House Amendment 1616
PAG LIN
1 1 Amend House File 683, as amended, passed, and
1 2 reprinted by the House, as follows:
1 3 #1. By striking everything after the enacting
1 4 clause and inserting the following:
1 5 <DIVISION I
1 6 STATE EMPLOYEE SALARIES
1 7 Section 1. 2003 Iowa Acts, Senate File 458,
1 8 section 48, unnumbered paragraphs 1 and 2, if enacted,
1 9 are amended to read as follows:
1 10 There is appropriated from the general fund of the
1 11 state to the salary adjustment fund for distribution
1 12 by the department of management to the various state
1 13 departments, boards, commissions, councils, and
1 14 agencies, and to the state board of regents for those
1 15 persons employed at the state school for the deaf and
1 16 the Iowa braille and sight saving school, for the
1 17 fiscal year beginning July 1, 2003, and ending June
1 18 30, 2004, the amount of $28,000,000 $30,000,000, or so
1 19 much thereof as may be necessary, to fully fund annual
1 20 pay adjustments, expense reimbursements, and related
1 21 benefits implemented pursuant to the following:
1 22 Of the amount appropriated in this section,
1 23 $2,668,000 $2,818,000 shall be allocated to the
1 24 judicial branch for the purpose of funding annual pay
1 25 adjustments, expense reimbursements, and related
1 26 benefits implemented for judicial branch employees.
1 27 In distributing the remainder of the amount
1 28 appropriated in this section, the department of
1 29 management, in order to address essential public
1 30 protection functions and recognizing the availability
1 31 of funds appropriated in other Acts of the general
1 32 assembly and other sources, shall give priority, in
1 33 descending order, to the department of corrections,
1 34 department of human services, and department of public
1 35 safety, and then to the remaining state departments,
1 36 boards, commissions, councils, and agencies to which
1 37 the appropriation is applicable.
1 38 Sec. 2. STATE COURTS == JUSTICES, JUDGES, AND
1 39 MAGISTRATES.
1 40 1. Of the amount allocated for the judicial branch
1 41 in 2003 Iowa Acts, Senate File 458, section 48, if
1 42 enacted, $150,000 is allocated to fund the changes in
1 43 this section to the salaries of justices, judges, and
1 44 magistrates.
1 45 2. The following annual salary rates shall be paid
1 46 to the persons holding the judicial positions
1 47 indicated during the fiscal year beginning July 1,
1 48 2003, effective with the pay period beginning December
1 49 5, 2003, and for subsequent pay periods:
1 50 a. Chief justice of the supreme court:
2 1 .................................................. $ 127,040
2 2 b. Each justice of the supreme court:
2 3 .................................................. $ 122,500
2 4 c. Chief judge of the court of appeals:
2 5 .................................................. $ 122,380
2 6 d. Each associate judge of the court of appeals:
2 7 .................................................. $ 117,850
2 8 e. Each chief judge of a judicial district:
2 9 .................................................. $ 116,760
2 10 f. Each district judge except the chief judge of a
2 11 judicial district:
2 12 .................................................. $ 112,010
2 13 g. Each district associate judge:
2 14 .................................................. $ 97,610
2 15 h. Each associate juvenile judge:
2 16 .................................................. $ 97,610
2 17 i. Each associate probate judge:
2 18 .................................................. $ 97,610
2 19 j. Each judicial magistrate:
2 20 .................................................. $ 29,100
2 21 k. Each senior judge:
2 22 .................................................. $ 6,500
2 23 3. Persons receiving the salary rates established
2 24 under subsection 2 shall not receive any additional
2 25 salary adjustments provided by 2003 Iowa Acts, Senate
2 26 File 458, division V.
2 27 DIVISION II
2 28 APPROPRIATIONS AND APPROPRIATIONS REVISIONS
2 29 INSURANCE DIVISION
2 30 Sec. 3. INSURANCE STUDY. There is appropriated
2 31 from the general fund of the state to the department
2 32 of commerce for the fiscal year beginning July 1,
2 33 2003, and ending June 30, 2004, the following amount,
2 34 or so much thereof as is necessary, to be used for the
2 35 purpose designated:
2 36 For the insurance division to implement the school
2 37 health insurance reform team study in accordance with
2 38 2003 Iowa Acts, Senate File 386:
2 39 .................................................. $ 15,000
2 40 DEPARTMENT OF MANAGEMENT
2 41 Sec. 4. LOCAL GOVERNMENT INNOVATION FUND
2 42 APPROPRIATION. There is appropriated from the general
2 43 fund of the state to the department of management for
2 44 the fiscal year beginning July 1, 2003, and ending
2 45 June 30, 2004, the following amount, or so much
2 46 thereof as is necessary, to be used for the purpose
2 47 designated:
2 48 For deposit in the local government innovation fund
2 49 created in section 8.64:
2 50 .................................................. $ 1,000,000
3 1 Notwithstanding section 8.64, subsection 4, if
3 2 enacted by 2003 Iowa Acts, Senate File 453, section
3 3 27, the local government innovation fund committee may
3 4 provide up to 20 percent of the amount appropriated in
3 5 this section in the form of forgivable loans or as
3 6 grants for those projects that propose a new and
3 7 innovative sharing initiative that would serve as an
3 8 important model for cities and counties.
3 9 DEPARTMENT OF CORRECTIONS
3 10 Sec. 5. There is appropriated from the rebuild
3 11 Iowa infrastructure fund to the department of
3 12 corrections for the fiscal year beginning July 1,
3 13 2003, and ending June 30, 2004, the following amounts,
3 14 or so much thereof as is necessary, to be used for the
3 15 purposes designated:
3 16 1. For expansion of the Luster Heights facility
3 17 into a community=based corrections facility and an
3 18 institutional work and substance abuse treatment
3 19 center:
3 20 .................................................. $ 92,000
3 21 2. For conversion of the Clarinda lodge into
3 22 minimum security bed space:
3 23 .................................................. $ 730,400
3 24 Sec. 6. 2003 Iowa Acts, Senate File 439, section
3 25 4, subsection 1, paragraphs b and g, as enacted, are
3 26 amended to read as follows:
3 27 b. For the operation of the Anamosa correctional
3 28 facility, including salaries, support, maintenance,
3 29 employment of correctional officers and a part=time
3 30 chaplain to provide religious counseling to inmates of
3 31 a minority race, miscellaneous purposes, and for not
3 32 more than the following full=time equivalent
3 33 positions:
3 34 .................................................. $ 24,531,917
3 35 25,196,085
3 36 ............................................... FTEs 375.75
3 37 385.25
3 38 Moneys are provided within this appropriation for
3 39 one full=time substance abuse counselor for the Luster
3 40 Heights facility, for the purpose of certification of
3 41 a substance abuse program at that facility. Of the
3 42 funds appropriated in this paragraph "b", $664,168 is
3 43 allocated for implementation costs associated with
3 44 expansion of the Luster Heights facility.
3 45 g. For the operation of the Clarinda correctional
3 46 facility, including salaries, support, maintenance,
3 47 employment of correctional officers, miscellaneous
3 48 purposes, and for not more than the following full=
3 49 time equivalent positions:
3 50 .................................................. $ 18,595,788
4 1 19,389,220
4 2 ............................................... FTEs 291.76
4 3 304.58
4 4 Moneys received by the department of corrections as
4 5 reimbursement for services provided to the Clarinda
4 6 youth corporation are appropriated to the department
4 7 and shall be used for the purpose of operating the
4 8 Clarinda correctional facility.
4 9 Of the funds appropriated in this paragraph "g",
4 10 $793,432 is allocated for implementation costs
4 11 associated with expansion of the conversion of the
4 12 Clarinda lodge, with $277,500 of the allocation for
4 13 one=time costs and $515,932 for ongoing costs.
4 14 PUBLIC TRANSIT
4 15 Sec. 7. 2003 Iowa Acts, Senate File 458, section
4 16 8, if enacted, is amended to read as follows:
4 17 SEC. 8. PUBLIC TRANSIT ASSISTANCE APPROPRIATION.
4 18 Notwithstanding section 312.2, subsection 14, the
4 19 amount appropriated from the general fund of the state
4 20 under section 312.2, subsection 14, to the state
4 21 department of transportation for public transit
4 22 assistance under chapter 324A for the fiscal year
4 23 beginning July 1, 2003, and ending June 30, 2004, is
4 24 reduced by the following amount:
4 25 .................................................. $ 1,298,675
4 26 2,582,800
4 27 OFFICE OF THE GOVERNOR
4 28 Sec. 8. 2003 Iowa Acts, House File 655, section 5,
4 29 subsection 1, if enacted, is amended to read as
4 30 follows:
4 31 1. GENERAL OFFICE
4 32 For salaries, support, maintenance, and
4 33 miscellaneous purposes for the general office of the
4 34 governor and the general office of the lieutenant
4 35 governor, and for not more than the following full=
4 36 time equivalent positions:
4 37 .................................................. $ 1,243,643
4 38 1,493,643
4 39 ............................................... FTEs 17.25
4 40 19.25
4 41 Of the amount appropriated in this section,
4 42 $250,000 is allocated for two full=time equivalent
4 43 positions in the office of the governor that were
4 44 previously funded by other state departments and
4 45 agencies.
4 46 DEPARTMENT OF REVENUE
4 47 Sec. 9. 2003 Iowa Acts, House File 655, section
4 48 31, if enacted, is amended to read as follows:
4 49 SEC. 31. DEPARTMENT OF REVENUE. There is
4 50 appropriated from the general fund of the state to the
5 1 department of revenue for the fiscal year beginning
5 2 July 1, 2003, and ending June 30, 2004, the following
5 3 amounts, or so much thereof as is necessary, to be
5 4 used for the purposes designated, and for not more
5 5 than the following full=time equivalent positions used
5 6 for the purposes designated in subsection 1:
5 7 ............................................... FTEs 378.87
5 8 380.87
5 9 Of the full=time equivalent positions authorized in
5 10 this section, two full=time equivalent positions are
5 11 allocated for new positions to assist in preparation
5 12 of information for the revenue estimating conference
5 13 and in improving the turnaround time for processing
5 14 corporate tax filings.
5 15 1. COMPLIANCE == INTERNAL RESOURCES MANAGEMENT ==
5 16 STATE FINANCIAL MANAGEMENT == STATEWIDE PROPERTY TAX
5 17 ADMINISTRATION
5 18 For salaries, support, maintenance, and
5 19 miscellaneous purposes:
5 20 .................................................. $ 23,259,111
5 21 23,359,111
5 22 Of the funds appropriated pursuant to this
5 23 subsection, $400,000 shall be used to pay the direct
5 24 costs of compliance related to the collection and
5 25 distribution of local sales and services taxes imposed
5 26 pursuant to chapters 422B and 422E.
5 27 The director of revenue shall prepare and issue a
5 28 state appraisal manual and the revisions to the state
5 29 appraisal manual as provided in section 421.17,
5 30 subsection 18, without cost to a city or county.
5 31 2. COLLECTION COSTS AND FEES
5 32 For payment of collection costs and fees pursuant
5 33 to section 422.26:
5 34 .................................................. $ 28,166
5 35 DEPARTMENT OF PUBLIC HEALTH
5 36 Sec. 10. 2003 Iowa Acts, House File 667, section
5 37 2, subsection 8, as enacted, is amended to read as
5 38 follows:
5 39 8. INFECTIOUS DISEASES
5 40 For reducing the incidence and prevalence of
5 41 communicable diseases, and for not more than the
5 42 following full=time equivalent positions:
5 43 .................................................. $ 977,340
5 44 1,074,888
5 45 ............................................... FTEs 36.90
5 46 DIVISION III
5 47 MISCELLANEOUS PROVISIONS
5 48 Sec. 11. GOVERNMENT OVERSIGHT COMMITTEE == REVIEW
5 49 OF CONTINUING CARE RETIREMENT COMMUNITIES == ASSISTED
5 50 LIVING PROGRAM APPLICABILITY. The government
6 1 oversight committees shall review the application of
6 2 chapter 231C, relating to assisted living programs, to
6 3 continuing care retirement communities, as defined in
6 4 section 523D.1. The committees shall submit
6 5 recommendations for any legislation deemed necessary
6 6 for consideration during the 2004 regular legislative
6 7 session.
6 8 Sec. 12. Section 15E.193B, subsection 4, Code
6 9 2003, as amended by 2003 Iowa Acts, Senate File 458,
6 10 section 100, if enacted, is amended to read as
6 11 follows:
6 12 4. The eligible housing business shall complete
6 13 its building or rehabilitation within two years from
6 14 the time the business begins construction on the
6 15 single=family homes and dwelling units. The failure
6 16 to complete construction or rehabilitation within two
6 17 years shall result in the eligible housing business
6 18 becoming ineligible and subject to the repayment
6 19 requirements and penalties enumerated in subsection 7.
6 20 The department may extend the prescribed two=year
6 21 completion period for any current or future project
6 22 which has not been completed if the department
6 23 determines that completion within the two=year period
6 24 is impossible or impractical as a result of a
6 25 substantial loss caused by flood, fire, earthquake,
6 26 storm, or other catastrophe. For purposes of this
6 27 subsection, "substantial loss" means damage or
6 28 destruction in an amount in excess of thirty percent
6 29 of the project's expected eligible basis as set forth
6 30 in the eligible housing business's application.
6 31 Sec. 13. Section 215.14, Code 2003, is amended to
6 32 read as follows:
6 33 215.14 APPROVAL BY DEPARTMENT.
6 34 A commercial weighing and measuring device shall
6 35 not be installed in this state unless approved by the
6 36 department. All livestock scales and
6 37 1. A pit type scales scale or any other scale
6 38 installed in a pit, regardless of capacity, that is
6 39 installed on or after July 1, 1990, shall have a
6 40 clearance of not less than four feet from the finished
6 41 floor line of the scale to the bottom of the "I" beam
6 42 of the scale bridge. Livestock shall not be weighed
6 43 on any scale other than a livestock scale or pit type
6 44 scale.
6 45 2. An electronic pitless scale shall be placed on
6 46 concrete footings with concrete floor. The concrete
6 47 floor shall allow for adequate drainage away from the
6 48 scale as required by the department. There shall be a
6 49 clearance of not less than eight inches between the
6 50 weigh bridge and the concrete floor to facilitate
7 1 inspection and cleaning.
7 2 3. After approval by the department, the
7 3 specifications for a commercial weighing and measuring
7 4 device shall be furnished to the purchaser of the
7 5 device by the manufacturer. The approval shall be
7 6 based upon the recommendation of the United States
7 7 national institute of standards and technology.
7 8 Sec. 14. Section 231C.17, subsection 4, if enacted
7 9 by 2003 Iowa Acts, House File 675, section 24, is
7 10 amended by striking the subsection and inserting in
7 11 lieu thereof the following:
7 12 4. A continuing care retirement community, as
7 13 defined in section 523D.1, may provide limited
7 14 personal care services and emergency response services
7 15 to its independent living tenants if all of the
7 16 following conditions are met:
7 17 a. The provision of such personal care services or
7 18 emergency response services does not result in
7 19 inadequate staff coverage to meet the service needs of
7 20 all tenants of the continuing care retirement
7 21 community.
7 22 b. The staff providing the personal care or
7 23 emergency response services is trained or qualified to
7 24 the extent necessary to provide such services.
7 25 c. The continuing care retirement community
7 26 documents the date, time, and nature of the personal
7 27 care or emergency response services provided.
7 28 d. Emergency response services are only provided
7 29 in situations which constitute an urgent need for
7 30 immediate action or assistance due to unforeseen
7 31 circumstances.
7 32 This subsection shall not be construed to prohibit
7 33 an independent living tenant of a continuing care
7 34 retirement community from contracting with a third
7 35 party for personal care or emergency response
7 36 services.
7 37 Sec. 15. NEW SECTION. 237A.25 CONSUMER
7 38 INFORMATION.
7 39 1. The department shall develop consumer
7 40 information material to assist parents in selecting a
7 41 child care provider. In developing the material, the
7 42 department shall consult with department of human
7 43 services staff, department of education staff, the
7 44 state child care advisory council, the Iowa
7 45 empowerment board, and child care resource and
7 46 referral services. In addition, the department may
7 47 consult with other entities at the local, state, and
7 48 national level.
7 49 2. The consumer information material developed by
7 50 the department for parents and other consumers of
8 1 child care services shall include but is not limited
8 2 to all of the following:
8 3 a. A pamphlet or other printed material containing
8 4 consumer=oriented information on locating a quality
8 5 child care provider.
8 6 b. Information explaining important considerations
8 7 a consumer should take into account in selecting a
8 8 licensed or registered child care provider.
8 9 c. Information explaining how a consumer can
8 10 identify quality services, including what questions to
8 11 ask of providers and what a consumer might expect or
8 12 demand to know before selecting a provider.
8 13 d. An explanation of the applicable laws and
8 14 regulations written in layperson's terms.
8 15 e. An explanation of what it means for a provider
8 16 to be licensed, registered, or unregistered.
8 17 f. An explanation of the information considered in
8 18 registry and record background checks.
8 19 g. Other information deemed relevant to consumers.
8 20 3. The department shall implement and publicize an
8 21 internet page or site that provides all of the
8 22 following:
8 23 a. The written information developed pursuant to
8 24 subsections 1 and 2.
8 25 b. Regular informational updates, including when a
8 26 child care provider was last subject to a state
8 27 quality review or inspection and, based upon a final
8 28 score or review, the results indicating whether the
8 29 provider passed or failed the review or inspection.
8 30 c. Capability for a consumer to be able to access
8 31 information concerning child care providers, such as
8 32 informational updates, identification of provider
8 33 location, name, and capacity, and identification of
8 34 providers participating in the state child care
8 35 assistance program and those participating in the
8 36 child care food program, by sorting the information or
8 37 employing other means that provide the information in
8 38 a manner that is useful to the consumer. Information
8 39 regarding provider location shall identify providers
8 40 located in the vicinity of an address selected by a
8 41 consumer and provide contact information without
8 42 listing the specific addresses of the providers.
8 43 d. Other information deemed appropriate by the
8 44 department.
8 45 Sec. 16. Section 384.84, Code 2003, is amended by
8 46 adding the following new subsection:
8 47 NEW SUBSECTION. 9. Notwithstanding subsection 3,
8 48 a lien shall not be filed against the land if the
8 49 premises are located on leased land. If the premises
8 50 are located on leased land, a lien may be filed
9 1 against the premises only.
9 2 Sec. 17. Section 422E.3A, subsection 2, paragraph
9 3 a, if enacted by 2003 Iowa Acts, Senate File 445,
9 4 section 8, is amended to read as follows:
9 5 a. A school district that is located in whole or
9 6 in part in a county that voted on and approved prior
9 7 to April 1, 2003, the local sales and services tax for
9 8 school infrastructure purposes and that has a sales
9 9 tax capacity per student above the guaranteed school
9 10 infrastructure amount shall receive for the remainder
9 11 of the term of the tax an amount equal to its pro rata
9 12 share of the local sales and services tax receipts as
9 13 provided in section 422E.3, subsection 5, paragraph
9 14 "d", unless the school board passes a resolution by
9 15 October 1, 2003, agreeing to receive a distribution
9 16 pursuant to paragraph "b", subparagraph (1).
9 17 Sec. 18. Section 422E.3A, subsection 2, paragraph
9 18 b, subparagraph (1), if enacted by 2003 Iowa Acts,
9 19 Senate File 445, section 8, is amended to read as
9 20 follows:
9 21 (1) A school district that is located in whole or
9 22 in part in a county that voted on and approved prior
9 23 to April 1, 2003, the local sales and services tax for
9 24 school infrastructure purposes and that has a sales
9 25 tax capacity per student below its guaranteed school
9 26 infrastructure amount shall receive for the remainder
9 27 of the term of the tax an amount equal to its pro rata
9 28 share of the local sales and services tax receipts as
9 29 provided in section 422E.3, subsection 5, paragraph
9 30 "d", plus an amount equal to its supplemental school
9 31 infrastructure amount, unless the school district
9 32 passes a resolution by October 1, 2003, agreeing to
9 33 receive only an amount equal to its pro rata share as
9 34 provided in section 422E.3, subsection 5, paragraph
9 35 "d", in all subsequent years.
9 36 Sec. 19. Section 435.26A, subsection 5, as enacted
9 37 by 2003 Iowa Acts, Senate File 134, section 7, and as
9 38 amended by 2003 Iowa Acts, Senate File 458, section
9 39 128, if enacted, is amended to read as follows:
9 40 5. An owner of a manufactured home who has
9 41 surrendered a certificate of title under this section
9 42 and requires another certificate of title for the
9 43 manufactured home is required to apply for a
9 44 certificate of title under section 321.42 chapter 321.
9 45 If supporting documents for the reissuance of a title
9 46 are not available or sufficient, the procedure for the
9 47 reissuance of a title specified in the rules of the
9 48 department of transportation shall be used.
9 49 Sec. 20. Section 459.315, Code 2003, as amended by
9 50 2003 Iowa Acts, House File 644, if enacted, is amended
10 1 by adding the following new subsection:
10 2 NEW SUBSECTION. 4A. This section shall not
10 3 require a person to be certified as a confinement site
10 4 manure applicator if the person applies manure which
10 5 originates from a manure storage structure which is
10 6 part of a small animal feeding operation.
10 7 Sec. 21. Section 508.31A, subsection 2, paragraph
10 8 a, subparagraph (4), as enacted by 2003 Iowa Acts,
10 9 House File 647, section 7, is amended to read as
10 10 follows:
10 11 (4) A person other than a natural person for the
10 12 purpose of providing collateral security for
10 13 securities issued by such person and registered with
10 14 the federal securities and exchange commission.
10 15 Sec. 22. 2003 Iowa Acts, Senate File 401, section
10 16 5, subsection 1, is amended to read as follows:
10 17 1. Notwithstanding any provision of law to the
10 18 contrary, the section of this Act creating section
10 19 453A.2, subsection 5A, is applicable to violations
10 20 pending on the effective date of this Act for which a
10 21 penalty has not been assessed under section 453A.22,
10 22 subsection 2. Notwithstanding this subsection,
10 23 however, if a county health department, a city health
10 24 department, or a city assesses a penalty under section
10 25 453A.22, subsection 2, on or after April 11, 2003 but
10 26 prior to June 30, 2003, for a violation of section
10 27 453A.2, subsection 1, which was pending on April 11,
10 28 2003, the county health department, city health
10 29 department or city assessing the penalty shall be
10 30 deemed to have jurisdiction to assess the penalty and
10 31 the penalty assessed is deemed valid.
10 32 Sec. 23. 2003 Iowa Acts, Senate File 453, section
10 33 31, subsection 1, if enacted, is amended to read as
10 34 follows:
10 35 1. In lieu of applying a charge for capital assets
10 36 to the institutions under the control of the state
10 37 board of regents as otherwise provided in this
10 38 division for executive branch agencies, the
10 39 appropriations made from the general fund of the state
10 40 to the state board of regents for the general
10 41 university operating budgets at the state university
10 42 of Iowa, Iowa state university of science and
10 43 technology, and university of northern Iowa, in 2003
10 44 Iowa Acts, House File 662, section 9, subsections 2,
10 45 3, and 4, are reduced by $17,880,000. The state board
10 46 of regents shall apply the reduction as follows: state
10 47 university of Iowa, 46.7 percent, Iowa state
10 48 university of science and technology, 36.8 percent,
10 49 and university of northern Iowa, 16.5 percent.
10 50 Sec. 24. 2003 Iowa Acts, Senate File 458, section
11 1 21, unnumbered paragraph 3, if enacted, is amended to
11 2 read as follows:
11 3 Of the funds appropriated in this section, up to
11 4 $10,000 is transferred to the Iowa department of
11 5 public health human services for allocation to
11 6 community mental health centers to provide counseling
11 7 services to persons who are members of the national
11 8 guard and reservists activated but as yet not sent to
11 9 combat zones and to the persons' family members. The
11 10 sessions shall be provided on a first come, first
11 11 served basis and shall be limited to three visits per
11 12 family.
11 13 Sec. 25. 2003 Iowa Acts, Senate File 458, section
11 14 149, if enacted, is amended to read as follows:
11 15 SEC. 149. SUPPLEMENTAL PAYMENT ADJUSTMENTS FOR
11 16 PHYSICIAN SERVICES. To the extent that, pursuant to
11 17 law enacted by the Eightieth General Assembly, 2003
11 18 Session, supplemental payment adjustments are
11 19 implemented for physician services provided to medical
11 20 assistance program participants at publicly owned
11 21 acute care hospitals, the department of human services
11 22 shall not, directly or indirectly, recoup the
11 23 supplemental payment adjustments for any reason,
11 24 unless an amount equivalent to the amount of
11 25 adjustment funds that were is first transferred to the
11 26 department by the state university of Iowa college of
11 27 medicine is transferred by the department to the
11 28 qualifying physicians. Any such amount transferred
11 29 and identified as a supplemental payment under this
11 30 section shall then be refunded to the department of
11 31 human services, per the agreement executed for this
11 32 purpose between the department and the university of
11 33 Iowa.
11 34 Sec. 26. 2003 Iowa Acts, Senate File 458, section
11 35 171, subsection 1, if enacted, is amended to read as
11 36 follows:
11 37 1. PURPOSE. The general assembly finds that the
11 38 Iowa communications network is a valuable state asset
11 39 that has served the people of the state well, but
11 40 which requires significant ongoing financial support
11 41 from the state in the form of annual appropriations.
11 42 The operation of a telecommunications network is a
11 43 function that can be and generally is conducted by
11 44 private enterprise. It is in the public interest to
11 45 sell the Iowa communications network to a qualified
11 46 private business enterprise that will commit to
11 47 provide the same secure low=cost high=quality service
11 48 to state and federal public and private agencies and
11 49 military installations, as defined in chapter 8D, now
11 50 provided by the network. Through such a sale, the
12 1 state would eliminate the need for ongoing annual
12 2 appropriations while preserving the key benefits
12 3 enjoyed by the state under the present state ownership
12 4 of the network. The state also expects to obtain
12 5 sufficient proceeds from such a sale to cover existing
12 6 obligations and to realize additional proceeds above
12 7 the level of such obligations. Given the current
12 8 depressed state of the telecommunications industry,
12 9 the state can reasonably be expected to maximize sales
12 10 proceeds by allowing a purchaser a period of time in
12 11 which to assemble financing for its purchase. During
12 12 the interim between enactment of this division of this
12 13 Act and completion of a sale, the services of a
12 14 private=enterprise manager with experience operating
12 15 telecommunications networks can reasonably be expected
12 16 to reduce the costs of operating the Iowa
12 17 communications network, thereby lowering annual
12 18 appropriations.
12 19 Sec. 27. 2003 Iowa Acts, Senate File 458, section
12 20 172, subsection 2, paragraph b, if enacted, is amended
12 21 to read as follows:
12 22 b. Select a manager and enter into a management
12 23 contract with the manager by October 1, 2004. The
12 24 management contract shall provide for the continuation
12 25 of all services currently being provided to state and
12 26 federal public and private agencies and military
12 27 installations pursuant to chapter 8D, at the rates
12 28 specified therein, for the duration of the contract.
12 29 The contract shall also specify the manager's
12 30 authority in relation to the duties of the commission
12 31 during the period between execution of the management
12 32 contract and closing of the sale of the network. The
12 33 commission shall establish a dispute resolution
12 34 process regarding rate increases, quality of service
12 35 issues, and other areas of dispute involving network
12 36 subscribers. The commission shall also make
12 37 recommendations regarding imposition of an ongoing
12 38 dispute resolution and appeals process commencing with
12 39 the closing of the sale of the network.
12 40 Sec. 28. 2003 Iowa Acts, Senate File 458, section
12 41 173, subsection 1, if enacted, is amended to read as
12 42 follows:
12 43 1. The principal place of business of the
12 44 purchaser and any parent of the purchaser shall be
12 45 located operating in the state of Iowa.
12 46 Sec. 29. 2003 Iowa Acts, Senate File 458, section
12 47 174, subsection 4, if enacted, is amended to read as
12 48 follows:
12 49 4. Agree to continue all services currently being
12 50 provided to state and federal public and private
13 1 agencies and military installations, as defined in
13 2 chapter 8D, for the next ten years, with any annual
13 3 rate increase not to exceed five percent per year,
13 4 provided that the purchaser shall not be required to
13 5 supply at such restricted prices a quantity or quality
13 6 of service greater than that provided by the network
13 7 as of execution of the contract for sale of the
13 8 network.
13 9 Sec. 30. 2003 Iowa Acts, House File 667, section
13 10 27, subsection 1, unnumbered paragraph 2, is amended
13 11 to read as follows:
13 12 For costs associated with the commitment and
13 13 treatment of sexually violent predators in the unit
13 14 located at the state mental health institute at
13 15 Cherokee, including costs of legal services and other
13 16 associated costs, including salaries, support,
13 17 maintenance, and miscellaneous purposes and for not
13 18 more than the following full=time equivalent
13 19 positions:
13 20 .................................................. $ 2,675,179
13 21 ............................................... FTEs 46.00
13 22 57.00
13 23 Sec. 31. EFFECTIVE DATE == RETROACTIVE
13 24 APPLICABILITY.
13 25 1. The section of this division of this Act
13 26 amending section 231C.17, being deemed of immediate
13 27 importance, takes effect upon enactment.
13 28 2. The section of this division of this Act
13 29 amending 2003 Iowa Acts, Senate File 401, being deemed
13 30 of immediate importance, takes effect upon enactment
13 31 and is retroactively applicable to April 11, 2003.
13 32 DIVISION IV
13 33 CORRECTIVE PROVISIONS
13 34 Sec. 32. Section 8A.505, as enacted by 2003 Iowa
13 35 Acts, House File 534, section 87, is amended by adding
13 36 the following new unnumbered paragraph:
13 37 NEW UNNUMBERED PARAGRAPH. There is appropriated
13 38 annually from the increase in indirect cost
13 39 reimbursements over the amount of indirect cost
13 40 reimbursements received during the fiscal year
13 41 beginning July 1, 2002, to the office of grants
13 42 enterprise management of the department of management
13 43 the sum of up to one hundred twenty=five thousand
13 44 dollars. The director shall transfer the funds
13 45 appropriated to the department of management as
13 46 provided in this paragraph and shall make the funds
13 47 resulting from the increase in reimbursements
13 48 available during the fiscal year to the department of
13 49 management on a monthly basis. If the amount of the
13 50 increase in indirect cost reimbursements is
14 1 insufficient to pay the maximum appropriation provided
14 2 for in this paragraph, the amount appropriated is
14 3 equal to the amount of such increase.
14 4 Sec. 33. Section 12C.4, Code 2003, as amended by
14 5 2003 Iowa Acts, House File 289, section 2, is amended
14 6 to read as follows:
14 7 12C.4 LOCATION OF DEPOSITORIES.
14 8 Deposits by the treasurer of state shall be in
14 9 depositories located in this state; by a county
14 10 officer or county public hospital officer or merged
14 11 area hospital officer, in depositories located in the
14 12 county or in an adjoining county within this state; by
14 13 a memorial hospital treasurer, in a depository located
14 14 within this state which shall be selected by the
14 15 memorial hospital treasurer and approved by the
14 16 memorial hospital commission; by a city treasurer or
14 17 other city financial officer, in depositories located
14 18 in the county in which the city is located or in an
14 19 adjoining county, but if there is no depository in the
14 20 county in which the city is located or in an adjoining
14 21 county then in any other depository located in this
14 22 state which shall be selected as a depository by the
14 23 city council; by a school treasurer or by a school
14 24 secretary in a depository within this state which
14 25 shall be selected by the board of directors or the
14 26 trustees of the school district; by a township clerk
14 27 in a depository located within this state which shall
14 28 be selected by the township clerk and approved by the
14 29 trustees of the township. However, deposits may be
14 30 made in depositories outside of Iowa for the purpose
14 31 of paying principal and interest on bonded
14 32 indebtedness of any municipality when the deposit is
14 33 made not more than ten days before the date the
14 34 principal or interest becomes due. Further, the
14 35 treasurer of state may maintain an account or accounts
14 36 outside the state of Iowa for the purpose of providing
14 37 custodial services for the state and state retirement
14 38 fund accounts. Deposits made for the purpose of
14 39 completing an electronic financial transaction
14 40 pursuant to section 14B.203 8A.222 or 331.427 may be
14 41 made in any depository located in this state.
14 42 Sec. 34. Section 29A.28, subsection 3, as enacted
14 43 by 2003 Iowa Acts, House File 674, section 3, is
14 44 amended to read as follows:
14 45 3. Upon returning from a leave of absence under
14 46 this section, an employee shall be entitled to return
14 47 to the same position and classification held by the
14 48 employee at the time of entry onto into state active
14 49 duty, active state service, or federal service or to
14 50 the position and classification that the employee
15 1 would have been entitled to if the continuous civil
15 2 service of the employee had not been interrupted by
15 3 state active duty, active state service, or federal
15 4 service. Under this subsection, "position" includes
15 5 the geographical location of the position.
15 6 Sec. 35. Section 70A.39, subsection 1, paragraph
15 7 b, as enacted by 2003 Iowa Acts, House File 381,
15 8 section 1, is amended to read as follows:
15 9 b. "Vascularized "Vascular organ" means a heart,
15 10 lung, liver, pancreas, kidney, intestine, or other
15 11 organ that requires the continuous circulation of
15 12 blood to remain useful for purposes of
15 13 transplantation.
15 14 Sec. 36. Section 99B.7, subsection 1, paragraph 1,
15 15 subparagraph (1), Code 2003, as amended by 2003 Iowa
15 16 Acts, Senate File 453, section 104, if enacted, is
15 17 amended to read as follows:
15 18 (1) No other gambling is engaged in at the same
15 19 location, except that lottery tickets or shares issued
15 20 by the Iowa lottery division of the department of
15 21 revenue and finance authority may be sold pursuant to
15 22 chapter 99G.
15 23 Sec. 37. Section 507A.4, subsection 9, paragraph
15 24 e, as enacted by 2003 Iowa Acts, House File 647,
15 25 section 4, is amended to read as follows:
15 26 e. When not otherwise provided, a foreign or
15 27 domestic multiple employee employer welfare
15 28 arrangement doing business in this state shall pay to
15 29 the commissioner of insurance the fees as required in
15 30 section 511.24.
15 31 Sec. 38. Section 556.11, subsection 5, Code 2003,
15 32 as amended by 2003 Iowa Acts, Senate File 180, section
15 33 2, is amended to read as follows:
15 34 5. If the holder of property presumed abandoned
15 35 under this chapter knows the whereabouts of the owner
15 36 and if the owner's claim has not been barred by the
15 37 statute of limitations, the holder shall, before
15 38 filing the annual report, communicate with the owner
15 39 and take necessary steps to prevent abandonment from
15 40 being presumed. The holder shall exercise due
15 41 diligence to ascertain the whereabouts of the owner. A
15 42 holder is not required to make a due diligence mailing
15 43 to owners whose property has an aggregate value of
15 44 less than fifty dollars. The treasurer of state may
15 45 charge a holder that fails to timely exercise due
15 46 diligence, as required in this subsection, five
15 47 dollars for each name and address account reported if
15 48 thirty=five percent of or more of the accounts are
15 49 claimed within the twenty=four months immediately
15 50 following the filing of the holder report.
16 1 Sec. 39. 2003 Iowa Acts, Senate File 438, section
16 2 3, is repealed.
16 3 Sec. 40. 2003 Iowa Acts, Senate File 453, section
16 4 11, if enacted, is amended to read as follows:
16 5 SEC. 11. Sections 403.23, 405A.1, 405A.2, 405A.3,
16 6 405A.4, 405A.5, 405A.6, 405A.7, 405A.8, 405A.9,
16 7 405A.10, 422.65, 427A.12, and 427B.19B, Code 2003, are
16 8 repealed.
16 9 Sec. 41. 2003 Iowa Acts, Senate File 458, section
16 10 13, if enacted, is amended to read as follows:
16 11 SEC. 13. REDUCTION IN CREDITS NOT APPLICABLE. The
16 12 provision provisions in section 25B.7 relating to the
16 13 proration of the property tax credits does and the
16 14 estimation of the portion of the credit or exemption
16 15 which will be funded do not apply with respect to the
16 16 amount of state reimbursement for property tax credits
16 17 under this division.
16 18 Sec. 42. 2003 Iowa Acts, Senate File 458, section
16 19 159, if enacted, is amended to read as follows:
16 20 SEC. 159. EFFECTIVE DATES. The following
16 21 provisions of this division of this Act, being deemed
16 22 of immediate importance, take effect upon enactment:
16 23 1. The amendments to sections 8.23, 8.31, and 8.57
16 24 which are first applicable to appropriations made for
16 25 the fiscal year beginning July 1, 2003.
16 26 2. The amendment to section 12E.12.
16 27 3. The amendments to sections 15E.42, 15E.43,
16 28 15E.45, and 15E.51, which apply retroactively to
16 29 January 1, 2002, for tax years beginning on or after
16 30 that date.
16 31 4. The amendment to section 15E.193B.
16 32 5. The amendment to section 435.26A.
16 33 6. The amendment to section 453A.2, which shall
16 34 only take effect if 2003 Iowa Acts, Senate File 401,
16 35 is enacted by the Eightieth General Assembly, 2003
16 36 Regular Session.
16 37 7. The amendments to sections 453C.1 and 453C.2
16 38 and the related severability provision.
16 39 8. The amendments to sections 518.18 and 518A.35.
16 40 9. The section directing the department of
16 41 corrections to develop a plan for selling certain
16 42 land.
16 43 10. The section relating to the sales and use tax
16 44 refund.
16 45 11. The section relating to the school district
16 46 reimbursement claim.
16 47 The sections of this division of this Act amending
16 48 section 80B.5 and enacting section 80B.5A are
16 49 applicable to the appointment of the director of the
16 50 Iowa law enforcement academy for the term beginning
17 1 May 1, 2004.
17 2 Section 29C.8, subsection 3, paragraph "f", as
17 3 enacted in this division of this Act, and the
17 4 amendment to section 29C.20, subsection 1, as enacted
17 5 in this division of this Act, take effect July 1,
17 6 2004.
17 7 Sec. 43. 2003 Iowa Acts, House File 171, section
17 8 112, the bill section amending clause, is amended to
17 9 read as follows:
17 10 Section 656.2, subsection 2, paragraph a,
17 11 unnumbered paragraph 11 3, Code 2003, is amended to
17 12 read as follows:
17 13 Sec. 44. 2003 Iowa Acts, House File 662, section
17 14 5, subsection 8, paragraphs a and b, if enacted, are
17 15 amended to read as follows:
17 16 a. Of the amount appropriated in this section
17 17 subsection, $347,371 shall be allocated to the public
17 18 broadcasting division for purposes of providing
17 19 support for functions related to the Iowa
17 20 communications network, including but not limited to
17 21 the following functions: development of distance
17 22 learning applications; development of a central
17 23 information source on the internet relating to
17 24 educational uses of the network; second=line technical
17 25 support for network sites; testing and initializing
17 26 sites onto the network; and coordinating the work of
17 27 the education telecommunications council.
17 28 b. Of the amount appropriated in this section
17 29 subsection, $1,272,285 shall be allocated to the
17 30 regional telecommunications councils established in
17 31 section 8D.5. The regional telecommunications
17 32 councils shall use the funds to provide technical
17 33 assistance for network classrooms, planning and
17 34 troubleshooting for local area networks, scheduling of
17 35 video sites, and other related support activities.
17 36 Sec. 45. 2003 Iowa Acts, House File 662, section
17 37 6, unnumbered paragraph 2, if enacted, is amended to
17 38 read as follows:
17 39 The funds allocated in this subsection section
17 40 shall be distributed as follows:
17 41 Sec. 46. 2003 Iowa Acts, House File 662, section
17 42 18, if enacted, is repealed.
17 43 Sec. 47. EFFECTIVE AND APPLICABILITY DATES.
17 44 1. The section of this division of this Act
17 45 amending section 29A.28, subsection 3, being deemed of
17 46 immediate importance, takes effect upon enactment and
17 47 applies retroactively to January 1, 2003.
17 48 2. The section of this division of this Act
17 49 amending 2003 Iowa Acts, Senate File 458, section 159,
17 50 being deemed of immediate importance, takes effect
18 1 upon enactment.
18 2 3. 2003 Iowa Acts, Senate File 458, section 140,
18 3 relating to nonreversion of funds appropriated in 1996
18 4 Iowa Acts, chapter 1218, and 1997 Iowa Acts, chapter
18 5 215, if enacted, being deemed of immediate importance,
18 6 takes effect upon enactment of this Act.
18 7 DIVISION V
18 8 ALTERNATIVE FORMS OF LOCAL GOVERNMENT
18 9 Sec. 48. Section 331.234, subsections 3 and 4,
18 10 Code 2003, as amended by 2003 Iowa Acts, Senate File
18 11 390, section 4, if enacted, are amended to read as
18 12 follows:
18 13 3. The board shall make available to the
18 14 commission in=kind services such as office space,
18 15 printing, supplies, and equipment. The county and
18 16 shall pay from the segregated account established in
18 17 subsection 4, the other necessary expenses of the
18 18 commission including compensation for secretarial,
18 19 clerical, professional, and consultant services. The
18 20 total annual expenses, not including the value of in=
18 21 kind expenses, to be paid from public funds shall not
18 22 exceed one hundred thousand dollars or an amount equal
18 23 to thirty cents times the population of the commission
18 24 area, according to the most recent certified federal
18 25 census. The commission may employ staff as necessary.
18 26 4. The Except as otherwise provided in subsection
18 27 5, the expenses of the commission shall be paid by
18 28 each city and county participating in the charter
18 29 process or may be paid from the general fund of the
18 30 county. Expenses of the commission may also be paid
18 31 from any combination of public or private funds
18 32 available for that purpose. Each city's share shall
18 33 be its pro rata share of the expenses based upon the
18 34 ratio that the population of the city bears to the
18 35 total population in the county. The county's share
18 36 shall be its pro rata share of expenses based upon the
18 37 ratio that the population of the unincorporated area
18 38 of the county bears to the total population of the
18 39 county. The amount paid by each city and county
18 40 participating in the charter process shall be
18 41 deposited in a segregated account maintained by the
18 42 county. The commission's annual expenses may exceed
18 43 the amount in subsection 3 only if the excess is paid
18 44 from private funds. If a proposed charter is
18 45 submitted to the electorate, private funds donated to
18 46 the commission may be used to promote passage of the
18 47 proposed charter.
18 48 Sec. 49. Section 331.234, Code 2003, is amended by
18 49 adding the following new subsection:
18 50 NEW SUBSECTION. 5. In the case of a city=county
19 1 consolidation charter commission or a community
19 2 commonwealth charter commission, the expenses of the
19 3 commission shall be paid by each city and county
19 4 participating in the charter process pursuant to
19 5 section 331.233A. Each participating city's share
19 6 shall be its pro rata share of the expenses based upon
19 7 the ratio that the population of the city bears to the
19 8 total population in the county. The remainder shall
19 9 be paid from the general fund of the county. The
19 10 amount paid by each city and county participating in
19 11 the charter process shall be deposited in a segregated
19 12 account maintained by the county.
19 13 Sec. 50. Section 331.235, subsection 3, Code 2003,
19 14 as amended by 2003 Iowa Acts, Senate File 390, section
19 15 5, if enacted, is amended to read as follows:
19 16 3. Within twenty months after organization, the
19 17 commission shall submit the final report to the board.
19 18 If the commission is created pursuant to section
19 19 331.264, subsection 4, the commission shall submit the
19 20 final report to the board within five months after
19 21 submission of the preliminary report to the board
19 22 pursuant to section 331.264, subsection 3. A
19 23 commission created pursuant to section 331.264,
19 24 subsection 4, may adopt a motion granting itself a
19 25 sixty=day extension of time for submission of its
19 26 final report. If the commission recommends a charter
19 27 including a form of government other than the existing
19 28 form of government, the final report shall include the
19 29 full text and an explanation of the proposed charter,
19 30 a statement of whether the elected officers shall be
19 31 elected on a partisan or nonpartisan basis, an
19 32 analysis of the fiscal impact of the proposed charter,
19 33 any comments deemed desirable by the commission, and
19 34 any minority reports. The final report may recommend
19 35 no change to the existing form of government and that
19 36 no charter be submitted to the electorate, in which
19 37 case, the report shall state the reasons for and
19 38 against a change in the existing form of government.
19 39 The final report shall be made available to the
19 40 residents of the county upon request. A summary of
19 41 the final report shall be published in the official
19 42 newspapers of the county and in a newspaper of general
19 43 circulation in each participating city.
19 44 Sec. 51. Section 331.238, subsection 4, if enacted
19 45 by 2003 Iowa Acts, Senate File 390, section 9, is
19 46 amended to read as follows:
19 47 4. Subsections 1 and 2 do This section does not
19 48 apply to the city=county consolidated form of
19 49 government or the community commonwealth form of
19 50 government.
20 1 Sec. 52. Section 331.247, subsection 4, Code 2003,
20 2 as amended by 2003 Iowa Acts, Senate File 390, section
20 3 11, if enacted, is amended to read as follows:
20 4 4. If an alternative form of government for a
20 5 consolidated unit of local government is proposed,
20 6 approval of the consolidation charter shall be
20 7 separate from approval of the alternative form of
20 8 government in those cities proposed to be included in
20 9 the consolidation. The question of whether the
20 10 election of officers of the consolidated unit of local
20 11 government shall be with regard to political
20 12 affiliation shall be a separate question on the
20 13 ballot. Adoption of the consolidation charter
20 14 requires the approval of a majority of the votes cast
20 15 in the entire county. A city named on the ballot is
20 16 included in the consolidation if the proposed charter
20 17 is approved by a majority of the votes cast in the
20 18 city. The consolidation charter shall be effective in
20 19 regard to a city government only if a majority of the
20 20 voters of the city voting on the question voted for
20 21 participation in the consolidation charter.
20 22 Sec. 53. Section 331.248, subsection 2, paragraph
20 23 j, if enacted by 2003 Iowa Acts, Senate File 390,
20 24 section 13, is amended by striking the paragraph and
20 25 inserting in lieu thereof the following:
20 26 j. Provide for the effective date of the adopted
20 27 charter.
20 28 Sec. 54. Section 331.252, Code 2003, as amended by
20 29 2003 Iowa Acts, Senate File 390, section 18, if
20 30 enacted, is amended by adding the following new
20 31 unnumbered paragraph after unnumbered paragraph 2:
20 32 NEW UNNUMBERED PARAGRAPH. If the charter described
20 33 on this ballot is adopted, should officers of the new
20 34 government be elected with regard to political
20 35 affiliation?
20 36 Sec. 55. Section 331.254, subsection 7, Code 2003,
20 37 as amended by 2003 Iowa Acts, Senate File 390, section
20 38 19, if enacted, is amended to read as follows:
20 39 7. The merger of the elective offices of each
20 40 consolidating county with the election of new officers
20 41 within sixty days after the effective date of the
20 42 charter which shall specifically provide whether the
20 43 election of new officers shall be on a partisan or
20 44 nonpartisan basis, notwithstanding section 331.238,
20 45 subsection 3. The elections shall be conducted by the
20 46 county commissioner of elections of each county. No
20 47 primary election shall be held. Nominations shall be
20 48 made pursuant to section 43.78 and chapters 44 and 45,
20 49 as applicable, except that the filing deadline shall
20 50 be forty days before the election.
21 1 Sec. 56. Section 331.261, subsection 11, Code
21 2 2003, as amended by 2003 Iowa Acts, Senate File 390,
21 3 section 22, if enacted, is amended by striking the
21 4 subsection and inserting in lieu thereof the
21 5 following:
21 6 11. The effective date of the adopted charter.
21 7 Sec. 57. Section 331.264, subsection 4, if enacted
21 8 by 2003 Iowa Acts, Senate File 390, section 25, is
21 9 amended to read as follows:
21 10 4. If the committee report recommends a city=
21 11 county consolidation or community commonwealth, the
21 12 committee shall continue its existence and be
21 13 designated, and operate with the powers and duties of,
21 14 a commission created pursuant to section 331.233A. If
21 15 the committee report recommends a multicounty
21 16 consolidation, the committee shall continue its
21 17 existence and be designated, and operate with the
21 18 powers and duties of, a commission created pursuant to
21 19 section 331.233. If the committee recommends an
21 20 alternative form of government, that recommendation
21 21 shall state whether elections conducted under that
21 22 form of government shall be partisan or nonpartisan.
21 23 Sec. 58. EFFECTIVE AND APPLICABILITY DATES. This
21 24 division of this Act, being deemed of immediate
21 25 importance, takes effect upon enactment and applies to
21 26 charter commissions in existence on that date.
21 27 DIVISION VI
21 28 CRIMINAL OFFENDERS AND INMATES
21 29 Sec. 59. Section 321J.2, subsection 2, paragraph
21 30 a, subparagraph (1), Code 2003, is amended to read as
21 31 follows:
21 32 (1) Imprisonment in the county jail for not less
21 33 than forty=eight hours, to be served as ordered by the
21 34 court, less credit for any time the person was
21 35 confined in a jail or detention facility following
21 36 arrest or for any time the person spent in a court=
21 37 ordered operating=while=intoxicated program that
21 38 provides law enforcement security. However, the
21 39 court, in ordering service of the sentence and in its
21 40 discretion, may accommodate the defendant's work
21 41 schedule.
21 42 Sec. 60. NEW SECTION. 811.2A PRETRIAL RELEASE.
21 43 A person, who has been released under a plan of
21 44 pretrial release or on the person's own recognizance
21 45 and who is subsequently arrested for a new criminal
21 46 offense while under the plan of pretrial release or
21 47 released on the person's own recognizance, shall not
21 48 be eligible for another release pursuant to pretrial
21 49 release guidelines or released on the person's own
21 50 recognizance, if all of the following apply:
22 1 1. The arrest for the new criminal offense is
22 2 based on a set of facts or an event that is different
22 3 than involved in the earlier arrest.
22 4 2. The new criminal offense is classified as
22 5 greater than a serious misdemeanor.
22 6 However, a person may be admitted to bail if
22 7 eligible pursuant to section 811.1.
22 8 Sec. 61. Section 901.4, Code 2003, is amended to
22 9 read as follows:
22 10 901.4 PRESENTENCE INVESTIGATION REPORT
22 11 CONFIDENTIAL == DISTRIBUTION.
22 12 The presentence investigation report is
22 13 confidential and the court shall provide safeguards to
22 14 ensure its confidentiality, including but not limited
22 15 to sealing the report, which may be opened only by
22 16 further court order. At least three days prior to the
22 17 date set for sentencing, the court shall serve all of
22 18 the presentence investigation report upon the
22 19 defendant's attorney and the attorney for the state,
22 20 and the report shall remain confidential except upon
22 21 court order. However, the court may conceal the
22 22 identity of the person who provided confidential
22 23 information. The report of a medical examination or
22 24 psychological or psychiatric evaluation shall be made
22 25 available to the attorney for the state and to the
22 26 defendant upon request. The reports are part of the
22 27 record but shall be sealed and opened only on order of
22 28 the court. If the defendant is committed to the
22 29 custody of the Iowa department of corrections and is
22 30 not a class "A" felon, a copy of the presentence
22 31 investigation report shall be forwarded to the
22 32 director with the order of commitment by the clerk of
22 33 the district court and to the board of parole at the
22 34 time of commitment. The Pursuant to section 904.602,
22 35 the presentence investigation report may also be
22 36 released by the department of corrections or a
22 37 judicial district department of correctional services
22 38 pursuant to section 904.602 to another jurisdiction
22 39 for the purpose of providing interstate probation and
22 40 parole compact services or evaluations, or to a
22 41 substance abuse or mental health services provider
22 42 when referring a defendant for services. The
22 43 defendant or the defendant's attorney may file with
22 44 the presentence investigation report, a denial or
22 45 refutation of the allegations, or both, contained in
22 46 the report. The denial or refutation shall be
22 47 included in the report. If the person is sentenced
22 48 for an offense which requires registration under
22 49 chapter 692A, the court shall release the report to
22 50 the department which is responsible under section
23 1 692A.13A for performing the assessment of risk.
23 2 Sec. 62. Section 901B.1, subsection 1, paragraph
23 3 c, subparagraph (5), Code 2003, is amended to read as
23 4 follows:
23 5 (5) A substance abuse treatment facility as
23 6 established and operated by the Iowa department of
23 7 public health or the department of corrections.
23 8 Sec. 63. Section 903A.2, subsection 1, paragraph
23 9 a, Code 2003, is amended to read as follows:
23 10 a. Category "A" sentences are those sentences
23 11 which are not subject to a maximum accumulation of
23 12 earned time of fifteen percent of the total sentence
23 13 of confinement under section 902.12. To the extent
23 14 provided in subsection 5, category "A" sentences also
23 15 include life sentences imposed under section 902.1.
23 16 An inmate of an institution under the control of the
23 17 department of corrections who is serving a category
23 18 "A" sentence is eligible for a reduction of sentence
23 19 equal to one and two=tenths days for each day the
23 20 inmate demonstrates good conduct and satisfactorily
23 21 participates in any program or placement status
23 22 identified by the director to earn the reduction. The
23 23 programs include but are not limited to the following:
23 24 (1) Employment in the institution.
23 25 (2) Iowa state industries.
23 26 (3) An employment program established by the
23 27 director.
23 28 (4) A treatment program established by the
23 29 director.
23 30 (5) An inmate educational program approved by the
23 31 director.
23 32 An inmate serving a category "A" sentence is
23 33 eligible for an additional reduction of sentence of up
23 34 to three hundred sixty=five days of the full term of
23 35 the sentence of the inmate for exemplary acts. In
23 36 accordance with section 903A.4, the director shall by
23 37 policy identify what constitutes an exemplary act that
23 38 may warrant an additional reduction of sentence.
23 39 Sec. 64. Section 903A.3, subsection 2, Code 2003,
23 40 is amended to read as follows:
23 41 2. The orders of the administrative law judge are
23 42 subject to appeal to the superintendent or warden of
23 43 the institution, or the superintendent's or warden's
23 44 designee, who may either affirm, modify, remand for
23 45 correction of procedural errors, or reverse an order.
23 46 However, sanctions shall not be increased on appeal.
23 47 A decision of the superintendent, warden, or designee
23 48 is subject to review by the director of the Iowa
23 49 department of corrections who may either affirm,
23 50 modify, remand for correction of procedural errors, or
24 1 reverse the decision. However, sanctions shall not be
24 2 increased on review.
24 3 Sec. 65. NEW SECTION. 904.117 INTERSTATE COMPACT
24 4 FUND.
24 5 An interstate compact fund is established under the
24 6 control of the department. All interstate compact
24 7 fees collected by the department pursuant to section
24 8 907B.5 shall be deposited into the fund and the moneys
24 9 shall be used by the department to offset the costs of
24 10 complying with the interstate compact for adult
24 11 offender supervision in chapter 907B. Notwithstanding
24 12 section 8.33, moneys remaining in the fund at the end
24 13 of a fiscal year shall not revert to the general fund
24 14 of the state. Notwithstanding section 12C.7, interest
24 15 and earnings deposited in the fund shall be credited
24 16 to the fund.
24 17 Sec. 66. Section 904.503, subsection 2, Code 2003,
24 18 is amended to read as follows:
24 19 2. When the director has cause to believe that an
24 20 inmate in a state correctional institution is mentally
24 21 ill, the Iowa department of corrections may cause the
24 22 inmate to be transferred to the Iowa medical and
24 23 classification center, or to another appropriate
24 24 facility within the department, for examination,
24 25 diagnosis, or treatment. The inmate shall be confined
24 26 at that institution center or facility or a state
24 27 hospital for persons with mental illness until the
24 28 expiration of the inmate's sentence or until the
24 29 inmate is pronounced in good mental health. If the
24 30 inmate is pronounced in good mental health before the
24 31 expiration of the inmate's sentence, the inmate shall
24 32 be returned to the state correctional institution
24 33 until the expiration of the inmate's sentence.
24 34 Sec. 67. Section 904.508, subsection 2, Code 2003,
24 35 is amended to read as follows:
24 36 2. The Pursuant to section 904.702, the director
24 37 shall establish and maintain an inmate savings fund in
24 38 an interest=bearing account for the deposit of all or
24 39 part of an inmate's allowances, as provided in section
24 40 904.702 and amounts, except amounts directed to be
24 41 deposited in the inmate telephone fund established in
24 42 section 904.508A, sent to the inmate from a source
24 43 other than the department. All or part of an inmate's
24 44 allowances and amounts, except amounts directed to be
24 45 deposited in the inmate telephone fund established in
24 46 section 904.508A, from a source other than the
24 47 department shall be deposited into the savings fund,
24 48 until the inmate's deposit is equal to the amount due
24 49 the inmate upon discharge, parole, or placement on
24 50 work release, one hundred dollars as provided in
25 1 section 906.9. If an inmate's deposits are equal this
25 2 amount to or in excess of one hundred dollars, the
25 3 inmate may voluntarily withdraw from the savings fund.
25 4 The director shall notify the inmate of this right to
25 5 withdraw and shall provide the inmate with a written
25 6 request form to facilitate the withdrawal. If the
25 7 inmate withdraws and the inmate's deposits exceed the
25 8 amount due as provided in section 906.9, the director
25 9 shall disburse the excess amount as provided for
25 10 allowances under section 904.702, except the director
25 11 shall not deposit the excess amount in the inmate
25 12 savings fund. If the inmate chooses to continue to
25 13 participate in the savings fund, the inmate's deposits
25 14 shall be returned to the inmate upon discharge,
25 15 parole, or placement on work release. Otherwise, the
25 16 inmate's deposits shall be disposed of as provided in
25 17 subsection 3. An inmate's deposits into the savings
25 18 fund may be used to provide the money due the inmate
25 19 upon discharge, parole, or placement on work release,
25 20 as required under section 906.9. Interest earned from
25 21 the savings fund shall be placed in a separate
25 22 account, and may be used for purchases approved by the
25 23 director to directly and collectively benefit inmates.
25 24 Sec. 68. Section 904.508A, Code 2003, is amended
25 25 to read as follows:
25 26 904.508A INMATE TELEPHONE REBATE FUND.
25 27 The department is authorized to establish and
25 28 maintain an inmate telephone rebate fund in each
25 29 institution for the deposit of moneys received for
25 30 inmate telephone rebates calls. All funds deposited
25 31 in this fund shall be used for the benefit of inmates.
25 32 The director shall adopt rules providing for the
25 33 disbursement of moneys from the fund.
25 34 Sec. 69. Section 904.513, subsection 1, paragraph
25 35 b, subparagraph (4), Code 2003, is amended to read as
25 36 follows:
25 37 (4) Assignment may also be made on the basis of
25 38 the offender's treatment program performance, as a
25 39 disciplinary measure, for medical needs, and for space
25 40 availability at community residential facilities. If
25 41 there is insufficient space at a community residential
25 42 facility, the court may order an offender to be
25 43 released to the supervision of the judicial district
25 44 department of correctional services, or held in jail,
25 45 or committed to the custody of the director of the
25 46 department of corrections for assignment to an
25 47 appropriate correctional facility until there is
25 48 sufficient space at a community residential facility.
25 49 Sec. 70. Section 904.702, unnumbered paragraph 1,
25 50 Code 2003, is amended to read as follows:
26 1 If allowances are paid pursuant to section 904.701,
26 2 the director shall establish an inmate account, for
26 3 deposit of those allowances and for deposit of moneys
26 4 sent to the inmate from a source other than the
26 5 department of corrections. The director may deduct an
26 6 amount, not to exceed ten percent of the amount of the
26 7 allowance, unless the inmate requests a larger amount,
26 8 to be deposited into the inmate savings fund as
26 9 required under section 904.508, subsection 2. In
26 10 addition to deducting a portion of the allowance, the
26 11 director may also deduct from an inmate account any
26 12 amount, except amounts directed to be deposited in the
26 13 inmate telephone fund established in section 904.508A,
26 14 sent to the inmate from a source other than the
26 15 department of corrections for deposit in the inmate
26 16 savings fund as required under section 904.508,
26 17 subsection 2, until the amount in the fund equals the
26 18 amount due the inmate upon discharge, parole, or
26 19 placement on work release. The director shall deduct
26 20 from the inmate account an amount established by the
26 21 inmate's restitution plan of payment. The director
26 22 shall also deduct from any remaining account balance
26 23 an amount sufficient to pay all or part of any
26 24 judgment against the inmate, including but not limited
26 25 to judgments for taxes and child support, and court
26 26 costs and fees assessed either as a result of the
26 27 inmate's confinement or amounts required to be paid
26 28 under section 610A.1. Written notice of the amount of
26 29 the deduction shall be given to the inmate, who shall
26 30 have five days after receipt of the notice to submit
26 31 in writing any and all objections to the deduction to
26 32 the director, who shall consider the objections prior
26 33 to transmitting the deducted amount to the clerk of
26 34 the district court. The director need give only one
26 35 notice for each action or appeal under section 610A.1
26 36 for which periodic deductions are to be made. The
26 37 director shall next deduct from any remaining account
26 38 balance an amount sufficient to pay all or part of any
26 39 costs assessed against the inmate for misconduct or
26 40 damage to the property of others. The director may
26 41 deduct from the inmate's account an amount sufficient
26 42 to pay for the inmate's share of the costs of health
26 43 services requested by the inmate and for the treatment
26 44 of injuries inflicted by the inmate on the inmate or
26 45 others. The director may deduct and disburse an
26 46 amount sufficient for industries' programs to qualify
26 47 under the eligibility requirements established in the
26 48 Justice Assistance Act of 1984, Pub. L. No. 98=473,
26 49 including an amount to pay all or part of the cost of
26 50 the inmate's incarceration. The director may pay all
27 1 or any part of remaining allowances paid pursuant to
27 2 section 904.701 directly to a dependent of the inmate,
27 3 or may deposit the allowance to the account of the
27 4 inmate, or may deposit a portion and allow the inmate
27 5 a portion for the inmate's personal use.
27 6 Sec. 71. Section 907.4, Code 2003, is amended to
27 7 read as follows:
27 8 907.4 DEFERRED JUDGMENT DOCKET.
27 9 A deferment of judgment under section 907.3 shall
27 10 be reported promptly by the clerk of the district
27 11 court, or the clerk's designee, to the state court
27 12 administrator for entry in the deferred judgment
27 13 docket. The docket shall contain a permanent record
27 14 of the deferred judgment including the name and date
27 15 of birth of the defendant, the district court docket
27 16 number, the nature of the offense, and the date of the
27 17 deferred judgment. Before granting deferred judgment
27 18 in any case, the court shall request of the state
27 19 court administrator a search of the deferred judgment
27 20 docket and shall consider any prior record of a
27 21 deferred judgment against the defendant. The
27 22 permanent record provided for in this section is a
27 23 confidential record exempted from public access under
27 24 section 22.7 and shall be available only to justices
27 25 of the supreme court, judges of the court of appeals,
27 26 district judges, district associate judges, judicial
27 27 magistrates, clerks of the district court, judicial
27 28 district departments of correctional services, and
27 29 county attorneys requesting information pursuant to
27 30 this section, or the designee of a justice, judge,
27 31 magistrate, clerk, judicial district department of
27 32 correctional services, or county attorney.
27 33 Sec. 72. Section 907.9, subsections 1, 2, and 4,
27 34 Code 2003, are amended to read as follows:
27 35 1. At any time that the court determines that the
27 36 purposes of probation have been fulfilled and the fees
27 37 imposed under section 905.14 have been paid to or
27 38 waived by the judicial district department of
27 39 correctional services or on condition that unpaid
27 40 supervision fees be paid, the court may order the
27 41 discharge of a person from probation.
27 42 2. At any time that a probation officer determines
27 43 that the purposes of probation have been fulfilled and
27 44 the fees imposed under section 905.14 have been paid
27 45 to or waived by the judicial district department of
27 46 correctional services or on condition that unpaid
27 47 supervision fees be paid, the officer may order the
27 48 discharge of a person from probation after approval of
27 49 the district director and notification of the
27 50 sentencing court and the county attorney who
28 1 prosecuted the case.
28 2 4. At the expiration of the period of probation
28 3 and if the fees imposed under section 905.14 have been
28 4 paid to or waived by the judicial district department
28 5 of correctional services or on condition that unpaid
28 6 supervision fees be paid, the court shall order the
28 7 discharge of the person from probation, and the court
28 8 shall forward to the governor a recommendation for or
28 9 against restoration of citizenship rights to that
28 10 person. A person who has been discharged from
28 11 probation shall no longer be held to answer for the
28 12 person's offense. Upon discharge from probation, if
28 13 judgment has been deferred under section 907.3, the
28 14 court's criminal record with reference to the deferred
28 15 judgment shall be expunged. The record maintained by
28 16 the state court administrator as required by section
28 17 907.4 shall not be expunged. The court's record shall
28 18 not be expunged in any other circumstances.
28 19 Sec. 73. NEW SECTION. 907B.4 INTERSTATE COMPACT
28 20 FEE.
28 21 The department of corrections may assess a fee, not
28 22 to exceed one hundred dollars, for an application to
28 23 transfer out of the state under the interstate compact
28 24 for adult offender supervision. The fee may be waived
28 25 by the department. The moneys collected pursuant to
28 26 this section shall be deposited into the interstate
28 27 compact fund established in section 904.117 and shall
28 28 be used to offset the costs of complying with the
28 29 interstate compact for adult offender supervision.
28 30 Sec. 74. Section 910.3B, Code 2003, is amended to
28 31 read as follows:
28 32 910.3B RESTITUTION FOR DEATH OF VICTIM.
28 33 1. In all criminal cases in which the offender is
28 34 convicted of a felony in which the act or acts
28 35 committed by the offender caused the death of another
28 36 person, in addition to the amount determined to be
28 37 payable and ordered to be paid to a victim for
28 38 pecuniary damages, as defined under section 910.1, and
28 39 determined under section 910.3, the court shall also
28 40 order the offender to pay at least one hundred fifty
28 41 thousand dollars in restitution to the victim's estate
28 42 if the victim died testate. If the victim died
28 43 intestate the court shall order the offender to pay
28 44 the restitution to the victim's heirs at law as
28 45 determined pursuant to section 633.210. The
28 46 obligation to pay the additional amount shall not be
28 47 dischargeable in any proceeding under the federal
28 48 Bankruptcy Act. Payment of the additional amount
28 49 shall have the same priority as payment of a victim's
28 50 pecuniary damages under section 910.2, in the
29 1 offender's plan for restitution.
29 2 2. An award under this section does not preclude
29 3 or supersede the right of a victim's estate or heirs
29 4 at law to bring a civil action against the offender
29 5 for damages arising out of the same facts or event.
29 6 However, no evidence relating to the entry of the
29 7 judgment against the offender pursuant to this section
29 8 or the amount of the award ordered pursuant to this
29 9 section shall be permitted to be introduced in any
29 10 civil action for damages arising out of the same facts
29 11 or event.
29 12 3. An offender who is ordered to pay a victim's
29 13 estate or heirs at law under this section is precluded
29 14 from denying the elements of the felony offense which
29 15 resulted in the order for payment in any subsequent
29 16 civil action for damages arising out of the same facts
29 17 or event.
29 18 Sec. 75. Section 915.100, subsection 2, paragraph
29 19 c, Code 2003, is amended to read as follows:
29 20 c. In cases where the act committed by an offender
29 21 causes the death of another person, in addition to the
29 22 amount ordered for payment of the victim's pecuniary
29 23 damages, the court shall also order the offender to
29 24 pay at least one hundred fifty thousand dollars in
29 25 restitution to the victim's estate or heirs at law,
29 26 pursuant to the provisions of section 910.3B.
29 27 DIVISION VII
29 28 ECONOMIC DEVELOPMENT APPROPRIATIONS
29 29 Sec. 76. MARKETING APPROPRIATION.
29 30 1. There is appropriated from the grow Iowa fund
29 31 created in section 15G.107, if enacted by 2003 Iowa
29 32 Acts, House File 692 or another Act, to the department
29 33 of economic development, for the fiscal period
29 34 beginning July 1, 2004, and ending June 30, 2010, the
29 35 following amounts, or so much thereof as is necessary,
29 36 to be used for the purpose designated:
29 37 For implementing and administering the marketing
29 38 strategy approved under section 15G.108, if enacted by
29 39 2003 Iowa Acts, House File 692 or another Act:
29 40 FY 2004=2005..................................... $ 10,000,000
29 41 FY 2005=2006..................................... $ 10,000,000
29 42 FY 2006=2007..................................... $ 5,000,000
29 43 FY 2007=2008..................................... $ 5,000,000
29 44 FY 2008=2009..................................... $ 5,000,000
29 45 FY 2009=2010..................................... $ 2,500,000
29 46 2. Notwithstanding section 8.33, moneys that
29 47 remain unexpended at the end of a fiscal year shall
29 48 not revert to any fund but shall remain available for
29 49 expenditure for the designated purposes during the
29 50 succeeding fiscal year.
30 1 Sec. 77. DEPARTMENT OF ECONOMIC DEVELOPMENT
30 2 APPROPRIATION.
30 3 1. There is appropriated from the grow Iowa fund
30 4 created in section 15G.107, if enacted by 2003 Iowa
30 5 Acts, House File 692 or another Act, to the department
30 6 of economic development for the fiscal period
30 7 beginning July 1, 2003, and ending June 30, 2010, the
30 8 following amounts, or so much thereof as is necessary,
30 9 to be used for the purpose designated:
30 10 For programs administered by the department of
30 11 economic development:
30 12 FY 2003=2004...................................... $ 41,575,000
30 13 FY 2004=2005...................................... $ 31,575,000
30 14 FY 2005=2006...................................... $ 35,000,000
30 15 FY 2006=2007...................................... $ 32,500,000
30 16 FY 2007=2008...................................... $ 30,500,000
30 17 FY 2008=2009...................................... $ 13,500,000
30 18 FY 2009=2010...................................... $ 13,500,000
30 19 2. Notwithstanding section 8.33, moneys that
30 20 remain unexpended at the end of a fiscal year shall
30 21 not revert to any fund but shall remain available for
30 22 expenditure for the designated purposes during the
30 23 succeeding fiscal year.
30 24 3. Each year that moneys are appropriated under
30 25 this section, the grow Iowa board shall allocate a
30 26 percentage of the moneys for each of the following
30 27 types of activities:
30 28 a. Business start=ups.
30 29 b. Business expansion.
30 30 c. Business modernization.
30 31 d. Business attraction.
30 32 e. Business retention.
30 33 f. Marketing.
30 34 4. An applicant for moneys appropriated under this
30 35 section shall be required by the department to include
30 36 in the application a statement regarding the intended
30 37 return on investment. A recipient of moneys
30 38 appropriated under this section shall annually submit
30 39 a statement to the department regarding the progress
30 40 achieved on the intended return on investment stated
30 41 in the application. The department, in cooperation
30 42 with the department of revenue and finance, shall
30 43 develop a method of identifying and tracking each new
30 44 job created through financial assistance from moneys
30 45 appropriated under this section.
30 46 5. The department may use moneys appropriated
30 47 under this section to procure technical assistance
30 48 from either the public or private sector, for
30 49 information technology purposes, and for rail, air, or
30 50 river port transportation=related purposes. The use
31 1 of moneys appropriated for rail, air, or river port
31 2 transportation=related purposes must be directly
31 3 related to an economic development project and the
31 4 moneys must be used to leverage other financial
31 5 assistance moneys.
31 6 6. Of the moneys appropriated under this section,
31 7 the department may use one=quarter of one percent for
31 8 administrative purposes.
31 9 7. The grow Iowa board is required to approve or
31 10 deny applications for financial assistance from moneys
31 11 appropriated under this section.
31 12 Sec. 78. UNIVERSITY AND COLLEGE FINANCIAL
31 13 ASSISTANCE APPROPRIATION.
31 14 1. There is appropriated from the grow Iowa fund
31 15 created in section 15G.107, if enacted by 2003 Iowa
31 16 Acts, House File 692 or another Act, to the grow Iowa
31 17 board for the fiscal period beginning July 1, 2003,
31 18 and ending June 30, 2010, the following amounts, or so
31 19 much thereof as is necessary, to be used for the
31 20 purposes designated:
31 21 For financial assistance for institutions of higher
31 22 learning under the control of the state board of
31 23 regents and for accredited private institutions as
31 24 defined in section 261.9 for multiuse, goods
31 25 manufacturing processes approved by the food and drug
31 26 administration of the United States department of
31 27 health and human services, protein purification
31 28 facilities for plant, animal, and chemical
31 29 manufactured proteins; upgrading food and drug
31 30 administration drug approval laboratories in Iowa City
31 31 to a larger multiclient, goods manufacturing processes
31 32 facility; crop and animal livestock facilities for the
31 33 growing of transgenic crops and livestock; and
31 34 advanced laboratory space:
31 35 FY 2003=2004...................................... $ 5,325,000
31 36 FY 2004=2005...................................... $ 5,325,000
31 37 FY 2005=2006...................................... $ 5,325,000
31 38 FY 2006=2007...................................... $ 5,325,000
31 39 FY 2007=2008...................................... $ 5,325,000
31 40 FY 2008=2009...................................... $ 5,325,000
31 41 FY 2009=2010...................................... $ 5,325,000
31 42 2. Notwithstanding section 8.33, moneys that
31 43 remain unexpended at the end of a fiscal year shall
31 44 not revert to any fund but shall remain available for
31 45 expenditure for the designated purposes during the
31 46 succeeding fiscal year.
31 47 3. In the distribution of moneys appropriated
31 48 pursuant to this section, the grow Iowa board shall
31 49 examine the potential for using moneys appropriated
31 50 pursuant to this section to leverage other moneys for
32 1 financial assistance to accredited private
32 2 institutions.
32 3 4. In awarding moneys appropriated pursuant to
32 4 this section, the grow Iowa board shall consider
32 5 whether the purchase of suitable existing
32 6 infrastructure is more cost=efficient than building
32 7 new infrastructure.
32 8 5. An institution of higher learning under the
32 9 control of the state board of regents may apply to use
32 10 financial assistance moneys under this section for
32 11 purposes of a public and private joint venture to
32 12 acquire infrastructure assets or research facilities
32 13 or to leverage moneys in a manner consistent with
32 14 meeting the goals and performance measures provided in
32 15 section 15G.106, if enacted by 2003 Iowa Acts, House
32 16 File 692 or another Act.
32 17 Sec. 79. REHABILITATION PROJECT TAX CREDITS
32 18 APPROPRIATION.
32 19 1. There is appropriated from the grow Iowa fund
32 20 created in section 15G.107, if enacted by 2003 Iowa
32 21 Acts, House File 692 or another Act, to the general
32 22 fund of the state, for the fiscal period beginning
32 23 July 1, 2003, and ending June 30, 2010, the following
32 24 amounts, or so much thereof as is necessary, to be
32 25 used for the purpose designated:
32 26 For payment of tax credits approved pursuant to
32 27 section 404A.4 for projects located in certified
32 28 cultural and entertainment districts:
32 29 FY 2003=2004...................................... $ 700,000
32 30 FY 2004=2005...................................... $ 700,000
32 31 FY 2005=2006...................................... $ 700,000
32 32 FY 2006=2007...................................... $ 700,000
32 33 FY 2007=2008...................................... $ 700,000
32 34 FY 2008=2009...................................... $ 700,000
32 35 FY 2009=2010...................................... $ 700,000
32 36 2. Notwithstanding section 8.33, moneys that
32 37 remain unexpended at the end of a fiscal year shall
32 38 not revert to any fund but shall remain available for
32 39 expenditure for the designated purposes during the
32 40 succeeding fiscal year.
32 41 Sec. 80. LOAN AND CREDIT GUARANTEE FUND
32 42 APPROPRIATION.
32 43 1. There is appropriated from the grow Iowa fund
32 44 created in section 15G.107, if enacted by 2003 Iowa
32 45 Acts, House File 692 or another Act, to the department
32 46 of economic development for the fiscal period
32 47 beginning July 1, 2003, and ending June 30, 2010, the
32 48 following amounts, or so much thereof as is necessary,
32 49 to be used for the purpose designated:
32 50 For deposit in the loan and credit guarantee fund
33 1 created in section 15E.227:
33 2 FY 2003=2004...................................... $ 2,500,000
33 3 FY 2004=2005...................................... $ 7,500,000
33 4 FY 2005=2006...................................... $ 8,575,000
33 5 FY 2006=2007...................................... $ 11,075,000
33 6 FY 2007=2008...................................... $ 13,075,000
33 7 FY 2008=2009...................................... $ 35,075,000
33 8 FY 2009=2010...................................... $ 37,575,000
33 9 2. Notwithstanding section 8.33, moneys that
33 10 remain unexpended at the end of a fiscal year shall
33 11 not revert to any fund but shall remain available for
33 12 expenditure for the designated purpose during the
33 13 succeeding fiscal year.
33 14 Sec. 81. ENDOW IOWA TAX CREDITS.
33 15 1. There is appropriated from the grow Iowa fund
33 16 created in section 15G.107, if enacted by 2003 Iowa
33 17 Acts, House File 692 or another Act, to the general
33 18 fund of the state, for the fiscal period beginning
33 19 July 1, 2003, and ending June 30, 2010, the following
33 20 amounts, or so much thereof as is necessary, to be
33 21 used for the purpose designated:
33 22 For payment of endow Iowa tax credits authorized
33 23 pursuant to section 15E.305:
33 24 FY 2003=2004...................................... $ 200,000
33 25 FY 2004=2005...................................... $ 200,000
33 26 FY 2005=2006...................................... $ 200,000
33 27 FY 2006=2007...................................... $ 200,000
33 28 FY 2007=2008...................................... $ 200,000
33 29 FY 2008=2009...................................... $ 200,000
33 30 FY 2009=2010...................................... $ 200,000
33 31 2. Notwithstanding section 8.33, moneys that
33 32 remain unexpended at the end of a fiscal year shall
33 33 not revert to any fund but shall remain available for
33 34 expenditure for the designated purposes during the
33 35 succeeding fiscal year.
33 36 Sec. 82. ENDOW IOWA GRANTS APPROPRIATION.
33 37 1. There is appropriated from the grow Iowa fund
33 38 created in section 15G.107, if enacted by 2003 Iowa
33 39 Acts, House File 692 or another Act, to the department
33 40 of economic development for the fiscal period
33 41 beginning July 1, 2003, and ending June 30, 2010, the
33 42 following amounts, or so much thereof as is necessary,
33 43 to be used for the purpose designated:
33 44 For endow Iowa grants to lead philanthropic
33 45 entities pursuant to section 15E.304:
33 46 FY 2003=2004...................................... $ 200,000
33 47 FY 2004=2005...................................... $ 200,000
33 48 FY 2005=2006...................................... $ 200,000
33 49 FY 2006=2007...................................... $ 200,000
33 50 FY 2007=2008...................................... $ 200,000
34 1 FY 2008=2009...................................... $ 200,000
34 2 FY 2009=2010...................................... $ 200,000
34 3 2. Notwithstanding section 8.33, moneys that
34 4 remain unexpended at the end of a fiscal year shall
34 5 not revert to any fund but shall remain available for
34 6 expenditure for the designated purposes during the
34 7 succeeding fiscal year.
34 8 Sec. 83. ANTICIPATED FEDERAL MONEYS ==
34 9 APPROPRIATION.
34 10 1. There is appropriated from the fund created by
34 11 section 8.41, for the fiscal period beginning July 1,
34 12 2003, and ending June 30, 2005, the following amounts
34 13 to be used for the purpose designated:
34 14 For deposit in the grow Iowa fund created in
34 15 section 15G.107, if enacted by 2003 Iowa Acts, House
34 16 File 692 or another Act:
34 17 FY 2003=2004...................................... $ 59,000,000
34 18 FY 2004=2005...................................... $ 41,000,000
34 19 2. Moneys appropriated in this section are moneys
34 20 anticipated to be received from the federal government
34 21 for state and local government fiscal relief under the
34 22 federal Jobs and Growth Tax Relief Reconciliation Act
34 23 of 2003 and shall be expended as provided in the
34 24 federal law making the moneys available and in
34 25 conformance with chapter 17A.
34 26 3. Notwithstanding section 8.33, moneys that
34 27 remain unexpended at the end of a fiscal year shall
34 28 not revert to any fund but shall remain available for
34 29 expenditure for the designated purposes during the
34 30 succeeding fiscal year.
34 31 Sec. 84. STREAMLINED SALES AND USE TAX REVENUE ==
34 32 APPROPRIATION.
34 33 1. There is appropriated from the general fund of
34 34 the state from moneys credited to the general fund of
34 35 the state as a result of entering into the streamlined
34 36 sales and use tax agreement, for the fiscal period
34 37 beginning July 1, 2003, and ending June 30, 2010, the
34 38 following amounts to be used for the purpose
34 39 designated:
34 40 For deposit in the grow Iowa fund created in
34 41 section 15G.107, if enacted by 2003 Iowa Acts, House
34 42 File 692 or another Act:
34 43 FY 2003=2004...................................... $ 5,000,000
34 44 FY 2004=2005...................................... $ 23,000,000
34 45 FY 2005=2006...................................... $ 75,000,000
34 46 FY 2006=2007...................................... $ 75,000,000
34 47 FY 2007=2008...................................... $ 75,000,000
34 48 FY 2008=2009...................................... $ 75,000,000
34 49 FY 2009=2010...................................... $ 75,000,000
34 50 2. For purposes of this section, "moneys credited
35 1 to the general fund of the state as a result of
35 2 entering into the streamlined sales and use tax
35 3 agreement" means the amount of sales and use tax
35 4 receipts credited to the general fund of the state
35 5 during a fiscal year that exceeds by two percent or
35 6 more the total sales and use tax receipts credited to
35 7 the general fund of the state during the previous
35 8 fiscal year.
35 9 3. If the moneys credited to the general fund of
35 10 the state as a result of entering into the streamlined
35 11 sales and use tax agreement during a fiscal year total
35 12 less than the amount appropriated in this section, the
35 13 appropriation in this section shall be reduced to
35 14 equal the total amount of the moneys so credited.
35 15 4. Notwithstanding section 8.33, moneys that
35 16 remain unexpended at the end of a fiscal year shall
35 17 not revert to any fund but shall remain available for
35 18 expenditure for the designated purposes during the
35 19 succeeding fiscal year.
35 20 DIVISION VIII
35 21 WORKFORCE=RELATED ISSUES
35 22 Sec. 85. NEW SECTION. 260C.18A WORKFORCE
35 23 TRAINING AND ECONOMIC DEVELOPMENT FUNDS.
35 24 1. a. A workforce training and economic
35 25 development fund is created for each community
35 26 college. Moneys shall be deposited and expended from
35 27 a fund as provided under this section.
35 28 b. Moneys in the funds shall consist of any moneys
35 29 appropriated by the general assembly and any other
35 30 moneys available to and obtained or accepted by the
35 31 department of economic development from federal
35 32 sources or private sources for placement in the funds.
35 33 Notwithstanding section 8.33, moneys in the funds at
35 34 the end of each fiscal year shall not revert to any
35 35 other fund but shall remain in the funds for
35 36 expenditure in subsequent fiscal years.
35 37 2. On July 1 of each year for the fiscal year
35 38 beginning July 1, 2003, and for every fiscal year
35 39 thereafter, moneys from the grow Iowa fund created in
35 40 section 15G.107, if enacted by 2003 Iowa Acts, House
35 41 File 692 or another Act, are appropriated to the
35 42 department of economic development for deposit in the
35 43 workforce training and economic development funds in
35 44 amounts determined pursuant to subsection 3. Moneys
35 45 deposited in the funds and disbursed to community
35 46 colleges for a fiscal year shall be expended for the
35 47 following purposes:
35 48 a. Projects in which an agreement between a
35 49 community college and an employer located within the
35 50 community college's merged area meet all of the
36 1 requirements of the accelerated career education
36 2 program under chapter 260G. However, moneys used by
36 3 the community colleges from the workforce training and
36 4 economic development fund for these projects shall be
36 5 in lieu of the program job credits provided under
36 6 chapter 260G. Projects using moneys from the
36 7 workforce training and economic development fund under
36 8 this paragraph shall be in accordance with rules
36 9 adopted by the department of economic development
36 10 under chapter 260G.
36 11 b. Projects in which an agreement between a
36 12 community college and a business meet all the
36 13 requirements of the Iowa jobs training Act under
36 14 chapter 260F. However, when moneys are provided
36 15 through the grow Iowa fund for such projects, section
36 16 260F.6, subsections 1 and 2, and section 260F.8 shall
36 17 not apply. Projects using moneys from the workforce
36 18 training and economic development fund under this
36 19 paragraph shall be in accordance with rules adopted by
36 20 the department of economic development under chapter
36 21 260F.
36 22 c. For the development and implementation of
36 23 career academies designed to provide new career
36 24 preparation opportunities for high school students
36 25 that are formally linked with postsecondary career and
36 26 technical education programs. Moneys from workforce
36 27 training and economic development funds that are
36 28 expended for purposes of this paragraph shall be in
36 29 accordance with the plan submitted to the department
36 30 of economic development and the grow Iowa board under
36 31 subsection 5. For purposes of this section, "career
36 32 academy" means a program of study that combines a
36 33 minimum of two years of secondary education with an
36 34 associate degree, or the equivalent, career
36 35 preparatory program in a nonduplicative, sequential
36 36 course of study that is standards based, integrates
36 37 academic and technical instruction, utilizes work=
36 38 based and worksite learning where appropriate and
36 39 available, utilizes an individual career planning
36 40 process with parent involvement, and leads to an
36 41 associate degree or postsecondary diploma or
36 42 certificate in a career field that prepares an
36 43 individual for entry and advancement in a high=skill
36 44 and reward career field and further education. The
36 45 state board of education, in conjunction with the
36 46 division of community colleges and workforce
36 47 preparation of the department of education, and in
36 48 consultation with the department of economic
36 49 development, shall adopt administrative rules for the
36 50 development and implementation of such career
37 1 academies pursuant to section 256.11, subsection 5,
37 2 paragraph "h", section 260C.1, and Title II of Pub. L.
37 3 No. 105=332, Carl D. Perkins Vocational and Technical
37 4 Education Act of 1998.
37 5 d. Programs and courses that provide vocational
37 6 and technical training, and programs for in=service
37 7 training and retraining under section 260C.1,
37 8 subsections 2 and 3.
37 9 3. Moneys from the workforce training and economic
37 10 development fund that are expended for purposes of
37 11 this subsection shall be in accordance with the plan
37 12 submitted to the department of economic development
37 13 and the grow Iowa board under subsection 5. The
37 14 maximum cumulative total amount of moneys that may be
37 15 deposited in all the workforce training and economic
37 16 development funds for distribution to community
37 17 colleges in a fiscal year shall be determined as
37 18 follows:
37 19 a. Six million dollars for the fiscal year
37 20 beginning July 1, 2003.
37 21 b. Eleven million dollars for the fiscal year
37 22 beginning July 1, 2004.
37 23 c. Twenty million dollars for the fiscal year
37 24 beginning July 1, 2005.
37 25 d. Twenty million dollars for the fiscal year
37 26 beginning July 1, 2006.
37 27 e. Twenty million dollars for the fiscal year
37 28 beginning July 1, 2007.
37 29 f. Fifteen million dollars for the fiscal year
37 30 beginning July 1, 2008.
37 31 g. Fifteen million dollars for the fiscal year
37 32 beginning July 1, 2009.
37 33 4. The department of economic development shall
37 34 allocate the moneys appropriated pursuant to this
37 35 section to the community college workforce training
37 36 and economic development funds utilizing the same
37 37 distribution formula used for the allocation of state
37 38 general aid to the community colleges.
37 39 5. Each community college shall do all of the
37 40 following:
37 41 a. Adopt a two=year workforce training and
37 42 economic development fund plan outlining the community
37 43 college's proposed use of moneys appropriated under
37 44 subsection 2.
37 45 b. Update the two=year plan annually.
37 46 c. Prepare an annual progress report on the two=
37 47 year plan's implementation.
37 48 d. Annually submit the two=year plan and progress
37 49 report to the department of economic development in a
37 50 manner prescribed by rules adopted by the department
38 1 pursuant to chapter 17A and annually file a copy of
38 2 the plan and progress report with the grow Iowa board.
38 3 6. Any individual project using over one million
38 4 dollars of moneys from a workforce training and
38 5 economic development fund shall require prior approval
38 6 from the grow Iowa board.
38 7 Sec. 86. NEW SECTION. 260F.9 JOB RETENTION
38 8 PROGRAM AND FUND.
38 9 1. A job retention fund is created in the state
38 10 treasury under the control of the department of
38 11 economic development to encourage the retention of
38 12 existing jobs and income that would otherwise be lost
38 13 and encourage large businesses to remain in the state.
38 14 Moneys shall be deposited and expended from the fund
38 15 as provided in this section.
38 16 2. There is appropriated from the grow Iowa fund
38 17 created in section 15G.107, if enacted by 2003 Iowa
38 18 Acts, House File 692 or another Act, to the department
38 19 of economic development for the fiscal period
38 20 beginning July 1, 2003, and ending June 30, 2006, the
38 21 following amounts to be used for funding of job
38 22 retention programs and agreements authorized by the
38 23 department and participating community colleges as
38 24 provided in this section:
38 25 a. One million dollars for the fiscal year
38 26 beginning July 1, 2003.
38 27 b. One million dollars for the fiscal year
38 28 beginning July 1, 2004.
38 29 c. One million dollars for the fiscal year
38 30 beginning July 1, 2005.
38 31 3. Notwithstanding section 8.33, moneys that
38 32 remain unexpended at the end of a fiscal year shall
38 33 not revert to any fund but shall remain available for
38 34 expenditure for the designated purposes during the
38 35 succeeding fiscal year.
38 36 4. The department of economic development shall
38 37 administer the allocation of moneys in the job
38 38 retention fund and shall administer the job retention
38 39 program. The department shall adopt rules pursuant to
38 40 chapter 17A necessary for the administration of this
38 41 section. By January 15 of each year, the department
38 42 shall submit a written report to the general assembly
38 43 and the governor regarding the activities of the job
38 44 retention program during the previous calendar year.
38 45 5. A community college and the department may
38 46 enter into an agreement to establish a job retention
38 47 project. A job retention project agreement shall
38 48 include, but not be limited to, the following:
38 49 a. The date of the agreement.
38 50 b. The anticipated number of employees to be
39 1 trained.
39 2 c. The estimated cost of training.
39 3 d. A statement regarding the number of employees
39 4 employed by the participating business on the date of
39 5 the agreement which must equal at least the lesser of
39 6 one thousand employees or four percent or more of the
39 7 county's resident labor force based on the most recent
39 8 annual labor force statistics from the department of
39 9 workforce development.
39 10 e. A commitment that the participating business
39 11 shall invest at least fifteen million dollars to
39 12 retool the workplace and upgrade the facilities of the
39 13 participating business.
39 14 f. A commitment that the participating business
39 15 shall not move the business operation out of this
39 16 state or close the business operation for at least ten
39 17 years following the date of the agreement.
39 18 g. Other criteria established by the department of
39 19 economic development.
39 20 6. A job retention project agreement entered into
39 21 pursuant to this section must be approved by the board
39 22 of trustees of the applicable community college, the
39 23 department of economic development, and the
39 24 participating business.
39 25 Sec. 87. NEW SECTION. 260F.101 REPORTING.
39 26 A community college entering into an agreement
39 27 pursuant to this chapter shall submit an annual
39 28 written report by the end of each calendar year with
39 29 the grow Iowa board created in section 15G.102, if
39 30 enacted by 2003 Iowa Acts, House File 692 or another
39 31 Act. The report shall provide information regarding
39 32 how the agreement affects the achievement of the goals
39 33 and performance measures provided in section 15G.106,
39 34 if enacted by 2003 Iowa Acts, House File 692 or
39 35 another Act.
39 36 Sec. 88. Section 260G.3, subsection 2, Code 2003,
39 37 is amended to read as follows:
39 38 2. An agreement may include reasonable and
39 39 necessary provisions to implement the accelerated
39 40 career education program. If an agreement that
39 41 utilizes program job credits is entered into, the
39 42 community college and the employer shall notify the
39 43 department of revenue and finance as soon as possible.
39 44 The community college shall also file a copy of the
39 45 agreement with the department of economic development
39 46 as required in section 260G.4B. The agreement shall
39 47 provide for program costs, including deferred costs,
39 48 which may be paid from any of the following sources:
39 49 a. Program job credits which the employer receives
39 50 based on the number of program job positions agreed to
40 1 by the employer to be available under the agreement.
40 2 b. Cash or in=kind contributions by the employer
40 3 toward the program cost. At a minimum, the employer
40 4 contribution shall be twenty percent of the program
40 5 costs.
40 6 c. Tuition, student fees, or special charges fixed
40 7 by the board of directors to defray program costs.
40 8 d. Guarantee by the employer of payments to be
40 9 received under paragraphs "a" and "b".
40 10 e. Moneys from a workforce training and economic
40 11 development fund created in section 260C.18A, based on
40 12 the number of program job positions agreed to by the
40 13 employer to be available under the agreement, the
40 14 amount of which shall be calculated in the same manner
40 15 as the program job credits provided for in section
40 16 260G.4A.
40 17 Sec. 89. NEW SECTION. 260G.101 REPORTING.
40 18 A community college entering into an agreement
40 19 pursuant to this chapter shall submit an annual
40 20 written report by the end of each calendar year with
40 21 the grow Iowa board created in section 15G.102, if
40 22 enacted by 2003 Iowa Acts, House File 692 or another
40 23 Act. The report shall provide information regarding
40 24 how the agreement affects the achievement of the goals
40 25 and performance measures provided in section 15G.106,
40 26 if enacted by 2003 Iowa Acts, House File 692 or
40 27 another Act.
40 28 DIVISION IX
40 29 LOAN AND CREDIT GUARANTEE FUND
40 30 Sec. 90. NEW SECTION. 15E.227 LOAN AND CREDIT
40 31 GUARANTEE FUND.
40 32 1. A loan and credit guarantee fund is created and
40 33 established as a separate and distinct fund in the
40 34 state treasury. Moneys in the fund shall only be used
40 35 for purposes provided in this section. The moneys in
40 36 the fund are appropriated to the department to be used
40 37 for all of the following purposes:
40 38 a. Payment of claims pursuant to loan and credit
40 39 guarantee agreements entered into under this division.
40 40 b. Payment of administrative costs of the
40 41 department for actual and necessary administrative
40 42 expenses incurred by the department in administering
40 43 the program.
40 44 c. Purchase or buyout of superior or prior liens,
40 45 mortgages, or security interests.
40 46 2. Moneys in the loan and credit guarantee fund
40 47 shall consist of all of the following:
40 48 a. Moneys appropriated by the general assembly for
40 49 that purpose and any other moneys available to and
40 50 obtained or accepted by the department for placement
41 1 in the fund.
41 2 b. Proceeds from collateral assigned to the
41 3 department, fees for guarantees, gifts, and moneys
41 4 from any grant made to the fund by any federal agency.
41 5 c. Moneys appropriated from the grow Iowa fund
41 6 created in section 15G.107, if enacted by 2003 Iowa
41 7 Acts, House File 692 or another Act.
41 8 3. Moneys in the fund are not subject to section
41 9 8.33. Notwithstanding section 12C.7, interest or
41 10 earnings on the moneys in the fund shall be credited
41 11 to the fund.
41 12 4. a. The department shall only pledge moneys in
41 13 the loan and credit guarantee fund and not any other
41 14 moneys of the department. The department may pledge
41 15 an amount not to exceed a total of any of the
41 16 following amounts of moneys in the fund to assure the
41 17 repayment of loan and credit guarantees or other
41 18 extensions of credit made to or on behalf of qualified
41 19 businesses or targeted industry businesses for
41 20 eligible project costs.
41 21 (1) Two million five hundred thousand dollars for
41 22 the fiscal year beginning July 1, 2003.
41 23 (2) Seven million five hundred thousand dollars
41 24 for the fiscal year beginning July 1, 2004.
41 25 (3) Eight million five hundred seventy=five
41 26 thousand dollars for the fiscal year beginning July 1,
41 27 2005.
41 28 (4) Eleven million seventy=five thousand dollars
41 29 for the fiscal year beginning July 1, 2006.
41 30 (5) Thirteen million seventy=five thousand dollars
41 31 for the fiscal year beginning July 1, 2007.
41 32 (6) Thirty=five million seventy=five thousand
41 33 dollars for the fiscal year beginning July 1, 2008.
41 34 (7) Thirty=seven million five hundred seventy=five
41 35 thousand dollars for the fiscal year beginning July 1,
41 36 2009.
41 37 b. The department shall not pledge the credit or
41 38 taxing power of this state or any political
41 39 subdivision of this state or make debts payable out of
41 40 any moneys except for those in the loan and credit
41 41 guarantee fund.
41 42 DIVISION X
41 43 UNIVERSITY=BASED RESEARCH UTILIZATION
41 44 PROGRAM APPROPRIATION
41 45 Sec. 91. NEW SECTION. 262B.12 APPROPRIATION.
41 46 On July 1 of each year there is appropriated from
41 47 the general fund of the state to each university under
41 48 the control of the state board of regents, an amount
41 49 equal to the amount determined by the department of
41 50 economic development pursuant to section 262B.11,
42 1 subsection 4, paragraph "c", subparagraph (2), if
42 2 enacted by 2003 Iowa Acts, House File 692 or another
42 3 Act.
42 4 DIVISION XI
42 5 ENDOW IOWA TAX CREDIT
42 6 Sec. 92. NEW SECTION. 15E.305 ENDOW IOWA TAX
42 7 CREDIT.
42 8 1. For tax years beginning on or after January 1,
42 9 2003, a tax credit shall be allowed against the taxes
42 10 imposed in chapter 422, divisions II, III, and V, and
42 11 in chapter 432, and against the moneys and credits tax
42 12 imposed in section 533.24 equal to twenty percent of a
42 13 taxpayer's endowment gift to a qualified community
42 14 foundation. An individual may claim a tax credit
42 15 under this section of a partnership, limited liability
42 16 company, S corporation, estate, or trust electing to
42 17 have income taxed directly to the individual. The
42 18 amount claimed by the individual shall be based upon
42 19 the pro rata share of the individual's earnings from
42 20 the partnership, limited liability company, S
42 21 corporation, estate, or trust. A tax credit shall be
42 22 allowed only for an endowment gift made to a qualified
42 23 community foundation for a permanent endowment fund
42 24 established to benefit a charitable cause in this
42 25 state. Any tax credit in excess of the taxpayer's tax
42 26 liability for the tax year may be credited to the tax
42 27 liability for the following five years or until
42 28 depleted, whichever occurs first. A tax credit shall
42 29 not be carried back to a tax year prior to the tax
42 30 year in which the taxpayer claims the tax credit.
42 31 2. The aggregate amount of tax credits authorized
42 32 pursuant to this section shall not exceed a total of
42 33 two million dollars. The maximum amount of tax
42 34 credits granted to a taxpayer shall not exceed five
42 35 percent of the aggregate amount of tax credits
42 36 authorized.
42 37 3. A tax credit shall not be transferable to any
42 38 other taxpayer.
42 39 4. A tax credit shall not be authorized pursuant
42 40 to this section after December 31, 2005.
42 41 5. The department shall develop a system for
42 42 registration and authorization of tax credits under
42 43 this section and shall control the distribution of all
42 44 tax credits to taxpayers providing an endowment gift
42 45 subject to this section. The department shall adopt
42 46 administrative rules pursuant to chapter 17A for the
42 47 qualification and administration of endowment gifts.
42 48 Sec. 93. NEW SECTION. 422.11H ENDOW IOWA TAX
42 49 CREDIT.
42 50 The tax imposed under this division, less the
43 1 credits allowed under sections 422.12 and 422.12B,
43 2 shall be reduced by an endow Iowa tax credit
43 3 authorized pursuant to section 15E.305.
43 4 Sec. 94. Section 422.33, Code 2003, is amended by
43 5 adding the following new subsection:
43 6 NEW SUBSECTION. 14. The taxes imposed under this
43 7 division shall be reduced by an endow Iowa tax credit
43 8 authorized pursuant to section 15E.305.
43 9 Sec. 95. Section 422.60, Code 2003, is amended by
43 10 adding the following new subsection:
43 11 NEW SUBSECTION. 7. The taxes imposed under this
43 12 division shall be reduced by an endow Iowa tax credit
43 13 authorized pursuant to section 15E.305.
43 14 Sec. 96. NEW SECTION. 432.12D ENDOW IOWA TAX
43 15 CREDIT.
43 16 The tax imposed under this chapter shall be reduced
43 17 by an endow Iowa tax credit authorized pursuant to
43 18 section 15E.305.
43 19 Sec. 97. Section 533.24, Code 2003, is amended by
43 20 adding the following new unnumbered paragraph:
43 21 NEW UNNUMBERED PARAGRAPH. The moneys and credits
43 22 tax imposed under this section shall be reduced by an
43 23 endow Iowa tax credit authorized pursuant to section
43 24 15E.305.
43 25 Sec. 98. EFFECTIVE AND RETROACTIVE APPLICABILITY
43 26 DATES. This division of this Act, being deemed of
43 27 immediate importance, takes effect upon enactment and
43 28 is retroactively applicable to January 1, 2003, for
43 29 tax years beginning on or after that date.
43 30 DIVISION XII
43 31 REHABILITATION PROJECT TAX CREDITS
43 32 Sec. 99. Section 404A.4, subsection 4, Code 2003,
43 33 is amended to read as follows:
43 34 4. The total amount of tax credits that may be
43 35 approved for a fiscal year under this chapter shall
43 36 not exceed two million four hundred thousand dollars.
43 37 For the fiscal years beginning July 1, 2003, and July
43 38 1, 2004, an additional two million dollars of tax
43 39 credits may be approved each fiscal year for purposes
43 40 of projects located in cultural and entertainment
43 41 districts certified pursuant to section 303.3B, if
43 42 enacted by 2003 Iowa Acts, House File 692 or another
43 43 Act. Any of the additional tax credits allocated for
43 44 projects located in certified cultural and
43 45 entertainment districts that are not approved during a
43 46 fiscal year may be carried over to the succeeding
43 47 fiscal year. Tax credit certificates shall be issued
43 48 on the basis of the earliest awarding of
43 49 certifications of completion as provided in subsection
43 50 1. The departments of economic development and
44 1 revenue and finance shall each adopt rules to jointly
44 2 administer this subsection and shall provide by rule
44 3 for the method to be used to determine for which
44 4 fiscal year the tax credits are approved.
44 5 DIVISION XIII
44 6 STATE ASSISTANCE FOR EDUCATIONAL INFRASTRUCTURE FUND
44 7 Sec. 100. Section 8.57, subsection 5, Code 2003,
44 8 is amended by adding the following new paragraph:
44 9 NEW PARAGRAPH. f. There is appropriated from the
44 10 rebuild Iowa infrastructure fund to the state
44 11 assistance for educational infrastructure fund created
44 12 in 2003 Iowa Acts, House File 692 or another Act, for
44 13 each fiscal year of the fiscal period beginning July
44 14 1, 2004, and ending June 30, 2014, the amount of the
44 15 moneys in excess of the first forty=seven million
44 16 dollars credited to the rebuild Iowa infrastructure
44 17 fund during the fiscal year, not to exceed ten million
44 18 dollars.
44 19 Sec. 101. NEW SECTION. 292A.3A APPROPRIATION.
44 20 There is appropriated from the general fund of the
44 21 state from moneys credited to the general fund of the
44 22 state as a result of the state entering into the
44 23 streamlined sales and use tax agreement to the state
44 24 assistance for educational infrastructure fund created
44 25 in 2003 Iowa Acts, House File 692 or another Act, the
44 26 sum of five million dollars for each fiscal year of
44 27 the fiscal period beginning July 1, 2004, and ending
44 28 June 30, 2014. The appropriation in this section
44 29 shall be made after the appropriation from the same
44 30 source to the grow Iowa fund created in 2003 Iowa
44 31 Acts, House File 692 or another Act. For purposes of
44 32 this section, "moneys credited to the general fund of
44 33 the state as a result of entering into the streamlined
44 34 sales and use tax agreement" means the amount of sales
44 35 and use tax receipts credited to the general fund of
44 36 the state during a fiscal year that exceeds by two
44 37 percent or more the total sales and use tax receipts
44 38 credited to the general fund of the state during the
44 39 previous fiscal year.
44 40 DIVISION XIV
44 41 REPEALS
44 42 Sec. 102. The divisions of this Act designated
44 43 economic development appropriations, workforce=related
44 44 issues, loan and credit guarantee fund, university=
44 45 based research utilization program appropriation,
44 46 endow Iowa tax credit, and rehabilitation project tax
44 47 credits are repealed effective June 30, 2010.
44 48 DIVISION XV
44 49 STREAMLINED SALES AND USE TAXES
44 50 SUBCHAPTER I
45 1 DEFINITIONS
45 2 Sec. 103. NEW SECTION. 423.1 DEFINITIONS.
45 3 As used in this chapter the following words, terms,
45 4 and phrases have the meanings ascribed to them by this
45 5 section, except where the context clearly indicates
45 6 that a different meaning is intended:
45 7 1. "Agent" means a person appointed by a seller to
45 8 represent the seller before the member states.
45 9 2. "Agreement" means the streamlined sales and use
45 10 tax agreement authorized by subchapter IV of this
45 11 chapter to provide a mechanism for establishing and
45 12 maintaining a cooperative, simplified system for the
45 13 application and administration of sales and use taxes.
45 14 3. "Agricultural production" includes the
45 15 production of flowering, ornamental, or vegetable
45 16 plants in commercial greenhouses or otherwise, and
45 17 production from aquaculture. "Agricultural products"
45 18 includes flowering, ornamental, or vegetable plants
45 19 and those products of aquaculture.
45 20 4. "Business" includes any activity engaged in by
45 21 any person or caused to be engaged in by the person
45 22 with the object of gain, benefit, or advantage, either
45 23 direct or indirect.
45 24 5. "Certificate of title" means a certificate of
45 25 title issued for a vehicle or for manufactured housing
45 26 under chapter 321.
45 27 6. "Certified automated system" means software
45 28 certified under the agreement to calculate the tax
45 29 imposed by each jurisdiction on a transaction,
45 30 determine the amount of tax to remit to the
45 31 appropriate state, and maintain a record of the
45 32 transaction.
45 33 7. "Certified service provider" means an agent
45 34 certified under the agreement to perform all of a
45 35 seller's sales or use tax functions, other than the
45 36 seller's obligation to remit tax on its own purchases.
45 37 8. "Computer" means an electronic device that
45 38 accepts information in digital or similar form and
45 39 manipulates the information for a result based on a
45 40 sequence of instructions.
45 41 9. "Computer software" means a set of coded
45 42 instructions designed to cause a computer or automatic
45 43 data processing equipment to perform a task.
45 44 10. "Delivered electronically" means delivered to
45 45 the purchaser by means other than tangible storage
45 46 media.
45 47 11. "Delivery charges" means charges assessed by a
45 48 seller of personal property or services for
45 49 preparation and delivery to a location designated by
45 50 the purchaser of personal property or services
46 1 including, but not limited to, transportation,
46 2 shipping, postage, handling, crating, and packing
46 3 charges.
46 4 12. "Department" means the department of revenue
46 5 and finance.
46 6 13. "Direct mail" means printed material delivered
46 7 or distributed by United States mail or other delivery
46 8 service to a mass audience or to addressees on a
46 9 mailing list provided by the purchaser or at the
46 10 direction of the purchaser when the cost of the items
46 11 is not billed directly to the recipients. "Direct
46 12 mail" includes tangible personal property supplied
46 13 directly or indirectly by the purchaser to the direct
46 14 mail seller for inclusion in the package containing
46 15 the printed material. "Direct mail" does not include
46 16 multiple items of printed material delivered to a
46 17 single address.
46 18 14. "Director" means the director of revenue and
46 19 finance.
46 20 15. "Electronic" means relating to technology
46 21 having electrical, digital, magnetic, wireless,
46 22 optical, electromagnetic, or similar capabilities.
46 23 16. "Farm deer" means the same as defined in
46 24 section 189A.2.
46 25 17. "Farm machinery and equipment" means machinery
46 26 and equipment used in agricultural production.
46 27 18. "First use of a service". A "first use of a
46 28 service" occurs, for the purposes of this chapter,
46 29 when a service is rendered, furnished, or performed in
46 30 Iowa or if rendered, furnished, or performed outside
46 31 of Iowa, when the product or result of the service is
46 32 used in Iowa.
46 33 19. "Goods, wares, or merchandise" means the same
46 34 as tangible personal property.
46 35 20. "Governing board" means the group comprised of
46 36 representatives of the member states of the agreement
46 37 which is created by the agreement to be responsible
46 38 for the agreement's administration and operation.
46 39 21. "Installed purchase price" is the amount
46 40 charged, valued in money whether paid in money or
46 41 otherwise, by a building contractor to convert
46 42 manufactured housing from tangible personal property
46 43 into realty. "Installed purchase price" includes, but
46 44 is not limited to, amounts charged for installing a
46 45 foundation and electrical and plumbing hookups.
46 46 "Installed purchase price" excludes any amount charged
46 47 for landscaping in connection with the conversion.
46 48 22. "Lease or rental".
46 49 a. "Lease or rental" means any transfer of
46 50 possession or control of tangible personal property
47 1 for a fixed or indeterminate term for consideration.
47 2 A "lease or rental" may include future options to
47 3 purchase or extend.
47 4 b. "Lease or rental" includes agreements covering
47 5 motor vehicles and trailers when the amount of
47 6 consideration may be increased or decreased by
47 7 reference to the amount realized upon sale or
47 8 disposition of the property as defined in 26 U.S.C. }
47 9 7701(h)(1).
47 10 c. "Lease or rental" does not include any of the
47 11 following:
47 12 (1) A transfer of possession or control of
47 13 property under a security agreement or deferred
47 14 payment plan that requires the transfer of title upon
47 15 completion of the required payments.
47 16 (2) A transfer of possession or control of
47 17 property under an agreement that requires the transfer
47 18 of title upon completion of required payments, and
47 19 payment of any option price does not exceed the
47 20 greater of one hundred dollars or one percent of the
47 21 total required payments.
47 22 (3) Providing tangible personal property along
47 23 with an operator for a fixed or indeterminate period
47 24 of time. A condition of this exclusion is that the
47 25 operator is necessary for the equipment to perform as
47 26 designed. For the purpose of this subparagraph, an
47 27 operator must do more than maintain, inspect, or set
47 28 up the tangible personal property.
47 29 d. This definition shall be used for sales and use
47 30 tax purposes regardless of whether a transaction is
47 31 characterized as a lease or rental under generally
47 32 accepted accounting principles, the Internal Revenue
47 33 Code, the Uniform Commercial Code, or other provisions
47 34 of federal, state, or local law.
47 35 23. "Livestock" includes but is not limited to an
47 36 animal classified as an ostrich, rhea, emu, bison, or
47 37 farm deer.
47 38 24. "Manufactured housing" means "manufactured
47 39 home" as defined in section 321.1.
47 40 25. "Member state" is any state which has signed
47 41 the agreement.
47 42 26. "Mobile home" means "manufactured or mobile
47 43 home" as defined in section 321.1.
47 44 27. "Model 1 seller" is a seller that has selected
47 45 a certified service provider as its agent to perform
47 46 all the seller's sales and use tax functions, other
47 47 than the seller's obligation to remit tax on its own
47 48 purchases.
47 49 28. "Model 2 seller" is a seller that has selected
47 50 a certified automated system to perform part of its
48 1 sales and use tax functions, but retains
48 2 responsibility for remitting the tax.
48 3 29. "Model 3 seller" is a seller that has sales in
48 4 at least five member states, has total annual sales
48 5 revenue of at least five hundred million dollars, has
48 6 a proprietary system that calculates the amount of tax
48 7 due each jurisdiction, and has entered into a
48 8 performance agreement with the member states that
48 9 establishes a tax performance standard for the seller.
48 10 As used in this definition, a "seller" includes an
48 11 affiliated group of sellers using the same proprietary
48 12 system.
48 13 30. "Nonresidential commercial operations" means
48 14 industrial, commercial, mining, or agricultural
48 15 operations, whether for profit or not, but does not
48 16 include apartment complexes or mobile home parks.
48 17 31. "Not registered under the agreement" means
48 18 lack of registration by a seller with the member
48 19 states under the central registration system
48 20 referenced in section 423.11, subsection 4.
48 21 32. "Person" means an individual, trust, estate,
48 22 fiduciary, partnership, limited liability company,
48 23 limited liability partnership, corporation, or any
48 24 other legal entity.
48 25 33. "Place of business" means any warehouse,
48 26 store, place, office, building, or structure where
48 27 goods, wares, or merchandise are offered for sale at
48 28 retail or where any taxable amusement is conducted, or
48 29 each office where gas, water, heat, communication, or
48 30 electric services are offered for sale at retail.
48 31 When a retailer or amusement operator sells
48 32 merchandise by means of vending machines or operates
48 33 music or amusement devices by coin=operated machines
48 34 at more than one location within the state, the
48 35 office, building, or place where the books, papers,
48 36 and records of the taxpayer are kept shall be deemed
48 37 to be the taxpayer's place of business.
48 38 34. "Prewritten computer software" includes
48 39 software designed and developed by the author or other
48 40 creator to the specifications of a specific purchaser
48 41 when it is sold to a person other than the purchaser.
48 42 The combining of two or more prewritten computer
48 43 software programs or prewritten portions of prewritten
48 44 programs does not cause the combination to be other
48 45 than prewritten computer software. "Prewritten
48 46 computer software" also means computer software,
48 47 including prewritten upgrades, which is not designed
48 48 and developed by the author or other creator to the
48 49 specifications of a specific purchaser.
48 50 When a person modifies or enhances computer
49 1 software of which the person is not the author or
49 2 creator, the person shall be deemed to be the author
49 3 or creator only of such person's modifications or
49 4 enhancements. Prewritten computer software or a
49 5 prewritten portion of the prewritten software that is
49 6 modified or enhanced to any degree, when such
49 7 modification or enhancement is designed and developed
49 8 to the specifications of a specific purchaser, remains
49 9 prewritten computer software. However, when there is
49 10 a reasonable, separately stated charge or an invoice
49 11 or other statement of the price given to the purchaser
49 12 for such modification or enhancement, such
49 13 modification or enhancement shall not constitute
49 14 prewritten computer software.
49 15 35. "Property purchased for resale in connection
49 16 with the performance of a service" means property
49 17 which is purchased for resale in connection with the
49 18 rendition, furnishing, or performance of a service by
49 19 a person who renders, furnishes, or performs the
49 20 service if all of the following occur:
49 21 a. The provider and user of the service intend
49 22 that a sale of the property will occur.
49 23 b. The property is transferred to the user of the
49 24 service in connection with the performance of the
49 25 service in a form or quantity capable of a fixed or
49 26 definite price value.
49 27 c. The sale is evidenced by a separate charge for
49 28 the identifiable piece of property.
49 29 36. "Purchase" means any transfer, exchange, or
49 30 barter, conditional or otherwise, in any manner or by
49 31 any means whatsoever, for a consideration.
49 32 37. "Purchase price" means the same as "sales
49 33 price" as defined in this section.
49 34 38. "Purchaser" is a person to whom a sale of
49 35 personal property is made or to whom a service is
49 36 furnished.
49 37 39. "Receive" and "receipt" mean any of the
49 38 following:
49 39 a. Taking possession of tangible personal
49 40 property.
49 41 b. Making first use of a service.
49 42 c. Taking possession or making first use of
49 43 digital goods, whichever comes first.
49 44 "Receive" and "receipt" do not include possession
49 45 by a shipping company on behalf of a purchaser.
49 46 40. "Registered under the agreement" means
49 47 registration by a seller under the central
49 48 registration system referenced in section 423.11,
49 49 subsection 4.
49 50 41. "Relief agency" means the state, any county,
50 1 city and county, city, or district thereof, or any
50 2 agency engaged in actual relief work.
50 3 42. "Retailer" means and includes every person
50 4 engaged in the business of selling tangible personal
50 5 property or taxable services at retail, or the
50 6 furnishing of gas, electricity, water, or
50 7 communication service, and tickets or admissions to
50 8 places of amusement and athletic events or operating
50 9 amusement devices or other forms of commercial
50 10 amusement from which revenues are derived. However,
50 11 when in the opinion of the director it is necessary
50 12 for the efficient administration of this chapter to
50 13 regard any salespersons, representatives, truckers,
50 14 peddlers, or canvassers as agents of the dealers,
50 15 distributors, supervisors, employers, or persons under
50 16 whom they operate or from whom they obtain tangible
50 17 personal property sold by them irrespective of whether
50 18 or not they are making sales on their own behalf or on
50 19 behalf of such dealers, distributors, supervisors,
50 20 employers, or persons, the director may so regard
50 21 them, and may regard such dealers, distributors,
50 22 supervisors, employers, or persons as retailers for
50 23 the purposes of this chapter. "Retailer" includes a
50 24 seller obligated to collect sales or use tax.
50 25 43. "Retailer maintaining a place of business in
50 26 this state" or any like term includes any retailer
50 27 having or maintaining within this state, directly or
50 28 by a subsidiary, an office, distribution house, sales
50 29 house, warehouse, or other place of business, or any
50 30 representative operating within this state under the
50 31 authority of the retailer or its subsidiary,
50 32 irrespective of whether that place of business or
50 33 representative is located here permanently or
50 34 temporarily, or whether the retailer or subsidiary is
50 35 admitted to do business within this state pursuant to
50 36 chapter 490.
50 37 44. "Retailers who are not model sellers" means
50 38 all retailers other than model 1, model 2, or model 3
50 39 sellers.
50 40 45. "Retail sale" or "sale at retail" means any
50 41 sale, lease, or rental for any purpose other than
50 42 resale, sublease, or subrent.
50 43 46. "Sales" or "sale" means any transfer,
50 44 exchange, or barter, conditional or otherwise, in any
50 45 manner or by any means whatsoever, for consideration.
50 46 47. "Sales price" applies to the measure subject
50 47 to sales tax.
50 48 a. "Sales price" means the total amount of
50 49 consideration, including cash, credit, property, and
50 50 services, for which personal property or services are
51 1 sold, leased, or rented, valued in money, whether
51 2 received in money or otherwise, without any deduction
51 3 for any of the following:
51 4 (1) The seller's cost of the property sold.
51 5 (2) The cost of materials used, labor or service
51 6 cost, interest, losses, all costs of transportation to
51 7 the seller, all taxes imposed on the seller, and any
51 8 other expenses of the seller.
51 9 (3) Charges by the seller for any services
51 10 necessary to complete the sale, other than delivery
51 11 and installation charges.
51 12 (4) Delivery charges.
51 13 (5) Installation charges.
51 14 (6) The value of exempt personal property given to
51 15 the purchaser where taxable and exempt personal
51 16 property have been bundled together and sold by the
51 17 seller as a single product or piece of merchandise.
51 18 (7) Credit for any trade=in authorized by section
51 19 423.3, subsection 58.
51 20 b. "Sales price" does not include:
51 21 (1) Discounts, including cash, term, or coupons
51 22 that are not reimbursed by a third party that are
51 23 allowed by a seller and taken by a purchaser on a
51 24 sale.
51 25 (2) Interest, financing, and carrying charges from
51 26 credit extended on the sale of personal property or
51 27 services, if the amount is separately stated on the
51 28 invoice, bill of sale, or similar document given to
51 29 the purchaser.
51 30 (3) Any taxes legally imposed directly on the
51 31 consumer that are separately stated on the invoice,
51 32 bill of sale, or similar document given to the
51 33 purchaser.
51 34 (4) The amounts received for charges included in
51 35 paragraph "a", subparagraphs (3) through (7), if they
51 36 are separately contracted for and separately stated on
51 37 the invoice, billing, or similar document given to the
51 38 purchaser.
51 39 48. "Sales tax" means the tax levied under
51 40 subchapter II of this chapter.
51 41 49. "Seller" means any person making sales,
51 42 leases, or rentals of personal property or services.
51 43 50. "Services" means all acts or services
51 44 rendered, furnished, or performed, other than services
51 45 used in processing of tangible personal property for
51 46 use in retail sales or services, for an employer, as
51 47 defined in section 422.4, subsection 3, for a valuable
51 48 consideration by any person engaged in any business or
51 49 occupation specifically enumerated in section 423.2.
51 50 The tax shall be due and collectible when the service
52 1 is rendered, furnished, or performed for the ultimate
52 2 user of the service.
52 3 51. "Services used in the processing of tangible
52 4 personal property" includes the reconditioning or
52 5 repairing of tangible personal property of the type
52 6 normally sold in the regular course of the retailer's
52 7 business and which is held for sale.
52 8 52. "State" means any state of the United States
52 9 and the District of Columbia.
52 10 53. "System" means the central electronic
52 11 registration system maintained by Iowa and other
52 12 states which are signatories to the agreement.
52 13 54. "Tangible personal property" means personal
52 14 property that can be seen, weighed, measured, felt, or
52 15 touched, or that is in any other manner perceptible to
52 16 the senses. "Tangible personal property" includes
52 17 electricity, water, gas, steam, and prewritten
52 18 computer software.
52 19 55. "Taxpayer" includes any person who is subject
52 20 to a tax imposed by this chapter, whether acting on
52 21 the person's own behalf or as a fiduciary.
52 22 56. "Trailer" shall mean every trailer, as is now
52 23 or may be hereafter so defined by chapter 321, which
52 24 is required to be registered or is subject only to the
52 25 issuance of a certificate of title under chapter 321.
52 26 57. "Use" means and includes the exercise by any
52 27 person of any right or power over tangible personal
52 28 property incident to the ownership of that property.
52 29 A retailer's or building contractor's sale of
52 30 manufactured housing for use in this state, whether in
52 31 the form of tangible personal property or of realty,
52 32 is a use of that property for the purposes of this
52 33 chapter.
52 34 58. "Use tax" means the tax levied under
52 35 subchapter III of this chapter for which the retailer
52 36 collects and remits tax to the department.
52 37 59. "User" means the immediate recipient of the
52 38 services who is entitled to exercise a right of power
52 39 over the product of such services.
52 40 60. "Value of services" means the price to the
52 41 user exclusive of any direct tax imposed by the
52 42 federal government or by this chapter.
52 43 61. "Vehicles subject to registration" means any
52 44 vehicle subject to registration pursuant to section
52 45 321.18.
52 46 SUBCHAPTER II
52 47 SALES TAX
52 48 Sec. 104. NEW SECTION. 423.2 TAX IMPOSED.
52 49 1. There is imposed a tax of five percent upon the
52 50 sales price of all sales of tangible personal
53 1 property, consisting of goods, wares, or merchandise,
53 2 sold at retail in the state to consumers or users
53 3 except as otherwise provided in this subchapter.
53 4 a. For the purposes of this subchapter, sales of
53 5 the following services are treated as if they were
53 6 sales of tangible personal property:
53 7 (1) Sales of engraving, photography, retouching,
53 8 printing, and binding services.
53 9 (2) Sales of vulcanizing, recapping, and
53 10 retreading services.
53 11 (3) Sales of prepaid telephone calling cards and
53 12 prepaid authorization numbers.
53 13 (4) Sales of optional service or warranty
53 14 contracts, except residential service contracts
53 15 regulated under chapter 523C, which provide for the
53 16 furnishing of labor and materials and require the
53 17 furnishing of any taxable service enumerated under
53 18 this section. The sales price is subject to tax even
53 19 if some of the services furnished are not enumerated
53 20 under this section. Additional sales, services, or
53 21 use taxes shall not be levied on services, parts, or
53 22 labor provided under optional service or warranty
53 23 contracts which are subject to tax under this
53 24 subsection.
53 25 If the optional service or warranty contract is a
53 26 computer software maintenance or support service
53 27 contract and there is no separately stated fee for the
53 28 taxable personal property or for the nontaxable
53 29 service, the tax imposed by this subsection shall be
53 30 imposed on fifty percent of the sales price from the
53 31 sale of such contract. If the contract provides for
53 32 technical support services only, no tax shall be
53 33 imposed under this subsection. The provisions of this
53 34 subparagraph (4) also apply to the use tax.
53 35 (5) Renting of rooms, apartments, or sleeping
53 36 quarters in a hotel, motel, inn, public lodging house,
53 37 rooming house, mobile home which is tangible personal
53 38 property, or tourist court, or in any place where
53 39 sleeping accommodations are furnished to transient
53 40 guests for rent, whether with or without meals.
53 41 "Renting" and "rent" include any kind of direct or
53 42 indirect charge for such rooms, apartments, or
53 43 sleeping quarters, or their use. However, the tax
53 44 does not apply to the sales price from the renting of
53 45 a room, apartment, or sleeping quarters while rented
53 46 by the same person for a period of more than thirty=
53 47 one consecutive days.
53 48 b. Sales of building materials, supplies, and
53 49 equipment to owners, contractors, subcontractors, or
53 50 builders for the erection of buildings or the
54 1 alteration, repair, or improvement of real property
54 2 are retail sales of tangible personal property in
54 3 whatever quantity sold. Where the owner, contractor,
54 4 subcontractor, or builder is also a retailer holding a
54 5 retail sales tax permit and transacting retail sales
54 6 of building materials, supplies, and equipment, the
54 7 person shall purchase such items of tangible personal
54 8 property without liability for the tax if such
54 9 property will be subject to the tax at the time of
54 10 resale or at the time it is withdrawn from inventory
54 11 for construction purposes. The sales tax shall be due
54 12 in the reporting period when the materials, supplies,
54 13 and equipment are withdrawn from inventory for
54 14 construction purposes or when sold at retail. The tax
54 15 shall not be due when materials are withdrawn from
54 16 inventory for use in construction outside of Iowa and
54 17 the tax shall not apply to tangible personal property
54 18 purchased and consumed by the manufacturer as building
54 19 materials in the performance by the manufacturer or
54 20 its subcontractor of construction outside of Iowa.
54 21 The sale of carpeting is not a sale of building
54 22 materials. The sale of carpeting to owners,
54 23 contractors, subcontractors, or builders shall be
54 24 treated as the sale of ordinary tangible personal
54 25 property and subject to the tax imposed under this
54 26 subsection and the use tax.
54 27 c. The use within this state of tangible personal
54 28 property by the manufacturer thereof, as building
54 29 materials, supplies, or equipment, in the performance
54 30 of construction contracts in Iowa, shall, for the
54 31 purpose of this subchapter, be construed as a sale at
54 32 retail of tangible personal property by the
54 33 manufacturer who shall be deemed to be the consumer of
54 34 such tangible personal property. The tax shall be
54 35 computed upon the cost to the manufacturer of the
54 36 fabrication or production of the tangible personal
54 37 property.
54 38 2. A tax of five percent is imposed upon the sales
54 39 price of the sale or furnishing of gas, electricity,
54 40 water, heat, pay television service, and communication
54 41 service, including the sales price from such sales by
54 42 any municipal corporation or joint water utility
54 43 furnishing gas, electricity, water, heat, pay
54 44 television service, and communication service to the
54 45 public in its proprietary capacity, except as
54 46 otherwise provided in this subchapter, when sold at
54 47 retail in the state to consumers or users.
54 48 3. A tax of five percent is imposed upon the sales
54 49 price of all sales of tickets or admissions to places
54 50 of amusement, fairs, and athletic events except those
55 1 of elementary and secondary educational institutions.
55 2 A tax of five percent is imposed on the sales price of
55 3 an entry fee or like charge imposed solely for the
55 4 privilege of participating in an activity at a place
55 5 of amusement, fair, or athletic event unless the sales
55 6 price of tickets or admissions charges for observing
55 7 the same activity are taxable under this subchapter.
55 8 A tax of five percent is imposed upon that part of
55 9 private club membership fees or charges paid for the
55 10 privilege of participating in any athletic sports
55 11 provided club members.
55 12 4. A tax of five percent is imposed upon the sales
55 13 price derived from the operation of all forms of
55 14 amusement devices and games of skill, games of chance,
55 15 raffles, and bingo games as defined in chapter 99B,
55 16 operated or conducted within the state, the tax to be
55 17 collected from the operator in the same manner as for
55 18 the collection of taxes upon the sales price of
55 19 tickets or admission as provided in this section.
55 20 Nothing in this subsection shall legalize any games of
55 21 skill or chance or slot=operated devices which are now
55 22 prohibited by law.
55 23 The tax imposed under this subsection covers the
55 24 total amount from the operation of games of skill,
55 25 games of chance, raffles, and bingo games as defined
55 26 in chapter 99B, and musical devices, weighing
55 27 machines, shooting galleries, billiard and pool
55 28 tables, bowling alleys, pinball machines, slot=
55 29 operated devices selling merchandise not subject to
55 30 the general sales taxes and on the total amount from
55 31 devices or systems where prizes are in any manner
55 32 awarded to patrons and upon the receipts from fees
55 33 charged for participation in any game or other form of
55 34 amusement, and generally upon the sales price from any
55 35 source of amusement operated for profit, not specified
55 36 in this section, and upon the sales price from which
55 37 tax is not collected for tickets or admission, but tax
55 38 shall not be imposed upon any activity exempt from
55 39 sales tax under section 423.3, subsection 78. Every
55 40 person receiving any sales price from the sources
55 41 described in this section is subject to all provisions
55 42 of this subchapter relating to retail sales tax and
55 43 other provisions of this chapter as applicable.
55 44 5. There is imposed a tax of five percent upon the
55 45 sales price from the furnishing of services as defined
55 46 in section 423.1.
55 47 6. The sales price of any of the following
55 48 enumerated services is subject to the tax imposed by
55 49 subsection 5: alteration and garment repair; armored
55 50 car; vehicle repair; battery, tire, and allied;
56 1 investment counseling; service charges of all
56 2 financial institutions; barber and beauty; boat
56 3 repair; vehicle wash and wax; campgrounds; carpentry;
56 4 roof, shingle, and glass repair; dance schools and
56 5 dance studios; dating services; dry cleaning,
56 6 pressing, dyeing, and laundering; electrical and
56 7 electronic repair and installation; excavating and
56 8 grading; farm implement repair of all kinds; flying
56 9 service; furniture, rug, carpet, and upholstery repair
56 10 and cleaning; fur storage and repair; golf and country
56 11 clubs and all commercial recreation; gun and camera
56 12 repair; house and building moving; household
56 13 appliance, television, and radio repair; janitorial
56 14 and building maintenance or cleaning; jewelry and
56 15 watch repair; lawn care, landscaping, and tree
56 16 trimming and removal; limousine service, including
56 17 driver; machine operator; machine repair of all kinds;
56 18 motor repair; motorcycle, scooter, and bicycle repair;
56 19 oilers and lubricators; office and business machine
56 20 repair; painting, papering, and interior decorating;
56 21 parking facilities; pay television; pet grooming; pipe
56 22 fitting and plumbing; wood preparation; executive
56 23 search agencies; private employment agencies,
56 24 excluding services for placing a person in employment
56 25 where the principal place of employment of that person
56 26 is to be located outside of the state; reflexology;
56 27 security and detective services; sewage services for
56 28 nonresidential commercial operations; sewing and
56 29 stitching; shoe repair and shoeshine; sign
56 30 construction and installation; storage of household
56 31 goods, mini=storage, and warehousing of raw
56 32 agricultural products; swimming pool cleaning and
56 33 maintenance; tanning beds or salons; taxidermy
56 34 services; telephone answering service; test
56 35 laboratories, including mobile testing laboratories
56 36 and field testing by testing laboratories, and
56 37 excluding tests on humans or animals; termite, bug,
56 38 roach, and pest eradicators; tin and sheet metal
56 39 repair; Turkish baths, massage, and reducing salons,
56 40 excluding services provided by massage therapists
56 41 licensed under chapter 152C; water conditioning and
56 42 softening; weighing; welding; well drilling; wrapping,
56 43 packing, and packaging of merchandise other than
56 44 processed meat, fish, fowl, and vegetables; wrecking
56 45 service; wrecker and towing.
56 46 For the purposes of this subsection, the sales
56 47 price of a lease or rental includes rents, royalties,
56 48 and copyright and license fees. For the purposes of
56 49 this subsection, "financial institutions" means all
56 50 national banks, federally chartered savings and loan
57 1 associations, federally chartered savings banks,
57 2 federally chartered credit unions, banks organized
57 3 under chapter 524, savings and loan associations and
57 4 savings banks organized under chapter 534, and credit
57 5 unions organized under chapter 533.
57 6 7. a. A tax of five percent is imposed upon the
57 7 sales price from the sales, furnishing, or service of
57 8 solid waste collection and disposal service.
57 9 For purposes of this subsection, "solid waste"
57 10 means garbage, refuse, sludge from a water supply
57 11 treatment plant or air contaminant treatment facility,
57 12 and other discarded waste materials and sludges, in
57 13 solid, semisolid, liquid, or contained gaseous form,
57 14 resulting from nonresidential commercial operations,
57 15 but does not include auto hulks; street sweepings;
57 16 ash; construction debris; mining waste; trees; tires;
57 17 lead acid batteries; used oil; hazardous waste; animal
57 18 waste used as fertilizer; earthen fill, boulders, or
57 19 rock; foundry sand used for daily cover at a sanitary
57 20 landfill; sewage sludge; solid or dissolved material
57 21 in domestic sewage or other common pollutants in water
57 22 resources, such as silt, dissolved or suspended solids
57 23 in industrial waste water effluents or discharges
57 24 which are point sources subject to permits under
57 25 section 402 of the federal Water Pollution Control
57 26 Act, or dissolved materials in irrigation return
57 27 flows; or source, special nuclear, or by=product
57 28 material defined by the federal Atomic Energy Act of
57 29 1954.
57 30 A recycling facility that separates or processes
57 31 recyclable materials and that reduces the volume of
57 32 the waste by at least eighty=five percent is exempt
57 33 from the tax imposed by this subsection if the waste
57 34 exempted is collected and disposed of separately from
57 35 other solid waste.
57 36 b. A person who transports solid waste generated
57 37 by that person or another person without compensation
57 38 shall pay the tax imposed by this subsection at the
57 39 collection or disposal facility based on the disposal
57 40 charge or tipping fee. However, the costs of a
57 41 service or portion of a service to collect and manage
57 42 recyclable materials separated from solid waste by the
57 43 waste generator are exempt from the tax imposed by
57 44 this subsection.
57 45 8. a. A tax of five percent is imposed upon the
57 46 sales price from sales of bundled services contracts.
57 47 For purposes of this subsection, a "bundled services
57 48 contract" means an agreement providing for a
57 49 retailer's performance of services, one or more of
57 50 which is a taxable service enumerated in this section
58 1 and one or more of which is not, in return for a
58 2 consumer's or user's single payment for the
58 3 performance of the services, with no separate
58 4 statement to the consumer or user of what portion of
58 5 that payment is attributable to any one service which
58 6 is a part of the contract.
58 7 b. For purposes of the administration of the tax
58 8 on bundled services contracts, the director may enter
58 9 into agreements of limited duration with individual
58 10 retailers, groups of retailers, or organizations
58 11 representing retailers of bundled services contracts.
58 12 Such an agreement shall impose the tax rate only upon
58 13 that portion of the sales price from a bundled
58 14 services contract which is attributable to taxable
58 15 services provided under the contract.
58 16 9. A tax of five percent is imposed upon the sales
58 17 price from any mobile telecommunications service which
58 18 this state is allowed to tax by the provisions of the
58 19 federal Mobile Telecommunications Sourcing Act, Pub.
58 20 L. No. 106=252, 4 U.S.C. } 116 et seq. For purposes
58 21 of this subsection, taxes on mobile telecommunications
58 22 service, as defined under the federal Mobile
58 23 Telecommunications Sourcing Act that are deemed to be
58 24 provided by the customer's home service provider,
58 25 shall be paid to the taxing jurisdiction whose
58 26 territorial limits encompass the customer's place of
58 27 primary use, regardless of where the mobile
58 28 telecommunications service originates, terminates, or
58 29 passes through and shall in all other respects be
58 30 taxed in conformity with the federal Mobile
58 31 Telecommunications Sourcing Act. All other provisions
58 32 of the federal Mobile Telecommunications Sourcing Act
58 33 are adopted by the state of Iowa and incorporated into
58 34 this subsection by reference. With respect to mobile
58 35 telecommunications service under the federal Mobile
58 36 Telecommunications Sourcing Act, the director shall,
58 37 if requested, enter into agreements consistent with
58 38 the provisions of the federal Act.
58 39 10. All revenues arising under the operation of
58 40 the provisions of this section shall be deposited into
58 41 the general fund of the state.
58 42 Sec. 105. NEW SECTION. 423.3 EXEMPTIONS.
58 43 There is exempted from the provisions of this
58 44 subchapter and from the computation of the amount of
58 45 tax imposed by it the following:
58 46 1. The sales price from sales of tangible personal
58 47 property and services furnished which this state is
58 48 prohibited from taxing under the Constitution or laws
58 49 of the United States or under the Constitution of this
58 50 state.
59 1 2. The sales price of sales for resale of tangible
59 2 personal property or taxable services, or for resale
59 3 of tangible personal property in connection with the
59 4 furnishing of taxable services.
59 5 3. The sales price of agricultural breeding
59 6 livestock and domesticated fowl.
59 7 4. The sales price of commercial fertilizer.
59 8 5. The sales price of agricultural limestone,
59 9 herbicide, pesticide, insecticide, including
59 10 adjuvants, surfactants, and other products directly
59 11 related to the application enhancement of those
59 12 products, food, medication, or agricultural drain
59 13 tile, including installation of agricultural drain
59 14 tile, any of which are to be used in disease control,
59 15 weed control, insect control, or health promotion of
59 16 plants or livestock produced as part of agricultural
59 17 production for market.
59 18 6. The sales price of tangible personal property
59 19 which will be consumed as fuel in creating heat,
59 20 power, or steam for grain drying, or for providing
59 21 heat or cooling for livestock buildings or for
59 22 greenhouses or buildings or parts of buildings
59 23 dedicated to the production of flowering, ornamental,
59 24 or vegetable plants intended for sale in the ordinary
59 25 course of business, or for use in cultivation of
59 26 agricultural products by aquaculture, or in implements
59 27 of husbandry engaged in agricultural production.
59 28 7. The sales price of services furnished by
59 29 specialized flying implements of husbandry used for
59 30 agricultural aerial spraying.
59 31 8. The sales price exclusive of services of farm
59 32 machinery and equipment, including auxiliary
59 33 attachments which improve the performance, safety,
59 34 operation, or efficiency of the machinery and
59 35 equipment and replacement parts, if the following
59 36 conditions are met:
59 37 a. The farm machinery and equipment shall be
59 38 directly and primarily used in production of
59 39 agricultural products.
59 40 b. The farm machinery and equipment shall
59 41 constitute self=propelled implements or implements
59 42 customarily drawn or attached to self=propelled
59 43 implements or the farm machinery or equipment is a
59 44 grain dryer.
59 45 c. The replacement part is essential to any repair
59 46 or reconstruction necessary to the farm machinery's or
59 47 equipment's exempt use in the production of
59 48 agricultural products.
59 49 Vehicles subject to registration, as defined in
59 50 section 423.1, or replacement parts for such vehicles,
60 1 are not eligible for this exemption.
60 2 9. The sales price of wood chips, sawdust, hay,
60 3 straw, paper, or other materials used for bedding in
60 4 the production of agricultural livestock or fowl.
60 5 10. The sales price of gas, electricity, water, or
60 6 heat to be used in implements of husbandry engaged in
60 7 agricultural production.
60 8 11. The sales price exclusive of services of farm
60 9 machinery and equipment, including auxiliary
60 10 attachments which improve the performance, safety,
60 11 operation, or efficiency of the machinery and
60 12 equipment and replacement parts, if all of the
60 13 following conditions are met:
60 14 a. The implement, machinery, or equipment is
60 15 directly and primarily used in livestock or dairy
60 16 production, aquaculture production, or the production
60 17 of flowering, ornamental, or vegetable plants.
60 18 b. The implement is not a self=propelled implement
60 19 or implement customarily drawn or attached to self=
60 20 propelled implements.
60 21 c. The replacement part is essential to any repair
60 22 or reconstruction necessary to the farm machinery's or
60 23 equipment's exempt use in livestock or dairy
60 24 production, aquaculture production, or the production
60 25 of flowering, ornamental, or vegetable plants.
60 26 12. The sales price, exclusive of services, from
60 27 sales of irrigation equipment used in farming
60 28 operations.
60 29 13. The sales price from the sale or rental of
60 30 irrigation equipment, whether installed above or below
60 31 ground, to a contractor or farmer if the equipment
60 32 will be primarily used in agricultural operations.
60 33 14. The sales price from the sales of horses,
60 34 commonly known as draft horses, when purchased for use
60 35 and so used as draft horses.
60 36 15. The sales price from the sale of property
60 37 which is a container, label, carton, pallet, packing
60 38 case, wrapping, baling wire, twine, bag, bottle,
60 39 shipping case, or other similar article or receptacle
60 40 sold for use in agricultural, livestock, or dairy
60 41 production.
60 42 16. The sales price from the sale of feed and feed
60 43 supplements and additives when used for consumption by
60 44 farm deer or bison.
60 45 17. The sales price of all goods, wares, or
60 46 merchandise, or services, used for educational
60 47 purposes sold to any private nonprofit educational
60 48 institution in this state. For the purpose of this
60 49 subsection, "educational institution" means an
60 50 institution which primarily functions as a school,
61 1 college, or university with students, faculty, and an
61 2 established curriculum. The faculty of an educational
61 3 institution must be associated with the institution
61 4 and the curriculum must include basic courses which
61 5 are offered every year. "Educational institution"
61 6 includes an institution primarily functioning as a
61 7 library.
61 8 18. The sales price of tangible personal property
61 9 sold, or of services furnished, to the following
61 10 nonprofit corporations:
61 11 a. Residential care facilities and intermediate
61 12 care facilities for persons with mental retardation
61 13 and residential care facilities for persons with
61 14 mental illness licensed by the department of
61 15 inspections and appeals under chapter 135C.
61 16 b. Residential facilities licensed by the
61 17 department of human services pursuant to chapter 237,
61 18 other than those maintained by individuals as defined
61 19 in section 237.1, subsection 7.
61 20 c. Rehabilitation facilities that provide
61 21 accredited rehabilitation services to persons with
61 22 disabilities which are accredited by the commission on
61 23 accreditation of rehabilitation facilities or the
61 24 accreditation council for services for persons with
61 25 mental retardation and other persons with
61 26 developmental disabilities and adult day care services
61 27 approved for reimbursement by the state department of
61 28 human services.
61 29 d. Community mental health centers accredited by
61 30 the department of human services pursuant to chapter
61 31 225C.
61 32 e. Community health centers as defined in 42
61 33 U.S.C. } 254(c) and migrant health centers as defined
61 34 in 42 U.S.C. } 254(b).
61 35 19. The sales price of tangible personal property
61 36 sold to a nonprofit organization which was organized
61 37 for the purpose of lending the tangible personal
61 38 property to the general public for use by them for
61 39 nonprofit purposes.
61 40 20. The sales price of tangible personal property
61 41 sold, or of services furnished, to nonprofit legal aid
61 42 organizations.
61 43 21. The sales price of goods, wares, or
61 44 merchandise, or of services, used for educational,
61 45 scientific, historic preservation, or aesthetic
61 46 purpose sold to a nonprofit private museum.
61 47 22. The sales price from sales of goods, wares, or
61 48 merchandise, or from services furnished, to a
61 49 nonprofit private art center to be used in the
61 50 operation of the art center.
62 1 23. The sales price of tangible personal property
62 2 sold, or of services furnished, by a fair society
62 3 organized under chapter 174.
62 4 24. The sales price from services furnished by the
62 5 notification center established pursuant to section
62 6 480.3, and the vendor selected pursuant to section
62 7 480.3 to provide the notification service.
62 8 25. The sales price of food and beverages sold for
62 9 human consumption by a nonprofit organization which
62 10 principally promotes a food or beverage product for
62 11 human consumption produced, grown, or raised in this
62 12 state and whose income is exempt from federal taxation
62 13 under section 501(c) of the Internal Revenue Code.
62 14 26. The sales price of tangible personal property
62 15 sold, or of services furnished, to a statewide
62 16 nonprofit organ procurement organization, as defined
62 17 in section 142C.2.
62 18 27. The sales price of tangible personal property
62 19 sold, or of services furnished, to a nonprofit
62 20 hospital licensed pursuant to chapter 135B to be used
62 21 in the operation of the hospital.
62 22 28. The sales price of tangible personal property
62 23 sold, or of services furnished, to a freestanding
62 24 nonprofit hospice facility which operates a hospice
62 25 program as defined in 42 C.F.R., ch. IV, } 418.3,
62 26 which property or services are to be used in the
62 27 hospice program.
62 28 29. The sales price of all goods, wares, or
62 29 merchandise sold, or of services furnished, which are
62 30 used in the fulfillment of a written construction
62 31 contract with a nonprofit hospital licensed pursuant
62 32 to chapter 135B if all of the following apply:
62 33 a. The sales and delivery of the goods, wares, or
62 34 merchandise, or the services furnished occurred
62 35 between July 1, 1998, and December 31, 2001.
62 36 b. The written construction contract was entered
62 37 into prior to December 31, 1999, or bonds to fund the
62 38 construction were issued prior to December 31, 1999.
62 39 c. The sales or services were purchased by a
62 40 contractor as the agent for the hospital or were
62 41 purchased directly by the hospital.
62 42 30. The sales price of livestock ear tags sold by
62 43 a nonprofit organization whose income is exempt from
62 44 federal taxation under section 501(c)(6) of the
62 45 Internal Revenue Code where the proceeds are used in
62 46 bovine research programs selected or approved by such
62 47 organization.
62 48 31. The sales price of goods, wares, or
62 49 merchandise sold to and of services furnished, and
62 50 used for public purposes sold to a tax=certifying or
63 1 tax=levying body of the state or a governmental
63 2 subdivision of the state, including regional transit
63 3 systems, as defined in section 324A.1, the state board
63 4 of regents, department of human services, state
63 5 department of transportation, any municipally owned
63 6 solid waste facility which sells all or part of its
63 7 processed waste as fuel to a municipally owned public
63 8 utility, and all divisions, boards, commissions,
63 9 agencies, or instrumentalities of state, federal,
63 10 county, or municipal government which have no earnings
63 11 going to the benefit of an equity investor or
63 12 stockholder, except any of the following:
63 13 a. The sales price of goods, wares, or merchandise
63 14 sold to, or of services furnished, and used by or in
63 15 connection with the operation of any municipally owned
63 16 public utility engaged in selling gas, electricity,
63 17 heat, or pay television service to the general public.
63 18 b. The sales price of furnishing of sewage
63 19 services to a county or municipality on behalf of
63 20 nonresidential commercial operations.
63 21 c. The furnishing of solid waste collection and
63 22 disposal service to a county or municipality on behalf
63 23 of nonresidential commercial operations located within
63 24 the county or municipality.
63 25 The exemption provided by this subsection shall
63 26 also apply to all such sales of goods, wares, or
63 27 merchandise or of services furnished and subject to
63 28 use tax.
63 29 32. The sales price of tangible personal property
63 30 sold, or of services furnished, by a county or city.
63 31 This exemption does not apply to any of the following:
63 32 a. The tax specifically imposed under section
63 33 423.2 on the sales price from sales or furnishing of
63 34 gas, electricity, water, heat, pay television service,
63 35 or communication service to the public by a municipal
63 36 corporation in its proprietary capacity.
63 37 b. The sale or furnishing of solid waste
63 38 collection and disposal service to nonresidential
63 39 commercial operations.
63 40 c. The sale or furnishing of sewage service for
63 41 nonresidential commercial operations.
63 42 d. Fees paid to cities and counties for the
63 43 privilege of participating in any athletic sports.
63 44 33. The sales price of mementos and other items
63 45 relating to Iowa history and historic sites, the
63 46 general assembly, and the state capitol, sold by the
63 47 legislative service bureau and its legislative
63 48 information office on the premises of property under
63 49 the control of the legislative council, at the state
63 50 capitol, and on other state property.
64 1 34. The sales price from sales of mementos and
64 2 other items relating to Iowa history and historic
64 3 sites by the department of cultural affairs on the
64 4 premises of property under its control and at the
64 5 state capitol.
64 6 35. The sales price from sales or services
64 7 furnished by the state fair organized under chapter
64 8 173.
64 9 36. The sales price from sales of tangible
64 10 personal property or of the sale or furnishing of
64 11 electrical energy, natural or artificial gas, or
64 12 communication service to another state or political
64 13 subdivision of another state if the other state
64 14 provides a similar reciprocal exemption for this state
64 15 and political subdivision of this state.
64 16 37. The sales price of services on or connected
64 17 with new construction, reconstruction, alteration,
64 18 expansion, remodeling, or the services of a general
64 19 building contractor, architect, or engineer.
64 20 38. The sales price from the sale of building
64 21 materials, supplies, or equipment sold to rural water
64 22 districts organized under chapter 504A as provided in
64 23 chapter 357A and used for the construction of
64 24 facilities of a rural water district.
64 25 39. The sales price from "casual sales".
64 26 "Casual sales" means:
64 27 a. Sales of tangible personal property, or the
64 28 furnishing of services, of a nonrecurring nature, by
64 29 the owner, if the seller, at the time of the sale, is
64 30 not engaged for profit in the business of selling
64 31 tangible personal property or services taxed under
64 32 section 423.2.
64 33 b. The sale of all or substantially all of the
64 34 tangible personal property or services held or used by
64 35 a seller in the course of the seller's trade or
64 36 business for which the seller is required to hold a
64 37 sales tax permit when the seller sells or otherwise
64 38 transfers the trade or business to another person who
64 39 shall engage in a similar trade or business.
64 40 40. The sales price from the sale of automotive
64 41 fluids to a retailer to be used either in providing a
64 42 service which includes the installation or application
64 43 of the fluids in or on a motor vehicle, which service
64 44 is subject to section 423.2, subsection 6, or to be
64 45 installed in or applied to a motor vehicle which the
64 46 retailer intends to sell, which sale is subject to
64 47 section 423.26. For purposes of this subsection,
64 48 automotive fluids are all those which are refined,
64 49 manufactured, or otherwise processed and packaged for
64 50 sale prior to their installation in or application to
65 1 a motor vehicle. They include but are not limited to
65 2 motor oil and other lubricants, hydraulic fluids,
65 3 brake fluid, transmission fluid, sealants,
65 4 undercoatings, antifreeze, and gasoline additives.
65 5 41. The sales price from the rental of motion
65 6 picture films, video and audio tapes, video and audio
65 7 discs, records, photos, copy, scripts, or other media
65 8 used for the purpose of transmitting that which can be
65 9 seen, heard, or read, if either of the following
65 10 conditions are met:
65 11 a. The lessee imposes a charge for the viewing of
65 12 such media and the charge for the viewing is subject
65 13 to taxation under this subchapter or is subject to use
65 14 tax.
65 15 b. The lessee broadcasts the contents of such
65 16 media for public viewing or listening.
65 17 42. The sales price from the sale of tangible
65 18 personal property consisting of advertising material
65 19 including paper to a person in Iowa if that person or
65 20 that person's agent will, subsequent to the sale, send
65 21 that advertising material outside this state and the
65 22 material is subsequently used solely outside of Iowa.
65 23 For the purpose of this subsection, "advertising
65 24 material" means any brochure, catalog, leaflet, flyer,
65 25 order form, return envelope, or similar item used to
65 26 promote sales of property or services.
65 27 43. The sales price from the sale of property or
65 28 of services performed on property which the retailer
65 29 transfers to a carrier for shipment to a point outside
65 30 of Iowa, places in the United States mail or parcel
65 31 post directed to a point outside of Iowa, or
65 32 transports to a point outside of Iowa by means of the
65 33 retailer's own vehicles, and which is not thereafter
65 34 returned to a point within Iowa, except solely in the
65 35 course of interstate commerce or transportation. This
65 36 exemption shall not apply if the purchaser, consumer,
65 37 or their agent, other than a carrier, takes physical
65 38 possession of the property in Iowa.
65 39 44. The sales price from the sale of property
65 40 which is a container, label, carton, pallet, packing
65 41 case, wrapping paper, twine, bag, bottle, shipping
65 42 case, or other similar article or receptacle sold to
65 43 retailers or manufacturers for the purpose of
65 44 packaging or facilitating the transportation of
65 45 tangible personal property sold at retail or
65 46 transferred in association with the maintenance or
65 47 repair of fabric or clothing.
65 48 45. The sales price from sales or rentals to a
65 49 printer or publisher of the following: acetate; anti=
65 50 halation backing; antistatic spray; back lining; base
66 1 material used as a carrier for light sensitive
66 2 emulsions; blankets; blow=ups; bronze powder; carbon
66 3 tissue; codas; color filters; color separations;
66 4 contacts; continuous tone separations; creative art;
66 5 custom dies and die cutting materials; dampener
66 6 sleeves; dampening solution; design and styling; diazo
66 7 coating; dot etching; dot etching solutions; drawings;
66 8 drawsheets; driers; duplicate films or prints;
66 9 electronically digitized images; electrotypes; end
66 10 product of image modulation; engravings; etch
66 11 solutions; film; finished art or final art; fix;
66 12 fixative spray; flats; flying pasters; foils;
66 13 goldenrod paper; gum; halftones; illustrations; ink;
66 14 ink paste; keylines; lacquer; lasering images;
66 15 layouts; lettering; line negatives and positives;
66 16 linotypes; lithographic offset plates; magnesium and
66 17 zinc etchings; masking paper; masks; masters; mats;
66 18 mat service; metal toner; models and modeling; mylar;
66 19 negatives; nonoffset spray; opaque film process paper;
66 20 opaquing; padding compound; paper stock; photographic
66 21 materials: acids, plastic film, desensitizer
66 22 emulsion, exposure chemicals, fix, developers, and
66 23 paper; photography, day rate; photopolymer coating;
66 24 photographs; photostats; photo=display tape;
66 25 phototypesetter materials; ph=indicator sticks;
66 26 positives; press pack; printing cylinders; printing
66 27 plates, all types; process lettering; proof paper;
66 28 proofs and proof processes, all types; pumice powder;
66 29 purchased author alterations; purchased composition;
66 30 purchased phototypesetting; purchased stripping and
66 31 pasteups; red litho tape; reducers; roller covering;
66 32 screen tints; sketches; stepped plates; stereotypes;
66 33 strip types; substrate; tints; tissue overlays;
66 34 toners; transparencies; tympan; typesetting;
66 35 typography; varnishes; veloxes; wood mounts; and any
66 36 other items used in a like capacity to any of the
66 37 above enumerated items by the printer or publisher to
66 38 complete a finished product for sale at retail.
66 39 Expendable tools and supplies which are not enumerated
66 40 in this subsection are excluded from the exemption.
66 41 "Printer" means that portion of a person's business
66 42 engaged in printing that completes a finished product
66 43 for ultimate sale at retail or means that portion of a
66 44 person's business used to complete a finished printed
66 45 packaging material used to package a product for
66 46 ultimate sale at retail. "Printer" does not mean an
66 47 in=house printer who prints or copyrights its own
66 48 materials.
66 49 46. a. The sales price from the sale or rental of
66 50 computers, machinery, and equipment, including
67 1 replacement parts, and materials used to construct or
67 2 self=construct computers, machinery, and equipment if
67 3 such items are any of the following:
67 4 (1) Directly and primarily used in processing by a
67 5 manufacturer.
67 6 (2) Directly and primarily used to maintain the
67 7 integrity of the product or to maintain unique
67 8 environmental conditions required for either the
67 9 product or the computers, machinery, and equipment
67 10 used in processing by a manufacturer, including test
67 11 equipment used to control quality and specifications
67 12 of the product.
67 13 (3) Directly and primarily used in research and
67 14 development of new products or processes of
67 15 processing.
67 16 (4) Computers used in processing or storage of
67 17 data or information by an insurance company, financial
67 18 institution, or commercial enterprise.
67 19 (5) Directly and primarily used in recycling or
67 20 reprocessing of waste products.
67 21 (6) Pollution=control equipment used by a
67 22 manufacturer, including but not limited to that
67 23 required or certified by an agency of this state or of
67 24 the United States government.
67 25 b. The sales price from the sale of fuel used in
67 26 creating heat, power, steam, or for generating
67 27 electrical current, or from the sale of electricity,
67 28 consumed by computers, machinery, or equipment used in
67 29 an exempt manner described in paragraph "a",
67 30 subparagraph (1), (2), (3), (5), or (6).
67 31 c. The sales price from the sale or rental of the
67 32 following shall not be exempt from the tax imposed by
67 33 this subchapter:
67 34 (1) Hand tools.
67 35 (2) Point=of=sale equipment and computers.
67 36 (3) Industrial machinery, equipment, and
67 37 computers, including pollution=control equipment
67 38 within the scope of section 427A.1, subsection 1,
67 39 paragraphs "h" and "i".
67 40 (4) Vehicles subject to registration, except
67 41 vehicles subject to registration which are directly
67 42 and primarily used in recycling or reprocessing of
67 43 waste products.
67 44 d. As used in this subsection:
67 45 (1) "Commercial enterprise" includes businesses
67 46 and manufacturers conducted for profit and centers for
67 47 data processing services to insurance companies,
67 48 financial institutions, businesses, and manufacturers,
67 49 but excludes professions and occupations and nonprofit
67 50 organizations.
68 1 (2) "Financial institution" means as defined in
68 2 section 527.2.
68 3 (3) "Insurance company" means an insurer organized
68 4 or operating under chapter 508, 514, 515, 518, 518A,
68 5 519, or 520, or authorized to do business in Iowa as
68 6 an insurer or an insurance producer under chapter
68 7 522B.
68 8 (4) "Manufacturer" means as defined in section
68 9 428.20, but also includes contract manufacturers. A
68 10 contract manufacturer is a manufacturer that otherwise
68 11 falls within the definition of manufacturer under
68 12 section 428.20, except that a contract manufacturer
68 13 does not sell the tangible personal property the
68 14 contract manufacturer processes on behalf of other
68 15 manufacturers. A business engaged in activities
68 16 subsequent to the extractive process of quarrying or
68 17 mining, such as crushing, washing, sizing, or blending
68 18 of aggregate materials, is a manufacturer with respect
68 19 to these activities.
68 20 (5) "Processing" means a series of operations in
68 21 which materials are manufactured, refined, purified,
68 22 created, combined, or transformed by a manufacturer,
68 23 ultimately into tangible personal property.
68 24 Processing encompasses all activities commencing with
68 25 the receipt or producing of raw materials by the
68 26 manufacturer and ending at the point products are
68 27 delivered for shipment or transferred from the
68 28 manufacturer. Processing includes but is not limited
68 29 to refinement or purification of materials; treatment
68 30 of materials to change their form, context, or
68 31 condition; maintenance of the quality or integrity of
68 32 materials, components, or products; maintenance of
68 33 environmental conditions necessary for materials,
68 34 components, or products; quality control activities;
68 35 and construction of packaging and shipping devices,
68 36 placement into shipping containers or any type of
68 37 shipping devices or medium, and the movement of
68 38 materials, components, or products until shipment from
68 39 the processor.
68 40 (6) "Receipt or producing of raw materials" means
68 41 activities performed upon tangible personal property
68 42 only. With respect to raw materials produced from or
68 43 upon real estate, the receipt or producing of raw
68 44 materials is deemed to occur immediately following the
68 45 severance of the raw materials from the real estate.
68 46 47. The sales price from the furnishing of the
68 47 design and installation of new industrial machinery or
68 48 equipment, including electrical and electronic
68 49 installation.
68 50 48. The sales price from the sale of carbon
69 1 dioxide in a liquid, solid, or gaseous form,
69 2 electricity, steam, and other taxable services when
69 3 used by a manufacturer of food products to produce
69 4 marketable food products for human consumption,
69 5 including but not limited to treatment of material to
69 6 change its form, context, or condition, in order to
69 7 produce the food product, maintenance of quality or
69 8 integrity of the food product, changing or maintenance
69 9 of temperature levels necessary to avoid spoilage or
69 10 to hold the food product in marketable condition,
69 11 maintenance of environmental conditions necessary for
69 12 the safe or efficient use of machinery and material
69 13 used to produce the food product, sanitation and
69 14 quality control activities, formation of packaging,
69 15 placement into shipping containers, and movement of
69 16 the material or food product until shipment from the
69 17 building of manufacture.
69 18 49. The sales price of sales of electricity,
69 19 steam, or any taxable service when purchased and used
69 20 in the processing of tangible personal property
69 21 intended to be sold ultimately at retail.
69 22 50. The sales price of tangible personal property
69 23 sold for processing. Tangible personal property is
69 24 sold for processing within the meaning of this
69 25 subsection only when it is intended that the property
69 26 will, by means of fabrication, compounding,
69 27 manufacturing, or germination, become an integral part
69 28 of other tangible personal property intended to be
69 29 sold ultimately at retail; or for generating electric
69 30 current; or the property is a chemical, solvent,
69 31 sorbent, or reagent, which is directly used and is
69 32 consumed, dissipated, or depleted, in processing
69 33 tangible personal property which is intended to be
69 34 sold ultimately at retail or consumed in the
69 35 maintenance or repair of fabric or clothing, and which
69 36 may not become a component or integral part of the
69 37 finished product. The distribution to the public of
69 38 free newspapers or shoppers guides is a retail sale
69 39 for purposes of the processing exemption set out in
69 40 this subsection and in subsection 49.
69 41 51. The sales price from the sale of argon and
69 42 other similar gases to be used in the manufacturing
69 43 process.
69 44 52. The sales price from the sale of electricity
69 45 to water companies assessed for property tax pursuant
69 46 to sections 428.24, 428.26, and 428.28 which is used
69 47 solely for the purpose of pumping water from a river
69 48 or well.
69 49 53. The sales price from the sale of wind energy
69 50 conversion property to be used as an electric power
70 1 source and the sale of the materials used to
70 2 manufacture, install, or construct wind energy
70 3 conversion property used or to be used as an electric
70 4 power source.
70 5 For purposes of this subsection, "wind energy
70 6 conversion property" means any device, including, but
70 7 not limited to, a wind charger, windmill, wind
70 8 turbine, tower and electrical equipment, pad mount
70 9 transformers, power lines, and substation, which
70 10 converts wind energy to a form of usable energy.
70 11 54. The sales price from the sales of newspapers,
70 12 free newspapers, or shoppers guides and the printing
70 13 and publishing of such newspapers and shoppers guides,
70 14 and envelopes for advertising.
70 15 55. The sales price from the sale of motor fuel
70 16 and special fuel consumed for highway use or in
70 17 watercraft or aircraft where the fuel tax has been
70 18 imposed and paid and no refund has been or will be
70 19 allowed and the sales price from the sales of ethanol
70 20 blended gasoline, as defined in section 452A.2.
70 21 56. The sales price from all sales of food and
70 22 food ingredients. However, as used in this
70 23 subsection, "food" does not include alcoholic
70 24 beverages, candy, dietary supplements, food sold
70 25 through vending machines, prepared food, soft drinks,
70 26 and tobacco.
70 27 For the purposes of this subsection:
70 28 a. "Alcoholic beverages" means beverages that are
70 29 suitable for human consumption and contain one=half of
70 30 one percent or more of alcohol by volume.
70 31 b. "Candy" means a preparation of sugar, honey, or
70 32 other natural or artificial sweeteners in combination
70 33 with chocolate, fruits, nuts, or other ingredients or
70 34 flavorings in the form of bars, drops, or pieces.
70 35 Candy shall not include any preparation containing
70 36 flour and shall require no refrigeration.
70 37 c. "Dietary supplement" means any product, other
70 38 than tobacco, intended to supplement the diet that
70 39 contains one or more of the following dietary
70 40 ingredients:
70 41 (1) A vitamin.
70 42 (2) A mineral.
70 43 (3) An herb or other botanical.
70 44 (4) An amino acid.
70 45 (5) A dietary substance for use by humans to
70 46 supplement the diet by increasing the total dietary
70 47 intake.
70 48 (6) A concentrate, metabolite, constituent,
70 49 extract, or combination of any of the ingredients in
70 50 subparagraphs (1) through (5) that is intended for
71 1 ingestion in tablet, capsule, powder, softgel, gelcap,
71 2 or liquid form, or if not intended for ingestion in
71 3 such a form, is not represented as conventional food
71 4 and is not represented for use as a sole item of a
71 5 meal or of the diet; and is required to be labeled as
71 6 a dietary supplement, identifiable by the "supplement
71 7 facts" box found on the label and as required pursuant
71 8 to 21 C.F.R. } 101.36.
71 9 d. "Food and food ingredients" means substances,
71 10 whether in liquid, concentrated, solid, frozen, dried,
71 11 or dehydrated form, that are sold for ingestion or
71 12 chewing by humans and are consumed for their taste or
71 13 nutritional value.
71 14 e. "Food sold through vending machines" means food
71 15 dispensed from a machine or other mechanical device
71 16 that accepts payment, other than food which would be
71 17 qualified for exemption under subsection 57 if
71 18 purchased with a coupon described in subsection 57.
71 19 f. "Prepared food" means any of following:
71 20 (1) Food sold in a heated state or heated by the
71 21 seller, including food sold by a caterer.
71 22 (2) Two or more food ingredients mixed or combined
71 23 by the seller for sale as a single item.
71 24 (3) "Prepared food", for the purposes of this
71 25 paragraph, does not include food that is any of the
71 26 following:
71 27 (a) Only cut, repackaged, or pasteurized by the
71 28 seller.
71 29 (b) Eggs, fish, meat, poultry, and foods
71 30 containing these raw animal foods requiring cooking by
71 31 the consumer as recommended by the United States food
71 32 and drug administration in chapter 3, part 401.11 of
71 33 its food code, so as to prevent food borne illnesses.
71 34 (c) Bakery items sold by the seller which baked
71 35 them. The words "bakery items" includes but is not
71 36 limited to breads, rolls, buns, biscuits, bagels,
71 37 croissants, pastries, donuts, Danish, cakes, tortes,
71 38 pies, tarts, muffins, bars, cookies, and tortillas.
71 39 (d) Food sold without eating utensils provided by
71 40 the seller in an unheated state as a single item which
71 41 is priced by weight or volume.
71 42 (4) Food sold with eating utensils provided by the
71 43 seller, including plates, knives, forks, spoons,
71 44 glasses, cups, napkins, or straws. A plate does not
71 45 include a container or packaging used to transport
71 46 food.
71 47 g. "Soft drinks" means nonalcoholic beverages that
71 48 contain natural or artificial sweeteners. "Soft
71 49 drinks" does not include beverages that contain milk
71 50 or milk products; soy, rice, or similar milk
72 1 substitutes; or greater than fifty percent of
72 2 vegetable or fruit juice by volume.
72 3 f. "Tobacco" means cigarettes, cigars, chewing or
72 4 pipe tobacco, or any other item that contains tobacco.
72 5 57. The sales price from the sale of items
72 6 purchased with coupons issued under the federal Food
72 7 Stamp Act of 1977, 7 U.S.C. } 2011 et seq.
72 8 58. In transactions in which tangible personal
72 9 property is traded toward the sales price of other
72 10 tangible personal property, that portion of the sales
72 11 price which is not payable in money to the retailer is
72 12 exempted from the taxable amount if the following
72 13 conditions are met:
72 14 a. The tangible personal property traded to the
72 15 retailer is the type of property normally sold in the
72 16 regular course of the retailer's business.
72 17 b. The tangible personal property traded to the
72 18 retailer is intended by the retailer to be ultimately
72 19 sold at retail or is intended to be used by the
72 20 retailer or another in the remanufacturing of a like
72 21 item.
72 22 59. The sales price from the sale or rental of
72 23 prescription drugs or medical devices intended for
72 24 human use or consumption.
72 25 For the purposes of this subsection:
72 26 a. "Drug" means a compound, substance, or
72 27 preparation, and any component of a compound,
72 28 substance, or preparation, other than food and food
72 29 ingredients, dietary supplements, or alcoholic
72 30 beverages which is any of the following:
72 31 (1) Recognized in the official United States
72 32 pharmacopoeia, official homeopathic pharmacopoeia of
72 33 the United States, or official national formulary, and
72 34 supplement to any of them.
72 35 (2) Intended for use in the diagnosis, cure,
72 36 mitigation, treatment, or prevention of disease.
72 37 (3) Intended to affect the structure or any
72 38 function of the body.
72 39 b. "Medical device" means equipment or a supply,
72 40 intended to be prescribed by a practitioner, including
72 41 orthopedic or orthotic devices. However, "medical
72 42 device" also includes prosthetic devices, ostomy,
72 43 urological, and tracheostomy equipment and supplies,
72 44 and diabetic testing materials, hypodermic syringes
72 45 and needles, anesthesia trays, biopsy trays and biopsy
72 46 needles, cannula systems, catheter trays and invasive
72 47 catheters, dialyzers, drug infusion devices, fistula
72 48 sets, hemodialysis devices, insulin infusion devices,
72 49 intraocular lenses, irrigation solutions, intravenous
72 50 administering sets, solutions and stopcocks, myelogram
73 1 trays, nebulizers, small vein infusion kits, spinal
73 2 puncture trays, transfusion sets, venous blood sets,
73 3 and oxygen equipment, intended to be dispensed for
73 4 human use with or without a prescription to an
73 5 ultimate user.
73 6 c. "Practitioner" means a practitioner as defined
73 7 in section 155A.3, or a person licensed to prescribe
73 8 drugs.
73 9 d. "Prescription drug" means a drug intended to be
73 10 dispensed to an ultimate user pursuant to a
73 11 prescription drug order, formula, or recipe issued in
73 12 any form of oral, written, electronic, or other means
73 13 of transmission by a duly licensed practitioner, or
73 14 oxygen or insulin dispensed for human consumption with
73 15 or without a prescription drug order or medication
73 16 order.
73 17 e. "Prosthetic device" means a replacement,
73 18 corrective, or supportive device including repair and
73 19 replacement parts for the same worn on or in the body
73 20 to do any of the following:
73 21 (1) Artificially replace a missing portion of the
73 22 body.
73 23 (2) Prevent or correct physical deformity or
73 24 malfunction.
73 25 (3) Support a weak or deformed portion of the
73 26 body.
73 27 f. "Ultimate user" means an individual who has
73 28 lawfully obtained and possesses a prescription drug or
73 29 medical device for the individual's own use or for the
73 30 use of a member of the individual's household, or an
73 31 individual to whom a prescription drug or medical
73 32 device has been lawfully supplied, administered,
73 33 dispensed, or prescribed.
73 34 60. The sales price from services furnished by
73 35 aerial commercial and charter transportation services.
73 36 61. The sales price from the sale of raffle
73 37 tickets for a raffle licensed pursuant to section
73 38 99B.5.
73 39 62. The sales price from the sale of tangible
73 40 personal property which will be given as prizes to
73 41 players in games of skill, games of chance, raffles,
73 42 and bingo games as defined in chapter 99B.
73 43 63. The sales price from the sale of a modular
73 44 home, as defined in section 435.1, to the extent of
73 45 the portion of the purchase price of the modular home
73 46 which is not attributable to the cost of the tangible
73 47 personal property used in the processing of the
73 48 modular home. For purposes of this exemption, the
73 49 portion of the purchase price which is not
73 50 attributable to the cost of the tangible personal
74 1 property used in the processing of the modular home is
74 2 forty percent.
74 3 64. The sales price from charges paid to a
74 4 provider for access to on=line computer services. For
74 5 purposes of this subsection, "on=line computer
74 6 service" means a service that provides or enables
74 7 computer access by multiple users to the internet or
74 8 to other information made available through a computer
74 9 server.
74 10 65. The sales price from the sale or rental of
74 11 information services. "Information services" means
74 12 every business activity, process, or function by which
74 13 a seller or its agent accumulates, prepares,
74 14 organizes, or conveys data, facts, knowledge,
74 15 procedures, and like services to a buyer or its agent
74 16 of such information through any tangible or intangible
74 17 medium. Information accumulated, prepared, or
74 18 organized for a buyer or its agent is an information
74 19 service even though it may incorporate preexisting
74 20 components of data or other information. "Information
74 21 services" includes, but is not limited to, database
74 22 files, mailing lists, subscription files, market
74 23 research, credit reports, surveys, real estate
74 24 listings, bond rating reports, abstracts of title, bad
74 25 check lists, broadcasting rating services, wire
74 26 services, and scouting reports, or other similar
74 27 items.
74 28 66. The sales price of a sale at retail if the
74 29 substance of the transaction is delivered to the
74 30 purchaser digitally, electronically, or utilizing
74 31 cable, or by radio waves, microwaves, satellites, or
74 32 fiber optics.
74 33 67. a. The sales price from the sale of an
74 34 article of clothing designed to be worn on or about
74 35 the human body if all of the following apply:
74 36 (1) The sales price of the article is less than
74 37 one hundred dollars.
74 38 (2) The sale takes place during a period beginning
74 39 at 12:01 a.m. on the first Friday in August and ending
74 40 at midnight on the following Saturday.
74 41 b. This subsection does not apply to any of the
74 42 following:
74 43 (1) Sport or recreational equipment and protective
74 44 equipment.
74 45 (2) Clothing accessories or equipment.
74 46 (3) The rental of clothing.
74 47 c. For purposes of this subsection:
74 48 (1) "Clothing" means all human wearing apparel
74 49 suitable for general use. "Clothing" includes, but is
74 50 not limited to the following: aprons, household and
75 1 shop; athletic supporters; baby receiving blankets;
75 2 bathing suits and caps; beach capes and coats; belts
75 3 and suspenders; boots; coats and jackets; costumes;
75 4 diapers (children and adults, including disposable
75 5 diapers); earmuffs; footlets; formal wear; garters and
75 6 garter belts; girdles; gloves and mittens for general
75 7 use; hats and caps; hosiery; insoles for shoes; lab
75 8 coats; neckties; overshoes; pantyhose; rainwear;
75 9 rubber pants; sandals; scarves; shoes and shoelaces;
75 10 slippers; sneakers; socks and stockings; steel=toed
75 11 shoes; underwear; uniforms, athletic and nonathletic;
75 12 and wedding apparel.
75 13 "Clothing" does not include the following: belt
75 14 buckles sold separately; costume masks sold
75 15 separately; patches and emblems sold separately;
75 16 sewing equipment and supplies (including, but not
75 17 limited to, knitting needles, patterns, pins,
75 18 scissors, sewing machines, sewing needles, tape
75 19 measures, and thimbles); and sewing materials that
75 20 become part of clothing (including, but not limited
75 21 to, buttons, fabric, lace, thread, yarn, and zippers).
75 22 (2) "Clothing accessories or equipment" means
75 23 incidental items worn on the person or in conjunction
75 24 with clothing. "Clothing accessories or equipment"
75 25 includes, but is not limited to, the following:
75 26 briefcases; cosmetics; hair notions (including, but
75 27 not limited to, barrettes, hair bows, and hair nets);
75 28 handbags; handkerchiefs; jewelry; sunglasses,
75 29 nonprescription; umbrellas; wallets; watches; and wigs
75 30 and hairpieces.
75 31 (3) "Protective equipment" means items for human
75 32 wear and designed as protection for the wearer against
75 33 injury or disease or as protection against damage or
75 34 injury of other persons or property but not suitable
75 35 for general use. "Protective equipment" includes, but
75 36 is not limited to, the following: breathing masks;
75 37 clean room apparel and equipment; ear and hearing
75 38 protectors; face shields; hard hats; helmets; paint or
75 39 dust respirators; protective gloves; safety glasses
75 40 and goggles; safety belts; tool belts; and welders
75 41 gloves and masks.
75 42 (4) "Sport or recreational equipment" means items
75 43 designed for human use and worn in conjunction with an
75 44 athletic or recreational activity that are not
75 45 suitable for general use. "Sport or recreational
75 46 equipment" includes, but is not limited to, the
75 47 following: ballet and tap shoes; cleated or spiked
75 48 athletic shoes; gloves (including, but not limited to,
75 49 baseball, bowling, boxing, hockey, and golf); goggles;
75 50 hand and elbow guards; life preservers and vests;
76 1 mouth guards; roller and ice skates; shin guards;
76 2 shoulder pads; ski boots; waders; and wetsuits and
76 3 fins.
76 4 68. a. Subject to paragraph "b", the sales price
76 5 from the sale or furnishing of metered gas,
76 6 electricity, and fuel, including propane and heating
76 7 oil, to residential customers which is used to provide
76 8 energy for residential dwellings and units of
76 9 apartment and condominium complexes used for human
76 10 occupancy.
76 11 b. The exemption in this subsection shall be
76 12 phased in by means of a reduction in the tax rate as
76 13 follows:
76 14 (1) If the date of the utility billing or meter
76 15 reading cycle of the residential customer for the sale
76 16 or furnishing of metered gas and electricity is on or
76 17 after January 1, 2002, through December 31, 2002, or
76 18 if the sale or furnishing of fuel for purposes of
76 19 residential energy and the delivery of the fuel occurs
76 20 on or after January 1, 2002, through December 31,
76 21 2002, the rate of tax is four percent of the sales
76 22 price.
76 23 (2) If the date of the utility billing or meter
76 24 reading cycle of the residential customer for the sale
76 25 or furnishing of metered gas and electricity is on or
76 26 after January 1, 2003, through June 30, 2008, or if
76 27 the sale or furnishing of fuel for purposes of
76 28 residential energy and the delivery of the fuel occurs
76 29 on or after January 1, 2003, through June 30, 2008,
76 30 the rate of tax is three percent of the sales price.
76 31 (3) If the date of the utility billing or meter
76 32 reading cycle of the residential customer for the sale
76 33 or furnishing of metered gas and electricity is on or
76 34 after July 1, 2008, through June 30, 2009, or if the
76 35 sale or furnishing of fuel for purposes of residential
76 36 energy and the delivery of the fuel occurs on or after
76 37 July 1, 2008, through June 30, 2009, the rate of tax
76 38 is two percent of the sales price.
76 39 (4) If the date of the utility billing or meter
76 40 reading cycle of the residential customer for the sale
76 41 or furnishing of metered gas and electricity is on or
76 42 after July 1, 2009, through June 30, 2010, or if the
76 43 sale or furnishing of fuel for purposes of residential
76 44 energy and the delivery of the fuel occurs on or after
76 45 July 1, 2009, through June 30, 2010, the rate of tax
76 46 is one percent of the sales price.
76 47 (5) If the date of the utility billing or meter
76 48 reading cycle of the residential customer for the sale
76 49 or furnishing of metered gas and electricity is on or
76 50 after July 1, 2010, or if the sale, furnishing, or
77 1 service of fuel for purposes of residential energy and
77 2 the delivery of the fuel occurs on or after July 1,
77 3 2010, the rate of tax is zero percent of the sales
77 4 price.
77 5 c. The exemption in this subsection does not apply
77 6 to local option sales and services tax imposed
77 7 pursuant to chapters 423B and 423E.
77 8 69. The sales price from charges paid for the
77 9 delivery of electricity or natural gas if the sale or
77 10 furnishing of the electricity or natural gas or its
77 11 use is exempt from the tax on sales prices imposed
77 12 under this subchapter or from the use tax imposed
77 13 under subchapter III.
77 14 70. The sales price from the sales, furnishing, or
77 15 service of transportation service except the rental of
77 16 recreational vehicles or recreational boats, except
77 17 the rental of motor vehicles subject to registration
77 18 which are registered for a gross weight of thirteen
77 19 tons or less for a period of sixty days or less, and
77 20 except the rental of aircraft for a period of sixty
77 21 days or less. This exemption does not apply to the
77 22 transportation of electric energy or natural gas.
77 23 71. The sales price from sales of tangible
77 24 personal property used or to be used as railroad
77 25 rolling stock for transporting persons or property, or
77 26 as materials or parts therefor.
77 27 72. The sales price from the sales of special fuel
77 28 for diesel engines consumed or used in the operation
77 29 of ships, barges, or waterborne vessels which are used
77 30 primarily in or for the transportation of property or
77 31 cargo, or the conveyance of persons for hire on rivers
77 32 bordering on the state if the fuel is delivered by the
77 33 seller to the purchaser's barge, ship, or waterborne
77 34 vessel while it is afloat upon such a river.
77 35 73. The sales price from sales of vehicles subject
77 36 to registration or subject only to the issuance of a
77 37 certificate of title and sales of aircraft subject to
77 38 registration under section 328.20.
77 39 74. The sales price from the sale of aircraft for
77 40 use in a scheduled interstate federal aviation
77 41 administration certificated air carrier operation.
77 42 75. The sales price from the sale or rental of
77 43 aircraft; the sale or rental of tangible personal
77 44 property permanently affixed or attached as a
77 45 component part of the aircraft, including but not
77 46 limited to repair or replacement materials or parts;
77 47 and the sales price of all services used for aircraft
77 48 repair, remodeling, and maintenance services when such
77 49 services are performed on aircraft, aircraft engines,
77 50 or aircraft component materials or parts. For the
78 1 purposes of this exemption, "aircraft" means aircraft
78 2 used in a scheduled interstate federal aviation
78 3 administration certificated air carrier operation.
78 4 76. The sales price from the sale or rental of
78 5 tangible personal property permanently affixed or
78 6 attached as a component part of the aircraft,
78 7 including but not limited to repair or replacement
78 8 materials or parts; and the sales price of all
78 9 services used for aircraft repair, remodeling, and
78 10 maintenance services when such services are performed
78 11 on aircraft, aircraft engines, or aircraft component
78 12 materials or parts. For the purposes of this
78 13 exemption, "aircraft" means aircraft used in
78 14 nonscheduled interstate federal aviation
78 15 administration certificated air carrier operation
78 16 operating under 14 C.F.R. ch. 1, pt. 135.
78 17 77. The sales price from the sale of aircraft to
78 18 an aircraft dealer who in turn rents or leases the
78 19 aircraft if all of the following apply:
78 20 a. The aircraft is kept in the inventory of the
78 21 dealer for sale at all times.
78 22 b. The dealer reserves the right to immediately
78 23 take the aircraft from the renter or lessee when a
78 24 buyer is found.
78 25 c. The renter or lessee is aware that the dealer
78 26 will immediately take the aircraft when a buyer is
78 27 found.
78 28 If an aircraft exempt under this subsection is used
78 29 for any purpose other than leasing or renting, or the
78 30 conditions in paragraphs "a", "b", and "c" are not
78 31 continuously met, the dealer claiming the exemption
78 32 under this subsection is liable for the tax that would
78 33 have been due except for this subsection. The tax
78 34 shall be computed upon the original purchase price.
78 35 78. The sales price from sales or rental of
78 36 tangible personal property, or services rendered by
78 37 any entity where the profits from the sales or rental
78 38 of the tangible personal property, or services
78 39 rendered are used by or donated to a nonprofit entity
78 40 which is exempt from federal income taxation pursuant
78 41 to section 501(c)(3) of the Internal Revenue Code, a
78 42 government entity, or a nonprofit private educational
78 43 institution, and where the entire proceeds from the
78 44 sales, rental, or services are expended for any of the
78 45 following purposes:
78 46 a. Educational.
78 47 b. Religious.
78 48 c. Charitable. A charitable act is an act done
78 49 out of goodwill, benevolence, and a desire to add to
78 50 or to improve the good of humankind in general or any
79 1 class or portion of humankind, with no pecuniary
79 2 profit inuring to the person performing the service or
79 3 giving the gift.
79 4 This exemption does not apply to the sales price
79 5 from games of skill, games of chance, raffles, and
79 6 bingo games as defined in chapter 99B. This exemption
79 7 is disallowed on the amount of the sales price only to
79 8 the extent the profits from the sales, rental, or
79 9 services are not used by or donated to the appropriate
79 10 entity and expended for educational, religious, or
79 11 charitable purposes.
79 12 79. The sales price from the sale or rental of
79 13 tangible personal property or from services furnished
79 14 to a recognized community action agency as provided in
79 15 section 216A.93 to be used for the purposes of the
79 16 agency.
79 17 80. a. For purposes of this subsection,
79 18 "designated exempt entity" means an entity which is
79 19 designated in section 423.4, subsection 1.
79 20 b. If a contractor, subcontractor, or builder is
79 21 to use building materials, supplies, and equipment in
79 22 the performance of a construction contract with a
79 23 designated exempt entity, the person shall purchase
79 24 such items of tangible personal property without
79 25 liability for the tax if such property will be used in
79 26 the performance of the construction contract and a
79 27 purchasing agent authorization letter and an exemption
79 28 certificate, issued by the designated exempt entity,
79 29 are presented to the retailer.
79 30 c. Where the owner, contractor, subcontractor, or
79 31 builder is also a retailer holding a retail sales tax
79 32 permit and transacting retail sales of building
79 33 materials, supplies, and equipment, the tax shall not
79 34 be due when materials are withdrawn from inventory for
79 35 use in construction performed for a designated exempt
79 36 entity if an exemption certificate is received from
79 37 such entity.
79 38 d. Tax shall not apply to tangible personal
79 39 property purchased and consumed by a manufacturer as
79 40 building materials, supplies, or equipment in the
79 41 performance of a construction contract for a
79 42 designated exempt entity, if a purchasing agent
79 43 authorization letter and an exemption certificate are
79 44 received from such entity and presented to a retailer.
79 45 81. The sales price from the sales of lottery
79 46 tickets or shares pursuant to chapter 99G.
79 47 82. The sales price from the sale or rental of
79 48 core and mold making equipment and sand handling
79 49 equipment directly and primarily used in the mold
79 50 making process by a foundry.
80 1 83. The sales price from noncustomer point of sale
80 2 or noncustomer automated teller machine access or
80 3 service charges assessed by a financial institution.
80 4 For purposes of this subsection, "financial
80 5 institution" means the same as defined in section
80 6 527.2.
80 7 Sec. 106. NEW SECTION. 423.4 REFUNDS.
80 8 1. A private nonprofit educational institution in
80 9 this state, nonprofit private museum in this state,
80 10 tax=certifying or tax=levying body or governmental
80 11 subdivision of the state, including the state board of
80 12 regents, state department of human services, state
80 13 department of transportation, a municipally owned
80 14 solid waste facility which sells all or part of its
80 15 processed waste as fuel to a municipally owned public
80 16 utility, and all divisions, boards, commissions,
80 17 agencies, or instrumentalities of state, federal,
80 18 county, or municipal government which do not have
80 19 earnings going to the benefit of an equity investor or
80 20 stockholder, may make application to the department
80 21 for the refund of the sales or use tax upon the sales
80 22 price of all sales of goods, wares, or merchandise, or
80 23 from services furnished to a contractor, used in the
80 24 fulfillment of a written contract with the state of
80 25 Iowa, any political subdivision of the state, or a
80 26 division, board, commission, agency, or
80 27 instrumentality of the state or a political
80 28 subdivision, a private nonprofit educational
80 29 institution in this state, or a nonprofit private
80 30 museum in this state if the property becomes an
80 31 integral part of the project under contract and at the
80 32 completion of the project becomes public property, is
80 33 devoted to educational uses, or becomes a nonprofit
80 34 private museum; except goods, wares, or merchandise,
80 35 or services furnished which are used in the
80 36 performance of any contract in connection with the
80 37 operation of any municipal utility engaged in selling
80 38 gas, electricity, or heat to the general public or in
80 39 connection with the operation of a municipal pay
80 40 television system; and except goods, wares, and
80 41 merchandise used in the performance of a contract for
80 42 a "project" under chapter 419 as defined in that
80 43 chapter other than goods, wares, or merchandise used
80 44 in the performance of a contract for a "project" under
80 45 chapter 419 for which a bond issue was approved by a
80 46 municipality prior to July 1, 1968, or for which the
80 47 goods, wares, or merchandise becomes an integral part
80 48 of the project under contract and at the completion of
80 49 the project becomes public property or is devoted to
80 50 educational uses.
81 1 a. Such contractor shall state under oath, on
81 2 forms provided by the department, the amount of such
81 3 sales of goods, wares, or merchandise, or services
81 4 furnished and used in the performance of such
81 5 contract, and upon which sales or use tax has been
81 6 paid, and shall file such forms with the governmental
81 7 unit, private nonprofit educational institution, or
81 8 nonprofit private museum which has made any written
81 9 contract for performance by the contractor. The forms
81 10 shall be filed by the contractor with the governmental
81 11 unit, educational institution, or nonprofit private
81 12 museum before final settlement is made.
81 13 b. Such governmental unit, educational
81 14 institution, or nonprofit private museum shall, not
81 15 more than one year after the final settlement has been
81 16 made, make application to the department for any
81 17 refund of the amount of the sales or use tax which
81 18 shall have been paid upon any goods, wares, or
81 19 merchandise, or services furnished, the application to
81 20 be made in the manner and upon forms to be provided by
81 21 the department, and the department shall forthwith
81 22 audit the claim and, if approved, issue a warrant to
81 23 the governmental unit, educational institution, or
81 24 nonprofit private museum in the amount of the sales or
81 25 use tax which has been paid to the state of Iowa under
81 26 the contract.
81 27 Refunds authorized under this subsection shall
81 28 accrue interest at the rate in effect under section
81 29 421.7 from the first day of the second calendar month
81 30 following the date the refund claim is received by the
81 31 department.
81 32 c. Any contractor who willfully makes a false
81 33 report of tax paid under the provisions of this
81 34 subsection is guilty of a simple misdemeanor and in
81 35 addition shall be liable for the payment of the tax
81 36 and any applicable penalty and interest.
81 37 2. The refund of sales and use tax paid on
81 38 transportation construction projects let by the state
81 39 department of transportation is subject to the special
81 40 provisions of this subsection.
81 41 a. A contractor awarded a contract for a
81 42 transportation construction project is considered the
81 43 consumer of all building materials, building supplies,
81 44 and equipment and shall pay sales tax to the supplier
81 45 or remit consumer use tax directly to the department.
81 46 b. The contractor is not required to file
81 47 information with the state department of
81 48 transportation stating the amount of goods, wares, or
81 49 merchandise, or services rendered, furnished, or
81 50 performed and used in the performance of the contract
82 1 or the amount of sales or use tax paid.
82 2 c. The state department of transportation shall
82 3 file a refund claim based on a formula that considers
82 4 the following:
82 5 (1) The quantity of material to complete the
82 6 contract, and quantities of items of work.
82 7 (2) The estimated cost of these materials included
82 8 in the items of work, and the state sales or use tax
82 9 to be paid on the tax rate in effect in section 423.2.
82 10 The quantity of materials shall be determined after
82 11 each letting based on the contract quantities of all
82 12 items of work let to contract. The quantity of
82 13 individual component materials required for each item
82 14 shall be determined and maintained in a database. The
82 15 total quantities of materials shall be determined by
82 16 multiplying the quantities of component materials for
82 17 each contract item of work by the total quantities of
82 18 each contract item for each letting. Where variances
82 19 exist in the cost of materials, the lowest cost shall
82 20 be used as the base cost.
82 21 d. Only the state sales or use tax is refundable.
82 22 Local option taxes paid by the contractor are not
82 23 refundable.
82 24 3. A relief agency may apply to the director for
82 25 refund of the amount of sales or use tax imposed and
82 26 paid upon sales to it of any goods, wares,
82 27 merchandise, or services furnished, used for free
82 28 distribution to the poor and needy.
82 29 a. The refunds may be obtained only in the
82 30 following amounts and manner and only under the
82 31 following conditions:
82 32 (1) On forms furnished by the department, and
82 33 filed within the time as the director shall provide by
82 34 rule, the relief agency shall report to the department
82 35 the total amount or amounts, valued in money, expended
82 36 directly or indirectly for goods, wares, merchandise,
82 37 or services furnished, used for free distribution to
82 38 the poor and needy.
82 39 (2) On these forms the relief agency shall
82 40 separately list the persons making the sales to it or
82 41 to its order, together with the dates of the sales,
82 42 and the total amount so expended by the relief agency.
82 43 (3) The relief agency must prove to the
82 44 satisfaction of the director that the person making
82 45 the sales has included the amount thereof in the
82 46 computation of the sales price of such person and that
82 47 such person has paid the tax levied by this subchapter
82 48 or subchapter III, based upon such computation of the
82 49 sales price.
82 50 b. If satisfied that the foregoing conditions and
83 1 requirements have been complied with, the director
83 2 shall refund the amount claimed by the relief agency.
83 3 SUBCHAPTER III
83 4 USE TAX
83 5 Sec. 107. NEW SECTION. 423.5 IMPOSITION OF TAX.
83 6 An excise tax at the rate of five percent of the
83 7 purchase price or installed purchase price is imposed
83 8 on the following:
83 9 1. The use in this state of tangible personal
83 10 property as defined in section 423.1, including
83 11 aircraft subject to registration under section 328.20,
83 12 purchased for use in this state. For the purposes of
83 13 this subchapter, the furnishing or use of the
83 14 following services is also treated as the use of
83 15 tangible personal property: optional service or
83 16 warranty contracts, except residential service
83 17 contracts regulated under chapter 523C, vulcanizing,
83 18 recapping, or retreading services, engraving,
83 19 photography, retouching, printing, or binding
83 20 services, and communication service when furnished or
83 21 delivered to consumers or users within this state.
83 22 2. The use of manufactured housing in this state,
83 23 on the purchase price if the manufactured housing is
83 24 sold in the form of tangible personal property or on
83 25 the installed purchase price if the manufactured
83 26 housing is sold in the form of realty.
83 27 3. The use of leased vehicles, on the amount
83 28 subject to tax as calculated pursuant to section
83 29 423.27.
83 30 4. Purchases of tangible personal property made
83 31 from the government of the United States or any of its
83 32 agencies by ultimate consumers shall be subject to the
83 33 tax imposed by this section. Services purchased from
83 34 the same source or sources shall be subject to the
83 35 service tax imposed by this subchapter and apply to
83 36 the user of the services.
83 37 5. The use in this state of services enumerated in
83 38 section 423.2. This tax is applicable where services
83 39 are furnished in this state or where the product or
83 40 result of the service is used in this state.
83 41 6. The excise tax is imposed upon every person
83 42 using the property within this state until the tax has
83 43 been paid directly to the county treasurer, the state
83 44 department of transportation, a retailer, or the
83 45 department. This tax is imposed on every person using
83 46 the services or the product of the services in this
83 47 state until the user has paid the tax either to an
83 48 Iowa use tax permit holder or to the department.
83 49 7. For the purpose of the proper administration of
83 50 the use tax and to prevent its evasion, evidence that
84 1 tangible personal property was sold by any person for
84 2 delivery in this state shall be prima facie evidence
84 3 that such tangible personal property was sold for use
84 4 in this state.
84 5 Sec. 108. NEW SECTION. 423.6 EXEMPTIONS.
84 6 The use in this state of the following tangible
84 7 personal property and services is exempted from the
84 8 tax imposed by this subchapter:
84 9 1. Tangible personal property and enumerated
84 10 services, the sales price from the sale of which are
84 11 required to be included in the measure of the sales
84 12 tax, if that tax has been paid to the department or
84 13 the retailer. This exemption does not include
84 14 vehicles subject to registration or subject only to
84 15 the issuance of a certificate of title.
84 16 2. The sale of tangible personal property or the
84 17 furnishing of services in the regular course of
84 18 business.
84 19 3. Property used in processing. The use of
84 20 property in processing within the meaning of this
84 21 subsection shall mean and include any of the
84 22 following:
84 23 a. Any tangible personal property including
84 24 containers which it is intended shall, by means of
84 25 fabrication, compounding, manufacturing, or
84 26 germination, become an integral part of other tangible
84 27 personal property intended to be sold ultimately at
84 28 retail, and containers used in the collection,
84 29 recovery, or return of empty beverage containers
84 30 subject to chapter 455C.
84 31 b. Fuel which is consumed in creating power, heat,
84 32 or steam for processing or for generating electric
84 33 current.
84 34 c. Chemicals, solvents, sorbents, or reagents,
84 35 which are directly used and are consumed, dissipated,
84 36 or depleted in processing tangible personal property
84 37 which is intended to be sold ultimately at retail, and
84 38 which may not become a component or integral part of
84 39 the finished product.
84 40 d. The distribution to the public of free
84 41 newspapers or shoppers guides shall be deemed a retail
84 42 sale for purposes of the processing exemption in this
84 43 subsection.
84 44 4. All articles of tangible personal property
84 45 brought into the state of Iowa by a nonresident
84 46 individual for the individual's use or enjoyment while
84 47 within the state.
84 48 5. Services exempt from taxation by the provisions
84 49 of section 423.3.
84 50 6. Tangible personal property or services the
85 1 sales price of which is exempt from the sales tax
85 2 under section 423.3, except subsections 39 and 73, as
85 3 it relates to the sale, but not the lease or rental,
85 4 of vehicles subject to registration or subject only to
85 5 the issuance of a certificate of title and as it
85 6 relates to aircraft subject to registration under
85 7 section 328.20.
85 8 7. Advertisement and promotional material and
85 9 matter, seed catalogs, envelopes for same, and other
85 10 similar material temporarily stored in this state
85 11 which are acquired outside of Iowa and which,
85 12 subsequent to being brought into this state, are sent
85 13 outside of Iowa, either singly or physically attached
85 14 to other tangible personal property sent outside of
85 15 Iowa.
85 16 8. Vehicles, as defined in section 321.1,
85 17 subsections 41, 64A, 71, 85, and 88, except such
85 18 vehicles subject to registration which are designed
85 19 primarily for carrying persons, when purchased for
85 20 lease and actually leased to a lessee for use outside
85 21 the state of Iowa and the subsequent sole use in Iowa
85 22 is in interstate commerce or interstate
85 23 transportation.
85 24 9. Tangible personal property which, by means of
85 25 fabrication, compounding, or manufacturing, becomes an
85 26 integral part of vehicles, as defined in section
85 27 321.1, subsections 41, 64A, 71, 85, and 88,
85 28 manufactured for lease and actually leased to a lessee
85 29 for use outside the state of Iowa and the subsequent
85 30 sole use in Iowa is in interstate commerce or
85 31 interstate transportation. Vehicles subject to
85 32 registration which are designed primarily for carrying
85 33 persons are excluded from this subsection.
85 34 10. Vehicles subject to registration which are
85 35 transferred from a business or individual conducting a
85 36 business within this state as a sole proprietorship,
85 37 partnership, or limited liability company to a
85 38 corporation formed by the sole proprietorship,
85 39 partnership, or limited liability company for the
85 40 purpose of continuing the business when all of the
85 41 stock of the corporation so formed is owned by the
85 42 sole proprietor and the sole proprietor's spouse, by
85 43 all the partners in the case of a partnership, or by
85 44 all the members in the case of a limited liability
85 45 company. This exemption is equally available where
85 46 the vehicles subject to registration are transferred
85 47 from a corporation to a sole proprietorship,
85 48 partnership, or limited liability company formed by
85 49 that corporation for the purpose of continuing the
85 50 business when all of the incidents of ownership are
86 1 owned by the same person or persons who were
86 2 stockholders of the corporation.
86 3 This exemption also applies where the vehicles
86 4 subject to registration are transferred from a
86 5 corporation as part of the liquidation of the
86 6 corporation to its stockholders if within three months
86 7 of such transfer the stockholders retransfer those
86 8 vehicles subject to registration to a sole
86 9 proprietorship, partnership, or limited liability
86 10 company for the purpose of continuing the business of
86 11 the corporation when all of the incidents of ownership
86 12 are owned by the same person or persons who were
86 13 stockholders of the corporation.
86 14 10A. Vehicles subject to registration which are
86 15 transferred from a corporation that is primarily
86 16 engaged in the business of leasing vehicles subject to
86 17 registration to a corporation that is primarily
86 18 engaged in the business of leasing vehicles subject to
86 19 registration when the transferor and transferee
86 20 corporations are part of the same controlled group for
86 21 federal income tax purposes.
86 22 11. Vehicles registered or operated under chapter
86 23 326 and used substantially in interstate commerce,
86 24 section 423.5, subsection 7, notwithstanding. For
86 25 purposes of this subsection, "substantially in
86 26 interstate commerce" means that a minimum of twenty=
86 27 five percent of the miles operated by the vehicle
86 28 accrues in states other than Iowa. This subsection
86 29 applies only to vehicles which are registered for a
86 30 gross weight of thirteen tons or more.
86 31 For purposes of this subsection, trailers and
86 32 semitrailers registered or operated under chapter 326
86 33 are deemed to be used substantially in interstate
86 34 commerce and to be registered for a gross weight of
86 35 thirteen tons or more.
86 36 For the purposes of this subsection, if a vehicle
86 37 meets the requirement that twenty=five percent of the
86 38 miles operated accrues in states other than Iowa in
86 39 each year of the first four=year period of operation,
86 40 the exemption from use tax shall continue until the
86 41 vehicle is sold or transferred. If the vehicle is
86 42 found to have not met the exemption requirements or
86 43 the exemption was revoked, the value of the vehicle
86 44 upon which the use tax shall be imposed is the book or
86 45 market value, whichever is less, at the time the
86 46 exemption requirements were not met or the exemption
86 47 was revoked.
86 48 12. Mobile homes and manufactured housing the use
86 49 of which has previously been subject to the tax
86 50 imposed under this subchapter and for which that tax
87 1 has been paid.
87 2 13. Mobile homes to the extent of the portion of
87 3 the purchase price of the mobile home which is not
87 4 attributable to the cost of the tangible personal
87 5 property used in the processing of the mobile home,
87 6 and manufactured housing to the extent of the purchase
87 7 price or the installed purchase price of the
87 8 manufactured housing which is not attributable to the
87 9 cost of the tangible personal property used in the
87 10 processing of the manufactured housing. For purposes
87 11 of this exemption, the portion of the purchase price
87 12 which is not attributable to the cost of the tangible
87 13 personal property used in the processing of the mobile
87 14 home is forty percent and the portion of the purchase
87 15 price or installed purchase price which is not
87 16 attributable to the cost of the tangible personal
87 17 property used in the processing of the manufactured
87 18 housing is forty percent.
87 19 14. Tangible personal property used or to be used
87 20 as a ship, barge, or waterborne vessel which is used
87 21 or to be used primarily in or for the transportation
87 22 of property or cargo for hire on the rivers bordering
87 23 the state or as materials or parts of such ship,
87 24 barge, or waterborne vessel.
87 25 15. Vehicles subject to registration in any state
87 26 when purchased for rental or registered and titled by
87 27 a motor vehicle dealer licensed pursuant to chapter
87 28 322 for rental use, and held for rental for a period
87 29 of one hundred twenty days or more and actually rented
87 30 for periods of sixty days or less by a person
87 31 regularly engaged in the business of renting vehicles
87 32 including, but not limited to, motor vehicle dealers
87 33 licensed pursuant to chapter 322 who rent automobiles
87 34 to users, if the rental of the vehicles is subject to
87 35 taxation under chapter 423C.
87 36 16. Motor vehicles subject to registration which
87 37 were registered and titled between July 1, 1982, and
87 38 July 1, 1992, to a motor vehicle dealer licensed under
87 39 chapter 322 and which were rented to a user as defined
87 40 in section 423C.2 if the following occurred:
87 41 a. The dealer kept the vehicle on the inventory of
87 42 vehicles for sale at all times.
87 43 b. The vehicle was to be immediately taken from
87 44 the user of the vehicle when a buyer was found.
87 45 c. The user was aware of this situation.
87 46 17. Vehicles subject to registration under chapter
87 47 321, with a gross vehicle weight rating of less than
87 48 sixteen thousand pounds, excluding motorcycles and
87 49 motorized bicycles, when purchased for lease and
87 50 titled by the lessor licensed pursuant to chapter 321F
88 1 and actually leased for a period of twelve months or
88 2 more if the lease of the vehicle is subject to
88 3 taxation under section 423.27.
88 4 A lessor may maintain the exemption from use tax
88 5 under this subsection for a qualifying lease that
88 6 terminates at the conclusion or prior to the
88 7 contracted expiration date, if the lessor does not use
88 8 the vehicle for any purpose other than for lease.
88 9 Once the vehicle is used by the lessor for a purpose
88 10 other than for lease, the exemption from use tax under
88 11 this subsection no longer applies and, unless there is
88 12 an exemption from the use tax, use tax is due on the
88 13 fair market value of the vehicle determined at the
88 14 time the lessor uses the vehicle for a purpose other
88 15 than for lease, payable to the department. If the
88 16 lessor holds the vehicle exclusively for sale, use tax
88 17 is due and payable on the purchase price of the
88 18 vehicle at the time of purchase pursuant to this
88 19 subchapter.
88 20 18. Aircraft for use in a scheduled interstate
88 21 federal aviation administration certificated air
88 22 carrier operation.
88 23 19. Aircraft; tangible personal property
88 24 permanently affixed or attached as a component part of
88 25 the aircraft, including but not limited to repair or
88 26 replacement materials or parts; and all services used
88 27 for aircraft repair, remodeling, and maintenance
88 28 services when such services are performed on aircraft,
88 29 aircraft engines, or aircraft component materials or
88 30 parts. For the purposes of this exemption, "aircraft"
88 31 means aircraft used in a scheduled interstate federal
88 32 aviation administration certificated air carrier
88 33 operation.
88 34 20. Tangible personal property permanently affixed
88 35 or attached as a component part of the aircraft,
88 36 including but not limited to repair or replacement
88 37 materials or parts; and all services used for aircraft
88 38 repair, remodeling, and maintenance services when such
88 39 services are performed on aircraft, aircraft engines,
88 40 or aircraft component materials or parts. For the
88 41 purposes of this exemption, "aircraft" means aircraft
88 42 used in a nonscheduled interstate federal aviation
88 43 administration certificated air carrier operation
88 44 operating under 14 C.F.R., ch. 1, pt. 135.
88 45 21. Aircraft sold to an aircraft dealer who in
88 46 turn rents or leases the aircraft if all of the
88 47 following apply:
88 48 a. The aircraft is kept in the inventory of the
88 49 dealer for sale at all times.
88 50 b. The dealer reserves the right to immediately
89 1 take the aircraft from the renter or lessee when a
89 2 buyer is found.
89 3 c. The renter or lessee is aware that the dealer
89 4 will immediately take the aircraft when a buyer is
89 5 found.
89 6 If an aircraft exempt under this subsection is used
89 7 for any purpose other than leasing or renting, or the
89 8 conditions in paragraphs "a", "b", and "c" are not
89 9 continuously met, the dealer claiming the exemption
89 10 under this subsection is liable for the tax that would
89 11 have been due except for this subsection. The tax
89 12 shall be computed upon the original purchase price.
89 13 22. The use in this state of building materials,
89 14 supplies, or equipment, the sale or use of which is
89 15 not treated as a retail sale or a sale at retail under
89 16 section 423.2, subsection 1.
89 17 23. Exempted from the purchase price of any
89 18 vehicle subject to registration is:
89 19 a. The amount of any cash rebate which is provided
89 20 by a motor vehicle manufacturer to the purchaser of
89 21 the vehicle subject to registration so long as the
89 22 rebate is applied to the purchase price of the
89 23 vehicle.
89 24 b. That in transactions, except those subject to
89 25 paragraph "c", in which tangible personal property is
89 26 traded toward the purchase price of other tangible
89 27 personal property the purchase price is only that
89 28 portion of the purchase price which is payable in
89 29 money to the retailer if the following conditions are
89 30 met:
89 31 (1) The tangible personal property traded to the
89 32 retailer is the type of property normally sold in the
89 33 regular course of the retailer's business.
89 34 (2) The tangible personal property traded to the
89 35 retailer is intended by the retailer to be ultimately
89 36 sold at retail or is intended to be used by the
89 37 retailer or another in the remanufacturing of a like
89 38 item.
89 39 c. In a transaction between persons, neither of
89 40 which is a retailer of vehicles subject to
89 41 registration, in which a vehicle subject to
89 42 registration is traded toward the purchase price of
89 43 another vehicle subject to registration, the amount of
89 44 the trade=in value allowed on the vehicle subject to
89 45 registration traded.
89 46 SUBCHAPTER IV
89 47 UNIFORM SALES AND USE TAX ADMINISTRATION ACT
89 48 Sec. 109. NEW SECTION. 423.7 TITLE.
89 49 This subchapter shall be known and may be cited as
89 50 the "Uniform Sales and Use Tax Administration Act".
90 1 Sec. 110. NEW SECTION. 423.8 LEGISLATIVE FINDING
90 2 AND INTENT.
90 3 The general assembly finds that Iowa should enter
90 4 into an agreement with one or more states to simplify
90 5 and modernize sales and use tax administration in
90 6 order to substantially reduce the burden of tax
90 7 compliance for all sellers and for all types of
90 8 commerce. It is the intent of the general assembly
90 9 that entering into this agreement will lead to
90 10 simplification and modernization of the sales and use
90 11 tax law and not to the imposition of new taxes or an
90 12 increase or decrease in the existing number of
90 13 exemptions, unless such a result is unavoidable under
90 14 the terms of the agreement.
90 15 Sec. 111. NEW SECTION. 423.9 AUTHORITY TO ENTER
90 16 AGREEMENT AND TO REPRESENT THE STATE.
90 17 The director is authorized and directed to enter
90 18 into the streamlined sales and use tax agreement with
90 19 one or more states to simplify and modernize sales and
90 20 use tax administration in order to substantially
90 21 reduce the burden of tax compliance for all sellers
90 22 and for all types of commerce.
90 23 The director is further authorized to take other
90 24 actions reasonably required to implement the
90 25 provisions set forth in this chapter. Other actions
90 26 authorized by this section include, but are not
90 27 limited to, the adoption of rules and the joint
90 28 procurement, with other member states, of goods and
90 29 services in furtherance of the cooperative agreement.
90 30 The director or the director's designee is
90 31 authorized to be a member of the governing board
90 32 established pursuant to the agreement and to represent
90 33 Iowa before that body.
90 34 Sec. 112. NEW SECTION. 423.10 RELATIONSHIP TO
90 35 STATE LAW.
90 36 Entry into the agreement by the director does not
90 37 amend or modify any law of this state. Implementation
90 38 of any condition of the agreement in this state,
90 39 whether adopted before, at, or after membership of
90 40 this state in the agreement, shall be by action of the
90 41 general assembly.
90 42 Sec. 113. NEW SECTION. 423.11 AGREEMENT
90 43 REQUIREMENTS.
90 44 The director shall not enter into the agreement
90 45 unless the agreement requires each state to abide by
90 46 the following requirements:
90 47 1. UNIFORM STATE RATE. The agreement must set
90 48 restrictions to achieve more uniform state rates
90 49 through the following:
90 50 a. Limiting the number of state rates.
91 1 b. Limiting the application of maximums on the
91 2 amount of state tax that is due on a transaction.
91 3 c. Limiting the application of thresholds on the
91 4 application of state tax.
91 5 2. UNIFORM STANDARDS. The agreement must
91 6 establish uniform standards for the following:
91 7 a. The sourcing of transactions to taxing
91 8 jurisdictions.
91 9 b. The administration of exempt sales.
91 10 c. The allowances a seller can take for bad debts.
91 11 d. Sales and use tax returns and remittances.
91 12 3. UNIFORM DEFINITIONS. The agreement must
91 13 require states to develop and adopt uniform
91 14 definitions of sales and use tax terms. The
91 15 definitions must enable a state to preserve its
91 16 ability to make policy choices not inconsistent with
91 17 the uniform definitions.
91 18 4. CENTRAL REGISTRATION. The agreement must
91 19 provide a central, electronic registration system that
91 20 allows a seller to register to collect and remit sales
91 21 and use taxes for all member states.
91 22 5. NO NEXUS ATTRIBUTION. The agreement must
91 23 provide that registration with the central
91 24 registration system and the collection of sales and
91 25 use taxes in the member states must not be used as a
91 26 factor in determining whether the seller has nexus
91 27 with a state for any tax.
91 28 6. LOCAL SALES AND USE TAXES. The agreement must
91 29 provide for reduction of the burdens of complying with
91 30 local sales and use taxes through the following:
91 31 a. Restricting variances between the state and
91 32 local tax bases.
91 33 b. Requiring states to administer any sales and
91 34 use taxes levied by local jurisdictions within the
91 35 state so that sellers collecting and remitting these
91 36 taxes must not have to register or file returns with,
91 37 remit funds to, or be subject to independent audits
91 38 from local taxing jurisdictions.
91 39 c. Restricting the frequency of changes in the
91 40 local sales and use tax rates and setting effective
91 41 dates for the application of local jurisdictional
91 42 boundary changes to local sales and use taxes.
91 43 d. Providing notice of changes in local sales and
91 44 use tax rates and of changes in the boundaries of
91 45 local taxing jurisdictions.
91 46 7. MONETARY ALLOWANCES. The agreement must
91 47 outline any monetary allowances that are to be
91 48 provided by the states to sellers or certified service
91 49 providers.
91 50 8. STATE COMPLIANCE. The agreement must require
92 1 each state to certify compliance with the terms of the
92 2 agreement prior to joining and to maintain compliance,
92 3 under the laws of the member state, with all
92 4 provisions of the agreement while a member.
92 5 9. CONSUMER PRIVACY. The agreement must require
92 6 each state to adopt a uniform policy for certified
92 7 service providers that protects the privacy of
92 8 consumers and maintains the confidentiality of tax
92 9 information.
92 10 10. ADVISORY COUNCILS. The agreement must provide
92 11 for the appointment of an advisory council of private
92 12 sector representatives and an advisory council of
92 13 nonmember state representatives to consult with in the
92 14 administration of the agreement.
92 15 Sec. 114. NEW SECTION. 423.12 LIMITED BINDING
92 16 AND BENEFICIAL EFFECT.
92 17 1. The agreement binds and inures only to the
92 18 benefit of Iowa and the other member states. A
92 19 person, other than a member state, is not an intended
92 20 beneficiary of the agreement. Any benefit to a person
92 21 other than a member state is established by the law of
92 22 Iowa and not by the terms of the agreement.
92 23 2. A person shall not have any cause of action or
92 24 defense under the agreement or by virtue of this
92 25 state's entry into the agreement. A person may not
92 26 challenge, in any action brought under any provision
92 27 of law, any action or inaction by any department,
92 28 agency, or other instrumentality of this state, or any
92 29 political subdivision of this state on the ground that
92 30 the action or inaction is inconsistent with the
92 31 agreement.
92 32 3. A law of this state, or the application of it,
92 33 shall not be declared invalid as to any such person or
92 34 circumstance on the ground that the provision or
92 35 application is inconsistent with the agreement.
92 36 SUBCHAPTER V
92 37 SALES AND USE TAX ACT == ADMINISTRATION OF
92 38 RETAILERS NOT REGISTERED UNDER THE AGREEMENT AND OF
92 39 CONSUMERS OBLIGATED TO PAY USE TAX DIRECTLY
92 40 Sec. 115. NEW SECTION. 423.13 PURPOSE OF THIS
92 41 SUBCHAPTER.
92 42 The purpose of this subchapter is to provide for
92 43 the administration and collection of sales or use tax
92 44 on the part of retailers who are not registered under
92 45 the agreement and for the collection of use tax on the
92 46 part of consumers who are obligated to pay that tax
92 47 directly. Any application of the sections of this
92 48 subchapter to retailers registered under the agreement
92 49 is only by way of incorporation by reference into
92 50 subchapter VI of this chapter.
93 1 Sec. 116. NEW SECTION. 423.14 SALES AND USE TAX
93 2 COLLECTION.
93 3 1. a. Sales tax, other than that described in
93 4 paragraph "c", shall be collected by sellers who are
93 5 retailers or by their agents. Sellers or their agents
93 6 shall, as far as practicable, add the sales tax, or
93 7 the average equivalent thereof, to the sales price or
93 8 charge, less trade=ins allowed and taken and when
93 9 added such tax shall constitute a part of the sales
93 10 price or charge, shall be a debt from consumer or user
93 11 to seller or agent until paid, and shall be
93 12 recoverable at law in the same manner as other debts.
93 13 b. In computing the tax to be collected as the
93 14 result of any transaction, the tax computation must be
93 15 carried to the third decimal place. Whenever the
93 16 third decimal place is greater than four, the tax must
93 17 be rounded up to the next whole cent; whenever the
93 18 third decimal place is four or less, the tax must be
93 19 rounded downward to a whole cent. Sellers may elect
93 20 to compute the tax due on transactions on an item or
93 21 invoice basis. Sellers are not required to use a
93 22 bracket system.
93 23 c. The tax imposed upon those sales of motor
93 24 vehicle fuel which are subject to tax and refund under
93 25 chapter 452A shall be collected by the state treasurer
93 26 by way of deduction from refunds otherwise allowable
93 27 under that chapter. The treasurer shall transfer the
93 28 amount of such deductions from the motor vehicle fuel
93 29 tax fund to the special tax fund.
93 30 2. Use tax shall be collected in the following
93 31 manner:
93 32 a. The tax upon the use of all vehicles subject to
93 33 registration or subject only to the issuance of a
93 34 certificate of title or the tax upon the use of
93 35 manufactured housing shall be collected by the county
93 36 treasurer or the state department of transportation
93 37 pursuant to sections 423.26 and 423.27. The county
93 38 treasurer shall retain one dollar from each tax
93 39 payment collected, to be credited to the county
93 40 general fund.
93 41 b. The tax upon the use of all tangible personal
93 42 property other than that enumerated in paragraph "a",
93 43 which is sold by a seller who is a retailer
93 44 maintaining a place of business in this state, or by
93 45 such other retailer or agent as the director shall
93 46 authorize pursuant to section 423.30, shall be
93 47 collected by the retailer or agent and remitted to the
93 48 department, pursuant to the provisions of paragraph
93 49 "e", and sections 423.24, 423.29, 423.30, 423.32, and
93 50 423.33.
94 1 c. The tax upon the use of all tangible personal
94 2 property not paid pursuant to paragraphs "a" and "b"
94 3 shall be paid to the department directly by any person
94 4 using the property within this state, pursuant to the
94 5 provisions of section 423.34.
94 6 d. The tax imposed on the use of services
94 7 enumerated in section 423.5 shall be collected,
94 8 remitted, and paid to the department of revenue and
94 9 finance in the same manner as use tax on tangible
94 10 personal property is collected, remitted, and paid
94 11 under this subchapter.
94 12 e. All persons obligated by paragraph "a", "b", or
94 13 "d", to collect use tax shall, as far as practicable,
94 14 add that tax, or the average equivalent thereof, to
94 15 the purchase price, less trade=ins allowed and taken,
94 16 and when added the tax shall constitute a part of the
94 17 purchase price. Use tax which this section requires
94 18 to be collected by a retailer and any tax collected
94 19 pursuant to this section by a retailer shall
94 20 constitute a debt owed by the retailer to this state.
94 21 Tax which must be paid directly to the department,
94 22 pursuant to paragraph "c" or "d", is to be computed
94 23 and added by the consumer or user to the purchase
94 24 price in the same manner as this paragraph requires a
94 25 seller to compute and add the tax. The tax shall be a
94 26 debt from the consumer or user to the department until
94 27 paid, and shall be recoverable at law in the same
94 28 manner as other debts.
94 29 Sec. 117. NEW SECTION. 423.15 GENERAL SOURCING
94 30 RULES.
94 31 All sellers obligated to collect Iowa sales or use
94 32 tax shall use the standards set out in this section to
94 33 determine where sales of products occur, excluding
94 34 sales enumerated in section 423.16. These provisions
94 35 apply regardless of the characterization of a product
94 36 as tangible personal property, a digital good, or a
94 37 service, excluding telecommunications services. This
94 38 section only applies to determine a seller's
94 39 obligation to pay or collect and remit a sales or use
94 40 tax with respect to the seller's sale of a product.
94 41 This section does not affect the obligation of a
94 42 purchaser or lessee to remit tax on the use of the
94 43 product to the taxing jurisdictions in which the use
94 44 occurs. A seller's obligation to collect Iowa sales
94 45 tax or Iowa use tax only occurs if the sale is sourced
94 46 to this state. The application of whether Iowa sales
94 47 tax applies to sales sourced to Iowa depends upon
94 48 where the sale is consummated by delivery.
94 49 1. Sales, excluding leases or rentals other than
94 50 leases or rentals set out in subsection 2, of products
95 1 shall be sourced as follows.
95 2 a. When the product is received by the purchaser
95 3 at a business location of the seller, the sale is
95 4 sourced to that business location.
95 5 b. When the product is not received by the
95 6 purchaser at a business location of the seller, the
95 7 sale is sourced to the location where receipt by the
95 8 purchaser or the purchaser's donee, designated as such
95 9 by the purchaser, occurs, including the location
95 10 indicated by instructions for delivery to the
95 11 purchaser or donee, known to the seller.
95 12 c. When paragraphs "a" and "b" do not apply, the
95 13 sale is sourced to the location indicated by an
95 14 address for the purchaser that is available from the
95 15 business records of the seller that are maintained in
95 16 the ordinary course of the seller's business when use
95 17 of this address does not constitute bad faith.
95 18 d. When paragraphs "a", "b", and "c" do not apply,
95 19 the sale is sourced to the location indicated by an
95 20 address for the purchaser obtained during the
95 21 consummation of the sale, including the address of a
95 22 purchaser's payment instrument, if no other address is
95 23 available, when use of this address does not
95 24 constitute bad faith.
95 25 e. When paragraphs "a", "b", "c", and "d" do not
95 26 apply, including the circumstance where the seller is
95 27 without sufficient information to apply the previous
95 28 rules, then the location will be determined by the
95 29 address from which tangible personal property was
95 30 shipped, from which the digital good or the computer
95 31 software delivered electronically was first available
95 32 for transmission by the seller, or from which the
95 33 service was provided disregarding for these purposes
95 34 any location that merely provided the digital transfer
95 35 of the product sold.
95 36 2. The lease or rental of tangible personal
95 37 property, other than property identified in subsection
95 38 3 or section 423.16, shall be sourced as follows:
95 39 a. For a lease or rental that requires recurring
95 40 periodic payments, the first periodic payment is
95 41 sourced the same as a retail sale in accordance with
95 42 the provisions of subsection 1. Periodic payments
95 43 made subsequent to the first payment are sourced to
95 44 the primary property location for each period covered
95 45 by the payment. The primary property location shall
95 46 be as indicated by an address for the property
95 47 provided by the lessee that is available to the lessor
95 48 from its records maintained in the ordinary course of
95 49 business, when use of this address does not constitute
95 50 bad faith. The property location shall not be altered
96 1 by intermittent use at different locations, such as
96 2 use of business property that accompanies employees on
96 3 business trips and service calls.
96 4 b. For a lease or rental that does not require
96 5 recurring periodic payments, the payment is sourced
96 6 the same as a retail sale in accordance with the
96 7 provisions of subsection 1.
96 8 c. This subsection does not affect the imposition
96 9 or computation of sales or use tax on leases or
96 10 rentals based on a lump sum or accelerated basis, or
96 11 on the acquisition of property for lease.
96 12 3. The retail sale, including lease or rental, of
96 13 transportation equipment shall be sourced the same as
96 14 a retail sale in accordance with the provisions of
96 15 subsection 1, notwithstanding the exclusion of lease
96 16 or rental in that subsection. "Transportation
96 17 equipment" means any of the following:
96 18 a. Locomotives or railcars that are utilized for
96 19 the carriage of persons or property in interstate
96 20 commerce.
96 21 b. Trucks and truck=tractors with a gross vehicle
96 22 weight rating of ten thousand one pounds or greater,
96 23 trailers, semitrailers, or passenger buses that meet
96 24 both of the following requirements:
96 25 (1) Are registered through the international
96 26 registration plan.
96 27 (2) Are operated under authority of a carrier
96 28 authorized and certificated by the United States
96 29 department of transportation or another federal
96 30 authority to engage in the carriage of persons or
96 31 property in interstate commerce.
96 32 c. Aircraft that are operated by air carriers
96 33 authorized and certificated by the United States
96 34 department of transportation or another federal or a
96 35 foreign authority to engage in the carriage of persons
96 36 or property in interstate or foreign commerce.
96 37 d. Containers designed for use on and component
96 38 parts attached or secured on the items set forth in
96 39 paragraphs "a" through "c".
96 40 Sec. 118. NEW SECTION. 423.16 TRANSACTIONS TO
96 41 WHICH THE GENERAL SOURCING RULES DO NOT APPLY.
96 42 Section 423.15 does not apply to sales or use taxes
96 43 levied on the following:
96 44 1. The retail sale or transfer of watercraft,
96 45 modular homes, manufactured housing, or mobile homes,
96 46 and the retail sale, excluding lease or rental, of
96 47 motor vehicles, trailers, semitrailers, or aircraft
96 48 that do not qualify as transportation equipment, as
96 49 defined in section 423.15, subsection 3.
96 50 2. The lease or rental of motor vehicles,
97 1 trailers, semitrailers, or aircraft that do not
97 2 qualify as transportation equipment, as defined in
97 3 section 423.15, subsection 3, which shall be sourced
97 4 in accordance with section 423.17.
97 5 3. Transactions to which the multiple points use
97 6 exemption is applicable, which shall be sourced in
97 7 accordance with section 423.18.
97 8 4. Transactions to which direct mail sourcing is
97 9 applicable, which shall be sourced in accordance with
97 10 section 423.19.
97 11 5. Telecommunications services, as set out in
97 12 section 423.20, which shall be sourced in accordance
97 13 with section 423.20, subsection 2.
97 14 Sec. 119. NEW SECTION. 423.17 SOURCING RULES FOR
97 15 VARIOUS TYPES OF LEASED OR RENTED EQUIPMENT WHICH IS
97 16 NOT TRANSPORTATION EQUIPMENT.
97 17 The lease or rental of motor vehicles, trailers,
97 18 semitrailers, or aircraft that do not qualify as
97 19 transportation equipment, as defined in section
97 20 423.15, subsection 3, shall be sourced as follows:
97 21 1. For a lease or rental that requires recurring
97 22 periodic payments, each periodic payment is sourced to
97 23 the primary property location. The primary property
97 24 location shall be as indicated by an address for the
97 25 property provided by the lessee that is available to
97 26 the lessor from its records maintained in the ordinary
97 27 course of business, when use of this address does not
97 28 constitute bad faith. This location shall not be
97 29 altered by intermittent use at different locations.
97 30 2. For a lease or rental that does not require
97 31 recurring periodic payments, the payment is sourced
97 32 the same as a retail sale in accordance with the
97 33 provisions of section 423.15, subsection 1.
97 34 3. This section does not affect the imposition or
97 35 computation of sales or use tax on leases or rentals
97 36 based on a lump sum or accelerated basis, or on the
97 37 acquisition of property for lease.
97 38 Sec. 120. NEW SECTION. 423.18 MULTIPLE POINTS OF
97 39 USE EXEMPTION FORMS.
97 40 A business purchaser that is not a holder of a
97 41 direct pay tax permit pursuant to section 423.36 that
97 42 knows at the time of its purchase of a digital good,
97 43 computer software delivered electronically, or a
97 44 service that the digital good, computer software
97 45 delivered electronically, or service will be
97 46 concurrently available for use in more than one
97 47 jurisdiction shall deliver to the seller in
97 48 conjunction with its purchase a "multiple points of
97 49 use" or "MPU" exemption form disclosing this fact.
97 50 1. Upon receipt of the MPU exemption form, the
98 1 seller is relieved of all obligation to collect, pay,
98 2 or remit the applicable tax and the purchaser shall be
98 3 obligated to collect, pay, or remit the applicable tax
98 4 on a direct pay basis.
98 5 2. A purchaser delivering the MPU exemption form
98 6 may use any reasonable, but consistent and uniform,
98 7 method of apportionment that is supported by the
98 8 purchaser's business records as they exist at the time
98 9 of the consummation of the sale.
98 10 3. The MPU exemption form will remain in effect
98 11 for all future sales by the seller to the purchaser
98 12 except as to the subsequent sale's specific
98 13 apportionment that is governed by the principle of
98 14 subsection 2 and the facts existing at the time of the
98 15 sale until it is revoked in writing.
98 16 4. A holder of a direct pay tax permit under
98 17 section 423.36 shall not be required to deliver an MPU
98 18 exemption form to the seller. A direct pay tax permit
98 19 holder shall follow the provisions of subsection 2 in
98 20 apportioning the tax due on a digital good, computer
98 21 software delivered electronically, or service that
98 22 will be concurrently available for use in more than
98 23 one jurisdiction.
98 24 Sec. 121. NEW SECTION. 423.19 DIRECT MAIL
98 25 SOURCING.
98 26 1. Notwithstanding section 423.15, a purchaser of
98 27 direct mail that is not a holder of a direct pay tax
98 28 permit pursuant to section 423.36 shall provide to the
98 29 seller in conjunction with the purchase either a
98 30 direct mail form or information to show the
98 31 jurisdictions to which the direct mail is delivered to
98 32 recipients.
98 33 a. Upon receipt of the direct mail form, the
98 34 seller is relieved of all obligations to collect, pay,
98 35 or remit the applicable tax and the purchaser is
98 36 obligated to pay or remit the applicable tax on a
98 37 direct pay basis. A direct mail form shall remain in
98 38 effect for all future sales of direct mail by the
98 39 seller to the purchaser until it is revoked in
98 40 writing.
98 41 b. Upon receipt of information from the purchaser
98 42 showing the jurisdictions to which the direct mail is
98 43 delivered to recipients, the seller shall collect the
98 44 tax according to the delivery information provided by
98 45 the purchaser. In the absence of bad faith, the
98 46 seller is relieved of any further obligation to
98 47 collect tax on any transaction where the seller has
98 48 collected tax pursuant to the delivery information
98 49 provided by the purchaser.
98 50 2. If the purchaser of direct mail does not have a
99 1 direct pay tax permit and does not provide the seller
99 2 with either a direct mail form or delivery
99 3 information, as required by subsection 1, the seller
99 4 shall collect the tax according to section 423.15,
99 5 subsection 1, paragraph "e". Nothing in this
99 6 subsection shall limit a purchaser's obligation for
99 7 sales or use tax to any state to which the direct mail
99 8 is delivered.
99 9 3. If a purchaser of direct mail provides the
99 10 seller with documentation of direct pay authority, the
99 11 purchaser shall not be required to provide a direct
99 12 mail form or delivery information to the seller.
99 13 Sec. 122. NEW SECTION. 423.20 TELECOMMUNICATIONS
99 14 SERVICE SOURCING.
99 15 1. As used in this section:
99 16 a. "Air=to=ground radiotelephone service" means a
99 17 radio service, as that term is used in 47 C.F.R. }
99 18 22.99, in which common carriers are authorized to
99 19 offer and provide radio telecommunications service for
99 20 hire to subscribers in aircraft.
99 21 b. "Call=by=call basis" means any method of
99 22 charging for the telecommunications service where the
99 23 price is measured by individual calls.
99 24 c. "Communications channel" means a physical or
99 25 virtual path of communications over which signals are
99 26 transmitted between or among customer channel
99 27 termination points.
99 28 d. "Customer" means the person or entity that
99 29 contracts with the seller of the telecommunications
99 30 service. If the end user of the telecommunications
99 31 service is not the contracting party, the end user of
99 32 the telecommunications service is the customer of the
99 33 telecommunications service, but this sentence only
99 34 applies for the purpose of sourcing sales of the
99 35 telecommunications service under this section.
99 36 "Customer" does not include a reseller of a
99 37 telecommunications service or for mobile
99 38 telecommunications service of a serving carrier under
99 39 an agreement to serve the customer outside the home
99 40 service provider's licensed service area.
99 41 e. "Customer channel termination point" means the
99 42 location where the customer either inputs or receives
99 43 the communications.
99 44 f. "End user" means the person who utilizes the
99 45 telecommunications service. In the case of an entity,
99 46 "end user" means the individual who utilizes the
99 47 service on behalf of the entity.
99 48 g. "Home service provider" means the same as that
99 49 term is defined in the federal Mobile
99 50 Telecommunications Sourcing Act, Pub. L. No. 106=252,
100 1 4 U.S.C. } 124(5).
100 2 h. "Mobile telecommunications service" means the
100 3 same as that term is defined in federal Mobile
100 4 Telecommunications Sourcing Act, Pub. L. No. 106=252,
100 5 4 U.S.C. } 124(7).
100 6 i. "Place of primary use" means the street address
100 7 representative of where the customer's use of the
100 8 telecommunications service primarily occurs, which
100 9 must be the residential street address or the primary
100 10 business street address of the customer. In the case
100 11 of mobile telecommunications service, "place of
100 12 primary use" must be within the licensed service area
100 13 of the home service provider.
100 14 j. "Postpaid calling service" means the
100 15 telecommunications service obtained by making a
100 16 payment on a call=by=call basis either through the use
100 17 of a credit card or payment mechanism such as a bank
100 18 card, travel card, credit card, or debit card, or by
100 19 charge made to a telephone number which is not
100 20 associated with the origination or termination of the
100 21 telecommunications service. A "postpaid calling
100 22 service" includes a telecommunications service that
100 23 would be a prepaid calling service except it is not
100 24 exclusively a telecommunications service.
100 25 k. "Prepaid calling service" means the right to
100 26 access exclusively telecommunications services, which
100 27 must be paid for in advance and which enables the
100 28 origination of calls using an access number or
100 29 authorization code, whether manually or electronically
100 30 dialed, and that is sold in predetermined units or
100 31 dollars of which the amount declines with use in a
100 32 known amount.
100 33 l. "Private communication service" means a
100 34 telecommunications service that entitles the customer
100 35 to exclusive or priority use of a communications
100 36 channel or group of channels between or among
100 37 termination points, regardless of the manner in which
100 38 such channel or channels are connected, and includes
100 39 switching capacity, extension lines, stations, and any
100 40 other associated services that are provided in
100 41 connection with the use of such channel or channels.
100 42 m. "Service address" means one of the following:
100 43 (1) The location of the telecommunications
100 44 equipment to which a customer's call is charged and
100 45 from which the call originates or terminates,
100 46 regardless of where the call is billed or paid.
100 47 (2) If the location in subparagraph (1) is not
100 48 known, "service address" means the origination point
100 49 of the signal of the telecommunications service first
100 50 identified by either the seller's telecommunications
101 1 system or in information received by the seller from
101 2 its service provider, where the system used to
101 3 transport such signals is not that of the seller.
101 4 (3) If the locations in subparagraphs (1) and (2)
101 5 are not known, the "service address" means the
101 6 location of the customer's place of primary use.
101 7 2. Sales of telecommunications services shall be
101 8 sourced in the following manner:
101 9 a. Except for the defined telecommunications
101 10 services in paragraph "c", the sale of
101 11 telecommunications services sold on a call=by=call
101 12 basis shall be sourced to one of the following:
101 13 (1) Each level of taxing jurisdiction where the
101 14 call originates and terminates in that jurisdiction.
101 15 (2) Each level of taxing jurisdiction where the
101 16 call either originates or terminates and in which the
101 17 service address is also located.
101 18 b. Except for the defined telecommunications
101 19 services in paragraph "c", a sale of
101 20 telecommunications services sold on a basis other than
101 21 a call=by=call basis is sourced to the customer's
101 22 place of primary use.
101 23 c. Sale of the following telecommunications
101 24 services shall be sourced to each level of taxing
101 25 jurisdiction as follows:
101 26 (1) A sale of mobile telecommunications services
101 27 other than air=to=ground radiotelephone service or
101 28 prepaid calling service is sourced to the customer's
101 29 place of primary use as required by the federal Mobile
101 30 Telecommunications Sourcing Act.
101 31 (2) A sale of postpaid calling service is sourced
101 32 to the origination point of the telecommunications
101 33 signal as first identified by either of the following:
101 34 (a) The seller's telecommunications system.
101 35 (b) Information received by the seller from its
101 36 service provider, where the system used to transport
101 37 such signals is not that of the seller.
101 38 (3) A sale of prepaid calling service is sourced
101 39 in accordance with section 423.15. However, in the
101 40 case of a sale of mobile telecommunications services
101 41 that is a prepaid telecommunications service, the rule
101 42 provided in section 423.15, subsection 1, paragraph
101 43 "e", shall include as an option the location
101 44 associated with the mobile telephone number.
101 45 (4) A sale of a private telecommunications service
101 46 is sourced as follows:
101 47 (a) Service for a separate charge related to a
101 48 customer channel termination point is sourced to each
101 49 level of jurisdiction in which such customer channel
101 50 termination point is located.
102 1 (b) Service where all customer termination points
102 2 are located entirely within one jurisdiction or level
102 3 of jurisdiction is sourced in such jurisdiction in
102 4 which the customer channel termination points are
102 5 located.
102 6 (c) Service for segments of a channel between two
102 7 customer channel termination points located in
102 8 different jurisdictions and which segments of a
102 9 channel are separately charged is sourced fifty
102 10 percent in each level of jurisdiction in which the
102 11 customer channel termination points are located.
102 12 (d) Service for segments of a channel located in
102 13 more than one jurisdiction or levels of jurisdiction
102 14 and which segments are not separately billed is
102 15 sourced in each jurisdiction based on the percentage
102 16 determined by dividing the number of customer channel
102 17 termination points in such jurisdiction by the total
102 18 number of customer channel termination points.
102 19 Sec. 123. NEW SECTION. 423.21 BAD DEBT
102 20 DEDUCTIONS.
102 21 1. For the purposes of this section, "bad debt"
102 22 means an amount properly calculated pursuant to
102 23 section 166 of the Internal Revenue Code then adjusted
102 24 to exclude financing charges or interest, sales or use
102 25 taxes charged on the purchase price, uncollectible
102 26 amounts on property that remain in the possession of
102 27 the seller until the full purchase price is paid,
102 28 expenses incurred in attempting to collect any debt,
102 29 and repossessed property.
102 30 2. In computing the amount of tax due, a seller
102 31 may deduct bad debts from the total amount upon which
102 32 the tax is calculated for any return. Any deduction
102 33 taken or refund paid which is attributed to bad debts
102 34 shall not include interest.
102 35 3. A seller may deduct bad debts on the return for
102 36 the period during which the bad debt is written off as
102 37 uncollectible in the seller's books and records and is
102 38 eligible to be deducted for federal income tax
102 39 purposes. For purposes of this subsection, a seller
102 40 who is not required to file federal income tax returns
102 41 may deduct a bad debt on a return filed for the period
102 42 in which the bad debt is written off as uncollectible
102 43 in the seller's books and records and would be
102 44 eligible for a bad debt deduction for federal income
102 45 tax purposes if the seller were required to file a
102 46 federal income tax return.
102 47 4. If a deduction is taken for a bad debt and the
102 48 seller subsequently collects the debt in whole or in
102 49 part, the tax on the amount so collected must be paid
102 50 and reported on the return filed for the period in
103 1 which the collection is made.
103 2 5. A seller may obtain a refund of tax on any
103 3 amount of bad debt that exceeds the amount of taxable
103 4 sales within the period allowed for refund claims by
103 5 section 423.47. However, the period allowed for
103 6 refund claims shall be measured from the due date of
103 7 the return on which the bad debt could first be
103 8 claimed.
103 9 6. For the purposes of computing a bad debt
103 10 deduction or reporting a payment received on a
103 11 previously claimed bad debt, any payments made on a
103 12 debt or account shall be applied first to the price of
103 13 the property or service and tax thereon,
103 14 proportionally, and secondly to interest, service
103 15 charges, and any other charges.
103 16 Sec. 124. NEW SECTION. 423.22 TAXATION IN
103 17 ANOTHER STATE.
103 18 If any person who causes tangible personal property
103 19 to be brought into this state or who uses in this
103 20 state services enumerated in section 423.2 has already
103 21 paid a tax in another state in respect to the sale or
103 22 use of the property or the performance of the service,
103 23 or an occupation tax in respect to the property or
103 24 service, in an amount less than the tax imposed by
103 25 subchapter II or III, the provisions of those
103 26 subchapters shall apply, but at a rate measured by the
103 27 difference only between the rate fixed by subchapter
103 28 II or III and the rate by which the previous tax on
103 29 the sale or use, or the occupation tax, was computed.
103 30 If the tax imposed and paid in the other state is
103 31 equal to or more than the tax imposed by those
103 32 subchapters, then a tax is not due in this state on
103 33 the personal property or service.
103 34 Sec. 125. NEW SECTION. 423.23 SELLERS'
103 35 AGREEMENTS.
103 36 Agreements between competing sellers, or the
103 37 adoption of appropriate rules and regulations by
103 38 organizations or associations of sellers to provide
103 39 uniform methods for adding sales or use tax or the
103 40 average equivalent thereof, and which do not involve
103 41 price=fixing agreements otherwise unlawful, are
103 42 expressly authorized and shall be held not in
103 43 violation of chapter 553 or other antitrust laws of
103 44 this state. The director shall cooperate with
103 45 sellers, organizations, or associations in formulating
103 46 agreements and rules.
103 47 Sec. 126. NEW SECTION. 423.24 ABSORBING TAX
103 48 PROHIBITED.
103 49 A seller shall not advertise or hold out or state
103 50 to the public or to any purchaser, consumer, or user,
104 1 directly or indirectly, that the taxes or any parts
104 2 thereof imposed by subchapter II or III will be
104 3 assumed or absorbed by the seller or the taxes will
104 4 not be added to the sales price of the property sold,
104 5 or if added that the taxes or any part thereof will be
104 6 refunded. Any person violating any of the provisions
104 7 of this section within this state is guilty of a
104 8 simple misdemeanor.
104 9 Sec. 127. NEW SECTION. 423.25 DIRECTOR'S POWER
104 10 TO ADOPT RULES.
104 11 The director shall have the power to adopt rules
104 12 for adding the taxes imposed by subchapters II and
104 13 III, or the average equivalents thereof, by providing
104 14 different methods applying uniformly to retailers
104 15 within the same general classification for the purpose
104 16 of enabling the retailers to add and collect, as far
104 17 as practicable, the amounts of those taxes.
104 18 Sec. 128. NEW SECTION. 423.26 VEHICLES SUBJECT
104 19 TO REGISTRATION OR ONLY TO THE ISSUANCE OF TITLE ==
104 20 MANUFACTURED HOUSING.
104 21 The use tax imposed upon the use of vehicles
104 22 subject to registration or subject only to the
104 23 issuance of a certificate of title or imposed upon the
104 24 use of manufactured housing shall be paid by the owner
104 25 of the vehicle or of the manufactured housing to the
104 26 county treasurer or the state department of
104 27 transportation from whom the registration receipt or
104 28 certificate of title is obtained. A registration
104 29 receipt for a vehicle subject to registration or
104 30 certificate of title shall not be issued until the tax
104 31 has been paid. The county treasurer or the state
104 32 department of transportation shall require every
104 33 applicant for a registration receipt for a vehicle
104 34 subject to registration or certificate of title to
104 35 supply information as the county treasurer or the
104 36 director deems necessary as to the time of purchase,
104 37 the purchase price, installed purchase price, and
104 38 other information relative to the purchase of the
104 39 vehicle or manufactured housing. On or before the
104 40 tenth day of each month, the county treasurer or the
104 41 state department of transportation shall remit to the
104 42 department the amount of the taxes collected during
104 43 the preceding month.
104 44 A person who willfully makes a false statement in
104 45 regard to the purchase price of a vehicle subject to
104 46 taxation under this section is guilty of a fraudulent
104 47 practice. A person who willfully makes a false
104 48 statement in regard to the purchase price of such a
104 49 vehicle with the intent to evade the payment of tax
104 50 shall be assessed a penalty of seventy=five percent of
105 1 the amount of tax unpaid and required to be paid on
105 2 the actual purchase price less trade=in allowance.
105 3 Sec. 129. NEW SECTION. 423.27 MOTOR VEHICLE
105 4 LEASE TAX.
105 5 1. The use tax imposed upon the use of leased
105 6 vehicles subject to registration under chapter 321,
105 7 with gross vehicle weight ratings of less than sixteen
105 8 thousand pounds, excluding motorcycles and motorized
105 9 bicycles, which are leased by a lessor licensed
105 10 pursuant to chapter 321F for a period of twelve months
105 11 or more shall be paid by the owner of the vehicle to
105 12 the county treasurer or state department of
105 13 transportation from whom the registration receipt or
105 14 certificate of title is obtained. A registration
105 15 receipt for a vehicle subject to registration or
105 16 issuance of a certificate of title shall not be issued
105 17 until the tax is paid in the initial instance. Tax on
105 18 the lease transaction that does not require titling or
105 19 registration of the vehicle shall be remitted to the
105 20 department. Tax and the reporting of tax due to the
105 21 department shall be remitted on or before fifteen days
105 22 from the last day of the month that the vehicle lease
105 23 tax becomes due. Failure to timely report or remit
105 24 any of the tax when due shall result in a penalty and
105 25 interest being imposed on the tax due pursuant to
105 26 section 423.40, subsection 1, and section 423.42,
105 27 subsection 1.
105 28 2. The amount subject to tax shall be computed on
105 29 each separate lease transaction by taking the total of
105 30 the lease payments, plus the down payment, and
105 31 excluding all of the following:
105 32 a. Title fee.
105 33 b. Registration fees.
105 34 c. Vehicle lease tax pursuant to this section.
105 35 d. Federal excise taxes attributable to the sale
105 36 of the vehicle to the owner or to the lease of the
105 37 vehicle by the owner.
105 38 e. Optional service or warranty contracts subject
105 39 to tax pursuant to section 423.2, subsection 1.
105 40 f. Insurance.
105 41 g. Manufacturer's rebate.
105 42 h. Refundable deposit.
105 43 i. Finance charges, if any, on items listed in
105 44 paragraphs "a" through "h".
105 45 If any or all of the items in paragraphs "a"
105 46 through "i" are excluded from the taxable lease price,
105 47 the owner shall maintain adequate records of the
105 48 amounts of those items. If the parties to a lease
105 49 enter into an agreement providing that the tax imposed
105 50 under this statute is to be paid by the lessee or
106 1 included in the monthly lease payments to be paid by
106 2 the lessee, the total cost of the tax shall not be
106 3 included in the computation of lease price for the
106 4 purpose of taxation under this section. The county
106 5 treasurer, the state department of transportation, or
106 6 the department of revenue and finance shall require
106 7 every applicant for a registration receipt for a
106 8 vehicle subject to tax under this section to supply
106 9 information as the county treasurer or director deems
106 10 necessary as to the date of the lease transaction, the
106 11 lease price, and other information relative to the
106 12 lease of the vehicle.
106 13 3. On or before the tenth day of each month, the
106 14 county treasurer or the state department of
106 15 transportation shall remit to the department the
106 16 amount of the taxes collected during the preceding
106 17 month.
106 18 4. If the lease is terminated prior to the
106 19 termination date contained in the lease agreement, no
106 20 refund shall be allowed for tax previously paid under
106 21 this section, except as provided in section 322G.4.
106 22 Sec. 130. NEW SECTION. 423.28 SALES TAX REPORT
106 23 == DEDUCTION.
106 24 Motor vehicle or trailer dealers, in making their
106 25 reports and returns to the department for the purpose
106 26 of paying the sales tax, shall be permitted to deduct
106 27 all sales prices from retail sales of vehicles subject
106 28 to registration or subject only to the issuance of a
106 29 certificate of title. Sales prices from sales of
106 30 vehicles subject to registration or subject only to
106 31 the issuance of a certificate of title are exempted
106 32 from the sales tax, but, if required by the director,
106 33 the sales prices shall be included in the returns made
106 34 by motor vehicle or trailer dealers under subchapter
106 35 II, and proper deductions taken pursuant to this
106 36 section.
106 37 Sec. 131. NEW SECTION. 423.29 COLLECTIONS BY
106 38 SELLERS.
106 39 Every seller who is a retailer and who is making
106 40 taxable sales of tangible personal property in Iowa
106 41 shall, at the time of selling the property, collect
106 42 the sales tax. Every seller who is a retailer
106 43 maintaining a place of business in this state and
106 44 selling tangible personal property for use in Iowa
106 45 shall, at the time of making the sale, whether within
106 46 or without the state, collect the use tax. Sellers
106 47 required to collect sales or use tax shall give to any
106 48 purchaser a receipt for the tax collected in the
106 49 manner and form prescribed by the director.
106 50 Every seller who is a retailer furnishing taxable
107 1 services in Iowa and every seller who is a retailer
107 2 maintaining a place of business in this state and
107 3 furnishing taxable services in Iowa or services
107 4 outside Iowa if the product or result of the service
107 5 is used in Iowa shall be subject to the provisions of
107 6 the preceding paragraph.
107 7 Sec. 132. NEW SECTION. 423.30 FOREIGN SELLERS
107 8 NOT REGISTERED UNDER THE AGREEMENT.
107 9 The director may, upon application, authorize the
107 10 collection of the use tax by any seller who is a
107 11 retailer not maintaining a place of business within
107 12 this state and not registered under the agreement,
107 13 who, to the satisfaction of the director, furnishes
107 14 adequate security to ensure collection and payment of
107 15 the tax. Such sellers shall be issued, without
107 16 charge, permits to collect tax subject to any
107 17 regulations which the director shall prescribe. When
107 18 so authorized, it shall be the duty of foreign sellers
107 19 to collect the tax upon all tangible personal property
107 20 sold, to the retailer's knowledge, for use within this
107 21 state, in the same manner and subject to the same
107 22 requirements as a retailer maintaining a place of
107 23 business within this state. The authority and permit
107 24 may be canceled when, at any time, the director
107 25 considers the security inadequate, or that tax can
107 26 more effectively be collected from the person using
107 27 property in this state.
107 28 The discretionary power granted in this section is
107 29 extended to apply in the case of foreign retailers
107 30 furnishing services enumerated in section 423.2.
107 31 Sec. 133. NEW SECTION. 423.31 FILING OF SALES
107 32 TAX RETURNS AND PAYMENT OF SALES TAX.
107 33 1. Each person subject to this section and section
107 34 423.36 and in accordance with the provisions of this
107 35 section and section 423.36 shall, on or before the
107 36 last day of the month following the close of each
107 37 calendar quarter during which such person is or has
107 38 become or ceased being subject to the provisions of
107 39 this section and section 423.36, make, sign, and file
107 40 a return for the calendar quarter in the form as may
107 41 be required. Returns shall show information relating
107 42 to sales prices including goods, wares, and services
107 43 converted to the use of such person, the amounts of
107 44 sales prices excluded and exempt from the tax, the
107 45 amounts of sales prices subject to tax, a calculation
107 46 of tax due, and any other information for the period
107 47 covered by the return as may be required. Returns
107 48 shall be signed by the retailer or the retailer's
107 49 authorized agent and must be certified by the retailer
107 50 to be correct in accordance with forms and rules
108 1 prescribed by the director.
108 2 2. Persons required to file, or committed to file
108 3 by reason of voluntary action or by order of the
108 4 department, deposits of taxes due under this
108 5 subchapter shall be entitled to take credit against
108 6 the total quarterly amount of tax due such amount as
108 7 shall have been deposited by such persons during that
108 8 calendar quarter. The balance remaining due after
108 9 such credit for deposits shall be entered on the
108 10 return. However, such person may be granted an
108 11 extension of time not exceeding thirty days for filing
108 12 the quarterly return, upon a proper showing of
108 13 necessity. If an extension is granted, such person
108 14 shall have paid by the twentieth day of the month
108 15 following the close of such quarter ninety percent of
108 16 the estimated tax due.
108 17 3. The sales tax forms prescribed by the director
108 18 shall be referred to as "retailers tax deposit".
108 19 Deposit forms shall be signed by the retailer or the
108 20 retailer's duly authorized agent, and shall be duly
108 21 certified by the retailer or agent to be correct. The
108 22 director may authorize incorporated banks and trust
108 23 companies or other depositories authorized by law
108 24 which are depositories or financial agents of the
108 25 United States, or of this state, to receive any sales
108 26 tax imposed under this chapter, in the manner, at the
108 27 times, and under the conditions the director
108 28 prescribes. The director shall prescribe the manner,
108 29 times, and conditions under which the receipt of the
108 30 tax by those depositories is to be treated as payment
108 31 of the tax to the department.
108 32 4. Every retailer at the time of making any return
108 33 required by this section shall compute and pay to the
108 34 department the tax due for the preceding period. The
108 35 tax on sales prices from the sale or rental of
108 36 tangible personal property under a consumer rental
108 37 purchase agreement as defined in section 537.3604,
108 38 subsection 8, is payable in the tax period of receipt.
108 39 5. Upon making application and receiving approval
108 40 from the director, a parent corporation and its
108 41 affiliated corporations that make retail sales of
108 42 tangible personal property or taxable enumerated
108 43 services may make deposits and file a consolidated
108 44 sales tax return for the affiliated group, pursuant to
108 45 rules adopted by the director. A parent corporation
108 46 and each affiliate corporation that files a
108 47 consolidated return are jointly and severally liable
108 48 for all tax, penalty, and interest found due for the
108 49 tax period for which a consolidated return is filed or
108 50 required to be filed.
109 1 A business required to file a consolidated sales
109 2 tax return shall file a form entitled "schedule of
109 3 consolidated business locations" with its quarterly
109 4 sales tax return that shows the taxpayer's
109 5 consolidated permit number, the permit number for each
109 6 Iowa business location, the state sales tax amount by
109 7 business location, and the amount of state sales tax
109 8 due on goods consumed that are not assigned to a
109 9 specific business location. Consolidated quarterly
109 10 sales tax returns that are not accompanied by the
109 11 schedule of consolidated business locations form are
109 12 considered incomplete and are subject to penalty under
109 13 section 421.27.
109 14 6. If necessary or advisable in order to insure
109 15 the payment of the tax, the director may require
109 16 returns and payment of the tax to be made for other
109 17 than quarterly periods, the provisions of this
109 18 section, or other provision to the contrary
109 19 notwithstanding.
109 20 Sec. 134. NEW SECTION. 423.32 FILING OF USE TAX
109 21 RETURNS AND PAYMENT OF USE TAX.
109 22 1. A retailer maintaining a place of business in
109 23 this state who is required to collect or a user who is
109 24 required to pay the use tax or a foreign retailer
109 25 authorized, pursuant to section 423.30, to collect the
109 26 use tax, shall remit to the department the amount of
109 27 tax on or before the last day of the month following
109 28 each calendar quarterly period. However, a retailer
109 29 who collects or owes more than fifteen hundred dollars
109 30 in use taxes in a month shall deposit with the
109 31 department or in a depository authorized by law and
109 32 designated by the director, the amount collected or
109 33 owed, with a deposit form for the month as prescribed
109 34 by the director.
109 35 a. The deposit form is due on or before the
109 36 twentieth day of the month following the month of
109 37 collection, except a deposit is not required for the
109 38 third month of the calendar quarter, and the total
109 39 quarterly amount, less the amounts deposited for the
109 40 first two months of the quarter, is due with the
109 41 quarterly report on the last day of the month
109 42 following the month of collection. At that time, the
109 43 retailer shall file with the department a return for
109 44 the preceding quarterly period in the form prescribed
109 45 by the director showing the purchase price of the
109 46 tangible personal property sold by the retailer during
109 47 the preceding quarterly period, the use of which is
109 48 subject to the use tax imposed by this chapter, and
109 49 other information the director deems necessary for the
109 50 proper administration of the use tax.
110 1 b. The return shall be accompanied by a remittance
110 2 of the use tax for the period covered by the return.
110 3 If necessary in order to ensure payment to the state
110 4 of the tax, the director may in any or all cases
110 5 require returns and payments to be made for other than
110 6 quarterly periods. The director, upon request and a
110 7 proper showing of necessity, may grant an extension of
110 8 time not to exceed thirty days for making any return
110 9 and payment. Returns shall be signed, in accordance
110 10 with forms and rules prescribed by the director, by
110 11 the retailer or the retailer's authorized agent, and
110 12 shall be certified by the retailer or agent to be
110 13 correct.
110 14 2. If it is reasonably expected, as determined by
110 15 rules prescribed by the director, that a retailer's
110 16 annual sales or use tax liability will not exceed one
110 17 hundred twenty dollars for a calendar year, the
110 18 retailer may request and the director may grant
110 19 permission to the retailer, in lieu of the quarterly
110 20 filing and remitting requirements set out elsewhere in
110 21 this section, to file the return required by and remit
110 22 the sales or use tax due under this section on a
110 23 calendar=year basis. The return and tax are due and
110 24 payable no later than January 31 following each
110 25 calendar year in which the retailer carries on
110 26 business.
110 27 3. The director, in cooperation with the
110 28 department of management, may periodically change the
110 29 filing and remittance thresholds by administrative
110 30 rule if in the best interests of the state and
110 31 taxpayer to do so.
110 32 Sec. 135. NEW SECTION. 423.33 LIABILITY OF
110 33 PERSONS OTHER THAN RETAILERS FOR PAYMENT OF SALES OR
110 34 USE TAX.
110 35 1. LIABILITY OF PURCHASER FOR SALES TAX. If a
110 36 purchaser fails to pay sales tax to the retailer
110 37 required to collect the tax, then in addition to all
110 38 of the rights, obligations, and remedies provided, the
110 39 tax is payable by the purchaser directly to the
110 40 department, and sections 423.31, 423.32, 423.37,
110 41 423.38, 423.39, 423.40, 423.41, and 423.42 apply to
110 42 the purchaser. For failure to pay, the retailer and
110 43 purchaser are liable, unless the circumstances
110 44 described in section 421.60, subsection 2, paragraph
110 45 "m", or section 423.45, subsection 4, paragraph "b" or
110 46 "e", or subsection 5, paragraph "c" or "e", are
110 47 applicable.
110 48 2. IMMEDIATE SUCCESSOR LIABILITY FOR SALES OR USE
110 49 TAX. If a retailer sells the retailer's business or
110 50 stock of goods or quits the business, the retailer
111 1 shall prepare a final return and pay all sales or use
111 2 tax due within the time required by law. The
111 3 immediate successor to the retailer, if any, shall
111 4 withhold a sufficient portion of the purchase price,
111 5 in money or money's worth, to pay the amount of
111 6 delinquent tax, interest, or penalty due and unpaid.
111 7 If the immediate successor of the business or stock of
111 8 goods intentionally fails to withhold the amount due
111 9 from the purchase price as provided in this
111 10 subsection, the immediate successor is personally
111 11 liable for the payment of delinquent taxes, interest,
111 12 and penalty accrued and unpaid on account of the
111 13 operation of the business by the immediate former
111 14 retailer, except when the purchase is made in good
111 15 faith as provided in section 421.28. However, a
111 16 person foreclosing on a valid security interest or
111 17 retaking possession of premises under a valid lease is
111 18 not an "immediate successor" for purposes of this
111 19 section. The department may waive the liability of
111 20 the immediate successor under this subsection if the
111 21 immediate successor exercised good faith in
111 22 establishing the amount of the previous liability.
111 23 3. EVENT SPONSOR'S LIABILITY FOR SALES TAX. A
111 24 person sponsoring a flea market or a craft, antique,
111 25 coin, or stamp show or similar event shall obtain from
111 26 every retailer selling tangible personal property or
111 27 taxable services at the event proof that the retailer
111 28 possesses a valid sales tax permit or secure from the
111 29 retailer a statement, taken in good faith, that
111 30 property or services offered for sale are not subject
111 31 to sales tax. Failure to do so renders a sponsor of
111 32 the event liable for payment of any sales tax,
111 33 interest, and penalty due and owing from any retailer
111 34 selling property or services at the event. Sections
111 35 423.31, 423.32, 423.37, 423.38, 423.39, 423.40,
111 36 423.41, and 423.42 apply to the sponsors. For
111 37 purposes of this subsection, a person sponsoring a
111 38 flea market or a craft, antique, coin, or stamp show
111 39 or similar event does not include an organization
111 40 which sponsors an event less than three times a year
111 41 or a state, county, or district agricultural fair.
111 42 Sec. 136. NEW SECTION. 423.34 LIABILITY OF USER.
111 43 Any person who uses any property or services
111 44 enumerated in section 423.2 upon which the use tax has
111 45 not been paid, either to the county treasurer or to a
111 46 retailer or direct to the department as required by
111 47 this subchapter, shall be liable for the payment of
111 48 tax, and shall on or before the last day of the month
111 49 next succeeding each quarterly period pay the use tax
111 50 upon all property or services used by the person
112 1 during the preceding quarterly period in the manner
112 2 and accompanied by such returns as the director shall
112 3 prescribe. All of the provisions of sections 423.32
112 4 and 423.33 with reference to the returns and payments
112 5 shall be applicable to the returns and payments
112 6 required by this section.
112 7 Sec. 137. NEW SECTION. 423.35 POSTING OF BOND TO
112 8 SECURE PAYMENT.
112 9 The director may, when necessary and advisable in
112 10 order to secure the collection of the sales or use
112 11 tax, authorize any person subject to either tax, and
112 12 any retailer required or authorized to collect those
112 13 taxes pursuant to the provisions of section 423.14, to
112 14 file with the department a bond, issued by a surety
112 15 company authorized to transact business in this state
112 16 and approved by the insurance commissioner as to
112 17 solvency and responsibility, in an amount as the
112 18 director may fix, to secure the payment of any tax,
112 19 interest, or penalties due or which may become due
112 20 from such person. In lieu of a bond, securities
112 21 approved by the director, in an amount which the
112 22 director may prescribe, may be deposited with the
112 23 department, which securities shall be kept in the
112 24 custody of the department and may be sold by the
112 25 director at public or private sale, without notice to
112 26 the depositor, if it becomes necessary to do so in
112 27 order to recover any tax, interest, or penalties due.
112 28 Upon the sale, the surplus, if any, above the amounts
112 29 due under this chapter shall be returned to the person
112 30 who deposited the securities.
112 31 Sec. 138. NEW SECTION. 423.36 PERMITS REQUIRED
112 32 TO COLLECT SALES OR USE TAX == APPLICATIONS ==
112 33 REVOCATION.
112 34 1. A person shall not engage in or transact
112 35 business as a retailer making taxable sales of
112 36 tangible personal property or furnishing services
112 37 within this state or as a retailer making taxable
112 38 sales of tangible personal property or furnishing
112 39 services for use within this state, unless a permit
112 40 has been issued to the retailer under this section,
112 41 except as provided in subsection 6. Every person
112 42 desiring to engage in or transact business as a
112 43 retailer shall file with the department an application
112 44 for a permit to collect sales or use tax. Every
112 45 application for a sales or use tax permit shall be
112 46 made upon a form prescribed by the director and shall
112 47 set forth any information the director may require.
112 48 The application shall be signed by an owner of the
112 49 business if a natural person; in the case of a
112 50 retailer which is an association or partnership, by a
113 1 member or partner; and in the case of a retailer which
113 2 is a corporation, by an executive officer or some
113 3 person specifically authorized by the corporation to
113 4 sign the application, to which shall be attached the
113 5 written evidence of the person's authority.
113 6 2. To collect sales or use tax, the applicant must
113 7 have a permit for each place of business in the state
113 8 of Iowa. The department may deny a permit to an
113 9 applicant who is substantially delinquent in paying a
113 10 tax due, or the interest or penalty on the tax,
113 11 administered by the department at the time of
113 12 application. If the applicant is a partnership, a
113 13 permit may be denied if a partner is substantially
113 14 delinquent in paying any delinquent tax, penalty, or
113 15 interest. If the applicant is a corporation, a permit
113 16 may be denied if any officer having a substantial
113 17 legal or equitable interest in the ownership of the
113 18 corporation owes any delinquent tax, penalty, or
113 19 interest.
113 20 3. The department shall grant and issue to each
113 21 applicant a permit for each place of business in this
113 22 state where sales or use tax is collected. A permit
113 23 is not assignable and is valid only for the person in
113 24 whose name it is issued and for the transaction of
113 25 business at the place designated or at a place of
113 26 relocation within the state if the ownership remains
113 27 the same.
113 28 If an applicant is making sales outside Iowa for
113 29 use in this state or furnishing services outside Iowa,
113 30 the product or result of which will be used in this
113 31 state, that applicant shall be issued one use tax
113 32 permit by the department applicable to these out=of=
113 33 state sales or services.
113 34 4. Permits issued under this section are valid and
113 35 effective until revoked by the department.
113 36 5. If the holder of a permit fails to comply with
113 37 any of the provisions of this subchapter or of
113 38 subchapter II or III or any order or rule of the
113 39 department adopted under those subchapters or is
113 40 substantially delinquent in the payment of a tax
113 41 administered by the department or the interest or
113 42 penalty on the tax, or if the person is a corporation
113 43 and if any officer having a substantial legal or
113 44 equitable interest in the ownership of the corporation
113 45 owes any delinquent tax of the permit=holding
113 46 corporation, or interest or penalty on the tax,
113 47 administered by the department, the director may
113 48 revoke the permit. The director shall send notice by
113 49 mail to a permit holder informing that person of the
113 50 director's intent to revoke the permit and of the
114 1 permit holder's right to a hearing on the matter. If
114 2 the permit holder petitions the director for a hearing
114 3 on the proposed revocation, after giving ten days'
114 4 notice of the time and place of the hearing in
114 5 accordance with section 17A.18, subsection 3, the
114 6 matter may be heard and a decision rendered. The
114 7 director may restore permits after revocation. The
114 8 director shall adopt rules setting forth the period of
114 9 time a retailer must wait before a permit may be
114 10 restored or a new permit may be issued. The waiting
114 11 period shall not exceed ninety days from the date of
114 12 the revocation of the permit.
114 13 6. Sellers who are not regularly engaged in
114 14 selling at retail and do not have a permanent place of
114 15 business, but who are temporarily engaged in selling
114 16 from trucks, portable roadside stands, concessionaires
114 17 at state, county, district, or local fairs, carnivals,
114 18 or the like, shall report and remit the sales tax on a
114 19 temporary basis, under rules the director shall
114 20 provide for the efficient collection of the sales tax.
114 21 This subsection applies to sellers who are temporarily
114 22 engaged in furnishing services.
114 23 Persons engaged in selling tangible personal
114 24 property or furnishing services shall not be required
114 25 to obtain or retain a sales tax permit for a place of
114 26 business at which taxable sales of tangible personal
114 27 property or taxable performance of services will not
114 28 occur.
114 29 7. The provisions of subsection 1, dealing with
114 30 the lawful right of a retailer to transact business,
114 31 as applicable, apply to persons having receipts from
114 32 furnishing services enumerated in section 423.2,
114 33 except that a person holding a permit pursuant to
114 34 subsection 1 shall not be required to obtain any
114 35 separate sales tax permit for the purpose of engaging
114 36 in business involving the services.
114 37 8. a. Except as provided in paragraph "b",
114 38 purchasers, users, and consumers of tangible personal
114 39 property or enumerated services taxed pursuant to
114 40 subchapter II or III of this chapter or chapters 423B
114 41 and 423E may be authorized, pursuant to rules adopted
114 42 by the director, to remit tax owed directly to the
114 43 department instead of the tax being collected and paid
114 44 by the seller. To qualify for a direct pay tax
114 45 permit, the purchaser, user, or consumer must accrue a
114 46 tax liability of more than four thousand dollars in
114 47 tax under subchapters II and III in a semimonthly
114 48 period and make deposits and file returns pursuant to
114 49 section 423.31. This authority shall not be granted
114 50 or exercised except upon application to the director
115 1 and then only after issuance by the director of a
115 2 direct pay tax permit.
115 3 b. The granting of a direct pay tax permit is not
115 4 authorized for any of the following:
115 5 (1) Taxes imposed on the sales, furnishing, or
115 6 service of gas, electricity, water, heat, pay
115 7 television service, and communication service.
115 8 (2) Taxes imposed under sections 423.26 and 423.27
115 9 and chapter 423C.
115 10 Sec. 139. NEW SECTION. 423.37 FAILURE TO FILE
115 11 SALES OR USE TAX RETURNS == INCORRECT RETURNS.
115 12 1. As soon as practicable after a return is filed
115 13 and in any event within three years after the return
115 14 is filed, the department shall examine it, assess and
115 15 determine the tax due if the return is found to be
115 16 incorrect, and give notice to the person liable for
115 17 the tax of the assessment and determination as
115 18 provided in subsection 2. The period for the
115 19 examination and determination of the correct amount of
115 20 tax is unlimited in the case of a false or fraudulent
115 21 return made with the intent to evade tax or in the
115 22 case of a failure to file a return.
115 23 2. If a return required by this subchapter is not
115 24 filed, or if a return when filed is incorrect or
115 25 insufficient and the maker fails to file a corrected
115 26 or sufficient return within twenty days after the same
115 27 is required by notice from the department, the
115 28 department shall determine the amount of tax due from
115 29 information as the department may be able to obtain
115 30 and, if necessary, may estimate the tax on the basis
115 31 of external indices, such as number of employees of
115 32 the person concerned, rentals paid by the person,
115 33 stock on hand, or other factors. The department shall
115 34 give notice of the determination to the person liable
115 35 for the tax. The determination shall fix the tax
115 36 unless the person against whom it is assessed shall,
115 37 within sixty days after the giving of notice of the
115 38 determination, apply to the director for a hearing or
115 39 unless the taxpayer contests the determination by
115 40 paying the tax, interest, and penalty and timely
115 41 filing a claim for refund. At the hearing evidence
115 42 may be offered to support the determination or to
115 43 prove that it is incorrect. After the hearing the
115 44 director shall give notice of the decision to the
115 45 person liable for the tax.
115 46 3. The three=year period of limitation provided in
115 47 subsection 1 may be extended by a taxpayer by signing
115 48 a waiver agreement form to be provided by the
115 49 department. The agreement shall stipulate the period
115 50 of extension and the tax period to which the extension
116 1 applies. The agreement shall also provide that a
116 2 claim for refund may be filed by the taxpayer at any
116 3 time during the period of extension.
116 4 Sec. 140. NEW SECTION. 423.38 JUDICIAL REVIEW.
116 5 1. Judicial review of actions of the director may
116 6 be sought in accordance with the terms of the Iowa
116 7 administrative procedure Act.
116 8 2. For cause and upon a showing by the director
116 9 that collection of the tax in dispute is in doubt, the
116 10 court may order the petitioner to file with the clerk
116 11 a bond for the use of the respondent, with sureties
116 12 approved by the clerk, in the amount of tax appealed
116 13 from, conditioned that the petitioner shall perform
116 14 the orders of the court.
116 15 3. An appeal may be taken by the taxpayer or the
116 16 director to the supreme court of this state
116 17 irrespective of the amount involved.
116 18 Sec. 141. NEW SECTION. 423.39 SERVICE OF
116 19 NOTICES.
116 20 1. A notice authorized or required under this
116 21 subchapter may be given by mailing the notice to the
116 22 person for whom it is intended, addressed to that
116 23 person at the address given in the last return filed
116 24 by the person pursuant to this subchapter, or if no
116 25 return has been filed, then to any address obtainable.
116 26 The mailing of the notice is presumptive evidence of
116 27 the receipt of the notice by the person to whom
116 28 addressed. Any period of time which is determined
116 29 according to this subchapter by the giving of notice
116 30 commences to run from the date of mailing of the
116 31 notice.
116 32 2. The provisions of the Code relative to the
116 33 limitation of time for the enforcement of a civil
116 34 remedy shall not apply to any proceeding or action
116 35 taken to levy, appraise, assess, determine, or enforce
116 36 the collection of any tax or penalty provided by this
116 37 chapter.
116 38 Sec. 142. NEW SECTION. 423.40 PENALTIES ==
116 39 OFFENSES == LIMITATION.
116 40 1. In addition to the sales or use tax or
116 41 additional sales or use tax, the taxpayer shall pay a
116 42 penalty as provided in section 421.27. The taxpayer
116 43 shall also pay interest on the sales or use tax or
116 44 additional sales or use tax at the rate in effect
116 45 under section 421.7 for each month counting each
116 46 fraction of a month as an entire month, computed from
116 47 the date the semimonthly or monthly tax deposit form
116 48 or return was required to be filed. The penalty and
116 49 interest shall be paid to the department and disposed
116 50 of in the same manner as other receipts under this
117 1 subchapter. Unpaid penalties and interest may be
117 2 enforced in the same manner as the taxes imposed by
117 3 this chapter.
117 4 2. a. Any person who knowingly sells tangible
117 5 personal property, tickets or admissions to places of
117 6 amusement and athletic events, or gas, water,
117 7 electricity, or communication service at retail, or
117 8 engages in the furnishing of services enumerated in
117 9 section 423.2, in this state without procuring a
117 10 permit to collect tax, as provided in section 423.36,
117 11 or who violates section 423.24 and the officers of any
117 12 corporation who so act are guilty of a serious
117 13 misdemeanor.
117 14 b. A person who knowingly sells tangible personal
117 15 property, tickets or admissions to places of amusement
117 16 and athletic events, or gas, water, electricity, or
117 17 communication service at retail, or engages in the
117 18 furnishing of services enumerated in section 423.2, in
117 19 this state after the person's sales tax permit has
117 20 been revoked and before it has been restored as
117 21 provided in section 423.36, subsection 5, and the
117 22 officers of any corporation who so act are guilty of
117 23 an aggravated misdemeanor.
117 24 3. A person who willfully attempts in any manner
117 25 to evade any tax imposed by this chapter or the
117 26 payment of the tax or a person who makes or causes to
117 27 be made a false or fraudulent semimonthly or monthly
117 28 tax deposit form or return with intent to evade any
117 29 tax imposed by subchapter II or III or the payment of
117 30 the tax is guilty of a class "D" felony.
117 31 4. The certificate of the director to the effect
117 32 that a tax has not been paid, that a return has not
117 33 been filed, or that information has not been supplied
117 34 pursuant to the provisions of this subchapter shall be
117 35 prima facie evidence thereof.
117 36 5. A person required to pay sales or use tax, or
117 37 to make, sign, or file a tax deposit form or return or
117 38 supplemental return, who willfully makes a false or
117 39 fraudulent tax deposit form or return, or willfully
117 40 fails to pay at least ninety percent of the tax or
117 41 willfully fails to make, sign, or file the tax deposit
117 42 form or return, at the time required by law, is guilty
117 43 of a fraudulent practice.
117 44 6. A prosecution for an offense specified in this
117 45 section shall be commenced within six years after its
117 46 commission.
117 47 Sec. 143. NEW SECTION. 423.41 BOOKS ==
117 48 EXAMINATION.
117 49 Every retailer required or authorized to collect
117 50 taxes imposed by this chapter and every person using
118 1 in this state tangible personal property, services, or
118 2 the product of services shall keep records, receipts,
118 3 invoices, and other pertinent papers as the director
118 4 shall require, in the form that the director shall
118 5 require, for as long as the director has the authority
118 6 to examine and determine tax due. The director or any
118 7 duly authorized agent of the department may examine
118 8 the books, papers, records, and equipment of any
118 9 person either selling tangible personal property or
118 10 services or liable for the tax imposed by this
118 11 chapter, and investigate the character of the business
118 12 of any person in order to verify the accuracy of any
118 13 return made, or if a return was not made by the
118 14 person, ascertain and determine the amount due under
118 15 this chapter. These books, papers, and records shall
118 16 be made available within this state for examination
118 17 upon reasonable notice when the director deems it
118 18 advisable and so orders. The preceding requirements
118 19 shall likewise apply to users and persons furnishing
118 20 services enumerated in section 423.2.
118 21 Sec. 144. NEW SECTION. 423.42 STATUTES
118 22 APPLICABLE.
118 23 1. The director shall administer the taxes imposed
118 24 by subchapters II and III in the same manner and
118 25 subject to all the provisions of, and all of the
118 26 powers, duties, authority, and restrictions contained
118 27 in, section 422.25, subsection 4, section 422.30, and
118 28 sections 422.67 through 422.75.
118 29 2. All the provisions of section 422.26 shall
118 30 apply in respect to the taxes and penalties imposed by
118 31 subchapters II and III and this subchapter, except
118 32 that, as applied to any tax imposed by subchapters II
118 33 and III, the lien provided in section 422.26 shall be
118 34 prior and paramount over all subsequent liens upon any
118 35 personal property within this state, or right to such
118 36 personal property, belonging to the taxpayer without
118 37 the necessity of recording as provided in section
118 38 422.26. The requirements for recording shall, as
118 39 applied to the taxes imposed by subchapters II and
118 40 III, apply only to the liens upon real property. When
118 41 requested to do so by any person from whom a taxpayer
118 42 is seeking credit, or with whom the taxpayer is
118 43 negotiating the sale of any personal property, or by
118 44 any other person having a legitimate interest in such
118 45 information, the director shall, upon being satisfied
118 46 that such a situation exists, inform that person as to
118 47 the amount of unpaid taxes due by such taxpayer under
118 48 the provisions of subchapters II and III. The giving
118 49 of this information under these circumstances shall
118 50 not be deemed a violation of section 422.72 as applied
119 1 to subchapters II and III.
119 2 Sec. 145. NEW SECTION. 423.43 DEPOSIT OF REVENUE
119 3 == APPROPRIATIONS.
119 4 Except as otherwise provided in section 312.2,
119 5 subsection 15, all revenues derived from the use tax
119 6 on motor vehicles, trailers, and motor vehicle
119 7 accessories and equipment as collected pursuant to
119 8 sections 423.26 and 423.27 shall be deposited and
119 9 credited to the road use tax fund and shall be used
119 10 exclusively for the construction, maintenance, and
119 11 supervision of public highways.
119 12 1. Notwithstanding any provision of this section
119 13 which provides that all revenues derived from the use
119 14 tax on motor vehicles, trailers, and motor vehicle
119 15 accessories and equipment as collected pursuant to
119 16 sections 423.26 and 423.27 shall be deposited and
119 17 credited to the road use tax fund, eighty percent of
119 18 the revenues shall be deposited and credited as
119 19 follows:
119 20 a. Twenty=five percent of all such revenue, up to
119 21 a maximum of four million two hundred fifty thousand
119 22 dollars per quarter, shall be deposited into and
119 23 credited to the Iowa comprehensive petroleum
119 24 underground storage tank fund created in section
119 25 455G.3, and the moneys so deposited are a continuing
119 26 appropriation for expenditure under chapter 455G, and
119 27 moneys so appropriated shall not be used for other
119 28 purposes.
119 29 b. Any such revenues remaining shall be credited
119 30 to the road use tax fund.
119 31 2. Notwithstanding any other provision of this
119 32 section that provides that all revenue derived from
119 33 the use tax on motor vehicles, trailers, and motor
119 34 vehicle accessories and equipment as collected
119 35 pursuant to section 423.26 shall be deposited and
119 36 credited to the road use tax fund, twenty percent of
119 37 the revenues shall be credited and deposited as
119 38 follows: one=half to the road use tax fund and one=
119 39 half to the primary road fund to be used for the
119 40 commercial and industrial highway network.
119 41 3. All other revenue arising under the operation
119 42 of this chapter shall be credited to the general fund
119 43 of the state.
119 44 Sec. 146. NEW SECTION. 423.44 REIMBURSEMENT FOR
119 45 PRIMARY ROAD FUND.
119 46 From moneys deposited into the road use tax fund,
119 47 the department may credit to the primary road fund any
119 48 amount of revenues derived from the use tax on motor
119 49 vehicles, trailers, and motor vehicle accessories and
119 50 equipment as collected pursuant to sections 423.26 and
120 1 423.27 to the extent necessary to reimburse that fund
120 2 for the expenditures not otherwise eligible to be made
120 3 from the primary road fund, which are made for
120 4 repairing, improving, and maintaining bridges over the
120 5 rivers bordering the state. Expenditures for those
120 6 portions of bridges within adjacent states may be
120 7 included when they are made pursuant to an agreement
120 8 entered into under section 313.63, 313A.34, or 314.10.
120 9 Sec. 147. NEW SECTION. 423.45 REFUNDS ==
120 10 EXEMPTION CERTIFICATES.
120 11 1. If an amount of tax represented by a retailer
120 12 to a consumer or user as constituting tax due is
120 13 computed upon a sales price that is not taxable or the
120 14 amount represented is in excess of the actual taxable
120 15 amount and the amount represented is actually paid by
120 16 the consumer or user to the retailer, the excess
120 17 amount of tax paid shall be returned to the consumer
120 18 or user upon notification to the retailer by the
120 19 department that an excess payment exists.
120 20 2. If an amount of tax represented by a retailer
120 21 to a consumer or user as constituting tax due is
120 22 computed upon a sales price that is not taxable or the
120 23 amount represented is in excess of the actual taxable
120 24 amount and the amount represented is actually paid by
120 25 the consumer or user to the retailer, the excess
120 26 amount of tax paid shall be returned to the consumer
120 27 or user upon proper notification to the retailer by
120 28 the consumer or user that an excess payment exists.
120 29 "Proper" notification is written notification which
120 30 allows a retailer at least sixty days to respond and
120 31 which contains enough information to allow a retailer
120 32 to determine the validity of a consumer's or user's
120 33 claim that an excess amount of tax has been paid. No
120 34 cause of action shall accrue against a retailer for
120 35 excess tax paid until sixty days after proper notice
120 36 has been given the retailer by the consumer or user.
120 37 3. In the circumstances described in subsections 1
120 38 and 2, a retailer has the option to either return any
120 39 excess amount of tax paid to a consumer or user, or to
120 40 remit the amount which a consumer or user has paid to
120 41 the retailer to the department.
120 42 4. a. The department shall issue or the seller
120 43 may separately provide exemption certificates in the
120 44 form prescribed by the director, including
120 45 certificates not made of paper, which conform to the
120 46 requirements of paragraph "c", to assist retailers in
120 47 properly accounting for nontaxable sales of tangible
120 48 personal property or services to purchasers for a
120 49 nontaxable purpose. The department shall also allow
120 50 the use of exemption certificates for those
121 1 circumstances in which a sale is taxable but the
121 2 seller is not obligated to collect tax from the buyer.
121 3 b. The sales tax liability for all sales of
121 4 tangible personal property and all sales of services
121 5 is upon the seller and the purchaser unless the seller
121 6 takes in good faith from the purchaser a valid
121 7 exemption certificate stating under penalty of perjury
121 8 that the purchase is for a nontaxable purpose and is
121 9 not a retail sale as defined in section 423.1, or the
121 10 seller is not obligated to collect tax due, or unless
121 11 the seller takes a fuel exemption certificate pursuant
121 12 to subsection 5. If the tangible personal property or
121 13 services are purchased tax free pursuant to a valid
121 14 exemption certificate which is taken in good faith by
121 15 the seller, and the tangible personal property or
121 16 services are used or disposed of by the purchaser in a
121 17 nonexempt manner, the purchaser is solely liable for
121 18 the taxes and shall remit the taxes directly to the
121 19 department and sections 423.31, 423.32, 423.37,
121 20 423.38, 423.39, 423.40, 423.41, and 423.42 shall apply
121 21 to the purchaser.
121 22 c. A valid exemption certificate is an exemption
121 23 certificate which is complete and correct according to
121 24 the requirements of the director.
121 25 d. A valid exemption certificate is taken in good
121 26 faith by the seller when the seller has exercised that
121 27 caution and diligence which honest persons of ordinary
121 28 prudence would exercise in handling their own business
121 29 affairs, and includes an honesty of intention and
121 30 freedom from knowledge of circumstances which ought to
121 31 put one upon inquiry as to the facts. In order for a
121 32 seller to take a valid exemption certificate in good
121 33 faith, the seller must exercise reasonable prudence to
121 34 determine the facts supporting the valid exemption
121 35 certificate, and if any facts upon such certificate
121 36 would lead a reasonable person to further inquiry,
121 37 such inquiry must be made with an honest intent to
121 38 discover the facts.
121 39 e. If the circumstances change and as a result the
121 40 tangible personal property or services are used or
121 41 disposed of by the purchaser in a nonexempt manner or
121 42 the purchaser becomes obligated to pay the tax, the
121 43 purchaser is liable solely for the taxes and shall
121 44 remit the taxes directly to the department in
121 45 accordance with this subsection.
121 46 5. a. The department shall issue or the seller
121 47 may separately provide fuel exemption certificates in
121 48 the form prescribed by the director.
121 49 b. For purposes of this subsection:
121 50 (1) "Fuel" includes gas, electricity, water, heat,
122 1 steam, and any other tangible personal property
122 2 consumed in creating heat, power, or steam.
122 3 (2) "Fuel consumed in processing" means fuel used
122 4 or consumed for processing including grain drying, for
122 5 providing heat or cooling for livestock buildings or
122 6 for greenhouses or buildings or parts of buildings
122 7 dedicated to the production of flowering, ornamental,
122 8 or vegetable plants intended for sale in the ordinary
122 9 course of business, for use in aquaculture production,
122 10 or for generating electric current, or in implements
122 11 of husbandry engaged in agricultural production.
122 12 (3) "Fuel exemption certificate" means an
122 13 exemption certificate given by the purchaser under
122 14 penalty of perjury to assist retailers in properly
122 15 accounting for nontaxable sales of fuel consumed in
122 16 processing.
122 17 (4) "Substantial change" means a change in the use
122 18 or disposition of tangible personal property and
122 19 services by the purchaser such that the purchaser pays
122 20 less than ninety percent of the purchaser's actual
122 21 sales tax liability. A change includes a misstatement
122 22 of facts in an application made pursuant to paragraph
122 23 "d" or in a fuel exemption certificate.
122 24 c. The seller may accept a completed fuel
122 25 exemption certificate, as prepared by the purchaser,
122 26 for three years unless the purchaser files a new
122 27 completed exemption certificate. If the fuel is
122 28 purchased tax free pursuant to a fuel exemption
122 29 certificate which is taken by the seller, and the fuel
122 30 is used or disposed of by the purchaser in a nonexempt
122 31 manner, the purchaser is solely liable for the taxes,
122 32 and shall remit the taxes directly to the department
122 33 and sections 423.31, 423.32, 423.37, 423.38, 423.39,
122 34 423.40, 423.41, and 423.42 shall apply to the
122 35 purchaser.
122 36 d. The purchaser may apply to the department for
122 37 its review of the fuel exemption certificate. In this
122 38 event, the department shall review the fuel exemption
122 39 certificate within twelve months from the date of
122 40 application and determine the correct amount of the
122 41 exemption. If the amount determined by the department
122 42 is different than the amount that the purchaser claims
122 43 is exempt, the department shall promptly notify the
122 44 purchaser of the determination. Failure of the
122 45 department to make a determination within twelve
122 46 months from the date of application shall constitute a
122 47 determination that the fuel exemption certificate is
122 48 correct as submitted. A determination of exemption by
122 49 the department is final unless the purchaser appeals
122 50 to the director for a revision of the determination
123 1 within sixty days after the date of the notice of
123 2 determination. The director shall grant a hearing,
123 3 and upon the hearing, the director shall determine the
123 4 correct exemption and notify the purchaser of the
123 5 decision by mail. The decision of the director is
123 6 final unless the purchaser seeks judicial review of
123 7 the director's decision under section 423.38 within
123 8 sixty days after the date of the notice of the
123 9 director's decision. Unless there is a substantial
123 10 change, the department shall not impose penalties
123 11 pursuant to section 423.40 both retroactively to
123 12 purchases made after the date of application and
123 13 prospectively until the department gives notice to the
123 14 purchaser that a tax or additional tax is due, for
123 15 failure to remit any tax due which is in excess of a
123 16 determination made under this section. A
123 17 determination made by the department pursuant to this
123 18 subsection does not constitute an audit for purposes
123 19 of section 423.37.
123 20 e. If the circumstances change and the fuel is
123 21 used or disposed of by the purchaser in a nonexempt
123 22 manner, the purchaser is solely liable for the taxes
123 23 and shall remit the taxes directly to the department
123 24 in accordance with paragraph "c".
123 25 f. The purchaser shall attach documentation to the
123 26 fuel exemption certificate which is reasonably
123 27 necessary to support the exemption for fuel consumed
123 28 in processing. If the purchaser files a new exemption
123 29 certificate with the seller, documentation shall not
123 30 be required if the purchaser previously furnished the
123 31 seller with this documentation and substantial change
123 32 has not occurred since that documentation was
123 33 furnished or if fuel consumed in processing is
123 34 separately metered and billed by the seller.
123 35 6. Nothing in this section authorizes any cause of
123 36 action by any person to recover sales or use taxes
123 37 directly from the state or extends any person's time
123 38 to seek a refund of sales or use taxes which have been
123 39 collected and remitted to the state.
123 40 Sec. 148. NEW SECTION. 423.46 RATE AND BASE
123 41 CHANGES.
123 42 The department shall make a reasonable effort to
123 43 provide sellers with as much advance notice as
123 44 practicable of a rate change and to notify sellers of
123 45 legislative changes in the tax base and amendments to
123 46 sales and use tax rules. Failure of a seller to
123 47 receive notice or failure of this state to provide
123 48 notice or limit the effective date of a rate change
123 49 shall not relieve the seller of its obligation to
123 50 collect sales or use taxes for this state.
124 1 Sec. 149. NEW SECTION. 423.47 REFUNDS AND
124 2 CREDITS.
124 3 If it shall appear that, as a result of mistake, an
124 4 amount of tax, penalty, or interest has been paid
124 5 which was not due under the provisions of this
124 6 chapter, such amount shall be credited against any tax
124 7 due, or to become due, on the books of the department
124 8 from the person who made the erroneous payment, or
124 9 such amount shall be refunded to such person by the
124 10 department. A claim for refund or credit that has not
124 11 been filed with the department within three years
124 12 after the tax payment for which a refund or credit is
124 13 claimed became due, or one year after such tax payment
124 14 was made, whichever time is the later, shall not be
124 15 allowed by the director.
124 16 SUBCHAPTER VI
124 17 SALES AND USE TAX ACT == ADMINISTRATION OF
124 18 RETAILERS REGISTERED VOLUNTARILY UNDER THE
124 19 AGREEMENT
124 20 Sec. 150. NEW SECTION. 423.48 RESPONSIBILITIES
124 21 AND RIGHTS OF SELLERS REGISTERED UNDER THE AGREEMENT.
124 22 1. By registering under the agreement, the seller
124 23 agrees to collect and remit sales and use taxes for
124 24 all its taxable Iowa sales. Iowa's withdrawal from
124 25 the agreement or revocation of its membership in the
124 26 agreement shall not relieve a seller from its
124 27 responsibility to remit taxes previously collected on
124 28 behalf of this state.
124 29 2. The following provisions apply to any seller
124 30 who registers under the agreement:
124 31 a. The seller may register on=line.
124 32 b. Registration under the agreement and the
124 33 collection of Iowa sales and use taxes shall not be
124 34 used as factors in determining whether the seller has
124 35 nexus with Iowa for any tax.
124 36 c. If registered under the agreement with any
124 37 other member state, the seller is considered to be
124 38 registered in Iowa.
124 39 d. The seller is not required to pay registration
124 40 fees or other charges.
124 41 e. A written signature from the seller is not
124 42 required.
124 43 f. The seller may register by way of an agent.
124 44 The agent's appointment shall be in writing and
124 45 submitted to the department if requested by the
124 46 department.
124 47 g. The seller may cancel its registration at any
124 48 time under procedures adopted by the governing board
124 49 established pursuant to the agreement. Cancellation
124 50 does not relieve the seller of its liability for
125 1 remitting any Iowa taxes collected.
125 2 3. The following additional responsibilities and
125 3 rights apply to model sellers:
125 4 a. A model 1 seller's obligation to calculate,
125 5 collect, and remit sales and use taxes shall be
125 6 performed by its certified service provider, except
125 7 for the seller's obligation to remit tax on its own
125 8 purchases. As the seller's agent, the certified
125 9 service provider is liable for its model 1 seller's
125 10 sales and use tax due Iowa on all sales transactions
125 11 it processes for the seller except as set out in this
125 12 section. A seller that contracts with a certified
125 13 service provider is not liable to the state for sales
125 14 or use tax due on transactions processed by the
125 15 certified service provider unless the seller
125 16 misrepresents the types of items or services it sells
125 17 or commits fraud. In the absence of probable cause to
125 18 believe that the seller has committed fraud or made a
125 19 material misrepresentation, the seller is not subject
125 20 to audit on the transactions processed by the
125 21 certified service provider. A model 1 seller is
125 22 subject to audit for transactions not processed by the
125 23 certified service provider. The director is
125 24 authorized to perform a system check of the model 1
125 25 seller and review the seller's procedures to determine
125 26 if the certified service provider's system is
125 27 functioning properly and the extent to which the
125 28 seller's transactions are being processed by the
125 29 certified service provider.
125 30 b. A model 2 seller shall calculate the amount of
125 31 tax due on a transaction by the use of a certified
125 32 automated system, but shall collect and remit tax on
125 33 its own sales. A person that provides a certified
125 34 automated system is responsible for the proper
125 35 functioning of that system and is liable to this state
125 36 for underpayments of tax attributable to errors in the
125 37 functioning of the certified automated system. A
125 38 seller that uses a certified automated system remains
125 39 responsible and is liable to the state for reporting
125 40 and remitting tax.
125 41 c. A model 3 seller shall use its own proprietary
125 42 automated system to calculate tax due and collect and
125 43 remit tax on its own sales. A model 3 seller is
125 44 liable for the failure of its proprietary automated
125 45 system to meet the applicable performance standard.
125 46 Sec. 151. NEW SECTION. 423.49 RETURNS.
125 47 1. All model 1, 2, or 3 sellers are subject to all
125 48 of the following return requirements:
125 49 a. The seller is required to file only one return
125 50 per month for this state and for all taxing
126 1 jurisdictions within this state.
126 2 b. The date for filing returns shall be determined
126 3 under rules adopted by the director. However, in no
126 4 case shall the return be due earlier than the
126 5 twentieth day of the following month.
126 6 c. The director shall request additional
126 7 information returns. These returns shall not be
126 8 required more frequently than every six months.
126 9 2. Any registered seller which does not have a
126 10 legal obligation to register in this state and is not
126 11 a model 1, 2, or 3 seller is subject to all of the
126 12 following return requirements:
126 13 a. The seller is required to file a return within
126 14 one year of the month of initial registration and
126 15 shall file a return on an annual basis in succeeding
126 16 years.
126 17 b. In addition to the return required in paragraph
126 18 "a", if the seller accumulates more than one thousand
126 19 dollars in total state and local tax, the seller is
126 20 required to file a return in the following month.
126 21 c. The format of the return and the due date of
126 22 the initial return and the annual return shall be
126 23 determined under rules adopted by the department.
126 24 Sec. 152. NEW SECTION. 423.50 REMITTANCE OF
126 25 FUNDS.
126 26 1. Only one remittance of tax per return is
126 27 required except as provided in this subsection.
126 28 Sellers that collect more than thirty thousand dollars
126 29 in sales and use taxes for this state during the
126 30 preceding calendar year shall be required to make
126 31 additional remittances as required under rules adopted
126 32 by the director. The filing of a return is not
126 33 required with an additional remittance.
126 34 2. All remittances shall be remitted
126 35 electronically.
126 36 3. Electronic payments may be made either by
126 37 automated clearinghouse credit or automated
126 38 clearinghouse debit. Any data accompanying a
126 39 remittance must be formatted using uniform tax type
126 40 and payment codes approved by the governing board
126 41 established pursuant to the agreement. An alternative
126 42 method for making same=day payments shall be
126 43 determined under rules adopted by the director.
126 44 4. If a due date falls on a legal banking holiday
126 45 in this state, the taxes are due on the succeeding
126 46 business day.
126 47 Sec. 153. NEW SECTION. 423.51 ADMINISTRATION OF
126 48 EXEMPTIONS.
126 49 1. The following provisions shall apply when a
126 50 purchaser claims an exemption:
127 1 a. The seller shall obtain identifying information
127 2 of the purchaser and the reason for claiming a tax
127 3 exemption at the time of the purchase as determined by
127 4 the member states acting jointly.
127 5 b. A purchaser is not required to provide a
127 6 signature to claim an exemption from tax unless a
127 7 paper certificate is used.
127 8 c. The seller shall use the standard form for
127 9 claiming an exemption electronically as adopted
127 10 jointly by the member states.
127 11 d. The seller shall obtain the same information
127 12 for proof of a claimed exemption regardless of the
127 13 medium in which the transaction occurred.
127 14 e. The department may authorize a system wherein
127 15 the purchaser exempt from the payment of the tax is
127 16 issued an identification number which shall be
127 17 presented to the seller at the time of the sale.
127 18 f. The seller shall maintain proper records of
127 19 exempt transactions and provide them to the department
127 20 when requested.
127 21 g. The department shall administer entity=based
127 22 and use=based exemptions when practicable through a
127 23 direct pay tax permit, an exemption certificate, or
127 24 another means that does not burden sellers. For the
127 25 purposes of this paragraph:
127 26 (1) An "entity=based exemption" is an exemption
127 27 based on who purchases the product or who sells the
127 28 product.
127 29 (2) A "use=based exemption" is an exemption based
127 30 on the purchaser's use of the product.
127 31 2. Sellers that follow the requirements of this
127 32 section are relieved from any tax otherwise applicable
127 33 if it is determined that the purchaser improperly
127 34 claimed an exemption and that the purchaser is liable
127 35 for the nonpayment of tax. This relief from liability
127 36 does not apply to a seller who fraudulently fails to
127 37 collect the tax or solicits purchasers to participate
127 38 in the unlawful claim of an exemption.
127 39 Sec. 154. NEW SECTION. 423.52 RELIEF FROM
127 40 LIABILITY FOR SELLERS AND CERTIFIED SERVICE PROVIDERS.
127 41 Sellers and certified service providers are
127 42 relieved from liability to this state or its local
127 43 taxing jurisdictions for having charged and collected
127 44 the incorrect amount of sales or use tax resulting
127 45 from the seller or certified service provider relying
127 46 on erroneous data provided by this state on tax rates,
127 47 boundaries, or taxing jurisdiction assignments. If
127 48 this state provides an address=based system for
127 49 assigning taxing jurisdictions whether or not pursuant
127 50 to the federal Mobile Telecommunications Sourcing Act,
128 1 the director is not required to provide liability
128 2 relief for errors resulting from reliance on the
128 3 information provided by this state.
128 4 Sec. 155. NEW SECTION. 423.53 BAD DEBTS AND
128 5 MODEL 1 SELLERS.
128 6 A certified service provider may claim, on behalf
128 7 of a model 1 seller, any bad debt deduction as
128 8 provided in section 423.21. The certified service
128 9 provider must credit or refund the full amount of any
128 10 bad debt deduction or refund received to the seller.
128 11 Sec. 156. NEW SECTION. 423.54 AMNESTY FOR
128 12 REGISTERED SELLERS.
128 13 1. Subject to the limitations in subsections 2
128 14 through 6, the following provisions apply:
128 15 a. Amnesty is provided for uncollected or unpaid
128 16 sales or use tax to a seller who registers to pay or
128 17 to collect and remit applicable sales or use tax on
128 18 sales made to purchasers in this state in accordance
128 19 with the terms of the agreement, provided the seller
128 20 was not so registered in this state in the twelve=
128 21 month period preceding the commencement of Iowa's
128 22 participation in the agreement.
128 23 b. Amnesty precludes assessment of the seller for
128 24 uncollected or unpaid sales or use tax together with
128 25 penalty or interest for sales made during the period
128 26 the seller was not registered in this state, provided
128 27 registration occurs within twelve months of the
128 28 commencement of Iowa's participation in the agreement.
128 29 c. Amnesty shall be provided to any seller
128 30 lawfully registered under the agreement by any other
128 31 member state prior to the date of the commencement of
128 32 Iowa's participation in the agreement.
128 33 2. Amnesty is not available to a seller with
128 34 respect to any matter or matters for which the seller
128 35 received notice of the commencement of an audit and
128 36 which audit is not yet finally resolved, including any
128 37 related administrative and judicial processes.
128 38 3. Amnesty is not available for sales or use taxes
128 39 already paid or remitted or to taxes collected by the
128 40 seller.
128 41 4. Amnesty is fully effective absent the seller's
128 42 fraud or intentional misrepresentation of a material
128 43 fact as long as the seller continues registration and
128 44 continues payment or collection and remittance of
128 45 applicable sales or use taxes for a period of at least
128 46 thirty=six months. The statute of limitations
128 47 applicable to asserting a tax liability is tolled
128 48 during this thirty=six month period.
128 49 5. Amnesty is applicable only to sales or use
128 50 taxes due from a seller in its capacity as a seller
129 1 and not to sales or use taxes due from a seller in its
129 2 capacity as a buyer.
129 3 6. The director may allow amnesty on terms and
129 4 conditions more favorable to a seller than the terms
129 5 required by this section.
129 6 Sec. 157. NEW SECTION. 423.55 DATABASES.
129 7 The department shall provide and maintain databases
129 8 required by the agreement for the benefit of sellers
129 9 registered under the agreement.
129 10 Sec. 158. NEW SECTION. 423.56 CONFIDENTIALITY
129 11 AND PRIVACY PROTECTIONS UNDER MODEL 1.
129 12 1. As used in this section:
129 13 a. "Anonymous data" means information that does
129 14 not identify a person.
129 15 b. "Confidential taxpayer information" means all
129 16 information that is protected under this state's laws,
129 17 rules, and privileges.
129 18 c. "Personally identifiable information" means
129 19 information that identifies a person.
129 20 2. With very limited exceptions, a certified
129 21 service provider shall perform its tax calculation,
129 22 remittance, and reporting functions without retaining
129 23 the personally identifiable information of consumers.
129 24 3. A certified service provider may perform its
129 25 services in this state only if the certified service
129 26 provider certifies that:
129 27 a. Its system has been designed and tested to
129 28 ensure that the fundamental precept of anonymity is
129 29 respected.
129 30 b. Personally identifiable information is only
129 31 used and retained to the extent necessary for the
129 32 administration of model 1 sellers with respect to
129 33 exempt purchasers.
129 34 c. It provides consumers clear and conspicuous
129 35 notice of its information practices, including what
129 36 information it collects, how it collects the
129 37 information, how it uses the information, how long, if
129 38 at all, it retains the information, and whether it
129 39 discloses the information to member states. This
129 40 notice shall be satisfied by a written privacy policy
129 41 statement accessible by the public on the official web
129 42 site of the certified service provider.
129 43 d. Its collection, use, and retention of
129 44 personally identifiable information is limited to that
129 45 required by the member states to ensure the validity
129 46 of exemptions from taxation that are claimed by reason
129 47 of a consumer's status or the intended use of the
129 48 goods or services purchased.
129 49 e. It provides adequate technical, physical, and
129 50 administrative safeguards so as to protect personally
130 1 identifiable information from unauthorized access and
130 2 disclosure.
130 3 4. The department shall provide public
130 4 notification of its practices relating to the
130 5 collection, use, and retention of personally
130 6 identifiable information.
130 7 5. When any personally identifiable information
130 8 that has been collected and retained by the department
130 9 or certified service provider is no longer required
130 10 for the purposes set forth in subsection 3, paragraph
130 11 "d", that information shall no longer be retained by
130 12 the department or certified service provider.
130 13 6. When personally identifiable information
130 14 regarding an individual is retained by or on behalf of
130 15 this state, this state shall provide reasonable access
130 16 by such individual to his or her own information in
130 17 the state's possession and a right to correct any
130 18 inaccurately recorded information.
130 19 7. This privacy policy is subject to enforcement
130 20 by the department and the attorney general.
130 21 8. This state's laws and rules regarding the
130 22 collection, use, and maintenance of confidential
130 23 taxpayer information remain fully applicable and
130 24 binding. Without limitation, the agreement does not
130 25 enlarge or limit the state's or department's authority
130 26 to:
130 27 a. Conduct audits or other review as provided
130 28 under the agreement and state law.
130 29 b. Provide records pursuant to its examination of
130 30 public records law, disclosure laws of individual
130 31 governmental agencies, or other regulations.
130 32 c. Prevent, consistent with state law, disclosures
130 33 of confidential taxpayer information.
130 34 d. Prevent, consistent with federal law,
130 35 disclosures or misuse of federal return information
130 36 obtained under a disclosure agreement with the
130 37 internal revenue service.
130 38 e. Collect, disclose, disseminate, or otherwise
130 39 use anonymous data for governmental purposes.
130 40 9. This privacy policy does not preclude the
130 41 certification of a certified service provider whose
130 42 privacy policy is more protective of confidential
130 43 taxpayer information or personally identifiable
130 44 information than is required by the agreement.
130 45 Sec. 159. NEW SECTION. 423.57 STATUTES
130 46 APPLICABLE.
130 47 The director shall administer this subchapter as it
130 48 relates to the taxes imposed in this chapter in the
130 49 same manner and subject to all the provisions of, and
130 50 all of the powers, duties, authority, and restrictions
131 1 contained in sections 423.14, 423.15, 423.16, 423.17,
131 2 423.18, 423.19, 423.20, 423.21, 423.22, 423.23,
131 3 423.24, 423.25, 423.28, 423.29, 423.31, 423.32,
131 4 423.33, 423.34, 423.35, 423.37, 423.38, 423.39,
131 5 423.40, 423.41, and 423.42, section 423.43, subsection
131 6 3, and sections 423.45, 423.46, and 423.47.
131 7 Sec. 160.
131 8 1. Sections 422.42 through 422.59, Code 2003, are
131 9 repealed.
131 10 2. Chapter 423, Code 2003, is repealed.
131 11 COORDINATING AMENDMENTS
131 12 Sec. 161. Section 15.331A, Code 2003, is amended
131 13 to read as follows:
131 14 15.331A SALES, SERVICES, AND USE TAX REFUND ==
131 15 CONTRACTOR OR SUBCONTRACTOR.
131 16 The eligible business or a supporting business
131 17 shall be entitled to a refund of the sales and use
131 18 taxes paid under chapters 422 and chapter 423 for gas,
131 19 electricity, water, or sewer utility services, goods,
131 20 wares, or merchandise, or on services rendered,
131 21 furnished, or performed to or for a contractor or
131 22 subcontractor and used in the fulfillment of a written
131 23 contract relating to the construction or equipping of
131 24 a facility within the economic development area of the
131 25 eligible business or a supporting business. Taxes
131 26 attributable to intangible property and furniture and
131 27 furnishings shall not be refunded.
131 28 To receive the refund a claim shall be filed by the
131 29 eligible business or a supporting business with the
131 30 department of revenue and finance as follows:
131 31 1. The contractor or subcontractor shall state
131 32 under oath, on forms provided by the department, the
131 33 amount of the sales of goods, wares, or merchandise or
131 34 services rendered, furnished, or performed including
131 35 water, sewer, gas, and electric utility services for
131 36 use in the economic development area upon which sales
131 37 or use tax has been paid prior to the project
131 38 completion, and shall file the forms with the eligible
131 39 business or supporting business before final
131 40 settlement is made.
131 41 2. The eligible business or a supporting business
131 42 shall, not more than one year after project
131 43 completion, make application to the department for any
131 44 refund of the amount of the sales and use taxes paid
131 45 pursuant to chapter 422 or 423 upon any goods, wares,
131 46 or merchandise, or services rendered, furnished, or
131 47 performed, including water, sewer, gas, and electric
131 48 utility services. The application shall be made in
131 49 the manner and upon forms to be provided by the
131 50 department, and the department shall audit the claim
132 1 and, if approved, issue a warrant to the eligible
132 2 business or supporting business in the amount of the
132 3 sales or use tax which has been paid to the state of
132 4 Iowa under a contract. A claim filed by the eligible
132 5 business or a supporting business in accordance with
132 6 this section shall not be denied by reason of a
132 7 limitation provision set forth in chapter 421, 422, or
132 8 423.
132 9 3. A contractor or subcontractor who willfully
132 10 makes a false report of tax paid under the provisions
132 11 of this section is guilty of a simple misdemeanor and
132 12 in addition is liable for the payment of the tax and
132 13 any applicable penalty and interest.
132 14 Sec. 162. Section 15.334A, Code 2003, is amended
132 15 to read as follows:
132 16 15.334A SALES AND USE TAX EXEMPTION.
132 17 An eligible business may claim an exemption from
132 18 sales and use taxation under section 422.45 423.3,
132 19 subsection 27 46, for property which is exempt from
132 20 taxation under section 15.334, notwithstanding the
132 21 requirements of section 422.45 423.3, subsection 27
132 22 46, or any other provision of the Code to the
132 23 contrary.
132 24 Sec. 163. Section 15A.9, subsections 5, 6, and 7,
132 25 Code 2003, are amended to read as follows:
132 26 5. PROPERTY TAX EXEMPTION.
132 27 a. All property, as defined in section 427A.1,
132 28 subsection 1, paragraphs "e" and "j", Code 1993, used
132 29 by the primary business or a supporting business and
132 30 located within the zone, shall be exempt from property
132 31 taxation for a period of twenty years beginning with
132 32 the year it is first assessed for taxation. In order
132 33 to be eligible for this exemption, the property shall
132 34 be acquired or leased by the primary business or a
132 35 supporting business or relocated by the primary
132 36 business or a supporting business to the zone from
132 37 outside the state prior to project completion.
132 38 b. Property which is exempt for property tax
132 39 purposes under this subsection is eligible for the
132 40 sales and use tax exemption under section 422.45
132 41 423.3, subsection 27 46, notwithstanding that
132 42 subsection or any other provision of the Code to the
132 43 contrary.
132 44 6. SALES, SERVICES, AND USE TAX REFUND. Taxes
132 45 paid pursuant to chapter 422 or 423 on the gross
132 46 receipts sales price or rental price of property
132 47 purchased or rented by the primary business or a
132 48 supporting business for use by the primary business or
132 49 a supporting business within the zone or on gas,
132 50 electricity, water, and sewer utility services prior
133 1 to project completion shall be refunded to the primary
133 2 business or supporting business if the item was
133 3 purchased or the service was performed or received
133 4 prior to project completion. Claims under this
133 5 section shall be submitted on forms provided by the
133 6 department of revenue and finance not later than six
133 7 months after project completion. The refund in this
133 8 subsection shall not apply to furniture or
133 9 furnishings, or intangible property.
133 10 7. SALES, SERVICES, AND USE TAX REFUND ==
133 11 CONTRACTOR OR SUBCONTRACTOR. The primary business or
133 12 a supporting business shall be entitled to a refund of
133 13 the sales and use taxes paid under chapters 422 and
133 14 chapter 423 for gas, electricity, water, or sewer
133 15 utility services, goods, wares, or merchandise, or on
133 16 services rendered, furnished, or performed to or for a
133 17 contractor or subcontractor and used in the
133 18 fulfillment of a written contract relating to the
133 19 construction or equipping of a facility within the
133 20 zone of the primary business or a supporting business.
133 21 Taxes attributable to intangible property and
133 22 furniture and furnishings shall not be refunded.
133 23 To receive the refund a claim shall be filed by the
133 24 primary business or a supporting business with the
133 25 department of revenue and finance as follows:
133 26 a. The contractor or subcontractor shall state
133 27 under oath, on forms provided by the department, the
133 28 amount of the sales of goods, wares, or merchandise or
133 29 services rendered, furnished, or performed including
133 30 water, sewer, gas, and electric utility services for
133 31 use in the zone upon which sales or use tax has been
133 32 paid prior to the project completion, and shall file
133 33 the forms with the primary business or supporting
133 34 business before final settlement is made.
133 35 b. The primary business or a supporting business
133 36 shall, not more than six months after project
133 37 completion, make application to the department for any
133 38 refund of the amount of the sales and use taxes paid
133 39 pursuant to chapter 422 or 423 upon any goods, wares,
133 40 or merchandise, or services rendered, furnished, or
133 41 performed, including water, sewer, gas, and electric
133 42 utility services. The application shall be made in
133 43 the manner and upon forms to be provided by the
133 44 department, and the department shall audit the claim
133 45 and, if approved, issue a warrant to the primary
133 46 business or supporting business in the amount of the
133 47 sales or use tax which has been paid to the state of
133 48 Iowa under a contract. A claim filed by the primary
133 49 business or a supporting business in accordance with
133 50 this subsection shall not be denied by reason of a
134 1 limitation provision set forth in chapter 421, 422, or
134 2 423.
134 3 c. A contractor or subcontractor who willfully
134 4 makes a false report of tax paid under the provisions
134 5 of this subsection is guilty of a simple misdemeanor
134 6 and in addition is liable for the payment of the tax
134 7 and any applicable penalty and interest.
134 8 Sec. 164. Section 28A.17, unnumbered paragraph 1,
134 9 Code 2003, is amended to read as follows:
134 10 If an authority is established as provided in
134 11 section 28A.6 and after approval of a referendum by a
134 12 simple majority of votes cast in each metropolitan
134 13 area in favor of the sales and services tax, the
134 14 governing board of a county in this state within a
134 15 metropolitan area which is part of the authority shall
134 16 impose, at the request of the authority, a local sales
134 17 and services tax at the rate of one=fourth of one
134 18 percent on gross receipts the sales price taxed by
134 19 this state under chapter 422, division IV section
134 20 423.2, within the metropolitan area located in this
134 21 state. The referendum shall be called by resolution
134 22 of the board and shall be held as provided in section
134 23 28A.6 to the extent applicable. The ballot
134 24 proposition shall contain a statement as to the
134 25 specific purpose or purposes for which the revenues
134 26 shall be expended and the date of expiration of the
134 27 tax. The local sales and services tax shall be
134 28 imposed on the same basis, with the same exceptions,
134 29 and following the same administrative procedures as
134 30 provided for a county under sections 422B.8 and
134 31 422B.9. The amount of the sale, for the purposes of
134 32 determining the amount of the local sales and services
134 33 tax under this section, does not include the amount of
134 34 any local sales and services tax imposed under
134 35 sections 422B.8 and 422B.9.
134 36 Sec. 165. Section 29C.15, Code 2003, is amended to
134 37 read as follows:
134 38 29C.15 TAX=EXEMPT PURCHASES.
134 39 All purchases under the provisions of this chapter
134 40 shall be exempt from the taxes imposed by sections
134 41 422.43 423.2 and 423.2 423.5.
134 42 Sec. 166. Section 99E.10, subsection 1, paragraph
134 43 b, Code 2003, is amended to read as follows:
134 44 b. An amount equal to the product of the state
134 45 sales tax rate under section 422.43 423.2 multiplied
134 46 by the gross sales price of each ticket or share sold
134 47 shall be deducted as the sales tax on the sale of that
134 48 ticket or share, remitted to the treasurer of state
134 49 and deposited into the state general fund.
134 50 Sec. 167. Section 123.187, subsection 2, Code
135 1 2003, is amended to read as follows:
135 2 2. A winery licensed or permitted pursuant to laws
135 3 regulating alcoholic beverages in a state which
135 4 affords this state an equal reciprocal shipping
135 5 privilege may ship into this state by private common
135 6 carrier, to a person twenty=one years of age or older,
135 7 not more than eighteen liters of wine per month, for
135 8 consumption or use by the person. Such wine shall not
135 9 be resold. Shipment of wine pursuant to this
135 10 subsection is not subject to sales tax under section
135 11 422.43 423.2, use tax under section 423.2 423.5, or
135 12 the wine gallonage tax under section 123.183, and does
135 13 not require a refund value for beverage container
135 14 control purposes under chapter 455C.
135 15 Sec. 168. Section 262.54, Code 2003, is amended to
135 16 read as follows:
135 17 262.54 COMPUTER SALES.
135 18 Sales, by an institution under the control of the
135 19 board of regents, of computer equipment, computer
135 20 software, and computer supplies to students and
135 21 faculty at the institution are retail sales under
135 22 chapter 422, division IV 423.
135 23 Sec. 169. Section 303.9, subsection 2, Code 2003,
135 24 is amended to read as follows:
135 25 2. The department may sell mementos and other
135 26 items relating to Iowa history and historic sites on
135 27 the premises of property under control of the
135 28 department and at the state capitol. Notwithstanding
135 29 sections 18.12 and 18.16, the department may directly
135 30 and independently enter into rental and lease
135 31 agreements with private vendors for the purpose of
135 32 selling mementos. All fees and income produced by the
135 33 sales and rental or lease agreements shall be credited
135 34 to the account of the department. The mementos and
135 35 other items sold by the department or vendors under
135 36 this subsection are exempt from section 18.6. The
135 37 department is not a retailer under chapter 422 and the
135 38 sale of such mementos and other items by the
135 39 department is not a retail sale under chapter 422 and
135 40 is exempt from the sales tax.
135 41 Sec. 170. Section 312.1, subsection 4, Code 2003,
135 42 is amended to read as follows:
135 43 4. To the extent provided in section 423.24
135 44 423.43, subsection 1, paragraph "b", from revenue
135 45 derived from the use tax, under chapter 423 on motor
135 46 vehicles, trailers, and motor vehicle accessories and
135 47 equipment.
135 48 Sec. 171. Section 312.2, subsections 14 and 16,
135 49 Code 2003, are amended to read as follows:
135 50 14. The treasurer of state, before making the
136 1 allotments provided for in this section, shall credit
136 2 monthly from the road use tax fund to the general fund
136 3 of the state from revenue credited to the road use tax
136 4 fund under section 423.24 423.43, subsection 1,
136 5 paragraph "b", an amount equal to one=twentieth of
136 6 eighty percent of the revenue from the operation of
136 7 section 423.7 423.26.
136 8 There is appropriated from the general fund of the
136 9 state for each fiscal year to the state department of
136 10 transportation the amount of revenues credited to the
136 11 general fund of the state during the fiscal year under
136 12 this subsection to be used for purposes of public
136 13 transit assistance under chapter 324A.
136 14 16. The treasurer of state, before making the
136 15 allotments provided for in this section, shall credit
136 16 monthly from the road use tax fund to the motorcycle
136 17 rider education fund established in section 321.180B,
136 18 an amount equal to one dollar per year of license
136 19 validity for each issued or renewed driver's license
136 20 which is valid for the operation of a motorcycle.
136 21 Moneys credited to the motorcycle rider education fund
136 22 under this subsection shall be taken from moneys
136 23 credited to the road use tax fund under section 423.24
136 24 423.43.
136 25 Sec. 172. Section 321.20, subsection 5, Code 2003,
136 26 is amended to read as follows:
136 27 5. The amount of tax to be paid under section
136 28 423.7 423.26.
136 29 Sec. 173. Section 321.24, subsections 1 and 3,
136 30 Code 2003, are amended to read as follows:
136 31 1. Upon receipt of the application for title and
136 32 payment of the required fees for a motor vehicle,
136 33 trailer, or semitrailer, the county treasurer or the
136 34 department shall, when satisfied as to the
136 35 application's genuineness and regularity, and, in the
136 36 case of a mobile home or manufactured home, that taxes
136 37 are not owing under chapter 435, issue a certificate
136 38 of title and, except for a mobile home or manufactured
136 39 home, a registration receipt, and shall file the
136 40 application, the manufacturer's or importer's
136 41 certificate, the certificate of title, or other
136 42 evidence of ownership, as prescribed by the
136 43 department. The registration receipt shall be
136 44 delivered to the owner and shall contain upon its face
136 45 the date issued, the name and address of the owner,
136 46 the registration number assigned to the vehicle, the
136 47 amount of the fee paid, the amount of tax paid
136 48 pursuant to section 423.7 423.26, the type of fuel
136 49 used, and a description of the vehicle as determined
136 50 by the department, and upon the reverse side a form
137 1 for notice of transfer of the vehicle. The name and
137 2 address of any lessee of the vehicle shall not be
137 3 printed on the registration receipt or certificate of
137 4 title. Up to three owners may be listed on the
137 5 registration receipt and certificate of title.
137 6 3. The certificate of title shall contain upon its
137 7 face the identical information required upon the face
137 8 of the registration receipt. In addition, the
137 9 certificate of title shall contain a statement of the
137 10 owner's title, the title number assigned to the owner
137 11 or owners of the vehicle, the amount of tax paid
137 12 pursuant to section 423.7 423.26, the name and address
137 13 of the previous owner, and a statement of all security
137 14 interests and encumbrances as shown in the
137 15 application, upon the vehicle described, including the
137 16 nature of the security interest, date of notation, and
137 17 name and address of the secured party.
137 18 Sec. 174. Section 321.34, subsection 7, paragraph
137 19 c, Code 2003, is amended to read as follows:
137 20 c. The fees for a collegiate registration plate
137 21 are as follows:
137 22 (1) A registration fee of twenty=five dollars.
137 23 (2) A special collegiate registration fee of
137 24 twenty=five dollars.
137 25 These fees are in addition to the regular annual
137 26 registration fee. The fees collected by the director
137 27 under this subsection shall be paid monthly to the
137 28 treasurer of state and credited by the treasurer of
137 29 state to the road use tax fund. Notwithstanding
137 30 section 423.24 423.43 and prior to the revenues being
137 31 credited to the road use tax fund under section 423.24
137 32 423.43, subsection 1, paragraph "b", the treasurer of
137 33 state shall credit monthly from those revenues
137 34 respectively, to Iowa state university of science and
137 35 technology, the university of northern Iowa, and the
137 36 state university of Iowa, the amount of the special
137 37 collegiate registration fees collected in the previous
137 38 month for collegiate registration plates designed for
137 39 the university. The moneys credited are appropriated
137 40 to the respective universities to be used for
137 41 scholarships for students attending the universities.
137 42 Sec. 175. Section 321.34, subsection 11, paragraph
137 43 c, Code 2003, is amended to read as follows:
137 44 c. The special natural resources fee for letter
137 45 number designated natural resources plates is thirty=
137 46 five dollars. The fee for personalized natural
137 47 resources plates is forty=five dollars which shall be
137 48 paid in addition to the special natural resources fee
137 49 of thirty=five dollars. The fees collected by the
137 50 director under this subsection shall be paid monthly
138 1 to the treasurer of state and credited to the road use
138 2 tax fund. Notwithstanding section 423.24 423.43, and
138 3 prior to the crediting of revenues to the road use tax
138 4 fund under section 423.24 423.43, subsection 1,
138 5 paragraph "b", the treasurer of state shall credit
138 6 monthly from those revenues to the Iowa resources
138 7 enhancement and protection fund created pursuant to
138 8 section 455A.18, the amount of the special natural
138 9 resources fees collected in the previous month for the
138 10 natural resources plates.
138 11 Sec. 176. Section 321.34, subsection 11A,
138 12 paragraph c, Code 2003, is amended to read as follows:
138 13 c. The special fee for letter number designated
138 14 love our kids plates is thirty=five dollars. The fee
138 15 for personalized love our kids plates is twenty=five
138 16 dollars, which shall be paid in addition to the
138 17 special love our kids fee of thirty=five dollars. The
138 18 fees collected by the director under this subsection
138 19 shall be paid monthly to the treasurer of state and
138 20 credited to the road use tax fund. Notwithstanding
138 21 section 423.24 423.43, and prior to the crediting of
138 22 revenues to the road use tax fund under section 423.24
138 23 423.43, subsection 1, paragraph "b", the treasurer of
138 24 state shall transfer monthly from those revenues to
138 25 the Iowa department of public health the amount of the
138 26 special fees collected in the previous month for the
138 27 love our kids plates. Notwithstanding section 8.33,
138 28 moneys transferred under this subsection shall not
138 29 revert to the general fund of the state.
138 30 Sec. 177. Section 321.34, subsection 11B,
138 31 paragraph c, Code 2003, is amended to read as follows:
138 32 c. The special fee for letter number designated
138 33 motorcycle rider education plates is thirty=five
138 34 dollars. The fee for personalized motorcycle rider
138 35 education plates is twenty=five dollars, which shall
138 36 be paid in addition to the special motorcycle rider
138 37 education fee of thirty=five dollars. The fees
138 38 collected by the director under this subsection shall
138 39 be paid monthly to the treasurer of state and credited
138 40 to the road use tax fund. Notwithstanding section
138 41 423.24 423.43, and prior to the crediting of revenues
138 42 to the road use tax fund under section 423.24 423.43,
138 43 subsection 1, paragraph "b", the treasurer of state
138 44 shall transfer monthly from those revenues to the
138 45 department for use in accordance with section
138 46 321.180B, subsection 6, the amount of the special fees
138 47 collected in the previous month for the motorcycle
138 48 rider education plates.
138 49 Sec. 178. Section 321.34, subsection 13, paragraph
138 50 d, Code 2003, is amended to read as follows:
139 1 d. A state agency may submit a request to the
139 2 department recommending a special registration plate.
139 3 The alternate fee for letter number designated plates
139 4 is thirty=five dollars with a ten dollar annual
139 5 special renewal fee. The fee for personalized plates
139 6 is twenty=five dollars which is in addition to the
139 7 alternative fee of thirty=five dollars with an annual
139 8 personalized plate renewal fee of five dollars which
139 9 is in addition to the special renewal fee of ten
139 10 dollars. The alternate fees are in addition to the
139 11 regular annual registration fee. The alternate fees
139 12 collected under this paragraph shall be paid monthly
139 13 to the treasurer of state and credited to the road use
139 14 tax fund. Notwithstanding section 423.24 423.43, and
139 15 prior to the crediting of the revenues to the road use
139 16 tax fund under section 423.24 423.43, subsection 1,
139 17 paragraph "b", the treasurer of state shall credit
139 18 monthly the amount of the alternate fees collected in
139 19 the previous month to the state agency that
139 20 recommended the special registration plate.
139 21 Sec. 179. Section 321.34, subsection 21, paragraph
139 22 c, Code 2003, is amended to read as follows:
139 23 c. The special fees collected by the director
139 24 under this subsection shall be paid monthly to the
139 25 treasurer of state and credited to the road use tax
139 26 fund. Notwithstanding section 423.24 423.43, and
139 27 prior to the crediting of revenues to the road use tax
139 28 fund under section 423.24 423.43, subsection 1,
139 29 paragraph "b", the treasurer of state shall credit
139 30 monthly to the Iowa heritage fund created under
139 31 section 303.9A the amount of the special fees
139 32 collected in the previous month for the Iowa heritage
139 33 plates.
139 34 Sec. 180. Section 321.34, subsection 22, paragraph
139 35 b, Code 2003, is amended to read as follows:
139 36 b. The special school transportation fee for
139 37 letter number designated education plates is thirty=
139 38 five dollars. The fee for personalized education
139 39 plates is twenty=five dollars, which shall be paid in
139 40 addition to the special school transportation fee of
139 41 thirty=five dollars. The annual special school
139 42 transportation fee is ten dollars for letter number
139 43 designated registration plates and is fifteen dollars
139 44 for personalized registration plates which shall be
139 45 paid in addition to the regular annual registration
139 46 fee. The fees collected by the director under this
139 47 subsection shall be paid monthly to the treasurer of
139 48 state and credited to the road use tax fund.
139 49 Notwithstanding section 423.24 423.43, and prior to
139 50 the crediting of revenues to the road use tax fund
140 1 under section 423.24 423.43, subsection 1, paragraph
140 2 "b", the treasurer of state shall transfer monthly
140 3 from those revenues to the school budget review
140 4 committee in accordance with section 257.31,
140 5 subsection 17, the amount of the special school
140 6 transportation fees collected in the previous month
140 7 for the education plates.
140 8 Sec. 181. Section 321F.9, Code 2003, is amended to
140 9 read as follows:
140 10 321F.9 OPTION TO PURCHASE == DEALER'S LICENSE.
140 11 Any person engaged in business in this state shall
140 12 not enter into any agreement for the use of a motor
140 13 vehicle under the terms of which such that person
140 14 grants to another an option to purchase such the motor
140 15 vehicle without first having obtained a motor vehicle
140 16 dealer's license under the provisions of chapter 322,
140 17 and all sales of motor vehicles under such options
140 18 shall be subject to sales or use taxes imposed under
140 19 the provisions of chapters 422 and chapter 423.
140 20 Nothing contained in this section shall require such
140 21 person to have a place of business as provided by
140 22 section 322.6, subsection 8.
140 23 Sec. 182. Section 327I.26, Code 2003, is amended
140 24 to read as follows:
140 25 327I.26 APPROPRIATION TO AUTHORITY.
140 26 Notwithstanding section 423.24 423.43, and prior to
140 27 the application of section 423.24 423.43, subsection
140 28 1, paragraph "b", there shall be deposited into the
140 29 general fund of the state and is appropriated to the
140 30 authority from eighty percent of the revenues derived
140 31 from the operation of section 423.7 423.26, the
140 32 amounts certified by the authority under section
140 33 327I.25. However, the total amount deposited into the
140 34 general fund and appropriated to the Iowa railway
140 35 finance authority under this section shall not exceed
140 36 two million dollars annually. Moneys appropriated to
140 37 the Iowa railway finance authority under this section
140 38 are appropriated only for the payment of principal and
140 39 interest on obligations or the payment of leases
140 40 guaranteed by the authority as provided under section
140 41 327I.25.
140 42 Sec. 183. Section 328.26, unnumbered paragraph 2,
140 43 Code 2003, is amended to read as follows:
140 44 When an aircraft is registered to a person for the
140 45 first time the fee submitted to the department shall
140 46 include the tax imposed by section 422.43 423.2 or
140 47 section 423.2 423.5 or evidence of the exemption of
140 48 the aircraft from the tax imposed under section 422.43
140 49 423.2 or 423.2 423.5.
140 50 Sec. 184. Section 331.557, subsection 3, Code
141 1 2003, is amended to read as follows:
141 2 3. Collect the use tax on vehicles subject to
141 3 registration as provided in sections 423.6, 423.7, and
141 4 423.7A 423.14, 423.26, and 423.27.
141 5 Sec. 185. Section 357A.15, unnumbered paragraph 2,
141 6 Code 2003, is amended to read as follows:
141 7 A rural water district organized under chapter 504A
141 8 shall receive a refund of sales or use taxes upon
141 9 submitting an application to the department of revenue
141 10 and finance for such the refund of taxes imposed upon
141 11 the gross receipts sales price of all sales of
141 12 building materials, supplies, or equipment sold to a
141 13 contractor or used in the fulfillment of a written
141 14 contract for the construction of facilities for such
141 15 the rural water district to the same extent as a rural
141 16 water district organized under this chapter may obtain
141 17 a refund under section 422.45 423.4, subsection 7 1.
141 18 Sec. 186. Section 421.10, Code 2003, is amended to
141 19 read as follows:
141 20 421.10 APPEAL PERIOD == APPLICABILITY.
141 21 The appeal period for revision of assessment of
141 22 tax, interest, and penalties set out under section
141 23 422.28, 422.54 423.37, 437A.9, 437A.22, 452A.64,
141 24 453A.29, or 453A.46 applies to appeals to notices from
141 25 the department denying changes in filing methods,
141 26 denying refund claims, and denying portions of refund
141 27 claims for the tax covered by that section, and
141 28 notices of any department action directed to a
141 29 specific taxpayer, other than licensing, which
141 30 involves a calculation.
141 31 Sec. 187. Section 421.17, subsection 22B, Code
141 32 2003, is amended to read as follows:
141 33 22B. Enter To enter into agreements or compacts
141 34 with remote sellers, retailers, or third=party
141 35 providers for the voluntary collection of Iowa sales
141 36 or use taxes attributable to sales into Iowa and to
141 37 enter. The director has the authority to enter into
141 38 and perform all duties required of the office of
141 39 director by multistate agreements or compacts that
141 40 provide for the voluntary collection of sales and use
141 41 taxes, including joint audits with other states or
141 42 audits on behalf of other states. The agreements or
141 43 compacts shall generally conform to the provisions of
141 44 Iowa sales and use tax statutes. All fees for
141 45 services, reimbursements, remuneration, incentives,
141 46 and costs incurred by the department associated with
141 47 these agreements or compacts may be paid or reimbursed
141 48 from the additional revenue generated. An amount is
141 49 appropriated from amounts generated to pay or
141 50 reimburse all costs associated with this subsection.
142 1 Persons entering into an agreement or compact with the
142 2 department pursuant to this subsection are subject to
142 3 the requirements and penalties of the confidentiality
142 4 laws of this state regarding tax information.
142 5 Notwithstanding any other provisions of law, the
142 6 contract, agreement, or compact shall provide for the
142 7 registration, collection, report, and verification of
142 8 amounts subject to this subsection.
142 9 Sec. 188. Section 421.17, subsection 29, paragraph
142 10 j, Code 2003, is amended to read as follows:
142 11 j. The department's existing right to credit
142 12 against tax due or to become due under section 422.73
142 13 or 423.47 is not to be impaired by a right granted to
142 14 or a duty imposed upon the department or other state
142 15 agency by this subsection. This subsection is not
142 16 intended to impose upon the department any additional
142 17 requirement of notice, hearing, or appeal concerning
142 18 the right to credit against tax due under section
142 19 422.73 or 423.47.
142 20 Sec. 189. Section 421.17, subsection 34, paragraph
142 21 i, Code 2003, is amended to read as follows:
142 22 i. The director may distribute to credit reporting
142 23 entities and for publication the names, addresses, and
142 24 amounts of indebtedness owed to or being collected by
142 25 the state if the indebtedness is subject to the
142 26 centralized debt collection procedure established in
142 27 this subsection. The director shall adopt rules to
142 28 administer this paragraph, and the rules shall provide
142 29 guidelines by which the director shall determine which
142 30 names, addresses, and amounts of indebtedness may be
142 31 distributed for publication. The director may
142 32 distribute information for publication pursuant to
142 33 this paragraph, notwithstanding sections 422.20,
142 34 422.72, and 423.23 423.42, or any other provision of
142 35 state law to the contrary pertaining to
142 36 confidentiality of information.
142 37 Sec. 190. Section 421.26, Code 2003, is amended to
142 38 read as follows:
142 39 421.26 PERSONAL LIABILITY FOR TAX DUE.
142 40 If a licensee or other person under section
142 41 452A.65, a retailer or purchaser under chapter 422A or
142 42 422B, or section 422.52 423.31 or 423.33, or a
142 43 retailer or purchaser under section 423.13 423.32 or a
142 44 user under section 423.14 423.34 fails to pay a tax
142 45 under those sections when due, an officer of a
142 46 corporation or association, notwithstanding sections
142 47 490A.601 and 490A.602, a member or manager of a
142 48 limited liability company, or a partner of a
142 49 partnership, having control or supervision of or the
142 50 authority for remitting the tax payments and having a
143 1 substantial legal or equitable interest in the
143 2 ownership of the corporation, association, limited
143 3 liability company, or partnership, who has
143 4 intentionally failed to pay the tax is personally
143 5 liable for the payment of the tax, interest, and
143 6 penalty due and unpaid. However, this section shall
143 7 not apply to taxes on accounts receivable. The
143 8 dissolution of a corporation, association, limited
143 9 liability company, or partnership shall not discharge
143 10 a person's liability for failure to remit the tax due.
143 11 Sec. 191. Section 421.28, Code 2003, is amended to
143 12 read as follows:
143 13 421.28 EXCEPTIONS TO SUCCESSOR LIABILITY.
143 14 The immediate successor to a licensee's or
143 15 retailer's business or stock of goods under chapter
143 16 422A or 422B, or section 422.52, 423.13, 423.14,
143 17 423.33 or 452A.65, is not personally liable for the
143 18 amount of delinquent tax, interest, or penalty due and
143 19 unpaid if the immediate successor shows that the
143 20 purchase of the business or stock of goods was made in
143 21 good faith that no delinquent tax, interest, or
143 22 penalty was due and unpaid. For purposes of this
143 23 section the immediate successor shows good faith by
143 24 evidence that the department had provided the
143 25 immediate successor with a certified statement that no
143 26 delinquent tax, interest, or penalty is unpaid, or
143 27 that the immediate successor had taken in good faith a
143 28 certified statement from the licensee, retailer, or
143 29 seller that no delinquent tax, interest, or penalty is
143 30 unpaid. When requested to do so by a person with whom
143 31 the licensee or retailer is negotiating the sale of
143 32 the business or stock of goods, the director of
143 33 revenue and finance shall, upon being satisfied that
143 34 such a situation exists, inform that person as to the
143 35 amount of unpaid delinquent tax, interest, or penalty
143 36 due by the licensee or the retailer. The giving of
143 37 the information under this circumstance is not a
143 38 violation of section 422.20, 422.72, or 452A.63.
143 39 Sec. 192. Section 421B.11, unnumbered paragraph 3,
143 40 Code 2003, is amended to read as follows:
143 41 Judicial review of the actions of the director may
143 42 be sought in accordance with the terms of the Iowa
143 43 administrative procedure Act, and section 422.55
143 44 423.38.
143 45 Sec. 193. Section 422.7, subsection 21, paragraph
143 46 a, subparagraph (1), unnumbered paragraph 1, Code
143 47 2003, is amended to read as follows:
143 48 Net capital gain from the sale of real property
143 49 used in a business, in which the taxpayer materially
143 50 participated for ten years, as defined in section
144 1 469(h) of the Internal Revenue Code, and which has
144 2 been held for a minimum of ten years, or from the sale
144 3 of a business, as defined in section 422.42 423.1, in
144 4 which the taxpayer was employed or in which the
144 5 taxpayer materially participated for ten years, as
144 6 defined in section 469(h) of the Internal Revenue
144 7 Code, and which has been held for a minimum of ten
144 8 years. The sale of a business means the sale of all
144 9 or substantially all of the tangible personal property
144 10 or service of the business.
144 11 Sec. 194. Section 422.73, subsection 1, Code 2003,
144 12 is amended by striking the subsection.
144 13 Sec. 195. Section 422A.1, unnumbered paragraphs 1,
144 14 3, 7, and 8, Code 2003, are amended to read as
144 15 follows:
144 16 A city or county may impose by ordinance of the
144 17 city council or by resolution of the board of
144 18 supervisors a hotel and motel tax, at a rate not to
144 19 exceed seven percent, which shall be imposed in
144 20 increments of one or more full percentage points upon
144 21 the gross receipts sales price from the renting of
144 22 sleeping rooms, apartments, or sleeping quarters in a
144 23 hotel, motel, inn, public lodging house, rooming
144 24 house, manufactured or mobile home which is tangible
144 25 personal property, or tourist court, or in any place
144 26 where sleeping accommodations are furnished to
144 27 transient guests for rent, whether with or without
144 28 meals; except the gross receipts sales price from the
144 29 renting of sleeping rooms in dormitories and in
144 30 memorial unions at all universities and colleges
144 31 located in the state of Iowa and the guests of a
144 32 religious institution if the property is exempt under
144 33 section 427.1, subsection 8, and the purpose of
144 34 renting is to provide a place for a religious retreat
144 35 or function and not a place for transient guests
144 36 generally. The tax when imposed by a city shall apply
144 37 only within the corporate boundaries of that city and
144 38 when imposed by a county shall apply only outside
144 39 incorporated areas within that county. "Renting" and
144 40 "rent" include any kind of direct or indirect charge
144 41 for such sleeping rooms, apartments, or sleeping
144 42 quarters, or their use. However, the tax does not
144 43 apply to the gross receipts sales price from the
144 44 renting of a sleeping room, apartment, or sleeping
144 45 quarters while rented by the same person for a period
144 46 of more than thirty=one consecutive days.
144 47 A local hotel and motel tax shall be imposed on
144 48 January 1, April 1, July 1, or October 1, following
144 49 the notification of the director of revenue and
144 50 finance. Once imposed, the tax shall remain in effect
145 1 at the rate imposed for a minimum of one year. A
145 2 local hotel and motel tax shall terminate only on
145 3 March 31, June 30, September 30, or December 31. At
145 4 least forty=five sixty days prior to the tax being
145 5 effective or prior to a revision in the tax rate, or
145 6 prior to the repeal of the tax, a city or county shall
145 7 provide notice by mail of such action to the director
145 8 of revenue and finance.
145 9 No tax permit other than the state sales tax permit
145 10 required under section 422.53 423.36 may be required
145 11 by local authorities.
145 12 The tax levied shall be in addition to any state
145 13 sales tax imposed under section 422.43 423.2. Section
145 14 422.25, subsection 4, sections 422.30, 422.48 to
145 15 422.52, 422.54 to 422.58, 422.67, and 422.68, section
145 16 422.69, subsection 1, and sections 422.70 to 422.75,
145 17 section 423.14, subsection 1, and sections 423.23,
145 18 423.24, 423.25, 423.31, 423.33, 423.35, 423.37 to
145 19 423.42, and 423.47, consistent with the provisions of
145 20 this chapter, apply with respect to the taxes
145 21 authorized under this chapter, in the same manner and
145 22 with the same effect as if the hotel and motel taxes
145 23 were retail sales taxes within the meaning of those
145 24 statutes. Notwithstanding this paragraph, the
145 25 director shall provide for quarterly filing of returns
145 26 as prescribed in section 422.51 and for other than
145 27 quarterly filing of returns both as prescribed in
145 28 section 422.51, subsection 2 423.31. The director may
145 29 require all persons, as defined in section 422.42
145 30 423.1, who are engaged in the business of deriving
145 31 gross receipts any sales price subject to tax under
145 32 this chapter, to register with the department.
145 33 Sec. 196. Section 422B.8, Code 2003, is amended to
145 34 read as follows:
145 35 422B.8 LOCAL SALES AND SERVICES TAX.
145 36 A local sales and services tax at the rate of not
145 37 more than one percent may be imposed by a county on
145 38 the gross receipts sales price taxed by the state
145 39 under chapter 422 423, division IV subchapter II. A
145 40 local sales and services tax shall be imposed on the
145 41 same basis as the state sales and services tax or in
145 42 the case of the use of natural gas, natural gas
145 43 service, electricity, or electric service on the same
145 44 basis as the state use tax and shall not be imposed on
145 45 the sale of any property or on any service not taxed
145 46 by the state, except the tax shall not be imposed on
145 47 the gross receipts sales price from the sale of motor
145 48 fuel or special fuel as defined in chapter 452A which
145 49 is consumed for highway use or in watercraft or
145 50 aircraft if the fuel tax is paid on the transaction
146 1 and a refund has not or will not be allowed, on the
146 2 gross receipts sales price from the rental of rooms,
146 3 apartments, or sleeping quarters which are taxed under
146 4 chapter 422A during the period the hotel and motel tax
146 5 is imposed, on the gross receipts sales price from the
146 6 sale of equipment by the state department of
146 7 transportation, on the gross receipts sales price from
146 8 the sale of self=propelled building equipment, pile
146 9 drivers, motorized scaffolding, or attachments
146 10 customarily drawn or attached to self=propelled
146 11 building equipment, pile drivers, and motorized
146 12 scaffolding, including auxiliary attachments which
146 13 improve the performance, safety, operation, or
146 14 efficiency of the equipment and replacement parts and
146 15 are directly and primarily used by contractors,
146 16 subcontractors, and builders for new construction,
146 17 reconstruction, alterations, expansion, or remodeling
146 18 of real property or structures, and on the gross
146 19 receipts sales price from the sale of a lottery ticket
146 20 or share in a lottery game conducted pursuant to
146 21 chapter 99E and except the tax shall not be imposed on
146 22 the gross receipts sales price from the sale or use of
146 23 natural gas, natural gas service, electricity, or
146 24 electric service in a city or county where the gross
146 25 receipts sales price from the sale of natural gas or
146 26 electric energy are subject to a franchise fee or user
146 27 fee during the period the franchise or user fee is
146 28 imposed. A local sales and services tax is applicable
146 29 to transactions within those incorporated and
146 30 unincorporated areas of the county where it is imposed
146 31 and shall be collected by all persons required to
146 32 collect state gross receipts sales taxes. However, a
146 33 person required to collect state retail sales tax
146 34 under chapter 422 423, division IV subchapter V or VI,
146 35 is not required to collect local sales and services
146 36 tax on transactions delivered within the area where
146 37 the local sales and services tax is imposed unless the
146 38 person has physical presence in that taxing area. All
146 39 cities contiguous to each other shall be treated as
146 40 part of one incorporated area and the tax would be
146 41 imposed in each of those contiguous cities only if the
146 42 majority of those voting in the total area covered by
146 43 the contiguous cities favor its imposition.
146 44 The amount of the sale, for purposes of determining
146 45 the amount of the local sales and services tax, does
146 46 not include the amount of any state gross receipts
146 47 taxes sales tax.
146 48 A tax permit other than the state sales tax permit
146 49 required under section 422.53 or 423.10 423.36 shall
146 50 not be required by local authorities.
147 1 If a local sales and services tax is imposed by a
147 2 county pursuant to this chapter, a local excise tax at
147 3 the same rate shall be imposed by the county on the
147 4 purchase price of natural gas, natural gas service,
147 5 electricity, or electric service subject to tax under
147 6 chapter 423, subchapter III, and not exempted from tax
147 7 by any provision of chapter 423, subchapter III. The
147 8 local excise tax is applicable only to the use of
147 9 natural gas, natural gas service, electricity, or
147 10 electric service within those incorporated and
147 11 unincorporated areas of the county where it is imposed
147 12 and, except as otherwise provided in this chapter,
147 13 shall be collected and administered in the same manner
147 14 as the local sales and services tax. For purposes of
147 15 this chapter, "local sales and services tax" shall
147 16 also include the local excise tax.
147 17 Sec. 197. Section 422B.9, subsections 1 and 2,
147 18 Code 2003, are amended to read as follows:
147 19 1. a. A local sales and services tax shall be
147 20 imposed either January 1 or July 1 following the
147 21 notification of the director of revenue and finance
147 22 but not sooner than ninety days following the
147 23 favorable election and not sooner than sixty days
147 24 following notice to sellers, as defined in section
147 25 423.1. However, a jurisdiction which has voted to
147 26 continue imposition of the tax may impose that tax
147 27 without repeal of the prior tax.
147 28 b. A local sales and services tax shall be
147 29 repealed only on June 30 or December 31 but not sooner
147 30 than ninety days following the favorable election if
147 31 one is held. However, a local sales and services tax
147 32 shall not be repealed before the tax has been in
147 33 effect for one year. At least forty days before the
147 34 imposition or repeal of the tax, a county shall
147 35 provide notice of the action by certified mail to the
147 36 director of revenue and finance.
147 37 c. The imposition of or a rate change for a local
147 38 sales and service tax shall not be applied to
147 39 purchases from a printed catalog wherein a purchaser
147 40 computes the local tax based on rates published in the
147 41 catalog unless a minimum of one hundred twenty days'
147 42 notice of the imposition or rate change has been given
147 43 to the seller from the catalog and the first day of a
147 44 calendar quarter has occurred on or after the one
147 45 hundred twentieth day.
147 46 c. d. If a local sales and services tax has been
147 47 imposed prior to April 1, 2000, and at the time of the
147 48 election a date for repeal was specified on the
147 49 ballot, the local sales and services tax may be
147 50 repealed on that date, notwithstanding paragraph "b".
148 1 2. a. The director of revenue and finance shall
148 2 administer a local sales and services tax as nearly as
148 3 possible in conjunction with the administration of
148 4 state gross receipts sales tax laws. The director
148 5 shall provide appropriate forms or provide on the
148 6 regular state tax forms for reporting local sales and
148 7 services tax liability.
148 8 b. The ordinance of a county board of supervisors
148 9 imposing a local sales and services tax shall adopt by
148 10 reference the applicable provisions of the appropriate
148 11 sections of chapter 422, division IV, and chapter 423.
148 12 All powers and requirements of the director to
148 13 administer the state gross receipts sales tax law and
148 14 use tax law are applicable to the administration of a
148 15 local sales and services tax law and the local excise
148 16 tax, including but not limited to, the provisions of
148 17 section 422.25, subsection 4, sections 422.30, 422.48
148 18 to 422.52, 422.54 to 422.58, 422.67, and 422.68,
148 19 section 422.69, subsection 1, sections 422.70 to
148 20 422.75, 423.6, subsections 2 to 4, and sections 423.11
148 21 to 423.18, and 423.21 section 423.14, subsection 1 and
148 22 subsection 2, paragraphs "b" through "e", and sections
148 23 423.15, 423.23, 423.24, 423.25, 423.31 to 423.35,
148 24 423.37 to 423.42, 423.46, and 423.47. Local officials
148 25 shall confer with the director of revenue and finance
148 26 for assistance in drafting the ordinance imposing a
148 27 local sales and services tax. A certified copy of the
148 28 ordinance shall be filed with the director as soon as
148 29 possible after passage.
148 30 c. Frequency of deposits and quarterly reports of
148 31 a local sales and services tax with the department of
148 32 revenue and finance are governed by the tax provisions
148 33 in section 422.52 423.31. Local tax collections shall
148 34 not be included in computation of the total tax to
148 35 determine frequency of filing under section 422.52
148 36 423.31.
148 37 d. The director shall apply a boundary change of a
148 38 county or city imposing or collecting the local sales
148 39 and service tax to the imposition or collection of
148 40 that tax only on the first day of a calendar quarter
148 41 which occurs sixty days or more after the director has
148 42 given notice of the boundary change to sellers.
148 43 Sec. 198. Section 422C.2, subsections 4 and 6,
148 44 Code 2003, are amended to read as follows:
148 45 4. "Person" means person as defined in section
148 46 422.42 423.1.
148 47 6. "Rental price" means the consideration for
148 48 renting an automobile valued in money, and means the
148 49 same as "gross taxable services" "sales price" as
148 50 defined in section 422.42 423.1.
149 1 Sec. 199. Section 422C.3, Code 2003, is amended to
149 2 read as follows:
149 3 422C.3 TAX ON RENTAL OF AUTOMOBILES.
149 4 1. A tax of five percent is imposed upon the
149 5 rental price of an automobile if the rental
149 6 transaction is subject to the sales and services tax
149 7 under chapter 422 423, division IV subchapter II, or
149 8 the use tax under chapter 423, subchapter III. The
149 9 tax shall not be imposed on any rental transaction not
149 10 taxable under the state sales and services tax, as
149 11 provided in section 422.45 423.3, or the state use
149 12 tax, as provided in section 423.4 423.6, on automobile
149 13 rental receipts.
149 14 2. The lessor shall collect the tax by adding the
149 15 tax to the rental price of the automobile.
149 16 3. The tax, when collected, shall be stated as a
149 17 distinct item separate and apart from the rental price
149 18 of the automobile and the sales and services tax
149 19 imposed under chapter 422 423, division IV subchapter
149 20 II, or the use tax imposed under chapter 423,
149 21 subchapter III.
149 22 Sec. 200. Section 422C.4, Code 2003, is amended to
149 23 read as follows:
149 24 422C.4 ADMINISTRATION AND ENFORCEMENT.
149 25 All powers and requirements of the director of
149 26 revenue and finance to administer the state gross
149 27 receipts sales tax law under chapter 422, division IV,
149 28 423 are applicable to the administration of the tax
149 29 imposed under section 422C.3, including but not
149 30 limited to section 422.25, subsection 4, sections
149 31 422.30, 422.48 through 422.52, 422.54 through 422.58,
149 32 422.67, and 422.68, section 422.69, subsection 1, and
149 33 sections 422.70 through 422.75, section 423.14,
149 34 subsection 1, and sections 423.15, 423.23, 423.24,
149 35 423.25, 423.31, 423.33, 423.35 and 423.37 through
149 36 423.42, 423.45, 423.46, and 423.47. However, as an
149 37 exception to the powers specified in section 422.52,
149 38 subsection 1 423.31, the director shall only require
149 39 the filing of quarterly reports.
149 40 Sec. 201. Section 422E.1, subsection 1, is amended
149 41 to read as follows:
149 42 1. A local sales and services tax for school
149 43 infrastructure purposes may be imposed by a county on
149 44 behalf of school districts as provided in this
149 45 chapter.
149 46 If a local sales and services tax for school
149 47 infrastructure is imposed by a county pursuant to this
149 48 chapter, a local excise tax for school infrastructure
149 49 at the same rate shall be imposed by the county on the
149 50 purchase price of natural gas, natural gas service,
150 1 electricity, or electric service subject to tax under
150 2 chapter 423, subchapter III, and not exempted from tax
150 3 by any provision of chapter 423, subchapter III. The
150 4 local excise tax for school infrastructure is
150 5 applicable only to the use of natural gas, natural gas
150 6 service, electricity, or electric service within those
150 7 incorporated and unincorporated areas of the county
150 8 where it is imposed and, except as otherwise provided
150 9 in this chapter, shall be collected and administered
150 10 in the same manner as the local sales and services tax
150 11 for school infrastructure. For purposes of this
150 12 chapter, "local sales and services tax for school
150 13 infrastructure" shall also include the local excise
150 14 tax for school infrastructure.
150 15 Sec. 202. Section 422E.3, subsections 1, 2, and 3,
150 16 Code 2003, are amended to read as follows:
150 17 1. If a majority of those voting on the question
150 18 of imposition of a local sales and services tax for
150 19 school infrastructure purposes favors imposition of
150 20 the tax, the tax shall be imposed by the county board
150 21 of supervisors within the county pursuant to section
150 22 422E.2, at the rate specified for a ten=year duration
150 23 on the gross receipts sales price taxed by the state
150 24 under chapter 422 423, division IV subchapter II.
150 25 2. The tax shall be imposed on the same basis as
150 26 the state sales and services tax or in the case of the
150 27 use of natural gas, natural gas service, electricity,
150 28 or electric service on the same basis as the state use
150 29 tax and shall not be imposed on the sale of any
150 30 property or on any service not taxed by the state,
150 31 except the tax shall not be imposed on the gross
150 32 receipts sales price from the sale of motor fuel or
150 33 special fuel as defined in chapter 452A which is
150 34 consumed for highway use or in watercraft or aircraft
150 35 if the fuel tax is paid on the transaction and a
150 36 refund has not or will not be allowed, on the gross
150 37 receipts sales price from the rental of rooms,
150 38 apartments, or sleeping quarters which are taxed under
150 39 chapter 422A during the period the hotel and motel tax
150 40 is imposed, on the gross receipts sales price from the
150 41 sale of equipment by the state department of
150 42 transportation, on the gross receipts sales price from
150 43 the sale of self=propelled building equipment, pile
150 44 drivers, motorized scaffolding, or attachments
150 45 customarily drawn or attached to self=propelled
150 46 building equipment, pile drivers, and motorized
150 47 scaffolding, including auxiliary attachments which
150 48 improve the performance, safety, operation, or
150 49 efficiency of the equipment, and replacement parts and
150 50 are directly and primarily used by contractors,
151 1 subcontractors, and builders for new construction,
151 2 reconstruction, alterations, expansion, or remodeling
151 3 of real property or structures, and on the gross
151 4 receipts sales price from the sale of a lottery ticket
151 5 or share in a lottery game conducted pursuant to
151 6 chapter 99E and except the tax shall not be imposed on
151 7 the gross receipts sales price from the sale or use of
151 8 natural gas, natural gas service, electricity, or
151 9 electric service in a city or county where the gross
151 10 receipts sales price from the sale of natural gas or
151 11 electric energy are subject to a franchise fee or user
151 12 fee during the period the franchise or user fee is
151 13 imposed.
151 14 3. The tax is applicable to transactions within
151 15 the county where it is imposed and shall be collected
151 16 by all persons required to collect state gross
151 17 receipts sales or local excise taxes. However, a
151 18 person required to collect state retail sales tax
151 19 under chapter 422, division IV, 423 is not required to
151 20 collect local sales and services tax on transactions
151 21 delivered within the area where the local sales and
151 22 services tax is imposed unless the person has physical
151 23 presence in that taxing area. The amount of the sale,
151 24 for purposes of determining the amount of the tax,
151 25 does not include the amount of any state gross
151 26 receipts sales taxes or excise taxes or other local
151 27 option sales or excise taxes. A tax permit other than
151 28 the state tax permit required under section 422.53 or
151 29 423.10 423.36 shall not be required by local
151 30 authorities.
151 31 Sec. 203. Section 425.30, Code 2003, is amended to
151 32 read as follows:
151 33 425.30 NOTICES.
151 34 Section 422.57 423.39, subsection 1, shall apply to
151 35 all notices under this division.
151 36 Sec. 204. Section 425.31, Code 2003, is amended to
151 37 read as follows:
151 38 425.31 APPEALS.
151 39 Any person aggrieved by an act or decision of the
151 40 director of revenue and finance or the department of
151 41 revenue and finance under this division shall have the
151 42 same rights of appeal and review as provided in
151 43 sections 421.1 and 422.55 423.38 and the rules of the
151 44 department of revenue and finance.
151 45 Sec. 205. Section 452A.66, unnumbered paragraph 1,
151 46 Code 2003, is amended to read as follows:
151 47 The appropriate state agency shall administer the
151 48 taxes imposed by this chapter in the same manner as
151 49 and subject to section 422.25, subsection 4 and
151 50 section 422.52, subsection 3 423.35.
152 1 Sec. 206. Section 455B.455, Code 2003, is amended
152 2 to read as follows:
152 3 455B.455 SURCHARGE IMPOSED.
152 4 A land burial surcharge tax of two percent is
152 5 imposed on the fee for land burial of a hazardous
152 6 waste. The owner of the land burial facility shall
152 7 remit the tax collected to the director of revenue and
152 8 finance after consultation with the director according
152 9 to rules that the director shall adopt. The director
152 10 shall forward a copy of the site license to the
152 11 director of revenue and finance which shall be the
152 12 appropriate license for the collection of the land
152 13 burial surcharge tax and shall be subject to
152 14 suspension or revocation if the site license holder
152 15 fails to collect or remit the tax collected under this
152 16 section. The provisions of sections section 422.25,
152 17 subsection 4, sections 422.30, 422.48 to 422.52,
152 18 422.54 to 422.58, 422.67, and 422.68, section 422.69,
152 19 subsection 1, and sections 422.70 to 422.75, section
152 20 423.14, subsection 1, and sections 423.23, 423.24,
152 21 423.25, 423.31, 423.33, 423.35, 423.37 to 423.42, and
152 22 423.47, consistent with the provisions of this part 6
152 23 of division IV, shall apply with respect to the taxes
152 24 authorized under this part, in the same manner and
152 25 with the same effect as if the land burial surcharge
152 26 tax were retail sales taxes within the meaning of
152 27 those statutes. Notwithstanding the provisions of
152 28 this paragraph section, the director shall provide for
152 29 only quarterly filing of returns as prescribed in
152 30 section 422.51 423.31. Taxes collected by the
152 31 director of revenue and finance under this section
152 32 shall be deposited in the general fund of the state.
152 33 Sec. 207. Section 455G.3, subsection 1, Code 2003,
152 34 is amended to read as follows:
152 35 1. The Iowa comprehensive petroleum underground
152 36 storage tank fund is created as a separate fund in the
152 37 state treasury, and any funds remaining in the fund at
152 38 the end of each fiscal year shall not revert to the
152 39 general fund but shall remain in the Iowa
152 40 comprehensive petroleum underground storage tank fund.
152 41 Interest or other income earned by the fund shall be
152 42 deposited in the fund. The fund shall include moneys
152 43 credited to the fund under this section, section
152 44 423.24 423.43, subsection 1, paragraph "a", and
152 45 sections 455G.8, 455G.9, and 455G.11, and other funds
152 46 which by law may be credited to the fund. The moneys
152 47 in the fund are appropriated to and for the purposes
152 48 of the board as provided in this chapter. Amounts in
152 49 the fund shall not be subject to appropriation for any
152 50 other purpose by the general assembly, but shall be
153 1 used only for the purposes set forth in this chapter.
153 2 The treasurer of state shall act as custodian of the
153 3 fund and disburse amounts contained in it as directed
153 4 by the board including automatic disbursements of
153 5 funds as received pursuant to the terms of bond
153 6 indentures and documents and security provisions to
153 7 trustees and custodians. The treasurer of state is
153 8 authorized to invest the funds deposited in the fund
153 9 at the direction of the board and subject to any
153 10 limitations contained in any applicable bond
153 11 proceedings. The income from such investment shall be
153 12 credited to and deposited in the fund. The fund shall
153 13 be administered by the board which shall make
153 14 expenditures from the fund consistent with the
153 15 purposes of the programs set out in this chapter
153 16 without further appropriation. The fund may be
153 17 divided into different accounts with different
153 18 depositories as determined by the board and to fulfill
153 19 the purposes of this chapter.
153 20 Sec. 208. Section 455G.6, subsection 4, Code 2003,
153 21 is amended to read as follows:
153 22 4. Grant a mortgage, lien, pledge, assignment, or
153 23 other encumbrance on one or more improvements,
153 24 revenues, asset of right, accounts, or funds
153 25 established or received in connection with the fund,
153 26 including revenues derived from the use tax under
153 27 section 423.24 423.43, subsection 1, paragraph "a",
153 28 and deposited in the fund or an account of the fund.
153 29 Sec. 209. Section 455G.8, subsection 2, Code 2003,
153 30 is amended to read as follows:
153 31 2. USE TAX. The revenues derived from the use tax
153 32 imposed under chapter 423, subchapter III. The
153 33 proceeds of the use tax under section 423.24 423.43,
153 34 subsection 1, paragraph "a", shall be allocated,
153 35 consistent with this chapter, among the fund's
153 36 accounts, for debt service and other fund expenses,
153 37 according to the fund budget, resolution, trust
153 38 agreement, or other instrument prepared or entered
153 39 into by the board or authority under direction of the
153 40 board.
153 41 Sec. 210. Section 455G.9, subsection 2, Code 2003,
153 42 is amended to read as follows:
153 43 2. REMEDIAL ACCOUNT FUNDING. The remedial account
153 44 shall be funded by that portion of the proceeds of the
153 45 use tax imposed under chapter 423, subchapter III, and
153 46 other moneys and revenues budgeted to the remedial
153 47 account by the board.
153 48 Sec. 211. Section 2.67, Code 2003, is repealed.
153 49 Sec. 212. CODE EDITOR DIRECTIVE. The Code editor
153 50 is directed to transfer Code chapter 423A to Code
154 1 chapter 421A and to transfer Code chapters 422A, 422B,
154 2 422C, and 422E to Code chapters 423A, 423B, 423C, and
154 3 423E, respectively. The Code editor is directed to
154 4 correct Code references as required due to the changes
154 5 made in this Act.
154 6 SALES TAX ADVISORY COUNCIL
154 7 Sec. 213. IOWA STREAMLINED SALES TAX ADVISORY
154 8 COUNCIL.
154 9 1. An Iowa streamlined sales tax advisory council
154 10 is created. The advisory council shall review, study,
154 11 and submit recommendations to the Iowa streamlined
154 12 sales and use tax delegation regarding the proposed
154 13 streamlined sales and use tax agreement formalized by
154 14 the project's implementing sales on November 12, 2002,
154 15 the proposed language conforming Iowa's sales and use
154 16 tax to the national agreement, and the following
154 17 issues:
154 18 a. Uniform definitions proposed in the current
154 19 streamlined sales and use tax agreement and future
154 20 proposals.
154 21 b. Effects upon taxability of items newly defined
154 22 in Iowa.
154 23 c. Impacts upon business as a result of the
154 24 streamlined sales and use tax.
154 25 d. Technology implementation issues.
154 26 e. Any other issues that are brought before the
154 27 streamlined sales and use tax implementing state or
154 28 the streamlined sales and use tax governing board.
154 29 2. The department shall provide administrative
154 30 support to the Iowa streamlined sales tax advisory
154 31 council. The advisory council shall be representative
154 32 of Iowa's business community and economy when
154 33 reviewing and recommending solutions to streamlined
154 34 sales and use tax issues. The advisory council shall
154 35 provide the general assembly and the governor with
154 36 final recommendations made to the Iowa streamlined
154 37 sales and use tax delegation upon the conclusion of
154 38 each calendar year.
154 39 3. The director of revenue, in consultation with
154 40 the Iowa taxpayers association and the Iowa
154 41 association of business and industry, shall appoint
154 42 members to the Iowa streamlined sales tax advisory
154 43 council, which shall consist of the following members:
154 44 a. One member from the department of revenue and
154 45 finance.
154 46 b. Three members representing small Iowa
154 47 businesses, at least one of whom must be a retailer,
154 48 and at least one of whom shall be a supplier.
154 49 c. Three members representing medium Iowa
154 50 businesses, at least one of whom shall be a retailer,
155 1 and at least one of whom shall be a supplier.
155 2 d. Three members representing large Iowa
155 3 businesses, at least one of whom shall be a retailer,
155 4 and at least one of whom shall be a supplier.
155 5 e. One member representing taxpayers as a whole.
155 6 f. One member representing the retail community as
155 7 a whole.
155 8 g. Any other member the director of revenue and
155 9 finance deems appropriate.
155 10 Sec. 214. EFFECTIVE DATE. Except for the section
155 11 creating the Iowa streamlined sales tax advisory
155 12 council, this division of this Act takes effect July
155 13 1, 2004.
155 14 DIVISION XVI
155 15 WIND ENERGY PRODUCTION TAX CREDIT
155 16 Sec. 215. NEW SECTION. 422.11H WIND ENERGY
155 17 PRODUCTION TAX CREDIT.
155 18 The taxes imposed under this division, less the
155 19 credits allowed under sections 422.12 and 422.12B,
155 20 shall be reduced by a wind energy production tax
155 21 credit allowed under chapter 476B.
155 22 Sec. 216. Section 422.33, Code 2003, is amended by
155 23 adding the following new subsection:
155 24 NEW SUBSECTION. 14. The taxes imposed under this
155 25 division shall be reduced by a wind energy production
155 26 tax credit allowed under chapter 476B.
155 27 Sec. 217. Section 422.60, Code 2003, is amended by
155 28 adding the following new subsection:
155 29 NEW SUBSECTION. 7. The taxes imposed under this
155 30 division shall be reduced by a wind energy production
155 31 tax credit allowed under chapter 476B.
155 32 Sec. 218. NEW SECTION. 432.12D WIND ENERGY
155 33 PRODUCTION TAX CREDIT.
155 34 The taxes imposed under this chapter shall be
155 35 reduced by a wind energy production tax credit allowed
155 36 under chapter 476B.
155 37 Sec. 219. NEW SECTION. 476B.1 DEFINITIONS.
155 38 For purposes of this chapter, unless the context
155 39 otherwise requires:
155 40 1. "Board" means the utilities board within the
155 41 utilities division of the department of commerce.
155 42 2. "Department" means the department of revenue
155 43 and finance.
155 44 3. "Qualified electricity" means electricity
155 45 produced from wind at a qualified facility.
155 46 4. "Qualified facility" means an electrical
155 47 production facility that meets all of the following:
155 48 a. Produces electricity from wind.
155 49 b. Is located in Iowa.
155 50 c. Was originally placed in service on or after
156 1 July 1, 2004, but before July 1, 2007.
156 2 Sec. 220. NEW SECTION. 476B.2 GENERAL RULE.
156 3 The owner of a qualified facility shall, for each
156 4 kilowatt=hour of qualified electricity that the owner
156 5 sells during the ten=year period beginning on the date
156 6 the qualified facility was originally placed in
156 7 service, be allowed a wind energy production tax
156 8 credit to the extent provided in this chapter against
156 9 the tax imposed in chapter 422, divisions II, III, and
156 10 V, and chapter 432.
156 11 Sec. 221. NEW SECTION. 476B.3 CREDIT AMOUNT.
156 12 The wind energy production tax credit allowed under
156 13 this chapter equals the product of one cent multiplied
156 14 by the number of kilowatt=hours of qualified
156 15 electricity sold by the owner during the taxable year.
156 16 Sec. 222. NEW SECTION. 476B.4 LIMITATIONS.
156 17 1. a. The wind energy production tax credit shall
156 18 not be allowed for any kilowatt=hour of electricity
156 19 produced on wind energy conversion property for which
156 20 the owner has claimed or otherwise received for that
156 21 property the benefit of special valuation under
156 22 section 427B.26 or section 441.21, subsection 8, or
156 23 the exemption from retail sales tax under section
156 24 422.45, subsection 48.
156 25 b. The disallowance of the tax credit pursuant to
156 26 paragraph "a" does not apply to an owner of a
156 27 qualified facility that owns, directly or indirectly,
156 28 in the aggregate, a total annual turbine nameplate
156 29 capacity of all such property of less than one
156 30 megawatt.
156 31 2. The wind energy production tax credit shall not
156 32 be allowed for any kilowatt=hour of electricity that
156 33 is sold to a related person. For purpose of this
156 34 subsection, persons shall be treated as related to
156 35 each other if such persons would be treated as a
156 36 single employer under the regulations prescribed under
156 37 section 52(b) of the Internal Revenue Code. In the
156 38 case of a corporation that is a member of an
156 39 affiliated group of corporations filing a consolidated
156 40 return, such corporation shall be treated as selling
156 41 electricity to an unrelated person if such electricity
156 42 is sold to such a person by another member of such
156 43 group.
156 44 Sec. 223. NEW SECTION. 476B.5 APPLICATION FOR
156 45 TAX CREDIT CERTIFICATES.
156 46 1. To receive the wind energy production tax
156 47 credit, an owner of the qualified facility must submit
156 48 an application for a tax credit certificate to the
156 49 board not later than thirty days after the close of
156 50 its taxable year. The owner's application must
157 1 contain, but need not be limited to, all of the
157 2 following information: the owner's name, tax
157 3 identification number, and address, the number of
157 4 kilowatt=hours of qualified electricity sold by the
157 5 owner during the preceding taxable year, the address
157 6 of the qualified facility at which the qualified
157 7 electricity was produced, a certified statement of the
157 8 number, if any, of kilowatt=hours of electricity
157 9 produced on wind energy conversion property for which
157 10 the owner has claimed or otherwise received for that
157 11 property the benefit of special valuation under
157 12 section 427B.26 or section 441.21, subsection 8, or
157 13 the exemption from the retail sales tax under section
157 14 422.45, subsection 48, and the denomination that each
157 15 tax credit certificate is to carry.
157 16 1A. In addition to the information required in
157 17 subsection 1, the application shall specify the amount
157 18 of property taxes imposed by the school district,
157 19 city, and county on the wind energy conversion
157 20 property payable during the owner's taxable year. The
157 21 amount of property taxes imposed by the school
157 22 district, city, and county on such property that is
157 23 payable during the owner's taxable year shall be
157 24 computed as follows:
157 25 a. If the fiscal year for which such property
157 26 taxes are imposed ends during the taxable year, divide
157 27 the property taxes imposed by the school district,
157 28 city, and county payable in that fiscal year by twelve
157 29 and multiply the resulting quotient by the number of
157 30 months of the fiscal year ending in the taxable year.
157 31 b. If the fiscal year for which such property
157 32 taxes are imposed begins, but does not end, during the
157 33 taxable year, divide the property taxes imposed by the
157 34 school district, city, and county payable in that
157 35 fiscal year by twelve and multiply the resulting
157 36 quotient by the number of months of the fiscal year
157 37 ending in the taxable year.
157 38 c. Add the amounts determined pursuant to
157 39 paragraphs "a" and "b".
157 40 The application shall also contain the name of the
157 41 school district, city or cities, and county and the
157 42 portion of the total amount of paragraph "c" that was
157 43 imposed by each jurisdiction.
157 44 2. The board shall, in conjunction with the
157 45 department, prescribe appropriate forms and
157 46 instructions to enable owners to claim the tax credit
157 47 allowed under this chapter. If the board prescribes
157 48 these forms and instructions, an owner's application
157 49 for a tax credit certificate shall not be valid unless
157 50 made on and in accordance with these forms and
158 1 instructions.
158 2 3. Within thirty days of the end of the owner's
158 3 eleventh and twelfth taxable years with respect to the
158 4 ownership of the qualified facility for which the
158 5 owner had previously received a tax credit, the owner
158 6 shall file with the board an "extra two year
158 7 information form". The form shall contain all
158 8 property tax information in subsection 1A and other
158 9 information deemed appropriate by the board or
158 10 treasurer of state for the owner's eleventh or twelfth
158 11 taxable year, as applicable.
158 12 Sec. 224. NEW SECTION. 476B.6 ISSUANCE OF TAX
158 13 CREDIT CERTIFICATES.
158 14 1. If the owner meets the criteria for eligibility
158 15 for the wind energy production tax credit, the board
158 16 shall determine the validity of the application and if
158 17 valid, shall issue one or more tax credit certificates
158 18 to the owner not later than thirty days after the
158 19 application is submitted to the board. Each tax
158 20 credit certificate must contain the owner's name,
158 21 address, and tax identification number, amount of tax
158 22 credits, and the expiration date of the tax credit
158 23 certificate, which shall be seven years from its date
158 24 of issuance and any other information required by the
158 25 department. Once issued by the board, the tax credit
158 26 certificate shall be binding on the board and the
158 27 department and shall not be modified, terminated, or
158 28 rescinded. Upon the issuance of the tax credit
158 29 certificate, the board shall forward to the treasurer
158 30 of state a copy of the information provided pursuant
158 31 to section 476B.5, subsection 1A, containing the
158 32 amount of property taxes payable during the owner's
158 33 taxable year which were levied on wind energy
158 34 conversion property for which the tax credit
158 35 certificates were issued. The board shall also
158 36 forward to the treasurer of state information provided
158 37 pursuant to section 476B.5, subsection 3, containing
158 38 the amount of property taxes payable during the
158 39 eleventh or twelfth taxable year.
158 40 2. If the tax credit application is filed by a
158 41 partnership, limited liability company, S corporation,
158 42 estate, trust, or other reporting entity all of the
158 43 income of which is taxed directly to its equity
158 44 holders or beneficiaries, the tax credit certificate
158 45 may, at the election of the owner, be issued directly
158 46 to equity holders or beneficiaries of the owner in
158 47 proportion to their pro rata share of the income of
158 48 such entity. If the owner elects to have the tax
158 49 credit certificate issued directly to its equity
158 50 holders or beneficiaries, the owner must, in the
159 1 application made under section 476B.5, identify its
159 2 equity holders or beneficiaries, and the amount of
159 3 such entity's income that is allocable to each equity
159 4 holder or beneficiary.
159 5 Sec. 225. NEW SECTION. 476B.7 TRANSFER OF TAX
159 6 CREDIT CERTIFICATES.
159 7 Wind energy production tax credit certificates
159 8 issued under this chapter may be transferred to any
159 9 person or entity. Within thirty days of transfer, the
159 10 transferee must submit the transferred tax credit
159 11 certificate to the board along with a statement
159 12 containing the transferee's name, tax identification
159 13 number, and address, and the denomination that each
159 14 replacement tax credit certificate is to carry and any
159 15 other information required by the department. Within
159 16 thirty days of receiving the transferred tax credit
159 17 certificate and the transferee's statement, the board
159 18 shall issue one or more replacement tax credit
159 19 certificates to the transferee. Each replacement
159 20 certificate must contain the information required
159 21 under section 476B.6 and must have the same expiration
159 22 date that appeared in the transferred tax credit
159 23 certificate. Tax credit certificate amounts of less
159 24 than the minimum amount established by rule of the
159 25 board shall not be transferable. A tax credit shall
159 26 not be claimed by a transferee under this chapter
159 27 until a replacement tax credit certificate identifying
159 28 the transferee as the proper holder has been issued.
159 29 The tax credit shall only be transferred once. The
159 30 transferee may use the amount of the tax credit
159 31 transferred against the taxes imposed under chapter
159 32 422, divisions II, III, and V, and chapter 432 for any
159 33 tax year the original transferor could have claimed
159 34 the tax credit. Any consideration received for the
159 35 transfer of the tax credit shall not be included as
159 36 income under chapter 422, divisions II, III, and V.
159 37 Any consideration paid for the transfer of the tax
159 38 credit shall not be deducted from income under chapter
159 39 422, divisions II, III, and V.
159 40 Sec. 226. NEW SECTION. 476B.8 USE OF TAX CREDIT
159 41 CERTIFICATES.
159 42 To claim a wind energy production tax credit under
159 43 this chapter, a taxpayer must attach one or more tax
159 44 credit certificates to the taxpayer's tax return. A
159 45 tax credit certificate shall not be used or attached
159 46 to a return filed prior to July 1, 2005. The tax
159 47 credit certificate or certificates attached to the
159 48 taxpayer's tax return shall be issued in the
159 49 taxpayer's name, expire on or after the last day of
159 50 the taxable year for which the taxpayer is claiming
160 1 the tax credit, and show a tax credit amount equal to
160 2 or greater than the tax credit claimed on the
160 3 taxpayer's tax return. Any tax credit in excess of
160 4 the taxpayer's tax liability for the taxable year may
160 5 be credited to the taxpayer's tax liability for the
160 6 following seven taxable years or until depleted,
160 7 whichever is the earlier.
160 8 Sec. 227. NEW SECTION. 476B.9 REGISTRATION OF
160 9 TAX CREDIT CERTIFICATES.
160 10 The board shall, in conjunction with the
160 11 department, develop a system for the registration of
160 12 the wind energy production tax credit certificates
160 13 issued or transferred under this chapter and a system
160 14 that permits verification that any tax credit claimed
160 15 on a tax return is valid and that transfers of the tax
160 16 credit certificates are made in accordance with the
160 17 requirements of this chapter. The tax credit
160 18 certificates issued under this chapter shall not be
160 19 classified as a security pursuant to chapter 502.
160 20 Sec. 228. NEW SECTION. 476B.10 PAYMENT TO STATE
160 21 OF PROPERTY TAXES COLLECTED.
160 22 1. a. By March 15 and September 15 of each year,
160 23 the treasurer of state shall notify each school
160 24 district, city, and county of the amount of property
160 25 taxes imposed by the jurisdiction on wind energy
160 26 conversion property for which tax credit certificates
160 27 have been issued under this chapter. The amount of
160 28 property taxes contained on the notice to the school
160 29 district, city, or county shall equal the amounts
160 30 received by the treasurer of state from the board
160 31 since the treasurer of state last sent out notices
160 32 pursuant to this subsection. The sending of a notice
160 33 shall constitute a demand for the payment of an amount
160 34 equal to the property taxes imposed on the wind energy
160 35 conversion property as specified in the notice.
160 36 b. In addition to the amount of property taxes
160 37 referred to in paragraph "a", the treasurer of state
160 38 shall notify each school district, city, and county of
160 39 the property taxes imposed on wind energy conversion
160 40 property for the owner's eleventh or twelfth taxable
160 41 year as specified pursuant to section 476B.5,
160 42 subsection 3.
160 43 2. A school district, city, or county to which a
160 44 notice under subsection 1 is sent shall remit to the
160 45 treasurer of state the amount of property taxes
160 46 imposed in the wind energy conversion property
160 47 specified in the notice by the end of the third month
160 48 following the month in which the notice is sent.
160 49 Interest for late payment shall be assessed at the
160 50 rate specified in section 421.7 for each month,
161 1 counting a part of a month a whole month, after the
161 2 due date. Failure of the school district, city, or
161 3 county to receive the notice is not a defense to the
161 4 payment of the amount specified in the notice or for
161 5 any interest for late payment.
161 6 3. A school district, city, or county that remits
161 7 payments to the treasurer of state pursuant to
161 8 subsection 2 in a fiscal year may adjust its budget or
161 9 certified budget, notwithstanding any provision of
161 10 law, to compensate for such payments.
161 11 Sec. 229. EFFECTIVE AND APPLICABILITY DATES.
161 12 1. Except for subsection 2, this division of this
161 13 Act applies to tax years beginning on or after January
161 14 1, 2004.
161 15 2. The section of this division of this Act
161 16 enacting new Code section 476B.10, takes effect
161 17 January 1, 2005.
161 18 DIVISION XVII
161 19 EFFECTIVE DATE
161 20 Sec. 230. EFFECTIVE DATE. Unless otherwise
161 21 provided in this Act, this Act takes effect July 1,
161 22 2003.>
161 23 #2. Title page, by striking lines 1 through 15 and
161 24 inserting the following: <An Act relating to economic
161 25 development, financial, taxation, and regulatory
161 26 matters, making and revising appropriations, modifying
161 27 penalties, providing a fee, and including effective,
161 28 applicability, and retroactive applicability
161 29 provisions.>
161 30 HF 683.S
161 31 tm/cc/26
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