Senate File 512 S-3331 Amend Senate File 512 as follows: 1 1. By striking everything after the enacting clause and 2 inserting: 3 < Section 1. Section 423.2, subsection 1, unnumbered 4 paragraph 1, Code 2017, is amended to read as follows: 5 There is imposed a tax of six and three-eighths percent upon 6 the sales price of all sales of tangible personal property, 7 consisting of goods, wares, or merchandise, sold at retail in 8 the state to consumers or users except as otherwise provided 9 in this subchapter . 10 Sec. 2. Section 423.2, subsections 2 and 3, Code 2017, are 11 amended to read as follows: 12 2. A tax of six and three-eighths percent is imposed upon 13 the sales price of the sale or furnishing of gas, electricity, 14 water, heat, pay television service, and communication service, 15 including the sales price from such sales by any municipal 16 corporation or joint water utility furnishing gas, electricity, 17 water, heat, pay television service, and communication service 18 to the public in its proprietary capacity, except as otherwise 19 provided in this subchapter , when sold at retail in the state 20 to consumers or users. 21 3. A tax of six and three-eighths percent is imposed upon 22 the sales price of all sales of tickets or admissions to places 23 of amusement, fairs, and athletic events except those of 24 elementary and secondary educational institutions. A tax of 25 six and three-eighths percent is imposed on the sales price of 26 an entry fee or like charge imposed solely for the privilege of 27 participating in an activity at a place of amusement, fair, or 28 athletic event unless the sales price of tickets or admissions 29 charges for observing the same activity are taxable under this 30 subchapter . A tax of six and three-eighths percent is imposed 31 upon that part of private club membership fees or charges paid 32 for the privilege of participating in any athletic sports 33 provided club members. 34 Sec. 3. Section 423.2, subsection 4, paragraph a, Code 2017, 35 -1- SF512.2369 (1) 87 mm/rj 1/ 4 #1.

is amended to read as follows: 1 a. A tax of six and three-eighths percent is imposed upon 2 the sales price derived from the operation of all forms of 3 amusement devices and games of skill, games of chance, raffles, 4 and bingo games as defined in chapter 99B , and card game 5 tournaments conducted under section 99B.27 , that are operated 6 or conducted within the state, the tax to be collected from 7 the operator in the same manner as for the collection of taxes 8 upon the sales price of tickets or admission as provided in 9 this section . Nothing in this subsection shall legalize any 10 games of skill or chance or slot-operated devices which are now 11 prohibited by law. 12 Sec. 4. Section 423.2, subsection 5, Code 2017, is amended 13 to read as follows: 14 5. There is imposed a tax of six and three-eighths percent 15 upon the sales price from the furnishing of services as defined 16 in section 423.1 . 17 Sec. 5. Section 423.2, subsection 7, paragraph a, 18 unnumbered paragraph 1, Code 2017, is amended to read as 19 follows: 20 A tax of six and three-eighths percent is imposed upon the 21 sales price from the sales, furnishing, or service of solid 22 waste collection and disposal service. 23 Sec. 6. Section 423.2, subsection 8, paragraph a, Code 2017, 24 is amended to read as follows: 25 a. A tax of six and three-eighths percent is imposed on 26 the sales price from sales of bundled transactions. For the 27 purposes of this subsection , a “bundled transaction” is the 28 retail sale of two or more distinct and identifiable products, 29 except real property and services to real property, which 30 are sold for one nonitemized price. A “bundled transaction” 31 does not include the sale of any products in which the sales 32 price varies, or is negotiable, based on the selection by the 33 purchaser of the products included in the transaction. 34 Sec. 7. Section 423.2, subsection 9, Code 2017, is amended 35 -2- SF512.2369 (1) 87 mm/rj 2/ 4

to read as follows: 1 9. A tax of six and three-eighths percent is imposed upon 2 the sales price from any mobile telecommunications service, 3 including all paging services, that this state is allowed 4 to tax pursuant to the provisions of the federal Mobile 5 Telecommunications Sourcing Act, Pub. L. No. 106-252, 4 U.S.C. 6 §116 et seq. For purposes of this subsection , taxes on mobile 7 telecommunications service, as defined under the federal Mobile 8 Telecommunications Sourcing Act that are deemed to be provided 9 by the customer’s home service provider, shall be paid to 10 the taxing jurisdiction whose territorial limits encompass 11 the customer’s place of primary use, regardless of where the 12 mobile telecommunications service originates, terminates, 13 or passes through and shall in all other respects be taxed 14 in conformity with the federal Mobile Telecommunications 15 Sourcing Act. All other provisions of the federal Mobile 16 Telecommunications Sourcing Act are adopted by the state of 17 Iowa and incorporated into this subsection by reference. With 18 respect to mobile telecommunications service under the federal 19 Mobile Telecommunications Sourcing Act, the director shall, if 20 requested, enter into agreements consistent with the provisions 21 of the federal Act. 22 Sec. 8. Section 423.2, subsection 11, paragraph b, 23 subparagraph (2), Code 2017, is amended to read as follows: 24 (2) Transfer from the remaining revenues the amounts 25 required under Article VII, section 10, of the Constitution 26 of the State of Iowa to the natural resources and outdoor 27 recreation trust fund created in section 461.31 , if applicable . 28 Sec. 9. Section 423.2, subsection 14, Code 2017, is amended 29 to read as follows: 30 14. The sales tax rate of six and three-eighths percent is 31 reduced to five and three-eighths percent on January 1, 2030. 32 Sec. 10. Section 423.5, subsection 1, unnumbered paragraph 33 1, Code 2017, is amended to read as follows: 34 Except as provided in paragraph “c” , an excise tax at the 35 -3- SF512.2369 (1) 87 mm/rj 3/ 4

rate of six and three-eighths percent of the purchase price or 1 installed purchase price is imposed on the following: 2 Sec. 11. Section 423.5, subsection 5, Code 2017, is amended 3 to read as follows: 4 5. The use tax rate of six and three-eighths percent is 5 reduced to five and three-eighths percent on January 1, 2030. 6 Sec. 12. Section 423.43, subsection 1, paragraph b, Code 7 2017, is amended to read as follows: 8 b. Subsequent to the deposit into the general fund of the 9 state and after the transfer of such pursuant to paragraph “a” , 10 the department shall do the following in the order prescribed: 11 (1) Transfer the revenues collected under chapter 423B , the 12 department shall transfer one-sixth . 13 (2) Transfer fifteen and six thousand eight hundred 14 sixty-three ten-thousandths percent of such remaining revenues 15 to the secure an advanced vision for education fund created in 16 section 423F.2 . This paragraph subparagraph (2) is repealed 17 December 31, 2029. 18 Sec. 13. PURPOSE. The purpose of this Act is to provide 19 for the implementation of Article VII, section 10, of the 20 Constitution of the State of Iowa by fully funding the natural 21 resources and outdoor recreation trust fund as created in 22 section 461.31, pursuant to Article VII, section 10, of the 23 Constitution of the State of Iowa. 24 Sec. 14. EFFECTIVE DATE. This Act takes effect on July 1, 25 2018. > 26 2. Title page, by striking lines 1 through 4 and inserting 27 < An Act relating to revenue and taxation by increasing the 28 sales and use tax rates, establishing transfers to the natural 29 resources and outdoor recreation trust fund, and including 30 effective date provisions. > 31 ______________________________ DAVID JOHNSON -4- SF512.2369 (1) 87 mm/rj 4/ 4 #2.