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Senate File 2296

Partial Bill History

Bill Text

PAG LIN
  1  1                                  SENATE FILE 2296
  1  2  
  1  3                             AN ACT
  1  4 RELATING TO THE POLICY ADMINISTRATION OF THE TAX AND RELATED
  1  5    LAWS BY THE DEPARTMENT OF REVENUE, INCLUDING ADMINISTRATION
  1  6    OF AND SUBSTANTIVE CHANGES TO THE STATE INDIVIDUAL INCOME,
  1  7    CORPORATE INCOME, SALES, USE, PROPERTY, INHERITANCE, MOTOR
  1  8    FUEL, SPECIAL FUEL, CIGARETTE, AND TOBACCO TAXES AND
  1  9    INCLUDING PENALTIES.
  1 10 
  1 11 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  1 12 
  1 13    Section 1.  Section 15.335, subsection 4, unnumbered
  1 14 paragraph 2, Code Supplement 2003, is amended to read as
  1 15 follows:
  1 16    For purposes of this section, "Internal Revenue Code" means
  1 17 the Internal Revenue Code in effect on January 1, 2003 2004.
  1 18    Sec. 2.  Section 15A.9, subsection 8, paragraph e,
  1 19 unnumbered paragraph 2, Code Supplement 2003, is amended to
  1 20 read as follows:
  1 21    For purposes of this subsection, "Internal Revenue Code"
  1 22 means the Internal Revenue Code in effect on January 1, 2003
  1 23 2004.
  1 24    Sec. 3.  Section 421.1, subsection 4, Code Supplement 2003,
  1 25 is amended by adding the following new unnumbered paragraph:
  1 26    NEW UNNUMBERED PARAGRAPH.  Judicial review of the decisions
  1 27 or orders of the board resulting from the review of decisions
  1 28 or orders of the director of revenue for assessment and
  1 29 collection of taxes by the department may be sought by the
  1 30 taxpayer or the director of revenue in accordance with the
  1 31 terms of chapter 17A.
  1 32    Sec. 4.  Section 421.17, Code Supplement 2003, is amended
  1 33 by adding the following new subsection:
  1 34    NEW SUBSECTION.  28.  To place on the department's official
  1 35 website the official electronic state of Iowa voter
  2  1 registration form and a link to the Iowa secretary of state's
  2  2 official website.
  2  3    Sec. 5.  Section 421.17A, subsection 2, paragraph a, Code
  2  4 Supplement 2003, is amended to read as follows:
  2  5    a.  Notwithstanding other statutory provisions which
  2  6 provide for the execution, attachment, garnishment, or levy
  2  7 against accounts, the facility may utilize the process
  2  8 established in this section to collect delinquent accounts,
  2  9 charges, fees, loans, taxes, or other indebtedness due the
  2 10 state or being collected by the state provided that any
  2 11 exemptions or exceptions which specifically apply to
  2 12 enforcement of such obligations also apply to this section.
  2 13 Administrative levy under this section is the equivalent of
  2 14 condemning funds under chapter 642.  It is expressly provided
  2 15 that these remedies shall be cumulative and that no action
  2 16 taken by the director or attorney general shall be construed
  2 17 to be an election on the part of the state or any of its
  2 18 officers, employees, or representatives to pursue any other
  2 19 remedy provided by law.
  2 20    Sec. 6.  Section 421.17A, subsection 3, Code Supplement
  2 21 2003, is amended to read as follows:
  2 22    3.  INITIAL NOTICE OF INTENT TO OBLIGOR.  The facility may
  2 23 proceed under this section only if twenty days' notice has
  2 24 been provided to the obligor by regular mail to the last known
  2 25 address of the obligor, notifying the obligor that the obligor
  2 26 is subject to this section and of the facility's intention to
  2 27 use the levy process.  The facility shall give twenty days'
  2 28 notice of its intention to use the levy process.  The twenty-
  2 29 day twenty days' notice period shall not be required if the
  2 30 facility determines that the collection of past due amounts
  2 31 would be jeopardized.
  2 32    Sec. 7.  Section 421.17A, subsection 5, paragraph c,
  2 33 subparagraph (7), Code Supplement 2003, is amended to read as
  2 34 follows:
  2 35    (7)  A The telephone number, address, and contact name of
  3  1 the agent for the facility initiating the action.
  3  2    Sec. 8.  Section 421.17A, subsection 6, Code Supplement
  3  3 2003, is amended to read as follows:
  3  4    6.  ADMINISTRATIVE LEVY – NOTICE OF INITIATION OF ACTION
  3  5 TO OBLIGOR AND OTHER ACCOUNT HOLDERS.
  3  6    a.  The facility may administratively initiate an action to
  3  7 seize one or more accounts of an obligor who is subject to
  3  8 this section and section 421.17, subsection 27.
  3  9    b.  The facility shall notify an obligor subject to this
  3 10 section.  The notice shall contain all of the following:
  3 11    (1)  The name and social security number of the obligor.
  3 12    (2)  A statement that the obligor is believed to have an
  3 13 account at the financial institution.
  3 14    (3)  A statement that pursuant to the provisions of this
  3 15 section, the obligor's account is subject to seizure and the
  3 16 financial institution is authorized and required to forward
  3 17 moneys to the facility.
  3 18    (4)  The maximum amount to be forwarded by the financial
  3 19 institution, which shall not exceed the delinquent or accrued
  3 20 amount of debt being collected by or owed to the state by the
  3 21 obligor.
  3 22    (5)  The prescribed time frames the financial institution
  3 23 must meet in forwarding any amounts.
  3 24    (6)  A statement that any challenge to the action must be
  3 25 in writing and must be received by the facility within ten
  3 26 days of the date of the notice to the obligor.
  3 27    (7)  The address of the facility and the account number
  3 28 utilized by the facility for the obligor.
  3 29    (8)  A The telephone number, address, and contact name of
  3 30 the agent for the facility initiating the action.
  3 31    c.  The facility shall forward the notice of initiation of
  3 32 action to the obligor by regular mail within two working days
  3 33 of sending the notice to the financial institution pursuant to
  3 34 subsection 5, paragraph "b".
  3 35    d.  The facility shall notify any other party known to have
  4  1 an interest in the account.  The notice shall contain all of
  4  2 the following:
  4  3    (1)  The name of the obligor.
  4  4    (2)  The name of the financial institution.
  4  5    (3)  A statement that the account in which the other party
  4  6 is known to have an interest is subject to seizure.
  4  7    (4)  A statement that any challenge to the action must be
  4  8 in writing and must be received by the facility within ten
  4  9 days of the date of the notice to the party known to have an
  4 10 interest.
  4 11    (5)  The address of the facility and the name of the
  4 12 obligor who also has an interest in the account.
  4 13    (6)  A The telephone number, address, and contact name of
  4 14 the agent for the facility initiating the action.
  4 15    e.  The facility shall forward the notice to the other
  4 16 party known to have an interest by regular mail within two
  4 17 working days of sending the notice to the financial
  4 18 institution pursuant to subsection 5, paragraph "b".
  4 19    Sec. 9.  Section 421.17A, subsection 8, paragraphs b, c,
  4 20 and f, Code Supplement 2003, are amended to read as follows:
  4 21    b.  The person challenging the action shall submit a
  4 22 written challenge to the person identified as the contact
  4 23 agent for the facility in the notice, within ten days of the
  4 24 date of the notice of initiation of the levy.
  4 25    c.  The facility, upon receipt of a written challenge,
  4 26 shall review the facts of the case administrative levy with
  4 27 the challenging party within ten days of receipt of the
  4 28 challenge.  If the challenging party is not available for the
  4 29 review on the scheduled date, the review shall take place
  4 30 without the challenging party being present.  Information in
  4 31 favor of the challenging party shall be considered by the
  4 32 facility in the review.  The facility may utilize additional
  4 33 information if such information is available.  Only a mistake
  4 34 of fact, including, but not limited to, a mistake in the
  4 35 identity of the obligor or a mistake in the amount owed to or
  5  1 being collected by the state shall be considered as a reason
  5  2 to dismiss or modify the action.
  5  3    f.  The challenging party shall have the right to file an
  5  4 action for wrongful levy in district court within thirty days
  5  5 of the date of the notice in paragraph "e", either in the
  5  6 county where the obligor or the party known to have an
  5  7 interest in the account resides or in Polk county where the
  5  8 facility is located.  Actions under this section are in equity
  5  9 and not actions at law.
  5 10    Sec. 10.  Section 421.17A, subsection 8, Code Supplement
  5 11 2003, is amended by adding the following new paragraphs:
  5 12    NEW PARAGRAPH.  g.  Recovery under this section is limited
  5 13 to restitution of the amount that has been wrongfully
  5 14 encumbered or obtained by the department.
  5 15    NEW PARAGRAPH.  h.  A challenge to an administrative action
  5 16 under this subsection cannot be used to extend or reopen the
  5 17 statute of limitations to protest other departmental actions
  5 18 or to contest the amount or validity of the tax.  Only issues
  5 19 involving the levy can be raised in a challenge to an
  5 20 administrative action under this subsection.
  5 21    Sec. 11.  Section 421.17B, subsection 2, paragraph a, Code
  5 22 Supplement 2003, is amended to read as follows:
  5 23    a.  Notwithstanding other statutory provisions which
  5 24 provide for the execution, attachment, garnishment, or levy
  5 25 against accounts, the facility may utilize the process
  5 26 established in this section to collect delinquent accounts,
  5 27 charges, fees, loans, taxes, or other indebtedness due the
  5 28 facility or being collected by the facility provided all
  5 29 administrative remedies have been waived or exhausted by the
  5 30 obligor.  Any exemptions or exceptions which specifically
  5 31 apply to enforcement of such obligations also apply to this
  5 32 section.  Administrative wage assignment under this section is
  5 33 the equivalent of condemning funds under chapter 642.  It is
  5 34 expressly provided that these remedies shall be cumulative and
  5 35 that no action taken by the director or the attorney general
  6  1 shall be construed to be an election on the part of the state
  6  2 or any of its officers or representatives to pursue any other
  6  3 remedy provided by law.
  6  4    Administrative wage assignment under this section is the
  6  5 equivalent of condemning funds under chapter 642.
  6  6    The administrative wage assignment is to be considered an
  6  7 additional means of collection by the facility and not an
  6  8 exclusive means of collection.  If the use of an
  6  9 administrative wage assignment is not successful in collecting
  6 10 an outstanding debt due the facility, the facility may use the
  6 11 collection provisions set forth in chapters 626 and 642.
  6 12    Sec. 12.  Section 421.17B, subsection 3, Code Supplement
  6 13 2003, is amended to read as follows:
  6 14    3.  NOTICE OF INTENT TO THE OBLIGOR.
  6 15    a.  The facility may proceed under this section only if a
  6 16 ten-day twenty days' notice has been provided to the obligor.
  6 17 Notice by the facility may be by regular mail to the last
  6 18 known address of the obligor, notifying the obligor that the
  6 19 obligor is subject to this section.  If the facility
  6 20 determines that collection of the debt may be in jeopardy, the
  6 21 facility may request that the employer deliver notice of the
  6 22 wage assignment simultaneous with the remainder of or in lieu
  6 23 of the obligor's compensation due from the employer.
  6 24    The facility may obtain one or more wage assignments of an
  6 25 obligor who is subject to this section.  If the obligor has
  6 26 more than one employer, the facility may receive wage
  6 27 assignments from one or all more of the employers until the
  6 28 full debt obligation of the obligor is satisfied.  If an
  6 29 obligor has more than one employer, the facility shall give
  6 30 notice to all employers that the facility seeks to have an
  6 31 assignment of wages from whom an assignment is sought.
  6 32    b.  The notice from the facility to the obligor shall
  6 33 contain all of the following:
  6 34    (1)  The name and social security number of the obligor.
  6 35    (2)  A statement that the obligor is believed to have
  7  1 employment with the stated employer.
  7  2    (3)  A statement that pursuant to the provisions of this
  7  3 section, the obligor's wages will be assigned to the facility
  7  4 for payment of the specified debts and that the employer is
  7  5 authorized and required to forward moneys to the facility.
  7  6    (4)  The maximum amount to be forwarded by the employer,
  7  7 which shall not exceed the delinquent or accrued amount of
  7  8 debt being collected by or owed to the facility by the
  7  9 obligor.
  7 10    (5)  The prescribed time frames the employer must meet in
  7 11 forwarding any amounts.
  7 12    (6)  A statement that any challenge to the action must be
  7 13 in writing and must be received by the facility within ten
  7 14 days of the date of the notice to the obligor.
  7 15    (7)  The address of the facility and the account number
  7 16 utilized by the facility for the obligor.
  7 17    (8)  A The telephone number, address, and contact name of
  7 18 the agent for the facility initiating the action.
  7 19    Sec. 13.  Section 421.17B, subsection 6, paragraph c,
  7 20 subparagraph (7), Code Supplement 2003, is amended to read as
  7 21 follows:
  7 22    (7)  A The telephone number, address, and name of a contact
  7 23 person with the facility of the agent for the facility
  7 24 initiating the action.
  7 25    Sec. 14.  Section 421.17B, subsection 8, paragraphs a, b,
  7 26 c, and f, Code Supplement 2003, are amended to read as
  7 27 follows:
  7 28    a.  Challenges under this section may be initiated only by
  7 29 an obligor.  An administrative wage assignment only occurs
  7 30 after the obligor has waived or exhausted administrative
  7 31 remedies.  Reviews by the facility of a challenge to an
  7 32 administrative wage assignment are not subject to chapter 17A
  7 33 unless the challenge is regarding the validity of the
  7 34 assignment.  Actions under this section are in equity and not
  7 35 actions at law.
  8  1    b.  The obligor challenging the administrative wage
  8  2 assignment shall submit a written challenge to the person
  8  3 identified as the contact agent for the facility in the
  8  4 notice, within ten days of the date of the notice to the
  8  5 obligor of initiation of the assignment.
  8  6    c.  The facility, upon receipt of a written challenge,
  8  7 shall review the facts of the case administrative wage
  8  8 assignment with the obligor within ten days of receipt of the
  8  9 challenge.  If the obligor is not available for the review on
  8 10 the scheduled date, the review shall take place without the
  8 11 obligor being present.  Information in favor of the obligor
  8 12 shall be considered by the facility in the review.  The
  8 13 facility may utilize additional information if such
  8 14 information is available.  Only a mistake of fact, including,
  8 15 but not limited to, a mistake in the identity of the obligor
  8 16 or a mistake in the amount owed to or being collected by the
  8 17 facility shall be considered as a reason to dismiss or modify
  8 18 the administrative wage assignment.
  8 19    f.  The obligor shall have the right to file an action for
  8 20 wrongful assignment in district court within thirty days of
  8 21 the date of the notice to the obligor, either in the county
  8 22 where the obligor is located or in Polk county where the
  8 23 facility is located.  Actions under this section are in equity
  8 24 and not actions at law.
  8 25    Sec. 15.  Section 421.17B, subsection 8, Code Supplement
  8 26 2003, is amended by adding the following new paragraphs:
  8 27    NEW PARAGRAPH.  g.  Recovery under this subsection is
  8 28 limited to restitution of the amount that has been wrongfully
  8 29 encumbered or obtained by the department.
  8 30    NEW PARAGRAPH.  h.  A challenge to an administrative action
  8 31 under this subsection cannot be used to extend or reopen the
  8 32 statute of limitations to protest other departmental actions
  8 33 or to contest the amount or validity of the tax.  Only issues
  8 34 involving the assignment can be raised in a challenge to an
  8 35 administrative action under this subsection.
  9  1    Sec. 16.  Section 421.17B, subsection 9, unnumbered
  9  2 paragraph 2, Code Supplement 2003, is amended to read as
  9  3 follows:
  9  4    Expiration Cessation of the wage assignment does not affect
  9  5 the obligor's duties and liabilities respecting the wages
  9  6 already withheld pursuant to the wage assignment.
  9  7    Sec. 17.  Section 422.10, subsection 3, unnumbered
  9  8 paragraph 2, Code Supplement 2003, is amended to read as
  9  9 follows:
  9 10    For purposes of this section, "Internal Revenue Code" means
  9 11 the Internal Revenue Code in effect on January 1, 2003 2004.
  9 12    Sec. 18.  Section 422.33, subsection 5, paragraph d,
  9 13 unnumbered paragraph 2, Code Supplement 2003, is amended to
  9 14 read as follows:
  9 15    For purposes of this subsection, "Internal Revenue Code"
  9 16 means the Internal Revenue Code in effect on January 1, 2003
  9 17 2004.
  9 18    Sec. 19.  Section 422.42, subsection 6, Code 2003, is
  9 19 amended by adding the following new paragraph:
  9 20    NEW PARAGRAPH.  c.  That trade discounts given or allowed
  9 21 by manufacturers, distributors, or wholesalers to retailers or
  9 22 by manufacturers or distributors to wholesalers and payments
  9 23 made by manufacturers, distributors, or wholesalers directly
  9 24 to retailers or by manufacturers or distributors to
  9 25 wholesalers to reduce the sales price of the manufacturer's,
  9 26 distributor's, or wholesaler's product or to promote the sale
  9 27 or recognition of the manufacturer's, distributor's, or
  9 28 wholesaler's product shall not be included if excessive sales
  9 29 tax is not collected from the purchaser.  This paragraph does
  9 30 not apply to coupons issued by manufacturers, distributors, or
  9 31 wholesalers to consumers.
  9 32    Sec. 20.  Section 422A.1, unnumbered paragraph 8, Code
  9 33 Supplement 2003, is amended to read as follows:
  9 34    The tax levied shall be in addition to any state sales tax
  9 35 imposed under section 422.43.  Section 422.25, subsection 4,
 10  1 sections 422.30, 422.48 to 422.52, 422.54 to 422.58, 422.67,
 10  2 422.68, 422.69, subsection 1, and sections 422.70 to 422.75,
 10  3 consistent with the provisions of this chapter, apply with
 10  4 respect to the taxes authorized under this chapter, in the
 10  5 same manner and with the same effect as if the hotel and motel
 10  6 taxes were retail sales taxes within the meaning of those
 10  7 statutes.  Notwithstanding this paragraph, the director shall
 10  8 provide for quarterly filing of returns as prescribed in
 10  9 section 422.51 and for other than quarterly filing of returns
 10 10 as prescribed in section 422.51, subsection 2.  The director
 10 11 may require all persons, as defined in section 422.42, who are
 10 12 engaged in the business of deriving gross receipts subject to
 10 13 tax under this chapter, to register with the department.  All
 10 14 taxes collected under this chapter by a retailer or any
 10 15 individual are deemed to be held in trust for the state of
 10 16 Iowa and the local jurisdictions imposing the taxes.
 10 17    Sec. 21.  Section 422B.9, subsection 3, paragraph a, Code
 10 18 Supplement 2003, is amended to read as follows:
 10 19    a.  The director, in consultation with local officials,
 10 20 shall collect and account for a local sales and services tax.
 10 21 The director shall certify each quarter the amount of local
 10 22 sales and services tax receipts and any interest and penalties
 10 23 to be credited to the "local sales and services tax fund"
 10 24 established in the office of the treasurer of state.  All
 10 25 taxes collected under this chapter by a retailer or any
 10 26 individual are deemed to be held in trust for the state of
 10 27 Iowa and the local jurisdictions imposing the taxes.
 10 28    Sec. 22.  Section 423.1, subsection 47, paragraph b, as
 10 29 enacted by 2003 Iowa Acts, First Extraordinary Session,
 10 30 chapter 2, section 94, is amended by adding the following new
 10 31 subparagraph:
 10 32    NEW SUBPARAGRAPH.  (5)  Trade discounts given or allowed by
 10 33 manufacturers, distributors, or wholesalers to retailers or by
 10 34 manufacturers or distributors to wholesalers and payments made
 10 35 by manufacturers, distributors, or wholesalers directly to
 11  1 retailers or by manufacturers or distributors to wholesalers
 11  2 to reduce the sales price of the manufacturer's, distributors,
 11  3 or wholesaler's product or to promote the sale or recognition
 11  4 of the manufacturer's, distributor's, or wholesaler's product.
 11  5 This subparagraph does not apply to coupons issued by
 11  6 manufacturers, distributors, or wholesalers to consumers.
 11  7    Sec. 23.  Section 423.1, subsection 47, as enacted by 2003
 11  8 Iowa Acts, First Extraordinary Session, chapter 2, section 94,
 11  9 is amended by adding the following new paragraph:
 11 10    NEW PARAGRAPH.  c.  For purposes of this definition, the
 11 11 sales price from a rental or lease includes rent, royalties,
 11 12 and copyright and license fees.
 11 13    Sec. 24.  Section 423.2, subsection 6, unnumbered paragraph
 11 14 2, as enacted by 2003 Iowa Acts, First Extraordinary Session,
 11 15 chapter 2, section 95, is amended to read as follows:
 11 16    For the purposes of this subsection, the sales price of a
 11 17 lease or rental includes rents, royalties, and copyright and
 11 18 license fees.  For the purposes of this subsection, "financial
 11 19 institutions" means all national banks, federally chartered
 11 20 savings and loan associations, federally chartered savings
 11 21 banks, federally chartered credit unions, banks organized
 11 22 under chapter 524, savings and loan associations and savings
 11 23 banks organized under chapter 534, and credit unions organized
 11 24 under chapter 533.
 11 25    Sec. 25.  Section 423.2, as enacted by 2003 Iowa Acts,
 11 26 First Extraordinary Session, chapter 2, section 95, is amended
 11 27 by adding the following new subsection:
 11 28    NEW SUBSECTION.  11.  All taxes collected under this
 11 29 chapter by a retailer or any individual are deemed to be held
 11 30 in trust for the state of Iowa.
 11 31    Sec. 26.  Section 423.3, subsections 33 and 82, as enacted
 11 32 by 2003 Iowa Acts, First Extraordinary Session, chapter 2,
 11 33 section 96, are amended to read as follows:
 11 34    33.  a.  The sales price of mementos and other items
 11 35 relating to Iowa history and historic sites, the general
 12  1 assembly, and the state capitol, sold by the legislative
 12  2 service bureau services agency and its legislative information
 12  3 office on the premises of property under the control of the
 12  4 legislative council, at the state capitol, and on other state
 12  5 property.
 12  6    b.  The legislative services agency is not a retailer under
 12  7 this chapter and the sale of items or provision of services by
 12  8 the legislative services agency is not a retail sale under
 12  9 this chapter and is exempt from the sales tax.
 12 10    82.  a.  The sales price from the sale or rental of core
 12 11 and making, mold making, equipment and sand handling machinery
 12 12 and equipment, including replacement parts, directly and
 12 13 primarily used in the mold making process by a foundry.
 12 14    b.  The sales price from the sale of fuel used in creating
 12 15 heat, power, steam, or for generating electric current, or
 12 16 from the sale of electricity, consumed by core making, mold
 12 17 making, and sand handling machinery and equipment used
 12 18 directly and primarily in the mold-making process by a
 12 19 foundry.
 12 20    c.  The sales price from the furnishing of the design and
 12 21 installation, including electrical and electronic
 12 22 installation, of core making, mold making, and sand handling
 12 23 machinery and equipment used directly and primarily in the
 12 24 mold-making process by a foundry.
 12 25    Sec. 27.  Section 423.3, as enacted by 2003 Iowa Acts,
 12 26 First Extraordinary Session, chapter 2, section 96, is amended
 12 27 by adding the following new subsection:
 12 28    NEW SUBSECTION.  43A.  The sales price from the sale of
 12 29 wine which is shipped from outside Iowa and which meets the
 12 30 requirements for sales and use tax exemption pursuant to
 12 31 section 123.187.
 12 32    Sec. 28.  Section 424.3, subsection 1, Code 2003, is
 12 33 amended by adding the following new unnumbered paragraph:
 12 34    NEW UNNUMBERED PARAGRAPH.  All taxes or charges collected
 12 35 under this chapter by a depositor or any individual from a
 13  1 receiver or any other individual are considered to be held in
 13  2 trust on behalf of the state of Iowa.
 13  3    Sec. 29.  Section 441.21, subsection 2, Code Supplement
 13  4 2003, is amended to read as follows:
 13  5    2.  In the event market value of the property being
 13  6 assessed cannot be readily established in the foregoing
 13  7 manner, then the assessor may determine the value of the
 13  8 property using the other uniform and recognized appraisal
 13  9 methods including its productive and earning capacity, if any,
 13 10 industrial conditions, its cost, physical and functional
 13 11 depreciation and obsolescence and replacement cost, and all
 13 12 other factors which would assist in determining the fair and
 13 13 reasonable market value of the property but the actual value
 13 14 shall not be determined by use of only one such factor.  The
 13 15 following shall not be taken into consideration:  Special
 13 16 value or use value of the property to its present owner, and
 13 17 the good will or value of a business which uses the property
 13 18 as distinguished from the value of the property as property.
 13 19 However, in assessing property that is rented or leased to
 13 20 low-income individuals and families as authorized by section
 13 21 42 of the Internal Revenue Code, as amended, and which section
 13 22 limits the amount that the individual or family pays for the
 13 23 rental or lease of units in the property, the assessor shall
 13 24 use the productive and earning capacity from the actual rents
 13 25 received as a method of appraisal and shall take into account
 13 26 the extent to which that use and limitation reduces the market
 13 27 value of the property.  The assessor shall not consider any
 13 28 tax credit equity or other subsidized financing as income
 13 29 provided to the property in determining the assessed value.
 13 30 The property owner shall notify the assessor when property is
 13 31 withdrawn from section 42 eligibility under the Internal
 13 32 Revenue Code.  The property shall not be subject to section 42
 13 33 assessment procedures for the assessment year for which
 13 34 section 42 eligibility is withdrawn.  This notification must
 13 35 be provided to the assessor no later than March 1 of the
 14  1 assessment year or the owner will be subject to a penalty of
 14  2 five hundred dollars for that assessment year.  The penalty
 14  3 shall be collected at the same time and in the same manner as
 14  4 regular property taxes.  Upon adoption of uniform rules by the
 14  5 revenue department or succeeding authority covering
 14  6 assessments and valuations of such properties, said valuation
 14  7 on such properties shall be determined in accordance therewith
 14  8 for assessment purposes to assure uniformity, but such rules
 14  9 shall not be inconsistent with or change the foregoing means
 14 10 of determining the actual, market, taxable and assessed
 14 11 values.
 14 12    Sec. 30.  Section 450.22, Code 2003, is amended to read as
 14 13 follows:
 14 14    450.22  ADMINISTRATION AVOIDED – INHERITANCE TAX DUTIES
 14 15 REQUIRED.
 14 16    1.  When the heirs or persons entitled to inherit the
 14 17 property of an estate subject to tax under this chapter desire
 14 18 to avoid the appointment of a personal representative as
 14 19 provided in section 450.21, and in all instances where real
 14 20 estate is involved and there are no regular probate
 14 21 proceedings, they or one of them shall file under oath the
 14 22 inventories required by section 633.361 and the required
 14 23 reports, perform all the duties required by this chapter of
 14 24 the personal representative, and file the inheritance tax
 14 25 return.
 14 26    2.  However, this section does not apply and a return is
 14 27 not required to be filed even though real estate is part of
 14 28 the assets subject to tax under this chapter, if all of the
 14 29 assets are held in joint tenancy with right of survivorship
 14 30 between husband and wife alone, or if the estate exclusively
 14 31 consists of property held in joint tenancy with the right of
 14 32 survivorship solely by the decedent and any individuals listed
 14 33 in section 450.9 as individuals that are entirely exempt from
 14 34 Iowa inheritance tax and the estate does not have a federal
 14 35 estate tax obligation.
 15  1    3.  However, this section does not apply and a return is
 15  2 not required to be filed, even though real estate is involved,
 15  3 if the estate does not have a federal estate tax filing
 15  4 obligation and if all the estate's assets are described in any
 15  5 of the following categories:
 15  6    a.  Assets held in joint tenancy with right of survivorship
 15  7 between husband and wife alone.
 15  8    b.  Assets held in joint tenancy with right of survivorship
 15  9 solely between the decedent and individuals listed in section
 15 10 450.9 as individuals that are entirely exempt from Iowa
 15 11 inheritance tax.
 15 12    c.  Assets passing by beneficiary designation, pursuant to
 15 13 a trust intended to pass the decedent's property at death or
 15 14 through any other nonprobate transfer solely to individuals
 15 15 listed in section 450.9 as individuals that are entirely
 15 16 exempt from Iowa inheritance tax.
 15 17    This subsection does not apply to interests in an asset or
 15 18 assets that pass to both an individual listed in section 450.9
 15 19 and to that individual's spouse.
 15 20    4.  If a return is not required to be filed pursuant to
 15 21 subsection 3, and if real estate is involved, one of the
 15 22 individuals with an interest in, or succeeding to an interest
 15 23 in, the real estate shall file an affidavit in the county in
 15 24 which the real estate is located setting forth the legal
 15 25 description of the real estate and the fact that an
 15 26 inheritance tax return is not required pursuant to subsection
 15 27 3.  If a false affidavit is filed, the affiant and the
 15 28 personal representative shall be jointly and severally liable
 15 29 for any tax, penalty, and interest that may have been due.
 15 30 Any otherwise applicable statute of limitations on the
 15 31 assessment and collection of the tax, penalty, and interest
 15 32 shall not apply.
 15 33    5.  When this section applies, proceedings for the
 15 34 collection of the tax when a personal representative is not
 15 35 appointed shall conform as nearly as possible to proceedings
 16  1 under this chapter in other cases.
 16  2    Sec. 31.  Section 450.37, subsection 2, paragraph a, Code
 16  3 Supplement 2003, is amended to read as follows:
 16  4    a.  If an agreement has not been reached on the fair market
 16  5 value of real property in the ordinary course of trade, the
 16  6 director of revenue has thirty sixty days after the return is
 16  7 filed to request an appraisal under section 450.27.  If an
 16  8 appraisal request is not made within the thirty-day sixty-day
 16  9 period, the value listed on the return is the agreed value of
 16 10 the real property.
 16 11    Sec. 32.  Section 450.53, subsections 1 and 2, Code
 16 12 Supplement 2003, are amended to read as follows:
 16 13    1.  a.  All personal representatives, except guardians and
 16 14 conservators, and other persons charged with the management or
 16 15 settlement of any estate or trust from which a tax is due
 16 16 under this chapter, shall file an inheritance tax return,
 16 17 within the time limits set by section 450.6, with a copy of
 16 18 any federal estate tax return and other documents required by
 16 19 the director which may reasonably tend to prove the amount of
 16 20 tax due, and at the time of filing, shall pay to the
 16 21 department of revenue the amount of the tax due from any
 16 22 devisee, grantee, donee, heir, or beneficiary of the decedent,
 16 23 except in cases where payment of the tax is deferred until the
 16 24 determination of a prior estate.  The owner of the future
 16 25 interest shall file a supplemental inheritance tax return and
 16 26 pay to the department of revenue the tax due within the time
 16 27 limits set in this chapter.  The inheritance tax returns shall
 16 28 be in the form prescribed by the director.
 16 29    b.  Notwithstanding paragraph "a", an inheritance tax
 16 30 return is not required to be filed if the estate does not have
 16 31 a federal estate tax filing obligation and if all the estate
 16 32 or trust assets pass solely to individuals listed in section
 16 33 450.9 as individuals that are entirely exempt from Iowa
 16 34 inheritance tax.  This paragraph is not applicable if
 16 35 interests in the asset passes to both an individual listed in
 17  1 section 450.9 and to that individual's spouse.
 17  2    2.  a.  A person in possession of assets to be reported for
 17  3 purposes of taxation, including a personal representative or
 17  4 trustee, who willfully makes a false or fraudulent return, or
 17  5 willfully fails to pay the tax, supply the information, make,
 17  6 sign, or file the required return within the time required by
 17  7 law, is guilty of a fraudulent practice.  This paragraph does
 17  8 not apply if a return is not required to be filed pursuant to
 17  9 subsection 1, paragraph "b".
 17 10    b.  If a false affidavit is filed, the affiant and the
 17 11 personal representative shall be jointly and severally liable
 17 12 for any tax, penalty, and interest that may have been due.
 17 13 Any otherwise applicable statute of limitations on the
 17 14 assessment and collection of the tax, penalty, and interest
 17 15 shall not apply.
 17 16    Sec. 33.  Section 450.58, Code Supplement 2003, is amended
 17 17 to read as follows:
 17 18    450.58  FINAL SETTLEMENT TO SHOW PAYMENT.
 17 19    The 1.  Except as provided in subsection 2, the final
 17 20 settlement of the account of a personal representative shall
 17 21 not be accepted or allowed unless it shows, and the court
 17 22 finds, that all taxes imposed by this chapter upon any
 17 23 property or interest in property that are made payable by the
 17 24 personal representative and to be settled by the account, have
 17 25 been paid, and that the receipt of the department of revenue
 17 26 for the tax has been obtained as provided in section 450.64.
 17 27    2.  If an inheritance tax return is not required to be
 17 28 filed pursuant to section 450.53, subsection 1, paragraph "b",
 17 29 the personal representative's final settlement of account need
 17 30 not contain an inheritance tax receipt from the department,
 17 31 but shall, instead, contain the personal representative's
 17 32 statement, under oath, that an inheritance tax return is not
 17 33 required to be filed pursuant to section 450.53, subsection 1,
 17 34 paragraph "b".  If a false affidavit is filed, the affiant and
 17 35 the personal representative shall be jointly and severally
 18  1 liable for any tax, penalty, and interest that may have been
 18  2 due.  Any otherwise applicable statute of limitations on the
 18  3 assessment and collection of the tax, penalty, and interest
 18  4 shall not apply.
 18  5    3.  Any order contravening any provision of this section is
 18  6 void.
 18  7    Sec. 34.  Section 450.94, subsection 2, Code Supplement
 18  8 2003, is amended to read as follows:
 18  9    2.  The Unless a return is not required to be filed
 18 10 pursuant to section 450.22, subsection 3, or section 450.53,
 18 11 subsection 1, paragraph "b", the taxpayer shall file an
 18 12 inheritance tax return on forms to be prescribed by the
 18 13 director of revenue on or before the last day of the ninth
 18 14 month after the death of the decedent.  When an inheritance
 18 15 tax return is filed, the department shall examine it and
 18 16 determine the correct amount of tax.  If the amount paid is
 18 17 less than the correct amount due, the department shall notify
 18 18 the taxpayer of the total amount due together with any penalty
 18 19 and interest which shall be a sum certain if paid on or before
 18 20 the last day of the month in which the notice is dated, or on
 18 21 or before the last day of the following month if the notice is
 18 22 dated after the twentieth day of a month and before the first
 18 23 day of the following month.
 18 24    Sec. 35.  Section 452A.3, Code 2003, is amended by adding
 18 25 the following new subsection:
 18 26    NEW SUBSECTION.  7.  All excise taxes collected under this
 18 27 chapter by a supplier, restrictive supplier, importer, dealer,
 18 28 blender, user, or any individual are deemed to be held in
 18 29 trust for the state or Iowa.
 18 30    Sec. 36.  Section 453A.6, Code 2003, is amended by adding
 18 31 the following new subsection:
 18 32    NEW SUBSECTION.  6.  All excise taxes collected under this
 18 33 division by a distributor, manufacturer, or any individual are
 18 34 deemed to be held in trust for the state of Iowa.
 18 35    Sec. 37.  Section 453A.11, Code 2003, is amended to read as
 19  1 follows:
 19  2    453A.11  CANCELLATION OF STAMPS.
 19  3    Stamps affixed to a package of cigarettes shall not be
 19  4 canceled by any letter, numeral, or other mark of
 19  5 identification or otherwise mutilated in any manner that will
 19  6 prevent or hinder the department in making an examination as
 19  7 to the genuineness of the stamp.  However, the director may
 19  8 require such cancellation of the tax stamps affixed to
 19  9 packages of cigarettes which is necessary to carry out
 19 10 properly the provisions of this division.  A person who
 19 11 cancels or causes the cancellation of stamps in violation of
 19 12 this section shall be considered in possession of unstamped
 19 13 cigarettes and is subject to the penalty provided in section
 19 14 453A.31, subsection 1.
 19 15    Sec. 38.  Section 453A.15, subsection 1, Code 2003, is
 19 16 amended to read as follows:
 19 17    1.  The director may prescribe the forms necessary for the
 19 18 efficient administration of this division and may require
 19 19 uniform books and records to be used and kept by each permit
 19 20 holder or other person as deemed necessary.  The director may
 19 21 also require each permit holder or other person to keep and
 19 22 retain in the director's possession evidence on prescribed
 19 23 forms of all transactions involving the purchase and sale of
 19 24 cigarettes or the purchase and use of stamps.  The evidence
 19 25 shall be kept for a period of two three years from the date of
 19 26 each transaction, for the inspection at all times by the
 19 27 department.
 19 28    Sec. 39.  Section 453A.28, Code 2003, is amended to read as
 19 29 follows:
 19 30    453A.28  ASSESSMENT OF TAX BY DEPARTMENT – INTEREST –
 19 31 PENALTY.
 19 32    If after any audit, examination of records, or other
 19 33 investigation the department finds that any person has sold
 19 34 cigarettes without stamps affixed or that any person
 19 35 responsible for paying the tax has not done so as required by
 20  1 this division, the department shall fix and determine the
 20  2 amount of tax due, and shall assess the tax against the
 20  3 person, together with a penalty as provided in section 421.27.
 20  4 The taxpayer shall pay interest on the tax or additional tax
 20  5 at the rate determined under section 421.7 counting each
 20  6 fraction of a month as an entire month, computed from the date
 20  7 the tax was due.  If any person fails to furnish evidence
 20  8 satisfactory to the director showing purchases of sufficient
 20  9 stamps to stamp unstamped cigarettes purchased by the person,
 20 10 the presumption shall be that the cigarettes were sold without
 20 11 the proper stamps affixed.  Within two three years after the
 20 12 report is filed or within two three years after the report
 20 13 became due, whichever is later, the department shall examine
 20 14 the report and determine the correct amount of tax.  The
 20 15 period for examination and determination of the correct amount
 20 16 of tax is unlimited in the case of a false or fraudulent
 20 17 report made with the intent to evade tax, or in the case of a
 20 18 failure to file a report, or if a person purchases or is in
 20 19 possession of unstamped cigarettes.
 20 20    The two-year three-year period of limitation may be
 20 21 extended by a taxpayer by signing a waiver agreement form to
 20 22 be provided by the department.  The agreement must stipulate
 20 23 the period of extension and the tax period to which the
 20 24 extension applies.  The agreement must also provide that a
 20 25 claim for refund may be filed by the taxpayer at any time
 20 26 during the period of extension.
 20 27    Sec. 40.  Section 453A.31, subsection 1, paragraphs c, d,
 20 28 and e, Code 2003, are amended to read as follows:
 20 29    c.  A one thousand twenty-five dollar per pack penalty for
 20 30 the first violation if a person is in possession of more than
 20 31 two thousand unstamped cigarettes.
 20 32    d.  For a second violation within two three years of the
 20 33 first violation, the penalty is four hundred dollars if a
 20 34 person is in possession of more than forty but not more than
 20 35 four hundred unstamped cigarettes; one thousand dollars if a
 21  1 person is in possession of more than four hundred but not more
 21  2 than two thousand unstamped cigarettes; and two thousand
 21  3 thirty-five dollars per pack if a person is in possession of
 21  4 more than two thousand unstamped cigarettes.
 21  5    e.  For a third or subsequent violation within two three
 21  6 years of the first violation, the penalty is six hundred
 21  7 dollars if a person is in possession of more than forty but
 21  8 not more than four hundred unstamped cigarettes; one thousand
 21  9 five hundred dollars if a person is in possession of more than
 21 10 four hundred but not more than two thousand unstamped
 21 11 cigarettes; and three thousand forty-five dollars per pack if
 21 12 a person is in possession of more than two thousand unstamped
 21 13 cigarettes.
 21 14    Sec. 41.  Section 453A.31, subsection 2, paragraphs b and
 21 15 c, Code 2003, are amended to read as follows:
 21 16    b.  A five hundred dollar penalty for a second violation
 21 17 within two three years of the first violation.
 21 18    c.  A thousand dollar penalty for a third or subsequent
 21 19 violation within two three years of the first violation.
 21 20    Sec. 42.  Section 453A.32, subsections 1, 4, and 5, Code
 21 21 2003, are amended to read as follows:
 21 22    1.  All cigarettes on which taxes are imposed or required
 21 23 to be imposed by this division, which are found in the
 21 24 possession or custody, or within the control of any person,
 21 25 for the purpose of being sold, distributed, or removed by the
 21 26 person in violation of this division, and all cigarettes which
 21 27 are removed or are, stored, transported, deposited, or
 21 28 concealed in any place with intent to avoid payment of taxes
 21 29 without the proper taxes paid, and any automobile, truck,
 21 30 boat, conveyance, or other vehicle whatsoever, used in the
 21 31 removal, storage, deposit, concealment, or transportation of
 21 32 cigarettes for such the purpose of avoiding the payment of the
 21 33 proper tax, and all equipment or other tangible personal
 21 34 property incident to and used for such the purpose of avoiding
 21 35 the payment of the proper tax, found in the place, building,
 22  1 or vehicle where cigarettes are found, and all counterfeit
 22  2 cigarettes may be seized by the department, with or without
 22  3 process and shall be from the time of the seizure forfeited to
 22  4 the state of Iowa.  A proceeding in the nature of a proceeding
 22  5 in rem shall be filed in a court of competent jurisdiction in
 22  6 the county of seizure to maintain the seizure and declare and
 22  7 perfect the forfeiture.  All cigarettes, counterfeit
 22  8 cigarettes, vehicles, and property seized, remaining in the
 22  9 possession or custody of the department, sheriff or other
 22 10 officer for forfeiture or other disposition as provided by
 22 11 law, are not subject to replevin.
 22 12    4.  In the event final judgment is rendered in the
 22 13 forfeiture proceedings aforesaid, maintaining the seizure, and
 22 14 declaring and perfecting the forfeiture of said seized
 22 15 property, the court shall order and decree the sale thereof of
 22 16 the seized property, other than the counterfeit cigarettes, to
 22 17 the highest bidder, by the sheriff at public auction in the
 22 18 county of seizure after notice is given in the manner provided
 22 19 in the case of the sale of personal property under execution,
 22 20 and the proceeds of such sale, less expense of seizure and
 22 21 court costs, shall be paid into the state treasury.
 22 22 Counterfeit cigarettes shall be destroyed or disposed of in a
 22 23 manner determined by the director.
 22 24    5.  In the event the cigarettes seized hereunder and sought
 22 25 to be sold upon forfeiture shall be are unstamped, the
 22 26 cigarettes shall be sold by the director or the director's
 22 27 designee to the highest bidder among the licensed permitted
 22 28 distributors in this state after written notice has been
 22 29 mailed to all such distributors.  If there is no bidder, or in
 22 30 the opinion of the director the quantity of cigarettes to be
 22 31 sold is insufficient or for any other reason such disposition
 22 32 of the cigarettes is impractical, the cigarettes shall be
 22 33 destroyed or disposed of in a manner as determined by the
 22 34 director.  The proceeds of such from the sales shall be paid
 22 35 into the state treasury.
 23  1    Sec. 43.  Section 453A.36, Code 2003, is amended by adding
 23  2 the following new subsection:
 23  3    NEW SUBSECTION.  9.  a.  It is unlawful for a person to
 23  4 ship or import into this state or to offer for sale, sell,
 23  5 distribute, transport, or possess counterfeit cigarettes,
 23  6 knowing such cigarettes are counterfeit cigarettes or having
 23  7 reasonable cause to believe that such cigarettes are
 23  8 counterfeit cigarettes.
 23  9    b.  For purposes of this subsection and section 453A.32,
 23 10 "counterfeit cigarettes" means cigarettes, packages of
 23 11 cigarettes, cartons of cigarettes or other containers of
 23 12 cigarettes with a label, trademark, service mark, trade name,
 23 13 device, design, or word adopted or used by a cigarette
 23 14 manufacturer to identify its product that is false or used
 23 15 without authority of the cigarette manufacturer.
 23 16    Sec. 44.  NEW SECTION.  453A.39  TOBACCO PRODUCT AND
 23 17 CIGARETTE SAMPLES – RESTRICTIONS – ADMINISTRATION.
 23 18    1.  A manufacturer, distributor, wholesaler, retailer, or
 23 19 distributing agent, or agent thereof, shall not give away
 23 20 cigarettes or tobacco products at any time in connection with
 23 21 the manufacturer's, distributor's, wholesaler's, retailer's,
 23 22 or distributing agent's business or for promotion of the
 23 23 business or product, except as provided in subsection 2.
 23 24    2.  a.  All cigarette samples shall be shipped only to a
 23 25 distributor that has a permit to stamp cigarettes or little
 23 26 cigars with Iowa tax.  All cigarette samples must have a
 23 27 cigarette stamp.  The manufacturer shipping samples under this
 23 28 section shall send an affidavit to the director stating the
 23 29 shipment information, including the date shipped, quantity,
 23 30 and to whom the samples were shipped.  The distributor
 23 31 receiving the shipment shall send an affidavit to the director
 23 32 stating the shipment information, including the date shipped,
 23 33 quantity, and from whom the samples were shipped.  These
 23 34 affidavits shall be duly notarized and submitted to the
 23 35 director at the time of shipment and receipt of the samples.
 24  1 The distributor shall pay the tax on samples by separate
 24  2 remittance along with the affidavit.
 24  3    b.  A manufacturer, distributor, wholesaler, retailer, or
 24  4 distributing agent or agent thereof shall not give away any
 24  5 cigarettes or tobacco products to any person under eighteen
 24  6 years of age, or within five hundred feet of any playground,
 24  7 school, high school, or other facility when such facility is
 24  8 being used primarily by persons under age eighteen for
 24  9 recreational, educational, or other purposes.
 24 10    c.  Proof of age shall be required if a reasonable person
 24 11 could conclude on the basis of outward appearance that a
 24 12 prospective recipient of a sample may be under eighteen years
 24 13 of age.
 24 14    Sec. 45.  Section 453A.43, Code 2003, is amended by adding
 24 15 the following new subsection:
 24 16    NEW SUBSECTION.  6.  All excise taxes collected under this
 24 17 chapter by a distributor or any individual are deemed to be
 24 18 held in trust for the state of Iowa.
 24 19    Sec. 46.  Section 453A.45, subsection 1, unnumbered
 24 20 paragraph 2, Code 2003, is amended to read as follows:
 24 21    When a licensed distributor sells tobacco products
 24 22 exclusively to the ultimate consumer at the address given in
 24 23 the license, an invoice of those sales is not required, but
 24 24 itemized invoices shall be made of all tobacco products
 24 25 transferred to other retail outlets owned or controlled by
 24 26 that licensed distributor.  All books, records and other
 24 27 papers and documents required by this subdivision to be kept
 24 28 shall be preserved for a period of at least two three years
 24 29 after the date of the documents or the date of the entries
 24 30 appearing in the records, unless the director, in writing,
 24 31 authorized their destruction or disposal at an earlier date.
 24 32 At any time during usual business hours, the director, or the
 24 33 director's duly authorized agents or employees, may enter any
 24 34 place of business of a distributor, without a search warrant,
 24 35 and inspect the premises, the records required to be kept
 25  1 under this subdivision, and the tobacco products contained
 25  2 therein, to determine if all the provisions of this division
 25  3 are being fully complied with.  If the director, or any such
 25  4 agent or employee, is denied free access or is hindered or
 25  5 interfered with in making the examination, the license of the
 25  6 distributor at that premises is subject to revocation by the
 25  7 director.
 25  8    Sec. 47.  Section 453A.45, subsections 2, 3, and 4, Code
 25  9 2003, are amended to read as follows:
 25 10    2.  Every person who sells tobacco products to persons
 25 11 other than the ultimate consumer shall render with each sale
 25 12 itemized invoices showing the seller's name and address, the
 25 13 purchaser's name and address, the date of sale, and all prices
 25 14 and discounts.  The person shall preserve legible copies of
 25 15 all such these invoices for two three years from the date of
 25 16 sale.
 25 17    3.  Every retailer and subjobber shall procure itemized
 25 18 invoices of all tobacco products purchased.  The invoices
 25 19 shall show the name and address of the seller and the date of
 25 20 purchase.  The retailer and subjobber shall preserve a legible
 25 21 copy of each such invoice for two three years from the date of
 25 22 purchase.  Invoices shall be available for inspection by the
 25 23 director or the director's authorized agents or employees at
 25 24 the retailer's or subjobber's place of business.
 25 25    4.  Records of all deliveries or shipments of tobacco
 25 26 products from any public warehouse of first destination in
 25 27 this state which is subject to the provisions of and licensed
 25 28 under chapter 554 shall be kept by the warehouse and be
 25 29 available to the director for inspection.  They shall show the
 25 30 name and address of the consignee, the date, the quantity of
 25 31 tobacco products delivered, and such other information as the
 25 32 commissioner may require.  These records shall be preserved
 25 33 for two three years from the date of delivery of the tobacco
 25 34 products.
 25 35    Sec. 48.  Section 453A.46, subsections 1 and 6, Code 2003,
 26  1 are amended to read as follows:
 26  2    1.  On or before the twentieth day of each calendar month
 26  3 every distributor with a place of business in this state shall
 26  4 file a return with the director showing the quantity and
 26  5 wholesale sales price of each tobacco product brought, or
 26  6 caused to be brought, into this state for sale; and made,
 26  7 manufactured, or fabricated in this state for sale in this
 26  8 state, during the preceding calendar month.  Every licensed
 26  9 distributor outside this state shall in like manner file a
 26 10 return showing the quantity and wholesale sales price of each
 26 11 tobacco product shipped or transported to retailers in this
 26 12 state to be sold by those retailers, during the preceding
 26 13 calendar month.  Returns shall be made upon forms furnished
 26 14 and prescribed by the director and shall contain other
 26 15 information as the director may require.  Each return shall be
 26 16 accompanied by a remittance for the full tax liability shown
 26 17 on the return, less a discount as fixed by the director not to
 26 18 exceed five percent of the tax.  Within two three years after
 26 19 the return is filed or within two three years after the return
 26 20 became due, whichever is later, the department shall examine
 26 21 it, determine the correct amount of tax, and assess the tax
 26 22 against the taxpayer for any deficiency.  The period for
 26 23 examination and determination of the correct amount of tax is
 26 24 unlimited in the case of a false or fraudulent return made
 26 25 with the intent to evade tax, or in the case of a failure to
 26 26 file a return.
 26 27    The two-year three-year period of limitation may be
 26 28 extended by a taxpayer by signing a waiver agreement form to
 26 29 be provided by the department.  The agreement must stipulate
 26 30 the period of extension and the tax period to which the
 26 31 extension applies.  The agreement must also provide that a
 26 32 claim for refund may be filed by the taxpayer at any time
 26 33 during the period of extension.
 26 34    6.  On or before the twentieth day of each calendar month,
 26 35 every consumer who, during the preceding calendar month, has
 27  1 acquired title to or possession of tobacco products for use or
 27  2 storage in this state, upon which tobacco products the tax
 27  3 imposed by section 453A.43 has not been paid, shall file a
 27  4 return with the director showing the quantity of tobacco
 27  5 products so acquired.  The return shall be made upon a form
 27  6 furnished and prescribed by the director, and shall contain
 27  7 other information as the director may require.  The return
 27  8 shall be accompanied by a remittance for the full unpaid tax
 27  9 liability shown by it.  Within two three years after the
 27 10 return is filed or within two three years after the return
 27 11 became due, whichever is later, the department shall examine
 27 12 it, determine the correct amount of tax, and assess the tax
 27 13 against the taxpayer for any deficiency.  The period for
 27 14 examination and determination of the correct amount of tax is
 27 15 unlimited in the case of a false or fraudulent return made
 27 16 with the intent to evade tax, or in the case of a failure to
 27 17 file a return.
 27 18    Sec. 49.  Section 453B.3, Code 2003, is amended by adding
 27 19 the following new unnumbered paragraph:
 27 20    NEW UNNUMBERED PARAGRAPH.  All excise taxes collected under
 27 21 this chapter by a dealer or any individual are deemed to be
 27 22 held in trust for the state of Iowa.
 27 23    Sec. 50.  Section 633.479, unnumbered paragraph 2, Code
 27 24 Supplement 2003, is amended to read as follows:
 27 25    An order approving the final report and discharging the
 27 26 personal representative shall not be required if all
 27 27 distributees otherwise entitled to notice are adults, under no
 27 28 legal disability, have signed waivers of notice as provided in
 27 29 section 633.478, have signed statements of consent agreeing
 27 30 that the prayer of the final report shall constitute an order
 27 31 approving the final report and discharging the personal
 27 32 representative, and if the statements of consent are dated not
 27 33 more than thirty days prior to the date of the final report,
 27 34 and if compliance with sections 422.27 and 450.58 have been
 27 35 fulfilled and receipts, sworn statements, and certificates, as
 28  1 any of these that are required, are on file.  In those
 28  2 instances final order shall not be required and the prayer of
 28  3 the final report shall be considered as granted and shall have
 28  4 the same force and effect as an order of discharge of the
 28  5 personal representative and an order approving the final
 28  6 report.
 28  7    Sec. 51.  Sections 2A.8 and 48A.24, Code Supplement 2003,
 28  8 are repealed.
 28  9    Sec. 52.  REFUNDS.  Refunds of taxes, interest, or
 28 10 penalties which arise from claims resulting from the amendment
 28 11 to section 422.42, subsection 6, in this Act, for the
 28 12 noninclusion of trade discounts in computing gross receipts on
 28 13 sales occurring between January 1, 1997, and the effective
 28 14 date of the section amending section 422.42, subsection 6, in
 28 15 this Act, shall be limited to twenty-five thousand dollars in
 28 16 the aggregate and shall not be allowed unless refund claims
 28 17 are filed prior to October 1, 2004, notwithstanding any other
 28 18 provision of law.  If the amount of claims totals more than
 28 19 twenty-five thousand dollars in the aggregate, the department
 28 20 of revenue shall prorate the twenty-five thousand dollars
 28 21 among all claimants in relation to the amounts of the
 28 22 claimants' valid claims.
 28 23    Sec. 53.  EFFECTIVE DATE AND RETROACTIVE APPLICABILITY
 28 24 PROVISIONS.
 28 25    1.  The section amending section 422.42, subsection 6, in
 28 26 this Act, being deemed of immediate importance, takes effect
 28 27 upon enactment and applies retroactively to January 1, 1997.
 28 28    2.  The section amending section 422.42, subsection 6, in
 28 29 this Act is void on and after July 1, 2004.
 28 30    3.  The section providing for sales and use tax refunds in
 28 31 this Act ceases to apply to any refund claims filed after
 28 32 September 30, 2004.  
 28 33 
 28 34 
 28 35                                                             
 29  1                               JEFFREY M. LAMBERTI
 29  2                               President of the Senate
 29  3 
 29  4 
 29  5                                                             
 29  6                               CHRISTOPHER C. RANTS
 29  7                               Speaker of the House
 29  8 
 29  9    I hereby certify that this bill originated in the Senate and
 29 10 is known as Senate File 2296, Eightieth General Assembly.
 29 11 
 29 12 
 29 13                                                             
 29 14                               MICHAEL E. MARSHALL
 29 15                               Secretary of the Senate
 29 16 Approved                , 2004
 29 17 
 29 18 
 29 19                                
 29 20 THOMAS J. VILSACK
 29 21 Governor
     
Text: SF02295                           Text: SF02297
Text: SF02200 - SF02299                 Text: SF Index
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