Text: HSB00316 Text: HSB00318 Text: HSB00300 - HSB00399 Text: HSB 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 427B.19B, Code 2003, is amended to read 5 28 as follows: 5 29 427B.19B GUARANTEE OF STATE REPLACEMENT FUNDS. 5 30 For the fiscal years beginning July 1, 1996, and ending 5 31 June 30, 2006, if the industrial machinery, equipment and 5 32 computers property tax replacement fund is insufficient to pay 5 33 in full the total of the amounts certified to the director of 5 34 revenue and finance as a result of action by the general 5 35 assembly limiting the amount appropriated to the fund, the 6 1 director shall compute for each county the difference between 6 2 the total of all replacement claims for each taxing district 6 3 within the county and the amount paid to the county treasurer 6 4 for disbursement to each taxing district in the county. The 6 5 assessor, for the assessment year for which taxes are due and 6 6 payable in the fiscal year for which a sufficient 6 7 appropriation was not made as a result of action by the 6 8 general assembly limiting the amount appropriated to the fund, 6 9shallmay, upon recommendation by the conference board, 6 10 revalue all industrial machinery, equipment and computers 6 11 described in section 427B.17, subsections 2 and 3, in the 6 12 county at a percentage of net acquisition cost which will 6 13 yield from each taxing district its shortfall and the property 6 14 shall be assessed and taxed in such manner for taxes due and 6 15 payable in the following fiscal year in addition to being 6 16 assessed and taxed in the applicable manner under section 6 17 427B.17. When conducting the revaluation, the assessor shall 6 18 increase the percentage of net acquisition cost of such 6 19 property by the same percentage point. Property tax dollar 6 20 amounts certified pursuant to this section shall not be 6 21 considered property tax dollars certified for purposes of the 6 22 property tax limitation in chapter 444. 6 23 Sec. 18. Section 441.8, unnumbered paragraphs 6 and 7, 6 24 Code 2003, are amended to read as follows: 6 25 Upon receiving credit equal to one hundred fifty hours of 6 26 classroom instruction during the assessor's current term of 6 27 office of which at least ninety of the one hundred fifty hours 6 28 are from courses requiring an examination upon conclusion of 6 29 the course, the director of revenue and finance shall certify 6 30 to the assessor's conference board that the assessor is 6 31 eligible to be reappointed to the position. For persons 6 32 appointed to complete an unexpired term, the number of credits 6 33 required to be certified as eligible for reappointment shall 6 34 be prorated according to the amount of time remaining in the 6 35 present term of the assessor. The director of revenue and 7 1 finance may extend the period of time for an assessor to 7 2 obtain the required hours of credit if the committee finds 7 3 sufficient reason for granting an extension. If the person 7 4 was an assessor in another jurisdiction, the assessor may 7 5 carry forward any credit hours received in the previous 7 6 position in excess of the number that would be necessary to be 7 7 considered current in that position. 7 8 Within each six-year period following the appointment of a 7 9 deputy assessor, the deputy assessor shall comply with this 7 10 section except that upon the successful completion of ninety 7 11 hours of classroom instruction of which at least sixty of the 7 12 ninety hours are from courses requiring an examination upon 7 13 conclusion of the course, the deputy assessor shall be 7 14 certified by the director of revenue and finance as being 7 15 eligible to remain in the position. If a deputy assessor 7 16 fails to comply with this section, the deputy assessor shall 7 17 be removed from the position until successful completion of 7 18 the required hours of credit. The director of revenue and 7 19 finance may extend the period of time for a deputy assessor to 7 20 obtain the required hours of credit if the committee finds 7 21 sufficient reason for granting an extension. If a deputy is 7 22 appointed to the office of assessor, the hours of credit 7 23 obtained as deputy pursuant to this section shall be credited 7 24 to that individual as assessor and for the individual to be 7 25 reappointed at the expiration of the term as assessor, that 7 26 individual must obtain the credits which are necessary to 7 27 total the number of hours for reappointment. 7 28 Sec. 19. Section 450.37, subsection 2, paragraph a, Code 7 29 2003, is amended to read as follows: 7 30 a. If an agreement has not been reached on the fair market 7 31 value of real property in the ordinary course of trade, the 7 32 director of revenue and finance hasthirtyninety days after 7 33 the return is filed to request an appraisal under section 7 34 450.27. If an appraisal request is not made within the 7 35thirty-dayninety-day period, the value listed on the return 8 1 is the agreed value of the real property. 8 2 Sec. 20. Section 452A.2, Code 2003, is amended by adding 8 3 the following new subsection: 8 4 NEW SUBSECTION. 20A. "Nonterminal storage facility" means 8 5 a facility where motor fuel or special fuel is stored that is 8 6 not supplied by a pipeline or a marine vessel. "Nonterminal 8 7 storage facility" includes a facility that manufactures 8 8 products such as alcohol, biofuel, blend stocks, or additives 8 9 which may be used as motor fuel or special fuel for operating 8 10 motor vehicles or aircraft. 8 11 Sec. 21. Section 452A.2, subsection 24, Code 2003, is 8 12 amended to read as follows: 8 13 24. "Special fuel" means fuel oils and all combustible 8 14 gases and liquids suitable for the generation of power for 8 15 propulsion of motor vehicles or turbine-powered aircraft, and 8 16 includes any substance used for that purpose, except that it 8 17 does not include motor fuel. Kerosene shall not be considered 8 18 to be a special fuel, unless blended with other special fuels 8 19 for use in a motor vehicle with a diesel engine. Methanol 8 20 shall not be considered to be a special fuel, unless blended 8 21 with other special fuels for use in a motor vehicle with a 8 22 diesel engine, and shall not be considered a motor fuel, 8 23 unless blended with other motor fuels for use in an aircraft 8 24 or for propelling motor vehicles. 8 25 Sec. 22. Section 452A.10, unnumbered paragraphs 1, 2, and 8 26 4, Code 2003, are amended to read as follows: 8 27 A motor fuel or special fuel supplier, restrictive 8 28 supplier, importer, exporter, blender, dealer, user, common 8 29 carrier, contract carrier,orterminal or nonterminal storage 8 30 facility shall maintain, for a period of three years, records 8 31 of all transactions by which the supplier, restrictive 8 32 supplier, or importer withdraws from a terminal or nonterminal 8 33 storage facility within this state or imports into this state 8 34 motor fuel or undyed special fuel together with invoices, 8 35 bills of lading, and other pertinent records and papers as 9 1 required by the department. 9 2 If in the normal conduct of a supplier's, restrictive 9 3 supplier's, importer's, exporter's, blender's, dealer's, 9 4 user's, common carrier's, contract carrier's,orterminal's, 9 5 or nonterminal storage facility's business the records are 9 6 maintained and kept at an office outside this state, the 9 7 records shall be made available for audit and examination by 9 8 the department at the office outside this state, but the audit 9 9 and examination shall be without expense to this state. 9 10 The department, after an audit and examination of records 9 11 required to be maintained under this section, may authorize 9 12 their disposal upon the written request of the supplier, 9 13 restrictive supplier, importer, exporter, blender, dealer, 9 14 user, carrier, terminal, nonterminal storage facility, or 9 15 distributor. 9 16 Sec. 23. Section 452A.62, subsection 1, paragraph a, Code 9 17 2003, is amended to read as follows: 9 18 a. A distributor, supplier, restrictive supplier, 9 19 importer, exporter, blender, terminal operator, nonterminal 9 20 storage facility, common carrier, or contract carrier, 9 21 pertaining to motor fuel or undyed special fuel withdrawn from 9 22 a terminal or nonterminal storage facility or brought into 9 23 this state. 9 24 Sec. 24. Section 452A.62, subsection 2, Code 2003, is 9 25 amended to read as follows: 9 26 2. To examine the records, books, papers, receipts, and 9 27 invoices of any distributor, supplier, restrictive supplier, 9 28 importer, blender, exporter, terminal operator, nonterminal 9 29 storage facility, licensed compressed natural gas or liquefied 9 30 petroleum gas dealer or user, or any other person who 9 31 possesses fuel upon which the tax has not been paid to 9 32 determine financial responsibility for the payment of the 9 33 taxes imposed by this chapter. 9 34 Sec. 25. Section 452A.85, Code 2003, is amended by adding 9 35 the following new subsection: 10 1 NEW SUBSECTION. 4. This section does not apply to an 10 2 increase in the tax rate of a specified fuel, except for 10 3 compressed natural gas, unless the increase in the tax rate of 10 4 that fuel is in excess of one-half cent per gallon. 10 5 Sec. 26. Section 453A.11, Code 2003, is amended to read as 10 6 follows: 10 7 453A.11 CANCELLATION OF STAMPS. 10 8 Stamps affixed to a package of cigarettes shall not be 10 9 canceled by any letter, numeral, or other mark of 10 10 identification or otherwise mutilated in any manner that will 10 11 prevent or hinder the department in making an examination as 10 12 to the genuineness of the stamp. However, the director may 10 13 requiresuchcancellation of the tax stamps affixed to 10 14 packages of cigarettes which is necessary to carry out 10 15 properly the provisions of this division. A person in 10 16 violation of this section shall be considered in possession of 10 17 unstamped cigarettes and is subject to the penalty provided in 10 18 section 453A.31, subsection 1. 10 19 Sec. 27. Section 453A.15, Code 2003, is amended by adding 10 20 the following new subsection: 10 21 NEW SUBSECTION. 7. The director may require by rule that 10 22 reports required to be made under this division be filed by 10 23 electronic transmission. 10 24 Sec. 28. Section 453A.18, Code 2003, is amended to read as 10 25 follows: 10 26 453A.18 FORMS FOR RECORDS AND REPORTS. 10 27 The department shall furnish or make available in 10 28 electronic form, without charge, to holders of the various 10 29 permits, forms in sufficient quantities to enable permit 10 30 holders to make the reports required to be made under this 10 31 division. The permit holders shall furnish at their own 10 32 expense the books, records, and invoices, required to be used 10 33 and kept, but the books, records, and invoices shall be in 10 34 exact conformity to the forms prescribed for that purpose by 10 35 the director, and shall be kept and used in the manner 11 1 prescribed by the director. However, the director may, by 11 2 express order in certain cases, authorize permit holders to 11 3 keep their records in a manner and upon forms other than those 11 4 so prescribed. The authorization may be revoked at any time. 11 5 Sec. 29. Section 453A.32, subsections 1, 4, and 5, Code 11 6 2003, are amended to read as follows: 11 7 1. All cigarettes on which taxes are imposed or required 11 8 to be imposed by this division, which are found in the 11 9 possession or custody, or within the control of any person, 11 10 for the purpose of being sold, distributed, or removed by the 11 11 person in violation of this division, and all cigarettes which 11 12 are removedor are, stored, transported, deposited, or 11 13 concealed in any placewith intent to avoid payment of taxes11 14 without the proper taxes paid, and any automobile, truck, 11 15 boat, conveyance, or other vehicle whatsoever, used in the 11 16 removal, storage, deposit, concealment, or transportation of 11 17 cigarettes forsuchthe purpose of avoiding the payment of the 11 18 proper tax, and all equipment or other tangible personal 11 19 property incident to and used forsuchthe purpose of avoiding 11 20 the payment of the proper tax, found in the place, building, 11 21 or vehicle where cigarettes are found, and all counterfeit 11 22 cigarettes may be seized by the department, with or without 11 23 process and shall be from the time of the seizure forfeited to 11 24 the state of Iowa. A proceeding in the nature of a proceeding 11 25 in rem shall be filed in a court of competent jurisdiction in 11 26 the county of seizure to maintain the seizure and declare and 11 27 perfect the forfeiture. All cigarettes, counterfeit 11 28 cigarettes, vehicles, and property seized, remaining in the 11 29 possession or custody of the department, sheriff or other 11 30 officer for forfeiture or other disposition as provided by 11 31 law, are not subject to replevin. 11 32 4. In the event final judgment is rendered in the 11 33 forfeiture proceedings aforesaid, maintaining the seizure, and 11 34 declaring and perfecting the forfeiture of said seized 11 35 property, the court shall order and decree the salethereofof 12 1 the seized property, other than the counterfeit cigarettes, to 12 2 the highest bidder, by the sheriff at public auction in the 12 3 county of seizure after notice is given in the manner provided 12 4 in the case of the sale of personal property under execution, 12 5 and the proceeds of such sale, less expense of seizure and 12 6 court costs, shall be paid into the state treasury. 12 7 Counterfeit cigarettes shall be destroyed or disposed of in a 12 8 manner determined by the director. 12 9 5. In the event the cigarettes seizedhereunderand sought 12 10 to be sold upon forfeitureshall beare unstamped, the 12 11 cigarettes shall be sold by the director or the director's 12 12 designee to the highest bidder among thelicensedpermitted 12 13 distributors in this state after written notice has been 12 14 mailed to allsuchdistributors. If there is no bidder, or in 12 15 the opinion of the director the quantity of cigarettes to be 12 16 sold is insufficient or for any other reasonsuchdisposition 12 17 of the cigarettes is impractical, the cigarettes shall be 12 18 destroyed or disposed of in a manner as determined by the 12 19 director. The proceedsof suchfrom the sales shall be paid 12 20 into the state treasury. 12 21 Sec. 30. Section 453A.36, Code 2003, is amended by adding 12 22 the following new subsection: 12 23 NEW SUBSECTION. 9. a. It is unlawful for a person to 12 24 ship or import into this state or to offer for sale, sell, 12 25 distribute, transport, or possess counterfeit cigarettes, 12 26 knowing such cigarettes are counterfeit cigarettes or having 12 27 reasonable cause to believe that such cigarettes are 12 28 counterfeit cigarettes. 12 29 b. For purposes of this subsection and section 453A.32, 12 30 "counterfeit cigarettes" means cigarettes, packages of 12 31 cigarettes, cartons of cigarettes or other containers of 12 32 cigarettes with a label, trademark, service mark, trade name, 12 33 device, design, or word adopted or used by a cigarette 12 34 manufacturer to identify its product that is false or used 12 35 without authority of the cigarette manufacturer. 13 1 Sec. 31. Section 453A.38, Code 2003, is amended to read as 13 2 follows: 13 3 453A.38 COUNTERFEITING AND PREVIOUSLY USED STAMPS. 13 4 Any person who shall print, engrave, make, issue, sell, or 13 5 circulate, or shall possess or have in the person's possession 13 6 with intent to use, sell, circulate, or pass, any counterfeit 13 7 stamp or previously used stamp, or who shall use, or consent 13 8 to the use of, any counterfeit stamp or previously used stamp 13 9 in connection with the sale, or offering for sale, of any 13 10 cigarettes, or who shall place, or cause to be placed, on any 13 11 individual package of cigarettes, any counterfeit stamp or 13 12 previously used stamp, shall be guilty of an aggravated 13 13 misdemeanor if the violation consists of less than one 13 14 thousand stamps. If the violation consists of one thousand or 13 15 more stamps, the person shall be guilty of a class "D" felony. 13 16 A person in violation of this section shall also be subject to 13 17 the penalty provided in section 453A.31, subsection 1. 13 18 Sec. 32. Section 453A.45, subsection 5, unnumbered 13 19 paragraph 2, Code 2003, is amended to read as follows: 13 20 Such report shall be made on forms provided by the director 13 21 or the director may require by rule that the report be filed 13 22 by electronic transmission. 13 23 Sec. 33. Section 453A.46, Code 2003, is amended by adding 13 24 the following new subsection: 13 25 NEW SUBSECTION. 7. The director may require by rule that 13 26 reports be filed by electronic transmission. 13 27 Sec. 34. Section 453C.1, subsection 10, Code 2003, is 13 28 amended to read as follows: 13 29 10. "Units sold" means the number of individual cigarettes 13 30 sold in the state by the applicable tobacco product 13 31 manufacturer, whether directly or through a distributor, 13 32 retailer, or similar intermediary or intermediaries, during 13 33 the year in question, as measured by excise taxes collected by 13 34 the state on packs or roll-your-own tobacco containersbearing13 35the excise tax stamp of the state. The department of revenue 14 1 and finance shall adopt rules as are necessary to ascertain 14 2 the amount of state excise tax paid on the cigarettes of such 14 3 tobacco product manufacturer for each year. 14 4 Sec. 35. Section 453C.2, subsection 2, paragraph b, 14 5 subparagraph (2), Code 2003, is amended to read as follows: 14 6 (2) To the extent that a tobacco product manufacturer 14 7 establishes that the amount the manufacturer was required to 14 8 place into escrow on account of units sold in the state in a 14 9 particular year was greater thanthe state's allocable share14 10of the total payments that such manufacturer would have been14 11required to make in that year under the master settlement14 12agreementthe master settlement agreement payments, as 14 13 determined pursuant to section IX(i) of that agreement 14 14 including after final determination of all adjustments, that 14 15 such manufacturer would have been required to make on account 14 16 of such units sold had such manufacturer been a participating 14 17 manufacturer,as such payments are determined pursuant to14 18section IX(i)(2) of the master settlement agreement and before14 19any of the adjustments or offsets described in section14 20IX(i)(3) of that agreement other than the inflation14 21adjustment,the excess shall be released from escrow and 14 22 revert back to such tobacco product manufacturer. 14 23 Sec. 36. SEVERABILITY. 14 24 1. If any portion of section 453C.2, subsection 2, 14 25 paragraph "b", subparagraph (2), as amended in this Act, is 14 26 held by a court of competent jurisdiction to be 14 27 unconstitutional, section 453C.2, subsection 2, paragraph "b", 14 28 subparagraph (2), is repealed in its entirety. 14 29 2. If section 453C.2, subsection 2, paragraph "b", 14 30 subparagraph (2), is repealed pursuant to subsection 1 and a 14 31 court of competent jurisdiction subsequently finds that 14 32 section 453C.2, subsection 2, paragraph "b", is 14 33 unconstitutional due to such repeal, section 453C.2, 14 34 subsection 2, paragraph "b", subparagraph (2), Code 2003, 14 35 shall be restored. 15 1 3. Any holding of unconstitutionality or any repeal of 15 2 section 453C.2, subsection 2, paragraph "b", subparagraph (2), 15 3 as amended in this Act, or of section 453C.2, subsection 2, 15 4 paragraph "b", subparagraph (2), Code 2003, shall not affect, 15 5 impair, or invalidate any other portion of section 453C.2 or 15 6 the application of that section to any other person or 15 7 circumstance, and the remaining portions of section 453C.2, 15 8 shall continue in full force and effect. 15 9 Sec. 37. Section 518.18, unnumbered paragraph 2, Code 15 10 2003, is amended to read as follows: 15 11 1.TwoThe applicable percent of the gross amount of 15 12 premiums received during the preceding calendar year, after 15 13 deducting the amount returned upon the canceled policies, 15 14 certificates, and rejected applications; and after deducting 15 15 premiums paid for windstorm or hail reinsurance on properties 15 16 specifically reinsured; provided, however, that. However, the 15 17 reinsurer of such windstorm or hail risks shall paytwothe 15 18 applicable percent of the gross amount of reinsurance premiums 15 19 received upon such risks after deducting the amounts returned 15 20 upon canceled policies, certificates, and rejected 15 21 applications. For purposes of this section, "applicable 15 22 percent" means the same as specified in section 432.1, 15 23 subsection 4. 15 24 2. Except as provided in subsection 3, the premium tax 15 25 shall be paid on or before March 1 of the year following the 15 26 calendar year for which the tax is due. The commissioner of 15 27 insurance may suspend the certificate of authority of a county 15 28 mutual insurance association that fails to pay its premium tax 15 29 on or before the due date. 15 30 3. a. Each county mutual insurance association 15 31 transacting business in this state whose Iowa premium tax 15 32 liability for the preceding calendar year was one thousand 15 33 dollars or more shall remit on or before June 1, on a 15 34 prepayment basis, an amount equal to one-half of the premium 15 35 tax liability for the preceding calendar year. 16 1 b. In addition to the prepayment amount in paragraph "a", 16 2 each association shall remit on or before June 30, on a 16 3 prepayment basis, an additional amount equal to the following 16 4 percent of the premium tax liability for the preceding 16 5 calendar year as follows: 16 6 (1) For prepayment in the 2003 and 2004 calendar years, 16 7 eleven percent. 16 8 (2) For prepayment in the 2005 calendar year, twenty-six 16 9 percent. 16 10 (3) For prepayment in the 2006 and subsequent calendar 16 11 years, fifty percent. 16 12 c. The sums prepaid by a county mutual insurance 16 13 association under this subsection shall be allowed as credits 16 14 against its premium tax liability for the calendar year during 16 15 which the payments are made. If a prepayment made under this 16 16 subsection exceeds the annual premium tax liability, the 16 17 excess shall be allowed as a credit against subsequent 16 18 prepayment or tax liabilities. The commissioner of insurance 16 19 may suspend the certificate of authority of an association 16 20 that fails to make a prepayment on or before the due date. 16 21 Sec. 38. Section 518A.35, Code 2003, is amended to read as 16 22 follows: 16 23 518A.35 ANNUAL TAX. 16 24 1. A state mutual insurance association doing business 16 25 under this chapter shall on or before the first day of March, 16 26 each year, pay to the director of revenue and finance, or a 16 27 depository designated by the director, a sum equivalent totwo16 28 the applicable percent of the gross receipts from premiums and 16 29 fees for business done within the state, including all 16 30 insurance upon property situated in the state without 16 31 including or deducting any amounts received or paid for 16 32 reinsurance. However, a company reinsuring windstorm or hail 16 33 risks written by county mutual insurance associations is 16 34 required to paya twothe applicable percent tax on the gross 16 35 amount of reinsurance premiums received upon such risks, but 17 1 after deducting the amount returned upon canceled policies and 17 2 rejected applications covering property situated within the 17 3 state, and dividends returned to policyholders on property 17 4 situated within the state. For purposes of this section, 17 5 "applicable percent" means the same as specified in section 17 6 432.1, subsection 4. 17 7 2. Except as provided in subsection 3, the premium tax 17 8 shall be paid on or before March 1 of the year following the 17 9 calendar year for which the tax is due. The commissioner of 17 10 insurance may suspend the certificate of authority of a state 17 11 mutual insurance association that fails to pay its premium tax 17 12 on or before the due date. 17 13 3. a. Each state mutual insurance association transacting 17 14 business in this state whose Iowa premium tax liability for 17 15 the preceding calendar year was one thousand dollars or more 17 16 shall remit on or before June 1, on a prepayment basis, an 17 17 amount equal to one-half of the premium tax liability for the 17 18 preceding calendar year. 17 19 b. In addition to the prepayment amount in paragraph "a", 17 20 each association shall remit on or before June 30, on a 17 21 prepayment basis, an additional amount equal to the following 17 22 percent of the premium tax liability for the preceding 17 23 calendar year as follows: 17 24 (1) For prepayment in the 2003 and 2004 calendar years, 17 25 eleven percent. 17 26 (2) For prepayment in the 2005 calendar year, twenty-six 17 27 percent. 17 28 (3) For prepayment in the 2006 and subsequent calendar 17 29 years, fifty percent. 17 30 c. The sums prepaid by a state mutual insurance 17 31 association under this subsection shall be allowed as credits 17 32 against its premium tax liability for the calendar year during 17 33 which the payments are made. If a prepayment made under this 17 34 subsection exceeds the annual premium tax liability, the 17 35 excess shall be allowed as a credit against subsequent 18 1 prepayment or tax liabilities. The commissioner of insurance 18 2 may suspend the certificate of authority of an association 18 3 that fails to make a prepayment on or before the due date. 18 4 Sec. 39. EFFECTIVE AND RETROACTIVE APPLICABILITY 18 5 PROVISION. 18 6 1. Sections 1 through 5 of this Act, amending sections 18 7 15E.42, 15E.43, 15E.45, and 15E.51, apply retroactively to 18 8 January 1, 2002, for tax years beginning on or after that 18 9 date. 18 10 2. Sections 8 and 9 of this Act, amending section 422.9, 18 11 apply retroactively to January 1, 2003, for tax years 18 12 beginning on or after that date. 18 13 3. Section 17 of this Act, amending section 427B.19B, 18 14 applies retroactively to assessments made on or after January 18 15 1, 2001. 18 16 4. Sections 34, 35, and 36 of this Act, amending sections 18 17 453C.1 and 453C.2 and relating to severability, being deemed 18 18 of immediate importance, take effect upon enactment. 18 19 5. Sections 37 and 38 of this Act, amending sections 18 20 518.18 and 518A.35, being deemed of immediate importance, take 18 21 effect upon enactment. 18 22 EXPLANATION 18 23 Code sections 15E.42 and 15E.43(1), paragraph "a", are 18 24 amended to add individuals receiving income from a revocable 18 25 trust which invests in a qualified business to qualify for a 18 26 tax credit for an equity investment in a qualifying business. 18 27 Code section 15E.43(1) is amended by adding a new paragraph 18 28 that provides that an individual who dies before redeeming the 18 29 entire investment tax credit for an equity investment in a 18 30 qualifying business or community-based seed capital fund can 18 31 claim the remaining credit on the decedent's final income tax 18 32 return. 18 33 Code section 15E.45 is amended to provide that since 18 34 investors in a community-based seed capital fund are not 18 35 restricted to individual taxpayers, the reference to 19 1 individual investors should be stricken. 19 2 Code section 15E.51 is amended to provide that an investor 19 3 who makes separate investments into a community-based seed 19 4 capital fund and a venture capital fund should be entitled to 19 5 claim a tax credit for both investments. 19 6 The amendments to Code sections 15E.42, 15E.43, 15E.45, and 19 7 15E.51 are effective upon enactment and apply retroactively to 19 8 January 1, 2002. 19 9 Code sections 99E.10(1), 422.43(2), and 422.45 are amended 19 10 to exempt the sale of lottery tickets and shares from the 19 11 state sales and use taxes. 19 12 Code sections 422.9(1) and (2)(b) are amended to provide 19 13 that no adjustment for federal income tax is allowed for a tax 19 14 year in which an Iowa return was not required to be filed. 19 15 This change is applicable beginning with the 2003 tax year. 19 16 Code section 422.42(19) is amended to define "employer" in 19 17 this subsection for purposes of the state sales tax or 19 18 services as the person who actually pays the wages of an 19 19 employee. 19 20 Code section 422.45 is amended to add a new subsection 64 19 21 that exempts from the sales and use taxes the access or 19 22 service charges assessed by financial institutions on 19 23 noncustomer point of sale or noncustomer use of automated 19 24 teller machines. 19 25 Code section 422A.1 is amended to provide that local hotel 19 26 and motel tax shall be imposed on January 1 and July 1 only 19 27 and terminated on June 30 and December 31 only. 19 28 Code section 423.4 is amended to exempt from the use tax 19 29 the transfer of vehicles subject to registration from one 19 30 leasing corporation to another if both corporations are part 19 31 of a controlled group for federal income tax purposes. 19 32 Code section 425.1(4) is amended to rescind the requirement 19 33 that the department estimate the amount of homestead tax 19 34 credits payable to the counties each year. 19 35 Code section 427B.19B is amended to make it optional for 20 1 the assessor to revalue machinery and equipment if there is 20 2 insufficient funding by the state to reimburse local taxing 20 3 districts for lost taxes as a result of the reduced value for 20 4 machinery and equipment. This change applies retroactively to 20 5 assessments made on or after January 1, 2001. 20 6 Code section 441.8 is amended to permit the director of 20 7 revenue and finance to extend for sufficient reason the period 20 8 of time for an assessor or deputy assessor to meet continuing 20 9 education requirements. 20 10 Code section 450.37(2)(a) is amended to extend from 30 to 20 11 90 days the period of time the director has to request an 20 12 appraisal after an inheritance tax return is filed. 20 13 Code section 452A.2 is amended to add a definition for 20 14 "nonterminal storage facility" in the motor fuel tax statute. 20 15 Code section 452A.2(24) is amended to state that for fuel tax 20 16 purposes, methanol is not a special fuel or motor fuel unless 20 17 blended for use in diesel engines or for use in aircraft or a 20 18 motor vehicle. 20 19 Code sections 452A.10 and 452A.62 are amended to require 20 20 nonterminal storage facilities to maintain the same records as 20 21 terminals. 20 22 Code section 452A.85 is amended to provide that the 20 23 inventory tax does not apply unless the increase in the fuel 20 24 tax rate is more than one-half cent per gallon. 20 25 Code section 453A.11 is amended to impose a penalty against 20 26 any person found to have altered a cigarette tax stamp. 20 27 Code section 453A.15 is amended to give the director the 20 28 authority to require that cigarette reports be filed by 20 29 electronic transmission. 20 30 Code section 453A.18 authorizes the department to furnish 20 31 permit holders with electronic forms in lieu of paper forms. 20 32 Code sections 453A.32(1) and (5) are amended to strengthen 20 33 the language relating to the seizure and forfeiture of 20 34 unstamped cigarettes and to reflect that cigarette 20 35 distributors receive a permit, not a license, to do business. 21 1 Code sections 453A.32 and 453A.36 are amended to make it 21 2 unlawful to ship or import into Iowa or sell, distribute, or 21 3 possess counterfeit cigarettes and allow for the confiscation 21 4 and destruction of those cigarettes. "Counterfeit cigarettes" 21 5 are cigarettes that are marked in such a manner that would 21 6 lead someone to believe the cigarettes were of a specific 21 7 known brand or manufacturer. 21 8 Code section 453A.38 is amended to make the penalty for 21 9 counterfeiting 1,000 or more cigarette tax stamps a class "D" 21 10 felony and to subject such violation to a civil penalty. 21 11 Code section 453A.45(5) is amended to give the director the 21 12 authority to require by rule that tobacco transportation 21 13 reports be filed electronically. 21 14 Code section 453A.46 is amended to give the director the 21 15 authority to require by rule that distributors file tobacco 21 16 reports electronically. 21 17 Code sections 453C.1 and 453C.2 are amended to allow 21 18 cigarette manufacturers that are not members of the master 21 19 settlement agreement and that are required to place moneys 21 20 into escrow on account of cigarettes to be sold in the state 21 21 to receive a refund of any excess escrow amounts remitting 21 22 because of fewer cigarettes sold than anticipated. The 21 23 amendments take effect upon enactment. 21 24 Code sections 518.18 and 518A.35 are amended to reduce the 21 25 premiums tax from 2 percent to 1 percent over four years and 21 26 increase the prepayment of such tax for county and state 21 27 mutual insurance associations. These amendments are effective 21 28 upon enactment. 21 29 LSB 2570HC 80 21 30 mg/pj/5.2
Text: HSB00316 Text: HSB00318 Text: HSB00300 - HSB00399 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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