CHAPTER 235
REBATE OF IOWA SALES TAX PAID
701—235.1(423) Sanctioned automobile racetrack facilities. Effective July 1, 2005, qualifying rebates of Iowa state sales tax may be made to the owner or operator of a sanctioned automobile racetrack facility as defined in this rule for sales occurring on or after January 1, 2006, and ending June 30, 2016. This rebate program should be viewed as a pilot project as a means to increase tourism in the state. Qualifying rebates are for state sales tax only. Local option taxes are not subject to rebate under this program.
	235.1(1) Definitions.
	a. 	For the purpose of this program, prior to July 1, 2009, the following definitions apply:
“Automobile racetrack facility” means a sanctioned automobile racetrack facility located as part of a racetrack and entertainment complex, including any museum attached to or included in the racetrack facility, but excluding any restaurant, and which facility is located, on a maximum of 232 acres, in a city with a population of at least 14,500 but not more than 16,500 residents, which city is located in a county with a population of at least 35,000 but not more than 40,000 residents, and where the construction on the racetrack facility commenced not later than one year following July 1, 2005, and the cost of the construction upon completion was at least $35 million.
“Change of control” means any of the following:
	1.	Any change in the ownership of the original or any subsequent legal entity that is the owner or operator of the automobile racetrack facility such that at least 60 percent of the equity interests in the legal entity cease to be owned by individuals who are residents of Iowa, an Iowa corporation, or combination of both.
	2.	The original owners of the legal entity that is the owner or operator of the automobile racetrack facility shall collectively cease to own more than 50 percent of the voting equity interests of such legal entity or shall otherwise cease to have effective control of such legal entity.
“Iowa corporation” means a corporation incorporated under the laws of Iowa where at least 60 percent of the corporation’s equity interests are owned by individuals who are residents of Iowa.
“Owner or operator” means a for-profit legal entity where at least 60 percent of its equity interests are owned by individuals who are residents of Iowa, an Iowa corporation, or combination of both and that is the owner or operator of an automobile racetrack facility and is primarily a promoter of motor vehicle races.
“Population” means the population based upon the 2000 certified federal census.
	b. 	For the purpose of this program, on and after July 1, 2009, the following definitions apply:
“Automobile racetrack facility” means a sanctioned automobile racetrack facility located as part of a racetrack and entertainment complex, including any museum attached to or included in the racetrack facility, but excluding any restaurant, and which facility is located, on a maximum of 232 acres, in a city with a population of at least 14,500 but not more than 16,500 residents, which city is located in a county with a population of at least 35,000 but not more than 40,000 residents, and where the construction on the racetrack facility commenced not later than one year following July 1, 2005, and the cost of the construction upon completion was at least $35 million.
“Change of control” means any of the following:
	1.	Any change in the ownership of the original or any subsequent legal entity that is the owner or operator of the automobile racetrack facility such that less than 25 percent of the equity interests in the legal entity is owned by individuals who are residents of Iowa, an Iowa corporation, or combination of both.
	2.	The original owners of the legal entity that is the owner or operator of the automobile racetrack facility shall collectively cease to own at least 25 percent of the voting equity interests of such legal entity.
“Iowa corporation” means a corporation incorporated under the laws of Iowa where at least 25 percent of the corporation’s equity interests are owned by individuals who are residents of Iowa.
“Owner or operator” means a for-profit legal entity where at least 25 percent of its equity interests are owned by individuals who are residents of Iowa, an Iowa corporation, or combination of both and that is the owner or operator of an automobile racetrack facility and is primarily a promoter of motor vehicle races.
“Population” means the population based upon the 2000 certified federal census.
	235.1(2) Affidavit by owner or operator. The owner or operator of an automobile racetrack facility seeking a rebate of sales tax imposed and collected by retailers upon sales of any goods, wares, merchandise, or services furnished to purchasers at the automobile racetrack facility must file with the department the following affidavit certifying that qualifications for the rebate have been met:

Iowa Department of Revenue
Sales Tax Rebate Affidavit	
NAME OF AFFIANT
ADDRESS OF AFFIANT	<fo:wrapper font-size="10.5">*</fo:wrapper>
<fo:wrapper font-size="10.5">*</fo:wrapper>
<fo:wrapper font-size="10.5">*</fo:wrapper>
<fo:wrapper font-size="10.5">*</fo:wrapper>	AFFIDAVIT FOR SANCTIONED AUTOMOBILE RACETRACK FACILITY	
The undersigned duly swears that the named Automobile Racetrack Facility complies with criteria to be entitled to rebate of sales tax as required in Iowa Code section 423.4 as follows:
	a.	The facility is sanctioned as an automobile racetrack facility;
	b.	The sanctioned automobile racetrack facility is located as part of a racetrack and entertainment complex, including any museum attached to or included in the sanctioned automobile racetrack facility, but excluding any restaurant;
	c.	The sanctioned automobile racetrack facility has not and will not receive any grants under the community attraction and tourism program pursuant to Iowa Code chapter 15F, subchapter II, or the vision Iowa program pursuant to Iowa Code chapter 15F, subchapter III;
	d.	The sanctioned automobile racetrack facility is located on a maximum of 232 acres of Iowa land;
	e.	The sanctioned automobile racetrack facility is located in a city with a population, as defined by this rule, of at least 14,500, but not more than 16,500;
	f.	The city in which the sanctioned automobile racetrack facility is located is in a county with a population, as defined by this rule, of at least 35,000, but no more than 40,000;
	g.	Construction of the sanctioned automobile racetrack facility was commenced on or before July 1, 2006;
	h.	Cost of construction of the automobile racetrack facility upon completion is at least $35 million; and
	i.	There has not been a “change of control” as defined in the rules governing this program regarding the legal ownership or operation of the automobile racetrack facility.
The undersigned duly swears that he or she is the owner or operator of the sanctioned automobile racetrack facility or that the undersigned is the authorized representative of the sanctioned automobile racetrack facility and has the authority to sign this document. The undersigned swears that he or she has personal knowledge regarding the facts contained in this affidavit and that the statements set forth in this affidavit are true and accurate and that the sanctioned automobile racetrack facility has met all of the requirements as contained herein.
________________________________________________________________	________________
Name of Affiant 	Date
Position of Affiant
	235.1(3) Notification to the department of revenue. The owner or operator of the automobile racetrack facility will provide the department with the identity of all retailers at the automobile racetrack facility that will be collecting sales tax and are required to keep the information current. The owner or operator of the automobile racetrack facility will notify the department within ten days of the termination of a retailer from collecting sales tax at the racetrack facility. In addition, the owner or operator of the automobile racetrack facility will notify the department within ten days of the start-up of a retailer collecting sales tax at the automobile racetrack facility.
	235.1(4) Limitations. The automobile racetrack facility rebate program applies only to transactions that occur on or after January 1, 2006, but before January 1, 2016, and for which sales tax was collected. Only the state sales tax is subject to rebate. The rebate is limited to 5 percent. Local option taxes paid and collected are not subject to rebate. Rebates of sales taxes to an automobile racetrack facility are not authorized for transactions that occur on or after the date of the change of control of the automobile racetrack facility.
	235.1(5) Termination of rebate program. The rebate program for automobile racetrack facilities is a pilot program that terminates on the earliest of the following dates:
	a. 	June 30, 2016; or
	b. 	Thirty days following the date on which $12,500,000 in total rebates have been provided; or
	c. 	Thirty days following the date of the change of control of the automobile racetrack facility.
	235.1(6) Sourcing of sales. Advance ticket and admissions sales shall be considered occurring at the automobile racetrack facility regardless of where the transactions actually occur. Consequently, the state sales tax and any applicable local option tax in effect for the jurisdiction in which the automobile racetrack facility is located must be imposed.
Other types of sales eligible for rebate under this program include, but are not limited to, sales by vendors and sales at concessions, gift shops, and museums. However, sales by a restaurant on facility land are not subject to rebate.
	235.1(7) Requirements to obtain a rebate of state sales tax by the racetrack facility.
	a. 	The rebate request must be submitted to the department on the authorized department form;
	b. 	The rebate request form must be filed with the department in a timely manner, with the filing requirement being quarterly; and
	c. 	All the information requested on the rebate request form must be completed.
This rule is intended to implement Iowa Code section 423.4(5).
[ARC 9434B, IAB 3/23/11, effective 4/27/11]
701—235.2(423) Sanctioned baseball and softball tournament facility and movie site. Effective July 1, 2012, qualifying rebates of Iowa state sales tax may be made to the owner or operator of a sanctioned baseball and softball tournament facility and movie site as defined in this rule for sales occurring on or after January 1, 2014, and ending January 1, 2024. Qualifying rebates are for state sales tax only. Local option taxes are not subject to rebate under this program.
	235.2(1) Definitions. For the purpose of this program the following definitions apply:
“Change of control” means any of the following:
	1.	Any change in the ownership of the original or any subsequent legal entity that is the owner or operator of the baseball and softball tournament facility and movie site such that more than 51 percent of the equity interests in the legal entity cease to be owned by individuals who are residents of Iowa, an Iowa corporation, or combination of both.
	2.	The original owners of the legal entity that is the owner or operator of the baseball and softball tournament facility and movie site shall collectively cease to own more than 50 percent of the voting equity interests of such legal entity or shall otherwise cease to have effective control of such legal entity.
“Department” means the department of revenue.
“Iowa corporation” means a corporation incorporated under the laws of Iowa where at least 51 percent of the corporation’s equity interests are owned by individuals who are residents of Iowa.
“Owner or operator” means a for-profit legal entity where at least 51 percent of its equity interests are owned by individuals who are residents of Iowa, an Iowa corporation, or combination of both and that is the owner or operator of a baseball and softball tournament facility and movie site and is primarily a promoter of baseball and softball tournaments.
“Population” means the population based upon the 2010 certified federal census.
“Sanctioned baseball and softball tournament facility and movie site” or “facility” means a baseball and softball tournament complex and tourist destination, which facility is located on a maximum of 279 acres, located inside or within three miles of the city limits of a city with a population of at least 4,000 but not more than 5,500 residents, which city is located in a county with a population of at least 93,000 but not more than 100,000 residents and where the construction on the baseball and softball tournament facility commenced not later than one year following July 1, 2013, and the cost of the construction upon completion was at least $38 million.
	235.2(2) Affidavit by owner or operator. The owner or operator of a baseball and softball tournament facility and movie site seeking a rebate of sales tax imposed and collected by retailers upon sales of any goods, wares, merchandise, admission tickets, or services furnished to purchasers at the facility must file with the department the following affidavit certifying that qualifications for the rebate have been met:

Iowa Department of Revenue
Sales Tax Rebate Affidavit		
NAME OF AFFIANT
ADDRESS OF AFFIANT	<fo:wrapper font-size="10.5">*</fo:wrapper>
<fo:wrapper font-size="10.5">*</fo:wrapper>
<fo:wrapper font-size="10.5">*</fo:wrapper>
<fo:wrapper font-size="10.5">*</fo:wrapper>	AFFIDAVIT FOR SANCTIONED BASEBALL AND SOFTBALL TOURNAMENT FACILITY AND MOVIE SITE		

				
				
The undersigned duly swears that the named Baseball and Softball Tournament Facility and Movie Site complies with criteria to be entitled to rebate of sales tax as required in Iowa Code section 423.4 as follows:
	1.	The facility is sanctioned as a baseball and softball tournament facility and movie site;
	2.	The sanctioned baseball and softball tournament facility and movie site is located on a maximum of 279 acres of Iowa land;
	3.	The sanctioned baseball and softball tournament facility and movie site is located in a city with a population, as defined by the rules governing this program, of at least 4,000 but not more than 5,500 residents;
	4.	The city in which the sanctioned baseball and softball tournament facility and movie site is located is in a county with a population, as defined by the rules governing this program, of at least 93,000 but not more than 100,000 residents;
	5.	Construction of the sanctioned baseball and softball tournament facility and movie site was commenced on or before July 1, 2013;
	6.	Cost of construction of the sanctioned baseball and softball tournament facility and movie site upon completion is at least $38 million; and
	7.	There has not been a “change of control” as defined in the rules governing this program regarding the legal ownership or operation of the baseball and softball tournament facility and movie site.
The undersigned duly swears that he or she is the owner or operator of the sanctioned baseball and softball tournament facility and movie site or that the undersigned is the authorized representative of the sanctioned baseball and softball tournament facility and movie site and has the authority to sign this document. The undersigned swears that he or she has personal knowledge regarding the facts contained in this affidavit and that the statements set forth in this affidavit are true and accurate and that the sanctioned baseball and softball tournament facility and movie site has met all of the requirements as contained herein.
________________________________________________________________	________________
Name of Affiant 	Date
Position of Affiant
	235.2(3) Notification to the department of revenue. The owner or operator of the sanctioned baseball and softball tournament facility and movie site shall provide the department with the identity of all retailers at the facility that will be collecting sales tax and shall keep the information current. The owner or operator of the facility shall notify the department within ten days of the termination of a retailer from collecting sales tax at the facility. In addition, the owner or operator of the facility shall notify the department within ten days of the start-up of a retailer collecting sales tax at the facility.
	235.2(4) Limitations. The sanctioned baseball and softball tournament facility and movie site rebate program applies only to transactions that occur on or after January 1, 2014, but before January 1, 2024, and for which sales tax was collected. Only the state sales tax is subject to rebate. The rebate is limited to the Iowa sales tax rate. Local option taxes paid and collected are not subject to rebate. Rebates of sales taxes to a facility are not authorized for transactions that occur on or after the date of the change of control of the facility. The amount of sales tax revenues transferred from the general fund to the baseball and softball tournament facility and movie site fund is that portion of sales tax receipts remaining in the general fund after the department transfers, in the order prescribed:
	a. 	Local option sales taxes to those taxing jurisdictions imposing local option taxes;
	b. 	If the sales tax rate is increased to greater than 6 percent, an amount of sales tax equal to the amount generated by the increase in the tax rate—limited to 3/8 of 1 percent of the sales tax rate that exceeds 6 percent—to the natural resources and outdoor recreation trust fund; and
	c. 	One-sixth of the remaining sales tax revenues to the secure an advanced vision for education fund.
	235.2(5) Termination of rebate program. The rebate program for the sanctioned baseball and softball tournament facility and movie site terminates on the earliest of the following dates:
	a. 	January 1, 2024; or
	b. 	Thirty days following the date on which $16.5 million in total rebates have been provided; or
	c. 	Thirty days following the date of the change of control of the facility.
	235.2(6) Sourcing of sales. Advance ticket and admissions sales shall be considered occurring at the sanctioned baseball and softball tournament facility and movie site regardless of where the transactions actually occur. Consequently, the state sales tax and any applicable local option tax in effect for the jurisdiction in which the facility is located must be imposed on the purchase price of advance ticket and admissions sales.
Other types of sales eligible for rebate under this program include, but are not limited to, sales by vendors and sales at concessions, gift shops, and museums.
	235.2(7) Requirements to obtain a rebate of state sales tax by the sanctioned baseball and softball tournament facility and movie site.
	a. 	The rebate request must be submitted to the department on the authorized department form;
	b. 	The rebate request form must be filed quarterly with the department and in a timely manner; and
	c. 	All the information requested on the rebate request form must be completed.
This rule is intended to implement 2011 Iowa Code Supplement sections 423.2(11) and 423.4 as amended by 2012 Iowa Acts, Senate File 2329.
[ARC 0402C, IAB 10/17/12, effective 11/21/12]
[Filed 2/24/06, Notice 1/18/06—published 3/15/06, effective 4/19/06]
[Filed ARC 9434B (Notice ARC 9339B, IAB 1/26/11), IAB 3/23/11, effective 4/27/11]
[Filed ARC 0402C (Notice ARC 0295C, IAB 8/22/12), IAB 10/17/12, effective 11/21/12]