Taxation Legislation

SENATE FILE 2305 - Tax Administration and Related Matters

SENATE FILE 2318 - Taxation of Insurance Premiums, Assessments, and Fees and Health Service Corporation Subscriber Contract Payments

SENATE FILE 2321 - Sales and Use Taxes - Miscellaneous Provisions

HOUSE FILE 2035 - State Historic Property Rehabilitation Tax Credit

HOUSE FILE 2116 - Internal Revenue Code References and Income Tax Provisions

HOUSE FILE 2584 - Property Taxation - Vineyard Real Estate and Buildings

HOUSE FILE 2585 - Sales and Use Taxes - Legislative Service Bureau Sales and On-Line Computer Service Access Charges

HOUSE FILE 2621 - Investment Tax Credit - Farmers' Cooperative Members - VETOED BY THE GOVERNOR

HOUSE FILE 2622 - Tax Administration - Additional Related Matters

Related Legislation

SENATE FILE 335 - Sales and Use Taxes on Livestock - Feed, Feed Supplements, and Additives for Farm Deer and Bison

SENATE FILE 2228 - School Finance - Use of Physical Plant Equipment Levy Moneys

SENATE FILE 2275 - Substantive Code Corrections

SENATE FILE 2293 - Animal Feeding Operations and Environmental Regulation

SENATE FILE 2326 - Appropriations - Miscellaneous Provisions, Reductions, Transfers, and Other Matters

HOUSE FILE 2078 - Business Growth and Development Incentives - Seed and Venture Capital Investments - Small Business Income Allocation

HOUSE FILE 2246 - Property Tax and Vehicle Registration Procedures

HOUSE FILE 2271 - Investment Tax Credits - Qualifying Businesses - Community-Based Seed Capital Funds

HOUSE FILE 2378 - Enterprise Zones

HOUSE FILE 2448 - Fire Protection or Emergency Medical Services - Disbursement of Township Taxes for Municipal Services

HOUSE FILE 2472 - Elections and Voter Registration

HOUSE FILE 2531 - Iowa Trust Code Revisions

HOUSE FILE 2586 - Venture Capital Fund Investment Tax Credits

HOUSE FILE 2591 - Resident Hunting License Fee - Pheasant and Quail Restoration

HOUSE FILE 2592 - Start-Up Businesses - Taxable Income Deferment

HOUSE FILE 2617 - Regulation of Milk and Milk Products

HOUSE FILE 2620 - Farmers Markets

HOUSE FILE 2623 - Compensation for Public Employees and Additional Provisions

HOUSE FILE 2625 - Miscellaneous Appropriations, Reductions, Transfers, and Other Provisions - Fiscal Year 2001-2002 - SECOND EXTRAORDINARY SESSION

SENATE FILE 2305 - Tax Administration and Related Matters Full Text of Bill
By Committee on Ways and Means.

This Act amends various tax provisions of state law to do the following:

1. Make the inheritance tax and income tax consistent by providing for an income tax exemption whether an annuity is paid out in installment payments or in a lump sum payment.
2. Eliminate references to the specific type of withholding tax forms in the penalty provision for failure to file, or falsifying these forms.
3. Apply sales tax to executive search agencies whether or not the agency is licensed.
4. Add the adjective "nonprofit" to private educational institutions for purposes of the sales tax exemption for certain sales where the proceeds are used for or by an educational institution.
5. Require consolidated filers to provide sales tax information by business location. This information will assist in preparing accurate sales and use tax statistical reports and in preparing estimates for local jurisdictions that are considering imposing local option sales and use taxes.
6. Repeal obsolete Code sections pertaining to the Special Reserve Fund.
7. Add language that the use tax is payable by the user on services as well as property for each quarterly period. This makes the provision consistent with another in the use tax law that imposes the tax on services and makes the user liable for the tax until the tax has been paid.
8. Repeal the Code chapter on the property taxation of express companies, as there are no longer any express companies in Iowa. Code sections are amended to strike references to that Code chapter.
9. Keep the tax rate for liquefied petroleum gas at 20 cents per gallon. 2001 Iowa Acts, Chapter 123, provides for a variable tax rate for motor fuel beginning July 1, 2002. The statute states that the tax for liquefied petroleum gas is the same as motor fuel. It would create administrative problems for the Department of Revenue and Finance as well as taxpayers if the tax rate for liquefied petroleum gas was not a set amount.
10. Authorize the Director of Revenue and Finance to require that transportation reports be filed by electronic transmission. The director has this authority for other fuel tax reports.
11. Change the time period from one year to three years for a taxpayer to claim a refund of fuel taxes paid to be consistent with the time period the Department of Revenue and Finance has to audit the taxpayer's records. This would be consistent with requirements for other tax types administered by the department. Also, the Act provides that a refund claim for fuel taxes does not expire if a refund is not claimed within one year, but rather expiration occurs after three years.

SENATE FILE 2318 - Taxation of Insurance Premiums, Assessments, and Fees and Health Service Corporation Subscriber Contract Payments Full Text of Bill
By Committee on Ways and Means.

This Act phases in a reduction of the state's gross premiums tax rate from 2 percent to 1 percent for insurance companies and associations, including mutual health insurance corporations, HMOs, and organized health delivery systems. For life and health insurance companies and associations, the tax rate for the 2003 calendar year is 1.75 percent, for the 2004 calendar year the tax rate is 1.50 percent, for the 2005 calendar year the tax rate is 1.25 percent, and beginning with the 2006 calendar year the tax rate is 1 percent. For insurance companies and associations other than life and health insurance companies and associations, the tax rate for the 2004 calendar year is 1.75 percent, for the 2005 calendar year the tax rate is 1.50 percent, for the 2006 calendar year the tax rate is 1.25 percent, and beginning with the 2007 calendar year the tax rate is 1 percent.

Under prior law, if the previous year's liability is $1,000 or more, the company must prepay 50 percent of that amount by June 1. The Act increases the amount of prepaid tax liability. Beginning with the 2003 calendar year, the additional amount for life and health insurance companies and associations is 4 percent of the previous year's liability, for the 2004 calendar year it is 21 percent, and for the 2005 and subsequent calendar years it is 50 percent. For insurance companies and associations other than life and health, the Act increases the amount of prepaid tax liability. Beginning with the 2003 calendar year, the additional amount is 11 percent of the previous year's liability, for the 2004 calendar year it remains at 11 percent, for the 2005 calendar year it is 26 percent, and for the 2006 and subsequent calendar years it is 50 percent. This additional prepayment amount is due by June 30.

The Act also requires the Department of Revenue and Finance and the Office of the Auditor of State to study the impact that this Act will have on the balance of the General Fund of the State, especially the impact on FY 2005-2006. The study requirement provision takes effect May 9, 2002.

SENATE FILE 2321 - Sales and Use Taxes - Miscellaneous Provisions Full Text of Bill
By Committee on Ways and Means.

This Act relates to the state sales and use taxes by requiring the Department of Revenue and Finance to begin collecting data concerning the extent of electronic commerce within Iowa and the net gains or losses in tax revenues as a result of electronic commerce.

The Act also strikes the repeal of current law that provides that, for the sales tax, a sale of tangible personal property does not occur if the transaction is delivered digitally, electronically, or utilizing cable, or by radio waves, microwaves, or fiber optics, and, for the use tax, that tangible personal property does not include any substance delivered digitally, electronically, or utilizing cable, or by radio waves, microwaves, or fiber optics. The repeal would have taken effect December 31, 2002.

The Act establishes a committee of delegates to enter into multistate discussions on behalf of Iowa on the question of simplifying and modernizing the sales and use taxes.

The Act takes effect May 10, 2002.

HOUSE FILE 2035 - State Historic Property Rehabilitation Tax Credit Full Text of Bill
By Grundbert, Hatch, Hahn, Dotzler, Tyrrell, D. Taylor, Sievers, Bukta, Van Fossen, Larkin, Dix, Stevens, Eichhorn, Atteberry, Boal, Winckler, Cormack, Osterhaus, Hoffman, Frevert, Elgin, Smith, Jones, Millage, Warnstadt, Tymeson, May, Baudler, Petersen, Broers, Ford, Boddicker, Fallon, Finch, Mascher, Dolecheck, Foege, Metcalf, Richardson, Rayhons, Quirk, Jenkins, Murphy, Jacobs, Connors, Johnson, Schrader, Heaton, and Myers.

This Act provides that the historic property rehabilitation tax credit may be applied against the franchise tax and insurance premiums tax. Under present law, the tax credit is only available for purposes of the individual and corporate income taxes. In addition, the Act provides that for purposes of individual and corporate income taxes and franchise tax, the increase in the basis of the rehabilitated property that would otherwise result from the rehabilitation costs is to be reduced by the amount of the credit. Prior law prohibited the deduction of all of the rehabilitation expenses.

The Act takes effect February 21, 2002, and applies retroactively to January 1, 2001, for tax years beginning on or after that date.

HOUSE FILE 2116 - Internal Revenue Code References and Income Tax Provisions Full Text of Bill
By Committee on Ways and Means.

This Act updates the references to the Internal Revenue Code to make the federal income tax revisions enacted by Congress in 2001 applicable for Iowa income tax purposes. Code Sections 15.335, 15A.9, 422.10, and 422.33 are amended to update the Iowa Code references to the state research activities credit for individuals, corporations, corporations in economic development areas, and corporations in quality jobs enterprise zones to include the 2001 federal changes in the research activities credit.

The Act amends Code Section 422.7 to provide that a provision enacted in 2001 for capital gains from installment sales for taxpayers on the accrual accounting basis is not applicable for tax years beginning on or after January 1, 2002. This provision brings the Iowa Code into conformity with the Internal Revenue Code.

The Act amends Code Section 422.8 relating to reciprocal agreements entered into by the Director of Revenue and Finance with tax administrative agencies of other states. The amendment to the section provides that a reciprocal agreement entered into on or after April 4, 2002, shall not take effect until it has been authorized by the General Assembly and approved by the Governor. A reciprocal agreement in effect on or after January 1, 2002, shall not be terminated by the State of Iowa unless the termination has been authorized by the General Assembly and approved by the Governor.

The Act amends Code Section 422.9 to provide that an individual who receives a federal rate reduction credit in 2002 will not have to exclude the amount of the credit as part of the federal income tax deduction on the 2002 Iowa income tax return.

The Act amends Code Section 422.21 to correct an erroneous Code reference for the Iowa innocent spouse provision.

All of the provisions in the Act updating references to the Internal Revenue Code are retroactively applicable to January 1, 2001, for tax years beginning on or after that date. The provision repealing the adjustment to net income for capital gains from installment sales and the provision correcting the innocent spouse Code reference are retroactively applicable to January 1, 2002, for tax years beginning on or after that date. The provision relating to treatment of the federal rate reduction credit received is retroactively applicable to January 1, 2002, for tax years beginning in the 2002 calendar year.

The Act takes effect April 4, 2002.

HOUSE FILE 2584 - Property Taxation - Vineyard Real Estate and Buildings Full Text of Bill
By Committee on Ways and Means.

This Act provides that, for purposes of property taxation, agricultural property includes the real estate of a vineyard and buildings used in connection with the vineyard, including buildings used for processing wine if the buildings are located on the same parcel as the vineyard.

The Act applies retroactively to assessment years beginning on or after January 1, 2002.

HOUSE FILE 2585 - Sales and Use Taxes - Legislative Service Bureau Sales and On-Line Computer Service Access Charges Full Text of Bill
By Committee on Ways and Means.

This Act exempts sales by the Legislative Service Bureau and its Legislative Information Office of mementos and other items relating to Iowa's history, the General Assembly, and State Capitol when made on state property.

The Act provides that if a retailer failed to collect state sales and use taxes and any local sales and services taxes from purchasers of the retailer's access to on-line computer services (Internet) because of written advice from the Department of Revenue and Finance and had these taxes abated, then such taxes shall not be collected from the purchaser. The Act also provides that if these taxes were paid, the taxes, with any penalty or interest paid, shall be refunded to the eligible purchasers by October 1, 2002.

The Act takes effect April 22, 2002, and the abatement provisions apply to taxes that were due from charges paid for access to on-line computer services on or after January 1, 1996.

HOUSE FILE 2621 - Investment Tax Credit - Farmers' Cooperative Members - VETOED BY THE GOVERNOR Full Text of Bill
By Committee on Ways and Means.

Under prior law, a farmers' cooperative that owns an ethanol-producing facility which is not required to file an Iowa corporate income tax return is entitled to an investment tax credit under the New Jobs and Income Program. This tax credit is claimed by the members. If the farmers' cooperative must file an Iowa corporate income tax return, all of the credit must be used by the cooperative. This bill would have allowed farmers' cooperatives that file Iowa corporate income tax returns to transfer all or a portion of the tax credit to their members. The bill also would have allowed farmers' cooperatives that file partnership returns for federal tax purposes to pass through the investment credit to their members.

The bill also would have allowed farmers' cooperatives that file as partnerships for federal tax purposes to elect to have the investment tax credit acquired for developing building space in an enterprise zone to be passed through to the cooperatives' members.

The bill would have applied retroactively to January 1, 2002, for tax years beginning on or after that date.

HOUSE FILE 2622 - Tax Administration - Additional Related Matters Full Text of Bill
By Committee on Ways and Means.

This Act amends various provisions of state and local laws and provides abatements for some taxes. The Act does the following:

1. Allows a taxpayer to file for an urban revitalization property tax exemption up to two years after the improvements are first assessed for taxation and still receive the exemption for the total number of years allowed in the exemption schedule. This applies retroactively to January 1, 2001, for claims for exemption made on or after that date.
2. Provides for a new collection method for the Department of Revenue and Finance. The new method is an administrative wage assignment, which is an expedited means to collect outstanding debts owed to the State of Iowa. This collection method is to be used by the department after all administrative remedies are waived or exhausted by the obligor. An administrative wage assignment allows the department to use compensation that is owed to an obligor for payment of wages to be applied against a debt owed by the obligor to the state. The method is similar in concept to the administrative levy process already authorized.
3. Amends the powers and duties of the Director of Revenue and Finance regarding the audit of claims. The change will require the director to set rules and procedures for the preaudit of claims by an agency or organization. The change also allows the department to refuse any incomplete or incorrect claims and to audit claims as determined by the director.
4. Authorizes the department to enter into agreements with an Indian tribe to collect and distribute or refund a state tax or a tribal tax. If the department collects and distributes a tribal tax on behalf of the Indian tribe, the department may charge a mutually agreed-upon administrative fee. However, the agreement is preempted by an Act of Congress that regulates the collection of state taxes covered by the agreement.
5. Excludes from income for tax purposes withdrawals from qualified retirement plan accounts made during the tax year the member of the Iowa National Guard or U.S. reserve forces is called to active duty. This provision applies beginning with the 2002 tax year.
6. Authorizes the Director of Revenue and Finance, in cooperation with the Department of Management, to change the filing and remittance thresholds as they relate to income, sales and use taxes if in the best interest of the state and the taxpayer.
7. Changes the method of imposing and refunding the sales and use taxes on building materials, supplies, and equipment used in a construction project for exempt entities. Under prior law, contractors were considered the consumer of building materials, supplies, and equipment in the performance of construction contracts and were required to pay the appropriate sales or use tax. The tax was paid even if the construction contract was with a state or local government agency, educational institution, or other exempt entity. The agency, institution or other entity would receive a refund from the state in the amount of sales and use taxes paid. The changes provide for the avoidance of the original payment of the sales or use tax by authorizing the tax-exempt entity to issue an exemption certificate so that the contractor may purchase the building materials, supplies, and equipment tax-free, or in the case where a contractor is a retailer and does not pay the tax at the time of purchase, the contractor would not pay the tax when the materials, supplies and equipment are withdrawn from inventory. If the materials, supplies and equipment are not used for the project of the exempt entity, the contractor may be subject to the penalties for perjury. The changes also provide that when an entity that is subject to public bidding laws advertises for bids, the notice to bidders must contain a provision that a tax exemption certificate for the purchase of building materials, supplies, and equipment will be issued. These changes take effect January 1, 2003, and apply to construction contracts entered into on or after that date.
8. Exempts from the sales and use taxes imposed on service charges of financial institutions those surcharges assessed with regard to nonproprietary ATM transactions. This provision is repealed June 30, 2003.
9. Exempts from state sales and use taxes the sales and rentals of tangible property and furnishing of services to community action agencies for use by the agencies.
10. Provides the director with additional time to determine and notify cities and counties of the estimated amount of local option taxes they will be receiving in the fiscal year.
11. Specifies the appeal process for the taxpayer if the director disallows a claim for the homestead property tax credit or military service property tax exemption.
12. Increases the income level from $25,000 to $35,000 below which a disabled veteran receives a homestead credit for the entire amount of tax on the homestead purchased pursuant to federal law related to disabled veterans. This provision applies retroactively to homestead claims filed or on file on or after January 1, 2002.
13. Adds members of the U.S. Coast Guard as eligible veterans for purposes of receiving the military service property tax exemption.
14. Provides that the operation of bingo games on property of a veterans organization does not affect the property tax exemption of the property if the proceeds in excess of expenses are used for the legitimate purposes of the organization.
15. Defines "biofuel" as an oxygenated product derived from soybean oil, vegetable oil, or animal fats that can be used in diesel engines or aircraft and specifies that any biofuel product or biofuel blend with diesel fuel is a special fuel for purposes of the tax on fuels. Coordinating changes to effectuate the tax on biofuel are also made in the Act.
16. Imposes a penalty for failure to file required reports against persons transporting fuel, operating storage facilities, or operating refineries in Iowa. The Department of Revenue and Finance uses these reports to track fuel movements, but they are often not filed because there is no penalty for failure to do so.
17. Changes the definition of "mandatory charge" under the Iowa Car Rental and Collision Damage Waiver Act to exclude airport-imposed fees from the definition if the amount of the fee is clearly and conspicuously disclosed and the customer is informed of the amount, and exclude airport-imposed fees on gross receipts or airport access fees.
18. Eliminates the director's authority to withhold insurance premiums payable for other than a state-sponsored insurance program at the request of state employee and to remit the amount withheld to the insurance company designated by the employee.
19. Extends the deadline by which a statement of objects and uses must be filed for certain organizations and institutions claiming a property tax exemption. The filing deadline is extended from February 1 to October 1, but only for the 2002 assessment year, which is for taxes due and payable in the fiscal year beginning July 1, 2003. The organizations and institutions include veterans organizations and literary, scientific, charitable, benevolent, agricultural, and religious institutions. The provision takes effect May 6, 2002.
20. Provides for the abatement of property taxes on the land and buildings of a religious institution located in Linn County that are payable in FY 2001-2002. This provision applies retroactively to July 1, 2001.
21. Provides for the abatement of sales and use taxes and local sales and services taxes owed by foundries located in Lee County or Jefferson County on purchases used by the foundry in making patterns, molds or dies if the purchase was made between July 1, 1997, and May 6, 2002. Provision is made for refunds if the state and local taxes have been paid and if claims are filed by October 1, 2002.
22. Creates a pension task force to study the creation of a pension system for volunteer fire fighters. The report of the task force is to be submitted to the General Assembly by January 1, 2003.

SENATE FILE 335 - Sales and Use Taxes on Livestock - Feed, Feed Supplements, and Additives for Farm Deer and Bison
SEE AGRICULTURE.
   This Act provides that livestock entitled to exemptions under retail sales tax provisions include farm deer, bison, and ostriches, rheas and emus. In addition, the Act exempts from sales and use taxes the sale of feed to be used for consumption by farm deer and bison.

SENATE FILE 2228 - School Finance - Use of Physical Plant Equipment Levy Moneys
SEE EDUCATION.
   This Act relates to the purposes for which revenue generated by the physical plan and equipment levy can be used, authorizing leases or lease-purchase agreements regarding the purchase of equipment and technology, and lowers the threshold regarding the dollar amount a purchase must exceed.

SENATE FILE 2275 - Substantive Code Corrections
SEE STATE GOVERNMENT.
   This Act contains statutory corrections that adjust language to reflect current practices, insert earlier omissions, delete redundancies and inaccuracies, delete temporary language, resolve inconsistencies and conflicts, update ongoing provisions, or remove ambiguities. Changes made include the following: a reference to S corporations is updated in language relating to the refunding of unused corporate tax credits for certain new investments and language relating to the tax return to which those tax credit claims must be attached is clarified; language pertaining to tax exemptions that may be claimed for the value of certain property located within enterprise zones is clarified; a reference to the National Livestock and Meat Board and the Pork Industry Group is deleted from language relating to the assessment on pork producers; language relating to petitions regarding the issuance of bonds for storm water drainage and bonds secured by revenues derived from the local hotel and motel tax is clarified; and language relating to a list compiled by the county auditor of all tracts of agricultural land entitled to tax credit is clarified. In the Income, Sales, Services, and Franchise Taxes chapter, a clarification is also made in provisions relating to the collection of and transfer of revenue from the tax on sales of motor vehicle fuel. In the Local Option Taxes chapter, a technical change is made in language relating to notice of the results of the election on the question of imposition of a tax. An internal reference to the Indian Housing Authority property tax exemption is added to language regarding filing a claim for exemption, and a reference to the Iowa Administrative Procedure Act is clarified in a provision regarding revocation of property tax exemptions. Language describing acquisitions that constitute a "major addition" for purposes of taxation of electricity and natural gas providers is clarified. The use of the language describing sweepings of tobacco in the definition of "tobacco product" is conformed in the Cigarette and Tobacco Taxes chapter.

SENATE FILE 2293 - Animal Feeding Operations and Environmental Regulation
SEE AGRICULTURE.
   This Act amends provisions in several Code chapters, and principally Code Chapter 455B, regulating animal feeding operations regulated by the Department of Natural Resources, including confinement feeding operations. The Act provides for fees and appropriations to the department for purposes of administering and enforcing regulations affecting animal feeding operations. The moneys are deposited into an Animal Agriculture Compliance Fund established in the Act. The Act also amends provisions in the Manure Storage Indemnity Fund, and transfers moneys from the Manure Storage Indemnity Fund to the Animal Agriculture Compliance Fund. The Act provides for restitution by persons liable for polluting state waters and for the deposit of moneys collected into the State Fish and Game Protection Fund. The Act contains a number of effective dates and provides for the Act's retroactive applicability.

SENATE FILE 2326 - Appropriations - Miscellaneous Provisions, Reductions, Transfers, and Other Matters
SEE APPROPRIATIONS.
   This Act provides fiscal year 2002-2003 appropriations from the General Fund of the State to the executive and judicial branches of state government, reduces or limits standing appropriations, and transfers appropriations. The Act is organized into divisions corresponding to the General Assembly's joint appropriations subcommittees and, although a large proportion of the Act was item vetoed by the Governor, a number of tax-related provisions were approved. The approved provisions address appropriations for state aid for schools and other measures affecting state and local taxation, and place limitations on standing appropriations for the homestead property tax credit and other property tax replacement measures.

HOUSE FILE 2078 - Business Growth and Development Incentives - Seed and Venture Capital Investments - Small Business Income Allocation
SEE ECONOMIC DEVELOPMENT.
   This Act authorizes the issuance of a tax credit against personal and corporate income tax, the franchise tax for financial institutions, the insurance premium tax, and the moneys and credits tax for credit unions for investments in the Iowa Fund of Funds, which is created in the Act. The Act also amends the allocation to Iowa, for purposes of the state individual income tax, of income earned by an S corporation that is distributed to a shareholder to pay federal income tax.

HOUSE FILE 2246 - Property Tax and Vehicle Registration Procedures
SEE LOCAL GOVERNMENT.
   This Act changes certain administrative procedures relating to the registration of vehicles by county treasurers and the Iowa Department of Transportation and to the assessment and collection of taxes on property.

HOUSE FILE 2271 - Investment Tax Credits - Qualifying Businesses - Community-Based Seed Capital Funds
SEE ECONOMIC DEVELOPMENT.
   This Act creates a tax credit against personal income tax for investment in qualifying businesses and a tax credit against personal and corporate income tax, the franchise tax for financial institutions, the insurance premium tax, and the moneys and credits tax for credit unions for investments in community-based seed capital funds.

HOUSE FILE 2378 - Enterprise Zones
SEE ECONOMIC DEVELOPMENT.
   This Act amends the Enterprise Zone Program administered by the Department of Economic Development. The Act adds a tax credit under the housing portion of the program for insurance companies to claim against the tax on gross premiums.

HOUSE FILE 2448 - Fire Protection or Emergency Medical Services - Disbursement of Township Taxes for Municipal Services
SEE LOCAL GOVERNMENT.
   This Act allows a township to indicate on its budget that it requests a portion of its taxes be paid directly to a municipality providing fire protection service or emergency medical service to the township.

HOUSE FILE 2472 - Elections and Voter Registration
SEE ELECTIONS, ETHICS & CAMPAIGN FINANCE.
   This Act permits the county commissioner of elections to shorten voting hours for cities under 3,500 population and for the unincorporated areas voting on local option sales tax elections, and provides that all polling places voting on a local option sales tax shall have the same hours. The Act provides that election costs for a school infrastructure sales tax shall be apportioned among the school districts in the county in the ratio of the number of registered voters in each school district residing in the county to the total number of registered voters in the county. The Act takes effect January 1, 2003, and applies to elections held on or after that date.

HOUSE FILE 2531 - Iowa Trust Code Revisions
SEE CIVIL LAW, PROCEDURE & COURT ADMINISTRATION.
   This Act amends the Iowa Trust Code, including provisions regarding the terms of a trust relating to estate and gift tax consequences.

HOUSE FILE 2549 - Primary and Secondary Education - Employee Standards, Career Development, Assessment, and Remuneration
SEE EDUCATION.
   This Act makes a number of changes related to the Student Achievement and Teacher Quality Program established in 2001 under Code Chapter 284. The Act also permits a board of directors of a school district to offer an early retirement program to employees, but retains a requirement that allows the board to include the costs of the program in the district management levy when the program is offered to employees between the ages of 55 and 65.

HOUSE FILE 2586 - Venture Capital Fund Investment Tax Credits
SEE ECONOMIC DEVELOPMENT.
   This Act allows a tax credit for equity investments in venture capital funds against personal income, corporate income, franchise, insurance premium, and moneys and credits taxes. The Act takes effect May 8, 2002, and applies retroactively to January 1, 2002, for tax years beginning on or after that date.

HOUSE FILE 2591 - Resident Hunting License Fee - Pheasant and Quail Restoration
SEE NATURAL RESOURCES & OUTDOOR RECREATION.
   This Act increases the resident hunting license fee by $4.50 commencing July 1, 2002.

HOUSE FILE 2592 - Start-Up Businesses - Taxable Income Deferment
SEE ECONOMIC DEVELOPMENT.
   This Act provides a process by which certain start-up businesses may defer taxable income. The Act takes effect April 22, 2002, and is retroactively applicable to January 1, 2002.

HOUSE FILE 2617 - Regulation of Milk and Milk Products
SEE AGRICULTURE.
   This Act amends a number of provisions relating to the regulation of milk and milk products under Code Chapter 192, referred to as the "Iowa Grade 'A' Milk Inspection Law," and Code Chapter 194, regulating grades of milk other than grade "A" milk. The Act amends Code Section 192.111 and related sections referring to annual licenses issued by the Department of Agriculture and Land Stewardship to milk plants, transfer stations, receiving stations, milk haulers, milk graders, and bulk milk tankers. The Act changes the term "license" to "permit," provides that the permits are valid for two years, and doubles the current fees. The Act provides for a staggered implementation of the revised fee system. The Act also creates new Code Section 194.3A, which requires the department to issue and renew permits under Code Chapter 194 for milk haulers, milk graders, and operators of bulk milk tankers. A person is not required to obtain a permit under Code Chapter 194 if the person has obtained the same permit under Code Chapter 192. The Act repeals a number of sections in both Code chapters that provide for regulation, licensing and fees. The Act takes effect May 2, 2002, and is applicable on or after July 1, 2002.

HOUSE FILE 2620 - Farmers Markets
SEE AGRICULTURE.
   This Act amends Code Chapter 137F, which provides for the regulation, including the licensure, of food establishments and food processing plants. The Act amends Code Chapter 137F to specifically provide for the regulation of a farmers market as a food establishment if the farmers market sells or distributes potentially hazardous food. The Act provides that a farmers market where potentially hazardous food is sold or distributed is subject to one seasonal license fee of $100 for each vendor on a countywide basis. The Act takes effect May 2, 2002.

HOUSE FILE 2623 - Compensation for Public Employees and Additional Provisions
SEE APPROPRIATIONS.
   This Act relates to compensation and benefits for public officials and employees, county mental health allowed growth, regulatory and other related matters of the state, and makes and reduces appropriations. The Act also reduces the total amount of Accelerated Career Education Program job credits allowed all employers during FY 2002-2003 from $6 million to $3 million.

HOUSE FILE 2625 - Miscellaneous Appropriations, Reductions, Transfers, and Other Provisions - Fiscal Year 2001-2002 - SECOND EXTRAORDINARY SESSION.
SEE APPROPRIATIONS.
Division VII of this Act relates to tax credits under the New Jobs and Income Program and the Enterprise Zone Program. Under previous law, a farmers' cooperative that owned an ethanol-producing facility that was not required to file an Iowa corporate income tax return was entitled to a tax credit under the New Jobs and Income Program. This tax credit was claimed by the members. However, if the farmers' cooperative was required to file an Iowa corporate income tax return, all of the credit had to be used by the cooperative. This division allows a farmers' cooperative that files an Iowa corporate income tax return to transfer all or a portion of the tax credit to its members. The division also allows cooperatives that file as partnerships for federal tax purposes to elect to have the credit acquired for developing building space in an enterprise zone to pass through the credit to their members. The division applies retroactively to January 1, 2002, for tax years beginning on or after that date.