Senate File 2417 S-5314 Amend the amendment, S-5302, to Senate File 2417 as follows: 1 1. Page 82, after line 16 by inserting: 2 < Sec. ___. Section 423.2, subsection 1, unnumbered 3 paragraph 1, Code 2018, is amended to read as follows: 4 There is imposed a tax of six and one-half percent upon 5 the sales price of all sales of tangible personal property, 6 consisting of goods, wares, or merchandise, sold at retail in 7 the state to consumers or users except as otherwise provided in 8 this subchapter . > 9 2. Page 82, after line 20 by inserting: 10 < Sec. ___. Section 423.2, subsections 2 and 3, Code 2018, 11 are amended to read as follows: 12 2. A tax of six and one-half percent is imposed upon the 13 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 one-half percent is imposed upon the 22 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 one-half percent is imposed on the sales price of an 26 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 one-half percent is imposed upon 31 that part of private club membership fees or charges paid for 32 the privilege of participating in any athletic sports provided 33 club members. 34 Sec. ___. Section 423.2, subsection 4, paragraph a, Code 35 -1- S5302.5728 (2) 87 mm/jh 1/ 6 #1. #2.

2018, is amended to read as follows: 1 a. A tax of six and one-half 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. ___. Section 423.2, subsection 5, Code 2018, is amended 13 to read as follows: 14 5. There is imposed a tax of six and one-half percent upon 15 the sales price from the furnishing of services as defined in 16 section 423.1 . > 17 3. Page 86, after line 4 by inserting: 18 < Sec. ___. Section 423.2, subsection 7, paragraph a, 19 unnumbered paragraph 1, Code 2018, is amended to read as 20 follows: 21 A tax of six and one-half percent is imposed upon the sales 22 price from the sales, furnishing, or service of solid waste 23 collection and disposal service. 24 Sec. ___. Section 423.2, subsection 8, paragraph a, Code 25 2018, is amended to read as follows: 26 a. A tax of six and one-half percent is imposed on the sales 27 price from sales of bundled transactions. For the purposes of 28 this subsection , a “bundled transaction” is the retail sale of 29 two or more distinct and identifiable products, except real 30 property and services to real property, which are sold for one 31 nonitemized price. A “bundled transaction” does not include 32 the sale of any products in which the sales price varies, or 33 is negotiable, based on the selection by the purchaser of the 34 products included in the transaction. > 35 -2- S5302.5728 (2) 87 mm/jh 2/ 6 #3.

4. Page 87, after line 9 by inserting: 1 < Sec. ___. Section 423.2, subsection 9, Code 2018, is 2 amended to read as follows: 3 9. A tax of six and one-half percent is imposed upon 4 the sales price from any mobile telecommunications service, 5 including all paging services, that this state is allowed 6 to tax pursuant to the provisions of the federal Mobile 7 Telecommunications Sourcing Act, Pub. L. No. 106-252, 4 U.S.C. 8 §116 et seq. For purposes of this subsection , taxes on mobile 9 telecommunications service, as defined under the federal Mobile 10 Telecommunications Sourcing Act that are deemed to be provided 11 by the customer’s home service provider, shall be paid to 12 the taxing jurisdiction whose territorial limits encompass 13 the customer’s place of primary use, regardless of where the 14 mobile telecommunications service originates, terminates, 15 or passes through and shall in all other respects be taxed 16 in conformity with the federal Mobile Telecommunications 17 Sourcing Act. All other provisions of the federal Mobile 18 Telecommunications Sourcing Act are adopted by the state of 19 Iowa and incorporated into this subsection by reference. With 20 respect to mobile telecommunications service under the federal 21 Mobile Telecommunications Sourcing Act, the director shall, if 22 requested, enter into agreements consistent with the provisions 23 of the federal Act. > 24 5. Page 87, line 12, after < six > by inserting < and one-half > 25 6. Page 87, after line 27 by inserting: 26 < Sec. ___. Section 423.2, subsection 14, Code 2018, is 27 amended to read as follows: 28 14. The sales tax rate of six and one-half percent is 29 reduced to five and one-half percent on January 1, 2030. > 30 7. Page 88, line 18, by striking < 461.31, if applicable > and 31 inserting < 461.31 > 32 8. Page 88, after line 18 by inserting: 33 < 0c. Transfer two and four hundred eight ten-thousandths 34 percent of the remaining revenues to the mental health and 35 -3- S5302.5728 (2) 87 mm/jh 3/ 6 #4. #5. #6. #7. #8.

disability services sales tax supplement fund created in 1 section 423H.2. > 2 9. Page 98, after line 28 by inserting: 3 < Sec. ___. Section 423.5, subsection 1, unnumbered 4 paragraph 1, Code 2018, is amended to read as follows: 5 Except as provided in paragraph “c” , an excise tax at the 6 rate of six and one-half percent of the purchase price or 7 installed purchase price is imposed on the following: > 8 10. Page 100, after line 4 by inserting: 9 < Sec. ___. Section 423.5, subsection 5, Code 2018, is 10 amended to read as follows: 11 5. The use tax rate of six and one-half percent is reduced 12 to five and one-half percent on January 1, 2030. > 13 11. Page 121, after line 27 by inserting: 14 < Sec. ___. Section 423.43, subsection 1, paragraph b, Code 15 2018, is amended to read as follows: 16 b. Subsequent to the deposit into the general fund of the 17 state and after the transfer of such pursuant to paragraph “a” , 18 the department shall do the following in the order prescribed: 19 (1) Transfer the revenues collected under chapter 423B , the 20 department shall transfer one-sixth . 21 (2) Transfer fifteen and three thousand eight hundred 22 forty-six ten-thousandths percent of such remaining revenues 23 to the secure an advanced vision for education fund created in 24 section 423F.2 . This paragraph subparagraph (2) is repealed 25 December 31, 2029. 26 (3) Transfer six and eight thousand eight hundred 27 eighty-one ten-thousandths percent of the remaining revenues to 28 the natural resources and outdoor recreation trust fund created 29 in section 461.31. 30 (4) Transfer two and four thousand three hundred ninety 31 ten-thousandths percent of the remaining revenues to the mental 32 health and disability services sales tax supplement fund 33 created in section 423H.2 34 12. Page 125, after line 5 by inserting: 35 -4- S5302.5728 (2) 87 mm/jh 4/ 6 #9. #10. #11.

< Sec. ___. NEW SECTION . 423H.1 Mental health and disability 1 services sales tax supplement —— intent. 2 It is the intent of the general assembly that approximately 3 twenty-five percent of the increase in the state sales, 4 services, and use taxes under chapter 423, subchapters II and 5 III, from six percent to six and one-half percent on January 1, 6 2019, shall be used solely for purposes of providing revenues 7 to counties for the payment of mental health and disability 8 services provided under the regional service system. 9 Sec. ___. NEW SECTION . 423H.2 Fund —— remittances to 10 counties. 11 1. A mental health and disability services sales tax 12 supplement fund is created as a separate and distinct fund 13 in the state treasury under the control of the department of 14 revenue. Moneys in the fund include revenues credited to the 15 fund pursuant to this chapter, appropriations made to the fund, 16 and other moneys deposited in the fund. Any amounts disbursed 17 from the fund shall be deposited in each county’s mental health 18 and disabilities services fund under section 331.424A and 19 utilized by counties to provide mental health and disability 20 services and expand core services that are in addition to 21 the mental health and disability services required under the 22 county’s regional service system management plan approved 23 pursuant to section 331.393. 24 2. The moneys available in a fiscal year in the mental 25 health and disability services sales tax supplement fund shall 26 be distributed by the department of revenue to each county 27 beginning on or after January 1, 2019, in the proportion that 28 the county’s population bears to the total population. For 29 purposes of this subsection, “population” means the same as 30 defined in section 331.424A, subsection 1. 31 3. a. The director of revenue by August 15 of each fiscal 32 year shall send to each county an estimate of the amount of 33 tax moneys each county will receive for the year, and for each 34 month of the year. At the end of each month, the director may 35 -5- S5302.5728 (2) 87 mm/jh 5/ 6

revise the estimates for the year and remaining months. 1 b. The director shall remit ninety-five percent of the 2 estimated tax receipts for the county to the county on or 3 before August 31 of the fiscal year and on or before the last 4 day of each following month. 5 c. The director shall remit a final payment of the remainder 6 of tax moneys due for the fiscal year before November 10 of the 7 next fiscal year. If an overpayment has resulted during the 8 previous fiscal year, the November payment shall be adjusted to 9 reflect any overpayment. > 10 13. By renumbering as necessary. 11 ______________________________ DAVID JOHNSON -6- S5302.5728 (2) 87 mm/jh 6/ 6 #13.