 26 state with a population of less than twenty thousand which are 3 27 used for construction at such hospital. 3 28 Sec. 4. Section 423.4, subsection 1, as enacted by 2003 3 29 Iowa Acts, First Extraordinary Session, chapter 2, section 97, 3 30 is amended to read as follows: 3 31 1. A private nonprofit educational institution in this 3 32 state, nonprofit private museum in this state, nonprofit 3 33 hospital licensed pursuant to chapter 135B in a city in this 3 34 state with a population of less than twenty thousand, tax- 3 35 certifying or tax-levying body or governmental subdivision of 4 1 the state, including the state board of regents, state 4 2 department of human services, state department of 4 3 transportation, a municipally owned solid waste facility which 4 4 sells all or part of its processed waste as fuel to a 4 5 municipally owned public utility, and all divisions, boards, 4 6 commissions, agencies, or instrumentalities of state, federal, 4 7 county, or municipal government which do not have earnings 4 8 going to the benefit of an equity investor or stockholder, may 4 9 make application to the department for the refund of the sales 4 10 or use tax upon the sales price of all sales of goods, wares, 4 11 or merchandise, or from services furnished to a contractor, 4 12 used in the fulfillment of a written contract with the state 4 13 of Iowa, any political subdivision of the state, or a 4 14 division, board, commission, agency, or instrumentality of the 4 15 state or a political subdivision, a private nonprofit 4 16 educational institution in this state,ora nonprofit private 4 17 museum in this state, or a nonprofit hospital in a city in 4 18 this state with a population of less than twenty thousand, if 4 19 the property becomes an integral part of the project under 4 20 contract and at the completion of the project becomes public 4 21 property, is devoted to educational uses,orbecomes a 4 22 nonprofit private museum, or becomes part of the nonprofit 4 23 hospital; except goods, wares, or merchandise, or services 4 24 furnished which are used in the performance of any contract in 4 25 connection with the operation of any municipal utility engaged 4 26 in selling gas, electricity, or heat to the general public or 4 27 in connection with the operation of a municipal pay television 4 28 system; and except goods, wares, and merchandise used in the 4 29 performance of a contract for a "project" under chapter 419 as 4 30 defined in that chapter other than goods, wares, or 4 31 merchandise used in the performance of a contract for a 4 32 "project" under chapter 419 for which a bond issue was 4 33 approved by a municipality prior to July 1, 1968, or for which 4 34 the goods, wares, or merchandise becomes an integral part of 4 35 the project under contract and at the completion of the 5 1 project becomes public property,oris devoted to educational 5 2 uses, or becomes part of a nonprofit hospital in a city in 5 3 this state with a population of less than twenty thousand. 5 4 a. Such contractor shall state under oath, on forms 5 5 provided by the department, the amount of such sales of goods, 5 6 wares, or merchandise, or services furnished and used in the 5 7 performance of such contract, and upon which sales or use tax 5 8 has been paid, and shall file such forms with the governmental 5 9 unit, private nonprofit educational institution,ornonprofit 5 10 private museum, or nonprofit hospital which has made any 5 11 written contract for performance by the contractor. The forms 5 12 shall be filed by the contractor with the governmental unit, 5 13 educational institution,ornonprofit private museum, or 5 14 nonprofit hospital before final settlement is made. 5 15 b. Such governmental unit, educational institution,or5 16 nonprofit private museum, or nonprofit hospital shall, not 5 17 more than one year after the final settlement has been made, 5 18 make application to the department for any refund of the 5 19 amount of the sales or use tax which shall have been paid upon 5 20 any goods, wares, or merchandise, or services furnished, the 5 21 application to be made in the manner and upon forms to be 5 22 provided by the department, and the department shall forthwith 5 23 audit the claim and, if approved, issue a warrant to the 5 24 governmental unit, educational institution,ornonprofit 5 25 private museum, or nonprofit hospital in the amount of the 5 26 sales or use tax which has been paid to the state of Iowa 5 27 under the contract. 5 28 Refunds authorized under this subsection shall accrue 5 29 interest at the rate in effect under section 421.7 from the 5 30 first day of the second calendar month following the date the 5 31 refund claim is received by the department. 5 32 c. Any contractor who willfully makes a false report of 5 33 tax paid under the provisions of this subsection is guilty of 5 34 a simple misdemeanor and in addition shall be liable for the 5 35 payment of the tax and any applicable penalty and interest. 6 1 Sec. 5. REFUNDS. Refunds of taxes, interest, or penalties 6 2 which arise from claims resulting from the enactment of 6 3 sections 1 and 2 of this Act, for sales of goods, wares, or 6 4 merchandise or services furnished which are used in the 6 5 construction of a nonprofit hospital occurring between July 1, 6 6 2002, and the effective date of sections 1 and 2 of this Act, 6 7 shall be limited to fifty thousand dollars in the aggregate 6 8 and shall not be allowed unless refund claims are filed prior 6 9 to October 1, 2004, notwithstanding any other provision of 6 10 law. If the amount of claims totals more than fifty thousand 6 11 dollars in the aggregate, the department of revenue shall 6 12 prorate the fifty thousand dollars among all claimants in 6 13 relation to the amounts of the claimants' valid claims. 6 14 Sec. 6. EFFECTIVE DATE AND RETROACTIVE APPLICABILITY 6 15 PROVISIONS. 6 16 1. This Act, except for sections 3 and 4 of this Act, 6 17 being deemed of immediate importance, takes effect upon 6 18 enactment and applies retroactively to July 1, 2002. 6 19 2. Sections 3 and 4 of this Act take effect July 1, 2004. 6 20 3. Sections 1 and 2 of this Act are void on and after July 6 21 1, 2004. 6 22 4. Section 5 of this Act ceases to apply after September 6 23 30, 2004. 6 24 EXPLANATION 6 25 This bill exempts the sale of goods, wares, or merchandise 6 26 or the furnishing of services to a nonprofit hospital located 6 27 in an Iowa city with a population of less than 20,000 for use 6 28 in the construction of such hospital. The exemption also 6 29 applies to the contractor who purchases or furnishes such 6 30 items in fulfillment of a construction contract for such 6 31 hospital. The bill also provides that if the sales or use tax 6 32 has been paid, the hospital may file for a refund of the tax 6 33 paid. 6 34 The bill provides for retroactive applicability to July 1, 6 35 2002, and provides that any refunds that may be claimed as a 7 1 result of the retroactive applicability of the exemption is 7 2 limited to $50,000 in the aggregate and the claims must be 7 3 filed by October 1, 2004. 7 4 LSB 5116HH 80 7 5 mg/gg/14
Text: HF02068 Text: HF02070 Text: HF02000 - HF02099 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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