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PAG LIN 1 1 Amend the amendment, S-3392, to House File 683, as 1 2 amended, passed, and reprinted by the House, as 1 3 follows: 1 4 #1. By striking page 1, line 3, through page 34, 1 5 line 10, and inserting the following: 1 6 "# . By striking everything after the enacting 1 7 clause and inserting the following: 1 8 "DIVISION I 1 9 STATE EMPLOYEE SALARIES 1 10 Section 1. 2003 Iowa Acts, Senate File 458, 1 11 section 48, unnumbered paragraphs 1 and 2, if enacted, 1 12 are amended to read as follows: 1 13 There is appropriated from the general fund of the 1 14 state to the salary adjustment fund for distribution 1 15 by the department of management to the various state 1 16 departments, boards, commissions, councils, and 1 17 agencies, and to the state board of regents for those 1 18 persons employed at the state school for the deaf and 1 19 the Iowa braille and sight saving school, for the 1 20 fiscal year beginning July 1, 2003, and ending June 1 21 30, 2004, the amount of$28,000,000$30,000,000, or so 1 22 much thereof as may be necessary, to fully fund annual 1 23 pay adjustments, expense reimbursements, and related 1 24 benefits implemented pursuant to the following: 1 25 Of the amount appropriated in this section, 1 26$2,668,000$2,818,000 shall be allocated to the 1 27 judicial branch for the purpose of funding annual pay 1 28 adjustments, expense reimbursements, and related 1 29 benefits implemented for judicial branch employees. 1 30 In distributing the remainder of the amount 1 31 appropriated in this section, the department of 1 32 management, in order to address essential public 1 33 protection functions and recognizing the availability 1 34 of funds appropriated in other Acts of the general 1 35 assembly and other sources, shall give priority, in 1 36 descending order, to the department of corrections, 1 37 department of human services, and department of public 1 38 safety, and then to the remaining state departments, 1 39 boards, commissions, councils, and agencies to which 1 40 the appropriation is applicable. 1 41 Sec. 2. STATE COURTS – JUSTICES, JUDGES, AND 1 42 MAGISTRATES. 1 43 1. Of the amount allocated for the judicial branch 1 44 in 2003 Iowa Acts, Senate File 458, section 48, if 1 45 enacted, $150,000 is allocated to fund the changes in 1 46 this section to the salaries of justices, judges, and 1 47 magistrates. 1 48 2. The following annual salary rates shall be paid 1 49 to the persons holding the judicial positions 1 50 indicated during the fiscal year beginning July 1, 2 1 2003, effective with the pay period beginning December 2 2 5, 2003, and for subsequent pay periods: 2 3 a. Chief justice of the supreme court: 2 4 .................................................. $ 127,040 2 5 b. Each justice of the supreme court: 2 6 .................................................. $ 122,500 2 7 c. Chief judge of the court of appeals: 2 8 .................................................. $ 122,380 2 9 d. Each associate judge of the court of appeals: 2 10 .................................................. $ 117,850 2 11 e. Each chief judge of a judicial district: 2 12 .................................................. $ 116,760 2 13 f. Each district judge except the chief judge of a 2 14 judicial district: 2 15 .................................................. $ 112,010 2 16 g. Each district associate judge: 2 17 .................................................. $ 97,610 2 18 h. Each associate juvenile judge: 2 19 .................................................. $ 97,610 2 20 i. Each associate probate judge: 2 21 .................................................. $ 97,610 2 22 j. Each judicial magistrate: 2 23 .................................................. $ 29,100 2 24 k. Each senior judge: 2 25 .................................................. $ 6,500 2 26 3. Persons receiving the salary rates established 2 27 under subsection 2 shall not receive any additional 2 28 salary adjustments provided by 2003 Iowa Acts, Senate 2 29 File 458, division V. 2 30 DIVISION II 2 31 APPROPRIATIONS AND APPROPRIATIONS REVISIONS 2 32 INSURANCE DIVISION 2 33 Sec. 3. INSURANCE STUDY. There is appropriated 2 34 from the general fund of the state to the department 2 35 of commerce for the fiscal year beginning July 1, 2 36 2003, and ending June 30, 2004, the following amount, 2 37 or so much thereof as is necessary, to be used for the 2 38 purpose designated: 2 39 For the insurance division to implement the school 2 40 health insurance reform team study in accordance with 2 41 2003 Iowa Acts, Senate File 386: 2 42 .................................................. $ 15,000 2 43 DEPARTMENT OF MANAGEMENT 2 44 Sec. 4. LOCAL GOVERNMENT INNOVATION FUND 2 45 APPROPRIATION. There is appropriated from the general 2 46 fund of the state to the department of management for 2 47 the fiscal year beginning July 1, 2003, and ending 2 48 June 30, 2004, the following amount, or so much 2 49 thereof as is necessary, to be used for the purpose 2 50 designated: 3 1 For deposit in the local government innovation fund 3 2 created in section 8.64: 3 3 .................................................. $ 1,000,000 3 4 Notwithstanding section 8.64, subsection 4, if 3 5 enacted by 2003 Iowa Acts, Senate File 453, section 3 6 27, the local government innovation fund committee may 3 7 provide up to 20 percent of the amount appropriated in 3 8 this section in the form of forgivable loans or as 3 9 grants for those projects that propose a new and 3 10 innovative sharing initiative that would serve as an 3 11 important model for cities and counties. 3 12 DEPARTMENT OF CORRECTIONS 3 13 Sec. 5. There is appropriated from the rebuild 3 14 Iowa infrastructure fund to the department of 3 15 corrections for the fiscal year beginning July 1, 3 16 2003, and ending June 30, 2004, the following amounts, 3 17 or so much thereof as is necessary, to be used for the 3 18 purposes designated: 3 19 1. For expansion of the Luster Heights facility 3 20 into a community-based corrections facility and an 3 21 institutional work and substance abuse treatment 3 22 center: 3 23 .................................................. $ 92,000 3 24 2. For conversion of the Clarinda lodge into 3 25 minimum security bed space: 3 26 .................................................. $ 730,400 3 27 Sec. 6. 2003 Iowa Acts, Senate File 439, section 3 28 4, subsection 1, paragraphs b and g, as enacted, are 3 29 amended to read as follows: 3 30 b. For the operation of the Anamosa correctional 3 31 facility, including salaries, support, maintenance, 3 32 employment of correctional officers and a part-time 3 33 chaplain to provide religious counseling to inmates of 3 34 a minority race, miscellaneous purposes, and for not 3 35 more than the following full-time equivalent 3 36 positions: 3 37 .................................................. $24,531,9173 38 25,196,085 3 39 ............................................... FTEs375.753 40 385.25 3 41 Moneys are provided within this appropriation for 3 42 one full-time substance abuse counselor for the Luster 3 43 Heights facility, for the purpose of certification of 3 44 a substance abuse program at that facility. Of the 3 45 funds appropriated in this paragraph "b", $664,168 is 3 46 allocated for implementation costs associated with 3 47 expansion of the Luster Heights facility. 3 48 g. For the operation of the Clarinda correctional 3 49 facility, including salaries, support, maintenance, 3 50 employment of correctional officers, miscellaneous 4 1 purposes, and for not more than the following full- 4 2 time equivalent positions: 4 3 .................................................. $18,595,7884 4 19,389,220 4 5 ............................................... FTEs291.764 6 304.58 4 7 Moneys received by the department of corrections as 4 8 reimbursement for services provided to the Clarinda 4 9 youth corporation are appropriated to the department 4 10 and shall be used for the purpose of operating the 4 11 Clarinda correctional facility. 4 12 Of the funds appropriated in this paragraph "g", 4 13 $793,432 is allocated for implementation costs 4 14 associated with expansion of the conversion of the 4 15 Clarinda lodge, with $277,500 of the allocation for 4 16 one-time costs and $515,932 for ongoing costs. 4 17 PUBLIC TRANSIT 4 18 Sec. 7. 2003 Iowa Acts, Senate File 458, section 4 19 8, if enacted, is amended to read as follows: 4 20 SEC. 8. PUBLIC TRANSIT ASSISTANCE APPROPRIATION. 4 21 Notwithstanding section 312.2, subsection 14, the 4 22 amount appropriated from the general fund of the state 4 23 under section 312.2, subsection 14, to the state 4 24 department of transportation for public transit 4 25 assistance under chapter 324A for the fiscal year 4 26 beginning July 1, 2003, and ending June 30, 2004, is 4 27 reduced by the following amount: 4 28 .................................................. $1,298,6754 29 2,582,800 4 30 OFFICE OF THE GOVERNOR 4 31 Sec. 8. 2003 Iowa Acts, House File 655, section 5, 4 32 subsection 1, if enacted, is amended to read as 4 33 follows: 4 34 1. GENERAL OFFICE 4 35 For salaries, support, maintenance, and 4 36 miscellaneous purposes for the general office of the 4 37 governor and the general office of the lieutenant 4 38 governor, and for not more than the following full- 4 39 time equivalent positions: 4 40 .................................................. $1,243,6434 41 1,493,643 4 42 ............................................... FTEs17.254 43 19.25 4 44 Of the amount appropriated in this section, 4 45 $250,000 is allocated for two full-time equivalent 4 46 positions in the office of the governor that were 4 47 previously funded by other state departments and 4 48 agencies. 4 49 DEPARTMENT OF REVENUE 4 50 Sec. 9. 2003 Iowa Acts, House File 655, section 5 1 31, if enacted, is amended to read as follows: 5 2 SEC. 31. DEPARTMENT OF REVENUE. There is 5 3 appropriated from the general fund of the state to the 5 4 department of revenue for the fiscal year beginning 5 5 July 1, 2003, and ending June 30, 2004, the following 5 6 amounts, or so much thereof as is necessary, to be 5 7 used for the purposes designated, and for not more 5 8 than the following full-time equivalent positions used 5 9 for the purposes designated in subsection 1: 5 10 ............................................... FTEs378.875 11 380.87 5 12 Of the full-time equivalent positions authorized in 5 13 this section, two full-time equivalent positions are 5 14 allocated for new positions to assist in preparation 5 15 of information for the revenue estimating conference 5 16 and in improving the turnaround time for processing 5 17 corporate tax filings. 5 18 1. COMPLIANCE – INTERNAL RESOURCES MANAGEMENT – 5 19 STATE FINANCIAL MANAGEMENT – STATEWIDE PROPERTY TAX 5 20 ADMINISTRATION 5 21 For salaries, support, maintenance, and 5 22 miscellaneous purposes: 5 23 .................................................. $23,259,1115 24 23,359,111 5 25 Of the funds appropriated pursuant to this 5 26 subsection, $400,000 shall be used to pay the direct 5 27 costs of compliance related to the collection and 5 28 distribution of local sales and services taxes imposed 5 29 pursuant to chapters 422B and 422E. 5 30 The director of revenue shall prepare and issue a 5 31 state appraisal manual and the revisions to the state 5 32 appraisal manual as provided in section 421.17, 5 33 subsection 18, without cost to a city or county. 5 34 2. COLLECTION COSTS AND FEES 5 35 For payment of collection costs and fees pursuant 5 36 to section 422.26: 5 37 .................................................. $ 28,166 5 38 DEPARTMENT OF PUBLIC HEALTH 5 39 Sec. 10. 2003 Iowa Acts, House File 667, section 5 40 2, subsection 8, as enacted, is amended to read as 5 41 follows: 5 42 8. INFECTIOUS DISEASES 5 43 For reducing the incidence and prevalence of 5 44 communicable diseases, and for not more than the 5 45 following full-time equivalent positions: 5 46 .................................................. $977,3405 47 1,074,888 5 48 ............................................... FTEs 36.90 5 49 DIVISION III 5 50 MISCELLANEOUS PROVISIONS 6 1 Sec. 11. GOVERNMENT OVERSIGHT COMMITTEE – REVIEW 6 2 OF CONTINUING CARE RETIREMENT COMMUNITIES – ASSISTED 6 3 LIVING PROGRAM APPLICABILITY. The government 6 4 oversight committees shall review the application of 6 5 chapter 231C, relating to assisted living programs, to 6 6 continuing care retirement communities, as defined in 6 7 section 523D.1. The committees shall submit 6 8 recommendations for any legislation deemed necessary 6 9 for consideration during the 2004 regular legislative 6 10 session. 6 11 Sec. 12. Section 15E.193B, subsection 4, Code 6 12 2003, as amended by 2003 Iowa Acts, Senate File 458, 6 13 section 100, if enacted, is amended to read as 6 14 follows: 6 15 4. The eligible housing business shall complete 6 16 its building or rehabilitation within two years from 6 17 the time the business begins construction on the 6 18 single-family homes and dwelling units. The failure 6 19 to complete construction or rehabilitation within two 6 20 years shall result in the eligible housing business 6 21 becoming ineligible and subject to the repayment 6 22 requirements and penalties enumerated in subsection 7. 6 23 The department may extend the prescribed two-year 6 24 completion period for any current or future project 6 25 which has not been completed if the department 6 26 determines that completion within the two-year period 6 27 is impossible or impractical as a result of a 6 28 substantial loss caused by flood, fire, earthquake, 6 29 storm, or other catastrophe. For purposes of this 6 30 subsection, "substantial loss" means damage or 6 31 destruction in an amount in excess of thirty percent 6 32 of the project's expected eligible basis as set forth 6 33 in the eligible housing business's application. 6 34 Sec. 13. Section 215.14, Code 2003, is amended to 6 35 read as follows: 6 36 215.14 APPROVAL BY DEPARTMENT. 6 37 A commercial weighing and measuring device shall 6 38 not be installed in this state unless approved by the 6 39 department.All livestock scales and6 40 1. A pit typescalesscale or any other scale 6 41 installed in a pit, regardless of capacity, that is 6 42 installed on or after July 1, 1990, shall have a 6 43 clearance of not less than four feet from the finished 6 44 floor line of the scale to the bottom of the "I" beam 6 45 of the scale bridge. Livestock shall not be weighed 6 46 on any scale other than a livestock scale or pit type 6 47 scale. 6 48 2. An electronic pitless scale shall be placed on 6 49 concrete footings with concrete floor. The concrete 6 50 floor shall allow for adequate drainage away from the 7 1 scale as required by the department. There shall be a 7 2 clearance of not less than eight inches between the 7 3 weigh bridge and the concrete floor to facilitate 7 4 inspection and cleaning. 7 5 3. After approval by the department, the 7 6 specifications for a commercial weighing and measuring 7 7 device shall be furnished to the purchaser of the 7 8 device by the manufacturer. The approval shall be 7 9 based upon the recommendation of the United States 7 10 national institute of standards and technology. 7 11 Sec. 14. Section 231C.17, subsection 4, if enacted 7 12 by 2003 Iowa Acts, House File 675, section 24, is 7 13 amended by striking the subsection and inserting in 7 14 lieu thereof the following: 7 15 4. A continuing care retirement community, as 7 16 defined in section 523D.1, may provide limited 7 17 personal care services and emergency response services 7 18 to its independent living tenants if all of the 7 19 following conditions are met: 7 20 a. The provision of such personal care services or 7 21 emergency response services does not result in 7 22 inadequate staff coverage to meet the service needs of 7 23 all tenants of the continuing care retirement 7 24 community. 7 25 b. The staff providing the personal care or 7 26 emergency response services is trained or qualified to 7 27 the extent necessary to provide such services. 7 28 c. The continuing care retirement community 7 29 documents the date, time, and nature of the personal 7 30 care or emergency response services provided. 7 31 d. Emergency response services are only provided 7 32 in situations which constitute an urgent need for 7 33 immediate action or assistance due to unforeseen 7 34 circumstances. 7 35 This subsection shall not be construed to prohibit 7 36 an independent living tenant of a continuing care 7 37 retirement community from contracting with a third 7 38 party for personal care or emergency response 7 39 services. 7 40 Sec. 15. NEW SECTION. 237A.25 CONSUMER 7 41 INFORMATION. 7 42 1. The department shall develop consumer 7 43 information material to assist parents in selecting a 7 44 child care provider. In developing the material, the 7 45 department shall consult with department of human 7 46 services staff, department of education staff, the 7 47 state child care advisory council, the Iowa 7 48 empowerment board, and child care resource and 7 49 referral services. In addition, the department may 7 50 consult with other entities at the local, state, and 8 1 national level. 8 2 2. The consumer information material developed by 8 3 the department for parents and other consumers of 8 4 child care services shall include but is not limited 8 5 to all of the following: 8 6 a. A pamphlet or other printed material containing 8 7 consumer-oriented information on locating a quality 8 8 child care provider. 8 9 b. Information explaining important considerations 8 10 a consumer should take into account in selecting a 8 11 licensed or registered child care provider. 8 12 c. Information explaining how a consumer can 8 13 identify quality services, including what questions to 8 14 ask of providers and what a consumer might expect or 8 15 demand to know before selecting a provider. 8 16 d. An explanation of the applicable laws and 8 17 regulations written in layperson's terms. 8 18 e. An explanation of what it means for a provider 8 19 to be licensed, registered, or unregistered. 8 20 f. An explanation of the information considered in 8 21 registry and record background checks. 8 22 g. Other information deemed relevant to consumers. 8 23 3. The department shall implement and publicize an 8 24 internet page or site that provides all of the 8 25 following: 8 26 a. The written information developed pursuant to 8 27 subsections 1 and 2. 8 28 b. Regular informational updates, including when a 8 29 child care provider was last subject to a state 8 30 quality review or inspection and, based upon a final 8 31 score or review, the results indicating whether the 8 32 provider passed or failed the review or inspection. 8 33 c. Capability for a consumer to be able to access 8 34 information concerning child care providers, such as 8 35 informational updates, identification of provider 8 36 location, name, and capacity, and identification of 8 37 providers participating in the state child care 8 38 assistance program and those participating in the 8 39 child care food program, by sorting the information or 8 40 employing other means that provide the information in 8 41 a manner that is useful to the consumer. Information 8 42 regarding provider location shall identify providers 8 43 located in the vicinity of an address selected by a 8 44 consumer and provide contact information without 8 45 listing the specific addresses of the providers. 8 46 d. Other information deemed appropriate by the 8 47 department. 8 48 Sec. 16. Section 384.84, Code 2003, is amended by 8 49 adding the following new subsection: 8 50 NEW SUBSECTION. 9. Notwithstanding subsection 3, 9 1 a lien shall not be filed against the land if the 9 2 premises are located on leased land. If the premises 9 3 are located on leased land, a lien may be filed 9 4 against the premises only. 9 5 Sec. 17. Section 422E.3A, subsection 2, paragraph 9 6 a, if enacted by 2003 Iowa Acts, Senate File 445, 9 7 section 8, is amended to read as follows: 9 8 a. A school district that is located in whole or 9 9 in part in a county that voted on and approved prior 9 10 to April 1, 2003, the local sales and services tax for 9 11 school infrastructure purposes and that has a sales 9 12 tax capacity per student above the guaranteed school 9 13 infrastructure amount shall receive for the remainder 9 14 of the term of the tax an amount equal to its pro rata 9 15 share of the local sales and services tax receipts as 9 16 provided in section 422E.3, subsection 5, paragraph 9 17 "d", unless the school board passes a resolution by 9 18 October 1, 2003, agreeing to receive a distribution 9 19 pursuant to paragraph "b", subparagraph (1). 9 20 Sec. 18. Section 422E.3A, subsection 2, paragraph 9 21 b, subparagraph (1), if enacted by 2003 Iowa Acts, 9 22 Senate File 445, section 8, is amended to read as 9 23 follows: 9 24 (1) A school district that is located in whole or 9 25 in part in a county that voted on and approved prior 9 26 to April 1, 2003, the local sales and services tax for 9 27 school infrastructure purposes and that has a sales 9 28 tax capacity per student below its guaranteed school 9 29 infrastructure amount shall receive for the remainder 9 30 of the term of the tax an amount equal to its pro rata 9 31 share of the local sales and services tax receipts as 9 32 provided in section 422E.3, subsection 5, paragraph 9 33 "d", plus an amount equal to its supplemental school 9 34 infrastructure amount, unless the school district 9 35 passes a resolution by October 1, 2003, agreeing to 9 36 receive only an amount equal to its pro rata share as 9 37 provided in section 422E.3, subsection 5, paragraph 9 38 "d", in all subsequent years. 9 39 Sec. 19. Section 435.26A, subsection 5, as enacted 9 40 by 2003 Iowa Acts, Senate File 134, section 7, and as 9 41 amended by 2003 Iowa Acts, Senate File 458, section 9 42 128, if enacted, is amended to read as follows: 9 43 5. An owner of a manufactured home who has 9 44 surrendered a certificate of title under this section 9 45 and requires another certificate of title for the 9 46 manufactured home is required to apply for a 9 47 certificate of title undersection 321.42chapter 321. 9 48 If supporting documents for the reissuance of a title 9 49 are not available or sufficient, the procedure for the 9 50 reissuance of a title specified in the rules of the 10 1 department of transportation shall be used. 10 2 Sec. 20. Section 459.315, Code 2003, as amended by 10 3 2003 Iowa Acts, House File 644, if enacted, is amended 10 4 by adding the following new subsection: 10 5 NEW SUBSECTION. 4A. This section shall not 10 6 require a person to be certified as a confinement site 10 7 manure applicator if the person applies manure which 10 8 originates from a manure storage structure which is 10 9 part of a small animal feeding operation. 10 10 Sec. 21. Section 508.31A, subsection 2, paragraph 10 11 a, subparagraph (4), as enacted by 2003 Iowa Acts, 10 12 House File 647, section 7, is amended to read as 10 13 follows: 10 14 (4) A person other than a natural person for the 10 15 purpose of providing collateral security for 10 16 securitiesissued by such person andregistered with 10 17 the federal securities and exchange commission. 10 18 Sec. 22. 2003 Iowa Acts, Senate File 401, section 10 19 5, subsection 1, is amended to read as follows: 10 20 1. Notwithstanding any provision of law to the 10 21 contrary, the section of this Act creating section 10 22 453A.2, subsection 5A, is applicable to violations 10 23 pending on the effective date of this Act for which a 10 24 penalty has not been assessed under section 453A.22, 10 25 subsection 2. Notwithstanding this subsection, 10 26 however, if a county health department, a city health 10 27 department, or a city assesses a penalty under section 10 28 453A.22, subsection 2, on or after April 11, 2003 but 10 29 prior to June 30, 2003, for a violation of section 10 30 453A.2, subsection 1, which was pending on April 11, 10 31 2003, the county health department, city health 10 32 department or city assessing the penalty shall be 10 33 deemed to have jurisdiction to assess the penalty and 10 34 the penalty assessed is deemed valid. 10 35 Sec. 23. 2003 Iowa Acts, Senate File 453, section 10 36 31, subsection 1, if enacted, is amended to read as 10 37 follows: 10 38 1. In lieu of applying a charge for capital assets 10 39 to the institutions under the control of the state 10 40 board of regents as otherwise provided in this 10 41 division for executive branch agencies, the 10 42 appropriations made from the general fund of the state 10 43 to the state board of regents for thegeneral10 44universityoperating budgets at the state university 10 45 of Iowa, Iowa state university of science and 10 46 technology, and university of northern Iowa, in 2003 10 47 Iowa Acts, House File 662, section 9, subsections 2, 10 48 3, and 4, are reduced by $17,880,000.The state board10 49of regents shall apply the reduction as follows: state10 50university of Iowa, 46.7 percent, Iowa state11 1university of science and technology, 36.8 percent,11 2and university of northern Iowa, 16.5 percent.11 3 Sec. 24. 2003 Iowa Acts, Senate File 458, section 11 4 21, unnumbered paragraph 3, if enacted, is amended to 11 5 read as follows: 11 6 Of the funds appropriated in this section, up to 11 7 $10,000 is transferred to theIowadepartment of 11 8public healthhuman services for allocation to 11 9 community mental health centers to provide counseling 11 10 services to persons who are members of the national 11 11 guard and reservists activated but as yet not sent to 11 12 combat zones and to the persons' family members. The 11 13 sessions shall be provided on a first come, first 11 14 served basis and shall be limited to three visits per 11 15 family. 11 16 Sec. 25. 2003 Iowa Acts, Senate File 458, section 11 17 149, if enacted, is amended to read as follows: 11 18 SEC. 149. SUPPLEMENTAL PAYMENT ADJUSTMENTS FOR 11 19 PHYSICIAN SERVICES. To the extent that, pursuant to 11 20 law enacted by the Eightieth General Assembly, 2003 11 21 Session, supplemental payment adjustments are 11 22 implemented for physician services provided to medical 11 23 assistance program participants at publicly owned 11 24 acute care hospitals, the department of human services 11 25 shall not, directly or indirectly, recoup the 11 26 supplemental payment adjustments for any reason, 11 27 unless an amount equivalent to the amount of 11 28 adjustment fundsthat wereis first transferred to the 11 29department by the stateuniversity of Iowa college of 11 30 medicineis transferredby the departmentto the11 31qualifying physicians. Any such amount transferred 11 32 and identified as a supplemental payment under this 11 33 section shall then be refunded to the department of 11 34 human services, per the agreement executed for this 11 35 purpose between the department and the university of 11 36 Iowa. 11 37 Sec. 26. 2003 Iowa Acts, Senate File 458, section 11 38 171, subsection 1, if enacted, is amended to read as 11 39 follows: 11 40 1. PURPOSE. The general assembly finds that the 11 41 Iowa communications network is a valuable state asset 11 42 that has served the people of the state well, but 11 43 which requires significant ongoing financial support 11 44 from the state in the form of annual appropriations. 11 45 The operation of a telecommunications network is a 11 46 function that can be and generally is conducted by 11 47 private enterprise. It is in the public interest to 11 48 sell the Iowa communications network to a qualified 11 49 private business enterprise that will commit to 11 50 provide the same secure low-cost high-quality service 12 1 tostate and federalpublic and private agenciesand12 2military installations, as defined in chapter 8D, now 12 3 provided by the network. Through such a sale, the 12 4 state would eliminate the need for ongoing annual 12 5 appropriations while preserving the key benefits 12 6 enjoyed by the state under the present state ownership 12 7 of the network. The state also expects to obtain 12 8 sufficient proceeds from such a sale to cover existing 12 9 obligations and to realize additional proceeds above 12 10 the level of such obligations. Given the current 12 11 depressed state of the telecommunications industry, 12 12 the state can reasonably be expected to maximize sales 12 13 proceeds by allowing a purchaser a period of time in 12 14 which to assemble financing for its purchase. During 12 15 the interim between enactment of this division of this 12 16 Act and completion of a sale, the services of a 12 17 private-enterprise manager with experience operating 12 18 telecommunications networks can reasonably be expected 12 19 to reduce the costs of operating the Iowa 12 20 communications network, thereby lowering annual 12 21 appropriations. 12 22 Sec. 27. 2003 Iowa Acts, Senate File 458, section 12 23 172, subsection 2, paragraph b, if enacted, is amended 12 24 to read as follows: 12 25 b. Select a manager and enter into a management 12 26 contract with the manager by October 1, 2004. The 12 27 management contract shall provide for the continuation 12 28 of all services currently being provided tostate and12 29federalpublic and private agenciesand military12 30installationspursuant to chapter 8D, at the rates 12 31 specified therein, for the duration of the contract. 12 32 The contract shall also specify the manager's 12 33 authority in relation to the duties of the commission 12 34 during the period between execution of the management 12 35 contract and closing of the sale of the network. The 12 36 commission shall establish a dispute resolution 12 37 process regarding rate increases, quality of service 12 38 issues, and other areas of dispute involving network 12 39 subscribers. The commission shall also make 12 40 recommendations regarding imposition of an ongoing 12 41 dispute resolution and appeals process commencing with 12 42 the closing of the sale of the network. 12 43 Sec. 28. 2003 Iowa Acts, Senate File 458, section 12 44 173, subsection 1, if enacted, is amended to read as 12 45 follows: 12 46 1. Theprincipal place of business of the12 47 purchaser and any parent of the purchaser shall be 12 48locatedoperating in the state of Iowa. 12 49 Sec. 29. 2003 Iowa Acts, Senate File 458, section 12 50 174, subsection 4, if enacted, is amended to read as 13 1 follows: 13 2 4. Agree to continue all services currently being 13 3 provided tostate and federalpublic and private 13 4 agenciesand military installations, as defined in 13 5 chapter 8D, for the next ten years, with any annual 13 6 rate increase not to exceed five percent per year, 13 7 provided that the purchaser shall not be required to 13 8 supply at such restricted prices a quantity or quality 13 9 of service greater than that provided by the network 13 10 as of execution of the contract for sale of the 13 11 network. 13 12 Sec. 30. 2003 Iowa Acts, House File 667, section 13 13 27, subsection 1, unnumbered paragraph 2, is amended 13 14 to read as follows: 13 15 For costs associated with the commitment and 13 16 treatment of sexually violent predators in the unit 13 17 located at the state mental health institute at 13 18 Cherokee, including costs of legal services and other 13 19 associated costs, including salaries, support, 13 20 maintenance, and miscellaneous purposes and for not 13 21 more than the following full-time equivalent 13 22 positions: 13 23 .................................................. $ 2,675,179 13 24 ............................................... FTEs46.0013 25 57.00 13 26 Sec. 31. EFFECTIVE DATE – RETROACTIVE 13 27 APPLICABILITY. 13 28 1. The section of this division of this Act 13 29 amending section 231C.17, being deemed of immediate 13 30 importance, takes effect upon enactment. 13 31 2. The section of this division of this Act 13 32 amending 2003 Iowa Acts, Senate File 401, being deemed 13 33 of immediate importance, takes effect upon enactment 13 34 and is retroactively applicable to April 11, 2003. 13 35 DIVISION IV 13 36 CORRECTIVE PROVISIONS 13 37 Sec. 32. Section 8A.505, as enacted by 2003 Iowa 13 38 Acts, House File 534, section 87, is amended by adding 13 39 the following new unnumbered paragraph: 13 40 NEW UNNUMBERED PARAGRAPH. There is appropriated 13 41 annually from the increase in indirect cost 13 42 reimbursements over the amount of indirect cost 13 43 reimbursements received during the fiscal year 13 44 beginning July 1, 2002, to the office of grants 13 45 enterprise management of the department of management 13 46 the sum of up to one hundred twenty-five thousand 13 47 dollars. The director shall transfer the funds 13 48 appropriated to the department of management as 13 49 provided in this paragraph and shall make the funds 13 50 resulting from the increase in reimbursements 14 1 available during the fiscal year to the department of 14 2 management on a monthly basis. If the amount of the 14 3 increase in indirect cost reimbursements is 14 4 insufficient to pay the maximum appropriation provided 14 5 for in this paragraph, the amount appropriated is 14 6 equal to the amount of such increase. 14 7 Sec. 33. Section 12C.4, Code 2003, as amended by 14 8 2003 Iowa Acts, House File 289, section 2, is amended 14 9 to read as follows: 14 10 12C.4 LOCATION OF DEPOSITORIES. 14 11 Deposits by the treasurer of state shall be in 14 12 depositories located in this state; by a county 14 13 officer or county public hospital officer or merged 14 14 area hospital officer, in depositories located in the 14 15 county or in an adjoining county within this state; by 14 16 a memorial hospital treasurer, in a depository located 14 17 within this state which shall be selected by the 14 18 memorial hospital treasurer and approved by the 14 19 memorial hospital commission; by a city treasurer or 14 20 other city financial officer, in depositories located 14 21 in the county in which the city is located or in an 14 22 adjoining county, but if there is no depository in the 14 23 county in which the city is located or in an adjoining 14 24 county then in any other depository located in this 14 25 state which shall be selected as a depository by the 14 26 city council; by a school treasurer or by a school 14 27 secretary in a depository within this state which 14 28 shall be selected by the board of directors or the 14 29 trustees of the school district; by a township clerk 14 30 in a depository located within this state which shall 14 31 be selected by the township clerk and approved by the 14 32 trustees of the township. However, deposits may be 14 33 made in depositories outside of Iowa for the purpose 14 34 of paying principal and interest on bonded 14 35 indebtedness of any municipality when the deposit is 14 36 made not more than ten days before the date the 14 37 principal or interest becomes due. Further, the 14 38 treasurer of state may maintain an account or accounts 14 39 outside the state of Iowa for the purpose of providing 14 40 custodial services for the state and state retirement 14 41 fund accounts. Deposits made for the purpose of 14 42 completing an electronic financial transaction 14 43 pursuant to section14B.2038A.222 or 331.427 may be 14 44 made in any depository located in this state. 14 45 Sec. 34. Section 29A.28, subsection 3, as enacted 14 46 by 2003 Iowa Acts, House File 674, section 3, is 14 47 amended to read as follows: 14 48 3. Upon returning from a leave of absence under 14 49 this section, an employee shall be entitled to return 14 50 to the same position and classification held by the 15 1 employee at the time of entryontointo state active 15 2 duty, active state service, or federal service or to 15 3 the position and classification that the employee 15 4 would have been entitled to if the continuous civil 15 5 service of the employee had not been interrupted by 15 6 state active duty, active state service, or federal 15 7 service. Under this subsection, "position" includes 15 8 the geographical location of the position. 15 9 Sec. 35. Section 70A.39, subsection 1, paragraph 15 10 b, as enacted by 2003 Iowa Acts, House File 381, 15 11 section 1, is amended to read as follows: 15 12 b."Vascularized"Vascular organ" means a heart, 15 13 lung, liver, pancreas, kidney, intestine, or other 15 14 organ that requires the continuous circulation of 15 15 blood to remain useful for purposes of 15 16 transplantation. 15 17 Sec. 36. Section 99B.7, subsection 1, paragraph 1, 15 18 subparagraph (1), Code 2003, as amended by 2003 Iowa 15 19 Acts, Senate File 453, section 104, if enacted, is 15 20 amended to read as follows: 15 21 (1) No other gambling is engaged in at the same 15 22 location, except that lottery tickets or shares issued 15 23 by the Iowa lotterydivision of the department of15 24revenue and financeauthority may be sold pursuant to 15 25 chapter 99G. 15 26 Sec. 37. Section 507A.4, subsection 9, paragraph 15 27 e, as enacted by 2003 Iowa Acts, House File 647, 15 28 section 4, is amended to read as follows: 15 29 e. When not otherwise provided, a foreign or 15 30 domestic multipleemployeeemployer welfare 15 31 arrangement doing business in this state shall pay to 15 32 the commissioner of insurance the fees as required in 15 33 section 511.24. 15 34 Sec. 38. Section 556.11, subsection 5, Code 2003, 15 35 as amended by 2003 Iowa Acts, Senate File 180, section 15 36 2, is amended to read as follows: 15 37 5. If the holder of property presumed abandoned 15 38 under this chapter knows the whereabouts of the owner 15 39 and if the owner's claim has not been barred by the 15 40 statute of limitations, the holder shall, before 15 41 filing the annual report, communicate with the owner 15 42 and take necessary steps to prevent abandonment from 15 43 being presumed. The holder shall exercise due 15 44 diligence to ascertain the whereabouts of the owner. A 15 45 holder is not required to make a due diligence mailing 15 46 to owners whose property has an aggregate value of 15 47 less than fifty dollars. The treasurer of state may 15 48 charge a holder that fails to timely exercise due 15 49 diligence, as required in this subsection, five 15 50 dollars for each name and address account reported if 16 1 thirty-five percentofor more of the accounts are 16 2 claimed within the twenty-four months immediately 16 3 following the filing of the holder report. 16 4 Sec. 39. 2003 Iowa Acts, Senate File 438, section 16 5 3, is repealed. 16 6 Sec. 40. 2003 Iowa Acts, Senate File 453, section 16 7 11, if enacted, is amended to read as follows: 16 8 SEC. 11. Sections403.23,405A.1, 405A.2, 405A.3, 16 9 405A.4, 405A.5, 405A.6, 405A.7, 405A.8, 405A.9, 16 10 405A.10, 422.65, 427A.12, and 427B.19B, Code 2003, are 16 11 repealed. 16 12 Sec. 41. 2003 Iowa Acts, Senate File 458, section 16 13 13, if enacted, is amended to read as follows: 16 14 SEC. 13. REDUCTION IN CREDITS NOT APPLICABLE. The 16 15provisionprovisions in section 25B.7 relating to the 16 16 proration of the property tax creditsdoesand the 16 17 estimation of the portion of the credit or exemption 16 18 which will be funded do not apply with respect to the 16 19 amount of state reimbursement for property tax credits 16 20 under this division. 16 21 Sec. 42. 2003 Iowa Acts, Senate File 458, section 16 22 159, if enacted, is amended to read as follows: 16 23 SEC. 159. EFFECTIVE DATES. The following 16 24 provisions of this division of this Act, being deemed 16 25 of immediate importance, take effect upon enactment: 16 26 1. The amendments to sections 8.23, 8.31, and 8.57 16 27 which are first applicable to appropriations made for 16 28 the fiscal year beginning July 1, 2003. 16 29 2. The amendment to section 12E.12. 16 30 3. The amendments to sections 15E.42, 15E.43, 16 31 15E.45, and 15E.51, which apply retroactively to 16 32 January 1, 2002, for tax years beginning on or after 16 33 that date. 16 34 4. The amendment to section 15E.193B. 16 35 5. The amendment to section 435.26A. 16 36 6. The amendment to section 453A.2, which shall 16 37 only take effect if 2003 Iowa Acts, Senate File 401, 16 38 is enacted by the Eightieth General Assembly, 2003 16 39 Regular Session. 16 40 7. The amendments to sections 453C.1 and 453C.2 16 41 and the related severability provision. 16 42 8. The amendments to sections 518.18 and 518A.35. 16 43 9. The section directing the department of 16 44 corrections to develop a plan for selling certain 16 45 land. 16 46 10. The section relating to the sales and use tax 16 47 refund. 16 48 11. The section relating to the school district 16 49 reimbursement claim. 16 50 The sections of this division of this Act amending 17 1 section 80B.5 and enacting section 80B.5A are 17 2 applicable to the appointment of the director of the 17 3 Iowa law enforcement academy for the term beginning 17 4 May 1, 2004. 17 5Section 29C.8, subsection 3, paragraph "f", as17 6enacted in this division of this Act, and the17 7amendment to section 29C.20, subsection 1, as enacted17 8in this division of this Act, take effect July 1,17 92004.17 10 Sec. 43. 2003 Iowa Acts, House File 171, section 17 11 112, the bill section amending clause, is amended to 17 12 read as follows: 17 13 Section 656.2, subsection 2, paragraph a, 17 14 unnumbered paragraph113, Code 2003, is amended to 17 15 read as follows: 17 16 Sec. 44. 2003 Iowa Acts, House File 662, section 17 17 5, subsection 8, paragraphs a and b, if enacted, are 17 18 amended to read as follows: 17 19 a. Of the amount appropriated in thissection17 20 subsection, $347,371 shall be allocated to the public 17 21 broadcasting division for purposes of providing 17 22 support for functions related to the Iowa 17 23 communications network, including but not limited to 17 24 the following functions: development of distance 17 25 learning applications; development of a central 17 26 information source on the internet relating to 17 27 educational uses of the network; second-line technical 17 28 support for network sites; testing and initializing 17 29 sites onto the network; and coordinating the work of 17 30 the education telecommunications council. 17 31 b. Of the amount appropriated in thissection17 32 subsection, $1,272,285 shall be allocated to the 17 33 regional telecommunications councils established in 17 34 section 8D.5. The regional telecommunications 17 35 councils shall use the funds to provide technical 17 36 assistance for network classrooms, planning and 17 37 troubleshooting for local area networks, scheduling of 17 38 video sites, and other related support activities. 17 39 Sec. 45. 2003 Iowa Acts, House File 662, section 17 40 6, unnumbered paragraph 2, if enacted, is amended to 17 41 read as follows: 17 42 The funds allocated in thissubsectionsection 17 43 shall be distributed as follows: 17 44 Sec. 46. 2003 Iowa Acts, House File 662, section 17 45 18, if enacted, is repealed. 17 46 Sec. 47. EFFECTIVE AND APPLICABILITY DATES. 17 47 1. The section of this division of this Act 17 48 amending section 29A.28, subsection 3, being deemed of 17 49 immediate importance, takes effect upon enactment and 17 50 applies retroactively to January 1, 2003. 18 1 2. The section of this division of this Act 18 2 amending 2003 Iowa Acts, Senate File 458, section 159, 18 3 being deemed of immediate importance, takes effect 18 4 upon enactment. 18 5 3. 2003 Iowa Acts, Senate File 458, section 140, 18 6 relating to nonreversion of funds appropriated in 1996 18 7 Iowa Acts, chapter 1218, and 1997 Iowa Acts, chapter 18 8 215, if enacted, being deemed of immediate importance, 18 9 takes effect upon enactment of this Act. 18 10 DIVISION V 18 11 ALTERNATIVE FORMS OF LOCAL GOVERNMENT 18 12 Sec. 48. Section 331.234, subsections 3 and 4, 18 13 Code 2003, as amended by 2003 Iowa Acts, Senate File 18 14 390, section 4, if enacted, are amended to read as 18 15 follows: 18 16 3. The board shall make available to the 18 17 commission in-kind services such as office space, 18 18 printing, supplies, and equipment. The countyand 18 19 shall payfrom the segregated account established in18 20subsection 4,the other necessary expenses of the 18 21 commission including compensation for secretarial, 18 22 clerical, professional, and consultant services. The 18 23 total annual expenses, not including the value of in- 18 24 kind expenses, to be paid from public funds shall not 18 25 exceed one hundred thousand dollars or an amount equal 18 26 to thirty cents times the population of the commission 18 27 area, according to the most recent certified federal 18 28 census. The commission may employ staff as necessary. 18 29 4.TheExcept as otherwise provided in subsection 18 30 5, the expenses of the commissionshall be paid by18 31each city and county participating in the charter18 32process ormay be paid from the general fund of the 18 33 county. Expenses of the commission may also be paid 18 34 from any combination of public or private funds 18 35 available for that purpose.Each city's share shall18 36be its pro rata share of the expenses based upon the18 37ratio that the population of the city bears to the18 38total population in the county. The county's share18 39shall be its pro rata share of expenses based upon the18 40ratio that the population of the unincorporated area18 41of the county bears to the total population of the18 42county. The amount paid by each city and county18 43participating in the charter process shall be18 44deposited in a segregated account maintained by the18 45county.The commission's annual expenses may exceed 18 46 the amount in subsection 3 only if the excess is paid 18 47 from private funds. If a proposed charter is 18 48 submitted to the electorate, private funds donated to 18 49 the commission may be used to promote passage of the 18 50 proposed charter. 19 1 Sec. 49. Section 331.234, Code 2003, is amended by 19 2 adding the following new subsection: 19 3 NEW SUBSECTION. 5. In the case of a city-county 19 4 consolidation charter commission or a community 19 5 commonwealth charter commission, the expenses of the 19 6 commission shall be paid by each city and county 19 7 participating in the charter process pursuant to 19 8 section 331.233A. Each participating city's share 19 9 shall be its pro rata share of the expenses based upon 19 10 the ratio that the population of the city bears to the 19 11 total population in the county. The remainder shall 19 12 be paid from the general fund of the county. The 19 13 amount paid by each city and county participating in 19 14 the charter process shall be deposited in a segregated 19 15 account maintained by the county. 19 16 Sec. 50. Section 331.235, subsection 3, Code 2003, 19 17 as amended by 2003 Iowa Acts, Senate File 390, section 19 18 5, if enacted, is amended to read as follows: 19 19 3. Within twenty months after organization, the 19 20 commission shall submit the final report to the board. 19 21 If the commission is created pursuant to section 19 22 331.264, subsection 4, the commission shall submit the 19 23 final report to the board within five months after 19 24 submission of the preliminary report to the board 19 25 pursuant to section 331.264, subsection 3. A 19 26 commission created pursuant to section 331.264, 19 27 subsection 4, may adopt a motion granting itself a 19 28 sixty-day extension of time for submission of its 19 29 final report. If the commission recommends a charter 19 30 including a form of government other than the existing 19 31 form of government, the final report shall include the 19 32 full text and an explanation of the proposed charter, 19 33a statement of whether the elected officers shall be19 34elected on a partisan or nonpartisan basis,an 19 35 analysis of the fiscal impact of the proposed charter, 19 36 any comments deemed desirable by the commission, and 19 37 any minority reports. The final report may recommend 19 38 no change to the existing form of government and that 19 39 no charter be submitted to the electorate, in which 19 40 case, the report shall state the reasons for and 19 41 against a change in the existing form of government. 19 42 The final report shall be made available to the 19 43 residents of the county upon request. A summary of 19 44 the final report shall be published in the official 19 45 newspapers of the county and in a newspaper of general 19 46 circulation in each participating city. 19 47 Sec. 51. Section 331.238, subsection 4, if enacted 19 48 by 2003 Iowa Acts, Senate File 390, section 9, is 19 49 amended to read as follows: 19 50 4.Subsections 1 and 2 doThis section does not 20 1 apply to the city-county consolidated form of 20 2 government or the community commonwealth form of 20 3 government. 20 4 Sec. 52. Section 331.247, subsection 4, Code 2003, 20 5 as amended by 2003 Iowa Acts, Senate File 390, section 20 6 11, if enacted, is amended to read as follows: 20 7 4. If an alternative form of government for a 20 8 consolidated unit of local government is proposed, 20 9 approval of the consolidation charter shall be 20 10 separate from approval of the alternative form of 20 11 government in those cities proposed to be included in 20 12 the consolidation. The question of whether the 20 13 election of officers of the consolidated unit of local 20 14 government shall be with regard to political 20 15 affiliation shall be a separate question on the 20 16 ballot. Adoption of the consolidation charter 20 17 requires the approval of a majority of the votes cast 20 18 in the entire county. A city named on the ballot is 20 19 included in the consolidation if the proposed charter 20 20 is approved by a majority of the votes cast in the 20 21 city. The consolidation charter shall be effective in 20 22 regard to a city government only if a majority of the 20 23 voters of the city voting on the question voted for 20 24 participation in the consolidation charter. 20 25 Sec. 53. Section 331.248, subsection 2, paragraph 20 26 j, if enacted by 2003 Iowa Acts, Senate File 390, 20 27 section 13, is amended by striking the paragraph and 20 28 inserting in lieu thereof the following: 20 29 j. Provide for the effective date of the adopted 20 30 charter. 20 31 Sec. 54. Section 331.252, Code 2003, as amended by 20 32 2003 Iowa Acts, Senate File 390, section 18, if 20 33 enacted, is amended by adding the following new 20 34 unnumbered paragraph after unnumbered paragraph 2: 20 35 NEW UNNUMBERED PARAGRAPH. If the charter described 20 36 on this ballot is adopted, should officers of the new 20 37 government be elected with regard to political 20 38 affiliation? 20 39 Sec. 55. Section 331.254, subsection 7, Code 2003, 20 40 as amended by 2003 Iowa Acts, Senate File 390, section 20 41 19, if enacted, is amended to read as follows: 20 42 7. The merger of the elective offices of each 20 43 consolidating county with the election of new officers 20 44 within sixty days after the effective date of the 20 45 charterwhich shall specifically provide whether the20 46election of new officers shall be on a partisan or20 47nonpartisan basis, notwithstanding section 331.238,20 48subsection 3. The elections shall be conducted by the 20 49 county commissioner of elections of each county. No 20 50 primary election shall be held. Nominations shall be 21 1 made pursuant to section 43.78 and chapters 44 and 45, 21 2 as applicable, except that the filing deadline shall 21 3 be forty days before the election. 21 4 Sec. 56. Section 331.261, subsection 11, Code 21 5 2003, as amended by 2003 Iowa Acts, Senate File 390, 21 6 section 22, if enacted, is amended by striking the 21 7 subsection and inserting in lieu thereof the 21 8 following: 21 9 11. The effective date of the adopted charter. 21 10 Sec. 57. Section 331.264, subsection 4, if enacted 21 11 by 2003 Iowa Acts, Senate File 390, section 25, is 21 12 amended to read as follows: 21 13 4. If the committee report recommends a city- 21 14 county consolidation or community commonwealth, the 21 15 committee shall continue its existence and be 21 16 designated, and operate with the powers and duties of, 21 17 a commission created pursuant to section 331.233A. If 21 18 the committee report recommends a multicounty 21 19 consolidation, the committee shall continue its 21 20 existence and be designated, and operate with the 21 21 powers and duties of, a commission created pursuant to 21 22 section 331.233.If the committee recommends an21 23alternative form of government, that recommendation21 24shall state whether elections conducted under that21 25form of government shall be partisan or nonpartisan.21 26 Sec. 58. EFFECTIVE AND APPLICABILITY DATES. This 21 27 division of this Act, being deemed of immediate 21 28 importance, takes effect upon enactment and applies to 21 29 charter commissions in existence on that date. 21 30 DIVISION VI 21 31 CRIMINAL OFFENDERS AND INMATES 21 32 Sec. 59. Section 321J.2, subsection 2, paragraph 21 33 a, subparagraph (1), Code 2003, is amended to read as 21 34 follows: 21 35 (1) Imprisonment in the county jail for not less 21 36 than forty-eight hours, to be served as ordered by the 21 37 court, less credit for any time the person was 21 38 confined in a jail or detention facility following 21 39 arrest or for any time the person spent in a court- 21 40 ordered operating-while-intoxicated program that 21 41 provides law enforcement security. However, the 21 42 court, in ordering service of the sentence and in its 21 43 discretion, may accommodate the defendant's work 21 44 schedule. 21 45 Sec. 60. NEW SECTION. 811.2A PRETRIAL RELEASE. 21 46 A person, who has been released under a plan of 21 47 pretrial release or on the person's own recognizance 21 48 and who is subsequently arrested for a new criminal 21 49 offense while under the plan of pretrial release or 21 50 released on the person's own recognizance, shall not 22 1 be eligible for another release pursuant to pretrial 22 2 release guidelines or released on the person's own 22 3 recognizance, if all of the following apply: 22 4 1. The arrest for the new criminal offense is 22 5 based on a set of facts or an event that is different 22 6 than involved in the earlier arrest. 22 7 2. The new criminal offense is classified as 22 8 greater than a serious misdemeanor. 22 9 However, a person may be admitted to bail if 22 10 eligible pursuant to section 811.1. 22 11 Sec. 61. Section 901.4, Code 2003, is amended to 22 12 read as follows: 22 13 901.4 PRESENTENCE INVESTIGATION REPORT 22 14 CONFIDENTIAL – DISTRIBUTION. 22 15 The presentence investigation report is 22 16 confidential and the court shall provide safeguards to 22 17 ensure its confidentiality, including but not limited 22 18 to sealing the report, which may be opened only by 22 19 further court order. At least three days prior to the 22 20 date set for sentencing, the court shall serve all of 22 21 the presentence investigation report upon the 22 22 defendant's attorney and the attorney for the state, 22 23 and the report shall remain confidential except upon 22 24 court order. However, the court may conceal the 22 25 identity of the person who provided confidential 22 26 information. The report of a medical examination or 22 27 psychological or psychiatric evaluation shall be made 22 28 available to the attorney for the state and to the 22 29 defendant upon request. The reports are part of the 22 30 record but shall be sealed and opened only on order of 22 31 the court. If the defendant is committed to the 22 32 custody of the Iowa department of corrections and is 22 33 not a class "A" felon, a copy of the presentence 22 34 investigation report shall be forwarded to the 22 35 director with the order of commitment by the clerk of 22 36 the district court and to the board of parole at the 22 37 time of commitment.ThePursuant to section 904.602, 22 38 the presentence investigation report may also be 22 39 released by the department of corrections or a 22 40 judicial district department of correctional services 22 41pursuant to section 904.602to another jurisdiction 22 42 for the purpose of providing interstate probation and 22 43 parole compact services or evaluations, or to a 22 44 substance abuse or mental health services provider 22 45 when referring a defendant for services. The 22 46 defendant or the defendant's attorney may file with 22 47 the presentence investigation report, a denial or 22 48 refutation of the allegations, or both, contained in 22 49 the report. The denial or refutation shall be 22 50 included in the report. If the person is sentenced 23 1 for an offense which requires registration under 23 2 chapter 692A, the court shall release the report to 23 3 the department which is responsible under section 23 4 692A.13A for performing the assessment of risk. 23 5 Sec. 62. Section 901B.1, subsection 1, paragraph 23 6 c, subparagraph (5), Code 2003, is amended to read as 23 7 follows: 23 8 (5) A substance abuse treatment facility as 23 9 established and operated by the Iowa department of 23 10 public health or the department of corrections. 23 11 Sec. 63. Section 903A.2, subsection 1, paragraph 23 12 a, Code 2003, is amended to read as follows: 23 13 a. Category "A" sentences are those sentences 23 14 which are not subject to a maximum accumulation of 23 15 earned time of fifteen percent of the total sentence 23 16 of confinement under section 902.12. To the extent 23 17 provided in subsection 5, category "A" sentences also 23 18 include life sentences imposed under section 902.1. 23 19 An inmate of an institution under the control of the 23 20 department of corrections who is serving a category 23 21 "A" sentence is eligible for a reduction of sentence 23 22 equal to one and two-tenths days for each day the 23 23 inmate demonstrates good conduct and satisfactorily 23 24 participates in any program or placement status 23 25 identified by the director to earn the reduction. The 23 26 programs include but are not limited to the following: 23 27 (1) Employment in the institution. 23 28 (2) Iowa state industries. 23 29 (3) An employment program established by the 23 30 director. 23 31 (4) A treatment program established by the 23 32 director. 23 33 (5) An inmate educational program approved by the 23 34 director. 23 35 An inmate serving a category "A" sentence is 23 36 eligible for an additional reduction of sentence of up 23 37 to three hundred sixty-five days of the full term of 23 38 the sentence of the inmate for exemplary acts. In 23 39 accordance with section 903A.4, the director shall by 23 40 policy identify what constitutes an exemplary act that 23 41 may warrant an additional reduction of sentence. 23 42 Sec. 64. Section 903A.3, subsection 2, Code 2003, 23 43 is amended to read as follows: 23 44 2. The orders of the administrative law judge are 23 45 subject to appeal to the superintendent or warden of 23 46 the institution, or the superintendent's or warden's 23 47 designee, who may either affirm, modify, remand for 23 48 correction of procedural errors, or reverse an order. 23 49 However, sanctions shall not be increased on appeal. 23 50A decision of the superintendent, warden, or designee24 1is subject to review by the director of the Iowa24 2department of corrections who may either affirm,24 3modify, remand for correction of procedural errors, or24 4reverse the decision. However, sanctions shall not be24 5increased on review.24 6 Sec. 65. NEW SECTION. 904.117 INTERSTATE COMPACT 24 7 FUND. 24 8 An interstate compact fund is established under the 24 9 control of the department. All interstate compact 24 10 fees collected by the department pursuant to section 24 11 907B.5 shall be deposited into the fund and the moneys 24 12 shall be used by the department to offset the costs of 24 13 complying with the interstate compact for adult 24 14 offender supervision in chapter 907B. Notwithstanding 24 15 section 8.33, moneys remaining in the fund at the end 24 16 of a fiscal year shall not revert to the general fund 24 17 of the state. Notwithstanding section 12C.7, interest 24 18 and earnings deposited in the fund shall be credited 24 19 to the fund. 24 20 Sec. 66. Section 904.503, subsection 2, Code 2003, 24 21 is amended to read as follows: 24 22 2. When the director has cause to believe that an 24 23 inmate in a state correctional institution is mentally 24 24 ill, the Iowa department of corrections may cause the 24 25 inmate to be transferred to the Iowa medical and 24 26 classification center, or to another appropriate 24 27 facility within the department, for examination, 24 28 diagnosis, or treatment. The inmate shall be confined 24 29 at thatinstitutioncenter or facility or a state 24 30 hospital for persons with mental illness until the 24 31 expiration of the inmate's sentence or until the 24 32 inmate is pronounced in good mental health. If the 24 33 inmate is pronounced in good mental health before the 24 34 expiration of the inmate's sentence, the inmate shall 24 35 be returned to the state correctional institution 24 36 until the expiration of the inmate's sentence. 24 37 Sec. 67. Section 904.508, subsection 2, Code 2003, 24 38 is amended to read as follows: 24 39 2.ThePursuant to section 904.702, the director 24 40 shall establish and maintain an inmate savings fund in 24 41 an interest-bearing account for the deposit of all or 24 42 part of an inmate's allowances, as provided in section24 43904.702and amounts, except amounts directed to be 24 44 deposited in the inmate telephone fund established in 24 45 section 904.508A, sent to the inmate from a source 24 46 other than the department. All or part of an inmate's 24 47 allowances and amounts, except amounts directed to be 24 48 deposited in the inmate telephone fund established in 24 49 section 904.508A, from a source other than the 24 50 department shall be deposited into the savings fund, 25 1 until the inmate's deposit is equal tothe amount due25 2the inmate upon discharge, parole, or placement on25 3work release,one hundred dollars as provided in 25 4 section 906.9. If an inmate's deposits are equalthis25 5amountto or in excess of one hundred dollars, the 25 6 inmate may voluntarily withdraw from the savings fund. 25 7 The director shall notify the inmate of this right to 25 8 withdraw and shall provide the inmate with a written 25 9 request form to facilitate the withdrawal. If the 25 10 inmate withdraws and the inmate's deposits exceed the 25 11 amount due as provided in section 906.9, the director 25 12 shall disburse the excess amount as provided for 25 13 allowances under section 904.702, except the director 25 14 shall not deposit the excess amount in the inmate 25 15 savings fund. If the inmate chooses to continue to 25 16 participate in the savings fund, the inmate's deposits 25 17 shall be returned to the inmate upon discharge, 25 18 parole, or placement on work release. Otherwise, the 25 19 inmate's deposits shall be disposed of as provided in 25 20 subsection 3. An inmate's deposits into the savings 25 21 fund may be used to provide the money due the inmate 25 22 upon discharge, parole, or placement on work release, 25 23 as required under section 906.9. Interest earned from 25 24 the savings fund shall be placed in a separate 25 25 account, and may be used for purchases approved by the 25 26 director to directly and collectively benefit inmates. 25 27 Sec. 68. Section 904.508A, Code 2003, is amended 25 28 to read as follows: 25 29 904.508A INMATE TELEPHONEREBATEFUND. 25 30 The department is authorized to establish and 25 31 maintain an inmate telephonerebatefundin each25 32institutionfor the deposit of moneys received for 25 33 inmate telephonerebatescalls. All funds deposited 25 34 in this fund shall be used for the benefit of inmates. 25 35 The director shall adopt rules providing for the 25 36 disbursement of moneys from the fund. 25 37 Sec. 69. Section 904.513, subsection 1, paragraph 25 38 b, subparagraph (4), Code 2003, is amended to read as 25 39 follows: 25 40 (4) Assignment may also be made on the basis of 25 41 the offender's treatment program performance, as a 25 42 disciplinary measure, for medical needs, and for space 25 43 availability at community residential facilities. If 25 44 there is insufficient space at a community residential 25 45 facility, the court may order an offender to be 25 46 released to the supervision of the judicial district 25 47 department of correctional services,orheld in jail, 25 48 or committed to the custody of the director of the 25 49 department of corrections for assignment to an 25 50 appropriate correctional facility until there is 26 1 sufficient space at a community residential facility. 26 2 Sec. 70. Section 904.702, unnumbered paragraph 1, 26 3 Code 2003, is amended to read as follows: 26 4 If allowances are paid pursuant to section 904.701, 26 5 the director shall establish an inmate account, for 26 6 deposit of those allowances and for deposit of moneys 26 7 sent to the inmate from a source other than the 26 8 department of corrections. The director may deduct an 26 9 amount, not to exceed ten percent of the amount of the 26 10 allowance, unless the inmate requests a larger amount, 26 11 to be deposited into the inmate savings fund as 26 12 required under section 904.508, subsection 2. In 26 13 addition to deducting a portion of the allowance, the 26 14 director may also deduct from an inmate account any 26 15 amount, except amounts directed to be deposited in the 26 16 inmate telephone fund established in section 904.508A, 26 17 sent to the inmate from a source other than the 26 18 department of corrections for deposit in the inmate 26 19 savings fund as required under section 904.508, 26 20 subsection 2, until the amount in the fund equals the 26 21 amount due the inmate upon discharge, parole, or 26 22 placement on work release. The director shall deduct 26 23 from the inmate account an amount established by the 26 24 inmate's restitution plan of payment. The director 26 25 shall also deduct from any remaining account balance 26 26 an amount sufficient to pay all or part of any 26 27 judgment against the inmate, including but not limited 26 28 to judgments for taxes and child support, and court 26 29 costs and fees assessed either as a result of the 26 30 inmate's confinement or amounts required to be paid 26 31 under section 610A.1. Written notice of the amount of 26 32 the deduction shall be given to the inmate, who shall 26 33 have five days after receipt of the notice to submit 26 34 in writing any and all objections to the deduction to 26 35 the director, who shall consider the objections prior 26 36 to transmitting the deducted amount to the clerk of 26 37 the district court. The director need give only one 26 38 notice for each action or appeal under section 610A.1 26 39 for which periodic deductions are to be made. The 26 40 director shall next deduct from any remaining account 26 41 balance an amount sufficient to pay all or part of any 26 42 costs assessed against the inmate for misconduct or 26 43 damage to the property of others. The director may 26 44 deduct from the inmate's account an amount sufficient 26 45 to pay for the inmate's share of the costs of health 26 46 services requested by the inmate and for the treatment 26 47 of injuries inflicted by the inmate on the inmate or 26 48 others. The director may deduct and disburse an 26 49 amount sufficient for industries' programs to qualify 26 50 under the eligibility requirements established in the 27 1 Justice Assistance Act of 1984, Pub. L. No. 98-473, 27 2 including an amount to pay all or part of the cost of 27 3 the inmate's incarceration. The director may pay all 27 4 or any part of remaining allowances paid pursuant to 27 5 section 904.701 directly to a dependent of the inmate, 27 6 or may deposit the allowance to the account of the 27 7 inmate, or may deposit a portion and allow the inmate 27 8 a portion for the inmate's personal use. 27 9 Sec. 71. Section 907.4, Code 2003, is amended to 27 10 read as follows: 27 11 907.4 DEFERRED JUDGMENT DOCKET. 27 12 A deferment of judgment under section 907.3 shall 27 13 be reported promptly by the clerk of the district 27 14 court, or the clerk's designee, to the state court 27 15 administrator for entry in the deferred judgment 27 16 docket. The docket shall contain a permanent record 27 17 of the deferred judgment including the name and date 27 18 of birth of the defendant, the district court docket 27 19 number, the nature of the offense, and the date of the 27 20 deferred judgment. Before granting deferred judgment 27 21 in any case, the court shall request of the state 27 22 court administrator a search of the deferred judgment 27 23 docket and shall consider any prior record of a 27 24 deferred judgment against the defendant. The 27 25 permanent record provided for in this section is a 27 26 confidential record exempted from public access under 27 27 section 22.7 and shall be available only to justices 27 28 of the supreme court, judges of the court of appeals, 27 29 district judges, district associate judges, judicial 27 30 magistrates, clerks of the district court, judicial 27 31 district departments of correctional services, and 27 32 county attorneys requesting information pursuant to 27 33 this section, or the designee of a justice, judge, 27 34 magistrate, clerk, judicial district department of 27 35 correctional services, or county attorney. 27 36 Sec. 72. Section 907.9, subsections 1, 2, and 4, 27 37 Code 2003, are amended to read as follows: 27 38 1. At any time that the court determines that the 27 39 purposes of probation have been fulfilled and the fees 27 40 imposed under section 905.14 have been paidto or27 41waived by the judicial district department of27 42correctional servicesor on condition that unpaid 27 43 supervision fees be paid, the court may order the 27 44 discharge of a person from probation. 27 45 2. At any time that a probation officer determines 27 46 that the purposes of probation have been fulfilled and 27 47 the fees imposed under section 905.14 have been paid 27 48to or waived by the judicial district department of27 49correctional servicesor on condition that unpaid 27 50 supervision fees be paid, the officer may order the 28 1 discharge of a person from probation after approval of 28 2 the district director and notification of the 28 3 sentencing court and the county attorney who 28 4 prosecuted the case. 28 5 4. At the expiration of the period of probation 28 6 and if the fees imposed under section 905.14 have been 28 7 paidto or waived by the judicial district department28 8of correctional servicesor on condition that unpaid 28 9 supervision fees be paid, the court shall order the 28 10 discharge of the person from probation, and the court 28 11 shall forward to the governor a recommendation for or 28 12 against restoration of citizenship rights to that 28 13 person. A person who has been discharged from 28 14 probation shall no longer be held to answer for the 28 15 person's offense. Upon discharge from probation, if 28 16 judgment has been deferred under section 907.3, the 28 17 court's criminal record with reference to the deferred 28 18 judgment shall be expunged. The record maintained by 28 19 the state court administrator as required by section 28 20 907.4 shall not be expunged. The court's record shall 28 21 not be expunged in any other circumstances. 28 22 Sec. 73. NEW SECTION. 907B.4 INTERSTATE COMPACT 28 23 FEE. 28 24 The department of corrections may assess a fee, not 28 25 to exceed one hundred dollars, for an application to 28 26 transfer out of the state under the interstate compact 28 27 for adult offender supervision. The fee may be waived 28 28 by the department. The moneys collected pursuant to 28 29 this section shall be deposited into the interstate 28 30 compact fund established in section 904.117 and shall 28 31 be used to offset the costs of complying with the 28 32 interstate compact for adult offender supervision. 28 33 Sec. 74. Section 910.3B, Code 2003, is amended to 28 34 read as follows: 28 35 910.3B RESTITUTION FOR DEATH OF VICTIM. 28 36 1. In all criminal cases in which the offender is 28 37 convicted of a felony in which the act or acts 28 38 committed by the offender caused the death of another 28 39 person, in addition to the amount determined to be 28 40 payable and ordered to be paid to a victim for 28 41 pecuniary damages, as defined under section 910.1, and 28 42 determined under section 910.3, the court shall also 28 43 order the offender to pay at least one hundred fifty 28 44 thousand dollars in restitution to the victim's estate 28 45 if the victim died testate. If the victim died 28 46 intestate the court shall order the offender to pay 28 47 the restitution to the victim's heirs at law as 28 48 determined pursuant to section 633.210. The 28 49 obligation to pay the additional amount shall not be 28 50 dischargeable in any proceeding under the federal 29 1 Bankruptcy Act. Payment of the additional amount 29 2 shall have the same priority as payment of a victim's 29 3 pecuniary damages under section 910.2, in the 29 4 offender's plan for restitution. 29 5 2. An award under this section does not preclude 29 6 or supersede the right of a victim's estate or heirs 29 7 at law to bring a civil action against the offender 29 8 for damages arising out of the same facts or event. 29 9 However, no evidence relating to the entry of the 29 10 judgment against the offender pursuant to this section 29 11 or the amount of the award ordered pursuant to this 29 12 section shall be permitted to be introduced in any 29 13 civil action for damages arising out of the same facts 29 14 or event. 29 15 3. An offender who is ordered to pay a victim's 29 16 estate or heirs at law under this section is precluded 29 17 from denying the elements of the felony offense which 29 18 resulted in the order for payment in any subsequent 29 19 civil action for damages arising out of the same facts 29 20 or event. 29 21 Sec. 75. Section 915.100, subsection 2, paragraph 29 22 c, Code 2003, is amended to read as follows: 29 23 c. In cases where the act committed by an offender 29 24 causes the death of another person, in addition to the 29 25 amount ordered for payment of the victim's pecuniary 29 26 damages, the court shall also order the offender to 29 27 pay at least one hundred fifty thousand dollars in 29 28 restitution to the victim's estate or heirs at law, 29 29 pursuant to the provisions of section 910.3B. 29 30 DIVISION VII 29 31 ECONOMIC DEVELOPMENT APPROPRIATIONS 29 32 Sec. 76. MARKETING APPROPRIATION. 29 33 1. There is appropriated from the grow Iowa fund 29 34 created in section 15G.107, if enacted by 2003 Iowa 29 35 Acts, House File 692 or another Act, to the department 29 36 of economic development, for the fiscal period 29 37 beginning July 1, 2004, and ending June 30, 2010, the 29 38 following amounts, or so much thereof as is necessary, 29 39 to be used for the purpose designated: 29 40 For implementing and administering the marketing 29 41 strategy approved under section 15G.108, if enacted by 29 42 2003 Iowa Acts, House File 692 or another Act: 29 43 FY 2004-2005..................................... $ 10,000,000 29 44 FY 2005-2006..................................... $ 10,000,000 29 45 FY 2006-2007..................................... $ 5,000,000 29 46 FY 2007-2008..................................... $ 5,000,000 29 47 FY 2008-2009..................................... $ 5,000,000 29 48 FY 2009-2010..................................... $ 2,500,000 29 49 2. Notwithstanding section 8.33, moneys that 29 50 remain unexpended at the end of a fiscal year shall 30 1 not revert to any fund but shall remain available for 30 2 expenditure for the designated purposes during the 30 3 succeeding fiscal year. 30 4 Sec. 77. DEPARTMENT OF ECONOMIC DEVELOPMENT 30 5 APPROPRIATION. 30 6 1. There is appropriated from the grow Iowa fund 30 7 created in section 15G.107, if enacted by 2003 Iowa 30 8 Acts, House File 692 or another Act, to the department 30 9 of economic development for the fiscal period 30 10 beginning July 1, 2003, and ending June 30, 2010, the 30 11 following amounts, or so much thereof as is necessary, 30 12 to be used for the purpose designated: 30 13 For programs administered by the department of 30 14 economic development: 30 15 FY 2003-2004...................................... $ 41,575,000 30 16 FY 2004-2005...................................... $ 31,575,000 30 17 FY 2005-2006...................................... $ 35,000,000 30 18 FY 2006-2007...................................... $ 32,500,000 30 19 FY 2007-2008...................................... $ 30,500,000 30 20 FY 2008-2009...................................... $ 13,500,000 30 21 FY 2009-2010...................................... $ 13,500,000 30 22 2. Notwithstanding section 8.33, moneys that 30 23 remain unexpended at the end of a fiscal year shall 30 24 not revert to any fund but shall remain available for 30 25 expenditure for the designated purposes during the 30 26 succeeding fiscal year. 30 27 3. Each year that moneys are appropriated under 30 28 this section, the grow Iowa board shall allocate a 30 29 percentage of the moneys for each of the following 30 30 types of activities: 30 31 a. Business start-ups. 30 32 b. Business expansion. 30 33 c. Business modernization. 30 34 d. Business attraction. 30 35 e. Business retention. 30 36 f. Marketing. 30 37 4. An applicant for moneys appropriated under this 30 38 section shall be required by the department to include 30 39 in the application a statement regarding the intended 30 40 return on investment. A recipient of moneys 30 41 appropriated under this section shall annually submit 30 42 a statement to the department regarding the progress 30 43 achieved on the intended return on investment stated 30 44 in the application. The department, in cooperation 30 45 with the department of revenue and finance, shall 30 46 develop a method of identifying and tracking each new 30 47 job created through financial assistance from moneys 30 48 appropriated under this section. 30 49 5. The department may use moneys appropriated 30 50 under this section to procure technical assistance 31 1 from either the public or private sector, for 31 2 information technology purposes, and for rail, air, or 31 3 river port transportation-related purposes. The use 31 4 of moneys appropriated for rail, air, or river port 31 5 transportation-related purposes must be directly 31 6 related to an economic development project and the 31 7 moneys must be used to leverage other financial 31 8 assistance moneys. 31 9 6. Of the moneys appropriated under this section, 31 10 the department may use one-quarter of one percent for 31 11 administrative purposes. 31 12 7. The grow Iowa board is required to approve or 31 13 deny applications for financial assistance from moneys 31 14 appropriated under this section. 31 15 Sec. 78. UNIVERSITY AND COLLEGE FINANCIAL 31 16 ASSISTANCE APPROPRIATION. 31 17 1. There is appropriated from the grow Iowa fund 31 18 created in section 15G.107, if enacted by 2003 Iowa 31 19 Acts, House File 692 or another Act, to the grow Iowa 31 20 board for the fiscal period beginning July 1, 2003, 31 21 and ending June 30, 2010, the following amounts, or so 31 22 much thereof as is necessary, to be used for the 31 23 purposes designated: 31 24 For financial assistance for institutions of higher 31 25 learning under the control of the state board of 31 26 regents and for accredited private institutions as 31 27 defined in section 261.9 for multiuse, goods 31 28 manufacturing processes approved by the food and drug 31 29 administration of the United States department of 31 30 health and human services, protein purification 31 31 facilities for plant, animal, and chemical 31 32 manufactured proteins; upgrading food and drug 31 33 administration drug approval laboratories in Iowa City 31 34 to a larger multiclient, goods manufacturing processes 31 35 facility; crop and animal livestock facilities for the 31 36 growing of transgenic crops and livestock; and 31 37 advanced laboratory space: 31 38 FY 2003-2004...................................... $ 5,325,000 31 39 FY 2004-2005...................................... $ 5,325,000 31 40 FY 2005-2006...................................... $ 5,325,000 31 41 FY 2006-2007...................................... $ 5,325,000 31 42 FY 2007-2008...................................... $ 5,325,000 31 43 FY 2008-2009...................................... $ 5,325,000 31 44 FY 2009-2010...................................... $ 5,325,000 31 45 2. Notwithstanding section 8.33, moneys that 31 46 remain unexpended at the end of a fiscal year shall 31 47 not revert to any fund but shall remain available for 31 48 expenditure for the designated purposes during the 31 49 succeeding fiscal year. 31 50 3. In the distribution of moneys appropriated 32 1 pursuant to this section, the grow Iowa board shall 32 2 examine the potential for using moneys appropriated 32 3 pursuant to this section to leverage other moneys for 32 4 financial assistance to accredited private 32 5 institutions. 32 6 4. In awarding moneys appropriated pursuant to 32 7 this section, the grow Iowa board shall consider 32 8 whether the purchase of suitable existing 32 9 infrastructure is more cost-efficient than building 32 10 new infrastructure. 32 11 5. An institution of higher learning under the 32 12 control of the state board of regents may apply to use 32 13 financial assistance moneys under this section for 32 14 purposes of a public and private joint venture to 32 15 acquire infrastructure assets or research facilities 32 16 or to leverage moneys in a manner consistent with 32 17 meeting the goals and performance measures provided in 32 18 section 15G.106, if enacted by 2003 Iowa Acts, House 32 19 File 692 or another Act. 32 20 Sec. 79. REHABILITATION PROJECT TAX CREDITS 32 21 APPROPRIATION. 32 22 1. There is appropriated from the grow Iowa fund 32 23 created in section 15G.107, if enacted by 2003 Iowa 32 24 Acts, House File 692 or another Act, to the general 32 25 fund of the state, for the fiscal period beginning 32 26 July 1, 2003, and ending June 30, 2010, the following 32 27 amounts, or so much thereof as is necessary, to be 32 28 used for the purpose designated: 32 29 For payment of tax credits approved pursuant to 32 30 section 404A.4 for projects located in certified 32 31 cultural and entertainment districts: 32 32 FY 2003-2004...................................... $ 700,000 32 33 FY 2004-2005...................................... $ 700,000 32 34 FY 2005-2006...................................... $ 700,000 32 35 FY 2006-2007...................................... $ 700,000 32 36 FY 2007-2008...................................... $ 700,000 32 37 FY 2008-2009...................................... $ 700,000 32 38 FY 2009-2010...................................... $ 700,000 32 39 2. Notwithstanding section 8.33, moneys that 32 40 remain unexpended at the end of a fiscal year shall 32 41 not revert to any fund but shall remain available for 32 42 expenditure for the designated purposes during the 32 43 succeeding fiscal year. 32 44 Sec. 80. LOAN AND CREDIT GUARANTEE FUND 32 45 APPROPRIATION. 32 46 1. There is appropriated from the grow Iowa fund 32 47 created in section 15G.107, if enacted by 2003 Iowa 32 48 Acts, House File 692 or another Act, to the department 32 49 of economic development for the fiscal period 32 50 beginning July 1, 2003, and ending June 30, 2010, the 33 1 following amounts, or so much thereof as is necessary, 33 2 to be used for the purpose designated: 33 3 For deposit in the loan and credit guarantee fund 33 4 created in section 15E.227: 33 5 FY 2003-2004...................................... $ 2,500,000 33 6 FY 2004-2005...................................... $ 7,500,000 33 7 FY 2005-2006...................................... $ 8,575,000 33 8 FY 2006-2007...................................... $ 11,075,000 33 9 FY 2007-2008...................................... $ 13,075,000 33 10 FY 2008-2009...................................... $ 35,075,000 33 11 FY 2009-2010...................................... $ 37,575,000 33 12 2. Notwithstanding section 8.33, moneys that 33 13 remain unexpended at the end of a fiscal year shall 33 14 not revert to any fund but shall remain available for 33 15 expenditure for the designated purpose during the 33 16 succeeding fiscal year. 33 17 Sec. 81. ENDOW IOWA TAX CREDITS. 33 18 1. There is appropriated from the grow Iowa fund 33 19 created in section 15G.107, if enacted by 2003 Iowa 33 20 Acts, House File 692 or another Act, to the general 33 21 fund of the state, for the fiscal period beginning 33 22 July 1, 2003, and ending June 30, 2010, the following 33 23 amounts, or so much thereof as is necessary, to be 33 24 used for the purpose designated: 33 25 For payment of endow Iowa tax credits authorized 33 26 pursuant to section 15E.305: 33 27 FY 2003-2004...................................... $ 200,000 33 28 FY 2004-2005...................................... $ 200,000 33 29 FY 2005-2006...................................... $ 200,000 33 30 FY 2006-2007...................................... $ 200,000 33 31 FY 2007-2008...................................... $ 200,000 33 32 FY 2008-2009...................................... $ 200,000 33 33 FY 2009-2010...................................... $ 200,000 33 34 2. Notwithstanding section 8.33, moneys that 33 35 remain unexpended at the end of a fiscal year shall 33 36 not revert to any fund but shall remain available for 33 37 expenditure for the designated purposes during the 33 38 succeeding fiscal year. 33 39 Sec. 82. ENDOW IOWA GRANTS APPROPRIATION. 33 40 1. There is appropriated from the grow Iowa fund 33 41 created in section 15G.107, if enacted by 2003 Iowa 33 42 Acts, House File 692 or another Act, to the department 33 43 of economic development for the fiscal period 33 44 beginning July 1, 2003, and ending June 30, 2010, the 33 45 following amounts, or so much thereof as is necessary, 33 46 to be used for the purpose designated: 33 47 For endow Iowa grants to lead philanthropic 33 48 entities pursuant to section 15E.304: 33 49 FY 2003-2004...................................... $ 200,000 33 50 FY 2004-2005...................................... $ 200,000 34 1 FY 2005-2006...................................... $ 200,000 34 2 FY 2006-2007...................................... $ 200,000 34 3 FY 2007-2008...................................... $ 200,000 34 4 FY 2008-2009...................................... $ 200,000 34 5 FY 2009-2010...................................... $ 200,000 34 6 2. Notwithstanding section 8.33, moneys that 34 7 remain unexpended at the end of a fiscal year shall 34 8 not revert to any fund but shall remain available for 34 9 expenditure for the designated purposes during the 34 10 succeeding fiscal year. 34 11 Sec. 83. ANTICIPATED FEDERAL MONEYS – 34 12 APPROPRIATION. 34 13 1. There is appropriated from the fund created by 34 14 section 8.41, for the fiscal period beginning July 1, 34 15 2003, and ending June 30, 2005, the following amounts 34 16 to be used for the purpose designated: 34 17 For deposit in the grow Iowa fund created in 34 18 section 15G.107, if enacted by 2003 Iowa Acts, House 34 19 File 692 or another Act: 34 20 FY 2003-2004...................................... $ 59,000,000 34 21 FY 2004-2005...................................... $ 41,000,000 34 22 2. Moneys appropriated in this section are moneys 34 23 anticipated to be received from the federal government 34 24 for state and local government fiscal relief under the 34 25 federal Jobs and Growth Tax Relief Reconciliation Act 34 26 of 2003 and shall be expended as provided in the 34 27 federal law making the moneys available and in 34 28 conformance with chapter 17A. 34 29 3. Notwithstanding section 8.33, moneys that 34 30 remain unexpended at the end of a fiscal year shall 34 31 not revert to any fund but shall remain available for 34 32 expenditure for the designated purposes during the 34 33 succeeding fiscal year. 34 34 Sec. 84. STREAMLINED SALES AND USE TAX REVENUE – 34 35 APPROPRIATION. 34 36 1. There is appropriated from the general fund of 34 37 the state from moneys credited to the general fund of 34 38 the state as a result of entering into the streamlined 34 39 sales and use tax agreement, for the fiscal period 34 40 beginning July 1, 2003, and ending June 30, 2010, the 34 41 following amounts to be used for the purpose 34 42 designated: 34 43 For deposit in the grow Iowa fund created in 34 44 section 15G.107, if enacted by 2003 Iowa Acts, House 34 45 File 692 or another Act: 34 46 FY 2003-2004...................................... $ 5,000,000 34 47 FY 2004-2005...................................... $ 23,000,000 34 48 FY 2005-2006...................................... $ 75,000,000 34 49 FY 2006-2007...................................... $ 75,000,000 34 50 FY 2007-2008...................................... $ 75,000,000 35 1 FY 2008-2009...................................... $ 75,000,000 35 2 FY 2009-2010...................................... $ 75,000,000 35 3 2. For purposes of this section, "moneys credited 35 4 to the general fund of the state as a result of 35 5 entering into the streamlined sales and use tax 35 6 agreement" means the amount of sales and use tax 35 7 receipts credited to the general fund of the state 35 8 during a fiscal year that exceeds by two percent or 35 9 more the total sales and use tax receipts credited to 35 10 the general fund of the state during the previous 35 11 fiscal year. 35 12 3. If the moneys credited to the general fund of 35 13 the state as a result of entering into the streamlined 35 14 sales and use tax agreement during a fiscal year total 35 15 less than the amount appropriated in this section, the 35 16 appropriation in this section shall be reduced to 35 17 equal the total amount of the moneys so credited. 35 18 4. Notwithstanding section 8.33, moneys that 35 19 remain unexpended at the end of a fiscal year shall 35 20 not revert to any fund but shall remain available for 35 21 expenditure for the designated purposes during the 35 22 succeeding fiscal year. 35 23 DIVISION VIII 35 24 WORKFORCE-RELATED ISSUES 35 25 Sec. 85. NEW SECTION. 260C.18A WORKFORCE 35 26 TRAINING AND ECONOMIC DEVELOPMENT FUNDS. 35 27 1. a. A workforce training and economic 35 28 development fund is created for each community 35 29 college. Moneys shall be deposited and expended from 35 30 a fund as provided under this section. 35 31 b. Moneys in the funds shall consist of any moneys 35 32 appropriated by the general assembly and any other 35 33 moneys available to and obtained or accepted by the 35 34 department of economic development from federal 35 35 sources or private sources for placement in the funds. 35 36 Notwithstanding section 8.33, moneys in the funds at 35 37 the end of each fiscal year shall not revert to any 35 38 other fund but shall remain in the funds for 35 39 expenditure in subsequent fiscal years. 35 40 2. On July 1 of each year for the fiscal year 35 41 beginning July 1, 2003, and for every fiscal year 35 42 thereafter, moneys from the grow Iowa fund created in 35 43 section 15G.107, if enacted by 2003 Iowa Acts, House 35 44 File 692 or another Act, are appropriated to the 35 45 department of economic development for deposit in the 35 46 workforce training and economic development funds in 35 47 amounts determined pursuant to subsection 3. Moneys 35 48 deposited in the funds and disbursed to community 35 49 colleges for a fiscal year shall be expended for the 35 50 following purposes: 36 1 a. Projects in which an agreement between a 36 2 community college and an employer located within the 36 3 community college's merged area meet all of the 36 4 requirements of the accelerated career education 36 5 program under chapter 260G. However, moneys used by 36 6 the community colleges from the workforce training and 36 7 economic development fund for these projects shall be 36 8 in lieu of the program job credits provided under 36 9 chapter 260G. Projects using moneys from the 36 10 workforce training and economic development fund under 36 11 this paragraph shall be in accordance with rules 36 12 adopted by the department of economic development 36 13 under chapter 260G. 36 14 b. Projects in which an agreement between a 36 15 community college and a business meet all the 36 16 requirements of the Iowa jobs training Act under 36 17 chapter 260F. However, when moneys are provided 36 18 through the grow Iowa fund for such projects, section 36 19 260F.6, subsections 1 and 2, and section 260F.8 shall 36 20 not apply. Projects using moneys from the workforce 36 21 training and economic development fund under this 36 22 paragraph shall be in accordance with rules adopted by 36 23 the department of economic development under chapter 36 24 260F. 36 25 c. For the development and implementation of 36 26 career academies designed to provide new career 36 27 preparation opportunities for high school students 36 28 that are formally linked with postsecondary career and 36 29 technical education programs. Moneys from workforce 36 30 training and economic development funds that are 36 31 expended for purposes of this paragraph shall be in 36 32 accordance with the plan submitted to the department 36 33 of economic development and the grow Iowa board under 36 34 subsection 5. For purposes of this section, "career 36 35 academy" means a program of study that combines a 36 36 minimum of two years of secondary education with an 36 37 associate degree, or the equivalent, career 36 38 preparatory program in a nonduplicative, sequential 36 39 course of study that is standards based, integrates 36 40 academic and technical instruction, utilizes work- 36 41 based and worksite learning where appropriate and 36 42 available, utilizes an individual career planning 36 43 process with parent involvement, and leads to an 36 44 associate degree or postsecondary diploma or 36 45 certificate in a career field that prepares an 36 46 individual for entry and advancement in a high-skill 36 47 and reward career field and further education. The 36 48 state board of education, in conjunction with the 36 49 division of community colleges and workforce 36 50 preparation of the department of education, and in 37 1 consultation with the department of economic 37 2 development, shall adopt administrative rules for the 37 3 development and implementation of such career 37 4 academies pursuant to section 256.11, subsection 5, 37 5 paragraph "h", section 260C.1, and Title II of Pub. L. 37 6 No. 105-332, Carl D. Perkins Vocational and Technical 37 7 Education Act of 1998. 37 8 d. Programs and courses that provide vocational 37 9 and technical training, and programs for in-service 37 10 training and retraining under section 260C.1, 37 11 subsections 2 and 3. 37 12 3. Moneys from the workforce training and economic 37 13 development fund that are expended for purposes of 37 14 this subsection shall be in accordance with the plan 37 15 submitted to the department of economic development 37 16 and the grow Iowa board under subsection 5. The 37 17 maximum cumulative total amount of moneys that may be 37 18 deposited in all the workforce training and economic 37 19 development funds for distribution to community 37 20 colleges in a fiscal year shall be determined as 37 21 follows: 37 22 a. Six million dollars for the fiscal year 37 23 beginning July 1, 2003. 37 24 b. Eleven million dollars for the fiscal year 37 25 beginning July 1, 2004. 37 26 c. Twenty million dollars for the fiscal year 37 27 beginning July 1, 2005. 37 28 d. Twenty million dollars for the fiscal year 37 29 beginning July 1, 2006. 37 30 e. Twenty million dollars for the fiscal year 37 31 beginning July 1, 2007. 37 32 f. Fifteen million dollars for the fiscal year 37 33 beginning July 1, 2008. 37 34 g. Fifteen million dollars for the fiscal year 37 35 beginning July 1, 2009. 37 36 4. The department of economic development shall 37 37 allocate the moneys appropriated pursuant to this 37 38 section to the community college workforce training 37 39 and economic development funds utilizing the same 37 40 distribution formula used for the allocation of state 37 41 general aid to the community colleges. 37 42 5. Each community college shall do all of the 37 43 following: 37 44 a. Adopt a two-year workforce training and 37 45 economic development fund plan outlining the community 37 46 college's proposed use of moneys appropriated under 37 47 subsection 2. 37 48 b. Update the two-year plan annually. 37 49 c. Prepare an annual progress report on the two- 37 50 year plan's implementation. 38 1 d. Annually submit the two-year plan and progress 38 2 report to the department of economic development in a 38 3 manner prescribed by rules adopted by the department 38 4 pursuant to chapter 17A and annually file a copy of 38 5 the plan and progress report with the grow Iowa board. 38 6 6. Any individual project using over one million 38 7 dollars of moneys from a workforce training and 38 8 economic development fund shall require prior approval 38 9 from the grow Iowa board. 38 10 Sec. 86. NEW SECTION. 260F.9 JOB RETENTION 38 11 PROGRAM AND FUND. 38 12 1. A job retention fund is created in the state 38 13 treasury under the control of the department of 38 14 economic development to encourage the retention of 38 15 existing jobs and income that would otherwise be lost 38 16 and encourage large businesses to remain in the state. 38 17 Moneys shall be deposited and expended from the fund 38 18 as provided in this section. 38 19 2. There is appropriated from the grow Iowa fund 38 20 created in section 15G.107, if enacted by 2003 Iowa 38 21 Acts, House File 692 or another Act, to the department 38 22 of economic development for the fiscal period 38 23 beginning July 1, 2003, and ending June 30, 2006, the 38 24 following amounts to be used for funding of job 38 25 retention programs and agreements authorized by the 38 26 department and participating community colleges as 38 27 provided in this section: 38 28 a. One million dollars for the fiscal year 38 29 beginning July 1, 2003. 38 30 b. One million dollars for the fiscal year 38 31 beginning July 1, 2004. 38 32 c. One million dollars for the fiscal year 38 33 beginning July 1, 2005. 38 34 3. Notwithstanding section 8.33, moneys that 38 35 remain unexpended at the end of a fiscal year shall 38 36 not revert to any fund but shall remain available for 38 37 expenditure for the designated purposes during the 38 38 succeeding fiscal year. 38 39 4. The department of economic development shall 38 40 administer the allocation of moneys in the job 38 41 retention fund and shall administer the job retention 38 42 program. The department shall adopt rules pursuant to 38 43 chapter 17A necessary for the administration of this 38 44 section. By January 15 of each year, the department 38 45 shall submit a written report to the general assembly 38 46 and the governor regarding the activities of the job 38 47 retention program during the previous calendar year. 38 48 5. A community college and the department may 38 49 enter into an agreement to establish a job retention 38 50 project. A job retention project agreement shall 39 1 include, but not be limited to, the following: 39 2 a. The date of the agreement. 39 3 b. The anticipated number of employees to be 39 4 trained. 39 5 c. The estimated cost of training. 39 6 d. A statement regarding the number of employees 39 7 employed by the participating business on the date of 39 8 the agreement which must equal at least the lesser of 39 9 one thousand employees or four percent or more of the 39 10 county's resident labor force based on the most recent 39 11 annual labor force statistics from the department of 39 12 workforce development. 39 13 e. A commitment that the participating business 39 14 shall invest at least fifteen million dollars to 39 15 retool the workplace and upgrade the facilities of the 39 16 participating business. 39 17 f. A commitment that the participating business 39 18 shall not move the business operation out of this 39 19 state or close the business operation for at least ten 39 20 years following the date of the agreement. 39 21 g. Other criteria established by the department of 39 22 economic development. 39 23 6. A job retention project agreement entered into 39 24 pursuant to this section must be approved by the board 39 25 of trustees of the applicable community college, the 39 26 department of economic development, and the 39 27 participating business. 39 28 Sec. 87. NEW SECTION. 260F.101 REPORTING. 39 29 A community college entering into an agreement 39 30 pursuant to this chapter shall submit an annual 39 31 written report by the end of each calendar year with 39 32 the grow Iowa board created in section 15G.102, if 39 33 enacted by 2003 Iowa Acts, House File 692 or another 39 34 Act. The report shall provide information regarding 39 35 how the agreement affects the achievement of the goals 39 36 and performance measures provided in section 15G.106, 39 37 if enacted by 2003 Iowa Acts, House File 692 or 39 38 another Act. 39 39 Sec. 88. Section 260G.3, subsection 2, Code 2003, 39 40 is amended to read as follows: 39 41 2. An agreement may include reasonable and 39 42 necessary provisions to implement the accelerated 39 43 career education program. If an agreement that 39 44 utilizes program job credits is entered into, the 39 45 community college and the employer shall notify the 39 46 department of revenue and finance as soon as possible. 39 47 The community college shall also file a copy of the 39 48 agreement with the department of economic development 39 49 as required in section 260G.4B. The agreement shall 39 50 provide for program costs, including deferred costs, 40 1 which may be paid from any of the following sources: 40 2 a. Program job credits which the employer receives 40 3 based on the number of program job positions agreed to 40 4 by the employer to be available under the agreement. 40 5 b. Cash or in-kind contributions by the employer 40 6 toward the program cost. At a minimum, the employer 40 7 contribution shall be twenty percent of the program 40 8 costs. 40 9 c. Tuition, student fees, or special charges fixed 40 10 by the board of directors to defray program costs. 40 11 d. Guarantee by the employer of payments to be 40 12 received under paragraphs "a" and "b". 40 13 e. Moneys from a workforce training and economic 40 14 development fund created in section 260C.18A, based on 40 15 the number of program job positions agreed to by the 40 16 employer to be available under the agreement, the 40 17 amount of which shall be calculated in the same manner 40 18 as the program job credits provided for in section 40 19 260G.4A. 40 20 Sec. 89. NEW SECTION. 260G.101 REPORTING. 40 21 A community college entering into an agreement 40 22 pursuant to this chapter shall submit an annual 40 23 written report by the end of each calendar year with 40 24 the grow Iowa board created in section 15G.102, if 40 25 enacted by 2003 Iowa Acts, House File 692 or another 40 26 Act. The report shall provide information regarding 40 27 how the agreement affects the achievement of the goals 40 28 and performance measures provided in section 15G.106, 40 29 if enacted by 2003 Iowa Acts, House File 692 or 40 30 another Act. 40 31 DIVISION IX 40 32 LOAN AND CREDIT GUARANTEE FUND 40 33 Sec. 90. NEW SECTION. 15E.227 LOAN AND CREDIT 40 34 GUARANTEE FUND. 40 35 1. A loan and credit guarantee fund is created and 40 36 established as a separate and distinct fund in the 40 37 state treasury. Moneys in the fund shall only be used 40 38 for purposes provided in this section. The moneys in 40 39 the fund are appropriated to the department to be used 40 40 for all of the following purposes: 40 41 a. Payment of claims pursuant to loan and credit 40 42 guarantee agreements entered into under this division. 40 43 b. Payment of administrative costs of the 40 44 department for actual and necessary administrative 40 45 expenses incurred by the department in administering 40 46 the program. 40 47 c. Purchase or buyout of superior or prior liens, 40 48 mortgages, or security interests. 40 49 2. Moneys in the loan and credit guarantee fund 40 50 shall consist of all of the following: 41 1 a. Moneys appropriated by the general assembly for 41 2 that purpose and any other moneys available to and 41 3 obtained or accepted by the department for placement 41 4 in the fund. 41 5 b. Proceeds from collateral assigned to the 41 6 department, fees for guarantees, gifts, and moneys 41 7 from any grant made to the fund by any federal agency. 41 8 c. Moneys appropriated from the grow Iowa fund 41 9 created in section 15G.107, if enacted by 2003 Iowa 41 10 Acts, House File 692 or another Act. 41 11 3. Moneys in the fund are not subject to section 41 12 8.33. Notwithstanding section 12C.7, interest or 41 13 earnings on the moneys in the fund shall be credited 41 14 to the fund. 41 15 4. a. The department shall only pledge moneys in 41 16 the loan and credit guarantee fund and not any other 41 17 moneys of the department. The department may pledge 41 18 an amount not to exceed a total of any of the 41 19 following amounts of moneys in the fund to assure the 41 20 repayment of loan and credit guarantees or other 41 21 extensions of credit made to or on behalf of qualified 41 22 businesses or targeted industry businesses for 41 23 eligible project costs. 41 24 (1) Two million five hundred thousand dollars for 41 25 the fiscal year beginning July 1, 2003. 41 26 (2) Seven million five hundred thousand dollars 41 27 for the fiscal year beginning July 1, 2004. 41 28 (3) Eight million five hundred seventy-five 41 29 thousand dollars for the fiscal year beginning July 1, 41 30 2005. 41 31 (4) Eleven million seventy-five thousand dollars 41 32 for the fiscal year beginning July 1, 2006. 41 33 (5) Thirteen million seventy-five thousand dollars 41 34 for the fiscal year beginning July 1, 2007. 41 35 (6) Thirty-five million seventy-five thousand 41 36 dollars for the fiscal year beginning July 1, 2008. 41 37 (7) Thirty-seven million five hundred seventy-five 41 38 thousand dollars for the fiscal year beginning July 1, 41 39 2009. 41 40 b. The department shall not pledge the credit or 41 41 taxing power of this state or any political 41 42 subdivision of this state or make debts payable out of 41 43 any moneys except for those in the loan and credit 41 44 guarantee fund. 41 45 DIVISION X 41 46 UNIVERSITY-BASED RESEARCH UTILIZATION 41 47 PROGRAM APPROPRIATION 41 48 Sec. 91. NEW SECTION. 262B.12 APPROPRIATION. 41 49 On July 1 of each year there is appropriated from 41 50 the general fund of the state to each university under 42 1 the control of the state board of regents, an amount 42 2 equal to the amount determined by the department of 42 3 economic development pursuant to section 262B.11, 42 4 subsection 4, paragraph "c", subparagraph (2), if 42 5 enacted by 2003 Iowa Acts, House File 692 or another 42 6 Act. 42 7 DIVISION XI 42 8 ENDOW IOWA TAX CREDIT 42 9 Sec. 92. NEW SECTION. 15E.305 ENDOW IOWA TAX 42 10 CREDIT. 42 11 1. For tax years beginning on or after January 1, 42 12 2003, a tax credit shall be allowed against the taxes 42 13 imposed in chapter 422, divisions II, III, and V, and 42 14 in chapter 432, and against the moneys and credits tax 42 15 imposed in section 533.24 equal to twenty percent of a 42 16 taxpayer's endowment gift to a qualified community 42 17 foundation. An individual may claim a tax credit 42 18 under this section of a partnership, limited liability 42 19 company, S corporation, estate, or trust electing to 42 20 have income taxed directly to the individual. The 42 21 amount claimed by the individual shall be based upon 42 22 the pro rata share of the individual's earnings from 42 23 the partnership, limited liability company, S 42 24 corporation, estate, or trust. A tax credit shall be 42 25 allowed only for an endowment gift made to a qualified 42 26 community foundation for a permanent endowment fund 42 27 established to benefit a charitable cause in this 42 28 state. Any tax credit in excess of the taxpayer's tax 42 29 liability for the tax year may be credited to the tax 42 30 liability for the following five years or until 42 31 depleted, whichever occurs first. A tax credit shall 42 32 not be carried back to a tax year prior to the tax 42 33 year in which the taxpayer claims the tax credit. 42 34 2. The aggregate amount of tax credits authorized 42 35 pursuant to this section shall not exceed a total of 42 36 two million dollars. The maximum amount of tax 42 37 credits granted to a taxpayer shall not exceed five 42 38 percent of the aggregate amount of tax credits 42 39 authorized. 42 40 3. A tax credit shall not be transferable to any 42 41 other taxpayer. 42 42 4. A tax credit shall not be authorized pursuant 42 43 to this section after December 31, 2005. 42 44 5. The department shall develop a system for 42 45 registration and authorization of tax credits under 42 46 this section and shall control the distribution of all 42 47 tax credits to taxpayers providing an endowment gift 42 48 subject to this section. The department shall adopt 42 49 administrative rules pursuant to chapter 17A for the 42 50 qualification and administration of endowment gifts. 43 1 Sec. 93. NEW SECTION. 422.11H ENDOW IOWA TAX 43 2 CREDIT. 43 3 The tax imposed under this division, less the 43 4 credits allowed under sections 422.12 and 422.12B, 43 5 shall be reduced by an endow Iowa tax credit 43 6 authorized pursuant to section 15E.305. 43 7 Sec. 94. Section 422.33, Code 2003, is amended by 43 8 adding the following new subsection: 43 9 NEW SUBSECTION. 14. The taxes imposed under this 43 10 division shall be reduced by an endow Iowa tax credit 43 11 authorized pursuant to section 15E.305. 43 12 Sec. 95. Section 422.60, Code 2003, is amended by 43 13 adding the following new subsection: 43 14 NEW SUBSECTION. 7. The taxes imposed under this 43 15 division shall be reduced by an endow Iowa tax credit 43 16 authorized pursuant to section 15E.305. 43 17 Sec. 96. NEW SECTION. 432.12D ENDOW IOWA TAX 43 18 CREDIT. 43 19 The tax imposed under this chapter shall be reduced 43 20 by an endow Iowa tax credit authorized pursuant to 43 21 section 15E.305. 43 22 Sec. 97. Section 533.24, Code 2003, is amended by 43 23 adding the following new unnumbered paragraph: 43 24 NEW UNNUMBERED PARAGRAPH. The moneys and credits 43 25 tax imposed under this section shall be reduced by an 43 26 endow Iowa tax credit authorized pursuant to section 43 27 15E.305. 43 28 Sec. 98. EFFECTIVE AND RETROACTIVE APPLICABILITY 43 29 DATES. This division of this Act, being deemed of 43 30 immediate importance, takes effect upon enactment and 43 31 is retroactively applicable to January 1, 2003, for 43 32 tax years beginning on or after that date. 43 33 DIVISION XII 43 34 REHABILITATION PROJECT TAX CREDITS 43 35 Sec. 99. Section 404A.4, subsection 4, Code 2003, 43 36 is amended to read as follows: 43 37 4. The total amount of tax credits that may be 43 38 approved for a fiscal year under this chapter shall 43 39 not exceed two million four hundred thousand dollars. 43 40 For the fiscal years beginning July 1, 2003, and July 43 41 1, 2004, an additional two million dollars of tax 43 42 credits may be approved each fiscal year for purposes 43 43 of projects located in cultural and entertainment 43 44 districts certified pursuant to section 303.3B, if 43 45 enacted by 2003 Iowa Acts, House File 692 or another 43 46 Act. Any of the additional tax credits allocated for 43 47 projects located in certified cultural and 43 48 entertainment districts that are not approved during a 43 49 fiscal year may be carried over to the succeeding 43 50 fiscal year. Tax credit certificates shall be issued 44 1 on the basis of the earliest awarding of 44 2 certifications of completion as provided in subsection 44 3 1. The departments of economic development and 44 4 revenue and finance shall each adopt rules to jointly 44 5 administer this subsection and shall provide by rule 44 6 for the method to be used to determine for which 44 7 fiscal year the tax credits are approved. 44 8 DIVISION XIII 44 9 STATE ASSISTANCE FOR EDUCATIONAL INFRASTRUCTURE FUND 44 10 Sec. 100. Section 8.57, subsection 5, Code 2003, 44 11 is amended by adding the following new paragraph: 44 12 NEW PARAGRAPH. f. There is appropriated from the 44 13 rebuild Iowa infrastructure fund to the state 44 14 assistance for educational infrastructure fund created 44 15 in 2003 Iowa Acts, House File 692 or another Act, for 44 16 each fiscal year of the fiscal period beginning July 44 17 1, 2004, and ending June 30, 2014, the amount of the 44 18 moneys in excess of the first forty-seven million 44 19 dollars credited to the rebuild Iowa infrastructure 44 20 fund during the fiscal year, not to exceed ten million 44 21 dollars. 44 22 Sec. 101. NEW SECTION. 292A.3A APPROPRIATION. 44 23 There is appropriated from the general fund of the 44 24 state from moneys credited to the general fund of the 44 25 state as a result of the state entering into the 44 26 streamlined sales and use tax agreement to the state 44 27 assistance for educational infrastructure fund created 44 28 in 2003 Iowa Acts, House File 692 or another Act, the 44 29 sum of five million dollars for each fiscal year of 44 30 the fiscal period beginning July 1, 2004, and ending 44 31 June 30, 2014. The appropriation in this section 44 32 shall be made after the appropriation from the same 44 33 source to the grow Iowa fund created in 2003 Iowa 44 34 Acts, House File 692 or another Act. For purposes of 44 35 this section, "moneys credited to the general fund of 44 36 the state as a result of entering into the streamlined 44 37 sales and use tax agreement" means the amount of sales 44 38 and use tax receipts credited to the general fund of 44 39 the state during a fiscal year that exceeds by two 44 40 percent or more the total sales and use tax receipts 44 41 credited to the general fund of the state during the 44 42 previous fiscal year. 44 43 DIVISION XIV 44 44 REPEALS 44 45 Sec. 102. The divisions of this Act designated 44 46 economic development appropriations, workforce-related 44 47 issues, loan and credit guarantee fund, university- 44 48 based research utilization program appropriation, 44 49 endow Iowa tax credit, and rehabilitation project tax 44 50 credits are repealed effective June 30, 2010. 45 1 DIVISION XV 45 2 STREAMLINED SALES AND USE TAXES 45 3 SUBCHAPTER I 45 4 DEFINITIONS 45 5 Sec. 103. NEW SECTION. 423.1 DEFINITIONS. 45 6 As used in this chapter the following words, terms, 45 7 and phrases have the meanings ascribed to them by this 45 8 section, except where the context clearly indicates 45 9 that a different meaning is intended: 45 10 1. "Agent" means a person appointed by a seller to 45 11 represent the seller before the member states. 45 12 2. "Agreement" means the streamlined sales and use 45 13 tax agreement authorized by subchapter IV of this 45 14 chapter to provide a mechanism for establishing and 45 15 maintaining a cooperative, simplified system for the 45 16 application and administration of sales and use taxes. 45 17 3. "Agricultural production" includes the 45 18 production of flowering, ornamental, or vegetable 45 19 plants in commercial greenhouses or otherwise, and 45 20 production from aquaculture. "Agricultural products" 45 21 includes flowering, ornamental, or vegetable plants 45 22 and those products of aquaculture. 45 23 4. "Business" includes any activity engaged in by 45 24 any person or caused to be engaged in by the person 45 25 with the object of gain, benefit, or advantage, either 45 26 direct or indirect. 45 27 5. "Certificate of title" means a certificate of 45 28 title issued for a vehicle or for manufactured housing 45 29 under chapter 321. 45 30 6. "Certified automated system" means software 45 31 certified under the agreement to calculate the tax 45 32 imposed by each jurisdiction on a transaction, 45 33 determine the amount of tax to remit to the 45 34 appropriate state, and maintain a record of the 45 35 transaction. 45 36 7. "Certified service provider" means an agent 45 37 certified under the agreement to perform all of a 45 38 seller's sales or use tax functions, other than the 45 39 seller's obligation to remit tax on its own purchases. 45 40 8. "Computer" means an electronic device that 45 41 accepts information in digital or similar form and 45 42 manipulates the information for a result based on a 45 43 sequence of instructions. 45 44 9. "Computer software" means a set of coded 45 45 instructions designed to cause a computer or automatic 45 46 data processing equipment to perform a task. 45 47 10. "Delivered electronically" means delivered to 45 48 the purchaser by means other than tangible storage 45 49 media. 45 50 11. "Delivery charges" means charges assessed by a 46 1 seller of personal property or services for 46 2 preparation and delivery to a location designated by 46 3 the purchaser of personal property or services 46 4 including, but not limited to, transportation, 46 5 shipping, postage, handling, crating, and packing 46 6 charges. 46 7 12. "Department" means the department of revenue 46 8 and finance. 46 9 13. "Direct mail" means printed material delivered 46 10 or distributed by United States mail or other delivery 46 11 service to a mass audience or to addressees on a 46 12 mailing list provided by the purchaser or at the 46 13 direction of the purchaser when the cost of the items 46 14 is not billed directly to the recipients. "Direct 46 15 mail" includes tangible personal property supplied 46 16 directly or indirectly by the purchaser to the direct 46 17 mail seller for inclusion in the package containing 46 18 the printed material. "Direct mail" does not include 46 19 multiple items of printed material delivered to a 46 20 single address. 46 21 14. "Director" means the director of revenue and 46 22 finance. 46 23 15. "Electronic" means relating to technology 46 24 having electrical, digital, magnetic, wireless, 46 25 optical, electromagnetic, or similar capabilities. 46 26 16. "Farm deer" means the same as defined in 46 27 section 189A.2. 46 28 17. "Farm machinery and equipment" means machinery 46 29 and equipment used in agricultural production. 46 30 18. "First use of a service". A "first use of a 46 31 service" occurs, for the purposes of this chapter, 46 32 when a service is rendered, furnished, or performed in 46 33 Iowa or if rendered, furnished, or performed outside 46 34 of Iowa, when the product or result of the service is 46 35 used in Iowa. 46 36 19. "Goods, wares, or merchandise" means the same 46 37 as tangible personal property. 46 38 20. "Governing board" means the group comprised of 46 39 representatives of the member states of the agreement 46 40 which is created by the agreement to be responsible 46 41 for the agreement's administration and operation. 46 42 21. "Installed purchase price" is the amount 46 43 charged, valued in money whether paid in money or 46 44 otherwise, by a building contractor to convert 46 45 manufactured housing from tangible personal property 46 46 into realty. "Installed purchase price" includes, but 46 47 is not limited to, amounts charged for installing a 46 48 foundation and electrical and plumbing hookups. 46 49 "Installed purchase price" excludes any amount charged 46 50 for landscaping in connection with the conversion. 47 1 22. "Lease or rental". 47 2 a. "Lease or rental" means any transfer of 47 3 possession or control of tangible personal property 47 4 for a fixed or indeterminate term for consideration. 47 5 A "lease or rental" may include future options to 47 6 purchase or extend. 47 7 b. "Lease or rental" includes agreements covering 47 8 motor vehicles and trailers when the amount of 47 9 consideration may be increased or decreased by 47 10 reference to the amount realized upon sale or 47 11 disposition of the property as defined in 26 U.S.C. } 47 12 7701(h)(1). 47 13 c. "Lease or rental" does not include any of the 47 14 following: 47 15 (1) A transfer of possession or control of 47 16 property under a security agreement or deferred 47 17 payment plan that requires the transfer of title upon 47 18 completion of the required payments. 47 19 (2) A transfer of possession or control of 47 20 property under an agreement that requires the transfer 47 21 of title upon completion of required payments, and 47 22 payment of any option price does not exceed the 47 23 greater of one hundred dollars or one percent of the 47 24 total required payments. 47 25 (3) Providing tangible personal property along 47 26 with an operator for a fixed or indeterminate period 47 27 of time. A condition of this exclusion is that the 47 28 operator is necessary for the equipment to perform as 47 29 designed. For the purpose of this subparagraph, an 47 30 operator must do more than maintain, inspect, or set 47 31 up the tangible personal property. 47 32 d. This definition shall be used for sales and use 47 33 tax purposes regardless of whether a transaction is 47 34 characterized as a lease or rental under generally 47 35 accepted accounting principles, the Internal Revenue 47 36 Code, the Uniform Commercial Code, or other provisions 47 37 of federal, state, or local law. 47 38 23. "Livestock" includes but is not limited to an 47 39 animal classified as an ostrich, rhea, emu, bison, or 47 40 farm deer. 47 41 24. "Manufactured housing" means "manufactured 47 42 home" as defined in section 321.1. 47 43 25. "Member state" is any state which has signed 47 44 the agreement. 47 45 26. "Mobile home" means "manufactured or mobile 47 46 home" as defined in section 321.1. 47 47 27. "Model 1 seller" is a seller that has selected 47 48 a certified service provider as its agent to perform 47 49 all the seller's sales and use tax functions, other 47 50 than the seller's obligation to remit tax on its own 48 1 purchases. 48 2 28. "Model 2 seller" is a seller that has selected 48 3 a certified automated system to perform part of its 48 4 sales and use tax functions, but retains 48 5 responsibility for remitting the tax. 48 6 29. "Model 3 seller" is a seller that has sales in 48 7 at least five member states, has total annual sales 48 8 revenue of at least five hundred million dollars, has 48 9 a proprietary system that calculates the amount of tax 48 10 due each jurisdiction, and has entered into a 48 11 performance agreement with the member states that 48 12 establishes a tax performance standard for the seller. 48 13 As used in this definition, a "seller" includes an 48 14 affiliated group of sellers using the same proprietary 48 15 system. 48 16 30. "Nonresidential commercial operations" means 48 17 industrial, commercial, mining, or agricultural 48 18 operations, whether for profit or not, but does not 48 19 include apartment complexes or mobile home parks. 48 20 31. "Not registered under the agreement" means 48 21 lack of registration by a seller with the member 48 22 states under the central registration system 48 23 referenced in section 423.11, subsection 4. 48 24 32. "Person" means an individual, trust, estate, 48 25 fiduciary, partnership, limited liability company, 48 26 limited liability partnership, corporation, or any 48 27 other legal entity. 48 28 33. "Place of business" means any warehouse, 48 29 store, place, office, building, or structure where 48 30 goods, wares, or merchandise are offered for sale at 48 31 retail or where any taxable amusement is conducted, or 48 32 each office where gas, water, heat, communication, or 48 33 electric services are offered for sale at retail. 48 34 When a retailer or amusement operator sells 48 35 merchandise by means of vending machines or operates 48 36 music or amusement devices by coin-operated machines 48 37 at more than one location within the state, the 48 38 office, building, or place where the books, papers, 48 39 and records of the taxpayer are kept shall be deemed 48 40 to be the taxpayer's place of business. 48 41 34. "Prewritten computer software" includes 48 42 software designed and developed by the author or other 48 43 creator to the specifications of a specific purchaser 48 44 when it is sold to a person other than the purchaser. 48 45 The combining of two or more prewritten computer 48 46 software programs or prewritten portions of prewritten 48 47 programs does not cause the combination to be other 48 48 than prewritten computer software. "Prewritten 48 49 computer software" also means computer software, 48 50 including prewritten upgrades, which is not designed 49 1 and developed by the author or other creator to the 49 2 specifications of a specific purchaser. 49 3 When a person modifies or enhances computer 49 4 software of which the person is not the author or 49 5 creator, the person shall be deemed to be the author 49 6 or creator only of such person's modifications or 49 7 enhancements. Prewritten computer software or a 49 8 prewritten portion of the prewritten software that is 49 9 modified or enhanced to any degree, when such 49 10 modification or enhancement is designed and developed 49 11 to the specifications of a specific purchaser, remains 49 12 prewritten computer software. However, when there is 49 13 a reasonable, separately stated charge or an invoice 49 14 or other statement of the price given to the purchaser 49 15 for such modification or enhancement, such 49 16 modification or enhancement shall not constitute 49 17 prewritten computer software. 49 18 35. "Property purchased for resale in connection 49 19 with the performance of a service" means property 49 20 which is purchased for resale in connection with the 49 21 rendition, furnishing, or performance of a service by 49 22 a person who renders, furnishes, or performs the 49 23 service if all of the following occur: 49 24 a. The provider and user of the service intend 49 25 that a sale of the property will occur. 49 26 b. The property is transferred to the user of the 49 27 service in connection with the performance of the 49 28 service in a form or quantity capable of a fixed or 49 29 definite price value. 49 30 c. The sale is evidenced by a separate charge for 49 31 the identifiable piece of property. 49 32 36. "Purchase" means any transfer, exchange, or 49 33 barter, conditional or otherwise, in any manner or by 49 34 any means whatsoever, for a consideration. 49 35 37. "Purchase price" means the same as "sales 49 36 price" as defined in this section. 49 37 38. "Purchaser" is a person to whom a sale of 49 38 personal property is made or to whom a service is 49 39 furnished. 49 40 39. "Receive" and "receipt" mean any of the 49 41 following: 49 42 a. Taking possession of tangible personal 49 43 property. 49 44 b. Making first use of a service. 49 45 c. Taking possession or making first use of 49 46 digital goods, whichever comes first. 49 47 "Receive" and "receipt" do not include possession 49 48 by a shipping company on behalf of a purchaser. 49 49 40. "Registered under the agreement" means 49 50 registration by a seller under the central 50 1 registration system referenced in section 423.11, 50 2 subsection 4. 50 3 41. "Relief agency" means the state, any county, 50 4 city and county, city, or district thereof, or any 50 5 agency engaged in actual relief work. 50 6 42. "Retailer" means and includes every person 50 7 engaged in the business of selling tangible personal 50 8 property or taxable services at retail, or the 50 9 furnishing of gas, electricity, water, or 50 10 communication service, and tickets or admissions to 50 11 places of amusement and athletic events or operating 50 12 amusement devices or other forms of commercial 50 13 amusement from which revenues are derived. However, 50 14 when in the opinion of the director it is necessary 50 15 for the efficient administration of this chapter to 50 16 regard any salespersons, representatives, truckers, 50 17 peddlers, or canvassers as agents of the dealers, 50 18 distributors, supervisors, employers, or persons under 50 19 whom they operate or from whom they obtain tangible 50 20 personal property sold by them irrespective of whether 50 21 or not they are making sales on their own behalf or on 50 22 behalf of such dealers, distributors, supervisors, 50 23 employers, or persons, the director may so regard 50 24 them, and may regard such dealers, distributors, 50 25 supervisors, employers, or persons as retailers for 50 26 the purposes of this chapter. "Retailer" includes a 50 27 seller obligated to collect sales or use tax. 50 28 43. "Retailer maintaining a place of business in 50 29 this state" or any like term includes any retailer 50 30 having or maintaining within this state, directly or 50 31 by a subsidiary, an office, distribution house, sales 50 32 house, warehouse, or other place of business, or any 50 33 representative operating within this state under the 50 34 authority of the retailer or its subsidiary, 50 35 irrespective of whether that place of business or 50 36 representative is located here permanently or 50 37 temporarily, or whether the retailer or subsidiary is 50 38 admitted to do business within this state pursuant to 50 39 chapter 490. 50 40 44. "Retailers who are not model sellers" means 50 41 all retailers other than model 1, model 2, or model 3 50 42 sellers. 50 43 45. "Retail sale" or "sale at retail" means any 50 44 sale, lease, or rental for any purpose other than 50 45 resale, sublease, or subrent. 50 46 46. "Sales" or "sale" means any transfer, 50 47 exchange, or barter, conditional or otherwise, in any 50 48 manner or by any means whatsoever, for consideration. 50 49 47. "Sales price" applies to the measure subject 50 50 to sales tax. 51 1 a. "Sales price" means the total amount of 51 2 consideration, including cash, credit, property, and 51 3 services, for which personal property or services are 51 4 sold, leased, or rented, valued in money, whether 51 5 received in money or otherwise, without any deduction 51 6 for any of the following: 51 7 (1) The seller's cost of the property sold. 51 8 (2) The cost of materials used, labor or service 51 9 cost, interest, losses, all costs of transportation to 51 10 the seller, all taxes imposed on the seller, and any 51 11 other expenses of the seller. 51 12 (3) Charges by the seller for any services 51 13 necessary to complete the sale, other than delivery 51 14 and installation charges. 51 15 (4) Delivery charges. 51 16 (5) Installation charges. 51 17 (6) The value of exempt personal property given to 51 18 the purchaser where taxable and exempt personal 51 19 property have been bundled together and sold by the 51 20 seller as a single product or piece of merchandise. 51 21 (7) Credit for any trade-in authorized by section 51 22 423.3, subsection 58. 51 23 b. "Sales price" does not include: 51 24 (1) Discounts, including cash, term, or coupons 51 25 that are not reimbursed by a third party that are 51 26 allowed by a seller and taken by a purchaser on a 51 27 sale. 51 28 (2) Interest, financing, and carrying charges from 51 29 credit extended on the sale of personal property or 51 30 services, if the amount is separately stated on the 51 31 invoice, bill of sale, or similar document given to 51 32 the purchaser. 51 33 (3) Any taxes legally imposed directly on the 51 34 consumer that are separately stated on the invoice, 51 35 bill of sale, or similar document given to the 51 36 purchaser. 51 37 (4) The amounts received for charges included in 51 38 paragraph "a", subparagraphs (3) through (7), if they 51 39 are separately contracted for and separately stated on 51 40 the invoice, billing, or similar document given to the 51 41 purchaser. 51 42 48. "Sales tax" means the tax levied under 51 43 subchapter II of this chapter. 51 44 49. "Seller" means any person making sales, 51 45 leases, or rentals of personal property or services. 51 46 50. "Services" means all acts or services 51 47 rendered, furnished, or performed, other than services 51 48 used in processing of tangible personal property for 51 49 use in retail sales or services, for an employer, as 51 50 defined in section 422.4, subsection 3, for a valuable 52 1 consideration by any person engaged in any business or 52 2 occupation specifically enumerated in section 423.2. 52 3 The tax shall be due and collectible when the service 52 4 is rendered, furnished, or performed for the ultimate 52 5 user of the service. 52 6 51. "Services used in the processing of tangible 52 7 personal property" includes the reconditioning or 52 8 repairing of tangible personal property of the type 52 9 normally sold in the regular course of the retailer's 52 10 business and which is held for sale. 52 11 52. "State" means any state of the United States 52 12 and the District of Columbia. 52 13 53. "System" means the central electronic 52 14 registration system maintained by Iowa and other 52 15 states which are signatories to the agreement. 52 16 54. "Tangible personal property" means personal 52 17 property that can be seen, weighed, measured, felt, or 52 18 touched, or that is in any other manner perceptible to 52 19 the senses. "Tangible personal property" includes 52 20 electricity, water, gas, steam, and prewritten 52 21 computer software. 52 22 55. "Taxpayer" includes any person who is subject 52 23 to a tax imposed by this chapter, whether acting on 52 24 the person's own behalf or as a fiduciary. 52 25 56. "Trailer" shall mean every trailer, as is now 52 26 or may be hereafter so defined by chapter 321, which 52 27 is required to be registered or is subject only to the 52 28 issuance of a certificate of title under chapter 321. 52 29 57. "Use" means and includes the exercise by any 52 30 person of any right or power over tangible personal 52 31 property incident to the ownership of that property. 52 32 A retailer's or building contractor's sale of 52 33 manufactured housing for use in this state, whether in 52 34 the form of tangible personal property or of realty, 52 35 is a use of that property for the purposes of this 52 36 chapter. 52 37 58. "Use tax" means the tax levied under 52 38 subchapter III of this chapter for which the retailer 52 39 collects and remits tax to the department. 52 40 59. "User" means the immediate recipient of the 52 41 services who is entitled to exercise a right of power 52 42 over the product of such services. 52 43 60. "Value of services" means the price to the 52 44 user exclusive of any direct tax imposed by the 52 45 federal government or by this chapter. 52 46 61. "Vehicles subject to registration" means any 52 47 vehicle subject to registration pursuant to section 52 48 321.18. 52 49 SUBCHAPTER II 52 50 SALES TAX 53 1 Sec. 104. NEW SECTION. 423.2 TAX IMPOSED. 53 2 1. There is imposed a tax of five percent upon the 53 3 sales price of all sales of tangible personal 53 4 property, consisting of goods, wares, or merchandise, 53 5 sold at retail in the state to consumers or users 53 6 except as otherwise provided in this subchapter. 53 7 a. For the purposes of this subchapter, sales of 53 8 the following services are treated as if they were 53 9 sales of tangible personal property: 53 10 (1) Sales of engraving, photography, retouching, 53 11 printing, and binding services. 53 12 (2) Sales of vulcanizing, recapping, and 53 13 retreading services. 53 14 (3) Sales of prepaid telephone calling cards and 53 15 prepaid authorization numbers. 53 16 (4) Sales of optional service or warranty 53 17 contracts, except residential service contracts 53 18 regulated under chapter 523C, which provide for the 53 19 furnishing of labor and materials and require the 53 20 furnishing of any taxable service enumerated under 53 21 this section. The sales price is subject to tax even 53 22 if some of the services furnished are not enumerated 53 23 under this section. Additional sales, services, or 53 24 use taxes shall not be levied on services, parts, or 53 25 labor provided under optional service or warranty 53 26 contracts which are subject to tax under this 53 27 subsection. 53 28 If the optional service or warranty contract is a 53 29 computer software maintenance or support service 53 30 contract and there is no separately stated fee for the 53 31 taxable personal property or for the nontaxable 53 32 service, the tax imposed by this subsection shall be 53 33 imposed on fifty percent of the sales price from the 53 34 sale of such contract. If the contract provides for 53 35 technical support services only, no tax shall be 53 36 imposed under this subsection. The provisions of this 53 37 subparagraph (4) also apply to the use tax. 53 38 (5) Renting of rooms, apartments, or sleeping 53 39 quarters in a hotel, motel, inn, public lodging house, 53 40 rooming house, mobile home which is tangible personal 53 41 property, or tourist court, or in any place where 53 42 sleeping accommodations are furnished to transient 53 43 guests for rent, whether with or without meals. 53 44 "Renting" and "rent" include any kind of direct or 53 45 indirect charge for such rooms, apartments, or 53 46 sleeping quarters, or their use. However, the tax 53 47 does not apply to the sales price from the renting of 53 48 a room, apartment, or sleeping quarters while rented 53 49 by the same person for a period of more than thirty- 53 50 one consecutive days. 54 1 b. Sales of building materials, supplies, and 54 2 equipment to owners, contractors, subcontractors, or 54 3 builders for the erection of buildings or the 54 4 alteration, repair, or improvement of real property 54 5 are retail sales of tangible personal property in 54 6 whatever quantity sold. Where the owner, contractor, 54 7 subcontractor, or builder is also a retailer holding a 54 8 retail sales tax permit and transacting retail sales 54 9 of building materials, supplies, and equipment, the 54 10 person shall purchase such items of tangible personal 54 11 property without liability for the tax if such 54 12 property will be subject to the tax at the time of 54 13 resale or at the time it is withdrawn from inventory 54 14 for construction purposes. The sales tax shall be due 54 15 in the reporting period when the materials, supplies, 54 16 and equipment are withdrawn from inventory for 54 17 construction purposes or when sold at retail. The tax 54 18 shall not be due when materials are withdrawn from 54 19 inventory for use in construction outside of Iowa and 54 20 the tax shall not apply to tangible personal property 54 21 purchased and consumed by the manufacturer as building 54 22 materials in the performance by the manufacturer or 54 23 its subcontractor of construction outside of Iowa. 54 24 The sale of carpeting is not a sale of building 54 25 materials. The sale of carpeting to owners, 54 26 contractors, subcontractors, or builders shall be 54 27 treated as the sale of ordinary tangible personal 54 28 property and subject to the tax imposed under this 54 29 subsection and the use tax. 54 30 c. The use within this state of tangible personal 54 31 property by the manufacturer thereof, as building 54 32 materials, supplies, or equipment, in the performance 54 33 of construction contracts in Iowa, shall, for the 54 34 purpose of this subchapter, be construed as a sale at 54 35 retail of tangible personal property by the 54 36 manufacturer who shall be deemed to be the consumer of 54 37 such tangible personal property. The tax shall be 54 38 computed upon the cost to the manufacturer of the 54 39 fabrication or production of the tangible personal 54 40 property. 54 41 2. A tax of five percent is imposed upon the sales 54 42 price of the sale or furnishing of gas, electricity, 54 43 water, heat, pay television service, and communication 54 44 service, including the sales price from such sales by 54 45 any municipal corporation or joint water utility 54 46 furnishing gas, electricity, water, heat, pay 54 47 television service, and communication service to the 54 48 public in its proprietary capacity, except as 54 49 otherwise provided in this subchapter, when sold at 54 50 retail in the state to consumers or users. 55 1 3. A tax of five percent is imposed upon the sales 55 2 price of all sales of tickets or admissions to places 55 3 of amusement, fairs, and athletic events except those 55 4 of elementary and secondary educational institutions. 55 5 A tax of five percent is imposed on the sales price of 55 6 an entry fee or like charge imposed solely for the 55 7 privilege of participating in an activity at a place 55 8 of amusement, fair, or athletic event unless the sales 55 9 price of tickets or admissions charges for observing 55 10 the same activity are taxable under this subchapter. 55 11 A tax of five percent is imposed upon that part of 55 12 private club membership fees or charges paid for the 55 13 privilege of participating in any athletic sports 55 14 provided club members. 55 15 4. A tax of five percent is imposed upon the sales 55 16 price derived from the operation of all forms of 55 17 amusement devices and games of skill, games of chance, 55 18 raffles, and bingo games as defined in chapter 99B, 55 19 operated or conducted within the state, the tax to be 55 20 collected from the operator in the same manner as for 55 21 the collection of taxes upon the sales price of 55 22 tickets or admission as provided in this section. 55 23 Nothing in this subsection shall legalize any games of 55 24 skill or chance or slot-operated devices which are now 55 25 prohibited by law. 55 26 The tax imposed under this subsection covers the 55 27 total amount from the operation of games of skill, 55 28 games of chance, raffles, and bingo games as defined 55 29 in chapter 99B, and musical devices, weighing 55 30 machines, shooting galleries, billiard and pool 55 31 tables, bowling alleys, pinball machines, slot- 55 32 operated devices selling merchandise not subject to 55 33 the general sales taxes and on the total amount from 55 34 devices or systems where prizes are in any manner 55 35 awarded to patrons and upon the receipts from fees 55 36 charged for participation in any game or other form of 55 37 amusement, and generally upon the sales price from any 55 38 source of amusement operated for profit, not specified 55 39 in this section, and upon the sales price from which 55 40 tax is not collected for tickets or admission, but tax 55 41 shall not be imposed upon any activity exempt from 55 42 sales tax under section 423.3, subsection 78. Every 55 43 person receiving any sales price from the sources 55 44 described in this section is subject to all provisions 55 45 of this subchapter relating to retail sales tax and 55 46 other provisions of this chapter as applicable. 55 47 5. There is imposed a tax of five percent upon the 55 48 sales price from the furnishing of services as defined 55 49 in section 423.1. 55 50 6. The sales price of any of the following 56 1 enumerated services is subject to the tax imposed by 56 2 subsection 5: alteration and garment repair; armored 56 3 car; vehicle repair; battery, tire, and allied; 56 4 investment counseling; service charges of all 56 5 financial institutions; barber and beauty; boat 56 6 repair; vehicle wash and wax; campgrounds; carpentry; 56 7 roof, shingle, and glass repair; dance schools and 56 8 dance studios; dating services; dry cleaning, 56 9 pressing, dyeing, and laundering; electrical and 56 10 electronic repair and installation; excavating and 56 11 grading; farm implement repair of all kinds; flying 56 12 service; furniture, rug, carpet, and upholstery repair 56 13 and cleaning; fur storage and repair; golf and country 56 14 clubs and all commercial recreation; gun and camera 56 15 repair; house and building moving; household 56 16 appliance, television, and radio repair; janitorial 56 17 and building maintenance or cleaning; jewelry and 56 18 watch repair; lawn care, landscaping, and tree 56 19 trimming and removal; limousine service, including 56 20 driver; machine operator; machine repair of all kinds; 56 21 motor repair; motorcycle, scooter, and bicycle repair; 56 22 oilers and lubricators; office and business machine 56 23 repair; painting, papering, and interior decorating; 56 24 parking facilities; pay television; pet grooming; pipe 56 25 fitting and plumbing; wood preparation; executive 56 26 search agencies; private employment agencies, 56 27 excluding services for placing a person in employment 56 28 where the principal place of employment of that person 56 29 is to be located outside of the state; reflexology; 56 30 security and detective services; sewage services for 56 31 nonresidential commercial operations; sewing and 56 32 stitching; shoe repair and shoeshine; sign 56 33 construction and installation; storage of household 56 34 goods, mini-storage, and warehousing of raw 56 35 agricultural products; swimming pool cleaning and 56 36 maintenance; tanning beds or salons; taxidermy 56 37 services; telephone answering service; test 56 38 laboratories, including mobile testing laboratories 56 39 and field testing by testing laboratories, and 56 40 excluding tests on humans or animals; termite, bug, 56 41 roach, and pest eradicators; tin and sheet metal 56 42 repair; Turkish baths, massage, and reducing salons, 56 43 excluding services provided by massage therapists 56 44 licensed under chapter 152C; water conditioning and 56 45 softening; weighing; welding; well drilling; wrapping, 56 46 packing, and packaging of merchandise other than 56 47 processed meat, fish, fowl, and vegetables; wrecking 56 48 service; wrecker and towing. 56 49 For the purposes of this subsection, the sales 56 50 price of a lease or rental includes rents, royalties, 57 1 and copyright and license fees. For the purposes of 57 2 this subsection, "financial institutions" means all 57 3 national banks, federally chartered savings and loan 57 4 associations, federally chartered savings banks, 57 5 federally chartered credit unions, banks organized 57 6 under chapter 524, savings and loan associations and 57 7 savings banks organized under chapter 534, and credit 57 8 unions organized under chapter 533. 57 9 7. a. A tax of five percent is imposed upon the 57 10 sales price from the sales, furnishing, or service of 57 11 solid waste collection and disposal service. 57 12 For purposes of this subsection, "solid waste" 57 13 means garbage, refuse, sludge from a water supply 57 14 treatment plant or air contaminant treatment facility, 57 15 and other discarded waste materials and sludges, in 57 16 solid, semisolid, liquid, or contained gaseous form, 57 17 resulting from nonresidential commercial operations, 57 18 but does not include auto hulks; street sweepings; 57 19 ash; construction debris; mining waste; trees; tires; 57 20 lead acid batteries; used oil; hazardous waste; animal 57 21 waste used as fertilizer; earthen fill, boulders, or 57 22 rock; foundry sand used for daily cover at a sanitary 57 23 landfill; sewage sludge; solid or dissolved material 57 24 in domestic sewage or other common pollutants in water 57 25 resources, such as silt, dissolved or suspended solids 57 26 in industrial waste water effluents or discharges 57 27 which are point sources subject to permits under 57 28 section 402 of the federal Water Pollution Control 57 29 Act, or dissolved materials in irrigation return 57 30 flows; or source, special nuclear, or by-product 57 31 material defined by the federal Atomic Energy Act of 57 32 1954. 57 33 A recycling facility that separates or processes 57 34 recyclable materials and that reduces the volume of 57 35 the waste by at least eighty-five percent is exempt 57 36 from the tax imposed by this subsection if the waste 57 37 exempted is collected and disposed of separately from 57 38 other solid waste. 57 39 b. A person who transports solid waste generated 57 40 by that person or another person without compensation 57 41 shall pay the tax imposed by this subsection at the 57 42 collection or disposal facility based on the disposal 57 43 charge or tipping fee. However, the costs of a 57 44 service or portion of a service to collect and manage 57 45 recyclable materials separated from solid waste by the 57 46 waste generator are exempt from the tax imposed by 57 47 this subsection. 57 48 8. a. A tax of five percent is imposed upon the 57 49 sales price from sales of bundled services contracts. 57 50 For purposes of this subsection, a "bundled services 58 1 contract" means an agreement providing for a 58 2 retailer's performance of services, one or more of 58 3 which is a taxable service enumerated in this section 58 4 and one or more of which is not, in return for a 58 5 consumer's or user's single payment for the 58 6 performance of the services, with no separate 58 7 statement to the consumer or user of what portion of 58 8 that payment is attributable to any one service which 58 9 is a part of the contract. 58 10 b. For purposes of the administration of the tax 58 11 on bundled services contracts, the director may enter 58 12 into agreements of limited duration with individual 58 13 retailers, groups of retailers, or organizations 58 14 representing retailers of bundled services contracts. 58 15 Such an agreement shall impose the tax rate only upon 58 16 that portion of the sales price from a bundled 58 17 services contract which is attributable to taxable 58 18 services provided under the contract. 58 19 9. A tax of five percent is imposed upon the sales 58 20 price from any mobile telecommunications service which 58 21 this state is allowed to tax by the provisions of the 58 22 federal Mobile Telecommunications Sourcing Act, Pub. 58 23 L. No. 106-252, 4 U.S.C. } 116 et seq. For purposes 58 24 of this subsection, taxes on mobile telecommunications 58 25 service, as defined under the federal Mobile 58 26 Telecommunications Sourcing Act that are deemed to be 58 27 provided by the customer's home service provider, 58 28 shall be paid to the taxing jurisdiction whose 58 29 territorial limits encompass the customer's place of 58 30 primary use, regardless of where the mobile 58 31 telecommunications service originates, terminates, or 58 32 passes through and shall in all other respects be 58 33 taxed in conformity with the federal Mobile 58 34 Telecommunications Sourcing Act. All other provisions 58 35 of the federal Mobile Telecommunications Sourcing Act 58 36 are adopted by the state of Iowa and incorporated into 58 37 this subsection by reference. With respect to mobile 58 38 telecommunications service under the federal Mobile 58 39 Telecommunications Sourcing Act, the director shall, 58 40 if requested, enter into agreements consistent with 58 41 the provisions of the federal Act. 58 42 10. All revenues arising under the operation of 58 43 the provisions of this section shall be deposited into 58 44 the general fund of the state. 58 45 Sec. 105. NEW SECTION. 423.3 EXEMPTIONS. 58 46 There is exempted from the provisions of this 58 47 subchapter and from the computation of the amount of 58 48 tax imposed by it the following: 58 49 1. The sales price from sales of tangible personal 58 50 property and services furnished which this state is 59 1 prohibited from taxing under the Constitution or laws 59 2 of the United States or under the Constitution of this 59 3 state. 59 4 2. The sales price of sales for resale of tangible 59 5 personal property or taxable services, or for resale 59 6 of tangible personal property in connection with the 59 7 furnishing of taxable services. 59 8 3. The sales price of agricultural breeding 59 9 livestock and domesticated fowl. 59 10 4. The sales price of commercial fertilizer. 59 11 5. The sales price of agricultural limestone, 59 12 herbicide, pesticide, insecticide, including 59 13 adjuvants, surfactants, and other products directly 59 14 related to the application enhancement of those 59 15 products, food, medication, or agricultural drain 59 16 tile, including installation of agricultural drain 59 17 tile, any of which are to be used in disease control, 59 18 weed control, insect control, or health promotion of 59 19 plants or livestock produced as part of agricultural 59 20 production for market. 59 21 6. The sales price of tangible personal property 59 22 which will be consumed as fuel in creating heat, 59 23 power, or steam for grain drying, or for providing 59 24 heat or cooling for livestock buildings or for 59 25 greenhouses or buildings or parts of buildings 59 26 dedicated to the production of flowering, ornamental, 59 27 or vegetable plants intended for sale in the ordinary 59 28 course of business, or for use in cultivation of 59 29 agricultural products by aquaculture, or in implements 59 30 of husbandry engaged in agricultural production. 59 31 7. The sales price of services furnished by 59 32 specialized flying implements of husbandry used for 59 33 agricultural aerial spraying. 59 34 8. The sales price exclusive of services of farm 59 35 machinery and equipment, including auxiliary 59 36 attachments which improve the performance, safety, 59 37 operation, or efficiency of the machinery and 59 38 equipment and replacement parts, if the following 59 39 conditions are met: 59 40 a. The farm machinery and equipment shall be 59 41 directly and primarily used in production of 59 42 agricultural products. 59 43 b. The farm machinery and equipment shall 59 44 constitute self-propelled implements or implements 59 45 customarily drawn or attached to self-propelled 59 46 implements or the farm machinery or equipment is a 59 47 grain dryer. 59 48 c. The replacement part is essential to any repair 59 49 or reconstruction necessary to the farm machinery's or 59 50 equipment's exempt use in the production of 60 1 agricultural products. 60 2 Vehicles subject to registration, as defined in 60 3 section 423.1, or replacement parts for such vehicles, 60 4 are not eligible for this exemption. 60 5 9. The sales price of wood chips, sawdust, hay, 60 6 straw, paper, or other materials used for bedding in 60 7 the production of agricultural livestock or fowl. 60 8 10. The sales price of gas, electricity, water, or 60 9 heat to be used in implements of husbandry engaged in 60 10 agricultural production. 60 11 11. The sales price exclusive of services of farm 60 12 machinery and equipment, including auxiliary 60 13 attachments which improve the performance, safety, 60 14 operation, or efficiency of the machinery and 60 15 equipment and replacement parts, if all of the 60 16 following conditions are met: 60 17 a. The implement, machinery, or equipment is 60 18 directly and primarily used in livestock or dairy 60 19 production, aquaculture production, or the production 60 20 of flowering, ornamental, or vegetable plants. 60 21 b. The implement is not a self-propelled implement 60 22 or implement customarily drawn or attached to self- 60 23 propelled implements. 60 24 c. The replacement part is essential to any repair 60 25 or reconstruction necessary to the farm machinery's or 60 26 equipment's exempt use in livestock or dairy 60 27 production, aquaculture production, or the production 60 28 of flowering, ornamental, or vegetable plants. 60 29 12. The sales price, exclusive of services, from 60 30 sales of irrigation equipment used in farming 60 31 operations. 60 32 13. The sales price from the sale or rental of 60 33 irrigation equipment, whether installed above or below 60 34 ground, to a contractor or farmer if the equipment 60 35 will be primarily used in agricultural operations. 60 36 14. The sales price from the sales of horses, 60 37 commonly known as draft horses, when purchased for use 60 38 and so used as draft horses. 60 39 15. The sales price from the sale of property 60 40 which is a container, label, carton, pallet, packing 60 41 case, wrapping, baling wire, twine, bag, bottle, 60 42 shipping case, or other similar article or receptacle 60 43 sold for use in agricultural, livestock, or dairy 60 44 production. 60 45 16. The sales price from the sale of feed and feed 60 46 supplements and additives when used for consumption by 60 47 farm deer or bison. 60 48 17. The sales price of all goods, wares, or 60 49 merchandise, or services, used for educational 60 50 purposes sold to any private nonprofit educational 61 1 institution in this state. For the purpose of this 61 2 subsection, "educational institution" means an 61 3 institution which primarily functions as a school, 61 4 college, or university with students, faculty, and an 61 5 established curriculum. The faculty of an educational 61 6 institution must be associated with the institution 61 7 and the curriculum must include basic courses which 61 8 are offered every year. "Educational institution" 61 9 includes an institution primarily functioning as a 61 10 library. 61 11 18. The sales price of tangible personal property 61 12 sold, or of services furnished, to the following 61 13 nonprofit corporations: 61 14 a. Residential care facilities and intermediate 61 15 care facilities for persons with mental retardation 61 16 and residential care facilities for persons with 61 17 mental illness licensed by the department of 61 18 inspections and appeals under chapter 135C. 61 19 b. Residential facilities licensed by the 61 20 department of human services pursuant to chapter 237, 61 21 other than those maintained by individuals as defined 61 22 in section 237.1, subsection 7. 61 23 c. Rehabilitation facilities that provide 61 24 accredited rehabilitation services to persons with 61 25 disabilities which are accredited by the commission on 61 26 accreditation of rehabilitation facilities or the 61 27 accreditation council for services for persons with 61 28 mental retardation and other persons with 61 29 developmental disabilities and adult day care services 61 30 approved for reimbursement by the state department of 61 31 human services. 61 32 d. Community mental health centers accredited by 61 33 the department of human services pursuant to chapter 61 34 225C. 61 35 e. Community health centers as defined in 42 61 36 U.S.C. } 254(c) and migrant health centers as defined 61 37 in 42 U.S.C. } 254(b). 61 38 19. The sales price of tangible personal property 61 39 sold to a nonprofit organization which was organized 61 40 for the purpose of lending the tangible personal 61 41 property to the general public for use by them for 61 42 nonprofit purposes. 61 43 20. The sales price of tangible personal property 61 44 sold, or of services furnished, to nonprofit legal aid 61 45 organizations. 61 46 21. The sales price of goods, wares, or 61 47 merchandise, or of services, used for educational, 61 48 scientific, historic preservation, or aesthetic 61 49 purpose sold to a nonprofit private museum. 61 50 22. The sales price from sales of goods, wares, or 62 1 merchandise, or from services furnished, to a 62 2 nonprofit private art center to be used in the 62 3 operation of the art center. 62 4 23. The sales price of tangible personal property 62 5 sold, or of services furnished, by a fair society 62 6 organized under chapter 174. 62 7 24. The sales price from services furnished by the 62 8 notification center established pursuant to section 62 9 480.3, and the vendor selected pursuant to section 62 10 480.3 to provide the notification service. 62 11 25. The sales price of food and beverages sold for 62 12 human consumption by a nonprofit organization which 62 13 principally promotes a food or beverage product for 62 14 human consumption produced, grown, or raised in this 62 15 state and whose income is exempt from federal taxation 62 16 under section 501(c) of the Internal Revenue Code. 62 17 26. The sales price of tangible personal property 62 18 sold, or of services furnished, to a statewide 62 19 nonprofit organ procurement organization, as defined 62 20 in section 142C.2. 62 21 27. The sales price of tangible personal property 62 22 sold, or of services furnished, to a nonprofit 62 23 hospital licensed pursuant to chapter 135B to be used 62 24 in the operation of the hospital. 62 25 28. The sales price of tangible personal property 62 26 sold, or of services furnished, to a freestanding 62 27 nonprofit hospice facility which operates a hospice 62 28 program as defined in 42 C.F.R., ch. IV, } 418.3, 62 29 which property or services are to be used in the 62 30 hospice program. 62 31 29. The sales price of all goods, wares, or 62 32 merchandise sold, or of services furnished, which are 62 33 used in the fulfillment of a written construction 62 34 contract with a nonprofit hospital licensed pursuant 62 35 to chapter 135B if all of the following apply: 62 36 a. The sales and delivery of the goods, wares, or 62 37 merchandise, or the services furnished occurred 62 38 between July 1, 1998, and December 31, 2001. 62 39 b. The written construction contract was entered 62 40 into prior to December 31, 1999, or bonds to fund the 62 41 construction were issued prior to December 31, 1999. 62 42 c. The sales or services were purchased by a 62 43 contractor as the agent for the hospital or were 62 44 purchased directly by the hospital. 62 45 30. The sales price of livestock ear tags sold by 62 46 a nonprofit organization whose income is exempt from 62 47 federal taxation under section 501(c)(6) of the 62 48 Internal Revenue Code where the proceeds are used in 62 49 bovine research programs selected or approved by such 62 50 organization. 63 1 31. The sales price of goods, wares, or 63 2 merchandise sold to and of services furnished, and 63 3 used for public purposes sold to a tax-certifying or 63 4 tax-levying body of the state or a governmental 63 5 subdivision of the state, including regional transit 63 6 systems, as defined in section 324A.1, the state board 63 7 of regents, department of human services, state 63 8 department of transportation, any municipally owned 63 9 solid waste facility which sells all or part of its 63 10 processed waste as fuel to a municipally owned public 63 11 utility, and all divisions, boards, commissions, 63 12 agencies, or instrumentalities of state, federal, 63 13 county, or municipal government which have no earnings 63 14 going to the benefit of an equity investor or 63 15 stockholder, except any of the following: 63 16 a. The sales price of goods, wares, or merchandise 63 17 sold to, or of services furnished, and used by or in 63 18 connection with the operation of any municipally owned 63 19 public utility engaged in selling gas, electricity, 63 20 heat, or pay television service to the general public. 63 21 b. The sales price of furnishing of sewage 63 22 services to a county or municipality on behalf of 63 23 nonresidential commercial operations. 63 24 c. The furnishing of solid waste collection and 63 25 disposal service to a county or municipality on behalf 63 26 of nonresidential commercial operations located within 63 27 the county or municipality. 63 28 The exemption provided by this subsection shall 63 29 also apply to all such sales of goods, wares, or 63 30 merchandise or of services furnished and subject to 63 31 use tax. 63 32 32. The sales price of tangible personal property 63 33 sold, or of services furnished, by a county or city. 63 34 This exemption does not apply to any of the following: 63 35 a. The tax specifically imposed under section 63 36 423.2 on the sales price from sales or furnishing of 63 37 gas, electricity, water, heat, pay television service, 63 38 or communication service to the public by a municipal 63 39 corporation in its proprietary capacity. 63 40 b. The sale or furnishing of solid waste 63 41 collection and disposal service to nonresidential 63 42 commercial operations. 63 43 c. The sale or furnishing of sewage service for 63 44 nonresidential commercial operations. 63 45 d. Fees paid to cities and counties for the 63 46 privilege of participating in any athletic sports. 63 47 33. The sales price of mementos and other items 63 48 relating to Iowa history and historic sites, the 63 49 general assembly, and the state capitol, sold by the 63 50 legislative service bureau and its legislative 64 1 information office on the premises of property under 64 2 the control of the legislative council, at the state 64 3 capitol, and on other state property. 64 4 34. The sales price from sales of mementos and 64 5 other items relating to Iowa history and historic 64 6 sites by the department of cultural affairs on the 64 7 premises of property under its control and at the 64 8 state capitol. 64 9 35. The sales price from sales or services 64 10 furnished by the state fair organized under chapter 64 11 173. 64 12 36. The sales price from sales of tangible 64 13 personal property or of the sale or furnishing of 64 14 electrical energy, natural or artificial gas, or 64 15 communication service to another state or political 64 16 subdivision of another state if the other state 64 17 provides a similar reciprocal exemption for this state 64 18 and political subdivision of this state. 64 19 37. The sales price of services on or connected 64 20 with new construction, reconstruction, alteration, 64 21 expansion, remodeling, or the services of a general 64 22 building contractor, architect, or engineer. 64 23 38. The sales price from the sale of building 64 24 materials, supplies, or equipment sold to rural water 64 25 districts organized under chapter 504A as provided in 64 26 chapter 357A and used for the construction of 64 27 facilities of a rural water district. 64 28 39. The sales price from "casual sales". 64 29 "Casual sales" means: 64 30 a. Sales of tangible personal property, or the 64 31 furnishing of services, of a nonrecurring nature, by 64 32 the owner, if the seller, at the time of the sale, is 64 33 not engaged for profit in the business of selling 64 34 tangible personal property or services taxed under 64 35 section 423.2. 64 36 b. The sale of all or substantially all of the 64 37 tangible personal property or services held or used by 64 38 a seller in the course of the seller's trade or 64 39 business for which the seller is required to hold a 64 40 sales tax permit when the seller sells or otherwise 64 41 transfers the trade or business to another person who 64 42 shall engage in a similar trade or business. 64 43 40. The sales price from the sale of automotive 64 44 fluids to a retailer to be used either in providing a 64 45 service which includes the installation or application 64 46 of the fluids in or on a motor vehicle, which service 64 47 is subject to section 423.2, subsection 6, or to be 64 48 installed in or applied to a motor vehicle which the 64 49 retailer intends to sell, which sale is subject to 64 50 section 423.26. For purposes of this subsection, 65 1 automotive fluids are all those which are refined, 65 2 manufactured, or otherwise processed and packaged for 65 3 sale prior to their installation in or application to 65 4 a motor vehicle. They include but are not limited to 65 5 motor oil and other lubricants, hydraulic fluids, 65 6 brake fluid, transmission fluid, sealants, 65 7 undercoatings, antifreeze, and gasoline additives. 65 8 41. The sales price from the rental of motion 65 9 picture films, video and audio tapes, video and audio 65 10 discs, records, photos, copy, scripts, or other media 65 11 used for the purpose of transmitting that which can be 65 12 seen, heard, or read, if either of the following 65 13 conditions are met: 65 14 a. The lessee imposes a charge for the viewing of 65 15 such media and the charge for the viewing is subject 65 16 to taxation under this subchapter or is subject to use 65 17 tax. 65 18 b. The lessee broadcasts the contents of such 65 19 media for public viewing or listening. 65 20 42. The sales price from the sale of tangible 65 21 personal property consisting of advertising material 65 22 including paper to a person in Iowa if that person or 65 23 that person's agent will, subsequent to the sale, send 65 24 that advertising material outside this state and the 65 25 material is subsequently used solely outside of Iowa. 65 26 For the purpose of this subsection, "advertising 65 27 material" means any brochure, catalog, leaflet, flyer, 65 28 order form, return envelope, or similar item used to 65 29 promote sales of property or services. 65 30 43. The sales price from the sale of property or 65 31 of services performed on property which the retailer 65 32 transfers to a carrier for shipment to a point outside 65 33 of Iowa, places in the United States mail or parcel 65 34 post directed to a point outside of Iowa, or 65 35 transports to a point outside of Iowa by means of the 65 36 retailer's own vehicles, and which is not thereafter 65 37 returned to a point within Iowa, except solely in the 65 38 course of interstate commerce or transportation. This 65 39 exemption shall not apply if the purchaser, consumer, 65 40 or their agent, other than a carrier, takes physical 65 41 possession of the property in Iowa. 65 42 44. The sales price from the sale of property 65 43 which is a container, label, carton, pallet, packing 65 44 case, wrapping paper, twine, bag, bottle, shipping 65 45 case, or other similar article or receptacle sold to 65 46 retailers or manufacturers for the purpose of 65 47 packaging or facilitating the transportation of 65 48 tangible personal property sold at retail or 65 49 transferred in association with the maintenance or 65 50 repair of fabric or clothing. 66 1 45. The sales price from sales or rentals to a 66 2 printer or publisher of the following: acetate; anti- 66 3 halation backing; antistatic spray; back lining; base 66 4 material used as a carrier for light sensitive 66 5 emulsions; blankets; blow-ups; bronze powder; carbon 66 6 tissue; codas; color filters; color separations; 66 7 contacts; continuous tone separations; creative art; 66 8 custom dies and die cutting materials; dampener 66 9 sleeves; dampening solution; design and styling; diazo 66 10 coating; dot etching; dot etching solutions; drawings; 66 11 drawsheets; driers; duplicate films or prints; 66 12 electronically digitized images; electrotypes; end 66 13 product of image modulation; engravings; etch 66 14 solutions; film; finished art or final art; fix; 66 15 fixative spray; flats; flying pasters; foils; 66 16 goldenrod paper; gum; halftones; illustrations; ink; 66 17 ink paste; keylines; lacquer; lasering images; 66 18 layouts; lettering; line negatives and positives; 66 19 linotypes; lithographic offset plates; magnesium and 66 20 zinc etchings; masking paper; masks; masters; mats; 66 21 mat service; metal toner; models and modeling; mylar; 66 22 negatives; nonoffset spray; opaque film process paper; 66 23 opaquing; padding compound; paper stock; photographic 66 24 materials: acids, plastic film, desensitizer 66 25 emulsion, exposure chemicals, fix, developers, and 66 26 paper; photography, day rate; photopolymer coating; 66 27 photographs; photostats; photo-display tape; 66 28 phototypesetter materials; ph-indicator sticks; 66 29 positives; press pack; printing cylinders; printing 66 30 plates, all types; process lettering; proof paper; 66 31 proofs and proof processes, all types; pumice powder; 66 32 purchased author alterations; purchased composition; 66 33 purchased phototypesetting; purchased stripping and 66 34 pasteups; red litho tape; reducers; roller covering; 66 35 screen tints; sketches; stepped plates; stereotypes; 66 36 strip types; substrate; tints; tissue overlays; 66 37 toners; transparencies; tympan; typesetting; 66 38 typography; varnishes; veloxes; wood mounts; and any 66 39 other items used in a like capacity to any of the 66 40 above enumerated items by the printer or publisher to 66 41 complete a finished product for sale at retail. 66 42 Expendable tools and supplies which are not enumerated 66 43 in this subsection are excluded from the exemption. 66 44 "Printer" means that portion of a person's business 66 45 engaged in printing that completes a finished product 66 46 for ultimate sale at retail or means that portion of a 66 47 person's business used to complete a finished printed 66 48 packaging material used to package a product for 66 49 ultimate sale at retail. "Printer" does not mean an 66 50 in-house printer who prints or copyrights its own 67 1 materials. 67 2 46. a. The sales price from the sale or rental of 67 3 computers, machinery, and equipment, including 67 4 replacement parts, and materials used to construct or 67 5 self-construct computers, machinery, and equipment if 67 6 such items are any of the following: 67 7 (1) Directly and primarily used in processing by a 67 8 manufacturer. 67 9 (2) Directly and primarily used to maintain the 67 10 integrity of the product or to maintain unique 67 11 environmental conditions required for either the 67 12 product or the computers, machinery, and equipment 67 13 used in processing by a manufacturer, including test 67 14 equipment used to control quality and specifications 67 15 of the product. 67 16 (3) Directly and primarily used in research and 67 17 development of new products or processes of 67 18 processing. 67 19 (4) Computers used in processing or storage of 67 20 data or information by an insurance company, financial 67 21 institution, or commercial enterprise. 67 22 (5) Directly and primarily used in recycling or 67 23 reprocessing of waste products. 67 24 (6) Pollution-control equipment used by a 67 25 manufacturer, including but not limited to that 67 26 required or certified by an agency of this state or of 67 27 the United States government. 67 28 b. The sales price from the sale of fuel used in 67 29 creating heat, power, steam, or for generating 67 30 electrical current, or from the sale of electricity, 67 31 consumed by computers, machinery, or equipment used in 67 32 an exempt manner described in paragraph "a", 67 33 subparagraph (1), (2), (3), (5), or (6). 67 34 c. The sales price from the sale or rental of the 67 35 following shall not be exempt from the tax imposed by 67 36 this subchapter: 67 37 (1) Hand tools. 67 38 (2) Point-of-sale equipment and computers. 67 39 (3) Industrial machinery, equipment, and 67 40 computers, including pollution-control equipment 67 41 within the scope of section 427A.1, subsection 1, 67 42 paragraphs "h" and "i". 67 43 (4) Vehicles subject to registration, except 67 44 vehicles subject to registration which are directly 67 45 and primarily used in recycling or reprocessing of 67 46 waste products. 67 47 d. As used in this subsection: 67 48 (1) "Commercial enterprise" includes businesses 67 49 and manufacturers conducted for profit and centers for 67 50 data processing services to insurance companies, 68 1 financial institutions, businesses, and manufacturers, 68 2 but excludes professions and occupations and nonprofit 68 3 organizations. 68 4 (2) "Financial institution" means as defined in 68 5 section 527.2. 68 6 (3) "Insurance company" means an insurer organized 68 7 or operating under chapter 508, 514, 515, 518, 518A, 68 8 519, or 520, or authorized to do business in Iowa as 68 9 an insurer or an insurance producer under chapter 68 10 522B. 68 11 (4) "Manufacturer" means as defined in section 68 12 428.20, but also includes contract manufacturers. A 68 13 contract manufacturer is a manufacturer that otherwise 68 14 falls within the definition of manufacturer under 68 15 section 428.20, except that a contract manufacturer 68 16 does not sell the tangible personal property the 68 17 contract manufacturer processes on behalf of other 68 18 manufacturers. A business engaged in activities 68 19 subsequent to the extractive process of quarrying or 68 20 mining, such as crushing, washing, sizing, or blending 68 21 of aggregate materials, is a manufacturer with respect 68 22 to these activities. 68 23 (5) "Processing" means a series of operations in 68 24 which materials are manufactured, refined, purified, 68 25 created, combined, or transformed by a manufacturer, 68 26 ultimately into tangible personal property. 68 27 Processing encompasses all activities commencing with 68 28 the receipt or producing of raw materials by the 68 29 manufacturer and ending at the point products are 68 30 delivered for shipment or transferred from the 68 31 manufacturer. Processing includes but is not limited 68 32 to refinement or purification of materials; treatment 68 33 of materials to change their form, context, or 68 34 condition; maintenance of the quality or integrity of 68 35 materials, components, or products; maintenance of 68 36 environmental conditions necessary for materials, 68 37 components, or products; quality control activities; 68 38 and construction of packaging and shipping devices, 68 39 placement into shipping containers or any type of 68 40 shipping devices or medium, and the movement of 68 41 materials, components, or products until shipment from 68 42 the processor. 68 43 (6) "Receipt or producing of raw materials" means 68 44 activities performed upon tangible personal property 68 45 only. With respect to raw materials produced from or 68 46 upon real estate, the receipt or producing of raw 68 47 materials is deemed to occur immediately following the 68 48 severance of the raw materials from the real estate. 68 49 47. The sales price from the furnishing of the 68 50 design and installation of new industrial machinery or 69 1 equipment, including electrical and electronic 69 2 installation. 69 3 48. The sales price from the sale of carbon 69 4 dioxide in a liquid, solid, or gaseous form, 69 5 electricity, steam, and other taxable services when 69 6 used by a manufacturer of food products to produce 69 7 marketable food products for human consumption, 69 8 including but not limited to treatment of material to 69 9 change its form, context, or condition, in order to 69 10 produce the food product, maintenance of quality or 69 11 integrity of the food product, changing or maintenance 69 12 of temperature levels necessary to avoid spoilage or 69 13 to hold the food product in marketable condition, 69 14 maintenance of environmental conditions necessary for 69 15 the safe or efficient use of machinery and material 69 16 used to produce the food product, sanitation and 69 17 quality control activities, formation of packaging, 69 18 placement into shipping containers, and movement of 69 19 the material or food product until shipment from the 69 20 building of manufacture. 69 21 49. The sales price of sales of electricity, 69 22 steam, or any taxable service when purchased and used 69 23 in the processing of tangible personal property 69 24 intended to be sold ultimately at retail. 69 25 50. The sales price of tangible personal property 69 26 sold for processing. Tangible personal property is 69 27 sold for processing within the meaning of this 69 28 subsection only when it is intended that the property 69 29 will, by means of fabrication, compounding, 69 30 manufacturing, or germination, become an integral part 69 31 of other tangible personal property intended to be 69 32 sold ultimately at retail; or for generating electric 69 33 current; or the property is a chemical, solvent, 69 34 sorbent, or reagent, which is directly used and is 69 35 consumed, dissipated, or depleted, in processing 69 36 tangible personal property which is intended to be 69 37 sold ultimately at retail or consumed in the 69 38 maintenance or repair of fabric or clothing, and which 69 39 may not become a component or integral part of the 69 40 finished product. The distribution to the public of 69 41 free newspapers or shoppers guides is a retail sale 69 42 for purposes of the processing exemption set out in 69 43 this subsection and in subsection 49. 69 44 51. The sales price from the sale of argon and 69 45 other similar gases to be used in the manufacturing 69 46 process. 69 47 52. The sales price from the sale of electricity 69 48 to water companies assessed for property tax pursuant 69 49 to sections 428.24, 428.26, and 428.28 which is used 69 50 solely for the purpose of pumping water from a river 70 1 or well. 70 2 53. The sales price from the sale of wind energy 70 3 conversion property to be used as an electric power 70 4 source and the sale of the materials used to 70 5 manufacture, install, or construct wind energy 70 6 conversion property used or to be used as an electric 70 7 power source. 70 8 For purposes of this subsection, "wind energy 70 9 conversion property" means any device, including, but 70 10 not limited to, a wind charger, windmill, wind 70 11 turbine, tower and electrical equipment, pad mount 70 12 transformers, power lines, and substation, which 70 13 converts wind energy to a form of usable energy. 70 14 54. The sales price from the sales of newspapers, 70 15 free newspapers, or shoppers guides and the printing 70 16 and publishing of such newspapers and shoppers guides, 70 17 and envelopes for advertising. 70 18 55. The sales price from the sale of motor fuel 70 19 and special fuel consumed for highway use or in 70 20 watercraft or aircraft where the fuel tax has been 70 21 imposed and paid and no refund has been or will be 70 22 allowed and the sales price from the sales of ethanol 70 23 blended gasoline, as defined in section 452A.2. 70 24 56. The sales price from all sales of food and 70 25 food ingredients. However, as used in this 70 26 subsection, "food" does not include alcoholic 70 27 beverages, candy, dietary supplements, food sold 70 28 through vending machines, prepared food, soft drinks, 70 29 and tobacco. 70 30 For the purposes of this subsection: 70 31 a. "Alcoholic beverages" means beverages that are 70 32 suitable for human consumption and contain one-half of 70 33 one percent or more of alcohol by volume. 70 34 b. "Candy" means a preparation of sugar, honey, or 70 35 other natural or artificial sweeteners in combination 70 36 with chocolate, fruits, nuts, or other ingredients or 70 37 flavorings in the form of bars, drops, or pieces. 70 38 Candy shall not include any preparation containing 70 39 flour and shall require no refrigeration. 70 40 c. "Dietary supplement" means any product, other 70 41 than tobacco, intended to supplement the diet that 70 42 contains one or more of the following dietary 70 43 ingredients: 70 44 (1) A vitamin. 70 45 (2) A mineral. 70 46 (3) An herb or other botanical. 70 47 (4) An amino acid. 70 48 (5) A dietary substance for use by humans to 70 49 supplement the diet by increasing the total dietary 70 50 intake. 71 1 (6) A concentrate, metabolite, constituent, 71 2 extract, or combination of any of the ingredients in 71 3 subparagraphs (1) through (5) that is intended for 71 4 ingestion in tablet, capsule, powder, softgel, gelcap, 71 5 or liquid form, or if not intended for ingestion in 71 6 such a form, is not represented as conventional food 71 7 and is not represented for use as a sole item of a 71 8 meal or of the diet; and is required to be labeled as 71 9 a dietary supplement, identifiable by the "supplement 71 10 facts" box found on the label and as required pursuant 71 11 to 21 C.F.R. } 101.36. 71 12 d. "Food and food ingredients" means substances, 71 13 whether in liquid, concentrated, solid, frozen, dried, 71 14 or dehydrated form, that are sold for ingestion or 71 15 chewing by humans and are consumed for their taste or 71 16 nutritional value. 71 17 e. "Food sold through vending machines" means food 71 18 dispensed from a machine or other mechanical device 71 19 that accepts payment, other than food which would be 71 20 qualified for exemption under subsection 57 if 71 21 purchased with a coupon described in subsection 57. 71 22 f. "Prepared food" means any of following: 71 23 (1) Food sold in a heated state or heated by the 71 24 seller, including food sold by a caterer. 71 25 (2) Two or more food ingredients mixed or combined 71 26 by the seller for sale as a single item. 71 27 (3) "Prepared food", for the purposes of this 71 28 paragraph, does not include food that is any of the 71 29 following: 71 30 (a) Only cut, repackaged, or pasteurized by the 71 31 seller. 71 32 (b) Eggs, fish, meat, poultry, and foods 71 33 containing these raw animal foods requiring cooking by 71 34 the consumer as recommended by the United States food 71 35 and drug administration in chapter 3, part 401.11 of 71 36 its food code, so as to prevent food borne illnesses. 71 37 (c) Bakery items sold by the seller which baked 71 38 them. The words "bakery items" includes but is not 71 39 limited to breads, rolls, buns, biscuits, bagels, 71 40 croissants, pastries, donuts, Danish, cakes, tortes, 71 41 pies, tarts, muffins, bars, cookies, and tortillas. 71 42 (d) Food sold without eating utensils provided by 71 43 the seller in an unheated state as a single item which 71 44 is priced by weight or volume. 71 45 (4) Food sold with eating utensils provided by the 71 46 seller, including plates, knives, forks, spoons, 71 47 glasses, cups, napkins, or straws. A plate does not 71 48 include a container or packaging used to transport 71 49 food. 71 50 g. "Soft drinks" means nonalcoholic beverages that 72 1 contain natural or artificial sweeteners. "Soft 72 2 drinks" does not include beverages that contain milk 72 3 or milk products; soy, rice, or similar milk 72 4 substitutes; or greater than fifty percent of 72 5 vegetable or fruit juice by volume. 72 6 f. "Tobacco" means cigarettes, cigars, chewing or 72 7 pipe tobacco, or any other item that contains tobacco. 72 8 57. The sales price from the sale of items 72 9 purchased with coupons issued under the federal Food 72 10 Stamp Act of 1977, 7 U.S.C. } 2011 et seq. 72 11 58. In transactions in which tangible personal 72 12 property is traded toward the sales price of other 72 13 tangible personal property, that portion of the sales 72 14 price which is not payable in money to the retailer is 72 15 exempted from the taxable amount if the following 72 16 conditions are met: 72 17 a. The tangible personal property traded to the 72 18 retailer is the type of property normally sold in the 72 19 regular course of the retailer's business. 72 20 b. The tangible personal property traded to the 72 21 retailer is intended by the retailer to be ultimately 72 22 sold at retail or is intended to be used by the 72 23 retailer or another in the remanufacturing of a like 72 24 item. 72 25 59. The sales price from the sale or rental of 72 26 prescription drugs or medical devices intended for 72 27 human use or consumption. 72 28 For the purposes of this subsection: 72 29 a. "Drug" means a compound, substance, or 72 30 preparation, and any component of a compound, 72 31 substance, or preparation, other than food and food 72 32 ingredients, dietary supplements, or alcoholic 72 33 beverages which is any of the following: 72 34 (1) Recognized in the official United States 72 35 pharmacopoeia, official homeopathic pharmacopoeia of 72 36 the United States, or official national formulary, and 72 37 supplement to any of them. 72 38 (2) Intended for use in the diagnosis, cure, 72 39 mitigation, treatment, or prevention of disease. 72 40 (3) Intended to affect the structure or any 72 41 function of the body. 72 42 b. "Medical device" means equipment or a supply, 72 43 intended to be prescribed by a practitioner, including 72 44 orthopedic or orthotic devices. However, "medical 72 45 device" also includes prosthetic devices, ostomy, 72 46 urological, and tracheostomy equipment and supplies, 72 47 and diabetic testing materials, hypodermic syringes 72 48 and needles, anesthesia trays, biopsy trays and biopsy 72 49 needles, cannula systems, catheter trays and invasive 72 50 catheters, dialyzers, drug infusion devices, fistula 73 1 sets, hemodialysis devices, insulin infusion devices, 73 2 intraocular lenses, irrigation solutions, intravenous 73 3 administering sets, solutions and stopcocks, myelogram 73 4 trays, nebulizers, small vein infusion kits, spinal 73 5 puncture trays, transfusion sets, venous blood sets, 73 6 and oxygen equipment, intended to be dispensed for 73 7 human use with or without a prescription to an 73 8 ultimate user. 73 9 c. "Practitioner" means a practitioner as defined 73 10 in section 155A.3, or a person licensed to prescribe 73 11 drugs. 73 12 d. "Prescription drug" means a drug intended to be 73 13 dispensed to an ultimate user pursuant to a 73 14 prescription drug order, formula, or recipe issued in 73 15 any form of oral, written, electronic, or other means 73 16 of transmission by a duly licensed practitioner, or 73 17 oxygen or insulin dispensed for human consumption with 73 18 or without a prescription drug order or medication 73 19 order. 73 20 e. "Prosthetic device" means a replacement, 73 21 corrective, or supportive device including repair and 73 22 replacement parts for the same worn on or in the body 73 23 to do any of the following: 73 24 (1) Artificially replace a missing portion of the 73 25 body. 73 26 (2) Prevent or correct physical deformity or 73 27 malfunction. 73 28 (3) Support a weak or deformed portion of the 73 29 body. 73 30 f. "Ultimate user" means an individual who has 73 31 lawfully obtained and possesses a prescription drug or 73 32 medical device for the individual's own use or for the 73 33 use of a member of the individual's household, or an 73 34 individual to whom a prescription drug or medical 73 35 device has been lawfully supplied, administered, 73 36 dispensed, or prescribed. 73 37 60. The sales price from services furnished by 73 38 aerial commercial and charter transportation services. 73 39 61. The sales price from the sale of raffle 73 40 tickets for a raffle licensed pursuant to section 73 41 99B.5. 73 42 62. The sales price from the sale of tangible 73 43 personal property which will be given as prizes to 73 44 players in games of skill, games of chance, raffles, 73 45 and bingo games as defined in chapter 99B. 73 46 63. The sales price from the sale of a modular 73 47 home, as defined in section 435.1, to the extent of 73 48 the portion of the purchase price of the modular home 73 49 which is not attributable to the cost of the tangible 73 50 personal property used in the processing of the 74 1 modular home. For purposes of this exemption, the 74 2 portion of the purchase price which is not 74 3 attributable to the cost of the tangible personal 74 4 property used in the processing of the modular home is 74 5 forty percent. 74 6 64. The sales price from charges paid to a 74 7 provider for access to on-line computer services. For 74 8 purposes of this subsection, "on-line computer 74 9 service" means a service that provides or enables 74 10 computer access by multiple users to the internet or 74 11 to other information made available through a computer 74 12 server. 74 13 65. The sales price from the sale or rental of 74 14 information services. "Information services" means 74 15 every business activity, process, or function by which 74 16 a seller or its agent accumulates, prepares, 74 17 organizes, or conveys data, facts, knowledge, 74 18 procedures, and like services to a buyer or its agent 74 19 of such information through any tangible or intangible 74 20 medium. Information accumulated, prepared, or 74 21 organized for a buyer or its agent is an information 74 22 service even though it may incorporate preexisting 74 23 components of data or other information. "Information 74 24 services" includes, but is not limited to, database 74 25 files, mailing lists, subscription files, market 74 26 research, credit reports, surveys, real estate 74 27 listings, bond rating reports, abstracts of title, bad 74 28 check lists, broadcasting rating services, wire 74 29 services, and scouting reports, or other similar 74 30 items. 74 31 66. The sales price of a sale at retail if the 74 32 substance of the transaction is delivered to the 74 33 purchaser digitally, electronically, or utilizing 74 34 cable, or by radio waves, microwaves, satellites, or 74 35 fiber optics. 74 36 67. a. The sales price from the sale of an 74 37 article of clothing designed to be worn on or about 74 38 the human body if all of the following apply: 74 39 (1) The sales price of the article is less than 74 40 one hundred dollars. 74 41 (2) The sale takes place during a period beginning 74 42 at 12:01 a.m. on the first Friday in August and ending 74 43 at midnight on the following Saturday. 74 44 b. This subsection does not apply to any of the 74 45 following: 74 46 (1) Sport or recreational equipment and protective 74 47 equipment. 74 48 (2) Clothing accessories or equipment. 74 49 (3) The rental of clothing. 74 50 c. For purposes of this subsection: 75 1 (1) "Clothing" means all human wearing apparel 75 2 suitable for general use. "Clothing" includes, but is 75 3 not limited to the following: aprons, household and 75 4 shop; athletic supporters; baby receiving blankets; 75 5 bathing suits and caps; beach capes and coats; belts 75 6 and suspenders; boots; coats and jackets; costumes; 75 7 diapers (children and adults, including disposable 75 8 diapers); earmuffs; footlets; formal wear; garters and 75 9 garter belts; girdles; gloves and mittens for general 75 10 use; hats and caps; hosiery; insoles for shoes; lab 75 11 coats; neckties; overshoes; pantyhose; rainwear; 75 12 rubber pants; sandals; scarves; shoes and shoelaces; 75 13 slippers; sneakers; socks and stockings; steel-toed 75 14 shoes; underwear; uniforms, athletic and nonathletic; 75 15 and wedding apparel. 75 16 "Clothing" does not include the following: belt 75 17 buckles sold separately; costume masks sold 75 18 separately; patches and emblems sold separately; 75 19 sewing equipment and supplies (including, but not 75 20 limited to, knitting needles, patterns, pins, 75 21 scissors, sewing machines, sewing needles, tape 75 22 measures, and thimbles); and sewing materials that 75 23 become part of clothing (including, but not limited 75 24 to, buttons, fabric, lace, thread, yarn, and zippers). 75 25 (2) "Clothing accessories or equipment" means 75 26 incidental items worn on the person or in conjunction 75 27 with clothing. "Clothing accessories or equipment" 75 28 includes, but is not limited to, the following: 75 29 briefcases; cosmetics; hair notions (including, but 75 30 not limited to, barrettes, hair bows, and hair nets); 75 31 handbags; handkerchiefs; jewelry; sunglasses, 75 32 nonprescription; umbrellas; wallets; watches; and wigs 75 33 and hairpieces. 75 34 (3) "Protective equipment" means items for human 75 35 wear and designed as protection for the wearer against 75 36 injury or disease or as protection against damage or 75 37 injury of other persons or property but not suitable 75 38 for general use. "Protective equipment" includes, but 75 39 is not limited to, the following: breathing masks; 75 40 clean room apparel and equipment; ear and hearing 75 41 protectors; face shields; hard hats; helmets; paint or 75 42 dust respirators; protective gloves; safety glasses 75 43 and goggles; safety belts; tool belts; and welders 75 44 gloves and masks. 75 45 (4) "Sport or recreational equipment" means items 75 46 designed for human use and worn in conjunction with an 75 47 athletic or recreational activity that are not 75 48 suitable for general use. "Sport or recreational 75 49 equipment" includes, but is not limited to, the 75 50 following: ballet and tap shoes; cleated or spiked 76 1 athletic shoes; gloves (including, but not limited to, 76 2 baseball, bowling, boxing, hockey, and golf); goggles; 76 3 hand and elbow guards; life preservers and vests; 76 4 mouth guards; roller and ice skates; shin guards; 76 5 shoulder pads; ski boots; waders; and wetsuits and 76 6 fins. 76 7 68. a. Subject to paragraph "b", the sales price 76 8 from the sale or furnishing of metered gas, 76 9 electricity, and fuel, including propane and heating 76 10 oil, to residential customers which is used to provide 76 11 energy for residential dwellings and units of 76 12 apartment and condominium complexes used for human 76 13 occupancy. 76 14 b. The exemption in this subsection shall be 76 15 phased in by means of a reduction in the tax rate as 76 16 follows: 76 17 (1) If the date of the utility billing or meter 76 18 reading cycle of the residential customer for the sale 76 19 or furnishing of metered gas and electricity is on or 76 20 after January 1, 2002, through December 31, 2002, or 76 21 if the sale or furnishing of fuel for purposes of 76 22 residential energy and the delivery of the fuel occurs 76 23 on or after January 1, 2002, through December 31, 76 24 2002, the rate of tax is four percent of the sales 76 25 price. 76 26 (2) If the date of the utility billing or meter 76 27 reading cycle of the residential customer for the sale 76 28 or furnishing of metered gas and electricity is on or 76 29 after January 1, 2003, through June 30, 2008, or if 76 30 the sale or furnishing of fuel for purposes of 76 31 residential energy and the delivery of the fuel occurs 76 32 on or after January 1, 2003, through June 30, 2008, 76 33 the rate of tax is three percent of the sales price. 76 34 (3) If the date of the utility billing or meter 76 35 reading cycle of the residential customer for the sale 76 36 or furnishing of metered gas and electricity is on or 76 37 after July 1, 2008, through June 30, 2009, or if the 76 38 sale or furnishing of fuel for purposes of residential 76 39 energy and the delivery of the fuel occurs on or after 76 40 July 1, 2008, through June 30, 2009, the rate of tax 76 41 is two percent of the sales price. 76 42 (4) If the date of the utility billing or meter 76 43 reading cycle of the residential customer for the sale 76 44 or furnishing of metered gas and electricity is on or 76 45 after July 1, 2009, through June 30, 2010, or if the 76 46 sale or furnishing of fuel for purposes of residential 76 47 energy and the delivery of the fuel occurs on or after 76 48 July 1, 2009, through June 30, 2010, the rate of tax 76 49 is one percent of the sales price. 76 50 (5) If the date of the utility billing or meter 77 1 reading cycle of the residential customer for the sale 77 2 or furnishing of metered gas and electricity is on or 77 3 after July 1, 2010, or if the sale, furnishing, or 77 4 service of fuel for purposes of residential energy and 77 5 the delivery of the fuel occurs on or after July 1, 77 6 2010, the rate of tax is zero percent of the sales 77 7 price. 77 8 c. The exemption in this subsection does not apply 77 9 to local option sales and services tax imposed 77 10 pursuant to chapters 423B and 423E. 77 11 69. The sales price from charges paid for the 77 12 delivery of electricity or natural gas if the sale or 77 13 furnishing of the electricity or natural gas or its 77 14 use is exempt from the tax on sales prices imposed 77 15 under this subchapter or from the use tax imposed 77 16 under subchapter III. 77 17 70. The sales price from the sales, furnishing, or 77 18 service of transportation service except the rental of 77 19 recreational vehicles or recreational boats, except 77 20 the rental of motor vehicles subject to registration 77 21 which are registered for a gross weight of thirteen 77 22 tons or less for a period of sixty days or less, and 77 23 except the rental of aircraft for a period of sixty 77 24 days or less. This exemption does not apply to the 77 25 transportation of electric energy or natural gas. 77 26 71. The sales price from sales of tangible 77 27 personal property used or to be used as railroad 77 28 rolling stock for transporting persons or property, or 77 29 as materials or parts therefor. 77 30 72. The sales price from the sales of special fuel 77 31 for diesel engines consumed or used in the operation 77 32 of ships, barges, or waterborne vessels which are used 77 33 primarily in or for the transportation of property or 77 34 cargo, or the conveyance of persons for hire on rivers 77 35 bordering on the state if the fuel is delivered by the 77 36 seller to the purchaser's barge, ship, or waterborne 77 37 vessel while it is afloat upon such a river. 77 38 73. The sales price from sales of vehicles subject 77 39 to registration or subject only to the issuance of a 77 40 certificate of title and sales of aircraft subject to 77 41 registration under section 328.20. 77 42 74. The sales price from the sale of aircraft for 77 43 use in a scheduled interstate federal aviation 77 44 administration certificated air carrier operation. 77 45 75. The sales price from the sale or rental of 77 46 aircraft; the sale or rental of tangible personal 77 47 property permanently affixed or attached as a 77 48 component part of the aircraft, including but not 77 49 limited to repair or replacement materials or parts; 77 50 and the sales price of all services used for aircraft 78 1 repair, remodeling, and maintenance services when such 78 2 services are performed on aircraft, aircraft engines, 78 3 or aircraft component materials or parts. For the 78 4 purposes of this exemption, "aircraft" means aircraft 78 5 used in a scheduled interstate federal aviation 78 6 administration certificated air carrier operation. 78 7 76. The sales price from the sale or rental of 78 8 tangible personal property permanently affixed or 78 9 attached as a component part of the aircraft, 78 10 including but not limited to repair or replacement 78 11 materials or parts; and the sales price of all 78 12 services used for aircraft repair, remodeling, and 78 13 maintenance services when such services are performed 78 14 on aircraft, aircraft engines, or aircraft component 78 15 materials or parts. For the purposes of this 78 16 exemption, "aircraft" means aircraft used in 78 17 nonscheduled interstate federal aviation 78 18 administration certificated air carrier operation 78 19 operating under 14 C.F.R. ch. 1, pt. 135. 78 20 77. The sales price from the sale of aircraft to 78 21 an aircraft dealer who in turn rents or leases the 78 22 aircraft if all of the following apply: 78 23 a. The aircraft is kept in the inventory of the 78 24 dealer for sale at all times. 78 25 b. The dealer reserves the right to immediately 78 26 take the aircraft from the renter or lessee when a 78 27 buyer is found. 78 28 c. The renter or lessee is aware that the dealer 78 29 will immediately take the aircraft when a buyer is 78 30 found. 78 31 If an aircraft exempt under this subsection is used 78 32 for any purpose other than leasing or renting, or the 78 33 conditions in paragraphs "a", "b", and "c" are not 78 34 continuously met, the dealer claiming the exemption 78 35 under this subsection is liable for the tax that would 78 36 have been due except for this subsection. The tax 78 37 shall be computed upon the original purchase price. 78 38 78. The sales price from sales or rental of 78 39 tangible personal property, or services rendered by 78 40 any entity where the profits from the sales or rental 78 41 of the tangible personal property, or services 78 42 rendered are used by or donated to a nonprofit entity 78 43 which is exempt from federal income taxation pursuant 78 44 to section 501(c)(3) of the Internal Revenue Code, a 78 45 government entity, or a nonprofit private educational 78 46 institution, and where the entire proceeds from the 78 47 sales, rental, or services are expended for any of the 78 48 following purposes: 78 49 a. Educational. 78 50 b. Religious. 79 1 c. Charitable. A charitable act is an act done 79 2 out of goodwill, benevolence, and a desire to add to 79 3 or to improve the good of humankind in general or any 79 4 class or portion of humankind, with no pecuniary 79 5 profit inuring to the person performing the service or 79 6 giving the gift. 79 7 This exemption does not apply to the sales price 79 8 from games of skill, games of chance, raffles, and 79 9 bingo games as defined in chapter 99B. This exemption 79 10 is disallowed on the amount of the sales price only to 79 11 the extent the profits from the sales, rental, or 79 12 services are not used by or donated to the appropriate 79 13 entity and expended for educational, religious, or 79 14 charitable purposes. 79 15 79. The sales price from the sale or rental of 79 16 tangible personal property or from services furnished 79 17 to a recognized community action agency as provided in 79 18 section 216A.93 to be used for the purposes of the 79 19 agency. 79 20 80. a. For purposes of this subsection, 79 21 "designated exempt entity" means an entity which is 79 22 designated in section 423.4, subsection 1. 79 23 b. If a contractor, subcontractor, or builder is 79 24 to use building materials, supplies, and equipment in 79 25 the performance of a construction contract with a 79 26 designated exempt entity, the person shall purchase 79 27 such items of tangible personal property without 79 28 liability for the tax if such property will be used in 79 29 the performance of the construction contract and a 79 30 purchasing agent authorization letter and an exemption 79 31 certificate, issued by the designated exempt entity, 79 32 are presented to the retailer. 79 33 c. Where the owner, contractor, subcontractor, or 79 34 builder is also a retailer holding a retail sales tax 79 35 permit and transacting retail sales of building 79 36 materials, supplies, and equipment, the tax shall not 79 37 be due when materials are withdrawn from inventory for 79 38 use in construction performed for a designated exempt 79 39 entity if an exemption certificate is received from 79 40 such entity. 79 41 d. Tax shall not apply to tangible personal 79 42 property purchased and consumed by a manufacturer as 79 43 building materials, supplies, or equipment in the 79 44 performance of a construction contract for a 79 45 designated exempt entity, if a purchasing agent 79 46 authorization letter and an exemption certificate are 79 47 received from such entity and presented to a retailer. 79 48 81. The sales price from the sales of lottery 79 49 tickets or shares pursuant to chapter 99G. 79 50 82. The sales price from the sale or rental of 80 1 core and mold making equipment and sand handling 80 2 equipment directly and primarily used in the mold 80 3 making process by a foundry. 80 4 83. The sales price from noncustomer point of sale 80 5 or noncustomer automated teller machine access or 80 6 service charges assessed by a financial institution. 80 7 For purposes of this subsection, "financial 80 8 institution" means the same as defined in section 80 9 527.2. 80 10 Sec. 106. NEW SECTION. 423.4 REFUNDS. 80 11 1. A private nonprofit educational institution in 80 12 this state, nonprofit private museum in this state, 80 13 tax-certifying or tax-levying body or governmental 80 14 subdivision of the state, including the state board of 80 15 regents, state department of human services, state 80 16 department of transportation, a municipally owned 80 17 solid waste facility which sells all or part of its 80 18 processed waste as fuel to a municipally owned public 80 19 utility, and all divisions, boards, commissions, 80 20 agencies, or instrumentalities of state, federal, 80 21 county, or municipal government which do not have 80 22 earnings going to the benefit of an equity investor or 80 23 stockholder, may make application to the department 80 24 for the refund of the sales or use tax upon the sales 80 25 price of all sales of goods, wares, or merchandise, or 80 26 from services furnished to a contractor, used in the 80 27 fulfillment of a written contract with the state of 80 28 Iowa, any political subdivision of the state, or a 80 29 division, board, commission, agency, or 80 30 instrumentality of the state or a political 80 31 subdivision, a private nonprofit educational 80 32 institution in this state, or a nonprofit private 80 33 museum in this state if the property becomes an 80 34 integral part of the project under contract and at the 80 35 completion of the project becomes public property, is 80 36 devoted to educational uses, or becomes a nonprofit 80 37 private museum; except goods, wares, or merchandise, 80 38 or services furnished which are used in the 80 39 performance of any contract in connection with the 80 40 operation of any municipal utility engaged in selling 80 41 gas, electricity, or heat to the general public or in 80 42 connection with the operation of a municipal pay 80 43 television system; and except goods, wares, and 80 44 merchandise used in the performance of a contract for 80 45 a "project" under chapter 419 as defined in that 80 46 chapter other than goods, wares, or merchandise used 80 47 in the performance of a contract for a "project" under 80 48 chapter 419 for which a bond issue was approved by a 80 49 municipality prior to July 1, 1968, or for which the 80 50 goods, wares, or merchandise becomes an integral part 81 1 of the project under contract and at the completion of 81 2 the project becomes public property or is devoted to 81 3 educational uses. 81 4 a. Such contractor shall state under oath, on 81 5 forms provided by the department, the amount of such 81 6 sales of goods, wares, or merchandise, or services 81 7 furnished and used in the performance of such 81 8 contract, and upon which sales or use tax has been 81 9 paid, and shall file such forms with the governmental 81 10 unit, private nonprofit educational institution, or 81 11 nonprofit private museum which has made any written 81 12 contract for performance by the contractor. The forms 81 13 shall be filed by the contractor with the governmental 81 14 unit, educational institution, or nonprofit private 81 15 museum before final settlement is made. 81 16 b. Such governmental unit, educational 81 17 institution, or nonprofit private museum shall, not 81 18 more than one year after the final settlement has been 81 19 made, make application to the department for any 81 20 refund of the amount of the sales or use tax which 81 21 shall have been paid upon any goods, wares, or 81 22 merchandise, or services furnished, the application to 81 23 be made in the manner and upon forms to be provided by 81 24 the department, and the department shall forthwith 81 25 audit the claim and, if approved, issue a warrant to 81 26 the governmental unit, educational institution, or 81 27 nonprofit private museum in the amount of the sales or 81 28 use tax which has been paid to the state of Iowa under 81 29 the contract. 81 30 Refunds authorized under this subsection shall 81 31 accrue interest at the rate in effect under section 81 32 421.7 from the first day of the second calendar month 81 33 following the date the refund claim is received by the 81 34 department. 81 35 c. Any contractor who willfully makes a false 81 36 report of tax paid under the provisions of this 81 37 subsection is guilty of a simple misdemeanor and in 81 38 addition shall be liable for the payment of the tax 81 39 and any applicable penalty and interest. 81 40 2. The refund of sales and use tax paid on 81 41 transportation construction projects let by the state 81 42 department of transportation is subject to the special 81 43 provisions of this subsection. 81 44 a. A contractor awarded a contract for a 81 45 transportation construction project is considered the 81 46 consumer of all building materials, building supplies, 81 47 and equipment and shall pay sales tax to the supplier 81 48 or remit consumer use tax directly to the department. 81 49 b. The contractor is not required to file 81 50 information with the state department of 82 1 transportation stating the amount of goods, wares, or 82 2 merchandise, or services rendered, furnished, or 82 3 performed and used in the performance of the contract 82 4 or the amount of sales or use tax paid. 82 5 c. The state department of transportation shall 82 6 file a refund claim based on a formula that considers 82 7 the following: 82 8 (1) The quantity of material to complete the 82 9 contract, and quantities of items of work. 82 10 (2) The estimated cost of these materials included 82 11 in the items of work, and the state sales or use tax 82 12 to be paid on the tax rate in effect in section 423.2. 82 13 The quantity of materials shall be determined after 82 14 each letting based on the contract quantities of all 82 15 items of work let to contract. The quantity of 82 16 individual component materials required for each item 82 17 shall be determined and maintained in a database. The 82 18 total quantities of materials shall be determined by 82 19 multiplying the quantities of component materials for 82 20 each contract item of work by the total quantities of 82 21 each contract item for each letting. Where variances 82 22 exist in the cost of materials, the lowest cost shall 82 23 be used as the base cost. 82 24 d. Only the state sales or use tax is refundable. 82 25 Local option taxes paid by the contractor are not 82 26 refundable. 82 27 3. A relief agency may apply to the director for 82 28 refund of the amount of sales or use tax imposed and 82 29 paid upon sales to it of any goods, wares, 82 30 merchandise, or services furnished, used for free 82 31 distribution to the poor and needy. 82 32 a. The refunds may be obtained only in the 82 33 following amounts and manner and only under the 82 34 following conditions: 82 35 (1) On forms furnished by the department, and 82 36 filed within the time as the director shall provide by 82 37 rule, the relief agency shall report to the department 82 38 the total amount or amounts, valued in money, expended 82 39 directly or indirectly for goods, wares, merchandise, 82 40 or services furnished, used for free distribution to 82 41 the poor and needy. 82 42 (2) On these forms the relief agency shall 82 43 separately list the persons making the sales to it or 82 44 to its order, together with the dates of the sales, 82 45 and the total amount so expended by the relief agency. 82 46 (3) The relief agency must prove to the 82 47 satisfaction of the director that the person making 82 48 the sales has included the amount thereof in the 82 49 computation of the sales price of such person and that 82 50 such person has paid the tax levied by this subchapter 83 1 or subchapter III, based upon such computation of the 83 2 sales price. 83 3 b. If satisfied that the foregoing conditions and 83 4 requirements have been complied with, the director 83 5 shall refund the amount claimed by the relief agency. 83 6 SUBCHAPTER III 83 7 USE TAX 83 8 Sec. 107. NEW SECTION. 423.5 IMPOSITION OF TAX. 83 9 An excise tax at the rate of five percent of the 83 10 purchase price or installed purchase price is imposed 83 11 on the following: 83 12 1. The use in this state of tangible personal 83 13 property as defined in section 423.1, including 83 14 aircraft subject to registration under section 328.20, 83 15 purchased for use in this state. For the purposes of 83 16 this subchapter, the furnishing or use of the 83 17 following services is also treated as the use of 83 18 tangible personal property: optional service or 83 19 warranty contracts, except residential service 83 20 contracts regulated under chapter 523C, vulcanizing, 83 21 recapping, or retreading services, engraving, 83 22 photography, retouching, printing, or binding 83 23 services, and communication service when furnished or 83 24 delivered to consumers or users within this state. 83 25 2. The use of manufactured housing in this state, 83 26 on the purchase price if the manufactured housing is 83 27 sold in the form of tangible personal property or on 83 28 the installed purchase price if the manufactured 83 29 housing is sold in the form of realty. 83 30 3. The use of leased vehicles, on the amount 83 31 subject to tax as calculated pursuant to section 83 32 423.27. 83 33 4. Purchases of tangible personal property made 83 34 from the government of the United States or any of its 83 35 agencies by ultimate consumers shall be subject to the 83 36 tax imposed by this section. Services purchased from 83 37 the same source or sources shall be subject to the 83 38 service tax imposed by this subchapter and apply to 83 39 the user of the services. 83 40 5. The use in this state of services enumerated in 83 41 section 423.2. This tax is applicable where services 83 42 are furnished in this state or where the product or 83 43 result of the service is used in this state. 83 44 6. The excise tax is imposed upon every person 83 45 using the property within this state until the tax has 83 46 been paid directly to the county treasurer, the state 83 47 department of transportation, a retailer, or the 83 48 department. This tax is imposed on every person using 83 49 the services or the product of the services in this 83 50 state until the user has paid the tax either to an 84 1 Iowa use tax permit holder or to the department. 84 2 7. For the purpose of the proper administration of 84 3 the use tax and to prevent its evasion, evidence that 84 4 tangible personal property was sold by any person for 84 5 delivery in this state shall be prima facie evidence 84 6 that such tangible personal property was sold for use 84 7 in this state. 84 8 Sec. 108. NEW SECTION. 423.6 EXEMPTIONS. 84 9 The use in this state of the following tangible 84 10 personal property and services is exempted from the 84 11 tax imposed by this subchapter: 84 12 1. Tangible personal property and enumerated 84 13 services, the sales price from the sale of which are 84 14 required to be included in the measure of the sales 84 15 tax, if that tax has been paid to the department or 84 16 the retailer. This exemption does not include 84 17 vehicles subject to registration or subject only to 84 18 the issuance of a certificate of title. 84 19 2. The sale of tangible personal property or the 84 20 furnishing of services in the regular course of 84 21 business. 84 22 3. Property used in processing. The use of 84 23 property in processing within the meaning of this 84 24 subsection shall mean and include any of the 84 25 following: 84 26 a. Any tangible personal property including 84 27 containers which it is intended shall, by means of 84 28 fabrication, compounding, manufacturing, or 84 29 germination, become an integral part of other tangible 84 30 personal property intended to be sold ultimately at 84 31 retail, and containers used in the collection, 84 32 recovery, or return of empty beverage containers 84 33 subject to chapter 455C. 84 34 b. Fuel which is consumed in creating power, heat, 84 35 or steam for processing or for generating electric 84 36 current. 84 37 c. Chemicals, solvents, sorbents, or reagents, 84 38 which are directly used and are consumed, dissipated, 84 39 or depleted in processing tangible personal property 84 40 which is intended to be sold ultimately at retail, and 84 41 which may not become a component or integral part of 84 42 the finished product. 84 43 d. The distribution to the public of free 84 44 newspapers or shoppers guides shall be deemed a retail 84 45 sale for purposes of the processing exemption in this 84 46 subsection. 84 47 4. All articles of tangible personal property 84 48 brought into the state of Iowa by a nonresident 84 49 individual for the individual's use or enjoyment while 84 50 within the state. 85 1 5. Services exempt from taxation by the provisions 85 2 of section 423.3. 85 3 6. Tangible personal property or services the 85 4 sales price of which is exempt from the sales tax 85 5 under section 423.3, except subsections 39 and 73, as 85 6 it relates to the sale, but not the lease or rental, 85 7 of vehicles subject to registration or subject only to 85 8 the issuance of a certificate of title and as it 85 9 relates to aircraft subject to registration under 85 10 section 328.20. 85 11 7. Advertisement and promotional material and 85 12 matter, seed catalogs, envelopes for same, and other 85 13 similar material temporarily stored in this state 85 14 which are acquired outside of Iowa and which, 85 15 subsequent to being brought into this state, are sent 85 16 outside of Iowa, either singly or physically attached 85 17 to other tangible personal property sent outside of 85 18 Iowa. 85 19 8. Vehicles, as defined in section 321.1, 85 20 subsections 41, 64A, 71, 85, and 88, except such 85 21 vehicles subject to registration which are designed 85 22 primarily for carrying persons, when purchased for 85 23 lease and actually leased to a lessee for use outside 85 24 the state of Iowa and the subsequent sole use in Iowa 85 25 is in interstate commerce or interstate 85 26 transportation. 85 27 9. Tangible personal property which, by means of 85 28 fabrication, compounding, or manufacturing, becomes an 85 29 integral part of vehicles, as defined in section 85 30 321.1, subsections 41, 64A, 71, 85, and 88, 85 31 manufactured for lease and actually leased to a lessee 85 32 for use outside the state of Iowa and the subsequent 85 33 sole use in Iowa is in interstate commerce or 85 34 interstate transportation. Vehicles subject to 85 35 registration which are designed primarily for carrying 85 36 persons are excluded from this subsection. 85 37 10. Vehicles subject to registration which are 85 38 transferred from a business or individual conducting a 85 39 business within this state as a sole proprietorship, 85 40 partnership, or limited liability company to a 85 41 corporation formed by the sole proprietorship, 85 42 partnership, or limited liability company for the 85 43 purpose of continuing the business when all of the 85 44 stock of the corporation so formed is owned by the 85 45 sole proprietor and the sole proprietor's spouse, by 85 46 all the partners in the case of a partnership, or by 85 47 all the members in the case of a limited liability 85 48 company. This exemption is equally available where 85 49 the vehicles subject to registration are transferred 85 50 from a corporation to a sole proprietorship, 86 1 partnership, or limited liability company formed by 86 2 that corporation for the purpose of continuing the 86 3 business when all of the incidents of ownership are 86 4 owned by the same person or persons who were 86 5 stockholders of the corporation. 86 6 This exemption also applies where the vehicles 86 7 subject to registration are transferred from a 86 8 corporation as part of the liquidation of the 86 9 corporation to its stockholders if within three months 86 10 of such transfer the stockholders retransfer those 86 11 vehicles subject to registration to a sole 86 12 proprietorship, partnership, or limited liability 86 13 company for the purpose of continuing the business of 86 14 the corporation when all of the incidents of ownership 86 15 are owned by the same person or persons who were 86 16 stockholders of the corporation. 86 17 10A. Vehicles subject to registration which are 86 18 transferred from a corporation that is primarily 86 19 engaged in the business of leasing vehicles subject to 86 20 registration to a corporation that is primarily 86 21 engaged in the business of leasing vehicles subject to 86 22 registration when the transferor and transferee 86 23 corporations are part of the same controlled group for 86 24 federal income tax purposes. 86 25 11. Vehicles registered or operated under chapter 86 26 326 and used substantially in interstate commerce, 86 27 section 423.5, subsection 7, notwithstanding. For 86 28 purposes of this subsection, "substantially in 86 29 interstate commerce" means that a minimum of twenty- 86 30 five percent of the miles operated by the vehicle 86 31 accrues in states other than Iowa. This subsection 86 32 applies only to vehicles which are registered for a 86 33 gross weight of thirteen tons or more. 86 34 For purposes of this subsection, trailers and 86 35 semitrailers registered or operated under chapter 326 86 36 are deemed to be used substantially in interstate 86 37 commerce and to be registered for a gross weight of 86 38 thirteen tons or more. 86 39 For the purposes of this subsection, if a vehicle 86 40 meets the requirement that twenty-five percent of the 86 41 miles operated accrues in states other than Iowa in 86 42 each year of the first four-year period of operation, 86 43 the exemption from use tax shall continue until the 86 44 vehicle is sold or transferred. If the vehicle is 86 45 found to have not met the exemption requirements or 86 46 the exemption was revoked, the value of the vehicle 86 47 upon which the use tax shall be imposed is the book or 86 48 market value, whichever is less, at the time the 86 49 exemption requirements were not met or the exemption 86 50 was revoked. 87 1 12. Mobile homes and manufactured housing the use 87 2 of which has previously been subject to the tax 87 3 imposed under this subchapter and for which that tax 87 4 has been paid. 87 5 13. Mobile homes to the extent of the portion of 87 6 the purchase price of the mobile home which is not 87 7 attributable to the cost of the tangible personal 87 8 property used in the processing of the mobile home, 87 9 and manufactured housing to the extent of the purchase 87 10 price or the installed purchase price of the 87 11 manufactured housing which is not attributable to the 87 12 cost of the tangible personal property used in the 87 13 processing of the manufactured housing. For purposes 87 14 of this exemption, the portion of the purchase price 87 15 which is not attributable to the cost of the tangible 87 16 personal property used in the processing of the mobile 87 17 home is forty percent and the portion of the purchase 87 18 price or installed purchase price which is not 87 19 attributable to the cost of the tangible personal 87 20 property used in the processing of the manufactured 87 21 housing is forty percent. 87 22 14. Tangible personal property used or to be used 87 23 as a ship, barge, or waterborne vessel which is used 87 24 or to be used primarily in or for the transportation 87 25 of property or cargo for hire on the rivers bordering 87 26 the state or as materials or parts of such ship, 87 27 barge, or waterborne vessel. 87 28 15. Vehicles subject to registration in any state 87 29 when purchased for rental or registered and titled by 87 30 a motor vehicle dealer licensed pursuant to chapter 87 31 322 for rental use, and held for rental for a period 87 32 of one hundred twenty days or more and actually rented 87 33 for periods of sixty days or less by a person 87 34 regularly engaged in the business of renting vehicles 87 35 including, but not limited to, motor vehicle dealers 87 36 licensed pursuant to chapter 322 who rent automobiles 87 37 to users, if the rental of the vehicles is subject to 87 38 taxation under chapter 423C. 87 39 16. Motor vehicles subject to registration which 87 40 were registered and titled between July 1, 1982, and 87 41 July 1, 1992, to a motor vehicle dealer licensed under 87 42 chapter 322 and which were rented to a user as defined 87 43 in section 423C.2 if the following occurred: 87 44 a. The dealer kept the vehicle on the inventory of 87 45 vehicles for sale at all times. 87 46 b. The vehicle was to be immediately taken from 87 47 the user of the vehicle when a buyer was found. 87 48 c. The user was aware of this situation. 87 49 17. Vehicles subject to registration under chapter 87 50 321, with a gross vehicle weight rating of less than 88 1 sixteen thousand pounds, excluding motorcycles and 88 2 motorized bicycles, when purchased for lease and 88 3 titled by the lessor licensed pursuant to chapter 321F 88 4 and actually leased for a period of twelve months or 88 5 more if the lease of the vehicle is subject to 88 6 taxation under section 423.27. 88 7 A lessor may maintain the exemption from use tax 88 8 under this subsection for a qualifying lease that 88 9 terminates at the conclusion or prior to the 88 10 contracted expiration date, if the lessor does not use 88 11 the vehicle for any purpose other than for lease. 88 12 Once the vehicle is used by the lessor for a purpose 88 13 other than for lease, the exemption from use tax under 88 14 this subsection no longer applies and, unless there is 88 15 an exemption from the use tax, use tax is due on the 88 16 fair market value of the vehicle determined at the 88 17 time the lessor uses the vehicle for a purpose other 88 18 than for lease, payable to the department. If the 88 19 lessor holds the vehicle exclusively for sale, use tax 88 20 is due and payable on the purchase price of the 88 21 vehicle at the time of purchase pursuant to this 88 22 subchapter. 88 23 18. Aircraft for use in a scheduled interstate 88 24 federal aviation administration certificated air 88 25 carrier operation. 88 26 19. Aircraft; tangible personal property 88 27 permanently affixed or attached as a component part of 88 28 the aircraft, including but not limited to repair or 88 29 replacement materials or parts; and all services used 88 30 for aircraft repair, remodeling, and maintenance 88 31 services when such services are performed on aircraft, 88 32 aircraft engines, or aircraft component materials or 88 33 parts. For the purposes of this exemption, "aircraft" 88 34 means aircraft used in a scheduled interstate federal 88 35 aviation administration certificated air carrier 88 36 operation. 88 37 20. Tangible personal property permanently affixed 88 38 or attached as a component part of the aircraft, 88 39 including but not limited to repair or replacement 88 40 materials or parts; and all services used for aircraft 88 41 repair, remodeling, and maintenance services when such 88 42 services are performed on aircraft, aircraft engines, 88 43 or aircraft component materials or parts. For the 88 44 purposes of this exemption, "aircraft" means aircraft 88 45 used in a nonscheduled interstate federal aviation 88 46 administration certificated air carrier operation 88 47 operating under 14 C.F.R., ch. 1, pt. 135. 88 48 21. Aircraft sold to an aircraft dealer who in 88 49 turn rents or leases the aircraft if all of the 88 50 following apply: 89 1 a. The aircraft is kept in the inventory of the 89 2 dealer for sale at all times. 89 3 b. The dealer reserves the right to immediately 89 4 take the aircraft from the renter or lessee when a 89 5 buyer is found. 89 6 c. The renter or lessee is aware that the dealer 89 7 will immediately take the aircraft when a buyer is 89 8 found. 89 9 If an aircraft exempt under this subsection is used 89 10 for any purpose other than leasing or renting, or the 89 11 conditions in paragraphs "a", "b", and "c" are not 89 12 continuously met, the dealer claiming the exemption 89 13 under this subsection is liable for the tax that would 89 14 have been due except for this subsection. The tax 89 15 shall be computed upon the original purchase price. 89 16 22. The use in this state of building materials, 89 17 supplies, or equipment, the sale or use of which is 89 18 not treated as a retail sale or a sale at retail under 89 19 section 423.2, subsection 1. 89 20 23. Exempted from the purchase price of any 89 21 vehicle subject to registration is: 89 22 a. The amount of any cash rebate which is provided 89 23 by a motor vehicle manufacturer to the purchaser of 89 24 the vehicle subject to registration so long as the 89 25 rebate is applied to the purchase price of the 89 26 vehicle. 89 27 b. That in transactions, except those subject to 89 28 paragraph "c", in which tangible personal property is 89 29 traded toward the purchase price of other tangible 89 30 personal property the purchase price is only that 89 31 portion of the purchase price which is payable in 89 32 money to the retailer if the following conditions are 89 33 met: 89 34 (1) The tangible personal property traded to the 89 35 retailer is the type of property normally sold in the 89 36 regular course of the retailer's business. 89 37 (2) The tangible personal property traded to the 89 38 retailer is intended by the retailer to be ultimately 89 39 sold at retail or is intended to be used by the 89 40 retailer or another in the remanufacturing of a like 89 41 item. 89 42 c. In a transaction between persons, neither of 89 43 which is a retailer of vehicles subject to 89 44 registration, in which a vehicle subject to 89 45 registration is traded toward the purchase price of 89 46 another vehicle subject to registration, the amount of 89 47 the trade-in value allowed on the vehicle subject to 89 48 registration traded. 89 49 SUBCHAPTER IV 89 50 UNIFORM SALES AND USE TAX ADMINISTRATION ACT 90 1 Sec. 109. NEW SECTION. 423.7 TITLE. 90 2 This subchapter shall be known and may be cited as 90 3 the "Uniform Sales and Use Tax Administration Act". 90 4 Sec. 110. NEW SECTION. 423.8 LEGISLATIVE FINDING 90 5 AND INTENT. 90 6 The general assembly finds that Iowa should enter 90 7 into an agreement with one or more states to simplify 90 8 and modernize sales and use tax administration in 90 9 order to substantially reduce the burden of tax 90 10 compliance for all sellers and for all types of 90 11 commerce. It is the intent of the general assembly 90 12 that entering into this agreement will lead to 90 13 simplification and modernization of the sales and use 90 14 tax law and not to the imposition of new taxes or an 90 15 increase or decrease in the existing number of 90 16 exemptions, unless such a result is unavoidable under 90 17 the terms of the agreement. 90 18 Sec. 111. NEW SECTION. 423.9 AUTHORITY TO ENTER 90 19 AGREEMENT AND TO REPRESENT THE STATE. 90 20 The director is authorized and directed to enter 90 21 into the streamlined sales and use tax agreement with 90 22 one or more states to simplify and modernize sales and 90 23 use tax administration in order to substantially 90 24 reduce the burden of tax compliance for all sellers 90 25 and for all types of commerce. 90 26 The director is further authorized to take other 90 27 actions reasonably required to implement the 90 28 provisions set forth in this chapter. Other actions 90 29 authorized by this section include, but are not 90 30 limited to, the adoption of rules and the joint 90 31 procurement, with other member states, of goods and 90 32 services in furtherance of the cooperative agreement. 90 33 The director or the director's designee is 90 34 authorized to be a member of the governing board 90 35 established pursuant to the agreement and to represent 90 36 Iowa before that body. 90 37 Sec. 112. NEW SECTION. 423.10 RELATIONSHIP TO 90 38 STATE LAW. 90 39 Entry into the agreement by the director does not 90 40 amend or modify any law of this state. Implementation 90 41 of any condition of the agreement in this state, 90 42 whether adopted before, at, or after membership of 90 43 this state in the agreement, shall be by action of the 90 44 general assembly. 90 45 Sec. 113. NEW SECTION. 423.11 AGREEMENT 90 46 REQUIREMENTS. 90 47 The director shall not enter into the agreement 90 48 unless the agreement requires each state to abide by 90 49 the following requirements: 90 50 1. UNIFORM STATE RATE. The agreement must set 91 1 restrictions to achieve more uniform state rates 91 2 through the following: 91 3 a. Limiting the number of state rates. 91 4 b. Limiting the application of maximums on the 91 5 amount of state tax that is due on a transaction. 91 6 c. Limiting the application of thresholds on the 91 7 application of state tax. 91 8 2. UNIFORM STANDARDS. The agreement must 91 9 establish uniform standards for the following: 91 10 a. The sourcing of transactions to taxing 91 11 jurisdictions. 91 12 b. The administration of exempt sales. 91 13 c. The allowances a seller can take for bad debts. 91 14 d. Sales and use tax returns and remittances. 91 15 3. UNIFORM DEFINITIONS. The agreement must 91 16 require states to develop and adopt uniform 91 17 definitions of sales and use tax terms. The 91 18 definitions must enable a state to preserve its 91 19 ability to make policy choices not inconsistent with 91 20 the uniform definitions. 91 21 4. CENTRAL REGISTRATION. The agreement must 91 22 provide a central, electronic registration system that 91 23 allows a seller to register to collect and remit sales 91 24 and use taxes for all member states. 91 25 5. NO NEXUS ATTRIBUTION. The agreement must 91 26 provide that registration with the central 91 27 registration system and the collection of sales and 91 28 use taxes in the member states must not be used as a 91 29 factor in determining whether the seller has nexus 91 30 with a state for any tax. 91 31 6. LOCAL SALES AND USE TAXES. The agreement must 91 32 provide for reduction of the burdens of complying with 91 33 local sales and use taxes through the following: 91 34 a. Restricting variances between the state and 91 35 local tax bases. 91 36 b. Requiring states to administer any sales and 91 37 use taxes levied by local jurisdictions within the 91 38 state so that sellers collecting and remitting these 91 39 taxes must not have to register or file returns with, 91 40 remit funds to, or be subject to independent audits 91 41 from local taxing jurisdictions. 91 42 c. Restricting the frequency of changes in the 91 43 local sales and use tax rates and setting effective 91 44 dates for the application of local jurisdictional 91 45 boundary changes to local sales and use taxes. 91 46 d. Providing notice of changes in local sales and 91 47 use tax rates and of changes in the boundaries of 91 48 local taxing jurisdictions. 91 49 7. MONETARY ALLOWANCES. The agreement must 91 50 outline any monetary allowances that are to be 92 1 provided by the states to sellers or certified service 92 2 providers. 92 3 8. STATE COMPLIANCE. The agreement must require 92 4 each state to certify compliance with the terms of the 92 5 agreement prior to joining and to maintain compliance, 92 6 under the laws of the member state, with all 92 7 provisions of the agreement while a member. 92 8 9. CONSUMER PRIVACY. The agreement must require 92 9 each state to adopt a uniform policy for certified 92 10 service providers that protects the privacy of 92 11 consumers and maintains the confidentiality of tax 92 12 information. 92 13 10. ADVISORY COUNCILS. The agreement must provide 92 14 for the appointment of an advisory council of private 92 15 sector representatives and an advisory council of 92 16 nonmember state representatives to consult with in the 92 17 administration of the agreement. 92 18 Sec. 114. NEW SECTION. 423.12 LIMITED BINDING 92 19 AND BENEFICIAL EFFECT. 92 20 1. The agreement binds and inures only to the 92 21 benefit of Iowa and the other member states. A 92 22 person, other than a member state, is not an intended 92 23 beneficiary of the agreement. Any benefit to a person 92 24 other than a member state is established by the law of 92 25 Iowa and not by the terms of the agreement. 92 26 2. A person shall not have any cause of action or 92 27 defense under the agreement or by virtue of this 92 28 state's entry into the agreement. A person may not 92 29 challenge, in any action brought under any provision 92 30 of law, any action or inaction by any department, 92 31 agency, or other instrumentality of this state, or any 92 32 political subdivision of this state on the ground that 92 33 the action or inaction is inconsistent with the 92 34 agreement. 92 35 3. A law of this state, or the application of it, 92 36 shall not be declared invalid as to any such person or 92 37 circumstance on the ground that the provision or 92 38 application is inconsistent with the agreement. 92 39 SUBCHAPTER V 92 40 SALES AND USE TAX ACT – ADMINISTRATION OF 92 41 RETAILERS NOT REGISTERED UNDER THE AGREEMENT AND OF 92 42 CONSUMERS OBLIGATED TO PAY USE TAX DIRECTLY 92 43 Sec. 115. NEW SECTION. 423.13 PURPOSE OF THIS 92 44 SUBCHAPTER. 92 45 The purpose of this subchapter is to provide for 92 46 the administration and collection of sales or use tax 92 47 on the part of retailers who are not registered under 92 48 the agreement and for the collection of use tax on the 92 49 part of consumers who are obligated to pay that tax 92 50 directly. Any application of the sections of this 93 1 subchapter to retailers registered under the agreement 93 2 is only by way of incorporation by reference into 93 3 subchapter VI of this chapter. 93 4 Sec. 116. NEW SECTION. 423.14 SALES AND USE TAX 93 5 COLLECTION. 93 6 1. a. Sales tax, other than that described in 93 7 paragraph "c", shall be collected by sellers who are 93 8 retailers or by their agents. Sellers or their agents 93 9 shall, as far as practicable, add the sales tax, or 93 10 the average equivalent thereof, to the sales price or 93 11 charge, less trade-ins allowed and taken and when 93 12 added such tax shall constitute a part of the sales 93 13 price or charge, shall be a debt from consumer or user 93 14 to seller or agent until paid, and shall be 93 15 recoverable at law in the same manner as other debts. 93 16 b. In computing the tax to be collected as the 93 17 result of any transaction, the tax computation must be 93 18 carried to the third decimal place. Whenever the 93 19 third decimal place is greater than four, the tax must 93 20 be rounded up to the next whole cent; whenever the 93 21 third decimal place is four or less, the tax must be 93 22 rounded downward to a whole cent. Sellers may elect 93 23 to compute the tax due on transactions on an item or 93 24 invoice basis. Sellers are not required to use a 93 25 bracket system. 93 26 c. The tax imposed upon those sales of motor 93 27 vehicle fuel which are subject to tax and refund under 93 28 chapter 452A shall be collected by the state treasurer 93 29 by way of deduction from refunds otherwise allowable 93 30 under that chapter. The treasurer shall transfer the 93 31 amount of such deductions from the motor vehicle fuel 93 32 tax fund to the special tax fund. 93 33 2. Use tax shall be collected in the following 93 34 manner: 93 35 a. The tax upon the use of all vehicles subject to 93 36 registration or subject only to the issuance of a 93 37 certificate of title or the tax upon the use of 93 38 manufactured housing shall be collected by the county 93 39 treasurer or the state department of transportation 93 40 pursuant to sections 423.26 and 423.27. The county 93 41 treasurer shall retain one dollar from each tax 93 42 payment collected, to be credited to the county 93 43 general fund. 93 44 b. The tax upon the use of all tangible personal 93 45 property other than that enumerated in paragraph "a", 93 46 which is sold by a seller who is a retailer 93 47 maintaining a place of business in this state, or by 93 48 such other retailer or agent as the director shall 93 49 authorize pursuant to section 423.30, shall be 93 50 collected by the retailer or agent and remitted to the 94 1 department, pursuant to the provisions of paragraph 94 2 "e", and sections 423.24, 423.29, 423.30, 423.32, and 94 3 423.33. 94 4 c. The tax upon the use of all tangible personal 94 5 property not paid pursuant to paragraphs "a" and "b" 94 6 shall be paid to the department directly by any person 94 7 using the property within this state, pursuant to the 94 8 provisions of section 423.34. 94 9 d. The tax imposed on the use of services 94 10 enumerated in section 423.5 shall be collected, 94 11 remitted, and paid to the department of revenue and 94 12 finance in the same manner as use tax on tangible 94 13 personal property is collected, remitted, and paid 94 14 under this subchapter. 94 15 e. All persons obligated by paragraph "a", "b", or 94 16 "d", to collect use tax shall, as far as practicable, 94 17 add that tax, or the average equivalent thereof, to 94 18 the purchase price, less trade-ins allowed and taken, 94 19 and when added the tax shall constitute a part of the 94 20 purchase price. Use tax which this section requires 94 21 to be collected by a retailer and any tax collected 94 22 pursuant to this section by a retailer shall 94 23 constitute a debt owed by the retailer to this state. 94 24 Tax which must be paid directly to the department, 94 25 pursuant to paragraph "c" or "d", is to be computed 94 26 and added by the consumer or user to the purchase 94 27 price in the same manner as this paragraph requires a 94 28 seller to compute and add the tax. The tax shall be a 94 29 debt from the consumer or user to the department until 94 30 paid, and shall be recoverable at law in the same 94 31 manner as other debts. 94 32 Sec. 117. NEW SECTION. 423.15 GENERAL SOURCING 94 33 RULES. 94 34 All sellers obligated to collect Iowa sales or use 94 35 tax shall use the standards set out in this section to 94 36 determine where sales of products occur, excluding 94 37 sales enumerated in section 423.16. These provisions 94 38 apply regardless of the characterization of a product 94 39 as tangible personal property, a digital good, or a 94 40 service, excluding telecommunications services. This 94 41 section only applies to determine a seller's 94 42 obligation to pay or collect and remit a sales or use 94 43 tax with respect to the seller's sale of a product. 94 44 This section does not affect the obligation of a 94 45 purchaser or lessee to remit tax on the use of the 94 46 product to the taxing jurisdictions in which the use 94 47 occurs. A seller's obligation to collect Iowa sales 94 48 tax or Iowa use tax only occurs if the sale is sourced 94 49 to this state. The application of whether Iowa sales 94 50 tax applies to sales sourced to Iowa depends upon 95 1 where the sale is consummated by delivery. 95 2 1. Sales, excluding leases or rentals other than 95 3 leases or rentals set out in subsection 2, of products 95 4 shall be sourced as follows. 95 5 a. When the product is received by the purchaser 95 6 at a business location of the seller, the sale is 95 7 sourced to that business location. 95 8 b. When the product is not received by the 95 9 purchaser at a business location of the seller, the 95 10 sale is sourced to the location where receipt by the 95 11 purchaser or the purchaser's donee, designated as such 95 12 by the purchaser, occurs, including the location 95 13 indicated by instructions for delivery to the 95 14 purchaser or donee, known to the seller. 95 15 c. When paragraphs "a" and "b" do not apply, the 95 16 sale is sourced to the location indicated by an 95 17 address for the purchaser that is available from the 95 18 business records of the seller that are maintained in 95 19 the ordinary course of the seller's business when use 95 20 of this address does not constitute bad faith. 95 21 d. When paragraphs "a", "b", and "c" do not apply, 95 22 the sale is sourced to the location indicated by an 95 23 address for the purchaser obtained during the 95 24 consummation of the sale, including the address of a 95 25 purchaser's payment instrument, if no other address is 95 26 available, when use of this address does not 95 27 constitute bad faith. 95 28 e. When paragraphs "a", "b", "c", and "d" do not 95 29 apply, including the circumstance where the seller is 95 30 without sufficient information to apply the previous 95 31 rules, then the location will be determined by the 95 32 address from which tangible personal property was 95 33 shipped, from which the digital good or the computer 95 34 software delivered electronically was first available 95 35 for transmission by the seller, or from which the 95 36 service was provided disregarding for these purposes 95 37 any location that merely provided the digital transfer 95 38 of the product sold. 95 39 2. The lease or rental of tangible personal 95 40 property, other than property identified in subsection 95 41 3 or section 423.16, shall be sourced as follows: 95 42 a. For a lease or rental that requires recurring 95 43 periodic payments, the first periodic payment is 95 44 sourced the same as a retail sale in accordance with 95 45 the provisions of subsection 1. Periodic payments 95 46 made subsequent to the first payment are sourced to 95 47 the primary property location for each period covered 95 48 by the payment. The primary property location shall 95 49 be as indicated by an address for the property 95 50 provided by the lessee that is available to the lessor 96 1 from its records maintained in the ordinary course of 96 2 business, when use of this address does not constitute 96 3 bad faith. The property location shall not be altered 96 4 by intermittent use at different locations, such as 96 5 use of business property that accompanies employees on 96 6 business trips and service calls. 96 7 b. For a lease or rental that does not require 96 8 recurring periodic payments, the payment is sourced 96 9 the same as a retail sale in accordance with the 96 10 provisions of subsection 1. 96 11 c. This subsection does not affect the imposition 96 12 or computation of sales or use tax on leases or 96 13 rentals based on a lump sum or accelerated basis, or 96 14 on the acquisition of property for lease. 96 15 3. The retail sale, including lease or rental, of 96 16 transportation equipment shall be sourced the same as 96 17 a retail sale in accordance with the provisions of 96 18 subsection 1, notwithstanding the exclusion of lease 96 19 or rental in that subsection. "Transportation 96 20 equipment" means any of the following: 96 21 a. Locomotives or railcars that are utilized for 96 22 the carriage of persons or property in interstate 96 23 commerce. 96 24 b. Trucks and truck-tractors with a gross vehicle 96 25 weight rating of ten thousand one pounds or greater, 96 26 trailers, semitrailers, or passenger buses that meet 96 27 both of the following requirements: 96 28 (1) Are registered through the international 96 29 registration plan. 96 30 (2) Are operated under authority of a carrier 96 31 authorized and certificated by the United States 96 32 department of transportation or another federal 96 33 authority to engage in the carriage of persons or 96 34 property in interstate commerce. 96 35 c. Aircraft that are operated by air carriers 96 36 authorized and certificated by the United States 96 37 department of transportation or another federal or a 96 38 foreign authority to engage in the carriage of persons 96 39 or property in interstate or foreign commerce. 96 40 d. Containers designed for use on and component 96 41 parts attached or secured on the items set forth in 96 42 paragraphs "a" through "c". 96 43 Sec. 118. NEW SECTION. 423.16 TRANSACTIONS TO 96 44 WHICH THE GENERAL SOURCING RULES DO NOT APPLY. 96 45 Section 423.15 does not apply to sales or use taxes 96 46 levied on the following: 96 47 1. The retail sale or transfer of watercraft, 96 48 modular homes, manufactured housing, or mobile homes, 96 49 and the retail sale, excluding lease or rental, of 96 50 motor vehicles, trailers, semitrailers, or aircraft 97 1 that do not qualify as transportation equipment, as 97 2 defined in section 423.15, subsection 3. 97 3 2. The lease or rental of motor vehicles, 97 4 trailers, semitrailers, or aircraft that do not 97 5 qualify as transportation equipment, as defined in 97 6 section 423.15, subsection 3, which shall be sourced 97 7 in accordance with section 423.17. 97 8 3. Transactions to which the multiple points use 97 9 exemption is applicable, which shall be sourced in 97 10 accordance with section 423.18. 97 11 4. Transactions to which direct mail sourcing is 97 12 applicable, which shall be sourced in accordance with 97 13 section 423.19. 97 14 5. Telecommunications services, as set out in 97 15 section 423.20, which shall be sourced in accordance 97 16 with section 423.20, subsection 2. 97 17 Sec. 119. NEW SECTION. 423.17 SOURCING RULES FOR 97 18 VARIOUS TYPES OF LEASED OR RENTED EQUIPMENT WHICH IS 97 19 NOT TRANSPORTATION EQUIPMENT. 97 20 The lease or rental of motor vehicles, trailers, 97 21 semitrailers, or aircraft that do not qualify as 97 22 transportation equipment, as defined in section 97 23 423.15, subsection 3, shall be sourced as follows: 97 24 1. For a lease or rental that requires recurring 97 25 periodic payments, each periodic payment is sourced to 97 26 the primary property location. The primary property 97 27 location shall be as indicated by an address for the 97 28 property provided by the lessee that is available to 97 29 the lessor from its records maintained in the ordinary 97 30 course of business, when use of this address does not 97 31 constitute bad faith. This location shall not be 97 32 altered by intermittent use at different locations. 97 33 2. For a lease or rental that does not require 97 34 recurring periodic payments, the payment is sourced 97 35 the same as a retail sale in accordance with the 97 36 provisions of section 423.15, subsection 1. 97 37 3. This section does not affect the imposition or 97 38 computation of sales or use tax on leases or rentals 97 39 based on a lump sum or accelerated basis, or on the 97 40 acquisition of property for lease. 97 41 Sec. 120. NEW SECTION. 423.18 MULTIPLE POINTS OF 97 42 USE EXEMPTION FORMS. 97 43 A business purchaser that is not a holder of a 97 44 direct pay tax permit pursuant to section 423.36 that 97 45 knows at the time of its purchase of a digital good, 97 46 computer software delivered electronically, or a 97 47 service that the digital good, computer software 97 48 delivered electronically, or service will be 97 49 concurrently available for use in more than one 97 50 jurisdiction shall deliver to the seller in 98 1 conjunction with its purchase a "multiple points of 98 2 use" or "MPU" exemption form disclosing this fact. 98 3 1. Upon receipt of the MPU exemption form, the 98 4 seller is relieved of all obligation to collect, pay, 98 5 or remit the applicable tax and the purchaser shall be 98 6 obligated to collect, pay, or remit the applicable tax 98 7 on a direct pay basis. 98 8 2. A purchaser delivering the MPU exemption form 98 9 may use any reasonable, but consistent and uniform, 98 10 method of apportionment that is supported by the 98 11 purchaser's business records as they exist at the time 98 12 of the consummation of the sale. 98 13 3. The MPU exemption form will remain in effect 98 14 for all future sales by the seller to the purchaser 98 15 except as to the subsequent sale's specific 98 16 apportionment that is governed by the principle of 98 17 subsection 2 and the facts existing at the time of the 98 18 sale until it is revoked in writing. 98 19 4. A holder of a direct pay tax permit under 98 20 section 423.36 shall not be required to deliver an MPU 98 21 exemption form to the seller. A direct pay tax permit 98 22 holder shall follow the provisions of subsection 2 in 98 23 apportioning the tax due on a digital good, computer 98 24 software delivered electronically, or service that 98 25 will be concurrently available for use in more than 98 26 one jurisdiction. 98 27 Sec. 121. NEW SECTION. 423.19 DIRECT MAIL 98 28 SOURCING. 98 29 1. Notwithstanding section 423.15, a purchaser of 98 30 direct mail that is not a holder of a direct pay tax 98 31 permit pursuant to section 423.36 shall provide to the 98 32 seller in conjunction with the purchase either a 98 33 direct mail form or information to show the 98 34 jurisdictions to which the direct mail is delivered to 98 35 recipients. 98 36 a. Upon receipt of the direct mail form, the 98 37 seller is relieved of all obligations to collect, pay, 98 38 or remit the applicable tax and the purchaser is 98 39 obligated to pay or remit the applicable tax on a 98 40 direct pay basis. A direct mail form shall remain in 98 41 effect for all future sales of direct mail by the 98 42 seller to the purchaser until it is revoked in 98 43 writing. 98 44 b. Upon receipt of information from the purchaser 98 45 showing the jurisdictions to which the direct mail is 98 46 delivered to recipients, the seller shall collect the 98 47 tax according to the delivery information provided by 98 48 the purchaser. In the absence of bad faith, the 98 49 seller is relieved of any further obligation to 98 50 collect tax on any transaction where the seller has 99 1 collected tax pursuant to the delivery information 99 2 provided by the purchaser. 99 3 2. If the purchaser of direct mail does not have a 99 4 direct pay tax permit and does not provide the seller 99 5 with either a direct mail form or delivery 99 6 information, as required by subsection 1, the seller 99 7 shall collect the tax according to section 423.15, 99 8 subsection 1, paragraph "e". Nothing in this 99 9 subsection shall limit a purchaser's obligation for 99 10 sales or use tax to any state to which the direct mail 99 11 is delivered. 99 12 3. If a purchaser of direct mail provides the 99 13 seller with documentation of direct pay authority, the 99 14 purchaser shall not be required to provide a direct 99 15 mail form or delivery information to the seller. 99 16 Sec. 122. NEW SECTION. 423.20 TELECOMMUNICATIONS 99 17 SERVICE SOURCING. 99 18 1. As used in this section: 99 19 a. "Air-to-ground radiotelephone service" means a 99 20 radio service, as that term is used in 47 C.F.R. } 99 21 22.99, in which common carriers are authorized to 99 22 offer and provide radio telecommunications service for 99 23 hire to subscribers in aircraft. 99 24 b. "Call-by-call basis" means any method of 99 25 charging for the telecommunications service where the 99 26 price is measured by individual calls. 99 27 c. "Communications channel" means a physical or 99 28 virtual path of communications over which signals are 99 29 transmitted between or among customer channel 99 30 termination points. 99 31 d. "Customer" means the person or entity that 99 32 contracts with the seller of the telecommunications 99 33 service. If the end user of the telecommunications 99 34 service is not the contracting party, the end user of 99 35 the telecommunications service is the customer of the 99 36 telecommunications service, but this sentence only 99 37 applies for the purpose of sourcing sales of the 99 38 telecommunications service under this section. 99 39 "Customer" does not include a reseller of a 99 40 telecommunications service or for mobile 99 41 telecommunications service of a serving carrier under 99 42 an agreement to serve the customer outside the home 99 43 service provider's licensed service area. 99 44 e. "Customer channel termination point" means the 99 45 location where the customer either inputs or receives 99 46 the communications. 99 47 f. "End user" means the person who utilizes the 99 48 telecommunications service. In the case of an entity, 99 49 "end user" means the individual who utilizes the 99 50 service on behalf of the entity. 100 1 g. "Home service provider" means the same as that 100 2 term is defined in the federal Mobile 100 3 Telecommunications Sourcing Act, Pub. L. No. 106-252, 100 4 4 U.S.C. } 124(5). 100 5 h. "Mobile telecommunications service" means the 100 6 same as that term is defined in federal Mobile 100 7 Telecommunications Sourcing Act, Pub. L. No. 106-252, 100 8 4 U.S.C. } 124(7). 100 9 i. "Place of primary use" means the street address 100 10 representative of where the customer's use of the 100 11 telecommunications service primarily occurs, which 100 12 must be the residential street address or the primary 100 13 business street address of the customer. In the case 100 14 of mobile telecommunications service, "place of 100 15 primary use" must be within the licensed service area 100 16 of the home service provider. 100 17 j. "Postpaid calling service" means the 100 18 telecommunications service obtained by making a 100 19 payment on a call-by-call basis either through the use 100 20 of a credit card or payment mechanism such as a bank 100 21 card, travel card, credit card, or debit card, or by 100 22 charge made to a telephone number which is not 100 23 associated with the origination or termination of the 100 24 telecommunications service. A "postpaid calling 100 25 service" includes a telecommunications service that 100 26 would be a prepaid calling service except it is not 100 27 exclusively a telecommunications service. 100 28 k. "Prepaid calling service" means the right to 100 29 access exclusively telecommunications services, which 100 30 must be paid for in advance and which enables the 100 31 origination of calls using an access number or 100 32 authorization code, whether manually or electronically 100 33 dialed, and that is sold in predetermined units or 100 34 dollars of which the amount declines with use in a 100 35 known amount. 100 36 l. "Private communication service" means a 100 37 telecommunications service that entitles the customer 100 38 to exclusive or priority use of a communications 100 39 channel or group of channels between or among 100 40 termination points, regardless of the manner in which 100 41 such channel or channels are connected, and includes 100 42 switching capacity, extension lines, stations, and any 100 43 other associated services that are provided in 100 44 connection with the use of such channel or channels. 100 45 m. "Service address" means one of the following: 100 46 (1) The location of the telecommunications 100 47 equipment to which a customer's call is charged and 100 48 from which the call originates or terminates, 100 49 regardless of where the call is billed or paid. 100 50 (2) If the location in subparagraph (1) is not 101 1 known, "service address" means the origination point 101 2 of the signal of the telecommunications service first 101 3 identified by either the seller's telecommunications 101 4 system or in information received by the seller from 101 5 its service provider, where the system used to 101 6 transport such signals is not that of the seller. 101 7 (3) If the locations in subparagraphs (1) and (2) 101 8 are not known, the "service address" means the 101 9 location of the customer's place of primary use. 101 10 2. Sales of telecommunications services shall be 101 11 sourced in the following manner: 101 12 a. Except for the defined telecommunications 101 13 services in paragraph "c", the sale of 101 14 telecommunications services sold on a call-by-call 101 15 basis shall be sourced to one of the following: 101 16 (1) Each level of taxing jurisdiction where the 101 17 call originates and terminates in that jurisdiction. 101 18 (2) Each level of taxing jurisdiction where the 101 19 call either originates or terminates and in which the 101 20 service address is also located. 101 21 b. Except for the defined telecommunications 101 22 services in paragraph "c", a sale of 101 23 telecommunications services sold on a basis other than 101 24 a call-by-call basis is sourced to the customer's 101 25 place of primary use. 101 26 c. Sale of the following telecommunications 101 27 services shall be sourced to each level of taxing 101 28 jurisdiction as follows: 101 29 (1) A sale of mobile telecommunications services 101 30 other than air-to-ground radiotelephone service or 101 31 prepaid calling service is sourced to the customer's 101 32 place of primary use as required by the federal Mobile 101 33 Telecommunications Sourcing Act. 101 34 (2) A sale of postpaid calling service is sourced 101 35 to the origination point of the telecommunications 101 36 signal as first identified by either of the following: 101 37 (a) The seller's telecommunications system. 101 38 (b) Information received by the seller from its 101 39 service provider, where the system used to transport 101 40 such signals is not that of the seller. 101 41 (3) A sale of prepaid calling service is sourced 101 42 in accordance with section 423.15. However, in the 101 43 case of a sale of mobile telecommunications services 101 44 that is a prepaid telecommunications service, the rule 101 45 provided in section 423.15, subsection 1, paragraph 101 46 "e", shall include as an option the location 101 47 associated with the mobile telephone number. 101 48 (4) A sale of a private telecommunications service 101 49 is sourced as follows: 101 50 (a) Service for a separate charge related to a 102 1 customer channel termination point is sourced to each 102 2 level of jurisdiction in which such customer channel 102 3 termination point is located. 102 4 (b) Service where all customer termination points 102 5 are located entirely within one jurisdiction or level 102 6 of jurisdiction is sourced in such jurisdiction in 102 7 which the customer channel termination points are 102 8 located. 102 9 (c) Service for segments of a channel between two 102 10 customer channel termination points located in 102 11 different jurisdictions and which segments of a 102 12 channel are separately charged is sourced fifty 102 13 percent in each level of jurisdiction in which the 102 14 customer channel termination points are located. 102 15 (d) Service for segments of a channel located in 102 16 more than one jurisdiction or levels of jurisdiction 102 17 and which segments are not separately billed is 102 18 sourced in each jurisdiction based on the percentage 102 19 determined by dividing the number of customer channel 102 20 termination points in such jurisdiction by the total 102 21 number of customer channel termination points. 102 22 Sec. 123. NEW SECTION. 423.21 BAD DEBT 102 23 DEDUCTIONS. 102 24 1. For the purposes of this section, "bad debt" 102 25 means an amount properly calculated pursuant to 102 26 section 166 of the Internal Revenue Code then adjusted 102 27 to exclude financing charges or interest, sales or use 102 28 taxes charged on the purchase price, uncollectible 102 29 amounts on property that remain in the possession of 102 30 the seller until the full purchase price is paid, 102 31 expenses incurred in attempting to collect any debt, 102 32 and repossessed property. 102 33 2. In computing the amount of tax due, a seller 102 34 may deduct bad debts from the total amount upon which 102 35 the tax is calculated for any return. Any deduction 102 36 taken or refund paid which is attributed to bad debts 102 37 shall not include interest. 102 38 3. A seller may deduct bad debts on the return for 102 39 the period during which the bad debt is written off as 102 40 uncollectible in the seller's books and records and is 102 41 eligible to be deducted for federal income tax 102 42 purposes. For purposes of this subsection, a seller 102 43 who is not required to file federal income tax returns 102 44 may deduct a bad debt on a return filed for the period 102 45 in which the bad debt is written off as uncollectible 102 46 in the seller's books and records and would be 102 47 eligible for a bad debt deduction for federal income 102 48 tax purposes if the seller were required to file a 102 49 federal income tax return. 102 50 4. If a deduction is taken for a bad debt and the 103 1 seller subsequently collects the debt in whole or in 103 2 part, the tax on the amount so collected must be paid 103 3 and reported on the return filed for the period in 103 4 which the collection is made. 103 5 5. A seller may obtain a refund of tax on any 103 6 amount of bad debt that exceeds the amount of taxable 103 7 sales within the period allowed for refund claims by 103 8 section 423.47. However, the period allowed for 103 9 refund claims shall be measured from the due date of 103 10 the return on which the bad debt could first be 103 11 claimed. 103 12 6. For the purposes of computing a bad debt 103 13 deduction or reporting a payment received on a 103 14 previously claimed bad debt, any payments made on a 103 15 debt or account shall be applied first to the price of 103 16 the property or service and tax thereon, 103 17 proportionally, and secondly to interest, service 103 18 charges, and any other charges. 103 19 Sec. 124. NEW SECTION. 423.22 TAXATION IN 103 20 ANOTHER STATE. 103 21 If any person who causes tangible personal property 103 22 to be brought into this state or who uses in this 103 23 state services enumerated in section 423.2 has already 103 24 paid a tax in another state in respect to the sale or 103 25 use of the property or the performance of the service, 103 26 or an occupation tax in respect to the property or 103 27 service, in an amount less than the tax imposed by 103 28 subchapter II or III, the provisions of those 103 29 subchapters shall apply, but at a rate measured by the 103 30 difference only between the rate fixed by subchapter 103 31 II or III and the rate by which the previous tax on 103 32 the sale or use, or the occupation tax, was computed. 103 33 If the tax imposed and paid in the other state is 103 34 equal to or more than the tax imposed by those 103 35 subchapters, then a tax is not due in this state on 103 36 the personal property or service. 103 37 Sec. 125. NEW SECTION. 423.23 SELLERS' 103 38 AGREEMENTS. 103 39 Agreements between competing sellers, or the 103 40 adoption of appropriate rules and regulations by 103 41 organizations or associations of sellers to provide 103 42 uniform methods for adding sales or use tax or the 103 43 average equivalent thereof, and which do not involve 103 44 price-fixing agreements otherwise unlawful, are 103 45 expressly authorized and shall be held not in 103 46 violation of chapter 553 or other antitrust laws of 103 47 this state. The director shall cooperate with 103 48 sellers, organizations, or associations in formulating 103 49 agreements and rules. 103 50 Sec. 126. NEW SECTION. 423.24 ABSORBING TAX 104 1 PROHIBITED. 104 2 A seller shall not advertise or hold out or state 104 3 to the public or to any purchaser, consumer, or user, 104 4 directly or indirectly, that the taxes or any parts 104 5 thereof imposed by subchapter II or III will be 104 6 assumed or absorbed by the seller or the taxes will 104 7 not be added to the sales price of the property sold, 104 8 or if added that the taxes or any part thereof will be 104 9 refunded. Any person violating any of the provisions 104 10 of this section within this state is guilty of a 104 11 simple misdemeanor. 104 12 Sec. 127. NEW SECTION. 423.25 DIRECTOR'S POWER 104 13 TO ADOPT RULES. 104 14 The director shall have the power to adopt rules 104 15 for adding the taxes imposed by subchapters II and 104 16 III, or the average equivalents thereof, by providing 104 17 different methods applying uniformly to retailers 104 18 within the same general classification for the purpose 104 19 of enabling the retailers to add and collect, as far 104 20 as practicable, the amounts of those taxes. 104 21 Sec. 128. NEW SECTION. 423.26 VEHICLES SUBJECT 104 22 TO REGISTRATION OR ONLY TO THE ISSUANCE OF TITLE – 104 23 MANUFACTURED HOUSING. 104 24 The use tax imposed upon the use of vehicles 104 25 subject to registration or subject only to the 104 26 issuance of a certificate of title or imposed upon the 104 27 use of manufactured housing shall be paid by the owner 104 28 of the vehicle or of the manufactured housing to the 104 29 county treasurer or the state department of 104 30 transportation from whom the registration receipt or 104 31 certificate of title is obtained. A registration 104 32 receipt for a vehicle subject to registration or 104 33 certificate of title shall not be issued until the tax 104 34 has been paid. The county treasurer or the state 104 35 department of transportation shall require every 104 36 applicant for a registration receipt for a vehicle 104 37 subject to registration or certificate of title to 104 38 supply information as the county treasurer or the 104 39 director deems necessary as to the time of purchase, 104 40 the purchase price, installed purchase price, and 104 41 other information relative to the purchase of the 104 42 vehicle or manufactured housing. On or before the 104 43 tenth day of each month, the county treasurer or the 104 44 state department of transportation shall remit to the 104 45 department the amount of the taxes collected during 104 46 the preceding month. 104 47 A person who willfully makes a false statement in 104 48 regard to the purchase price of a vehicle subject to 104 49 taxation under this section is guilty of a fraudulent 104 50 practice. A person who willfully makes a false 105 1 statement in regard to the purchase price of such a 105 2 vehicle with the intent to evade the payment of tax 105 3 shall be assessed a penalty of seventy-five percent of 105 4 the amount of tax unpaid and required to be paid on 105 5 the actual purchase price less trade-in allowance. 105 6 Sec. 129. NEW SECTION. 423.27 MOTOR VEHICLE 105 7 LEASE TAX. 105 8 1. The use tax imposed upon the use of leased 105 9 vehicles subject to registration under chapter 321, 105 10 with gross vehicle weight ratings of less than sixteen 105 11 thousand pounds, excluding motorcycles and motorized 105 12 bicycles, which are leased by a lessor licensed 105 13 pursuant to chapter 321F for a period of twelve months 105 14 or more shall be paid by the owner of the vehicle to 105 15 the county treasurer or state department of 105 16 transportation from whom the registration receipt or 105 17 certificate of title is obtained. A registration 105 18 receipt for a vehicle subject to registration or 105 19 issuance of a certificate of title shall not be issued 105 20 until the tax is paid in the initial instance. Tax on 105 21 the lease transaction that does not require titling or 105 22 registration of the vehicle shall be remitted to the 105 23 department. Tax and the reporting of tax due to the 105 24 department shall be remitted on or before fifteen days 105 25 from the last day of the month that the vehicle lease 105 26 tax becomes due. Failure to timely report or remit 105 27 any of the tax when due shall result in a penalty and 105 28 interest being imposed on the tax due pursuant to 105 29 section 423.40, subsection 1, and section 423.42, 105 30 subsection 1. 105 31 2. The amount subject to tax shall be computed on 105 32 each separate lease transaction by taking the total of 105 33 the lease payments, plus the down payment, and 105 34 excluding all of the following: 105 35 a. Title fee. 105 36 b. Registration fees. 105 37 c. Vehicle lease tax pursuant to this section. 105 38 d. Federal excise taxes attributable to the sale 105 39 of the vehicle to the owner or to the lease of the 105 40 vehicle by the owner. 105 41 e. Optional service or warranty contracts subject 105 42 to tax pursuant to section 423.2, subsection 1. 105 43 f. Insurance. 105 44 g. Manufacturer's rebate. 105 45 h. Refundable deposit. 105 46 i. Finance charges, if any, on items listed in 105 47 paragraphs "a" through "h". 105 48 If any or all of the items in paragraphs "a" 105 49 through "i" are excluded from the taxable lease price, 105 50 the owner shall maintain adequate records of the 106 1 amounts of those items. If the parties to a lease 106 2 enter into an agreement providing that the tax imposed 106 3 under this statute is to be paid by the lessee or 106 4 included in the monthly lease payments to be paid by 106 5 the lessee, the total cost of the tax shall not be 106 6 included in the computation of lease price for the 106 7 purpose of taxation under this section. The county 106 8 treasurer, the state department of transportation, or 106 9 the department of revenue and finance shall require 106 10 every applicant for a registration receipt for a 106 11 vehicle subject to tax under this section to supply 106 12 information as the county treasurer or director deems 106 13 necessary as to the date of the lease transaction, the 106 14 lease price, and other information relative to the 106 15 lease of the vehicle. 106 16 3. On or before the tenth day of each month, the 106 17 county treasurer or the state department of 106 18 transportation shall remit to the department the 106 19 amount of the taxes collected during the preceding 106 20 month. 106 21 4. If the lease is terminated prior to the 106 22 termination date contained in the lease agreement, no 106 23 refund shall be allowed for tax previously paid under 106 24 this section, except as provided in section 322G.4. 106 25 Sec. 130. NEW SECTION. 423.28 SALES TAX REPORT 106 26 – DEDUCTION. 106 27 Motor vehicle or trailer dealers, in making their 106 28 reports and returns to the department for the purpose 106 29 of paying the sales tax, shall be permitted to deduct 106 30 all sales prices from retail sales of vehicles subject 106 31 to registration or subject only to the issuance of a 106 32 certificate of title. Sales prices from sales of 106 33 vehicles subject to registration or subject only to 106 34 the issuance of a certificate of title are exempted 106 35 from the sales tax, but, if required by the director, 106 36 the sales prices shall be included in the returns made 106 37 by motor vehicle or trailer dealers under subchapter 106 38 II, and proper deductions taken pursuant to this 106 39 section. 106 40 Sec. 131. NEW SECTION. 423.29 COLLECTIONS BY 106 41 SELLERS. 106 42 Every seller who is a retailer and who is making 106 43 taxable sales of tangible personal property in Iowa 106 44 shall, at the time of selling the property, collect 106 45 the sales tax. Every seller who is a retailer 106 46 maintaining a place of business in this state and 106 47 selling tangible personal property for use in Iowa 106 48 shall, at the time of making the sale, whether within 106 49 or without the state, collect the use tax. Sellers 106 50 required to collect sales or use tax shall give to any 107 1 purchaser a receipt for the tax collected in the 107 2 manner and form prescribed by the director. 107 3 Every seller who is a retailer furnishing taxable 107 4 services in Iowa and every seller who is a retailer 107 5 maintaining a place of business in this state and 107 6 furnishing taxable services in Iowa or services 107 7 outside Iowa if the product or result of the service 107 8 is used in Iowa shall be subject to the provisions of 107 9 the preceding paragraph. 107 10 Sec. 132. NEW SECTION. 423.30 FOREIGN SELLERS 107 11 NOT REGISTERED UNDER THE AGREEMENT. 107 12 The director may, upon application, authorize the 107 13 collection of the use tax by any seller who is a 107 14 retailer not maintaining a place of business within 107 15 this state and not registered under the agreement, 107 16 who, to the satisfaction of the director, furnishes 107 17 adequate security to ensure collection and payment of 107 18 the tax. Such sellers shall be issued, without 107 19 charge, permits to collect tax subject to any 107 20 regulations which the director shall prescribe. When 107 21 so authorized, it shall be the duty of foreign sellers 107 22 to collect the tax upon all tangible personal property 107 23 sold, to the retailer's knowledge, for use within this 107 24 state, in the same manner and subject to the same 107 25 requirements as a retailer maintaining a place of 107 26 business within this state. The authority and permit 107 27 may be canceled when, at any time, the director 107 28 considers the security inadequate, or that tax can 107 29 more effectively be collected from the person using 107 30 property in this state. 107 31 The discretionary power granted in this section is 107 32 extended to apply in the case of foreign retailers 107 33 furnishing services enumerated in section 423.2. 107 34 Sec. 133. NEW SECTION. 423.31 FILING OF SALES 107 35 TAX RETURNS AND PAYMENT OF SALES TAX. 107 36 1. Each person subject to this section and section 107 37 423.36 and in accordance with the provisions of this 107 38 section and section 423.36 shall, on or before the 107 39 last day of the month following the close of each 107 40 calendar quarter during which such person is or has 107 41 become or ceased being subject to the provisions of 107 42 this section and section 423.36, make, sign, and file 107 43 a return for the calendar quarter in the form as may 107 44 be required. Returns shall show information relating 107 45 to sales prices including goods, wares, and services 107 46 converted to the use of such person, the amounts of 107 47 sales prices excluded and exempt from the tax, the 107 48 amounts of sales prices subject to tax, a calculation 107 49 of tax due, and any other information for the period 107 50 covered by the return as may be required. Returns 108 1 shall be signed by the retailer or the retailer's 108 2 authorized agent and must be certified by the retailer 108 3 to be correct in accordance with forms and rules 108 4 prescribed by the director. 108 5 2. Persons required to file, or committed to file 108 6 by reason of voluntary action or by order of the 108 7 department, deposits of taxes due under this 108 8 subchapter shall be entitled to take credit against 108 9 the total quarterly amount of tax due such amount as 108 10 shall have been deposited by such persons during that 108 11 calendar quarter. The balance remaining due after 108 12 such credit for deposits shall be entered on the 108 13 return. However, such person may be granted an 108 14 extension of time not exceeding thirty days for filing 108 15 the quarterly return, upon a proper showing of 108 16 necessity. If an extension is granted, such person 108 17 shall have paid by the twentieth day of the month 108 18 following the close of such quarter ninety percent of 108 19 the estimated tax due. 108 20 3. The sales tax forms prescribed by the director 108 21 shall be referred to as "retailers tax deposit". 108 22 Deposit forms shall be signed by the retailer or the 108 23 retailer's duly authorized agent, and shall be duly 108 24 certified by the retailer or agent to be correct. The 108 25 director may authorize incorporated banks and trust 108 26 companies or other depositories authorized by law 108 27 which are depositories or financial agents of the 108 28 United States, or of this state, to receive any sales 108 29 tax imposed under this chapter, in the manner, at the 108 30 times, and under the conditions the director 108 31 prescribes. The director shall prescribe the manner, 108 32 times, and conditions under which the receipt of the 108 33 tax by those depositories is to be treated as payment 108 34 of the tax to the department. 108 35 4. Every retailer at the time of making any return 108 36 required by this section shall compute and pay to the 108 37 department the tax due for the preceding period. The 108 38 tax on sales prices from the sale or rental of 108 39 tangible personal property under a consumer rental 108 40 purchase agreement as defined in section 537.3604, 108 41 subsection 8, is payable in the tax period of receipt. 108 42 5. Upon making application and receiving approval 108 43 from the director, a parent corporation and its 108 44 affiliated corporations that make retail sales of 108 45 tangible personal property or taxable enumerated 108 46 services may make deposits and file a consolidated 108 47 sales tax return for the affiliated group, pursuant to 108 48 rules adopted by the director. A parent corporation 108 49 and each affiliate corporation that files a 108 50 consolidated return are jointly and severally liable 109 1 for all tax, penalty, and interest found due for the 109 2 tax period for which a consolidated return is filed or 109 3 required to be filed. 109 4 A business required to file a consolidated sales 109 5 tax return shall file a form entitled "schedule of 109 6 consolidated business locations" with its quarterly 109 7 sales tax return that shows the taxpayer's 109 8 consolidated permit number, the permit number for each 109 9 Iowa business location, the state sales tax amount by 109 10 business location, and the amount of state sales tax 109 11 due on goods consumed that are not assigned to a 109 12 specific business location. Consolidated quarterly 109 13 sales tax returns that are not accompanied by the 109 14 schedule of consolidated business locations form are 109 15 considered incomplete and are subject to penalty under 109 16 section 421.27. 109 17 6. If necessary or advisable in order to insure 109 18 the payment of the tax, the director may require 109 19 returns and payment of the tax to be made for other 109 20 than quarterly periods, the provisions of this 109 21 section, or other provision to the contrary 109 22 notwithstanding. 109 23 Sec. 134. NEW SECTION. 423.32 FILING OF USE TAX 109 24 RETURNS AND PAYMENT OF USE TAX. 109 25 1. A retailer maintaining a place of business in 109 26 this state who is required to collect or a user who is 109 27 required to pay the use tax or a foreign retailer 109 28 authorized, pursuant to section 423.30, to collect the 109 29 use tax, shall remit to the department the amount of 109 30 tax on or before the last day of the month following 109 31 each calendar quarterly period. However, a retailer 109 32 who collects or owes more than fifteen hundred dollars 109 33 in use taxes in a month shall deposit with the 109 34 department or in a depository authorized by law and 109 35 designated by the director, the amount collected or 109 36 owed, with a deposit form for the month as prescribed 109 37 by the director. 109 38 a. The deposit form is due on or before the 109 39 twentieth day of the month following the month of 109 40 collection, except a deposit is not required for the 109 41 third month of the calendar quarter, and the total 109 42 quarterly amount, less the amounts deposited for the 109 43 first two months of the quarter, is due with the 109 44 quarterly report on the last day of the month 109 45 following the month of collection. At that time, the 109 46 retailer shall file with the department a return for 109 47 the preceding quarterly period in the form prescribed 109 48 by the director showing the purchase price of the 109 49 tangible personal property sold by the retailer during 109 50 the preceding quarterly period, the use of which is 110 1 subject to the use tax imposed by this chapter, and 110 2 other information the director deems necessary for the 110 3 proper administration of the use tax. 110 4 b. The return shall be accompanied by a remittance 110 5 of the use tax for the period covered by the return. 110 6 If necessary in order to ensure payment to the state 110 7 of the tax, the director may in any or all cases 110 8 require returns and payments to be made for other than 110 9 quarterly periods. The director, upon request and a 110 10 proper showing of necessity, may grant an extension of 110 11 time not to exceed thirty days for making any return 110 12 and payment. Returns shall be signed, in accordance 110 13 with forms and rules prescribed by the director, by 110 14 the retailer or the retailer's authorized agent, and 110 15 shall be certified by the retailer or agent to be 110 16 correct. 110 17 2. If it is reasonably expected, as determined by 110 18 rules prescribed by the director, that a retailer's 110 19 annual sales or use tax liability will not exceed one 110 20 hundred twenty dollars for a calendar year, the 110 21 retailer may request and the director may grant 110 22 permission to the retailer, in lieu of the quarterly 110 23 filing and remitting requirements set out elsewhere in 110 24 this section, to file the return required by and remit 110 25 the sales or use tax due under this section on a 110 26 calendar-year basis. The return and tax are due and 110 27 payable no later than January 31 following each 110 28 calendar year in which the retailer carries on 110 29 business. 110 30 3. The director, in cooperation with the 110 31 department of management, may periodically change the 110 32 filing and remittance thresholds by administrative 110 33 rule if in the best interests of the state and 110 34 taxpayer to do so. 110 35 Sec. 135. NEW SECTION. 423.33 LIABILITY OF 110 36 PERSONS OTHER THAN RETAILERS FOR PAYMENT OF SALES OR 110 37 USE TAX. 110 38 1. LIABILITY OF PURCHASER FOR SALES TAX. If a 110 39 purchaser fails to pay sales tax to the retailer 110 40 required to collect the tax, then in addition to all 110 41 of the rights, obligations, and remedies provided, the 110 42 tax is payable by the purchaser directly to the 110 43 department, and sections 423.31, 423.32, 423.37, 110 44 423.38, 423.39, 423.40, 423.41, and 423.42 apply to 110 45 the purchaser. For failure to pay, the retailer and 110 46 purchaser are liable, unless the circumstances 110 47 described in section 421.60, subsection 2, paragraph 110 48 "m", or section 423.45, subsection 4, paragraph "b" or 110 49 "e", or subsection 5, paragraph "c" or "e", are 110 50 applicable. 111 1 2. IMMEDIATE SUCCESSOR LIABILITY FOR SALES OR USE 111 2 TAX. If a retailer sells the retailer's business or 111 3 stock of goods or quits the business, the retailer 111 4 shall prepare a final return and pay all sales or use 111 5 tax due within the time required by law. The 111 6 immediate successor to the retailer, if any, shall 111 7 withhold a sufficient portion of the purchase price, 111 8 in money or money's worth, to pay the amount of 111 9 delinquent tax, interest, or penalty due and unpaid. 111 10 If the immediate successor of the business or stock of 111 11 goods intentionally fails to withhold the amount due 111 12 from the purchase price as provided in this 111 13 subsection, the immediate successor is personally 111 14 liable for the payment of delinquent taxes, interest, 111 15 and penalty accrued and unpaid on account of the 111 16 operation of the business by the immediate former 111 17 retailer, except when the purchase is made in good 111 18 faith as provided in section 421.28. However, a 111 19 person foreclosing on a valid security interest or 111 20 retaking possession of premises under a valid lease is 111 21 not an "immediate successor" for purposes of this 111 22 section. The department may waive the liability of 111 23 the immediate successor under this subsection if the 111 24 immediate successor exercised good faith in 111 25 establishing the amount of the previous liability. 111 26 3. EVENT SPONSOR'S LIABILITY FOR SALES TAX. A 111 27 person sponsoring a flea market or a craft, antique, 111 28 coin, or stamp show or similar event shall obtain from 111 29 every retailer selling tangible personal property or 111 30 taxable services at the event proof that the retailer 111 31 possesses a valid sales tax permit or secure from the 111 32 retailer a statement, taken in good faith, that 111 33 property or services offered for sale are not subject 111 34 to sales tax. Failure to do so renders a sponsor of 111 35 the event liable for payment of any sales tax, 111 36 interest, and penalty due and owing from any retailer 111 37 selling property or services at the event. Sections 111 38 423.31, 423.32, 423.37, 423.38, 423.39, 423.40, 111 39 423.41, and 423.42 apply to the sponsors. For 111 40 purposes of this subsection, a person sponsoring a 111 41 flea market or a craft, antique, coin, or stamp show 111 42 or similar event does not include an organization 111 43 which sponsors an event less than three times a year 111 44 or a state, county, or district agricultural fair. 111 45 Sec. 136. NEW SECTION. 423.34 LIABILITY OF USER. 111 46 Any person who uses any property or services 111 47 enumerated in section 423.2 upon which the use tax has 111 48 not been paid, either to the county treasurer or to a 111 49 retailer or direct to the department as required by 111 50 this subchapter, shall be liable for the payment of 112 1 tax, and shall on or before the last day of the month 112 2 next succeeding each quarterly period pay the use tax 112 3 upon all property or services used by the person 112 4 during the preceding quarterly period in the manner 112 5 and accompanied by such returns as the director shall 112 6 prescribe. All of the provisions of sections 423.32 112 7 and 423.33 with reference to the returns and payments 112 8 shall be applicable to the returns and payments 112 9 required by this section. 112 10 Sec. 137. NEW SECTION. 423.35 POSTING OF BOND TO 112 11 SECURE PAYMENT. 112 12 The director may, when necessary and advisable in 112 13 order to secure the collection of the sales or use 112 14 tax, authorize any person subject to either tax, and 112 15 any retailer required or authorized to collect those 112 16 taxes pursuant to the provisions of section 423.14, to 112 17 file with the department a bond, issued by a surety 112 18 company authorized to transact business in this state 112 19 and approved by the insurance commissioner as to 112 20 solvency and responsibility, in an amount as the 112 21 director may fix, to secure the payment of any tax, 112 22 interest, or penalties due or which may become due 112 23 from such person. In lieu of a bond, securities 112 24 approved by the director, in an amount which the 112 25 director may prescribe, may be deposited with the 112 26 department, which securities shall be kept in the 112 27 custody of the department and may be sold by the 112 28 director at public or private sale, without notice to 112 29 the depositor, if it becomes necessary to do so in 112 30 order to recover any tax, interest, or penalties due. 112 31 Upon the sale, the surplus, if any, above the amounts 112 32 due under this chapter shall be returned to the person 112 33 who deposited the securities. 112 34 Sec. 138. NEW SECTION. 423.36 PERMITS REQUIRED 112 35 TO COLLECT SALES OR USE TAX – APPLICATIONS – 112 36 REVOCATION. 112 37 1. A person shall not engage in or transact 112 38 business as a retailer making taxable sales of 112 39 tangible personal property or furnishing services 112 40 within this state or as a retailer making taxable 112 41 sales of tangible personal property or furnishing 112 42 services for use within this state, unless a permit 112 43 has been issued to the retailer under this section, 112 44 except as provided in subsection 6. Every person 112 45 desiring to engage in or transact business as a 112 46 retailer shall file with the department an application 112 47 for a permit to collect sales or use tax. Every 112 48 application for a sales or use tax permit shall be 112 49 made upon a form prescribed by the director and shall 112 50 set forth any information the director may require. 113 1 The application shall be signed by an owner of the 113 2 business if a natural person; in the case of a 113 3 retailer which is an association or partnership, by a 113 4 member or partner; and in the case of a retailer which 113 5 is a corporation, by an executive officer or some 113 6 person specifically authorized by the corporation to 113 7 sign the application, to which shall be attached the 113 8 written evidence of the person's authority. 113 9 2. To collect sales or use tax, the applicant must 113 10 have a permit for each place of business in the state 113 11 of Iowa. The department may deny a permit to an 113 12 applicant who is substantially delinquent in paying a 113 13 tax due, or the interest or penalty on the tax, 113 14 administered by the department at the time of 113 15 application. If the applicant is a partnership, a 113 16 permit may be denied if a partner is substantially 113 17 delinquent in paying any delinquent tax, penalty, or 113 18 interest. If the applicant is a corporation, a permit 113 19 may be denied if any officer having a substantial 113 20 legal or equitable interest in the ownership of the 113 21 corporation owes any delinquent tax, penalty, or 113 22 interest. 113 23 3. The department shall grant and issue to each 113 24 applicant a permit for each place of business in this 113 25 state where sales or use tax is collected. A permit 113 26 is not assignable and is valid only for the person in 113 27 whose name it is issued and for the transaction of 113 28 business at the place designated or at a place of 113 29 relocation within the state if the ownership remains 113 30 the same. 113 31 If an applicant is making sales outside Iowa for 113 32 use in this state or furnishing services outside Iowa, 113 33 the product or result of which will be used in this 113 34 state, that applicant shall be issued one use tax 113 35 permit by the department applicable to these out-of- 113 36 state sales or services. 113 37 4. Permits issued under this section are valid and 113 38 effective until revoked by the department. 113 39 5. If the holder of a permit fails to comply with 113 40 any of the provisions of this subchapter or of 113 41 subchapter II or III or any order or rule of the 113 42 department adopted under those subchapters or is 113 43 substantially delinquent in the payment of a tax 113 44 administered by the department or the interest or 113 45 penalty on the tax, or if the person is a corporation 113 46 and if any officer having a substantial legal or 113 47 equitable interest in the ownership of the corporation 113 48 owes any delinquent tax of the permit-holding 113 49 corporation, or interest or penalty on the tax, 113 50 administered by the department, the director may 114 1 revoke the permit. The director shall send notice by 114 2 mail to a permit holder informing that person of the 114 3 director's intent to revoke the permit and of the 114 4 permit holder's right to a hearing on the matter. If 114 5 the permit holder petitions the director for a hearing 114 6 on the proposed revocation, after giving ten days' 114 7 notice of the time and place of the hearing in 114 8 accordance with section 17A.18, subsection 3, the 114 9 matter may be heard and a decision rendered. The 114 10 director may restore permits after revocation. The 114 11 director shall adopt rules setting forth the period of 114 12 time a retailer must wait before a permit may be 114 13 restored or a new permit may be issued. The waiting 114 14 period shall not exceed ninety days from the date of 114 15 the revocation of the permit. 114 16 6. Sellers who are not regularly engaged in 114 17 selling at retail and do not have a permanent place of 114 18 business, but who are temporarily engaged in selling 114 19 from trucks, portable roadside stands, concessionaires 114 20 at state, county, district, or local fairs, carnivals, 114 21 or the like, shall report and remit the sales tax on a 114 22 temporary basis, under rules the director shall 114 23 provide for the efficient collection of the sales tax. 114 24 This subsection applies to sellers who are temporarily 114 25 engaged in furnishing services. 114 26 Persons engaged in selling tangible personal 114 27 property or furnishing services shall not be required 114 28 to obtain or retain a sales tax permit for a place of 114 29 business at which taxable sales of tangible personal 114 30 property or taxable performance of services will not 114 31 occur. 114 32 7. The provisions of subsection 1, dealing with 114 33 the lawful right of a retailer to transact business, 114 34 as applicable, apply to persons having receipts from 114 35 furnishing services enumerated in section 423.2, 114 36 except that a person holding a permit pursuant to 114 37 subsection 1 shall not be required to obtain any 114 38 separate sales tax permit for the purpose of engaging 114 39 in business involving the services. 114 40 8. a. Except as provided in paragraph "b", 114 41 purchasers, users, and consumers of tangible personal 114 42 property or enumerated services taxed pursuant to 114 43 subchapter II or III of this chapter or chapters 423B 114 44 and 423E may be authorized, pursuant to rules adopted 114 45 by the director, to remit tax owed directly to the 114 46 department instead of the tax being collected and paid 114 47 by the seller. To qualify for a direct pay tax 114 48 permit, the purchaser, user, or consumer must accrue a 114 49 tax liability of more than four thousand dollars in 114 50 tax under subchapters II and III in a semimonthly 115 1 period and make deposits and file returns pursuant to 115 2 section 423.31. This authority shall not be granted 115 3 or exercised except upon application to the director 115 4 and then only after issuance by the director of a 115 5 direct pay tax permit. 115 6 b. The granting of a direct pay tax permit is not 115 7 authorized for any of the following: 115 8 (1) Taxes imposed on the sales, furnishing, or 115 9 service of gas, electricity, water, heat, pay 115 10 television service, and communication service. 115 11 (2) Taxes imposed under sections 423.26 and 423.27 115 12 and chapter 423C. 115 13 Sec. 139. NEW SECTION. 423.37 FAILURE TO FILE 115 14 SALES OR USE TAX RETURNS – INCORRECT RETURNS. 115 15 1. As soon as practicable after a return is filed 115 16 and in any event within three years after the return 115 17 is filed, the department shall examine it, assess and 115 18 determine the tax due if the return is found to be 115 19 incorrect, and give notice to the person liable for 115 20 the tax of the assessment and determination as 115 21 provided in subsection 2. The period for the 115 22 examination and determination of the correct amount of 115 23 tax is unlimited in the case of a false or fraudulent 115 24 return made with the intent to evade tax or in the 115 25 case of a failure to file a return. 115 26 2. If a return required by this subchapter is not 115 27 filed, or if a return when filed is incorrect or 115 28 insufficient and the maker fails to file a corrected 115 29 or sufficient return within twenty days after the same 115 30 is required by notice from the department, the 115 31 department shall determine the amount of tax due from 115 32 information as the department may be able to obtain 115 33 and, if necessary, may estimate the tax on the basis 115 34 of external indices, such as number of employees of 115 35 the person concerned, rentals paid by the person, 115 36 stock on hand, or other factors. The department shall 115 37 give notice of the determination to the person liable 115 38 for the tax. The determination shall fix the tax 115 39 unless the person against whom it is assessed shall, 115 40 within sixty days after the giving of notice of the 115 41 determination, apply to the director for a hearing or 115 42 unless the taxpayer contests the determination by 115 43 paying the tax, interest, and penalty and timely 115 44 filing a claim for refund. At the hearing evidence 115 45 may be offered to support the determination or to 115 46 prove that it is incorrect. After the hearing the 115 47 director shall give notice of the decision to the 115 48 person liable for the tax. 115 49 3. The three-year period of limitation provided in 115 50 subsection 1 may be extended by a taxpayer by signing 116 1 a waiver agreement form to be provided by the 116 2 department. The agreement shall stipulate the period 116 3 of extension and the tax period to which the extension 116 4 applies. The agreement shall also provide that a 116 5 claim for refund may be filed by the taxpayer at any 116 6 time during the period of extension. 116 7 Sec. 140. NEW SECTION. 423.38 JUDICIAL REVIEW. 116 8 1. Judicial review of actions of the director may 116 9 be sought in accordance with the terms of the Iowa 116 10 administrative procedure Act. 116 11 2. For cause and upon a showing by the director 116 12 that collection of the tax in dispute is in doubt, the 116 13 court may order the petitioner to file with the clerk 116 14 a bond for the use of the respondent, with sureties 116 15 approved by the clerk, in the amount of tax appealed 116 16 from, conditioned that the petitioner shall perform 116 17 the orders of the court. 116 18 3. An appeal may be taken by the taxpayer or the 116 19 director to the supreme court of this state 116 20 irrespective of the amount involved. 116 21 Sec. 141. NEW SECTION. 423.39 SERVICE OF 116 22 NOTICES. 116 23 1. A notice authorized or required under this 116 24 subchapter may be given by mailing the notice to the 116 25 person for whom it is intended, addressed to that 116 26 person at the address given in the last return filed 116 27 by the person pursuant to this subchapter, or if no 116 28 return has been filed, then to any address obtainable. 116 29 The mailing of the notice is presumptive evidence of 116 30 the receipt of the notice by the person to whom 116 31 addressed. Any period of time which is determined 116 32 according to this subchapter by the giving of notice 116 33 commences to run from the date of mailing of the 116 34 notice. 116 35 2. The provisions of the Code relative to the 116 36 limitation of time for the enforcement of a civil 116 37 remedy shall not apply to any proceeding or action 116 38 taken to levy, appraise, assess, determine, or enforce 116 39 the collection of any tax or penalty provided by this 116 40 chapter. 116 41 Sec. 142. NEW SECTION. 423.40 PENALTIES – 116 42 OFFENSES – LIMITATION. 116 43 1. In addition to the sales or use tax or 116 44 additional sales or use tax, the taxpayer shall pay a 116 45 penalty as provided in section 421.27. The taxpayer 116 46 shall also pay interest on the sales or use tax or 116 47 additional sales or use tax at the rate in effect 116 48 under section 421.7 for each month counting each 116 49 fraction of a month as an entire month, computed from 116 50 the date the semimonthly or monthly tax deposit form 117 1 or return was required to be filed. The penalty and 117 2 interest shall be paid to the department and disposed 117 3 of in the same manner as other receipts under this 117 4 subchapter. Unpaid penalties and interest may be 117 5 enforced in the same manner as the taxes imposed by 117 6 this chapter. 117 7 2. a. Any person who knowingly sells tangible 117 8 personal property, tickets or admissions to places of 117 9 amusement and athletic events, or gas, water, 117 10 electricity, or communication service at retail, or 117 11 engages in the furnishing of services enumerated in 117 12 section 423.2, in this state without procuring a 117 13 permit to collect tax, as provided in section 423.36, 117 14 or who violates section 423.24 and the officers of any 117 15 corporation who so act are guilty of a serious 117 16 misdemeanor. 117 17 b. A person who knowingly sells tangible personal 117 18 property, tickets or admissions to places of amusement 117 19 and athletic events, or gas, water, electricity, or 117 20 communication service at retail, or engages in the 117 21 furnishing of services enumerated in section 423.2, in 117 22 this state after the person's sales tax permit has 117 23 been revoked and before it has been restored as 117 24 provided in section 423.36, subsection 5, and the 117 25 officers of any corporation who so act are guilty of 117 26 an aggravated misdemeanor. 117 27 3. A person who willfully attempts in any manner 117 28 to evade any tax imposed by this chapter or the 117 29 payment of the tax or a person who makes or causes to 117 30 be made a false or fraudulent semimonthly or monthly 117 31 tax deposit form or return with intent to evade any 117 32 tax imposed by subchapter II or III or the payment of 117 33 the tax is guilty of a class "D" felony. 117 34 4. The certificate of the director to the effect 117 35 that a tax has not been paid, that a return has not 117 36 been filed, or that information has not been supplied 117 37 pursuant to the provisions of this subchapter shall be 117 38 prima facie evidence thereof. 117 39 5. A person required to pay sales or use tax, or 117 40 to make, sign, or file a tax deposit form or return or 117 41 supplemental return, who willfully makes a false or 117 42 fraudulent tax deposit form or return, or willfully 117 43 fails to pay at least ninety percent of the tax or 117 44 willfully fails to make, sign, or file the tax deposit 117 45 form or return, at the time required by law, is guilty 117 46 of a fraudulent practice. 117 47 6. A prosecution for an offense specified in this 117 48 section shall be commenced within six years after its 117 49 commission. 117 50 Sec. 143. NEW SECTION. 423.41 BOOKS – 118 1 EXAMINATION. 118 2 Every retailer required or authorized to collect 118 3 taxes imposed by this chapter and every person using 118 4 in this state tangible personal property, services, or 118 5 the product of services shall keep records, receipts, 118 6 invoices, and other pertinent papers as the director 118 7 shall require, in the form that the director shall 118 8 require, for as long as the director has the authority 118 9 to examine and determine tax due. The director or any 118 10 duly authorized agent of the department may examine 118 11 the books, papers, records, and equipment of any 118 12 person either selling tangible personal property or 118 13 services or liable for the tax imposed by this 118 14 chapter, and investigate the character of the business 118 15 of any person in order to verify the accuracy of any 118 16 return made, or if a return was not made by the 118 17 person, ascertain and determine the amount due under 118 18 this chapter. These books, papers, and records shall 118 19 be made available within this state for examination 118 20 upon reasonable notice when the director deems it 118 21 advisable and so orders. The preceding requirements 118 22 shall likewise apply to users and persons furnishing 118 23 services enumerated in section 423.2. 118 24 Sec. 144. NEW SECTION. 423.42 STATUTES 118 25 APPLICABLE. 118 26 1. The director shall administer the taxes imposed 118 27 by subchapters II and III in the same manner and 118 28 subject to all the provisions of, and all of the 118 29 powers, duties, authority, and restrictions contained 118 30 in, section 422.25, subsection 4, section 422.30, and 118 31 sections 422.67 through 422.75. 118 32 2. All the provisions of section 422.26 shall 118 33 apply in respect to the taxes and penalties imposed by 118 34 subchapters II and III and this subchapter, except 118 35 that, as applied to any tax imposed by subchapters II 118 36 and III, the lien provided in section 422.26 shall be 118 37 prior and paramount over all subsequent liens upon any 118 38 personal property within this state, or right to such 118 39 personal property, belonging to the taxpayer without 118 40 the necessity of recording as provided in section 118 41 422.26. The requirements for recording shall, as 118 42 applied to the taxes imposed by subchapters II and 118 43 III, apply only to the liens upon real property. When 118 44 requested to do so by any person from whom a taxpayer 118 45 is seeking credit, or with whom the taxpayer is 118 46 negotiating the sale of any personal property, or by 118 47 any other person having a legitimate interest in such 118 48 information, the director shall, upon being satisfied 118 49 that such a situation exists, inform that person as to 118 50 the amount of unpaid taxes due by such taxpayer under 119 1 the provisions of subchapters II and III. The giving 119 2 of this information under these circumstances shall 119 3 not be deemed a violation of section 422.72 as applied 119 4 to subchapters II and III. 119 5 Sec. 145. NEW SECTION. 423.43 DEPOSIT OF REVENUE 119 6 – APPROPRIATIONS. 119 7 Except as otherwise provided in section 312.2, 119 8 subsection 15, all revenues derived from the use tax 119 9 on motor vehicles, trailers, and motor vehicle 119 10 accessories and equipment as collected pursuant to 119 11 sections 423.26 and 423.27 shall be deposited and 119 12 credited to the road use tax fund and shall be used 119 13 exclusively for the construction, maintenance, and 119 14 supervision of public highways. 119 15 1. Notwithstanding any provision of this section 119 16 which provides that all revenues derived from the use 119 17 tax on motor vehicles, trailers, and motor vehicle 119 18 accessories and equipment as collected pursuant to 119 19 sections 423.26 and 423.27 shall be deposited and 119 20 credited to the road use tax fund, eighty percent of 119 21 the revenues shall be deposited and credited as 119 22 follows: 119 23 a. Twenty-five percent of all such revenue, up to 119 24 a maximum of four million two hundred fifty thousand 119 25 dollars per quarter, shall be deposited into and 119 26 credited to the Iowa comprehensive petroleum 119 27 underground storage tank fund created in section 119 28 455G.3, and the moneys so deposited are a continuing 119 29 appropriation for expenditure under chapter 455G, and 119 30 moneys so appropriated shall not be used for other 119 31 purposes. 119 32 b. Any such revenues remaining shall be credited 119 33 to the road use tax fund. 119 34 2. Notwithstanding any other provision of this 119 35 section that provides that all revenue derived from 119 36 the use tax on motor vehicles, trailers, and motor 119 37 vehicle accessories and equipment as collected 119 38 pursuant to section 423.26 shall be deposited and 119 39 credited to the road use tax fund, twenty percent of 119 40 the revenues shall be credited and deposited as 119 41 follows: one-half to the road use tax fund and one- 119 42 half to the primary road fund to be used for the 119 43 commercial and industrial highway network. 119 44 3. All other revenue arising under the operation 119 45 of this chapter shall be credited to the general fund 119 46 of the state. 119 47 Sec. 146. NEW SECTION. 423.44 REIMBURSEMENT FOR 119 48 PRIMARY ROAD FUND. 119 49 From moneys deposited into the road use tax fund, 119 50 the department may credit to the primary road fund any 120 1 amount of revenues derived from the use tax on motor 120 2 vehicles, trailers, and motor vehicle accessories and 120 3 equipment as collected pursuant to sections 423.26 and 120 4 423.27 to the extent necessary to reimburse that fund 120 5 for the expenditures not otherwise eligible to be made 120 6 from the primary road fund, which are made for 120 7 repairing, improving, and maintaining bridges over the 120 8 rivers bordering the state. Expenditures for those 120 9 portions of bridges within adjacent states may be 120 10 included when they are made pursuant to an agreement 120 11 entered into under section 313.63, 313A.34, or 314.10. 120 12 Sec. 147. NEW SECTION. 423.45 REFUNDS – 120 13 EXEMPTION CERTIFICATES. 120 14 1. If an amount of tax represented by a retailer 120 15 to a consumer or user as constituting tax due is 120 16 computed upon a sales price that is not taxable or the 120 17 amount represented is in excess of the actual taxable 120 18 amount and the amount represented is actually paid by 120 19 the consumer or user to the retailer, the excess 120 20 amount of tax paid shall be returned to the consumer 120 21 or user upon notification to the retailer by the 120 22 department that an excess payment exists. 120 23 2. If an amount of tax represented by a retailer 120 24 to a consumer or user as constituting tax due is 120 25 computed upon a sales price that is not taxable or the 120 26 amount represented is in excess of the actual taxable 120 27 amount and the amount represented is actually paid by 120 28 the consumer or user to the retailer, the excess 120 29 amount of tax paid shall be returned to the consumer 120 30 or user upon proper notification to the retailer by 120 31 the consumer or user that an excess payment exists. 120 32 "Proper" notification is written notification which 120 33 allows a retailer at least sixty days to respond and 120 34 which contains enough information to allow a retailer 120 35 to determine the validity of a consumer's or user's 120 36 claim that an excess amount of tax has been paid. No 120 37 cause of action shall accrue against a retailer for 120 38 excess tax paid until sixty days after proper notice 120 39 has been given the retailer by the consumer or user. 120 40 3. In the circumstances described in subsections 1 120 41 and 2, a retailer has the option to either return any 120 42 excess amount of tax paid to a consumer or user, or to 120 43 remit the amount which a consumer or user has paid to 120 44 the retailer to the department. 120 45 4. a. The department shall issue or the seller 120 46 may separately provide exemption certificates in the 120 47 form prescribed by the director, including 120 48 certificates not made of paper, which conform to the 120 49 requirements of paragraph "c", to assist retailers in 120 50 properly accounting for nontaxable sales of tangible 121 1 personal property or services to purchasers for a 121 2 nontaxable purpose. The department shall also allow 121 3 the use of exemption certificates for those 121 4 circumstances in which a sale is taxable but the 121 5 seller is not obligated to collect tax from the buyer. 121 6 b. The sales tax liability for all sales of 121 7 tangible personal property and all sales of services 121 8 is upon the seller and the purchaser unless the seller 121 9 takes in good faith from the purchaser a valid 121 10 exemption certificate stating under penalty of perjury 121 11 that the purchase is for a nontaxable purpose and is 121 12 not a retail sale as defined in section 423.1, or the 121 13 seller is not obligated to collect tax due, or unless 121 14 the seller takes a fuel exemption certificate pursuant 121 15 to subsection 5. If the tangible personal property or 121 16 services are purchased tax free pursuant to a valid 121 17 exemption certificate which is taken in good faith by 121 18 the seller, and the tangible personal property or 121 19 services are used or disposed of by the purchaser in a 121 20 nonexempt manner, the purchaser is solely liable for 121 21 the taxes and shall remit the taxes directly to the 121 22 department and sections 423.31, 423.32, 423.37, 121 23 423.38, 423.39, 423.40, 423.41, and 423.42 shall apply 121 24 to the purchaser. 121 25 c. A valid exemption certificate is an exemption 121 26 certificate which is complete and correct according to 121 27 the requirements of the director. 121 28 d. A valid exemption certificate is taken in good 121 29 faith by the seller when the seller has exercised that 121 30 caution and diligence which honest persons of ordinary 121 31 prudence would exercise in handling their own business 121 32 affairs, and includes an honesty of intention and 121 33 freedom from knowledge of circumstances which ought to 121 34 put one upon inquiry as to the facts. In order for a 121 35 seller to take a valid exemption certificate in good 121 36 faith, the seller must exercise reasonable prudence to 121 37 determine the facts supporting the valid exemption 121 38 certificate, and if any facts upon such certificate 121 39 would lead a reasonable person to further inquiry, 121 40 such inquiry must be made with an honest intent to 121 41 discover the facts. 121 42 e. If the circumstances change and as a result the 121 43 tangible personal property or services are used or 121 44 disposed of by the purchaser in a nonexempt manner or 121 45 the purchaser becomes obligated to pay the tax, the 121 46 purchaser is liable solely for the taxes and shall 121 47 remit the taxes directly to the department in 121 48 accordance with this subsection. 121 49 5. a. The department shall issue or the seller 121 50 may separately provide fuel exemption certificates in 122 1 the form prescribed by the director. 122 2 b. For purposes of this subsection: 122 3 (1) "Fuel" includes gas, electricity, water, heat, 122 4 steam, and any other tangible personal property 122 5 consumed in creating heat, power, or steam. 122 6 (2) "Fuel consumed in processing" means fuel used 122 7 or consumed for processing including grain drying, for 122 8 providing heat or cooling for livestock buildings or 122 9 for greenhouses or buildings or parts of buildings 122 10 dedicated to the production of flowering, ornamental, 122 11 or vegetable plants intended for sale in the ordinary 122 12 course of business, for use in aquaculture production, 122 13 or for generating electric current, or in implements 122 14 of husbandry engaged in agricultural production. 122 15 (3) "Fuel exemption certificate" means an 122 16 exemption certificate given by the purchaser under 122 17 penalty of perjury to assist retailers in properly 122 18 accounting for nontaxable sales of fuel consumed in 122 19 processing. 122 20 (4) "Substantial change" means a change in the use 122 21 or disposition of tangible personal property and 122 22 services by the purchaser such that the purchaser pays 122 23 less than ninety percent of the purchaser's actual 122 24 sales tax liability. A change includes a misstatement 122 25 of facts in an application made pursuant to paragraph 122 26 "d" or in a fuel exemption certificate. 122 27 c. The seller may accept a completed fuel 122 28 exemption certificate, as prepared by the purchaser, 122 29 for three years unless the purchaser files a new 122 30 completed exemption certificate. If the fuel is 122 31 purchased tax free pursuant to a fuel exemption 122 32 certificate which is taken by the seller, and the fuel 122 33 is used or disposed of by the purchaser in a nonexempt 122 34 manner, the purchaser is solely liable for the taxes, 122 35 and shall remit the taxes directly to the department 122 36 and sections 423.31, 423.32, 423.37, 423.38, 423.39, 122 37 423.40, 423.41, and 423.42 shall apply to the 122 38 purchaser. 122 39 d. The purchaser may apply to the department for 122 40 its review of the fuel exemption certificate. In this 122 41 event, the department shall review the fuel exemption 122 42 certificate within twelve months from the date of 122 43 application and determine the correct amount of the 122 44 exemption. If the amount determined by the department 122 45 is different than the amount that the purchaser claims 122 46 is exempt, the department shall promptly notify the 122 47 purchaser of the determination. Failure of the 122 48 department to make a determination within twelve 122 49 months from the date of application shall constitute a 122 50 determination that the fuel exemption certificate is 123 1 correct as submitted. A determination of exemption by 123 2 the department is final unless the purchaser appeals 123 3 to the director for a revision of the determination 123 4 within sixty days after the date of the notice of 123 5 determination. The director shall grant a hearing, 123 6 and upon the hearing, the director shall determine the 123 7 correct exemption and notify the purchaser of the 123 8 decision by mail. The decision of the director is 123 9 final unless the purchaser seeks judicial review of 123 10 the director's decision under section 423.38 within 123 11 sixty days after the date of the notice of the 123 12 director's decision. Unless there is a substantial 123 13 change, the department shall not impose penalties 123 14 pursuant to section 423.40 both retroactively to 123 15 purchases made after the date of application and 123 16 prospectively until the department gives notice to the 123 17 purchaser that a tax or additional tax is due, for 123 18 failure to remit any tax due which is in excess of a 123 19 determination made under this section. A 123 20 determination made by the department pursuant to this 123 21 subsection does not constitute an audit for purposes 123 22 of section 423.37. 123 23 e. If the circumstances change and the fuel is 123 24 used or disposed of by the purchaser in a nonexempt 123 25 manner, the purchaser is solely liable for the taxes 123 26 and shall remit the taxes directly to the department 123 27 in accordance with paragraph "c". 123 28 f. The purchaser shall attach documentation to the 123 29 fuel exemption certificate which is reasonably 123 30 necessary to support the exemption for fuel consumed 123 31 in processing. If the purchaser files a new exemption 123 32 certificate with the seller, documentation shall not 123 33 be required if the purchaser previously furnished the 123 34 seller with this documentation and substantial change 123 35 has not occurred since that documentation was 123 36 furnished or if fuel consumed in processing is 123 37 separately metered and billed by the seller. 123 38 6. Nothing in this section authorizes any cause of 123 39 action by any person to recover sales or use taxes 123 40 directly from the state or extends any person's time 123 41 to seek a refund of sales or use taxes which have been 123 42 collected and remitted to the state. 123 43 Sec. 148. NEW SECTION. 423.46 RATE AND BASE 123 44 CHANGES. 123 45 The department shall make a reasonable effort to 123 46 provide sellers with as much advance notice as 123 47 practicable of a rate change and to notify sellers of 123 48 legislative changes in the tax base and amendments to 123 49 sales and use tax rules. Failure of a seller to 123 50 receive notice or failure of this state to provide 124 1 notice or limit the effective date of a rate change 124 2 shall not relieve the seller of its obligation to 124 3 collect sales or use taxes for this state. 124 4 Sec. 149. NEW SECTION. 423.47 REFUNDS AND 124 5 CREDITS. 124 6 If it shall appear that, as a result of mistake, an 124 7 amount of tax, penalty, or interest has been paid 124 8 which was not due under the provisions of this 124 9 chapter, such amount shall be credited against any tax 124 10 due, or to become due, on the books of the department 124 11 from the person who made the erroneous payment, or 124 12 such amount shall be refunded to such person by the 124 13 department. A claim for refund or credit that has not 124 14 been filed with the department within three years 124 15 after the tax payment for which a refund or credit is 124 16 claimed became due, or one year after such tax payment 124 17 was made, whichever time is the later, shall not be 124 18 allowed by the director. 124 19 SUBCHAPTER VI 124 20 SALES AND USE TAX ACT – ADMINISTRATION OF 124 21 RETAILERS REGISTERED VOLUNTARILY UNDER THE 124 22 AGREEMENT 124 23 Sec. 150. NEW SECTION. 423.48 RESPONSIBILITIES 124 24 AND RIGHTS OF SELLERS REGISTERED UNDER THE AGREEMENT. 124 25 1. By registering under the agreement, the seller 124 26 agrees to collect and remit sales and use taxes for 124 27 all its taxable Iowa sales. Iowa's withdrawal from 124 28 the agreement or revocation of its membership in the 124 29 agreement shall not relieve a seller from its 124 30 responsibility to remit taxes previously collected on 124 31 behalf of this state. 124 32 2. The following provisions apply to any seller 124 33 who registers under the agreement: 124 34 a. The seller may register on-line. 124 35 b. Registration under the agreement and the 124 36 collection of Iowa sales and use taxes shall not be 124 37 used as factors in determining whether the seller has 124 38 nexus with Iowa for any tax. 124 39 c. If registered under the agreement with any 124 40 other member state, the seller is considered to be 124 41 registered in Iowa. 124 42 d. The seller is not required to pay registration 124 43 fees or other charges. 124 44 e. A written signature from the seller is not 124 45 required. 124 46 f. The seller may register by way of an agent. 124 47 The agent's appointment shall be in writing and 124 48 submitted to the department if requested by the 124 49 department. 124 50 g. The seller may cancel its registration at any 125 1 time under procedures adopted by the governing board 125 2 established pursuant to the agreement. Cancellation 125 3 does not relieve the seller of its liability for 125 4 remitting any Iowa taxes collected. 125 5 3. The following additional responsibilities and 125 6 rights apply to model sellers: 125 7 a. A model 1 seller's obligation to calculate, 125 8 collect, and remit sales and use taxes shall be 125 9 performed by its certified service provider, except 125 10 for the seller's obligation to remit tax on its own 125 11 purchases. As the seller's agent, the certified 125 12 service provider is liable for its model 1 seller's 125 13 sales and use tax due Iowa on all sales transactions 125 14 it processes for the seller except as set out in this 125 15 section. A seller that contracts with a certified 125 16 service provider is not liable to the state for sales 125 17 or use tax due on transactions processed by the 125 18 certified service provider unless the seller 125 19 misrepresents the types of items or services it sells 125 20 or commits fraud. In the absence of probable cause to 125 21 believe that the seller has committed fraud or made a 125 22 material misrepresentation, the seller is not subject 125 23 to audit on the transactions processed by the 125 24 certified service provider. A model 1 seller is 125 25 subject to audit for transactions not processed by the 125 26 certified service provider. The director is 125 27 authorized to perform a system check of the model 1 125 28 seller and review the seller's procedures to determine 125 29 if the certified service provider's system is 125 30 functioning properly and the extent to which the 125 31 seller's transactions are being processed by the 125 32 certified service provider. 125 33 b. A model 2 seller shall calculate the amount of 125 34 tax due on a transaction by the use of a certified 125 35 automated system, but shall collect and remit tax on 125 36 its own sales. A person that provides a certified 125 37 automated system is responsible for the proper 125 38 functioning of that system and is liable to this state 125 39 for underpayments of tax attributable to errors in the 125 40 functioning of the certified automated system. A 125 41 seller that uses a certified automated system remains 125 42 responsible and is liable to the state for reporting 125 43 and remitting tax. 125 44 c. A model 3 seller shall use its own proprietary 125 45 automated system to calculate tax due and collect and 125 46 remit tax on its own sales. A model 3 seller is 125 47 liable for the failure of its proprietary automated 125 48 system to meet the applicable performance standard. 125 49 Sec. 151. NEW SECTION. 423.49 RETURNS. 125 50 1. All model 1, 2, or 3 sellers are subject to all 126 1 of the following return requirements: 126 2 a. The seller is required to file only one return 126 3 per month for this state and for all taxing 126 4 jurisdictions within this state. 126 5 b. The date for filing returns shall be determined 126 6 under rules adopted by the director. However, in no 126 7 case shall the return be due earlier than the 126 8 twentieth day of the following month. 126 9 c. The director shall request additional 126 10 information returns. These returns shall not be 126 11 required more frequently than every six months. 126 12 2. Any registered seller which does not have a 126 13 legal obligation to register in this state and is not 126 14 a model 1, 2, or 3 seller is subject to all of the 126 15 following return requirements: 126 16 a. The seller is required to file a return within 126 17 one year of the month of initial registration and 126 18 shall file a return on an annual basis in succeeding 126 19 years. 126 20 b. In addition to the return required in paragraph 126 21 "a", if the seller accumulates more than one thousand 126 22 dollars in total state and local tax, the seller is 126 23 required to file a return in the following month. 126 24 c. The format of the return and the due date of 126 25 the initial return and the annual return shall be 126 26 determined under rules adopted by the department. 126 27 Sec. 152. NEW SECTION. 423.50 REMITTANCE OF 126 28 FUNDS. 126 29 1. Only one remittance of tax per return is 126 30 required except as provided in this subsection. 126 31 Sellers that collect more than thirty thousand dollars 126 32 in sales and use taxes for this state during the 126 33 preceding calendar year shall be required to make 126 34 additional remittances as required under rules adopted 126 35 by the director. The filing of a return is not 126 36 required with an additional remittance. 126 37 2. All remittances shall be remitted 126 38 electronically. 126 39 3. Electronic payments may be made either by 126 40 automated clearinghouse credit or automated 126 41 clearinghouse debit. Any data accompanying a 126 42 remittance must be formatted using uniform tax type 126 43 and payment codes approved by the governing board 126 44 established pursuant to the agreement. An alternative 126 45 method for making same-day payments shall be 126 46 determined under rules adopted by the director. 126 47 4. If a due date falls on a legal banking holiday 126 48 in this state, the taxes are due on the succeeding 126 49 business day. 126 50 Sec. 153. NEW SECTION. 423.51 ADMINISTRATION OF 127 1 EXEMPTIONS. 127 2 1. The following provisions shall apply when a 127 3 purchaser claims an exemption: 127 4 a. The seller shall obtain identifying information 127 5 of the purchaser and the reason for claiming a tax 127 6 exemption at the time of the purchase as determined by 127 7 the member states acting jointly. 127 8 b. A purchaser is not required to provide a 127 9 signature to claim an exemption from tax unless a 127 10 paper certificate is used. 127 11 c. The seller shall use the standard form for 127 12 claiming an exemption electronically as adopted 127 13 jointly by the member states. 127 14 d. The seller shall obtain the same information 127 15 for proof of a claimed exemption regardless of the 127 16 medium in which the transaction occurred. 127 17 e. The department may authorize a system wherein 127 18 the purchaser exempt from the payment of the tax is 127 19 issued an identification number which shall be 127 20 presented to the seller at the time of the sale. 127 21 f. The seller shall maintain proper records of 127 22 exempt transactions and provide them to the department 127 23 when requested. 127 24 g. The department shall administer entity-based 127 25 and use-based exemptions when practicable through a 127 26 direct pay tax permit, an exemption certificate, or 127 27 another means that does not burden sellers. For the 127 28 purposes of this paragraph: 127 29 (1) An "entity-based exemption" is an exemption 127 30 based on who purchases the product or who sells the 127 31 product. 127 32 (2) A "use-based exemption" is an exemption based 127 33 on the purchaser's use of the product. 127 34 2. Sellers that follow the requirements of this 127 35 section are relieved from any tax otherwise applicable 127 36 if it is determined that the purchaser improperly 127 37 claimed an exemption and that the purchaser is liable 127 38 for the nonpayment of tax. This relief from liability 127 39 does not apply to a seller who fraudulently fails to 127 40 collect the tax or solicits purchasers to participate 127 41 in the unlawful claim of an exemption. 127 42 Sec. 154. NEW SECTION. 423.52 RELIEF FROM 127 43 LIABILITY FOR SELLERS AND CERTIFIED SERVICE PROVIDERS. 127 44 Sellers and certified service providers are 127 45 relieved from liability to this state or its local 127 46 taxing jurisdictions for having charged and collected 127 47 the incorrect amount of sales or use tax resulting 127 48 from the seller or certified service provider relying 127 49 on erroneous data provided by this state on tax rates, 127 50 boundaries, or taxing jurisdiction assignments. If 128 1 this state provides an address-based system for 128 2 assigning taxing jurisdictions whether or not pursuant 128 3 to the federal Mobile Telecommunications Sourcing Act, 128 4 the director is not required to provide liability 128 5 relief for errors resulting from reliance on the 128 6 information provided by this state. 128 7 Sec. 155. NEW SECTION. 423.53 BAD DEBTS AND 128 8 MODEL 1 SELLERS. 128 9 A certified service provider may claim, on behalf 128 10 of a model 1 seller, any bad debt deduction as 128 11 provided in section 423.21. The certified service 128 12 provider must credit or refund the full amount of any 128 13 bad debt deduction or refund received to the seller. 128 14 Sec. 156. NEW SECTION. 423.54 AMNESTY FOR 128 15 REGISTERED SELLERS. 128 16 1. Subject to the limitations in subsections 2 128 17 through 6, the following provisions apply: 128 18 a. Amnesty is provided for uncollected or unpaid 128 19 sales or use tax to a seller who registers to pay or 128 20 to collect and remit applicable sales or use tax on 128 21 sales made to purchasers in this state in accordance 128 22 with the terms of the agreement, provided the seller 128 23 was not so registered in this state in the twelve- 128 24 month period preceding the commencement of Iowa's 128 25 participation in the agreement. 128 26 b. Amnesty precludes assessment of the seller for 128 27 uncollected or unpaid sales or use tax together with 128 28 penalty or interest for sales made during the period 128 29 the seller was not registered in this state, provided 128 30 registration occurs within twelve months of the 128 31 commencement of Iowa's participation in the agreement. 128 32 c. Amnesty shall be provided to any seller 128 33 lawfully registered under the agreement by any other 128 34 member state prior to the date of the commencement of 128 35 Iowa's participation in the agreement. 128 36 2. Amnesty is not available to a seller with 128 37 respect to any matter or matters for which the seller 128 38 received notice of the commencement of an audit and 128 39 which audit is not yet finally resolved, including any 128 40 related administrative and judicial processes. 128 41 3. Amnesty is not available for sales or use taxes 128 42 already paid or remitted or to taxes collected by the 128 43 seller. 128 44 4. Amnesty is fully effective absent the seller's 128 45 fraud or intentional misrepresentation of a material 128 46 fact as long as the seller continues registration and 128 47 continues payment or collection and remittance of 128 48 applicable sales or use taxes for a period of at least 128 49 thirty-six months. The statute of limitations 128 50 applicable to asserting a tax liability is tolled 129 1 during this thirty-six month period. 129 2 5. Amnesty is applicable only to sales or use 129 3 taxes due from a seller in its capacity as a seller 129 4 and not to sales or use taxes due from a seller in its 129 5 capacity as a buyer. 129 6 6. The director may allow amnesty on terms and 129 7 conditions more favorable to a seller than the terms 129 8 required by this section. 129 9 Sec. 157. NEW SECTION. 423.55 DATABASES. 129 10 The department shall provide and maintain databases 129 11 required by the agreement for the benefit of sellers 129 12 registered under the agreement. 129 13 Sec. 158. NEW SECTION. 423.56 CONFIDENTIALITY 129 14 AND PRIVACY PROTECTIONS UNDER MODEL 1. 129 15 1. As used in this section: 129 16 a. "Anonymous data" means information that does 129 17 not identify a person. 129 18 b. "Confidential taxpayer information" means all 129 19 information that is protected under this state's laws, 129 20 rules, and privileges. 129 21 c. "Personally identifiable information" means 129 22 information that identifies a person. 129 23 2. With very limited exceptions, a certified 129 24 service provider shall perform its tax calculation, 129 25 remittance, and reporting functions without retaining 129 26 the personally identifiable information of consumers. 129 27 3. A certified service provider may perform its 129 28 services in this state only if the certified service 129 29 provider certifies that: 129 30 a. Its system has been designed and tested to 129 31 ensure that the fundamental precept of anonymity is 129 32 respected. 129 33 b. Personally identifiable information is only 129 34 used and retained to the extent necessary for the 129 35 administration of model 1 sellers with respect to 129 36 exempt purchasers. 129 37 c. It provides consumers clear and conspicuous 129 38 notice of its information practices, including what 129 39 information it collects, how it collects the 129 40 information, how it uses the information, how long, if 129 41 at all, it retains the information, and whether it 129 42 discloses the information to member states. This 129 43 notice shall be satisfied by a written privacy policy 129 44 statement accessible by the public on the official web 129 45 site of the certified service provider. 129 46 d. Its collection, use, and retention of 129 47 personally identifiable information is limited to that 129 48 required by the member states to ensure the validity 129 49 of exemptions from taxation that are claimed by reason 129 50 of a consumer's status or the intended use of the 130 1 goods or services purchased. 130 2 e. It provides adequate technical, physical, and 130 3 administrative safeguards so as to protect personally 130 4 identifiable information from unauthorized access and 130 5 disclosure. 130 6 4. The department shall provide public 130 7 notification of its practices relating to the 130 8 collection, use, and retention of personally 130 9 identifiable information. 130 10 5. When any personally identifiable information 130 11 that has been collected and retained by the department 130 12 or certified service provider is no longer required 130 13 for the purposes set forth in subsection 3, paragraph 130 14 "d", that information shall no longer be retained by 130 15 the department or certified service provider. 130 16 6. When personally identifiable information 130 17 regarding an individual is retained by or on behalf of 130 18 this state, this state shall provide reasonable access 130 19 by such individual to his or her own information in 130 20 the state's possession and a right to correct any 130 21 inaccurately recorded information. 130 22 7. This privacy policy is subject to enforcement 130 23 by the department and the attorney general. 130 24 8. This state's laws and rules regarding the 130 25 collection, use, and maintenance of confidential 130 26 taxpayer information remain fully applicable and 130 27 binding. Without limitation, the agreement does not 130 28 enlarge or limit the state's or department's authority 130 29 to: 130 30 a. Conduct audits or other review as provided 130 31 under the agreement and state law. 130 32 b. Provide records pursuant to its examination of 130 33 public records law, disclosure laws of individual 130 34 governmental agencies, or other regulations. 130 35 c. Prevent, consistent with state law, disclosures 130 36 of confidential taxpayer information. 130 37 d. Prevent, consistent with federal law, 130 38 disclosures or misuse of federal return information 130 39 obtained under a disclosure agreement with the 130 40 internal revenue service. 130 41 e. Collect, disclose, disseminate, or otherwise 130 42 use anonymous data for governmental purposes. 130 43 9. This privacy policy does not preclude the 130 44 certification of a certified service provider whose 130 45 privacy policy is more protective of confidential 130 46 taxpayer information or personally identifiable 130 47 information than is required by the agreement. 130 48 Sec. 159. NEW SECTION. 423.57 STATUTES 130 49 APPLICABLE. 130 50 The director shall administer this subchapter as it 131 1 relates to the taxes imposed in this chapter in the 131 2 same manner and subject to all the provisions of, and 131 3 all of the powers, duties, authority, and restrictions 131 4 contained in sections 423.14, 423.15, 423.16, 423.17, 131 5 423.18, 423.19, 423.20, 423.21, 423.22, 423.23, 131 6 423.24, 423.25, 423.28, 423.29, 423.31, 423.32, 131 7 423.33, 423.34, 423.35, 423.37, 423.38, 423.39, 131 8 423.40, 423.41, and 423.42, section 423.43, subsection 131 9 3, and sections 423.45, 423.46, and 423.47. 131 10 Sec. 160. 131 11 1. Sections 422.42 through 422.59, Code 2003, are 131 12 repealed. 131 13 2. Chapter 423, Code 2003, is repealed. 131 14 COORDINATING AMENDMENTS 131 15 Sec. 161. Section 15.331A, Code 2003, is amended 131 16 to read as follows: 131 17 15.331A SALES, SERVICES, AND USE TAX REFUND – 131 18 CONTRACTOR OR SUBCONTRACTOR. 131 19 The eligible business or a supporting business 131 20 shall be entitled to a refund of the sales and use 131 21 taxes paid underchapters 422 andchapter 423 for gas, 131 22 electricity, water, or sewer utility services, goods, 131 23 wares, or merchandise, or on services rendered, 131 24 furnished, or performed to or for a contractor or 131 25 subcontractor and used in the fulfillment of a written 131 26 contract relating to the construction or equipping of 131 27 a facility within the economic development area of the 131 28 eligible business or a supporting business. Taxes 131 29 attributable to intangible property and furniture and 131 30 furnishings shall not be refunded. 131 31 To receive the refund a claim shall be filed by the 131 32 eligible business or a supporting business with the 131 33 department of revenue and finance as follows: 131 34 1. The contractor or subcontractor shall state 131 35 under oath, on forms provided by the department, the 131 36 amount of the sales of goods, wares, or merchandise or 131 37 services rendered, furnished, or performed including 131 38 water, sewer, gas, and electric utility services for 131 39 use in the economic development area upon which sales 131 40 or use tax has been paid prior to the project 131 41 completion, and shall file the forms with the eligible 131 42 business or supporting business before final 131 43 settlement is made. 131 44 2. The eligible business or a supporting business 131 45 shall, not more than one year after project 131 46 completion, make application to the department for any 131 47 refund of the amount of the sales and use taxes paid 131 48 pursuant to chapter422 or423 upon any goods, wares, 131 49 or merchandise, or services rendered, furnished, or 131 50 performed, including water, sewer, gas, and electric 132 1 utility services. The application shall be made in 132 2 the manner and upon forms to be provided by the 132 3 department, and the department shall audit the claim 132 4 and, if approved, issue a warrant to the eligible 132 5 business or supporting business in the amount of the 132 6 sales or use tax which has been paid to the state of 132 7 Iowa under a contract. A claim filed by the eligible 132 8 business or a supporting business in accordance with 132 9 this section shall not be denied by reason of a 132 10 limitation provision set forth in chapter 421, 422,or 132 11 423. 132 12 3. A contractor or subcontractor who willfully 132 13 makes a false report of tax paid under the provisions 132 14 of this section is guilty of a simple misdemeanor and 132 15 in addition is liable for the payment of the tax and 132 16 any applicable penalty and interest. 132 17 Sec. 162. Section 15.334A, Code 2003, is amended 132 18 to read as follows: 132 19 15.334A SALES AND USE TAX EXEMPTION. 132 20 An eligible business may claim an exemption from 132 21 sales and use taxation under section422.45423.3, 132 22 subsection2746, for property which is exempt from 132 23 taxation under section 15.334, notwithstanding the 132 24 requirements of section422.45423.3, subsection27132 25 46, or any other provision of the Code to the 132 26 contrary. 132 27 Sec. 163. Section 15A.9, subsections 5, 6, and 7, 132 28 Code 2003, are amended to read as follows: 132 29 5. PROPERTY TAX EXEMPTION. 132 30 a. All property, as defined in section 427A.1, 132 31 subsection 1, paragraphs "e" and "j", Code 1993, used 132 32 by the primary business or a supporting business and 132 33 located within the zone, shall be exempt from property 132 34 taxation for a period of twenty years beginning with 132 35 the year it is first assessed for taxation. In order 132 36 to be eligible for this exemption, the property shall 132 37 be acquired or leased by the primary business or a 132 38 supporting business or relocated by the primary 132 39 business or a supporting business to the zone from 132 40 outside the state prior to project completion. 132 41 b. Property which is exempt for property tax 132 42 purposes under this subsection is eligible for the 132 43 sales and use tax exemption under section422.45132 44 423.3, subsection2746, notwithstanding that 132 45 subsection or any other provision of the Code to the 132 46 contrary. 132 47 6. SALES, SERVICES, AND USE TAX REFUND. Taxes 132 48 paid pursuant to chapter422 or423 on thegross132 49receiptssales price or rental price of property 132 50 purchased or rented by the primary business or a 133 1 supporting business for use by the primary business or 133 2 a supporting business within the zone or on gas, 133 3 electricity, water, and sewer utility services prior 133 4 to project completion shall be refunded to the primary 133 5 business or supporting business if the item was 133 6 purchased or the service was performed or received 133 7 prior to project completion. Claims under this 133 8 section shall be submitted on forms provided by the 133 9 department of revenue and finance not later than six 133 10 months after project completion. The refund in this 133 11 subsection shall not apply to furniture or 133 12 furnishings, or intangible property. 133 13 7. SALES, SERVICES, AND USE TAX REFUND – 133 14 CONTRACTOR OR SUBCONTRACTOR. The primary business or 133 15 a supporting business shall be entitled to a refund of 133 16 the sales and use taxes paid underchapters 422 and133 17 chapter 423 for gas, electricity, water, or sewer 133 18 utility services, goods, wares, or merchandise, or on 133 19 services rendered, furnished, or performed to or for a 133 20 contractor or subcontractor and used in the 133 21 fulfillment of a written contract relating to the 133 22 construction or equipping of a facility within the 133 23 zone of the primary business or a supporting business. 133 24 Taxes attributable to intangible property and 133 25 furniture and furnishings shall not be refunded. 133 26 To receive the refund a claim shall be filed by the 133 27 primary business or a supporting business with the 133 28 department of revenue and finance as follows: 133 29 a. The contractor or subcontractor shall state 133 30 under oath, on forms provided by the department, the 133 31 amount of the sales of goods, wares, or merchandise or 133 32 services rendered, furnished, or performed including 133 33 water, sewer, gas, and electric utility services for 133 34 use in the zone upon which sales or use tax has been 133 35 paid prior to the project completion, and shall file 133 36 the forms with the primary business or supporting 133 37 business before final settlement is made. 133 38 b. The primary business or a supporting business 133 39 shall, not more than six months after project 133 40 completion, make application to the department for any 133 41 refund of the amount of the sales and use taxes paid 133 42 pursuant to chapter422 or423 upon any goods, wares, 133 43 or merchandise, or services rendered, furnished, or 133 44 performed, including water, sewer, gas, and electric 133 45 utility services. The application shall be made in 133 46 the manner and upon forms to be provided by the 133 47 department, and the department shall audit the claim 133 48 and, if approved, issue a warrant to the primary 133 49 business or supporting business in the amount of the 133 50 sales or use tax which has been paid to the state of 134 1 Iowa under a contract. A claim filed by the primary 134 2 business or a supporting business in accordance with 134 3 this subsection shall not be denied by reason of a 134 4 limitation provision set forth in chapter 421, 422, or 134 5 423. 134 6 c. A contractor or subcontractor who willfully 134 7 makes a false report of tax paid under the provisions 134 8 of this subsection is guilty of a simple misdemeanor 134 9 and in addition is liable for the payment of the tax 134 10 and any applicable penalty and interest. 134 11 Sec. 164. Section 28A.17, unnumbered paragraph 1, 134 12 Code 2003, is amended to read as follows: 134 13 If an authority is established as provided in 134 14 section 28A.6 and after approval of a referendum by a 134 15 simple majority of votes cast in each metropolitan 134 16 area in favor of the sales and services tax, the 134 17 governing board of a county in this state within a 134 18 metropolitan area which is part of the authority shall 134 19 impose, at the request of the authority, a local sales 134 20 and services tax at the rate of one-fourth of one 134 21 percent ongross receiptsthe sales price taxed by 134 22 this state underchapter 422, division IVsection 134 23 423.2, within the metropolitan area located in this 134 24 state. The referendum shall be called by resolution 134 25 of the board and shall be held as provided in section 134 26 28A.6 to the extent applicable. The ballot 134 27 proposition shall contain a statement as to the 134 28 specific purpose or purposes for which the revenues 134 29 shall be expended and the date of expiration of the 134 30 tax. The local sales and services tax shall be 134 31 imposed on the same basis, with the same exceptions, 134 32 and following the same administrative procedures as 134 33 provided for a county under sections 422B.8 and 134 34 422B.9. The amount of the sale, for the purposes of 134 35 determining the amount of the local sales and services 134 36 tax under this section, does not include the amount of 134 37 any local sales and services tax imposed under 134 38 sections 422B.8 and 422B.9. 134 39 Sec. 165. Section 29C.15, Code 2003, is amended to 134 40 read as follows: 134 41 29C.15 TAX-EXEMPT PURCHASES. 134 42 All purchases under the provisions of this chapter 134 43 shall be exempt from the taxes imposed by sections 134 44422.43423.2 and423.2423.5. 134 45 Sec. 166. Section 99E.10, subsection 1, paragraph 134 46 b, Code 2003, is amended to read as follows: 134 47 b. An amount equal to the product of the state 134 48 sales tax rate under section422.43423.2 multiplied 134 49 by the gross sales price of each ticket or share sold 134 50 shall be deducted as the sales tax on the sale of that 135 1 ticket or share, remitted to the treasurer of state 135 2 and deposited into the state general fund. 135 3 Sec. 167. Section 123.187, subsection 2, Code 135 4 2003, is amended to read as follows: 135 5 2. A winery licensed or permitted pursuant to laws 135 6 regulating alcoholic beverages in a state which 135 7 affords this state an equal reciprocal shipping 135 8 privilege may ship into this state by private common 135 9 carrier, to a person twenty-one years of age or older, 135 10 not more than eighteen liters of wine per month, for 135 11 consumption or use by the person. Such wine shall not 135 12 be resold. Shipment of wine pursuant to this 135 13 subsection is not subject to sales tax under section 135 14422.43423.2, use tax under section423.2423.5, or 135 15 the wine gallonage tax under section 123.183, and does 135 16 not require a refund value for beverage container 135 17 control purposes under chapter 455C. 135 18 Sec. 168. Section 262.54, Code 2003, is amended to 135 19 read as follows: 135 20 262.54 COMPUTER SALES. 135 21 Sales, by an institution under the control of the 135 22 board of regents, of computer equipment, computer 135 23 software, and computer supplies to students and 135 24 faculty at the institution are retail sales under 135 25 chapter422, division IV423. 135 26 Sec. 169. Section 303.9, subsection 2, Code 2003, 135 27 is amended to read as follows: 135 28 2. The department may sell mementos and other 135 29 items relating to Iowa history and historic sites on 135 30 the premises of property under control of the 135 31 department and at the state capitol. Notwithstanding 135 32 sections 18.12 and 18.16, the department may directly 135 33 and independently enter into rental and lease 135 34 agreements with private vendors for the purpose of 135 35 selling mementos. All fees and income produced by the 135 36 sales and rental or lease agreements shall be credited 135 37 to the account of the department. The mementos and 135 38 other items sold by the department or vendors under 135 39 this subsection are exempt from section 18.6.The135 40department is not a retailer under chapter 422 and the135 41sale of such mementos and other items by the135 42department is not a retail sale under chapter 422 and135 43is exempt from the sales tax.135 44 Sec. 170. Section 312.1, subsection 4, Code 2003, 135 45 is amended to read as follows: 135 46 4. To the extent provided in section423.24135 47 423.43, subsection 1, paragraph "b", from revenue 135 48 derived from the use tax, under chapter 423 on motor 135 49 vehicles, trailers, and motor vehicle accessories and 135 50 equipment. 136 1 Sec. 171. Section 312.2, subsections 14 and 16, 136 2 Code 2003, are amended to read as follows: 136 3 14. The treasurer of state, before making the 136 4 allotments provided for in this section, shall credit 136 5 monthly from the road use tax fund to the general fund 136 6 of the state from revenue credited to the road use tax 136 7 fund under section423.24423.43, subsection 1, 136 8 paragraph "b", an amount equal to one-twentieth of 136 9 eighty percent of the revenue from the operation of 136 10 section423.7423.26. 136 11 There is appropriated from the general fund of the 136 12 state for each fiscal year to the state department of 136 13 transportation the amount of revenues credited to the 136 14 general fund of the state during the fiscal year under 136 15 this subsection to be used for purposes of public 136 16 transit assistance under chapter 324A. 136 17 16. The treasurer of state, before making the 136 18 allotments provided for in this section, shall credit 136 19 monthly from the road use tax fund to the motorcycle 136 20 rider education fund established in section 321.180B, 136 21 an amount equal to one dollar per year of license 136 22 validity for each issued or renewed driver's license 136 23 which is valid for the operation of a motorcycle. 136 24 Moneys credited to the motorcycle rider education fund 136 25 under this subsection shall be taken from moneys 136 26 credited to the road use tax fund under section423.24136 27 423.43. 136 28 Sec. 172. Section 321.20, subsection 5, Code 2003, 136 29 is amended to read as follows: 136 30 5. The amount of tax to be paid under section 136 31423.7423.26. 136 32 Sec. 173. Section 321.24, subsections 1 and 3, 136 33 Code 2003, are amended to read as follows: 136 34 1. Upon receipt of the application for title and 136 35 payment of the required fees for a motor vehicle, 136 36 trailer, or semitrailer, the county treasurer or the 136 37 department shall, when satisfied as to the 136 38 application's genuineness and regularity, and, in the 136 39 case of a mobile home or manufactured home, that taxes 136 40 are not owing under chapter 435, issue a certificate 136 41 of title and, except for a mobile home or manufactured 136 42 home, a registration receipt, and shall file the 136 43 application, the manufacturer's or importer's 136 44 certificate, the certificate of title, or other 136 45 evidence of ownership, as prescribed by the 136 46 department. The registration receipt shall be 136 47 delivered to the owner and shall contain upon its face 136 48 the date issued, the name and address of the owner, 136 49 the registration number assigned to the vehicle, the 136 50 amount of the fee paid, the amount of tax paid 137 1 pursuant to section423.7423.26, the type of fuel 137 2 used, and a description of the vehicle as determined 137 3 by the department, and upon the reverse side a form 137 4 for notice of transfer of the vehicle. The name and 137 5 address of any lessee of the vehicle shall not be 137 6 printed on the registration receipt or certificate of 137 7 title. Up to three owners may be listed on the 137 8 registration receipt and certificate of title. 137 9 3. The certificate of title shall contain upon its 137 10 face the identical information required upon the face 137 11 of the registration receipt. In addition, the 137 12 certificate of title shall contain a statement of the 137 13 owner's title, the title number assigned to the owner 137 14 or owners of the vehicle, the amount of tax paid 137 15 pursuant to section423.7423.26, the name and address 137 16 of the previous owner, and a statement of all security 137 17 interests and encumbrances as shown in the 137 18 application, upon the vehicle described, including the 137 19 nature of the security interest, date of notation, and 137 20 name and address of the secured party. 137 21 Sec. 174. Section 321.34, subsection 7, paragraph 137 22 c, Code 2003, is amended to read as follows: 137 23 c. The fees for a collegiate registration plate 137 24 are as follows: 137 25 (1) A registration fee of twenty-five dollars. 137 26 (2) A special collegiate registration fee of 137 27 twenty-five dollars. 137 28 These fees are in addition to the regular annual 137 29 registration fee. The fees collected by the director 137 30 under this subsection shall be paid monthly to the 137 31 treasurer of state and credited by the treasurer of 137 32 state to the road use tax fund. Notwithstanding 137 33 section423.24423.43 and prior to the revenues being 137 34 credited to the road use tax fund under section423.24137 35 423.43, subsection 1, paragraph "b", the treasurer of 137 36 state shall credit monthly from those revenues 137 37 respectively, to Iowa state university of science and 137 38 technology, the university of northern Iowa, and the 137 39 state university of Iowa, the amount of the special 137 40 collegiate registration fees collected in the previous 137 41 month for collegiate registration plates designed for 137 42 the university. The moneys credited are appropriated 137 43 to the respective universities to be used for 137 44 scholarships for students attending the universities. 137 45 Sec. 175. Section 321.34, subsection 11, paragraph 137 46 c, Code 2003, is amended to read as follows: 137 47 c. The special natural resources fee for letter 137 48 number designated natural resources plates is thirty- 137 49 five dollars. The fee for personalized natural 137 50 resources plates is forty-five dollars which shall be 138 1 paid in addition to the special natural resources fee 138 2 of thirty-five dollars. The fees collected by the 138 3 director under this subsection shall be paid monthly 138 4 to the treasurer of state and credited to the road use 138 5 tax fund. Notwithstanding section423.24423.43, and 138 6 prior to the crediting of revenues to the road use tax 138 7 fund under section423.24423.43, subsection 1, 138 8 paragraph "b", the treasurer of state shall credit 138 9 monthly from those revenues to the Iowa resources 138 10 enhancement and protection fund created pursuant to 138 11 section 455A.18, the amount of the special natural 138 12 resources fees collected in the previous month for the 138 13 natural resources plates. 138 14 Sec. 176. Section 321.34, subsection 11A, 138 15 paragraph c, Code 2003, is amended to read as follows: 138 16 c. The special fee for letter number designated 138 17 love our kids plates is thirty-five dollars. The fee 138 18 for personalized love our kids plates is twenty-five 138 19 dollars, which shall be paid in addition to the 138 20 special love our kids fee of thirty-five dollars. The 138 21 fees collected by the director under this subsection 138 22 shall be paid monthly to the treasurer of state and 138 23 credited to the road use tax fund. Notwithstanding 138 24 section423.24423.43, and prior to the crediting of 138 25 revenues to the road use tax fund under section423.24138 26 423.43, subsection 1, paragraph "b", the treasurer of 138 27 state shall transfer monthly from those revenues to 138 28 the Iowa department of public health the amount of the 138 29 special fees collected in the previous month for the 138 30 love our kids plates. Notwithstanding section 8.33, 138 31 moneys transferred under this subsection shall not 138 32 revert to the general fund of the state. 138 33 Sec. 177. Section 321.34, subsection 11B, 138 34 paragraph c, Code 2003, is amended to read as follows: 138 35 c. The special fee for letter number designated 138 36 motorcycle rider education plates is thirty-five 138 37 dollars. The fee for personalized motorcycle rider 138 38 education plates is twenty-five dollars, which shall 138 39 be paid in addition to the special motorcycle rider 138 40 education fee of thirty-five dollars. The fees 138 41 collected by the director under this subsection shall 138 42 be paid monthly to the treasurer of state and credited 138 43 to the road use tax fund. Notwithstanding section 138 44423.24423.43, and prior to the crediting of revenues 138 45 to the road use tax fund under section423.24423.43, 138 46 subsection 1, paragraph "b", the treasurer of state 138 47 shall transfer monthly from those revenues to the 138 48 department for use in accordance with section 138 49 321.180B, subsection 6, the amount of the special fees 138 50 collected in the previous month for the motorcycle 139 1 rider education plates. 139 2 Sec. 178. Section 321.34, subsection 13, paragraph 139 3 d, Code 2003, is amended to read as follows: 139 4 d. A state agency may submit a request to the 139 5 department recommending a special registration plate. 139 6 The alternate fee for letter number designated plates 139 7 is thirty-five dollars with a ten dollar annual 139 8 special renewal fee. The fee for personalized plates 139 9 is twenty-five dollars which is in addition to the 139 10 alternative fee of thirty-five dollars with an annual 139 11 personalized plate renewal fee of five dollars which 139 12 is in addition to the special renewal fee of ten 139 13 dollars. The alternate fees are in addition to the 139 14 regular annual registration fee. The alternate fees 139 15 collected under this paragraph shall be paid monthly 139 16 to the treasurer of state and credited to the road use 139 17 tax fund. Notwithstanding section423.24423.43, and 139 18 prior to the crediting of the revenues to the road use 139 19 tax fund under section423.24423.43, subsection 1, 139 20 paragraph "b", the treasurer of state shall credit 139 21 monthly the amount of the alternate fees collected in 139 22 the previous month to the state agency that 139 23 recommended the special registration plate. 139 24 Sec. 179. Section 321.34, subsection 21, paragraph 139 25 c, Code 2003, is amended to read as follows: 139 26 c. The special fees collected by the director 139 27 under this subsection shall be paid monthly to the 139 28 treasurer of state and credited to the road use tax 139 29 fund. Notwithstanding section423.24423.43, and 139 30 prior to the crediting of revenues to the road use tax 139 31 fund under section423.24423.43, subsection 1, 139 32 paragraph "b", the treasurer of state shall credit 139 33 monthly to the Iowa heritage fund created under 139 34 section 303.9A the amount of the special fees 139 35 collected in the previous month for the Iowa heritage 139 36 plates. 139 37 Sec. 180. Section 321.34, subsection 22, paragraph 139 38 b, Code 2003, is amended to read as follows: 139 39 b. The special school transportation fee for 139 40 letter number designated education plates is thirty- 139 41 five dollars. The fee for personalized education 139 42 plates is twenty-five dollars, which shall be paid in 139 43 addition to the special school transportation fee of 139 44 thirty-five dollars. The annual special school 139 45 transportation fee is ten dollars for letter number 139 46 designated registration plates and is fifteen dollars 139 47 for personalized registration plates which shall be 139 48 paid in addition to the regular annual registration 139 49 fee. The fees collected by the director under this 139 50 subsection shall be paid monthly to the treasurer of 140 1 state and credited to the road use tax fund. 140 2 Notwithstanding section423.24423.43, and prior to 140 3 the crediting of revenues to the road use tax fund 140 4 under section423.24423.43, subsection 1, paragraph 140 5 "b", the treasurer of state shall transfer monthly 140 6 from those revenues to the school budget review 140 7 committee in accordance with section 257.31, 140 8 subsection 17, the amount of the special school 140 9 transportation fees collected in the previous month 140 10 for the education plates. 140 11 Sec. 181. Section 321F.9, Code 2003, is amended to 140 12 read as follows: 140 13 321F.9 OPTION TO PURCHASE – DEALER'S LICENSE. 140 14 Any person engaged in business in this state shall 140 15 not enter into any agreement for the use of a motor 140 16 vehicle under the terms of whichsuchthat person 140 17 grants to another an option to purchasesuchthe motor 140 18 vehicle without first having obtained a motor vehicle 140 19 dealer's license under the provisions of chapter 322, 140 20 and all sales of motor vehicles under such options 140 21 shall be subject to sales or use taxes imposed under 140 22 the provisions ofchapters 422 andchapter 423. 140 23 Nothing contained in this section shall require such 140 24 person to have a place of business as provided by 140 25 section 322.6, subsection 8. 140 26 Sec. 182. Section 327I.26, Code 2003, is amended 140 27 to read as follows: 140 28 327I.26 APPROPRIATION TO AUTHORITY. 140 29 Notwithstanding section423.24423.43, and prior to 140 30 the application of section423.24423.43, subsection 140 31 1, paragraph "b", there shall be deposited into the 140 32 general fund of the state and is appropriated to the 140 33 authority from eighty percent of the revenues derived 140 34 from the operation of section423.7423.26, the 140 35 amounts certified by the authority under section 140 36 327I.25. However, the total amount deposited into the 140 37 general fund and appropriated to the Iowa railway 140 38 finance authority under this section shall not exceed 140 39 two million dollars annually. Moneys appropriated to 140 40 the Iowa railway finance authority under this section 140 41 are appropriated only for the payment of principal and 140 42 interest on obligations or the payment of leases 140 43 guaranteed by the authority as provided under section 140 44 327I.25. 140 45 Sec. 183. Section 328.26, unnumbered paragraph 2, 140 46 Code 2003, is amended to read as follows: 140 47 When an aircraft is registered to a person for the 140 48 first time the fee submitted to the department shall 140 49 include the tax imposed by section422.43423.2 or 140 50 section423.2423.5 or evidence of the exemption of 141 1 the aircraft from the tax imposed under section422.43141 2 423.2 or423.2423.5. 141 3 Sec. 184. Section 331.557, subsection 3, Code 141 4 2003, is amended to read as follows: 141 5 3. Collect the use tax on vehicles subject to 141 6 registration as provided in sections423.6, 423.7, and141 7423.7A423.14, 423.26, and 423.27. 141 8 Sec. 185. Section 357A.15, unnumbered paragraph 2, 141 9 Code 2003, is amended to read as follows: 141 10 A rural water district organized under chapter 504A 141 11 shall receive a refund of sales or use taxes upon 141 12 submitting an application to the department of revenue 141 13 and finance forsuchthe refund of taxes imposed upon 141 14 thegross receiptssales price of all sales of 141 15 building materials, supplies, or equipment sold to a 141 16 contractor or used in the fulfillment of a written 141 17 contract for the construction of facilities forsuch141 18 the rural water district to the same extent as a rural 141 19 water district organized under this chapter may obtain 141 20 a refund under section422.45423.4, subsection71. 141 21 Sec. 186. Section 421.10, Code 2003, is amended to 141 22 read as follows: 141 23 421.10 APPEAL PERIOD – APPLICABILITY. 141 24 The appeal period for revision of assessment of 141 25 tax, interest, and penalties set out under section 141 26 422.28,422.54423.37, 437A.9, 437A.22, 452A.64, 141 27 453A.29, or 453A.46 applies to appeals to notices from 141 28 the department denying changes in filing methods, 141 29 denying refund claims, and denying portions of refund 141 30 claims for the tax covered by that section, and 141 31 notices of any department action directed to a 141 32 specific taxpayer, other than licensing, which 141 33 involves a calculation. 141 34 Sec. 187. Section 421.17, subsection 22B, Code 141 35 2003, is amended to read as follows: 141 36 22B.EnterTo enter into agreements or compacts 141 37 with remote sellers, retailers, or third-party 141 38 providers for the voluntary collection of Iowa sales 141 39 or use taxes attributable to sales into Iowaand to141 40enter. The director has the authority to enter into 141 41 and perform all duties required of the office of 141 42 director by multistate agreements or compacts that 141 43 provide for thevoluntarycollection of sales and use 141 44 taxes, including joint audits with other states or 141 45 audits on behalf of other states. The agreements or 141 46 compacts shall generally conform to the provisions of 141 47 Iowa sales and use tax statutes. All fees for 141 48 services, reimbursements, remuneration, incentives, 141 49 and costs incurred by the department associated with 141 50 these agreements or compacts may be paid or reimbursed 142 1 from the additional revenue generated. An amount is 142 2 appropriated from amounts generated to pay or 142 3 reimburse all costs associated with this subsection. 142 4 Persons entering into an agreement or compact with the 142 5 department pursuant to this subsection are subject to 142 6 the requirements and penalties of the confidentiality 142 7 laws of this state regarding tax information. 142 8 Notwithstanding any other provisions of law, the 142 9 contract, agreement, or compact shall provide for the 142 10 registration, collection, report, and verification of 142 11 amounts subject to this subsection. 142 12 Sec. 188. Section 421.17, subsection 29, paragraph 142 13 j, Code 2003, is amended to read as follows: 142 14 j. The department's existing right to credit 142 15 against tax due or to become due under section 422.73 142 16 or 423.47 is not to be impaired by a right granted to 142 17 or a duty imposed upon the department or other state 142 18 agency by this subsection. This subsection is not 142 19 intended to impose upon the department any additional 142 20 requirement of notice, hearing, or appeal concerning 142 21 the right to credit against tax due under section 142 22 422.73 or 423.47. 142 23 Sec. 189. Section 421.17, subsection 34, paragraph 142 24 i, Code 2003, is amended to read as follows: 142 25 i. The director may distribute to credit reporting 142 26 entities and for publication the names, addresses, and 142 27 amounts of indebtedness owed to or being collected by 142 28 the state if the indebtedness is subject to the 142 29 centralized debt collection procedure established in 142 30 this subsection. The director shall adopt rules to 142 31 administer this paragraph, and the rules shall provide 142 32 guidelines by which the director shall determine which 142 33 names, addresses, and amounts of indebtedness may be 142 34 distributed for publication. The director may 142 35 distribute information for publication pursuant to 142 36 this paragraph, notwithstanding sections 422.20, 142 37 422.72, and423.23423.42, or any other provision of 142 38 state law to the contrary pertaining to 142 39 confidentiality of information. 142 40 Sec. 190. Section 421.26, Code 2003, is amended to 142 41 read as follows: 142 42 421.26 PERSONAL LIABILITY FOR TAX DUE. 142 43 If a licensee or other person under section 142 44 452A.65, a retailer or purchaser under chapter 422A or 142 45 422B, or section422.52423.31 or 423.33, or a 142 46 retailer or purchaser under section423.13423.32 or a 142 47 user under section423.14423.34 fails to pay a tax 142 48 under those sections when due, an officer of a 142 49 corporation or association, notwithstanding sections 142 50 490A.601 and 490A.602, a member or manager of a 143 1 limited liability company, or a partner of a 143 2 partnership, having control or supervision of or the 143 3 authority for remitting the tax payments and having a 143 4 substantial legal or equitable interest in the 143 5 ownership of the corporation, association, limited 143 6 liability company, or partnership, who has 143 7 intentionally failed to pay the tax is personally 143 8 liable for the payment of the tax, interest, and 143 9 penalty due and unpaid. However, this section shall 143 10 not apply to taxes on accounts receivable. The 143 11 dissolution of a corporation, association, limited 143 12 liability company, or partnership shall not discharge 143 13 a person's liability for failure to remit the tax due. 143 14 Sec. 191. Section 421.28, Code 2003, is amended to 143 15 read as follows: 143 16 421.28 EXCEPTIONS TO SUCCESSOR LIABILITY. 143 17 The immediate successor to a licensee's or 143 18 retailer's business or stock of goods under chapter 143 19 422A or 422B, or section422.52, 423.13, 423.14,143 20 423.33 or 452A.65, is not personally liable for the 143 21 amount of delinquent tax, interest, or penalty due and 143 22 unpaid if the immediate successor shows that the 143 23 purchase of the business or stock of goods was made in 143 24 good faith that no delinquent tax, interest, or 143 25 penalty was due and unpaid. For purposes of this 143 26 section the immediate successor shows good faith by 143 27 evidence that the department had provided the 143 28 immediate successor with a certified statement that no 143 29 delinquent tax, interest, or penalty is unpaid, or 143 30 that the immediate successor had taken in good faith a 143 31 certified statement from the licensee, retailer, or 143 32 seller that no delinquent tax, interest, or penalty is 143 33 unpaid. When requested to do so by a person with whom 143 34 the licensee or retailer is negotiating the sale of 143 35 the business or stock of goods, the director of 143 36 revenue and finance shall, upon being satisfied that 143 37 such a situation exists, inform that person as to the 143 38 amount of unpaid delinquent tax, interest, or penalty 143 39 due by the licensee or the retailer. The giving of 143 40 the information under this circumstance is not a 143 41 violation of section 422.20, 422.72, or 452A.63. 143 42 Sec. 192. Section 421B.11, unnumbered paragraph 3, 143 43 Code 2003, is amended to read as follows: 143 44 Judicial review of the actions of the director may 143 45 be sought in accordance with the terms of the Iowa 143 46 administrative procedure Act, and section422.55143 47 423.38. 143 48 Sec. 193. Section 422.7, subsection 21, paragraph 143 49 a, subparagraph (1), unnumbered paragraph 1, Code 143 50 2003, is amended to read as follows: 144 1 Net capital gain from the sale of real property 144 2 used in a business, in which the taxpayer materially 144 3 participated for ten years, as defined in section 144 4 469(h) of the Internal Revenue Code, and which has 144 5 been held for a minimum of ten years, or from the sale 144 6 of a business, as defined in section422.42423.1, in 144 7 which the taxpayer was employed or in which the 144 8 taxpayer materially participated for ten years, as 144 9 defined in section 469(h) of the Internal Revenue 144 10 Code, and which has been held for a minimum of ten 144 11 years. The sale of a business means the sale of all 144 12 or substantially all of the tangible personal property 144 13 or service of the business. 144 14 Sec. 194. Section 422.73, subsection 1, Code 2003, 144 15 is amended by striking the subsection. 144 16 Sec. 195. Section 422A.1, unnumbered paragraphs 1, 144 17 3, 7, and 8, Code 2003, are amended to read as 144 18 follows: 144 19 A city or county may impose by ordinance of the 144 20 city council or by resolution of the board of 144 21 supervisors a hotel and motel tax, at a rate not to 144 22 exceed seven percent, which shall be imposed in 144 23 increments of one or more full percentage points upon 144 24 thegross receiptssales price from the renting of 144 25 sleeping rooms, apartments, or sleeping quarters in a 144 26 hotel, motel, inn, public lodging house, rooming 144 27 house, manufactured or mobile home which is tangible 144 28 personal property, or tourist court, or in any place 144 29 where sleeping accommodations are furnished to 144 30 transient guests for rent, whether with or without 144 31 meals; except thegross receiptssales price from the 144 32 renting of sleeping rooms in dormitories and in 144 33 memorial unions at all universities and colleges 144 34 located in the state of Iowa and the guests of a 144 35 religious institution if the property is exempt under 144 36 section 427.1, subsection 8, and the purpose of 144 37 renting is to provide a place for a religious retreat 144 38 or function and not a place for transient guests 144 39 generally. The tax when imposed by a city shall apply 144 40 only within the corporate boundaries of that city and 144 41 when imposed by a county shall apply only outside 144 42 incorporated areas within that county. "Renting" and 144 43 "rent" include any kind of direct or indirect charge 144 44 for such sleeping rooms, apartments, or sleeping 144 45 quarters, or their use. However, the tax does not 144 46 apply to thegross receiptssales price from the 144 47 renting of a sleeping room, apartment, or sleeping 144 48 quarters while rented by the same person for a period 144 49 of more than thirty-one consecutive days. 144 50 A local hotel and motel tax shall be imposed on 145 1 January 1, April 1, July 1, or October 1, following 145 2 the notification of the director of revenue and 145 3 finance. Once imposed, the tax shall remain in effect 145 4 at the rate imposed for a minimum of one year. A 145 5 local hotel and motel tax shall terminate only on 145 6 March 31, June 30, September 30, or December 31. At 145 7 leastforty-fivesixty days prior to the tax being 145 8 effective or prior to a revision in the tax rate, or 145 9 prior to the repeal of the tax, a city or county shall 145 10 provide notice by mail of such action to the director 145 11 of revenue and finance. 145 12 No tax permit other than the state sales tax permit 145 13 required under section422.53423.36 may be required 145 14 by local authorities. 145 15 The tax levied shall be in addition to any state 145 16 sales tax imposed under section422.43423.2. Section 145 17 422.25, subsection 4, sections 422.30,422.48 to145 18422.52, 422.54 to 422.58,422.67, and 422.68, section 145 19 422.69, subsection 1,andsections 422.70 to 422.75, 145 20 section 423.14, subsection 1, and sections 423.23, 145 21 423.24, 423.25, 423.31, 423.33, 423.35, 423.37 to 145 22 423.42, and 423.47, consistent with the provisions of 145 23 this chapter, apply with respect to the taxes 145 24 authorized under this chapter, in the same manner and 145 25 with the same effect as if the hotel and motel taxes 145 26 were retail sales taxes within the meaning of those 145 27 statutes. Notwithstanding this paragraph, the 145 28 director shall provide for quarterly filing of returns 145 29as prescribed in section 422.51and for other than 145 30 quarterly filing of returns both as prescribed in 145 31 section422.51, subsection 2423.31. The director may 145 32 require all persons, as defined in section422.42145 33 423.1, who are engaged in the business of deriving 145 34gross receiptsany sales price subject to tax under 145 35 this chapter, to register with the department. 145 36 Sec. 196. Section 422B.8, Code 2003, is amended to 145 37 read as follows: 145 38 422B.8 LOCAL SALES AND SERVICES TAX. 145 39 A local sales and services tax at the rate of not 145 40 more than one percent may be imposed by a county on 145 41 thegross receiptssales price taxed by the state 145 42 under chapter422423,division IVsubchapter II. A 145 43 local sales and services tax shall be imposed on the 145 44 same basis as the state sales and services tax or in 145 45 the case of the use of natural gas, natural gas 145 46 service, electricity, or electric service on the same 145 47 basis as the state use tax and shall not be imposed on 145 48 the sale of any property or on any service not taxed 145 49 by the state, except the tax shall not be imposed on 145 50 thegross receiptssales price from the sale of motor 146 1 fuel or special fuel as defined in chapter 452A which 146 2 is consumed for highway use or in watercraft or 146 3 aircraft if the fuel tax is paid on the transaction 146 4 and a refund has not or will not be allowed, on the 146 5gross receiptssales price from the rental of rooms, 146 6 apartments, or sleeping quarters which are taxed under 146 7 chapter 422A during the period the hotel and motel tax 146 8 is imposed, on thegross receiptssales price from the 146 9 sale of equipment by the state department of 146 10 transportation, on thegross receiptssales price from 146 11 the sale of self-propelled building equipment, pile 146 12 drivers, motorized scaffolding, or attachments 146 13 customarily drawn or attached to self-propelled 146 14 building equipment, pile drivers, and motorized 146 15 scaffolding, including auxiliary attachments which 146 16 improve the performance, safety, operation, or 146 17 efficiency of the equipment and replacement parts and 146 18 are directly and primarily used by contractors, 146 19 subcontractors, and builders for new construction, 146 20 reconstruction, alterations, expansion, or remodeling 146 21 of real property or structures, and on thegross146 22receiptssales price from the sale of a lottery ticket 146 23 or share in a lottery game conducted pursuant to 146 24 chapter 99E and except the tax shall not be imposed on 146 25 thegross receiptssales price from the sale or use of 146 26 natural gas, natural gas service, electricity, or 146 27 electric service in a city or county where thegross146 28receiptssales price from the sale of natural gas or 146 29 electric energy are subject to a franchise fee or user 146 30 fee during the period the franchise or user fee is 146 31 imposed. A local sales and services tax is applicable 146 32 to transactions within those incorporated and 146 33 unincorporated areas of the county where it is imposed 146 34 and shall be collected by all persons required to 146 35 collect stategross receiptssales taxes. However, a 146 36 person required to collect state retail sales tax 146 37 under chapter422423,division IVsubchapter V or VI, 146 38 is not required to collect local sales and services 146 39 tax on transactions delivered within the area where 146 40 the local sales and services tax is imposed unless the 146 41 person has physical presence in that taxing area. All 146 42 cities contiguous to each other shall be treated as 146 43 part of one incorporated area and the tax would be 146 44 imposed in each of those contiguous cities only if the 146 45 majority of those voting in the total area covered by 146 46 the contiguous cities favor its imposition. 146 47 The amount of the sale, for purposes of determining 146 48 the amount of the local sales and services tax, does 146 49 not include the amount of any stategross receipts146 50taxessales tax. 147 1 A tax permit other than the state sales tax permit 147 2 required under section422.53 or 423.10423.36 shall 147 3 not be required by local authorities. 147 4 If a local sales and services tax is imposed by a 147 5 county pursuant to this chapter, a local excise tax at 147 6 the same rate shall be imposed by the county on the 147 7 purchase price of natural gas, natural gas service, 147 8 electricity, or electric service subject to tax under 147 9 chapter 423, subchapter III, and not exempted from tax 147 10 by any provision of chapter 423, subchapter III. The 147 11 local excise tax is applicable only to the use of 147 12 natural gas, natural gas service, electricity, or 147 13 electric service within those incorporated and 147 14 unincorporated areas of the county where it is imposed 147 15 and, except as otherwise provided in this chapter, 147 16 shall be collected and administered in the same manner 147 17 as the local sales and services tax. For purposes of 147 18 this chapter, "local sales and services tax" shall 147 19 also include the local excise tax. 147 20 Sec. 197. Section 422B.9, subsections 1 and 2, 147 21 Code 2003, are amended to read as follows: 147 22 1. a. A local sales and services tax shall be 147 23 imposed either January 1 or July 1 following the 147 24 notification of the director of revenue and finance 147 25 but not sooner than ninety days following the 147 26 favorable election and not sooner than sixty days 147 27 following notice to sellers, as defined in section 147 28 423.1. However, a jurisdiction which has voted to 147 29 continue imposition of the tax may impose that tax 147 30 without repeal of the prior tax. 147 31 b. A local sales and services tax shall be 147 32 repealed only on June 30 or December 31 but not sooner 147 33 than ninety days following the favorable election if 147 34 one is held. However, a local sales and services tax 147 35 shall not be repealed before the tax has been in 147 36 effect for one year. At least forty days before the 147 37 imposition or repeal of the tax, a county shall 147 38 provide notice of the action by certified mail to the 147 39 director of revenue and finance. 147 40 c. The imposition of or a rate change for a local 147 41 sales and service tax shall not be applied to 147 42 purchases from a printed catalog wherein a purchaser 147 43 computes the local tax based on rates published in the 147 44 catalog unless a minimum of one hundred twenty days' 147 45 notice of the imposition or rate change has been given 147 46 to the seller from the catalog and the first day of a 147 47 calendar quarter has occurred on or after the one 147 48 hundred twentieth day. 147 49c.d. If a local sales and services tax has been 147 50 imposed prior to April 1, 2000, and at the time of the 148 1 election a date for repeal was specified on the 148 2 ballot, the local sales and services tax may be 148 3 repealed on that date, notwithstanding paragraph "b". 148 4 2. a. The director of revenue and finance shall 148 5 administer a local sales and services tax as nearly as 148 6 possible in conjunction with the administration of 148 7 stategross receiptssales tax laws. The director 148 8 shall provide appropriate forms or provide on the 148 9 regular state tax forms for reporting local sales and 148 10 services tax liability. 148 11 b. The ordinance of a county board of supervisors 148 12 imposing a local sales and services tax shall adopt by 148 13 reference the applicable provisions of the appropriate 148 14 sections ofchapter 422, division IV, andchapter 423. 148 15 All powers and requirements of the director to 148 16 administer the stategross receiptssales tax law and 148 17 use tax law are applicable to the administration of a 148 18 local sales and services tax law and the local excise 148 19 tax, including but not limited to, the provisions of 148 20 section 422.25, subsection 4, sections 422.30,422.48148 21to 422.52, 422.54 to 422.58,422.67, and 422.68, 148 22 section 422.69, subsection 1, sections 422.70 to 148 23 422.75,423.6, subsections 2 to 4, and sections 423.11148 24to 423.18, and 423.21section 423.14, subsection 1 and 148 25 subsection 2, paragraphs "b" through "e", and sections 148 26 423.15, 423.23, 423.24, 423.25, 423.31 to 423.35, 148 27 423.37 to 423.42, 423.46, and 423.47. Local officials 148 28 shall confer with the director of revenue and finance 148 29 for assistance in drafting the ordinance imposing a 148 30 local sales and services tax. A certified copy of the 148 31 ordinance shall be filed with the director as soon as 148 32 possible after passage. 148 33 c. Frequency of deposits and quarterly reports of 148 34 a local sales and services tax with the department of 148 35 revenue and finance are governed by the tax provisions 148 36 in section422.52423.31. Local tax collections shall 148 37 not be included in computation of the total tax to 148 38 determine frequency of filing under section422.52148 39 423.31. 148 40 d. The director shall apply a boundary change of a 148 41 county or city imposing or collecting the local sales 148 42 and service tax to the imposition or collection of 148 43 that tax only on the first day of a calendar quarter 148 44 which occurs sixty days or more after the director has 148 45 given notice of the boundary change to sellers. 148 46 Sec. 198. Section 422C.2, subsections 4 and 6, 148 47 Code 2003, are amended to read as follows: 148 48 4. "Person" means person as defined in section 148 49422.42423.1. 148 50 6. "Rental price" means the consideration for 149 1 renting an automobile valued in money, and means the 149 2 same as"gross taxable services""sales price" as 149 3 defined in section422.42423.1. 149 4 Sec. 199. Section 422C.3, Code 2003, is amended to 149 5 read as follows: 149 6 422C.3 TAX ON RENTAL OF AUTOMOBILES. 149 7 1. A tax of five percent is imposed upon the 149 8 rental price of an automobile if the rental 149 9 transaction is subject to the sales and services tax 149 10 under chapter422423,division IVsubchapter II, or 149 11 the use tax under chapter 423, subchapter III. The 149 12 tax shall not be imposed on any rental transaction not 149 13 taxable under the state sales and services tax, as 149 14 provided in section422.45423.3, or the state use 149 15 tax, as provided in section423.4423.6, on automobile 149 16 rental receipts. 149 17 2. The lessor shall collect the tax by adding the 149 18 tax to the rental price of the automobile. 149 19 3. The tax, when collected, shall be stated as a 149 20 distinct item separate and apart from the rental price 149 21 of the automobile and the sales and services tax 149 22 imposed under chapter422423,division IVsubchapter 149 23 II, or the use tax imposed under chapter 423, 149 24 subchapter III. 149 25 Sec. 200. Section 422C.4, Code 2003, is amended to 149 26 read as follows: 149 27 422C.4 ADMINISTRATION AND ENFORCEMENT. 149 28 All powers and requirements of the director of 149 29 revenue and finance to administer the stategross149 30receiptssales tax law under chapter422, division IV,149 31 423 are applicable to the administration of the tax 149 32 imposed under section 422C.3, including but not 149 33 limited to section 422.25, subsection 4, sections 149 34 422.30,422.48 through 422.52, 422.54 through 422.58,149 35 422.67, and 422.68, section 422.69, subsection 1,and149 36 sections 422.70 through 422.75, section 423.14, 149 37 subsection 1, and sections 423.15, 423.23, 423.24, 149 38 423.25, 423.31, 423.33, 423.35 and 423.37 through 149 39 423.42, 423.45, 423.46, and 423.47. However, as an 149 40 exception to the powers specified in section422.52,149 41subsection 1423.31, the director shall only require 149 42 the filing of quarterly reports. 149 43 Sec. 201. Section 422E.1, subsection 1, is amended 149 44 to read as follows: 149 45 1. A local sales and services tax for school 149 46 infrastructure purposes may be imposed by a county on 149 47 behalf of school districts as provided in this 149 48 chapter. 149 49 If a local sales and services tax for school 149 50 infrastructure is imposed by a county pursuant to this 150 1 chapter, a local excise tax for school infrastructure 150 2 at the same rate shall be imposed by the county on the 150 3 purchase price of natural gas, natural gas service, 150 4 electricity, or electric service subject to tax under 150 5 chapter 423, subchapter III, and not exempted from tax 150 6 by any provision of chapter 423, subchapter III. The 150 7 local excise tax for school infrastructure is 150 8 applicable only to the use of natural gas, natural gas 150 9 service, electricity, or electric service within those 150 10 incorporated and unincorporated areas of the county 150 11 where it is imposed and, except as otherwise provided 150 12 in this chapter, shall be collected and administered 150 13 in the same manner as the local sales and services tax 150 14 for school infrastructure. For purposes of this 150 15 chapter, "local sales and services tax for school 150 16 infrastructure" shall also include the local excise 150 17 tax for school infrastructure. 150 18 Sec. 202. Section 422E.3, subsections 1, 2, and 3, 150 19 Code 2003, are amended to read as follows: 150 20 1. If a majority of those voting on the question 150 21 of imposition of a local sales and services tax for 150 22 school infrastructure purposes favors imposition of 150 23 the tax, the tax shall be imposed by the county board 150 24 of supervisors within the county pursuant to section 150 25 422E.2, at the rate specified for a ten-year duration 150 26 on thegross receiptssales price taxed by the state 150 27 under chapter422423,division IVsubchapter II. 150 28 2. The tax shall be imposed on the same basis as 150 29 the state sales and services tax or in the case of the 150 30 use of natural gas, natural gas service, electricity, 150 31 or electric service on the same basis as the state use 150 32 tax and shall not be imposed on the sale of any 150 33 property or on any service not taxed by the state, 150 34 except the tax shall not be imposed on thegross150 35receiptssales price from the sale of motor fuel or 150 36 special fuel as defined in chapter 452A which is 150 37 consumed for highway use or in watercraft or aircraft 150 38 if the fuel tax is paid on the transaction and a 150 39 refund has not or will not be allowed, on thegross150 40receiptssales price from the rental of rooms, 150 41 apartments, or sleeping quarters which are taxed under 150 42 chapter 422A during the period the hotel and motel tax 150 43 is imposed, on thegross receiptssales price from the 150 44 sale of equipment by the state department of 150 45 transportation, on thegross receiptssales price from 150 46 the sale of self-propelled building equipment, pile 150 47 drivers, motorized scaffolding, or attachments 150 48 customarily drawn or attached to self-propelled 150 49 building equipment, pile drivers, and motorized 150 50 scaffolding, including auxiliary attachments which 151 1 improve the performance, safety, operation, or 151 2 efficiency of the equipment, and replacement parts and 151 3 are directly and primarily used by contractors, 151 4 subcontractors, and builders for new construction, 151 5 reconstruction, alterations, expansion, or remodeling 151 6 of real property or structures, and on thegross151 7receiptssales price from the sale of a lottery ticket 151 8 or share in a lottery game conducted pursuant to 151 9 chapter 99E and except the tax shall not be imposed on 151 10 thegross receiptssales price from the sale or use of 151 11 natural gas, natural gas service, electricity, or 151 12 electric service in a city or county where thegross151 13receiptssales price from the sale of natural gas or 151 14 electric energy are subject to a franchise fee or user 151 15 fee during the period the franchise or user fee is 151 16 imposed. 151 17 3. The tax is applicable to transactions within 151 18 the county where it is imposed and shall be collected 151 19 by all persons required to collect stategross151 20receiptssales or local excise taxes. However, a 151 21 person required to collect stateretailsales tax 151 22 under chapter422, division IV,423 is not required to 151 23 collect local sales and services tax on transactions 151 24 delivered within the area where the local sales and 151 25 services tax is imposed unless the person has physical 151 26 presence in that taxing area. The amount of the sale, 151 27 for purposes of determining the amount of the tax, 151 28 does not include the amount of any stategross151 29receiptssales taxes or excise taxes or other local 151 30 option sales or excise taxes. A tax permit other than 151 31 the state tax permit required under section422.53 or151 32423.10423.36 shall not be required by local 151 33 authorities. 151 34 Sec. 203. Section 425.30, Code 2003, is amended to 151 35 read as follows: 151 36 425.30 NOTICES. 151 37 Section422.57423.39, subsection 1, shall apply to 151 38 all notices under this division. 151 39 Sec. 204. Section 425.31, Code 2003, is amended to 151 40 read as follows: 151 41 425.31 APPEALS. 151 42 Any person aggrieved by an act or decision of the 151 43 director of revenue and finance or the department of 151 44 revenue and finance under this division shall have the 151 45 same rights of appeal and review as provided in 151 46 sections 421.1 and422.55423.38 and the rules of the 151 47 department of revenue and finance. 151 48 Sec. 205. Section 452A.66, unnumbered paragraph 1, 151 49 Code 2003, is amended to read as follows: 151 50 The appropriate state agency shall administer the 152 1 taxes imposed by this chapter in the same manner as 152 2 and subject to section 422.25, subsection 4 and 152 3 section422.52, subsection 3423.35. 152 4 Sec. 206. Section 455B.455, Code 2003, is amended 152 5 to read as follows: 152 6 455B.455 SURCHARGE IMPOSED. 152 7 A land burial surcharge tax of two percent is 152 8 imposed on the fee for land burial of a hazardous 152 9 waste. The owner of the land burial facility shall 152 10 remit the tax collected to the director of revenue and 152 11 finance after consultation with the director according 152 12 to rules that the director shall adopt. The director 152 13 shall forward a copy of the site license to the 152 14 director of revenue and finance which shall be the 152 15 appropriate license for the collection of the land 152 16 burial surcharge tax and shall be subject to 152 17 suspension or revocation if the site license holder 152 18 fails to collect or remit the tax collected under this 152 19 section. The provisions ofsectionssection 422.25, 152 20 subsection 4, sections 422.30,422.48 to 422.52,152 21422.54 to 422.58,422.67, and 422.68, section 422.69, 152 22 subsection 1,andsections 422.70 to 422.75, section 152 23 423.14, subsection 1, and sections 423.23, 423.24, 152 24 423.25, 423.31, 423.33, 423.35, 423.37 to 423.42, and 152 25 423.47, consistent with the provisions of this part 6 152 26 of division IV, shall apply with respect to the taxes 152 27 authorized under this part, in the same manner and 152 28 with the same effect as if the land burial surcharge 152 29 tax wereretailsales taxes within the meaning of 152 30 those statutes. Notwithstanding the provisions of 152 31 thisparagraphsection, the director shall provide for 152 32 only quarterly filing of returns as prescribed in 152 33 section422.51423.31. Taxes collected by the 152 34 director of revenue and finance under this section 152 35 shall be deposited in the general fund of the state. 152 36 Sec. 207. Section 455G.3, subsection 1, Code 2003, 152 37 is amended to read as follows: 152 38 1. The Iowa comprehensive petroleum underground 152 39 storage tank fund is created as a separate fund in the 152 40 state treasury, and any funds remaining in the fund at 152 41 the end of each fiscal year shall not revert to the 152 42 general fund but shall remain in the Iowa 152 43 comprehensive petroleum underground storage tank fund. 152 44 Interest or other income earned by the fund shall be 152 45 deposited in the fund. The fund shall include moneys 152 46 credited to the fund under this section, section 152 47423.24423.43, subsection 1, paragraph "a", and 152 48 sections 455G.8, 455G.9, and 455G.11, and other funds 152 49 which by law may be credited to the fund. The moneys 152 50 in the fund are appropriated to and for the purposes 153 1 of the board as provided in this chapter. Amounts in 153 2 the fund shall not be subject to appropriation for any 153 3 other purpose by the general assembly, but shall be 153 4 used only for the purposes set forth in this chapter. 153 5 The treasurer of state shall act as custodian of the 153 6 fund and disburse amounts contained in it as directed 153 7 by the board including automatic disbursements of 153 8 funds as received pursuant to the terms of bond 153 9 indentures and documents and security provisions to 153 10 trustees and custodians. The treasurer of state is 153 11 authorized to invest the funds deposited in the fund 153 12 at the direction of the board and subject to any 153 13 limitations contained in any applicable bond 153 14 proceedings. The income from such investment shall be 153 15 credited to and deposited in the fund. The fund shall 153 16 be administered by the board which shall make 153 17 expenditures from the fund consistent with the 153 18 purposes of the programs set out in this chapter 153 19 without further appropriation. The fund may be 153 20 divided into different accounts with different 153 21 depositories as determined by the board and to fulfill 153 22 the purposes of this chapter. 153 23 Sec. 208. Section 455G.6, subsection 4, Code 2003, 153 24 is amended to read as follows: 153 25 4. Grant a mortgage, lien, pledge, assignment, or 153 26 other encumbrance on one or more improvements, 153 27 revenues, asset of right, accounts, or funds 153 28 established or received in connection with the fund, 153 29 including revenues derived from the use tax under 153 30 section423.24423.43, subsection 1, paragraph "a", 153 31 and deposited in the fund or an account of the fund. 153 32 Sec. 209. Section 455G.8, subsection 2, Code 2003, 153 33 is amended to read as follows: 153 34 2. USE TAX. The revenues derived from the use tax 153 35 imposed under chapter 423, subchapter III. The 153 36 proceeds of the use tax under section423.24423.43, 153 37 subsection 1, paragraph "a", shall be allocated, 153 38 consistent with this chapter, among the fund's 153 39 accounts, for debt service and other fund expenses, 153 40 according to the fund budget, resolution, trust 153 41 agreement, or other instrument prepared or entered 153 42 into by the board or authority under direction of the 153 43 board. 153 44 Sec. 210. Section 455G.9, subsection 2, Code 2003, 153 45 is amended to read as follows: 153 46 2. REMEDIAL ACCOUNT FUNDING. The remedial account 153 47 shall be funded by that portion of the proceeds of the 153 48 use tax imposed under chapter 423, subchapter III, and 153 49 other moneys and revenues budgeted to the remedial 153 50 account by the board. 154 1 Sec. 211. Section 2.67, Code 2003, is repealed. 154 2 Sec. 212. CODE EDITOR DIRECTIVE. The Code editor 154 3 is directed to transfer Code chapter 423A to Code 154 4 chapter 421A and to transfer Code chapters 422A, 422B, 154 5 422C, and 422E to Code chapters 423A, 423B, 423C, and 154 6 423E, respectively. The Code editor is directed to 154 7 correct Code references as required due to the changes 154 8 made in this Act. 154 9 SALES TAX ADVISORY COUNCIL 154 10 Sec. 213. IOWA STREAMLINED SALES TAX ADVISORY 154 11 COUNCIL. 154 12 1. An Iowa streamlined sales tax advisory council 154 13 is created. The advisory council shall review, study, 154 14 and submit recommendations to the Iowa streamlined 154 15 sales and use tax delegation regarding the proposed 154 16 streamlined sales and use tax agreement formalized by 154 17 the project's implementing sales on November 12, 2002, 154 18 the proposed language conforming Iowa's sales and use 154 19 tax to the national agreement, and the following 154 20 issues: 154 21 a. Uniform definitions proposed in the current 154 22 streamlined sales and use tax agreement and future 154 23 proposals. 154 24 b. Effects upon taxability of items newly defined 154 25 in Iowa. 154 26 c. Impacts upon business as a result of the 154 27 streamlined sales and use tax. 154 28 d. Technology implementation issues. 154 29 e. Any other issues that are brought before the 154 30 streamlined sales and use tax implementing state or 154 31 the streamlined sales and use tax governing board. 154 32 2. The department shall provide administrative 154 33 support to the Iowa streamlined sales tax advisory 154 34 council. The advisory council shall be representative 154 35 of Iowa's business community and economy when 154 36 reviewing and recommending solutions to streamlined 154 37 sales and use tax issues. The advisory council shall 154 38 provide the general assembly and the governor with 154 39 final recommendations made to the Iowa streamlined 154 40 sales and use tax delegation upon the conclusion of 154 41 each calendar year. 154 42 3. The director of revenue, in consultation with 154 43 the Iowa taxpayers association and the Iowa 154 44 association of business and industry, shall appoint 154 45 members to the Iowa streamlined sales tax advisory 154 46 council, which shall consist of the following members: 154 47 a. One member from the department of revenue and 154 48 finance. 154 49 b. Three members representing small Iowa 154 50 businesses, at least one of whom must be a retailer, 155 1 and at least one of whom shall be a supplier. 155 2 c. Three members representing medium Iowa 155 3 businesses, at least one of whom shall be a retailer, 155 4 and at least one of whom shall be a supplier. 155 5 d. Three members representing large Iowa 155 6 businesses, at least one of whom shall be a retailer, 155 7 and at least one of whom shall be a supplier. 155 8 e. One member representing taxpayers as a whole. 155 9 f. One member representing the retail community as 155 10 a whole. 155 11 g. Any other member the director of revenue and 155 12 finance deems appropriate. 155 13 Sec. 214. EFFECTIVE DATE. Except for the section 155 14 creating the Iowa streamlined sales tax advisory 155 15 council, this division of this Act takes effect July 155 16 1, 2004. 155 17 DIVISION XVI 155 18 WIND ENERGY PRODUCTION TAX CREDIT 155 19 Sec. 215. NEW SECTION. 422.11H WIND ENERGY 155 20 PRODUCTION TAX CREDIT. 155 21 The taxes imposed under this division, less the 155 22 credits allowed under sections 422.12 and 422.12B, 155 23 shall be reduced by a wind energy production tax 155 24 credit allowed under chapter 476B. 155 25 Sec. 216. Section 422.33, Code 2003, is amended by 155 26 adding the following new subsection: 155 27 NEW SUBSECTION. 14. The taxes imposed under this 155 28 division shall be reduced by a wind energy production 155 29 tax credit allowed under chapter 476B. 155 30 Sec. 217. Section 422.60, Code 2003, is amended by 155 31 adding the following new subsection: 155 32 NEW SUBSECTION. 7. The taxes imposed under this 155 33 division shall be reduced by a wind energy production 155 34 tax credit allowed under chapter 476B. 155 35 Sec. 218. NEW SECTION. 432.12D WIND ENERGY 155 36 PRODUCTION TAX CREDIT. 155 37 The taxes imposed under this chapter shall be 155 38 reduced by a wind energy production tax credit allowed 155 39 under chapter 476B. 155 40 Sec. 219. NEW SECTION. 476B.1 DEFINITIONS. 155 41 For purposes of this chapter, unless the context 155 42 otherwise requires: 155 43 1. "Board" means the utilities board within the 155 44 utilities division of the department of commerce. 155 45 2. "Department" means the department of revenue 155 46 and finance. 155 47 3. "Qualified electricity" means electricity 155 48 produced from wind at a qualified facility. 155 49 4. "Qualified facility" means an electrical 155 50 production facility that meets all of the following: 156 1 a. Produces electricity from wind. 156 2 b. Is located in Iowa. 156 3 c. Was originally placed in service on or after 156 4 July 1, 2004, but before July 1, 2007. 156 5 Sec. 220. NEW SECTION. 476B.2 GENERAL RULE. 156 6 The owner of a qualified facility shall, for each 156 7 kilowatt-hour of qualified electricity that the owner 156 8 sells during the ten-year period beginning on the date 156 9 the qualified facility was originally placed in 156 10 service, be allowed a wind energy production tax 156 11 credit to the extent provided in this chapter against 156 12 the tax imposed in chapter 422, divisions II, III, and 156 13 V, and chapter 432. 156 14 Sec. 221. NEW SECTION. 476B.3 CREDIT AMOUNT. 156 15 The wind energy production tax credit allowed under 156 16 this chapter equals the product of one cent multiplied 156 17 by the number of kilowatt-hours of qualified 156 18 electricity sold by the owner during the taxable year. 156 19 Sec. 222. NEW SECTION. 476B.4 LIMITATIONS. 156 20 1. a. The wind energy production tax credit shall 156 21 not be allowed for any kilowatt-hour of electricity 156 22 produced on wind energy conversion property for which 156 23 the owner has claimed or otherwise received for that 156 24 property the benefit of special valuation under 156 25 section 427B.26 or section 441.21, subsection 8, or 156 26 the exemption from retail sales tax under section 156 27 422.45, subsection 48. 156 28 b. The disallowance of the tax credit pursuant to 156 29 paragraph "a" does not apply to an owner of a 156 30 qualified facility that owns, directly or indirectly, 156 31 in the aggregate, a total annual turbine nameplate 156 32 capacity of all such property of less than one 156 33 megawatt. 156 34 2. The wind energy production tax credit shall not 156 35 be allowed for any kilowatt-hour of electricity that 156 36 is sold to a related person. For purpose of this 156 37 subsection, persons shall be treated as related to 156 38 each other if such persons would be treated as a 156 39 single employer under the regulations prescribed under 156 40 section 52(b) of the Internal Revenue Code. In the 156 41 case of a corporation that is a member of an 156 42 affiliated group of corporations filing a consolidated 156 43 return, such corporation shall be treated as selling 156 44 electricity to an unrelated person if such electricity 156 45 is sold to such a person by another member of such 156 46 group. 156 47 Sec. 223. NEW SECTION. 476B.5 APPLICATION FOR 156 48 TAX CREDIT CERTIFICATES. 156 49 1. To receive the wind energy production tax 156 50 credit, an owner of the qualified facility must submit 157 1 an application for a tax credit certificate to the 157 2 board not later than thirty days after the close of 157 3 its taxable year. The owner's application must 157 4 contain, but need not be limited to, all of the 157 5 following information: the owner's name, tax 157 6 identification number, and address, the number of 157 7 kilowatt-hours of qualified electricity sold by the 157 8 owner during the preceding taxable year, the address 157 9 of the qualified facility at which the qualified 157 10 electricity was produced, a certified statement of the 157 11 number, if any, of kilowatt-hours of electricity 157 12 produced on wind energy conversion property for which 157 13 the owner has claimed or otherwise received for that 157 14 property the benefit of special valuation under 157 15 section 427B.26 or section 441.21, subsection 8, or 157 16 the exemption from the retail sales tax under section 157 17 422.45, subsection 48, and the denomination that each 157 18 tax credit certificate is to carry. 157 19 1A. In addition to the information required in 157 20 subsection 1, the application shall specify the amount 157 21 of property taxes imposed by the school district, 157 22 city, and county on the wind energy conversion 157 23 property payable during the owner's taxable year. The 157 24 amount of property taxes imposed by the school 157 25 district, city, and county on such property that is 157 26 payable during the owner's taxable year shall be 157 27 computed as follows: 157 28 a. If the fiscal year for which such property 157 29 taxes are imposed ends during the taxable year, divide 157 30 the property taxes imposed by the school district, 157 31 city, and county payable in that fiscal year by twelve 157 32 and multiply the resulting quotient by the number of 157 33 months of the fiscal year ending in the taxable year. 157 34 b. If the fiscal year for which such property 157 35 taxes are imposed begins, but does not end, during the 157 36 taxable year, divide the property taxes imposed by the 157 37 school district, city, and county payable in that 157 38 fiscal year by twelve and multiply the resulting 157 39 quotient by the number of months of the fiscal year 157 40 ending in the taxable year. 157 41 c. Add the amounts determined pursuant to 157 42 paragraphs "a" and "b". 157 43 The application shall also contain the name of the 157 44 school district, city or cities, and county and the 157 45 portion of the total amount of paragraph "c" that was 157 46 imposed by each jurisdiction. 157 47 2. The board shall, in conjunction with the 157 48 department, prescribe appropriate forms and 157 49 instructions to enable owners to claim the tax credit 157 50 allowed under this chapter. If the board prescribes 158 1 these forms and instructions, an owner's application 158 2 for a tax credit certificate shall not be valid unless 158 3 made on and in accordance with these forms and 158 4 instructions. 158 5 3. Within thirty days of the end of the owner's 158 6 eleventh and twelfth taxable years with respect to the 158 7 ownership of the qualified facility for which the 158 8 owner had previously received a tax credit, the owner 158 9 shall file with the board an "extra two year 158 10 information form". The form shall contain all 158 11 property tax information in subsection 1A and other 158 12 information deemed appropriate by the board or 158 13 treasurer of state for the owner's eleventh or twelfth 158 14 taxable year, as applicable. 158 15 Sec. 224. NEW SECTION. 476B.6 ISSUANCE OF TAX 158 16 CREDIT CERTIFICATES. 158 17 1. If the owner meets the criteria for eligibility 158 18 for the wind energy production tax credit, the board 158 19 shall determine the validity of the application and if 158 20 valid, shall issue one or more tax credit certificates 158 21 to the owner not later than thirty days after the 158 22 application is submitted to the board. Each tax 158 23 credit certificate must contain the owner's name, 158 24 address, and tax identification number, amount of tax 158 25 credits, and the expiration date of the tax credit 158 26 certificate, which shall be seven years from its date 158 27 of issuance and any other information required by the 158 28 department. Once issued by the board, the tax credit 158 29 certificate shall be binding on the board and the 158 30 department and shall not be modified, terminated, or 158 31 rescinded. Upon the issuance of the tax credit 158 32 certificate, the board shall forward to the treasurer 158 33 of state a copy of the information provided pursuant 158 34 to section 476B.5, subsection 1A, containing the 158 35 amount of property taxes payable during the owner's 158 36 taxable year which were levied on wind energy 158 37 conversion property for which the tax credit 158 38 certificates were issued. The board shall also 158 39 forward to the treasurer of state information provided 158 40 pursuant to section 476B.5, subsection 3, containing 158 41 the amount of property taxes payable during the 158 42 eleventh or twelfth taxable year. 158 43 2. If the tax credit application is filed by a 158 44 partnership, limited liability company, S corporation, 158 45 estate, trust, or other reporting entity all of the 158 46 income of which is taxed directly to its equity 158 47 holders or beneficiaries, the tax credit certificate 158 48 may, at the election of the owner, be issued directly 158 49 to equity holders or beneficiaries of the owner in 158 50 proportion to their pro rata share of the income of 159 1 such entity. If the owner elects to have the tax 159 2 credit certificate issued directly to its equity 159 3 holders or beneficiaries, the owner must, in the 159 4 application made under section 476B.5, identify its 159 5 equity holders or beneficiaries, and the amount of 159 6 such entity's income that is allocable to each equity 159 7 holder or beneficiary. 159 8 Sec. 225. NEW SECTION. 476B.7 TRANSFER OF TAX 159 9 CREDIT CERTIFICATES. 159 10 Wind energy production tax credit certificates 159 11 issued under this chapter may be transferred to any 159 12 person or entity. Within thirty days of transfer, the 159 13 transferee must submit the transferred tax credit 159 14 certificate to the board along with a statement 159 15 containing the transferee's name, tax identification 159 16 number, and address, and the denomination that each 159 17 replacement tax credit certificate is to carry and any 159 18 other information required by the department. Within 159 19 thirty days of receiving the transferred tax credit 159 20 certificate and the transferee's statement, the board 159 21 shall issue one or more replacement tax credit 159 22 certificates to the transferee. Each replacement 159 23 certificate must contain the information required 159 24 under section 476B.6 and must have the same expiration 159 25 date that appeared in the transferred tax credit 159 26 certificate. Tax credit certificate amounts of less 159 27 than the minimum amount established by rule of the 159 28 board shall not be transferable. A tax credit shall 159 29 not be claimed by a transferee under this chapter 159 30 until a replacement tax credit certificate identifying 159 31 the transferee as the proper holder has been issued. 159 32 The tax credit shall only be transferred once. The 159 33 transferee may use the amount of the tax credit 159 34 transferred against the taxes imposed under chapter 159 35 422, divisions II, III, and V, and chapter 432 for any 159 36 tax year the original transferor could have claimed 159 37 the tax credit. Any consideration received for the 159 38 transfer of the tax credit shall not be included as 159 39 income under chapter 422, divisions II, III, and V. 159 40 Any consideration paid for the transfer of the tax 159 41 credit shall not be deducted from income under chapter 159 42 422, divisions II, III, and V. 159 43 Sec. 226. NEW SECTION. 476B.8 USE OF TAX CREDIT 159 44 CERTIFICATES. 159 45 To claim a wind energy production tax credit under 159 46 this chapter, a taxpayer must attach one or more tax 159 47 credit certificates to the taxpayer's tax return. A 159 48 tax credit certificate shall not be used or attached 159 49 to a return filed prior to July 1, 2005. The tax 159 50 credit certificate or certificates attached to the 160 1 taxpayer's tax return shall be issued in the 160 2 taxpayer's name, expire on or after the last day of 160 3 the taxable year for which the taxpayer is claiming 160 4 the tax credit, and show a tax credit amount equal to 160 5 or greater than the tax credit claimed on the 160 6 taxpayer's tax return. Any tax credit in excess of 160 7 the taxpayer's tax liability for the taxable year may 160 8 be credited to the taxpayer's tax liability for the 160 9 following seven taxable years or until depleted, 160 10 whichever is the earlier. 160 11 Sec. 227. NEW SECTION. 476B.9 REGISTRATION OF 160 12 TAX CREDIT CERTIFICATES. 160 13 The board shall, in conjunction with the 160 14 department, develop a system for the registration of 160 15 the wind energy production tax credit certificates 160 16 issued or transferred under this chapter and a system 160 17 that permits verification that any tax credit claimed 160 18 on a tax return is valid and that transfers of the tax 160 19 credit certificates are made in accordance with the 160 20 requirements of this chapter. The tax credit 160 21 certificates issued under this chapter shall not be 160 22 classified as a security pursuant to chapter 502. 160 23 Sec. 228. NEW SECTION. 476B.10 PAYMENT TO STATE 160 24 OF PROPERTY TAXES COLLECTED. 160 25 1. a. By March 15 and September 15 of each year, 160 26 the treasurer of state shall notify each school 160 27 district, city, and county of the amount of property 160 28 taxes imposed by the jurisdiction on wind energy 160 29 conversion property for which tax credit certificates 160 30 have been issued under this chapter. The amount of 160 31 property taxes contained on the notice to the school 160 32 district, city, or county shall equal the amounts 160 33 received by the treasurer of state from the board 160 34 since the treasurer of state last sent out notices 160 35 pursuant to this subsection. The sending of a notice 160 36 shall constitute a demand for the payment of an amount 160 37 equal to the property taxes imposed on the wind energy 160 38 conversion property as specified in the notice. 160 39 b. In addition to the amount of property taxes 160 40 referred to in paragraph "a", the treasurer of state 160 41 shall notify each school district, city, and county of 160 42 the property taxes imposed on wind energy conversion 160 43 property for the owner's eleventh or twelfth taxable 160 44 year as specified pursuant to section 476B.5, 160 45 subsection 3. 160 46 2. A school district, city, or county to which a 160 47 notice under subsection 1 is sent shall remit to the 160 48 treasurer of state the amount of property taxes 160 49 imposed in the wind energy conversion property 160 50 specified in the notice by the end of the third month 161 1 following the month in which the notice is sent. 161 2 Interest for late payment shall be assessed at the 161 3 rate specified in section 421.7 for each month, 161 4 counting a part of a month a whole month, after the 161 5 due date. Failure of the school district, city, or 161 6 county to receive the notice is not a defense to the 161 7 payment of the amount specified in the notice or for 161 8 any interest for late payment. 161 9 3. A school district, city, or county that remits 161 10 payments to the treasurer of state pursuant to 161 11 subsection 2 in a fiscal year may adjust its budget or 161 12 certified budget, notwithstanding any provision of 161 13 law, to compensate for such payments. 161 14 Sec. 229. EFFECTIVE AND APPLICABILITY DATES. 161 15 1. Except for subsection 2, this division of this 161 16 Act applies to tax years beginning on or after January 161 17 1, 2004. 161 18 2. The section of this division of this Act 161 19 enacting new Code section 476B.10, takes effect 161 20 January 1, 2005. 161 21 DIVISION XVII 161 22 EFFECTIVE DATE 161 23 Sec. 230. EFFECTIVE DATE. Unless otherwise 161 24 provided in this Act, this Act takes effect July 1, 161 25 2003." 161 26 # . Title page, by striking lines 1 through 15 161 27 and inserting the following: "An Act relating to 161 28 economic development, financial, taxation, and 161 29 regulatory matters, making and revising 161 30 appropriations, modifying penalties, providing a fee, 161 31 and including effective, applicability, and 161 32 retroactive applicability provisions."" 161 33 161 34 161 35 161 36 NEAL SCHUERER 161 37 HF 683.316 80 161 38 tm/cf
Text: S03407 Text: S03409 Text: S03400 - S03499 Text: S Index Bills and Amendments: General Index Bill History: General Index
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