Senate Amendment to House File 625 H-1462 Amend House File 625, as passed by the House, as 1 follows: 2 1. Page 1, before line 1 by inserting: 3 < DIVISION I 4 SALES AND USE TAX 5 Section 1. Section 423.1, subsection 48, Code 2013, 6 is amended to read as follows: 7 48. a. “Retailer maintaining a place of business 8 in this state” or any like term includes any retailer 9 having or maintaining within this state, directly 10 or by a subsidiary, an office, distribution house, 11 sales house, warehouse, or other place of business, 12 or any representative operating within this state 13 under the authority of the retailer or its subsidiary, 14 irrespective of whether that place of business 15 or representative is located here permanently or 16 temporarily, or whether the retailer or subsidiary is 17 admitted to do business within this state pursuant to 18 chapter 490 . 19 b. (1) A retailer shall be presumed to be 20 maintaining a place of business in this state, as 21 defined in paragraph “a” , if any person that has 22 substantial nexus in this state, other than a person 23 acting in its capacity as a common carrier, does any 24 of the following: 25 (a) Sells a similar line of products as the 26 retailer and does so under the same or similar business 27 name. 28 (b) Maintains an office, distribution facility, 29 warehouse, storage place, or similar place of business 30 in this state to facilitate the delivery of property 31 or services sold by the retailer to the retailer’s 32 customers. 33 (c) Uses trademarks, service marks, or trade 34 names in this state that are the same or substantially 35 similar to those used by the retailer. 36 (d) Delivers, installs, assembles, or performs 37 maintenance services for the retailer’s customers. 38 (e) Facilitates the retailer’s delivery of 39 property to customers in this state by allowing the 40 retailer’s customers to take delivery of property sold 41 by the retailer at an office, distribution facility, 42 warehouse, storage place, or similar place of business 43 maintained by the person in this state. 44 (f) Conducts any other activities in this state 45 that are significantly associated with the retailer’s 46 ability to establish and maintain a market in this 47 state for the retailer’s sales. 48 (2) The presumption established in this paragraph 49 may be rebutted by a showing of proof that the 50 -1- HF625.2379.S (1) 85 jh 1/ 3 #1.

person’s activities in this state are not significantly 1 associated with the retailer’s ability to establish 2 or maintain a market in this state for the retailer’s 3 sales. 4 Sec. ___. NEW SECTION . 423.13A Administration —— 5 effectiveness of agreements with retailers. 6 1. Notwithstanding any provision of this chapter 7 to the contrary, any ruling, agreement, or contract, 8 whether written or oral, express or implied, entered 9 into after the effective date of this division of 10 this Act between a retailer and a state agency that 11 provides that a retailer is not required to collect 12 sales and use tax in this state despite the presence 13 in this state of a warehouse, distribution center, or 14 fulfillment center that is owned and operated by the 15 retailer or an affiliate of the retailer shall be null 16 and void unless such ruling, agreement, or contract is 17 approved, by resolution, by a majority vote of each 18 house of the general assembly. 19 2. For purposes of this section, “state agency” 20 means the executive branch, including any executive 21 department, commission, board, institution, division, 22 bureau, office, agency, or other entity of state 23 government. “State agency” does not mean the general 24 assembly, or the judicial branch as provided in section 25 602.1102. 26 Sec. ___. Section 423.36, Code 2013, is amended by 27 adding the following new subsection: 28 NEW SUBSECTION . 1A. a. Notwithstanding subsection 29 1, if any person will make taxable sales of tangible 30 personal property or furnish services to any state 31 agency, that person shall, prior to the sale, apply 32 for and receive a permit to collect sales or use tax 33 pursuant to this section. A state agency shall not 34 purchase tangible personal property or services from 35 any person unless that person has a valid, unexpired 36 permit issued pursuant to this section and is in 37 compliance with all other requirements in this chapter 38 imposed upon retailers, including but not limited to 39 the requirement to collect and remit sales and use tax 40 and file sales and use tax returns. 41 b. For purposes of this subsection, “state 42 agency” means any executive, judicial, or legislative 43 department, commission, board, institution, division, 44 bureau, office, agency, or other entity of state 45 government. 46 DIVISION ___ 47 SCHOOL TUITION ORGANIZATION TAX CREDIT > 48 2. Page 1, line 22, before < Act > by inserting 49 < division of this > 50 -2- HF625.2379.S (1) 85 jh 2/ 3

3. Page 1, line 24, before < Act > by inserting 1 < division of this > 2 4. Title page, by striking lines 1 through 3 and 3 inserting < An Act relating to revenue and taxation, 4 including retailers maintaining a place of business 5 in this state for purposes of sales and use taxes, 6 agreements relating to the collection of sales and use 7 taxes, sales of tangible personal property and services 8 to state agencies, modifying the school tuition 9 organization income > 10 5. Title page, line 4, by striking < credits > and 11 inserting < credit > 12 6. By renumbering as necessary. 13 -3- HF625.2379.S (1) 85 jh 3/ 3 #3. #4. #5.