Text: HF02573                           Text: HF02575
Text: HF02500 - HF02599                 Text: HF Index
Bills and Amendments: General Index     Bill History: General Index

House File 2574

Partial Bill History

Bill Text

PAG LIN
  1  1    Section 1.  Section 422.9, subsection 1, Code Supplement
  1  2 2003, is amended to read as follows:
  1  3    1.  An optional standard deduction, after deduction of
  1  4 federal income tax, equal to one thousand two hundred thirty
  1  5 dollars for a married person who files separately or a single
  1  6 person or equal to three thousand thirty dollars for a husband
  1  7 and wife who file a joint return, a surviving spouse, or an
  1  8 unmarried head of household.  The optional standard deduction
  1  9 shall not exceed the amount remaining after deduction of the
  1 10 federal income tax.  The amount of federal income tax deducted
  1 11 shall be computed as provided in subsection 2, paragraph "b".
  1 12    Sec. 2.  Section 422.9, subsection 2, paragraph b, Code
  1 13 Supplement 2003, is amended to read as follows:
  1 14    b.  Add the amount of federal income taxes paid or accrued
  1 15 as the case may be, during the tax year, adjusted by and
  1 16 subtract any federal income tax refunds received during the
  1 17 tax year.  Provided, however, that where Where married
  1 18 persons, who have filed a joint federal income tax return,
  1 19 file separately, such total shall be divided between them
  1 20 according to the portion thereof of the total paid or accrued,
  1 21 as the case may be, by each.  Federal income taxes paid for a
  1 22 tax year in which an Iowa return was not required to be filed
  1 23 shall not be added, and federal income tax refunds received
  1 24 from a tax year in which an Iowa return was not required to be
  1 25 filed shall not be subtracted.
  1 26    Sec. 3.  Section 422.35, Code Supplement 2003, is amended
  1 27 by adding the following new subsection:
  1 28    NEW SUBSECTION.  20.  Subtract the amount of foreign
  1 29 dividend income, including Subpart F income as defined in
  1 30 section 952 of the Internal Revenue Code, based upon the
  1 31 percentage of ownership as set forth in section 243 of the
  1 32 Internal Revenue Code.
  1 33    Sec. 4.  Section 422A.1, unnumbered paragraph 3, Code
  1 34 Supplement 2003, is amended to read as follows:
  1 35    A local hotel and motel tax shall be imposed on January 1,
  2  1 April 1, or July 1, or October 1, following the notification
  2  2 of the director of revenue.  Once imposed, the tax shall
  2  3 remain in effect at the rate imposed for a minimum of one
  2  4 year.  A local hotel and motel tax shall terminate only on
  2  5 March 31, June 30, September 30, or December 31.  At least
  2  6 forty-five days prior to the tax being effective or prior to a
  2  7 revision in the tax rate, or prior to the repeal of the tax, a
  2  8 city or county shall provide notice by mail of such action to
  2  9 the director of revenue.
  2 10    Sec. 5.  Section 422E.3A, subsection 3, paragraph a, Code
  2 11 Supplement 2003, is amended to read as follows:
  2 12    a.  The director of revenue by June 1 preceding August 15
  2 13 of each fiscal year shall compute the guaranteed school
  2 14 infrastructure amount for each school district, each school
  2 15 district's sales tax capacity per student for each county, and
  2 16 the supplemental school infrastructure amount for the coming
  2 17 fiscal year.
  2 18    Sec. 6.  Section 423.1, subsection 50, as enacted by 2003
  2 19 Iowa Acts, First Extraordinary Session, chapter 2, section 94,
  2 20 is amended to read as follows:
  2 21    50.  "Services" means all acts or services rendered,
  2 22 furnished, or performed, other than services used in
  2 23 processing of tangible personal property for use in retail
  2 24 sales or services, for an employer, as defined in section
  2 25 422.4, subsection 3 who pays the wages of an employee, for a
  2 26 valuable consideration by any person engaged in any business
  2 27 or occupation specifically enumerated in section 423.2.  The
  2 28 tax shall be due and collectible when the service is rendered,
  2 29 furnished, or performed for the ultimate user of the service.
  2 30    Sec. 7.  Section 425.1, subsection 4, Code Supplement 2003,
  2 31 is amended to read as follows:
  2 32    4.  Annually the department of revenue shall estimate the
  2 33 credit not to exceed the actual levy on the first four
  2 34 thousand eight hundred fifty dollars of actual value of each
  2 35 eligible homestead, and shall certify to the county auditor of
  3  1 each county the credit and its amount in dollars.  Each county
  3  2 auditor shall then enter the credit against the tax levied on
  3  3 each eligible homestead in each county payable during the
  3  4 ensuing year, designating on the tax lists the credit as being
  3  5 from the homestead credit fund, and credit shall then be given
  3  6 to the several taxing districts in which eligible homesteads
  3  7 are located in an amount equal to the credits allowed on the
  3  8 taxes of the homesteads.  The amount of credits shall be
  3  9 apportioned by each county treasurer to the several taxing
  3 10 districts as provided by law, in the same manner as though the
  3 11 amount of the credit had been paid by the owners of the
  3 12 homesteads.  However, the several taxing districts shall not
  3 13 draw the funds so credited until after the semiannual
  3 14 allocations have been received by the county treasurer, as
  3 15 provided in this chapter.  Each county treasurer shall show on
  3 16 each tax receipt the amount of credit received from the
  3 17 homestead credit fund.
  3 18    Sec. 8.  Section 432.1, subsection 6, paragraph b,
  3 19 unnumbered paragraph 1, Code Supplement 2003, is amended to
  3 20 read as follows:
  3 21    In addition to the prepayment amount in paragraph "a", each
  3 22 life insurance company or association which is subject to tax
  3 23 under subsection 1 of this section and each mutual health
  3 24 service corporation which is subject to tax under section
  3 25 432.2 shall remit on or before June 30 August 15, on a
  3 26 prepayment basis, an additional amount equal to the following
  3 27 percent of the premium tax liability for the preceding
  3 28 calendar year as follows:
  3 29    Sec. 9.  Section 432.1, subsection 6, paragraph c,
  3 30 unnumbered paragraph 1, Code Supplement 2003, is amended to
  3 31 read as follows:
  3 32    In addition to the prepayment amount in paragraph "a", each
  3 33 insurance company or association, other than a life insurance
  3 34 company or association, which is subject to tax under
  3 35 subsection 3 shall remit on or before June 30 August 15, on a
  4  1 prepayment basis, an additional amount equal to the following
  4  2 percent of the premium tax liability for the preceding
  4  3 calendar year as follows:
  4  4    Sec. 10.  Section 441.6, unnumbered paragraph 2, Code
  4  5 Supplement 2003, is amended to read as follows:
  4  6    Upon receipt of the report of the examining board, the
  4  7 chairperson of the conference board shall by written notice
  4  8 call a meeting of the conference board to appoint an assessor.
  4  9 The meeting shall be held not later than seven days after the
  4 10 receipt of the report of the examining board by the conference
  4 11 board.  The physical condition, general reputation of the
  4 12 applicants, and their fitness for the position as determined
  4 13 by the examining board shall be taken into consideration in
  4 14 making the appointment.  At the meeting, the conference board
  4 15 shall appoint an assessor from the register of eligible
  4 16 candidates.  However, if a special examination has not been
  4 17 conducted previously for the same vacancy, the conference
  4 18 board may request the director of revenue to hold a special
  4 19 examination pursuant to section 441.7.  The chairperson of the
  4 20 conference board shall give written notice to the director of
  4 21 revenue of the appointment and its effective date within ten
  4 22 days of the decision of the board.
  4 23    Sec. 11.  Section 441.8, unnumbered paragraph 1, Code
  4 24 Supplement 2003, is amended to read as follows:
  4 25    The term of office of an assessor appointed under this
  4 26 chapter shall be for six years.  Appointments for each
  4 27 succeeding term shall be made in the same manner as the
  4 28 original appointment except that not less than ninety days
  4 29 before the expiration of the term of the assessor the
  4 30 conference board shall hold a meeting to determine whether or
  4 31 not it desires to reappoint the incumbent assessor to a new
  4 32 term.  If the decision is made not to reappoint the assessor,
  4 33 the assessor shall be notified, in writing, of such decision
  4 34 not less than ninety days prior to the expiration of the
  4 35 assessor's term of office.  Failure of the conference board to
  5  1 provide timely notification of the decision not to reappoint
  5  2 the assessor shall result in the assessor being reappointed.
  5  3    Sec. 12.  Section 441.8, unnumbered paragraphs 6 and 7,
  5  4 Code Supplement 2003, are amended to read as follows:
  5  5    Upon receiving credit equal to one hundred fifty hours of
  5  6 classroom instruction during the assessor's current term of
  5  7 office of which at least ninety of the one hundred fifty hours
  5  8 are from courses requiring an examination upon conclusion of
  5  9 the course, the director of revenue shall certify to the
  5 10 assessor's conference board that the assessor is eligible to
  5 11 be reappointed to the position.  For persons appointed to
  5 12 complete an unexpired term, the number of credits required to
  5 13 be certified as eligible for reappointment shall be prorated
  5 14 according to the amount of time remaining in the present term
  5 15 of the assessor.  If the person was an assessor in another
  5 16 jurisdiction, the assessor may carry forward any credit hours
  5 17 received in the previous position in excess of the number that
  5 18 would be necessary to be considered current in that position.
  5 19 Upon written request by the person seeking a waiver of the
  5 20 continuing education requirements, the director may waive the
  5 21 continuing education requirements if the director determines
  5 22 good cause exists for the waiver.
  5 23    Within each six-year period following the appointment of a
  5 24 deputy assessor, the deputy assessor shall comply with this
  5 25 section except that upon the successful completion of ninety
  5 26 hours of classroom instruction of which at least sixty of the
  5 27 ninety hours are from courses requiring an examination upon
  5 28 conclusion of the course, the deputy assessor shall be
  5 29 certified by the director of revenue as being eligible to
  5 30 remain in the position.  If a deputy assessor fails to comply
  5 31 with this section, the deputy assessor shall be removed from
  5 32 the position until successful completion of the required hours
  5 33 of credit.  If a deputy is appointed to the office of
  5 34 assessor, the hours of credit obtained as deputy pursuant to
  5 35 this section shall be credited to that individual as assessor
  6  1 and for the individual to be reappointed at the expiration of
  6  2 the term as assessor, that individual must obtain the credits
  6  3 which are necessary to total the number of hours for
  6  4 reappointment.  Upon written request by the person seeking a
  6  5 waiver of the continuing education requirements, the director
  6  6 may waive the continuing education requirements if the
  6  7 director determines good cause exists for the waiver.
  6  8    Sec. 13.  Section 441.21, subsection 2, Code Supplement
  6  9 2003, is amended to read as follows:
  6 10    2.  In the event market value of the property being
  6 11 assessed cannot be readily established in the foregoing
  6 12 manner, then the assessor may determine the value of the
  6 13 property using the other uniform and recognized appraisal
  6 14 methods including its productive and earning capacity, if any,
  6 15 industrial conditions, its cost, physical and functional
  6 16 depreciation and obsolescence and replacement cost, and all
  6 17 other factors which would assist in determining the fair and
  6 18 reasonable market value of the property but the actual value
  6 19 shall not be determined by use of only one such factor.  The
  6 20 following shall not be taken into consideration:  Special
  6 21 value or use value of the property to its present owner, and
  6 22 the good will or value of a business which uses the property
  6 23 as distinguished from the value of the property as property.
  6 24 However, in assessing property that is rented or leased to
  6 25 low-income individuals and families as authorized by section
  6 26 42 of the Internal Revenue Code, as amended, and which section
  6 27 limits the amount that establishes annually the rent the
  6 28 individual or family pays for the rental or lease of units in
  6 29 the property, the assessor shall use the productive and
  6 30 earning capacity from the actual rents received as a method of
  6 31 appraisal and shall take into account the extent to which that
  6 32 use and limitation reduces the market value of the property
  6 33 section 42 rents in conjunction with the income method of
  6 34 appraisal in compliance with the uniform standards of
  6 35 professional appraisal practice to arrive at the assessed
  7  1 value for the property.  In no case shall the value of the
  7  2 property exceed the assessed value if it had been valued
  7  3 without consideration to the special procedures established
  7  4 herein for section 42 properties.  In arriving at the actual
  7  5 value of the property, the impact of applicable rent
  7  6 restrictions, affordability requirements, or any other related
  7  7 restrictions prescribed by any federal or state programs shall
  7  8 be considered.  The assessor shall not directly or indirectly
  7  9 consider any tax credit equity or other subsidized financing
  7 10 as income provided to the property in determining the assessed
  7 11 value.  An owner of section 42 property may elect to not have
  7 12 such property assessed using the section 42 valuation process
  7 13 by notifying the assessor in writing prior to March 1 of each
  7 14 assessment year.  Upon adoption of uniform rules by the
  7 15 revenue department or succeeding authority covering
  7 16 assessments and valuations of such properties, said valuation
  7 17 on such properties shall be determined in accordance therewith
  7 18 for assessment purposes to assure uniformity, but such rules
  7 19 shall not be inconsistent with or change the foregoing means
  7 20 of determining the actual, market, taxable and assessed
  7 21 values.
  7 22    Sec. 14.  Section 441.38, subsection 2, Code 2003, is
  7 23 amended to read as follows:
  7 24    2.  Notice of appeal shall be served as an original notice
  7 25 on the chairperson, presiding officer, or clerk of the board
  7 26 of review after the filing of notice under subsection 1 with
  7 27 the clerk of district court within twenty days after its
  7 28 adjournment or May 31, whichever is later.
  7 29    Sec. 15.  NEW SECTION.  441.40A  REIMBURSEMENT OF APPELLANT
  7 30 COSTS.
  7 31    Where the board of review or court, as applicable,
  7 32 determines the appellant's property was originally assessed
  7 33 for more than one hundred ten percent of its post-appeal
  7 34 value, the assessor shall pay all costs of the taxpayer's
  7 35 appeal, including but not limited to, reasonable attorney
  8  1 fees, appraisal reports, expert testimony, court recorders,
  8  2 depositions, travel and lodging, and any other reasonably
  8  3 related costs incurred by the appellant.
  8  4    Sec. 16.  Section 452A.2, subsection 19, unnumbered
  8  5 paragraph 2, Code Supplement 2003, is amended to read as
  8  6 follows:
  8  7    "Motor fuel" does not include special fuel, and does not
  8  8 include liquefied gases which would not exist as liquids at a
  8  9 temperature of sixty degrees Fahrenheit and a pressure of
  8 10 fourteen and seven-tenths pounds per square inch absolute, or
  8 11 naphthas and solvents unless the liquefied gases or naphthas
  8 12 and solvents are used as a component in the manufacture,
  8 13 compounding, or blending of a liquid within paragraph "b", in
  8 14 which event the resulting product shall be deemed to be motor
  8 15 fuel.  "Motor fuel" does not include methanol unless blended
  8 16 with other motor fuels for use in an aircraft or for
  8 17 propelling motor vehicles.
  8 18    Sec. 17.  Section 452A.2, subsection 25, Code Supplement
  8 19 2003, is amended to read as follows:
  8 20    25.  "Special fuel" means fuel oils and all combustible
  8 21 gases and liquids suitable for the generation of power for
  8 22 propulsion of motor vehicles or turbine-powered aircraft, and
  8 23 includes any substance used for that purpose, except that it
  8 24 does not include motor fuel.  Kerosene shall not be considered
  8 25 to be a special fuel, unless blended with other special fuels
  8 26 for use in a motor vehicle with a diesel engine.  Methanol
  8 27 shall not be considered to be a special fuel, unless blended
  8 28 with other special fuels for use in a motor vehicle with a
  8 29 diesel engine.
  8 30    Sec. 18.  Section 452A.10, unnumbered paragraphs 1, 2, and
  8 31 4, Code 2003, are amended to read as follows:
  8 32    A motor fuel or special fuel supplier, restrictive
  8 33 supplier, importer, exporter, blender, dealer, user, common
  8 34 carrier, contract carrier, or terminal, or nonterminal storage
  8 35 facility shall maintain, for a period of three years, records
  9  1 of all transactions by which the supplier, restrictive
  9  2 supplier, or importer withdraws from a terminal or nonterminal
  9  3 storage facility within this state or imports into this state
  9  4 motor fuel or undyed special fuel together with invoices,
  9  5 bills of lading, and other pertinent records and papers as
  9  6 required by the department.
  9  7    If in the normal conduct of a supplier's, restrictive
  9  8 supplier's, importer's, exporter's, blender's, dealer's,
  9  9 user's, common carrier's, contract carrier's, or terminal's,
  9 10 or nonterminal storage facility's business the records are
  9 11 maintained and kept at an office outside this state, the
  9 12 records shall be made available for audit and examination by
  9 13 the department at the office outside this state, but the audit
  9 14 and examination shall be without expense to this state.
  9 15    The department, after an audit and examination of records
  9 16 required to be maintained under this section, may authorize
  9 17 their disposal upon the written request of the supplier,
  9 18 restrictive supplier, importer, exporter, blender, dealer,
  9 19 user, carrier, terminal, nonterminal storage facility, or
  9 20 distributor.
  9 21    Sec. 19.  Section 452A.62, subsection 1, paragraph a, Code
  9 22 Supplement 2003, is amended to read as follows:
  9 23    a.  A distributor, supplier, restrictive supplier,
  9 24 importer, exporter, blender, terminal operator, nonterminal
  9 25 storage facility, common carrier, or contract carrier,
  9 26 pertaining to motor fuel or undyed special fuel withdrawn from
  9 27 a terminal or nonterminal storage facility, or brought into
  9 28 this state.
  9 29    Sec. 20.  Section 452A.62, subsection 2, unnumbered
  9 30 paragraph 1, Code Supplement 2003, is amended to read as
  9 31 follows:
  9 32    To examine the records, books, papers, receipts, and
  9 33 invoices of any distributor, supplier, restrictive supplier,
  9 34 importer, blender, exporter, terminal operator, nonterminal
  9 35 storage facility, licensed compressed natural gas or liquefied
 10  1 petroleum gas dealer or user, or any other person who
 10  2 possesses fuel upon which the tax has not been paid to
 10  3 determine financial responsibility for the payment of the
 10  4 taxes imposed by this chapter.
 10  5    Sec. 21.  Section 452A.85, Code Supplement 2003, is amended
 10  6 by adding the following new subsection:
 10  7    NEW SUBSECTION.  4.  This section does not apply to an
 10  8 increase in the tax rate of a specified fuel, except for
 10  9 compressed natural gas, unless the increase in the tax rate of
 10 10 that fuel is in excess of one-half cent per gallon.
 10 11    Sec. 22.  Section 453A.1, Code Supplement 2003, is amended
 10 12 by adding the following new subsection:
 10 13    NEW SUBSECTION.  5A.  "Counterfeit cigarettes" means
 10 14 cigarettes, packages of cigarettes, cartons of cigarettes, or
 10 15 other containers of cigarettes with a label, trademark,
 10 16 service mark, trade name, device, design, or word adopted or
 10 17 used by a cigarette manufacturer to identify its product that
 10 18 is false or used without authority of the cigarette
 10 19 manufacturer.
 10 20    Sec. 23.  Section 453A.13, subsection 5, Code 2003, is
 10 21 amended to read as follows:
 10 22    5.  APPLICATION – BOND.  Said permits Permits shall be
 10 23 issued only upon applications accompanied by the fee indicated
 10 24 above, and by an adequate bond as provided in section 453A.14,
 10 25 and upon forms furnished by the department upon written
 10 26 request.  The failure to furnish such forms shall be no excuse
 10 27 for the failure to file the same forms unless absolute refusal
 10 28 is shown.  Said The forms shall set forth:
 10 29    a.  The manner under which such the distributor,
 10 30 wholesaler, or retailer, transacts or intends to transact such
 10 31 business as a distributor, wholesaler, or retailer.
 10 32    b.  The principal office, residence, and place of business,
 10 33 for which where the permit is to apply.
 10 34    c.  If the applicant is not an individual, the principal
 10 35 officers or members thereof, not to exceed three, and their
 11  1 addresses.
 11  2    d.  Such Any other information as the director shall by
 11  3 rules prescribe.
 11  4    Sec. 24.  Section 453A.15, Code 2003, is amended by adding
 11  5 the following new subsection:
 11  6    NEW SUBSECTION.  7.  The director may require by rule that
 11  7 reports required to be made under this division be filed by
 11  8 electronic transmission.
 11  9    Sec. 25.  Section 453A.18, Code 2003, is amended to read as
 11 10 follows:
 11 11    453A.18  FORMS FOR RECORDS AND REPORTS.
 11 12    The department shall furnish or make available in
 11 13 electronic form, without charge, to holders of the various
 11 14 permits, forms in sufficient quantities to enable permit
 11 15 holders to make the reports required to be made under this
 11 16 division.  The permit holders shall furnish at their own
 11 17 expense the books, records, and invoices, required to be used
 11 18 and kept, but the books, records, and invoices shall be in
 11 19 exact conformity to the forms prescribed for that purpose by
 11 20 the director, and shall be kept and used in the manner
 11 21 prescribed by the director.  However, the director may, by
 11 22 express order in certain cases, authorize permit holders to
 11 23 keep their records in a manner and upon forms other than those
 11 24 so prescribed.  The authorization may be revoked at any time.
 11 25    Sec. 26.  Section 453A.25, subsection 3, Code 2003, is
 11 26 amended to read as follows:
 11 27    3.  The director is hereby authorized to appoint an
 11 28 assistant, whose sole duty it shall be may designate employees
 11 29 to administer and enforce the provisions of this chapter,
 11 30 including the collection of all taxes provided for herein in
 11 31 this chapter.  In such enforcement the director may request
 11 32 aid from the attorney general, the special agents of the
 11 33 state, any county attorney or any peace officer.  The director
 11 34 is authorized to may appoint such clerks and additional help
 11 35 as may be needed to carry out the provisions of administer
 12  1 this chapter.
 12  2    Sec. 27.  Section 453A.32, subsections 1, 4, and 5, Code
 12  3 2003, are amended to read as follows:
 12  4    1.  All cigarettes on which taxes are imposed or required
 12  5 to be imposed by this division, which are found in the
 12  6 possession or custody, or within the control of any person,
 12  7 for the purpose of being sold, distributed, or removed by the
 12  8 person in violation of this division, and all cigarettes which
 12  9 are removed or are, stored, transported, deposited, or
 12 10 concealed in any place with intent to avoid payment of taxes
 12 11 without the proper taxes paid, and any automobile, truck,
 12 12 boat, conveyance, or other vehicle whatsoever, used in the
 12 13 removal, storage, deposit, concealment, or transportation of
 12 14 cigarettes for such the purpose of avoiding the payment of the
 12 15 proper tax, and all equipment or other tangible personal
 12 16 property incident to and used for such the purpose of avoiding
 12 17 the payment of the proper tax, found in the place, building,
 12 18 or vehicle where cigarettes are found, and all counterfeit
 12 19 cigarettes, may be seized by the department, with or without
 12 20 process and shall be from the time of the seizure forfeited to
 12 21 the state of Iowa.  A proceeding in the nature of a proceeding
 12 22 in rem shall be filed in a court of competent jurisdiction in
 12 23 the county of seizure to maintain the seizure and declare and
 12 24 perfect the forfeiture.  All cigarettes, counterfeit
 12 25 cigarettes, vehicles, and property seized, remaining in the
 12 26 possession or custody of the department, sheriff or other
 12 27 officer for forfeiture or other disposition as provided by
 12 28 law, are not subject to replevin.
 12 29    4.  In the event final judgment is rendered in the
 12 30 forfeiture proceedings aforesaid, maintaining the seizure, and
 12 31 declaring and perfecting the forfeiture of said the seized
 12 32 property, the court shall order and decree the sale thereof of
 12 33 the seized property, other than the counterfeit cigarettes, to
 12 34 the highest bidder, by the sheriff at public auction in the
 12 35 county of seizure after notice is given in the manner provided
 13  1 in the case of the sale of personal property under execution,
 13  2 and the proceeds of such sale, less expense of seizure and
 13  3 court costs, shall be paid into the state treasury.
 13  4 Counterfeit cigarettes shall be destroyed or disposed of in a
 13  5 manner determined by the director.
 13  6    5.  In the event the cigarettes seized hereunder and sought
 13  7 to be sold upon forfeiture shall be are unstamped, the
 13  8 cigarettes shall be sold by the director or the director's
 13  9 designee to the highest bidder among the licensed distributors
 13 10 holding a permit in this state after written notice has been
 13 11 mailed to all such distributors.  If there is no bidder, or in
 13 12 the opinion of the director the quantity of cigarettes to be
 13 13 sold is insufficient, or for any other reason such disposition
 13 14 of the cigarettes is impractical, the cigarettes shall be
 13 15 destroyed or disposed of in a manner as determined by the
 13 16 director.  The proceeds of such from the sales shall be paid
 13 17 into the state treasury.
 13 18    Sec. 28.  Section 453A.36, subsection 6, Code 2003, is
 13 19 amended to read as follows:
 13 20    6.  Any sales of cigarettes or tobacco products made
 13 21 through a cigarette vending machine are subject to rules and
 13 22 penalties relative to retail sales of cigarettes and tobacco
 13 23 products provided for in this chapter.  No cigarettes shall
 13 24 Cigarettes shall not be sold through any cigarette vending
 13 25 machine unless the cigarettes have been properly stamped or
 13 26 metered as provided by this division, and in case of violation
 13 27 of this provision, the permit of the dealer authorizing retail
 13 28 sales of cigarettes shall be canceled revoked.  Payment of the
 13 29 license permit fee as provided in section 453A.13 authorizes a
 13 30 cigarette vendor to sell cigarettes or tobacco products
 13 31 through vending machines.  However, cigarettes or tobacco
 13 32 products shall not be sold through a vending machine unless
 13 33 the vending machine is located in a place where the retailer
 13 34 ensures that no person younger than eighteen years of age is
 13 35 present or permitted to enter at any time.  This section does
 14  1 not require a retail licensee permit holder to buy a cigarette
 14  2 vendor's permit if the retail licensee permit holder is in
 14  3 fact the owner of the cigarette vending machines and the
 14  4 machines are operated in the location described in the retail
 14  5 permit.
 14  6    Sec. 29.  Section 453A.36, Code 2003, is amended by adding
 14  7 the following new subsection:
 14  8    NEW SUBSECTION.  9.  It is unlawful for a person to ship or
 14  9 import into this state or to offer for sale, sell, distribute,
 14 10 transport, or possess counterfeit cigarettes, knowing such
 14 11 cigarettes are counterfeit cigarettes or having reasonable
 14 12 cause to believe that such cigarettes are counterfeit
 14 13 cigarettes.
 14 14    Sec. 30.  Section 453A.38, Code 2003, is amended to read as
 14 15 follows:
 14 16    453A.38  COUNTERFEITING AND PREVIOUSLY USED STAMPS.
 14 17    Any person who shall print, engrave, make, issue, sell, or
 14 18 circulate, or shall possess or have in the person's possession
 14 19 with intent to use, sell, circulate, or pass, any counterfeit
 14 20 stamp or previously used stamp, or who shall use, or consent
 14 21 to the use of, any counterfeit stamp or previously used stamp
 14 22 in connection with the sale, or offering for sale, of any
 14 23 cigarettes, or who shall place, or cause to be placed, on any
 14 24 individual package of cigarettes, any counterfeit stamp or
 14 25 previously used stamp, shall be is guilty of an aggravated
 14 26 misdemeanor.  A person in violation of this section is also
 14 27 subject to the penalty provided in section 453A.31, subsection
 14 28 1.
 14 29    Sec. 31.  Section 453A.40, subsection 1, Code Supplement
 14 30 2003, is amended to read as follows:
 14 31    1.  All persons required to be licensed hold a
 14 32 distributor's permit under section 453A.13 as distributors
 14 33 having in their possession and held for resale on the
 14 34 effective date of an increase in the tax rate cigarettes or
 14 35 little cigars upon which the tax under section 453A.6 or
 15  1 453A.43 has been paid, unused cigarette tax stamps which have
 15  2 been paid for under section 453A.8, or unused metered imprints
 15  3 which have been paid for under section 453A.12 shall be
 15  4 subject to an inventory tax on the items as provided in this
 15  5 section.
 15  6    Sec. 32.  Section 453A.45, subsection 5, unnumbered
 15  7 paragraph 2, Code 2003, is amended to read as follows:
 15  8    Such report shall be made on forms provided by the director
 15  9 or the director may require by rule that the report be filed
 15 10 by electronic transmission.
 15 11    Sec. 33.  Section 453A.46, Code 2003, is amended by adding
 15 12 the following new subsection:
 15 13    NEW SUBSECTION.  7.  The director may require by rule that
 15 14 reports be filed by electronic transmission.
 15 15    Sec. 34.  Section 518.18, subsection 3, paragraph b,
 15 16 unnumbered paragraph 1, Code Supplement 2003, is amended to
 15 17 read as follows:
 15 18    In addition to the prepayment amount in paragraph "a", each
 15 19 association shall remit on or before June 30 August 15, on a
 15 20 prepayment basis, an additional amount equal to the following
 15 21 percent of the premium tax liability for the preceding
 15 22 calendar year as follows:
 15 23    Sec. 35.  Section 518A.35, subsection 3, paragraph b,
 15 24 unnumbered paragraph 1, Code Supplement 2003, is amended to
 15 25 read as follows:
 15 26    In addition to the prepayment amount in paragraph "a", each
 15 27 association shall remit on or before June 30 August 15, on a
 15 28 prepayment basis, an additional amount equal to the following
 15 29 percent of the premium tax liability for the preceding
 15 30 calendar year as follows:
 15 31    Sec. 36.  EFFECTIVE DATE.  The sections of this Act
 15 32 amending sections 422.35, 432.1, 518.18, and 518A.35, being
 15 33 deemed of immediate importance, take effect upon enactment.
 15 34    Sec. 37.  RETROACTIVE APPLICABILITY.  Sections 1 and 2 of
 15 35 this Act, amending Code section 422.9, apply retroactively to
 16  1 January 1, 2004, for tax years beginning on or after that
 16  2 date.  
 16  3                           EXPLANATION
 16  4    This bill relates to the technical administration of the
 16  5 tax and related laws by the department of revenue.
 16  6    Code sections 422.9(1) and 422.9(2)(b) are amended to
 16  7 provide that no adjustment for federal income tax is allowed
 16  8 for a tax year in which an Iowa return was not required to be
 16  9 filed.  This change is applicable beginning with the 2004 tax
 16 10 year.
 16 11    Code section 422.35 is amended to provide for an exclusion
 16 12 for foreign dividend income.  This codifies current practice
 16 13 and administrative rules of the Iowa department of revenue
 16 14 based on the United States Supreme Court decision in Kraft
 16 15 General Foods, Inc. v. Iowa Department of Revenue and Finance,
 16 16 505 U.S. 71 (1992).  This section of the bill takes effect
 16 17 upon enactment.
 16 18    Code section 422A.1 is amended to provide that local hotel
 16 19 and motel tax shall be imposed beginning on January 1 and July
 16 20 1 only and terminated as of June 30 and December 31 only.
 16 21    Code section 422E.3A(3)(a) is amended to change the date
 16 22 for the department of revenue to estimate the school
 16 23 infrastructure local option tax from June 1 to August 15.
 16 24 Currently, all other local option estimates are required to be
 16 25 made by August 15.
 16 26    Code section 423.1(50) is amended to define "employer" for
 16 27 purposes of the state sales tax on services as the person who
 16 28 actually pays the wages of an employee.
 16 29    Code section 425.1(4) is amended to rescind the requirement
 16 30 that the department estimate the amount of homestead tax
 16 31 credits payable to the counties each year.
 16 32    Code section 432.1 is amended to change from June 30 to
 16 33 August 15 the date that insurance premium prepayments payable
 16 34 by insurance companies are due.  Code sections 518.18 and
 16 35 518.18A are amended to change from June 30 to August 15 the
 17  1 date that insurance premium prepayments payable by county and
 17  2 state mutual insurance associations are due.  These sections
 17  3 of the bill are effective upon enactment.
 17  4    Code section 441.6 is amended to strike the physical
 17  5 condition and reputation of a person as criteria used by the
 17  6 examining board in determining the person's qualifications for
 17  7 appointment to the position of county or city assessor.
 17  8    Code section 441.8 is amended to permit the director of
 17  9 revenue to waive the assessor and deputy assessor continuing
 17 10 education requirements for good cause.  Code section 441.8 is
 17 11 also amended to require the conference board to notify the
 17 12 assessor at least 90 days prior to the expiration of the
 17 13 assessor's term of office if the assessor is not to be
 17 14 reappointed.
 17 15    Code section 441.21 is amended to provide that Internal
 17 16 Revenue Code section 42 low-income housing may be assessed
 17 17 using the income method of appraisal in conjunction with the
 17 18 section 42 rental amounts on the property.  The bill provides
 17 19 that in no case shall the assessment arrived at based on this
 17 20 method exceed the assessed value of the property.  The section
 17 21 is also amended to allow the owner of section 42 property to
 17 22 elect not to have the property assessed based on the income
 17 23 method of appraisal in conjunction with the section 42 rental
 17 24 amounts.
 17 25    Code section 441.38(2) is amended to require the property
 17 26 owner to file notice of appeal to district court with the
 17 27 local board of review within 20 days after the board's
 17 28 adjournment or May 31, whichever is later.
 17 29    Code section 441.40A is enacted to provide that in a
 17 30 property assessment appeal if the local board of review or
 17 31 court, as applicable, determines that the property in question
 17 32 was assessed at more than 110 percent of its post-appeal
 17 33 value, the assessor shall pay all reasonable costs of the
 17 34 taxpayer's appeal.
 17 35    Code section 452A.2(19) and (25) is amended to state that,
 18  1 for fuel tax purposes, methanol is not a special fuel unless
 18  2 blended for use in a motor vehicle with a diesel engine and is
 18  3 not a motor fuel unless blended for use in aircraft or a motor
 18  4 vehicle.
 18  5    Code sections 452A.10, 452A.62(1)(a), and 452A.62(2) are
 18  6 amended to require nonterminal storage facilities to maintain
 18  7 the same records as terminals for withdrawals and importation
 18  8 of certain motor and special fuels.
 18  9    Code section 452A.85 is amended to provide that the
 18 10 inventory tax does not apply unless the increase in the fuel
 18 11 tax rate is more than one-half cent per gallon.
 18 12    Code section 453A.1 is amended to define "counterfeit
 18 13 cigarettes".
 18 14    Code section 453A.13(5) is amended to require furnishing of
 18 15 the names and addresses of all officers of the business
 18 16 applying for a bond to obtain a cigarette permit.
 18 17    Code section 453A.15 is amended to give the director the
 18 18 authority to require that cigarette reports be filed by
 18 19 electronic transmission.
 18 20    Code section 453A.18 authorizes the department to furnish
 18 21 permit holders with electronic forms in lieu of paper forms.
 18 22    Code section 453A.25(3) is amended to delete the
 18 23 requirement that the director appoint a person whose only
 18 24 responsibility is to administer cigarette and tobacco taxes.
 18 25    Code section 453A.32, subsections (1), (4), and (5), are
 18 26 amended to strengthen the language relating to the seizure and
 18 27 forfeiture of unstamped cigarettes and to reflect that
 18 28 cigarette distributors receive a permit, not a license, to do
 18 29 business in Iowa.  The section is also amended to include
 18 30 counterfeit cigarettes in these provisions.
 18 31    Code section 453A.36(6) is amended to clarify that
 18 32 cigarette retailers receive a permit, not a license, to do
 18 33 business in Iowa.
 18 34    Code section 453A.36 is amended to make it unlawful to ship
 18 35 or import into Iowa or sell, distribute, transport, or possess
 19  1 counterfeit cigarettes and allows for the confiscation and
 19  2 destruction of those cigarettes.
 19  3    Code section 453A.38 is amended to subject cigarette
 19  4 counterfeiters to a civil penalty in addition to the current
 19  5 criminal penalty.
 19  6    Code section 453A.40(1) is amended to reflect that
 19  7 cigarette distributors receive a permit rather than a license
 19  8 to do business in Iowa.
 19  9    Code section 453A.45(5) is amended to give the director the
 19 10 authority to require by rule that tobacco transportation
 19 11 reports be filed electronically.
 19 12    Code section 453A.46 is amended to give the director the
 19 13 authority to require by rule that distributors file tobacco
 19 14 reports electronically.  
 19 15 LSB 6925HV 80
 19 16 sc/pj/5
     
Text: HF02573                           Text: HF02575
Text: HF02500 - HF02599                 Text: HF Index
Bills and Amendments: General Index     Bill History: General Index

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