S.F. _____ Section 1. Section 423.2, subsection 11, paragraph a, 1 subparagraph (2), Code 2016, is amended to read as follows: 2 (2) Subsequent to the deposit into the general fund of 3 the state, the director shall credit an amount equal to the 4 product of the sales tax rate imposed in this section times 5 the sales price of the tangible personal property or services 6 furnished to purchasers at a baseball and softball tournament 7 facility and movie site complex meeting the qualifications of 8 section 423.4, subsection 10 , into the baseball and softball 9 tournament facility and movie site complex sales tax rebate 10 fund created under section 423.4, subsection 10 , paragraph “e” . 11 The director shall credit the moneys beginning the first day of 12 the quarter following July 1, 2012 2016 . This subparagraph is 13 repealed June 30, 2024, or thirty days following the date on 14 which sixteen million five hundred thousand dollars in total 15 rebates have been provided under section 423.4, subsection 16 10 , or thirty days following the date on which rebates cease 17 as provided in section 423.4, subsection 10 , paragraph “c” , 18 subparagraph (4), whichever is earliest . 19 Sec. 2. Section 423.2, subsection 11, paragraph b, 20 subparagraph (4), Code 2016, is amended to read as follows: 21 (4) Transfer to the baseball and softball tournament 22 facility and movie site complex sales tax rebate fund that 23 portion of the sales tax receipts described in paragraph “a” , 24 subparagraph (2), remaining after the transfers required 25 under subparagraphs (1), (2), and (3) of this paragraph “b” . 26 This subparagraph is repealed June 30, 2024, or thirty days 27 following the date on which sixteen million five hundred 28 thousand dollars in total rebates have been provided under 29 section 423.4, subsection 10 , or thirty days following the date 30 on which rebates cease as provided in section 423.4, subsection 31 10 , paragraph “c ”, subparagraph (4), whichever is earliest . 32 Sec. 3. Section 423.4, subsection 10, Code 2016, is amended 33 to read as follows: 34 10. a. For purposes of this subsection : 35 -1- LSB 6009XC (2) 86 mm/sc 1/ 6

S.F. _____ (1) “Baseball and softball tournament facility and movie 1 site” means a baseball and softball tournament complex and 2 tourist destination, which facility is located on a maximum of 3 two hundred seventy-nine acres, located inside or within three 4 miles of the city limits of a city with a population of at least 5 four thousand but not more than five thousand five hundred 6 residents, which city is located in a county with a population 7 of at least ninety-three thousand but not more than one hundred 8 thousand residents and where the construction on the baseball 9 and softball tournament facility commenced not later than July 10 1, 2013, and the cost of the construction upon completion was 11 at least thirty-eight million dollars. “Baseball and softball 12 complex” means a baseball and softball complex located in this 13 state that has a project completion date that is after July 1, 14 2016, and that has a cost of construction upon completion that 15 is at least ten million dollars. 16 (2) “Change of control” means any of the following: 17 (a) Any change in the ownership of the original or any 18 subsequent legal entity that is the owner or operator of the 19 baseball and softball tournament facility and movie site 20 complex such that more than fifty-one percent of the equity 21 interests or voting interest in the legal entity cease ceases 22 to be owned by individuals who are residents of Iowa, an Iowa 23 corporation, or combination of both. 24 (b) The original owners of the legal entity that is the 25 owner or operator of the baseball and softball tournament 26 facility and movie site complex shall collectively cease to 27 own or control more than fifty percent of the voting equity 28 interests or voting interest of such legal entity or shall 29 otherwise cease to have effective control of such legal entity. 30 (3) “Iowa corporation” means a corporation incorporated 31 under the laws of Iowa where more than fifty-one percent of the 32 corporation’s equity interests or voting interest are owned or 33 controlled by individuals who are residents of Iowa. 34 (4) “Owner or operator” means a for-profit legal entity 35 -2- LSB 6009XC (2) 86 mm/sc 2/ 6

S.F. _____ where more than fifty-one percent of its equity interests are 1 or voting interest is owned or controlled by individuals who 2 are residents of Iowa, an Iowa corporation, or combination 3 of both and that is the owner or operator of a baseball and 4 softball tournament facility and movie site complex and is 5 primarily a promoter of baseball and or softball tournaments , 6 or both . 7 (5) “Population” means the population based upon the 2010 8 certified federal census. “Project completion date” means the 9 date on which a baseball and softball complex is placed into 10 service. 11 b. The owner or operator of a baseball and softball 12 tournament facility and movie site complex may apply to the 13 department for a rebate of sales tax imposed and collected 14 by retailers upon sales of any goods, wares, merchandise, 15 admission tickets, or services furnished to purchasers at 16 the baseball and softball tournament facility and movie site 17 complex . 18 c. The rebate may be obtained only in the following amounts 19 and manner and only under the following conditions: 20 (1) On forms furnished by the department within the time 21 period provided by the department by rule, which time period 22 shall not be longer than quarterly. 23 (2) The owner or operator shall provide information as 24 deemed necessary by the department. 25 (3) The transactions for which sales tax was collected and 26 the rebate is sought occurred on or after January 1, 2014, but 27 before January 1, 2024 the baseball and softball complex’s 28 project completion date but before the date which is ten years 29 after that project completion date . However, not more than 30 two million five hundred thousand dollars in rebates shall be 31 provided to any one baseball and softball complex, and not more 32 than sixteen million five hundred thousand dollars in total 33 rebates shall be provided pursuant to this subsection . 34 (4) Notwithstanding subparagraph (3), the rebate of 35 -3- LSB 6009XC (2) 86 mm/sc 3/ 6

S.F. _____ sales tax to a baseball and softball complex shall cease for 1 transactions occurring on or after the date of the change of 2 control of the baseball and softball tournament facility and 3 movie site complex . 4 d. To assist the department in determining the amount of the 5 rebate, the owner or operator shall identify to the department 6 retailers located at the baseball and softball tournament 7 facility and movie site complex who will be collecting sales 8 tax. The department shall verify such identity and ensure 9 that all proper permits have been issued. For purposes of 10 this subsection , advance ticket and admissions sales shall be 11 considered occurring at the baseball and softball tournament 12 facility and movie site complex regardless of where the 13 transactions actually occur. 14 e. There is established within the state treasury under 15 the control of the department a baseball and softball 16 tournament facility and movie site complex sales tax rebate 17 fund consisting of the amount of state sales tax revenues 18 transferred pursuant to section 423.2, subsection 11 , paragraph 19 “b” , subparagraph (4). An account is created within the fund 20 for each baseball and softball tournament facility and movie 21 site complex meeting the qualifications of this subsection . 22 Moneys in the fund shall only be used to provide rebates of 23 state sales tax pursuant to this subsection , and only the state 24 sales tax revenues in the baseball and softball tournament 25 facility and movie site complex rebate fund are subject to 26 rebate under this subsection . Not more than two million five 27 hundred thousand dollars in total rebates shall be paid from 28 each baseball and softball complex’s account within the fund, 29 and not more than sixteen million five hundred thousand dollars 30 in total rebates shall be paid from the fund. Any moneys in 31 the fund which represent state sales tax revenue for which the 32 time period in paragraph “c” for receiving a rebate has expired, 33 or which otherwise represent state sales tax revenue that has 34 become ineligible for rebate pursuant to this subsection , shall 35 -4- LSB 6009XC (2) 86 mm/sc 4/ 6

S.F. _____ immediately revert to the general fund of this state. 1 f. Upon determining that the conditions and requirements 2 of this subsection and the department are met, the department 3 shall issue a warrant from the applicable account within the 4 baseball and softball tournament facility and movie site 5 complex rebate fund to the owner or operator in the amount 6 equal to the amount claimed and verified by the department. 7 g. This subsection is repealed June 30, 2024, or thirty 8 days following the date on which sixteen million five hundred 9 thousand dollars in total rebates have been provided , or thirty 10 days following the date on which rebates cease as provided in 11 paragraph “c” , subparagraph (4), whichever is the earliest . 12 The director of revenue shall notify the Iowa Code editor upon 13 occurrence of this condition. 14 EXPLANATION 15 The inclusion of this explanation does not constitute agreement with 16 the explanation’s substance by the members of the general assembly. 17 This bill modifies the rebate of state sales tax to the owner 18 or operator of a baseball and softball tournament facility and 19 movie site. 20 BACKGROUND. 2012 Iowa Acts, chapter 1098, enacted a sales 21 tax rebate to the owner or operator of a baseball and softball 22 tournament facility and movie site (facility). In order to 23 be eligible for the rebate, the facility must be located on a 24 maximum of 279 acres and located inside or within three miles 25 of the city limits of a city with a population between 4,000 26 and 5,500, which is located in a county with a population 27 between 93,000 and 100,000. Construction on the facility 28 must commence not later than July 1, 2013, and the cost of 29 construction must be at least $38 million. 30 The rebate only applies to state sales tax collected at 31 the facility between January 1, 2014, and December 31, 2023. 32 The rebate ceases if control of the facility changes. The 33 rebate provision is repealed June 30, 2024, or 30 days after a 34 total of $16.5 million has been rebated, or 30 days following 35 -5- LSB 6009XC (2) 86 mm/sc 5/ 6

S.F. _____ the change of control causing the rebates to cease, whichever 1 occurs earlier. 2 CHANGES IN BILL. The bill changes the name of the qualifying 3 “baseball and softball tournament facility and movie site” 4 to a “baseball and softball complex” (complex) and changes 5 the requirements to qualify for the rebate. A complex will 6 qualify for the rebate if it is located in this state, has 7 a project completion date that is after July 1, 2016, and 8 has construction costs of at least $10 million. “Project 9 completion date” is defined in the bill to mean the date on 10 which the complex is placed into service. 11 The bill removes the requirement that the legal entity 12 that is the owner or operator of the complex be a for-profit 13 legal entity, and further modifies the percentage-of-ownership 14 requirements for qualification as an owner or operator and 15 for the occurrence of a change of control to specify that the 16 percentage is calculated using the equity interests or voting 17 interest owned or controlled by Iowa residents. Under current 18 law, the calculation only considers equity interests owned by 19 Iowa residents. 20 The bill changes the availability of the rebate for each 21 complex to specify that the rebate only applies to sales tax 22 collected for the 10-year period beginning on or after the 23 complex’s project completion date. 24 The bill specifies that any one complex cannot receive more 25 than $2.5 million in total rebates. The bill changes the 26 repeal date of the rebate provision to provide that the rebate 27 is repealed 30 days after a total of $16.5 million has been 28 rebated. 29 -6- LSB 6009XC (2) 86 mm/sc 6/ 6