Text: HSB00723 Text: HSB00725 Text: HSB00700 - HSB00799 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 DIVISION I 1 2 RESERVE FUNDS – USE OF REVERSIONS 1 3 Section 1. Section 8.55, subsection 4, Code Supplement 1 4 2003, is amended by striking the subsection. 1 5 Sec. 2. Section 8.56, subsection 1, Code Supplement 2003, 1 6 is amended to read as follows: 1 7 1. A cash reserve fund is created in the state treasury. 1 8 The cash reserve fund shall be separate from the general fund 1 9 of the state and shall not be considered part of the general 1 10 fund of the state except in determining the cash position of 1 11 the state as provided in subsection 3. The moneys in the cash 1 12 reserve fund are not subject to section 8.33 and shall not be 1 13 transferred, used, obligated, appropriated, or otherwise 1 14 encumbered except as provided in this section. 1 15Notwithstanding section 12C.7, subsection 2, interest or1 16earnings on moneys deposited in the cash reserve fund shall be1 17credited to the rebuild Iowa infrastructure fund created in1 18section 8.57.Moneys in the cash reserve fund may be used for 1 19 cash flow purposes during a fiscal year provided that any 1 20 moneys so allocated are returned to the cash reserve fund by 1 21 the end of that fiscal year. 1 22 Sec. 3. Section 8.57, subsection 1, paragraph a, 1 23 unnumbered paragraph 1, Code Supplement 2001, as amended by 1 24 2002 Iowa Acts, Second Extraordinary Session, chapter 1001, 1 25 section 28, and by 2003 Iowa Acts, chapter 179, section 31, is 1 26 amended to read as follows: 1 27 The "cash reserve goal percentage" for fiscal years 1 28 beginning on or after July 1,20042005, is seven and one-half 1 29 percent of the adjusted revenue estimate. For each fiscal 1 30 year in which the appropriation of the surplus existing in the 1 31 general fund of the state at the conclusion of the prior 1 32 fiscal year pursuant to paragraph "b" was not sufficient for 1 33 the cash reserve fund to reach the cash reserve goal 1 34 percentage for the current fiscal year, there is appropriated 1 35 from the general fund of the state an amount to be determined 2 1 as follows: 2 2 Sec. 4. 2002 Iowa Acts, Second Extraordinary Session, 2 3 chapter 1001, section 33, as amended by 2003 Iowa Acts, 2 4 chapter 179, section 40, is amended to read as follows: 2 5 SEC. 33. EFFECTIVE DATE – APPLICABILITY. The amendments 2 6 to the following designated Code provisions in this division 2 7 of this Act take effect July 1,20042005: 2 8 1. Section 8.55, subsection 2, paragraph "a". 2 9 2. Section 8.56, subsection 4, paragraph "b". 2 10 3. Section 8.57, subsection 1, paragraph "a". 2 11 Sec. 5. USE OF REVERSIONS. Notwithstanding section 8.62, 2 12 if on June 30, 2005, a balance of an operational 2 13 appropriation, as defined in section 8.62, except for the 2 14 balances of charter agencies, as defined in section 7J.1, 2 15 remains unexpended or unencumbered, the balance shall revert 2 16 to the general fund of the state as provided in section 8.33. 2 17 DIVISION II 2 18 TAX ON RESIDENTIAL UTILITIES – PHASEOUT 2 19 Sec. 6. Section 423.3, as enacted by 2003 Iowa Acts, First 2 20 Extraordinary Session, chapter 2, section 96, is amended by 2 21 adding the following new subsection: 2 22 NEW SUBSECTION. 84. a. Subject to paragraph "b", the 2 23 sales price from the sale or furnishing of metered gas, 2 24 electricity, and fuel, including propane and heating oil, to 2 25 residential customers which is used to provide energy for 2 26 residential dwellings and units of apartment and condominium 2 27 complexes used for human occupancy. 2 28 b. The exemption in this subsection shall be phased in by 2 29 means of a reduction in the tax rate as follows: 2 30 (1) If the date of the utility billing or meter reading 2 31 cycle of the residential customer for the sale or furnishing 2 32 of metered gas and electricity is on or after January 1, 2004, 2 33 through December 31, 2004, or if the sale or furnishing of 2 34 fuel for purposes of residential energy and the delivery of 2 35 the fuel occurs on or after January 1, 2004, through December 3 1 31, 2004, the rate of tax is two percent of the sales price. 3 2 (2) If the date of the utility billing or meter reading 3 3 cycle of the residential customer for the sale or furnishing 3 4 of metered gas and electricity is on or after January 1, 2005, 3 5 through December 31, 2005, or if the sale or furnishing of 3 6 fuel for purposes of residential energy and the delivery of 3 7 the fuel occurs on or after January 1, 2005, through December 3 8 31, 2005, the rate of tax is one percent of the sales price. 3 9 (3) If the date of the utility billing or meter reading 3 10 cycle of the residential customer for the sale or furnishing 3 11 of metered gas and electricity is on or after January 1, 2006, 3 12 or if the sale, furnishing, or service of fuel for purposes of 3 13 residential energy and the delivery of the fuel occurs on or 3 14 after January 1, 2006, the rate of tax is zero percent of the 3 15 sales price. 3 16 c. The exemption in this subsection does not apply to 3 17 local option sales and services tax imposed pursuant to 3 18 chapters 423B and 423E. 3 19 DIVISION III 3 20 COMBINED CORPORATE RETURNS 3 21 Sec. 7. Section 422.37, Code 2003, is amended by striking 3 22 the section and inserting in lieu thereof the following: 3 23 422.37 COMBINED RETURNS. 3 24 An affiliated group of corporations shall, under rules 3 25 prescribed by the director, file a combined return showing the 3 26 net income of all corporations engaged in a unitary business, 3 27 subject to the following: 3 28 1. The affiliated group filing under this section shall 3 29 meet the requirements to file a consolidated return for 3 30 federal income tax purposes under the Internal Revenue Code 3 31 for the same taxable year. 3 32 2. All members of the affiliated group shall join in the 3 33 filing of an Iowa combined return to the extent they are 3 34 engaged in a unitary business. 3 35 3. Members of the affiliated group exempt from taxation by 4 1 section 422.34 shall not be included in a combined return. 4 2 4. All members of the affiliated group shall use the 4 3 statutory method of allocation and apportionment unless the 4 4 director has granted permission to all members to use an 4 5 alternative method of allocation and apportionment. 4 6 5. The computation of federal taxable income before the 4 7 net operating loss deduction on a combined return for members 4 8 of an affiliated group shall be made in the same manner and 4 9 under the same procedures, including all intercompany 4 10 adjustments and eliminations, as are required for 4 11 consolidating the incomes of affiliated corporations for the 4 12 taxable year for federal income tax purposes in accordance 4 13 with the Internal Revenue Code. 4 14 6. The combined income approach reflects the federal 4 15 taxable income of the unitary members of the Iowa affiliated 4 16 group as a single economic unit, with the application of the 4 17 adjustments in section 422.35, and the affiliated group shall 4 18 only file one income tax return. Any nonunitary members of 4 19 the federal affiliated group subject to tax imposed by section 4 20 422.33 must each file its own separate corporate income tax 4 21 return. The net income of an affiliated group is determined 4 22 by applying the apportionment formula against the combined 4 23 income of the affiliated group. 4 24 7. Only the sales of those corporations in the affiliated 4 25 group subject to the tax imposed by section 422.33 are 4 26 included in the numerator of the apportionment formula. 4 27 8. Only those corporations in the affiliated group subject 4 28 to the tax imposed by section 422.33 are jointly and severally 4 29 liable for the Iowa tax of the combined group. 4 30 Sec. 8. INCREASED REVENUES APPROPRIATED. There is 4 31 appropriated from the general fund of the state from the 4 32 additional revenues generated by the amendment to section 4 33 422.37 in this division of this Act to the department of 4 34 revenue for the fiscal year beginning July 1, 2004, and ending 4 35 June 30, 2005, the following amounts, or so much thereof as is 5 1 necessary, to be used for the purposes designated: 5 2 a. For the additional funding necessary to fully fund the 5 3 homestead property tax credit pursuant to section 425.1 over 5 4 the amount appropriated for the fiscal year beginning July 1, 5 5 2003: 5 6 .................................................. $ 17,454,621 5 7 b. For the additional funding necessary to fully fund the 5 8 elderly and disabled property tax credit pursuant to section 5 9 425.39 over the amount appropriated for the fiscal year 5 10 beginning July 1, 2003: 5 11 .................................................. $ 3,304,495 5 12 Sec. 9. RETROACTIVE APPLICABILITY PROVISION. Except for 5 13 the appropriations made to the department of revenue in this 5 14 division, this division of this Act is retroactively 5 15 applicable to January 1, 2004, for tax years beginning on or 5 16 after that date. 5 17 DIVISION IV 5 18 CIGARETTE AND TOBACCO TAX RATES 5 19 Sec. 10. Section 453A.6, subsection 1, Code 2003, is 5 20 amended to read as follows: 5 21 1. There is imposed, and shall be collected and paid to 5 22 the department,the following taxesa tax on all cigarettes 5 23 used or otherwise disposed of in this state for any purpose 5 24 whatsoever:5 25CLASS A. On cigarettes weighing not more than three pounds5 26per thousand, eighteen mills on each such cigarette.5 27CLASS B. On cigarettes weighing more than three pounds per5 28thousand, eighteen mills on each suchequal to four and eight- 5 29 tenths cents on each cigarette. 5 30 Sec. 11. Section 453A.6, Code 2003, is amended by adding 5 31 the following new subsection: 5 32 NEW SUBSECTION. 6. Cigarettes shall be sold in packages 5 33 of twenty or more. 5 34 Sec. 12. Section 453A.8, subsection 1, Code 2003, is 5 35 amended to read as follows: 6 1 1. Stamps shall be sold by and purchased from the 6 2 department. The department shall sell stamps to the holder of 6 3 a state distributor's or manufacturer's permit which has not 6 4 been revoked and to no other person. Stamps shall be sold to 6 5 the permit holders at a discount oftwoone percent of the 6 6 face value. Stamps shall be sold in unbroken rolls of thirty 6 7 thousand stamps or unbroken lots of any other form authorized 6 8 by the director. 6 9 Sec. 13. Section 453A.40, subsection 1, Code Supplement 6 10 2003, is amended to read as follows: 6 11 1. All persons required to obtain a permit or to be 6 12 licensed under section 453A.13as distributorsor 453A.44 6 13 having in their possession and held for resale on the 6 14 effective date of an increase in the tax rate cigarettes,or6 15 little cigars, or tobacco products upon which the tax under 6 16 section 453A.6 or 453A.43 has been paid, unused cigarette tax 6 17 stamps which have been paid for under section 453A.8,or6 18 unused metered imprints which have been paid for under section 6 19 453A.12, or tobacco products under section 453A.46 shall be 6 20 subject to an inventory tax on the items as provided in this 6 21 section. 6 22 Sec. 14. Section 453A.43, subsections 1, 2, and 3, Code 6 23 2003, are amended to read as follows: 6 24 1. A tax is imposed upon all tobacco products in this 6 25 state and upon any person engaged in business as a distributor 6 26 of tobacco products, at the rate oftwenty-twothirty percent 6 27 of the wholesale sales price of the tobacco products, except 6 28 little cigars as defined in section 453A.42. Little cigars 6 29 shall be subject to the same rate of tax imposed upon 6 30 cigarettes in section 453A.6, payable at the time and in the 6 31 manner provided in section 453A.6; and stamps shall be affixed 6 32 as provided in division I of this chapter. The tax on tobacco 6 33 products, excluding little cigars, shall be imposed at the 6 34 time the distributor does any of the following: 6 35 a. Brings, or causes to be brought, into this state from 7 1 without the state tobacco products for sale. 7 2 b. Makes, manufactures, or fabricates tobacco products in 7 3 this state for sale in this state. 7 4 c. Ships or transports tobacco products to retailers in 7 5 this state, to be sold by those retailers. 7 6 2. A tax is imposed upon the use or storage by consumers 7 7 of tobacco products in this state, and upon the consumers, at 7 8 the rate oftwenty-twothirty percent of the cost of the 7 9 tobacco products. 7 10 The tax imposed by this subsection shall not apply if the 7 11 tax imposed by subsection 1 on the tobacco products has been 7 12 paid. 7 13 This tax shall not apply to the use or storage of tobacco 7 14 products in quantities of: 7 15 a. Less than 25 cigars. 7 16 b. Less than 10 oz. snuff or snuff powder. 7 17 c. Less than 1 lb. smoking or chewing tobacco or other 7 18 tobacco products not specifically mentioned herein, in the 7 19 possession of any one consumer. 7 20 3. Any tobacco product with respect to which a tax has 7 21 once been imposed under this division shall not again be 7 22 subject to tax undersaidthis division, except as provided in 7 23 section 453A.40. 7 24 Sec. 15. INCREASED REVENUES APPROPRIATED. There is 7 25 appropriated from the general fund of the state from the 7 26 additional revenues generated by the increase in the cigarette 7 27 and tobacco products tax rates in this division of this Act to 7 28 the designated departments and agencies for the fiscal year 7 29 beginning July 1, 2004, and ending June 30, 2005, the 7 30 following amounts, or so much thereof as is necessary, for the 7 31 purposes designated: 7 32 1. DEPARTMENT OF PUBLIC HEALTH 7 33 a. Addictive disorders 7 34 For reducing the prevalence of use of tobacco, alcohol, and 7 35 other drugs, and treating individuals affected by addictive 8 1 behaviors, including gambling: 8 2 .................................................. $ 1,000,000 8 3 b. Child and adolescent wellness 8 4 For promoting an optimum health status for children and 8 5 adolescents from birth through 21 years of age: 8 6 .................................................. $ 1,000,000 8 7 2. DEPARTMENT OF HUMAN SERVICES 8 8 a. To be credited to the family investment program account 8 9 and used for family investment program assistance under 8 10 chapter 239B: 8 11 .................................................. $ 2,521,320 8 12 b. Medical assistance 8 13 For medical assistance reimbursement and associated costs 8 14 as specifically provided in the reimbursement methodologies in 8 15 effect on June 30, 2004, except as otherwise expressly 8 16 authorized by law, including reimbursement for abortion 8 17 services, which shall be available under the medical 8 18 assistance program only for those abortions which are 8 19 medically necessary: 8 20 .................................................. $ 57,613,927 8 21 c. For medical contracts: 8 22 .................................................. $ 1,800,000 8 23 d. Children's health insurance program 8 24 For maintenance of the healthy and well kids in Iowa 8 25 program pursuant to chapter 514I for receipt of federal 8 26 financial participation under Title XXI of the federal Social 8 27 Security Act, which creates the state children's health 8 28 insurance program: 8 29 .................................................. $ 1,500,000 8 30 e. For child and family services: 8 31 .................................................. $ 10,000,000 8 32 f. For the state resource center at Glenwood for salaries, 8 33 support, maintenance, and miscellaneous purposes: 8 34 .................................................. $ 3,157,994 8 35 g. For implementation of mental health, developmental 9 1 disabilities, and brain injury service system redesign 9 2 efforts: 9 3 .................................................. $ 5,000,000 9 4 h. For costs associated with the commitment and treatment 9 5 of sexually violent predators in the unit located at the state 9 6 mental health institute at Cherokee, including costs of legal 9 7 services and other associated costs, including salaries, 9 8 support, maintenance, and miscellaneous purposes: 9 9 .................................................. $ 729,533 9 10 i. For distribution to counties of the county mental 9 11 health, mental retardation, and developmental disabilities 9 12 allowed growth factor adjustment, as provided in 2003 Iowa 9 13 Acts, chapter 179, section 2, subsection 1, unnumbered 9 14 paragraph 2: 9 15 .................................................. $ 4,665,111 9 16 3. COMMISSION OF VETERANS AFFAIRS 9 17 Iowa veterans home 9 18 For salaries, support, maintenance, and miscellaneous 9 19 purposes: 9 20 .................................................. $ 1,000,000 9 21 Sec. 16. EFFECTIVE DATE. Except for the appropriations 9 22 made to the department of public health, department of human 9 23 services, and commission of veterans affairs in this division, 9 24 this division of this Act takes effect March 1, 2004. 9 25 DIVISION V 9 26 SERVICES SUBJECT TO TAX 9 27 Sec. 17. Section 423.2, subsection 6, as enacted by 2003 9 28 Iowa Acts, First Extraordinary Session, chapter 2, section 95, 9 29 is amended to read as follows: 9 30 6. The sales price of any of the following enumerated 9 31 services is subject to the tax imposed by subsection 5: 9 32 alteration and garment repair; armored car; vehicle repair; 9 33 battery, tire, and allied; investment counseling; service 9 34 charges of all financial institutions; barber and beauty; boat 9 35 repair; vehicle wash and wax; campgrounds; carpentry; roof, 10 1 shingle, and glass repair; dance schools and dance studios; 10 2 dating services; dry cleaning, pressing, dyeing, and 10 3 laundering; electrical and electronic repair and installation; 10 4 excavating and grading; farm implement repair of all kinds; 10 5 flying service; furniture, rug, carpet, and upholstery repair 10 6 and cleaning; fur storage and repair; golf and country clubs 10 7 and all commercial recreation; gun and camera repair; house 10 8 and building moving; household appliance, television, and 10 9 radio repair; janitorial and building maintenance or cleaning; 10 10 jewelry and watch repair; lawn care, landscaping, and tree 10 11 trimming and removal; limousine service, including driver; 10 12 machine operator; machine repair of all kinds; motor repair; 10 13 motorcycle, scooter, and bicycle repair; oilers and 10 14 lubricators; office and business machine repair; painting, 10 15 papering, and interior decorating; parking facilities; pay 10 16 television; pet grooming; pipe fitting and plumbing; wood 10 17 preparation; executive search agencies; private employment 10 18 agencies, excluding services for placing a person in 10 19 employment where the principal place of employment of that 10 20 person is to be located outside of the state; reflexology; 10 21 security and detective services; sewage services for 10 22 nonresidential commercial operations; sewing and stitching; 10 23 shoe repair and shoeshine; sign construction and installation; 10 24 storage of household goods, mini-storage, and warehousing of 10 25 raw agricultural products; swimming pool cleaning and 10 26 maintenance; tanning beds or salons; taxidermy services; 10 27 telephone answering service; test laboratories, including 10 28 mobile testing laboratories and field testing by testing 10 29 laboratories, and excluding tests on humans or animals; 10 30 termite, bug, roach, and pest eradicators; tin and sheet metal 10 31 repair; Turkish baths, massage, and reducing salons, excluding 10 32 services provided by massage therapists licensed under chapter 10 33 152C; water conditioning and softening; weighing; welding; 10 34 well drilling; wrapping, packing, and packaging of merchandise 10 35 other than processed meat, fish, fowl, and vegetables; 11 1 wrecking service; wrecker and towing; engineering; accounting, 11 2 auditing, billing, bookkeeping, payroll, and tax return 11 3 preparation; public relations services except the service of 11 4 lobbying; computer services; consulting; management services; 11 5 architectural; services allied to motion picture; information 11 6 retrieval; adjustments, collections, and credit reporting; and 11 7 surveying. 11 8 For the purposes of this subsection, the sales price of a 11 9 lease or rental includes rents, royalties, and copyright and 11 10 license fees. For the purposes of this subsection, "financial 11 11 institutions" means all national banks, federally chartered 11 12 savings and loan associations, federally chartered savings 11 13 banks, federally chartered credit unions, banks organized 11 14 under chapter 524, savings and loan associations and savings 11 15 banks organized under chapter 534, and credit unions organized 11 16 under chapter 533. 11 17 Sec. 18. Section 423.2, as enacted by 2003 Iowa Acts, 11 18 First Extraordinary Session, chapter 2, section 95, is amended 11 19 by adding the following new subsections: 11 20 NEW SUBSECTION. 9A. Notwithstanding the five percent tax 11 21 rate imposed in this section, for the period beginning January 11 22 1, 2006, and ending December 31, 2007, the tax rate imposed 11 23 under this section is four and three-fourths percent. 11 24 NEW SUBSECTION. 9B. Notwithstanding the five percent tax 11 25 rate imposed in this section, beginning January 1, 2008, the 11 26 tax rate imposed under this section is four and one-fourth 11 27 percent. 11 28 Sec. 19. Section 423.5, as enacted by 2003 Iowa Acts, 11 29 First Extraordinary Session, chapter 2, section 98, is amended 11 30 by adding the following new subsections: 11 31 NEW SUBSECTION. 8. Notwithstanding the five percent tax 11 32 rate imposed in this section, for the period beginning January 11 33 1, 2006, and ending December 31, 2007, the tax rate imposed 11 34 under this section is four and three-fourths percent. 11 35 NEW SUBSECTION. 9. Notwithstanding the five percent tax 12 1 rate imposed in this section, beginning January 1, 2008, the 12 2 tax rate imposed under this section is four and one-fourth 12 3 percent. 12 4 Sec. 20. INCREASED REVENUE APPROPRIATIONS. There is 12 5 appropriated from the general fund of the state from the 12 6 additional revenues generated by the addition of services 12 7 taxable under the sales and use taxes in this division of this 12 8 Act to the designated departments and agencies for the fiscal 12 9 year beginning July 1, 2004, and ending June 30, 2005, the 12 10 following amounts, or so much thereof as is necessary, for the 12 11 purposes designated: 12 12 1. COLLEGE STUDENT AID COMMISSION: 12 13 a. National guard educational assistance program 12 14 For purposes of providing national guard educational 12 15 assistance under the program established in section 261.86: 12 16 .................................................. $ 1,756,401 12 17 b. In addition to the funds appropriated in section 12 18 261.25, subsection 1, for tuition grants: 12 19 .................................................. $ 1,900,000 12 20 c. In addition to the funds appropriated in section 12 21 261.25, subsection 3, for vocational-technical grants: 12 22 .................................................. $ 216,849 12 23 2. DEPARTMENT OF EDUCATION 12 24 a. Public broadcasting division 12 25 For salaries, support, maintenance, capital expenditures, 12 26 and miscellaneous purposes: 12 27 .................................................. $ 300,000 12 28 b. Student achievement and teacher quality program 12 29 For purposes, as provided in law, of the student 12 30 achievement and teacher quality program establishment pursuant 12 31 to chapter 284: 12 32 .................................................. $ 4,250,000 12 33 c. Jobs for America's graduates 12 34 For school districts to provide direct services to the most 12 35 at-risk senior high school students enrolled in school 13 1 districts through direct intervention by a jobs for America's 13 2 graduates specialist: 13 3 .................................................. $ 400,000 13 4 d. Early childhood programs 13 5 For purposes of early childhood programs, including, but 13 6 not limited to, the early childhood programs grants and the 13 7 school ready children grant program established pursuant to 13 8 chapter 28, and the shared vision program administered by the 13 9 child development coordinating council in accordance with 13 10 chapter 256A: 13 11 .................................................. $ 1,500,000 13 12 e. Professional development 13 13 For professional development of teachers and improvement of 13 14 student achievement: 13 15 .................................................. $ 10,000,000 13 16 f. Community colleges 13 17 For general state financial aid to merged areas as defined 13 18 in section 260C.2, for vocational education programs in 13 19 accordance with chapters 258 and 260C: 13 20 .................................................. $ 3,100,000 13 21 g. For the amount necessary to fund the increase in state 13 22 foundation aid in section 257.16 for the fiscal year beginning 13 23 July 1, 2004, and ending June 30, 2005: 13 24 .................................................. $116,398,176 13 25 3. STATE BOARD OF REGENTS 13 26 a. State university of Iowa 13 27 For salaries, support, maintenance, equipment, and 13 28 miscellaneous purposes: 13 29 .................................................. $ 13,647,725 13 30 b. Iowa state university of science and technology 13 31 For salaries, support, maintenance, equipment, and 13 32 miscellaneous purposes: 13 33 .................................................. $ 10,746,906 13 34 c. University of northern Iowa 13 35 For salaries, support, maintenance, equipment, and 14 1 miscellaneous purposes: 14 2 .................................................. $ 4,827,986 14 3 d. State school for the deaf 14 4 For salaries, support, maintenance, equipment, and 14 5 miscellaneous purposes: 14 6 .................................................. $ 498,475 14 7 e. Iowa braille and sight saving school 14 8 For salaries, support, maintenance, equipment, and 14 9 miscellaneous purposes: 14 10 .................................................. $ 278,908 14 11 DIVISION VI 14 12 FAMILY FARM AND AGRICULTURAL TAX CREDITS 14 13 Sec. 21. Section 331.401, subsection 1, paragraph g, Code 14 14 2003, is amended by striking the paragraph. 14 15 Sec. 22. Section 331.512, subsection 3, Code 2003, is 14 16 amended to read as follows: 14 17 3. Carry out duties relating to the homestead tax credit 14 18and agricultural land tax creditas provided inchapters14 19 chapter 425and 426. 14 20 Sec. 23. Section 331.559, subsection 13, Code Supplement 14 21 2003, is amended by striking the subsection. 14 22 Sec. 24. Section 425A.1, Code 2003, is amended to read as 14 23 follows: 14 24 425A.1 FAMILY FARM TAX CREDIT FUND. 14 25 The family farm tax credit fund is created in the office of 14 26 the treasurer of state.There shall be transferred annually14 27to the fund the first ten million dollars of the amount14 28annually appropriated to the agricultural land credit fund,14 29provided in section 426.1.There is appropriated annually to 14 30 the family farm tax credit fund from the general fund of the 14 31 state the sum of twenty million dollars. Any balance in the 14 32 fund on June 30 shall revert to the general fund. 14 33 Sec. 25. Section 441.73, subsection 4, Code Supplement 14 34 2003, is amended to read as follows: 14 35 4. The executive council shall transfer for the fiscal 15 1 year beginning July 1,19922004, and each fiscal year 15 2 thereafter, from funds established in sections 425.1 and426.115 3 425A.1, an amount necessary to pay litigation expenses. The 15 4 amount of the fund for each fiscal year shall not exceed seven 15 5 hundred thousand dollars. The executive council shall 15 6 determine annually the proportionate amounts to be transferred 15 7 from the two separate funds. At any time when no litigation 15 8 is pending or in progress the balance in the litigation 15 9 expense fund shall not exceed one hundred thousand dollars. 15 10 Any excess moneys shall be transferred in a proportionate 15 11 amount back to the funds from which they were originally 15 12 transferred. 15 13 Sec. 26. Sections 426.1 through 426.3, Code 2003, are 15 14 repealed. 15 15 Sec. 27. Sections 426.6 through 426.10, Code Supplement 15 16 2003, are repealed. 15 17 DIVISION VII 15 18 GAMBLING GAMES TAXATION 15 19 Sec. 28. Section 99F.11, Code Supplement 2003, is amended 15 20 to read as follows: 15 21 99F.11 WAGERING TAX – RATE – ALLOCATIONS. 15 22 1. A tax is imposed on the adjusted gross receipts 15 23 received annually from gambling games authorized under this 15 24 chapterat the rate of five percent on the first one million15 25dollars of adjusted gross receipts, at the rate of ten percent15 26on the next two million dollars of adjusted gross receipts,15 27and at the rate of twenty percent on any amount of adjusted15 28gross receipts over three million dollars. However, beginning15 29January 1, 1997, the rate on any amount of adjusted gross15 30receipts over three million dollars from gambling games at15 31racetrack enclosures is twenty-two percent and shall increase15 32by two percent each succeeding calendar year until the rate is15 33thirty-six percent.at the following rates: 15 34 a. Fifteen percent of the first ten million of adjusted 15 35 gross receipts. 16 1 b. Twenty-five percent of the next sixty-five million of 16 2 adjusted gross receipts. 16 3 c. Twenty-three percent of the remaining adjusted gross 16 4 receipts. 16 5 2. The taxes imposed by this section shall be paid by the 16 6 licensee to the treasurer of state within ten days after the 16 7 close of the day when the wagers were made and shall be 16 8 distributed as follows: 16 91.a. If the gambling excursion originated at a dock 16 10 located in a city, one-half of one percent of the adjusted 16 11 gross receipts shall be remitted to the treasurer of the city 16 12 in which the dock is located and shall be deposited in the 16 13 general fund of the city. Another one-half of one percent of 16 14 the adjusted gross receipts shall be remitted to the treasurer 16 15 of the county in which the dock is located and shall be 16 16 deposited in the general fund of the county. 16 172.b. If the gambling excursion originated at a dock 16 18 located in a part of the county outside a city, one-half of 16 19 one percent of the adjusted gross receipts shall be remitted 16 20 to the treasurer of the county in which the dock is located 16 21 and shall be deposited in the general fund of the county. 16 22 Another one-half of one percent of the adjusted gross receipts 16 23 shall be remitted to the treasurer of the Iowa city nearest to 16 24 where the dock is located and shall be deposited in the 16 25 general fund of the city. 16 263.c. Three-tenths of one percent of the adjusted gross 16 27 receipts shall be deposited in the gambling treatment fund 16 28 specified in section 99G.39, subsection 1, paragraph "a". 16 294.d. The remaining amount of the adjusted gross receipts 16 30 tax shall be credited to the general fund of the state. 16 31 Sec. 29. RETROACTIVE APPLICABILITY. The provisions of 16 32 this division of this Act amending section 99F.11, being 16 33 deemed of immediate importance, take effect upon enactment and 16 34 are retroactively applicable to July 1, 2003, and are 16 35 applicable on and after that date. 17 1 DIVISION VIII 17 2 GROW IOWA VALUES FUND 17 3 Sec. 30. 2003 Iowa Acts, First Extraordinary Session, 17 4 chapter 2, section 75, is amended to read as follows: 17 5 SEC. 75.STREAMLINED SALES AND USE TAX REVENUEGROW IOWA 17 6 VALUES FUND – APPROPRIATION. 17 7 1. There is appropriated from the general fund of the 17 8 statefrom moneys credited to the general fund of the state as17 9a result of entering into the streamlined sales and use tax17 10agreement,for the fiscal period beginning July 1,20032004, 17 11 and ending June 30, 2010, the following amounts to be used for 17 12 the purpose designated: 17 13 For deposit in the grow Iowa values fund created in section 17 14 15G.107, if enacted by 2003 Iowa Acts, House File 692 or 17 15 another Act: 17 16FY 2003-2004...................................... $ 5,000,00017 17 FY 2004-2005...................................... $ 23,000,000 17 18 FY 2005-2006...................................... $ 75,000,000 17 19 FY 2006-2007...................................... $ 75,000,000 17 20 FY 2007-2008...................................... $ 75,000,000 17 21 FY 2008-2009...................................... $ 75,000,000 17 22 FY 2009-2010...................................... $ 75,000,000 17 232. For purposes of this section, "moneys credited to the17 24general fund of the state as a result of entering into the17 25streamlined sales and use tax agreement" means the amount of17 26sales and use tax receipts credited to the general fund of the17 27state during a fiscal year that exceeds by two percent or more17 28the total sales and use tax receipts credited to the general17 29fund of the state during the previous fiscal year.17 30a. If the moneys credited to the general fund of the state17 31as a result of entering into the streamlined sales and use tax17 32agreement during a fiscal year total less than the amount17 33appropriated in this section, the appropriation in this17 34section shall be reduced to equal the total amount of the17 35moneys so credited.18 1b. If the appropriation for a fiscal year is reduced18 2pursuant to paragraph "a", all appropriations made from the18 3grow Iowa values fund for the same fiscal year shall be18 4reduced proportionately to the amount reduced due to paragraph18 5"a".18 63.2. Notwithstanding section 8.33, moneys that remain 18 7 unexpended at the end of a fiscal year shall not revert to any 18 8 fund but shall remain available for expenditure for the 18 9 designated purposes during the succeeding fiscal year. 18 10 DIVISION IX 18 11 MILITARY PAY DIFFERENTIAL 18 12 Sec. 31. 2003 Iowa Acts, chapter 179, section 21, 18 13 unnumbered paragraph 5, is amended to read as follows: 18 14 Notwithstanding section 8.33, unencumbered or unobligated 18 15 funds remaining on June 30, 2003, from the appropriation made 18 16 in this section shall not revert but shall remain available to 18 17 be used for the purposes designatedin the following fiscal18 18yearuntil the end of the fiscal year beginning July 1, 2004. 18 19 Sec. 32. EFFECTIVE DATE. This division of this Act, being 18 20 deemed of immediate importance, takes effect upon enactment. 18 21 DIVISION X 18 22 STATE PERCENT OF GROWTH 18 23 Sec. 33. Section 257.8, subsection 1, Code Supplement 18 24 2003, is amended to read as follows: 18 25 1. STATE PERCENT OF GROWTH.The state percent of growth18 26for the budget year beginning July 1, 2003, is two percent.18 27 The state percent of growth for the budget year beginning July 18 28 1, 2004, is two percent. The state percent of growth for the 18 29 budget year beginning July 1, 2005, is four percent. The 18 30 state percent of growth for each subsequent budget year shall 18 31 be established by statute which shall be enacted within thirty 18 32 days of the submission in the year preceding the base year of 18 33 the governor's budget under section 8.21. The establishment 18 34 of the state percent of growth for a budget year shall be the 18 35 only subject matter of the bill which enacts the state percent 19 1 of growth for a budget year. 19 2 Sec. 34. STUDENT ACHIEVEMENT AND TEACHER QUALITY PROGRAM. 19 3 Notwithstanding section 257.8, subsection 1, it is the intent 19 4 of the general assembly that the appropriation for the student 19 5 achievement and teacher quality program established in section 19 6 284.1 for the fiscal year beginning July 1, 2005, shall be 19 7 increased by at least forty-four million dollars over the 19 8 amount appropriated for the program for the fiscal year 19 9 beginning July 1, 2004. 19 10 Sec. 35. APPLICABILITY. The section of this division of 19 11 this Act amending section 257.8 is applicable for computing 19 12 state aid under the state school foundation program for the 19 13 school budget year beginning July 1, 2005. 19 14 DIVISION XI 19 15 EARLY SEPARATION PROGRAM 19 16 Sec. 36. 2004 SICK LEAVE AND VACATION INCENTIVE PROGRAM. 19 17 1. As used in this section, unless the context provides 19 18 otherwise: 19 19 a. "Credited service" means service under the Iowa public 19 20 employees' retirement system, as service is defined in section 19 21 97B.1A, and membership service under the public safety peace 19 22 officers' retirement, accident, and disability system, as 19 23 defined in section 97A.1. 19 24 b. "Eligible employee" means an employee for whom, but for 19 25 participation in the program, the sum of the number of years 19 26 of credited service and the employee's age in years as of 19 27 December 31, 2004, equals or exceeds seventy-five. 19 28 c. "Employee" means an employee of the executive branch of 19 29 this state who is not covered by a collective bargaining 19 30 agreement or who is represented by the largest statewide 19 31 public employees' organization representing state employees, 19 32 including an employee of a judicial district department of 19 33 correctional services if the district elects to participate in 19 34 the program, an employee of the state board of regents if the 19 35 board elects to participate in the program, and an employee of 20 1 the department of justice. However, "employee" does not mean 20 2 an elected official. 20 3 d. "Participant" means a person who timely submits an 20 4 election to participate, and does participate, in the sick 20 5 leave and vacation incentive program established under this 20 6 section. 20 7 e. "Program" means the sick leave and vacation incentive 20 8 program established under this section. 20 9 f. "Regular annual salary" means an amount equal to the 20 10 eligible employee's regular biweekly rate of pay as of the 20 11 date of separation from employment multiplied by twenty-six. 20 12 g. "Sick leave and vacation incentive benefit" means an 20 13 amount equal to the entire value of an eligible employee's 20 14 accumulated but unused vacation plus the lesser of seventy- 20 15 five percent of the value of the eligible employee's 20 16 accumulated and unused sick leave or seventy-five percent of 20 17 the employee's regular annual salary. 20 18 2. To become a participant in the program, an eligible 20 19 employee shall do all of the following: 20 20 a. Submit by May 1, 2004, a written application, on forms 20 21 prescribed by the department of administrative services, 20 22 seeking participation in the program. 20 23 b. Agree to waive any and all rights to receive payments 20 24 of sick leave balances under section 70A.23 and accrued 20 25 vacation balances in a form other than as provided in this 20 26 section. 20 27 c. Agree to waive all rights to file suit against the 20 28 state of Iowa, including all of its departments, agencies, and 20 29 other subdivisions, based on state or federal claims arising 20 30 out of the employment relationship. 20 31 d. Acknowledge, in writing, that participation in the 20 32 program waives any right to accept permanent part-time or 20 33 permanent full-time employment with the state other than as an 20 34 elected official on or after July 2, 2004. 20 35 e. Agree to separate from employment with the state by 21 1 July 2, 2004. 21 2 3. a. Upon acceptance to participate in the program and 21 3 separation from employment with the state by July 2, 2004, a 21 4 participant shall receive a sick leave and vacation incentive 21 5 benefit. The state shall pay to the participant a portion of 21 6 the sick leave and vacation incentive benefit each fiscal year 21 7 for a period of five years commencing with the fiscal year 21 8 ending June 30, 2005. 21 9 b. A participant in the program shall be eligible to 21 10 continue participation in the group plan or under the group 21 11 contract at the participant's own expense in the same manner 21 12 as a retired employee pursuant to section 509A.13. In 21 13 addition, a participant shall be deemed an eligible retired 21 14 state employee for purposes of eligibility for continuation of 21 15 group insurance covering spouses as provided in section 21 16 509A.13A. 21 17 4. a. The department of administrative services shall 21 18 administer the program, including the determination of 21 19 eligibility for participation in the program, and shall adopt 21 20 administrative rules to administer the program. The 21 21 department may adopt rules on an emergency basis under section 21 22 17A.4, subsection 2, and section 17A.5, subsection 2, 21 23 paragraph "b", to implement this section and the rules shall 21 24 be effective immediately upon filing unless a later date is 21 25 specified in the rules. 21 26 b. Records of the Iowa public employees' retirement system 21 27 may be released for the purposes of administering and 21 28 monitoring the program subject to the requirements of section 21 29 97B.17, subsection 5. 21 30 c. The department of administrative services, in 21 31 collaboration with the department of management, shall present 21 32 an interim report to the general assembly, including copies to 21 33 the legislative services agency and the fiscal committee of 21 34 the legislative council, by October 1, 2004, concerning the 21 35 operation of the program. The department shall also submit an 22 1 annual update concerning the program by October 1 of each year 22 2 for four years, commencing October 1, 2005. The reports shall 22 3 include information concerning the number of program 22 4 participants, the cost of the program including any payments 22 5 made to participants, the number of state employment positions 22 6 eliminated pursuant to the program, and the number of 22 7 positions vacated by a program participant that have been 22 8 refilled. 22 9 5. An employer, as defined in section 70A.38, may employ 22 10 persons to fill vacancies created as a result of employee 22 11 participation in the program established pursuant to this 22 12 section subject to the following: 22 13 a. The employer shall not fill more than seventy-five 22 14 percent of the vacancies created as a result of employee 22 15 participation in the program. 22 16 b. An employer shall not offer employment to an individual 22 17 who is participating in the program established pursuant to 22 18 this division of this Act or in an early termination program 22 19 established pursuant to 2001 Iowa Acts, Second Extraordinary 22 20 Session, chapter 5, or 2002 Iowa Acts, Second Extraordinary 22 21 Session, chapter 1001. 22 22 Sec. 37. EFFECTIVE DATE. This division of this Act, being 22 23 deemed of immediate importance, takes effect upon enactment. 22 24 DIVISION XII 22 25 CIGARETTE STAMP PRINTING 22 26 Sec. 38. Section 453A.7, unnumbered paragraph 2, Code 22 27 Supplement 2003, is amended to read as follows: 22 28 There is appropriated annually from the general fund of the 22 29 statethe sum of one hundred fifteen thousand dollars to carry22 30outto the department of revenue an amount sufficient to 22 31 implement the provisions of this section. 22 32 EXPLANATION 22 33 RESERVE FUNDS – USE OF REVERSIONS – This division I 22 34 provides that the interest and earnings from the Iowa economic 22 35 emergency fund and the cash reserve fund will be credited to 23 1 the general fund of the state instead of the rebuild Iowa 23 2 infrastructure fund as provided in Code sections 8.55 and 23 3 8.56. 23 4 The division delays by one year the effective date of a 23 5 change in the maximum balances of the cash reserve and Iowa 23 6 economic emergency funds. Current law provides that effective 23 7 July 1, 2004, the maximum balances of the two reserve funds 23 8 will change from each at 5 percent of the adjusted revenue 23 9 estimate to the cash reserve at 7.5 percent and the Iowa 23 10 economic emergency fund at 2.5 percent. The bill delays this 23 11 change until July 1, 2005. 23 12 The division also provides that any unspent balances of 23 13 operational appropriations, except for those of charter 23 14 agencies, are to revert to the general fund of the state at 23 15 the end of FY 2004-2005. Present law permits 50 percent of 23 16 such balances to be used by the agency for the next year for 23 17 certain specified purposes. 23 18 TAX ON RESIDENTIAL UTILITIES – PHASEOUT – This division 23 19 II sets the state sales and use tax rates on gas, electricity, 23 20 and fuel for residential customers as follows: 2 percent for 23 21 the second half of the 2004 calendar year; 1 percent for the 23 22 2005 calendar year; and 0 percent, total state exemption, for 23 23 the 2006 and subsequent calendar years. 23 24 COMBINED CORPORATE RETURNS – This division III requires 23 25 that the net income of affiliated groups of corporations 23 26 engaged in a unitary business be computed on a combined return 23 27 basis for corporate tax purposes. The affiliated group would 23 28 include corporations with common ownership whereby one or more 23 29 corporations own 80 percent or more of another corporation. 23 30 The division would require that one Iowa corporate income tax 23 31 return be filed that would include all unitary members of an 23 32 affiliated group. Any nonunitary member that is subject to 23 33 Iowa tax would file its own separate corporate return. Only 23 34 Iowa sales of those corporations doing business in Iowa would 23 35 be included in the numerator of the Iowa sales ratio. The 24 1 division also provides that only those corporations doing 24 2 business in Iowa are jointly and severally liable for the tax 24 3 of the combined return. The additional revenues to be 24 4 collected as a result of this division are appropriated to 24 5 assist in fully funding the regular and additional homestead 24 6 credit reimbursement programs. 24 7 Except for the appropriations, the division applies 24 8 retroactively to January 1, 2004, for tax years beginning on 24 9 or after that date. 24 10 CIGARETTE AND TOBACCO TAX RATES – This division IV 24 11 increases the cigarette tax by 60 cents per pack of 20 from 36 24 12 cents per pack to 96 cents per pack, increases the tax on 24 13 tobacco products from 22 percent to 30 percent of the 24 14 wholesale sales price of the tobacco products, and imposes an 24 15 inventory tax on all retailers as well as distributors and on 24 16 all tobacco products. The reference to Class A and Class B 24 17 cigarettes is deleted since all cigarettes are taxed at the 24 18 same rate and the tax rate per cigarette is expressed in cents 24 19 rather than mills. The division reduces the discount on the 24 20 purchase of cigarette tax stamps from 2 percent to 1 percent. 24 21 The rate increases in this division take effect March 1, 2004. 24 22 The increased revenues as a result of the rate increases in 24 23 this division are appropriated to the department of public 24 24 health, department of human services, and commission of 24 25 veterans affairs for FY 2004-2005. 24 26 SERVICES SUBJECT TO TAX – This division V adds new 24 27 services to be subject to Iowa sales and use tax. These 24 28 services are based upon services listed in the North American 24 29 industry classification system (NAICS) and include 24 30 engineering, accounting-related, public relations services, 24 31 architectural, data retrieval, consulting, management 24 32 services, collections and credit reporting, and surveying. 24 33 The division also decreases the state sales and use tax 24 34 rates to 4.75 percent effective January 1, 2006, through 24 35 December 31, 2007, and the rates become 4.25 percent effective 25 1 January 1, 2008. 25 2 The additional revenues as a result of the taxation of 25 3 these additional services are appropriated for FY 2004-2005 to 25 4 the college student aid commission, department of education, 25 5 and state board of regents. 25 6 FAMILY FARM AND AGRICULTURAL TAX CREDITS – This division 25 7 VI repeals the agricultural land tax credit and increases the 25 8 amount of the family farm tax credit from $10 million to $20 25 9 million. 25 10 GAMBLING GAMES TAXATION – This division VII revises the 25 11 thresholds and rates for state taxation of gambling games in 25 12 riverboat and land-based casinos in Code section 99F.11. This 25 13 revision is retroactively applicable to July 1, 2003. 25 14 GROW IOWA VALUES FUND – This division VIII makes the 25 15 appropriations to the grow Iowa values fund from any moneys in 25 16 the general fund of the state in lieu of from the moneys in 25 17 the general fund of the state raised as a result of Iowa's 25 18 entering into the streamlined sales and use tax agreement. 25 19 This change begins with the appropriation made for FY 2004- 25 20 2005. 25 21 MILITARY PAY DIFFERENTIAL – This division IX provides that 25 22 any unencumbered moneys remaining from the appropriation made 25 23 in FY 2002-2003 for military pay differential purposes shall 25 24 not revert but are available to be used until the end of FY 25 25 2004-2005. This appropriation is used for paying state 25 26 employees who are activated for duty in the armed forces of 25 27 the United States the difference between their state pay and 25 28 military pay and to continue state health coverage. The 25 29 division takes effect upon enactment. 25 30 STATE PERCENT OF GROWTH – This division X establishes a 25 31 state percent of growth of 4 percent for purposes of the state 25 32 school foundation program for the school budget year beginning 25 33 July 1, 2005. The division provides that this section of the 25 34 bill is applicable for state aid computation under the school 25 35 foundation program for the school budget year beginning July 26 1 1, 2005. 26 2 The division also provides that it is the intent of the 26 3 general assembly that the appropriation for the student 26 4 achievement and teacher quality program for the fiscal year 26 5 beginning July 1, 2005, shall be increased by at least $44 26 6 million over the amount appropriated for the program for the 26 7 fiscal year beginning July 1, 2004. 26 8 EARLY SEPARATION PROGRAM – This division XI establishes a 26 9 sick leave and vacation incentive program in a manner similar 26 10 to the program established in 2001. 26 11 The division establishes a sick leave and vacation 26 12 incentive program for eligible employees of the executive 26 13 branch of the state who are not covered by a collective 26 14 bargaining agreement and who are represented by the largest 26 15 statewide public employees' organization representing state 26 16 employees. Employees of a judicial district department of 26 17 correctional services and the state board of regents may 26 18 participate if the employing entity agrees to participate. 26 19 The division excludes elected officials from participation. 26 20 The program shall be administered by the department of 26 21 administrative services. The division permits eligible 26 22 executive branch employees for which the sum of the number of 26 23 years of credited service under the Iowa public employees' 26 24 retirement system (IPERS) and the public safety peace 26 25 officers' retirement, accident, and disability system (PORS) 26 26 and the employee's age as of December 31, 2004, equals or 26 27 exceeds 75 to separate from service with the state and receive 26 28 a sick leave and vacation incentive benefit payable in five 26 29 fiscal years beginning with the fiscal year that ends on June 26 30 30, 2005. The incentive benefit is equal to the employee's 26 31 unused vacation plus the lesser of an amount equal to 75 26 32 percent of the employee's regular annual salary or an amount 26 33 equal to 75 percent of the value of the employee's sick leave. 26 34 To receive the incentive benefit, an eligible employee must 26 35 submit an application to participate in the program by May 1, 27 1 2004, separate from state employment by July 2, 2004, 27 2 acknowledge the employee's ineligibility to return to 27 3 permanent part-time or permanent full-time employment with the 27 4 state, and waive any claims to unused sick leave or vacation 27 5 balances otherwise payable upon termination of employment. 27 6 Employees who participate in the program are eligible to 27 7 continue to participate in group insurance coverage from the 27 8 state in the same manner as employees who retire from state 27 9 employment. The division also permits release of IPERS 27 10 records for the purpose of monitoring and administering the 27 11 sick leave and vacation incentive program. The division 27 12 further provides that an employer may fill vacancies created 27 13 by employees participating in the program, but the employer 27 14 shall not fill more than 75 percent of the vacancies created 27 15 and shall not offer employment to an individual participating 27 16 in the program established by the division or in an early 27 17 termination program established in 2001 or 2002. 27 18 The division takes effect upon enactment. 27 19 CIGARETTE STAMP PRINTING – This division XII provides a 27 20 standing unlimited appropriation for the printing of cigarette 27 21 tax stamps in lieu of the present $115,000 appropriation. 27 22 LSB 5530XL 80 27 23 mg/gg/14.2
Text: HSB00723 Text: HSB00725 Text: HSB00700 - HSB00799 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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