House File 2583 H-8370 Amend House File 2583 as follows: 1 1. By striking everything after the enacting clause and 2 inserting: 3 < DIVISION I 4 SALES, USE, AND EXCISE TAX —— RETURNS DUE 5 Section 1. Section 9C.3, subsection 3, Code 2022, is amended 6 to read as follows: 7 3. The application shall state whether or not the applicant 8 has an Iowa retailers sales or use tax permit and if the 9 applicant has such permit, shall state the number of such 10 permit. 11 Sec. 2. Section 9C.5, Code 2022, is amended to read as 12 follows: 13 9C.5 Issuance of license. 14 Upon receiving an application for a transient merchant’s 15 license, the secretary of state shall investigate or cause to 16 be investigated, the reputation and character of the applicant. 17 If, upon making such investigation, the secretary of state is 18 satisfied that the statements and representations contained in 19 the application are true, and that the applicant is of good 20 reputation and character, and the holder of an Iowa retailer’s 21 sales or use tax permit, and if a foreign corporation, has 22 authority to do business in the state of Iowa, the secretary 23 shall issue to the applicant a license as a transient merchant 24 upon payment of the fee as herein prescribed for the period of 25 time requested in said application and for use at the location 26 and place where it is stated in said application the sale will 27 be held or the business conducted, both of which shall be set 28 out in said license. Such license shall be valid only for the 29 period of time and at the location and place described therein. 30 Sec. 3. Section 99G.30A, subsection 2, paragraph c, Code 31 2022, is amended to read as follows: 32 c. Frequency of deposits and quarterly monthly reports of 33 the monitor vending machine excise tax with the department of 34 revenue are governed by the tax provisions in section 423.31 . 35 -1- HF 2583.4355 (1) 89 (amending this HF 2583 to CONFORM to SF 2367) jm/jh 1/ 23 #1.

Monitor vending machine excise tax collections shall not be 1 included in computation of the total tax to determine frequency 2 of filing under section 423.31 . 3 Sec. 4. Section 321.105A, subsection 4, paragraph b, Code 4 2022, is amended to read as follows: 5 b. Section 422.25, subsection 4 , sections 422.30 , 422.67 , 6 and 422.68 , section 422.69, subsection 1 , sections 422.70 , 7 422.71 , 422.72 , 422.74 , and 422.75 , section 423.14, subsection 8 2 , and sections 423.23 , 423.24 , 423.25 , 423.32 , 423.33 , 423.35 , 9 423.37 through 423.42 , 423.45 , and 423.47 , consistent with the 10 provisions of this section , apply with respect to the fees 11 for new registration authorized under this section in the 12 same manner and with the same effect as if the fees for new 13 registration were retail use taxes within the meaning of those 14 statutes. 15 Sec. 5. Section 421.26, Code 2022, is amended to read as 16 follows: 17 421.26 Personal liability for tax due. 18 If a licensee or other person under section 452A.65 , a 19 retailer or purchaser under chapter 423A , 423B , 423C , 423D , 20 or 423E , or section 423.14 , 423.14A , 423.29 , 423.31 , 423.32 , 21 or 423.33 , or a user under section 423.34 , or a permit holder 22 or licensee under section 453A.13 , 453A.16 , or 453A.44 fails 23 to pay a tax under those sections when due, an officer of a 24 corporation or association, notwithstanding section 489.304 , 25 a member or manager of a limited liability company, or a 26 partner of a partnership, having control or supervision of 27 or the authority for remitting the tax payments and having 28 a substantial legal or equitable interest in the ownership 29 of the corporation, association, limited liability company, 30 or partnership, who has intentionally failed to pay the tax 31 is personally liable for the payment of the tax, interest, 32 and penalty due and unpaid. However, this section shall 33 not apply to taxes on accounts receivable. The dissolution 34 of a corporation, association, limited liability company, 35 -2- HF 2583.4355 (1) 89 (amending this HF 2583 to CONFORM to SF 2367) jm/jh 2/ 23

or partnership shall not discharge a person’s liability for 1 failure to remit the tax due. 2 Sec. 6. Section 423.2, subsection 1, paragraph b, Code 2022, 3 is amended to read as follows: 4 b. Sales of building materials, supplies, and equipment 5 to owners, contractors, subcontractors, or builders for the 6 erection of buildings or the alteration, repair, or improvement 7 of real property are retail sales of tangible personal property 8 in whatever quantity sold. Where the owner, contractor, 9 subcontractor, or builder is also a retailer holding a retail 10 sales or use tax permit and transacting retail sales of 11 building materials, supplies, and equipment, the person shall 12 purchase such items of tangible personal property without 13 liability for the tax if such property will be subject to the 14 tax at the time of resale or at the time it is withdrawn from 15 inventory for construction purposes. The sales tax shall be 16 due in the reporting period when the materials, supplies, 17 and equipment are withdrawn from inventory for construction 18 purposes or when sold at retail. The tax shall not be due when 19 materials are withdrawn from inventory for use in construction 20 outside of Iowa and the tax shall not apply to tangible 21 personal property purchased and consumed by the manufacturer as 22 building materials in the performance by the manufacturer or 23 its subcontractor of construction outside of Iowa. The sale 24 of carpeting is not a sale of building materials. The sale of 25 carpeting to owners, contractors, subcontractors, or builders 26 shall be treated as the sale of ordinary tangible personal 27 property and subject to the tax imposed under this subsection 28 and the use tax. 29 Sec. 7. Section 423.3, subsection 39, paragraph a, 30 subparagraph (2), Code 2022, is amended to read as follows: 31 (2) The sale of all or substantially all of the tangible 32 personal property, or specified digital products, or services 33 held or used by a seller in the course of the seller’s trade 34 or business for which the seller is required to hold a sales 35 -3- HF 2583.4355 (1) 89 (amending this HF 2583 to CONFORM to SF 2367) jm/jh 3/ 23

or use tax permit when the seller sells or otherwise transfers 1 the trade or business to another person who shall engage in a 2 similar trade or business. 3 Sec. 8. Section 423.3, subsection 80, paragraph d, Code 4 2022, is amended to read as follows: 5 d. Subject to the limitations in paragraph “c” , where the 6 owner, contractor, subcontractor, or builder is also a retailer 7 holding a retail sales or use tax permit and transacting 8 retail sales of building materials, supplies, and equipment, 9 the tax shall not be due when materials are withdrawn from 10 inventory for use in construction performed for a designated 11 exempt entity if an exemption certificate is received from such 12 entity. 13 Sec. 9. Section 423.5, subsection 2, Code 2022, is amended 14 to read as follows: 15 2. The excise tax is imposed upon every person using 16 the property within this state until the tax has been paid 17 directly to the county treasurer, the state department of 18 transportation, a retailer, or the department. This tax is 19 imposed on every person using the services or the product of 20 the services in this state until the user has paid the tax 21 either to an Iowa sales or use tax permit holder or to the 22 department. 23 Sec. 10. Section 423.14, subsection 2, paragraph b, Code 24 2022, is amended to read as follows: 25 b. The tax upon the use of all tangible personal property 26 and specified digital products other than that enumerated in 27 paragraph “a” , which is sold by a seller who is a retailer or 28 its agent that is not otherwise required to collect sales tax 29 under the provisions of this chapter , may be collected by the 30 retailer or agent and remitted to the department, pursuant to 31 the provisions of paragraph “e” , and sections 423.24 , 423.29 , 32 423.30 , 423.32 423.31 , and 423.33 . 33 Sec. 11. Section 423.14A, subsection 3, paragraph c, 34 subparagraph (2), Code 2022, is amended to read as follows: 35 -4- HF 2583.4355 (1) 89 (amending this HF 2583 to CONFORM to SF 2367) jm/jh 4/ 23

(2) A marketplace facilitator shall collect sales and 1 use tax on the entire sales price or purchase price paid by 2 a purchaser on each Iowa sale subject to sales and use tax 3 that is made or facilitated by the marketplace facilitator, 4 regardless of whether the marketplace seller for whom an Iowa 5 sale is made or facilitated has or is required to have a retail 6 sales or use tax permit or would have been required to collect 7 sales and use tax had the sale not been facilitated by the 8 marketplace facilitator, and regardless of the amount of the 9 sales price or purchase price that will ultimately accrue 10 to or benefit the marketplace facilitator, the marketplace 11 seller, or any other person. This sales and use tax collection 12 responsibility of a marketplace facilitator applies but shall 13 not be limited to sales facilitated through a computer software 14 application, commonly referred to as in-app purchases, or 15 through another specified digital product. 16 Sec. 12. Section 423.31, subsections 1, 3, 5, and 6, Code 17 2022, are amended to read as follows: 18 1. a. Each Except as provided in paragraph “b” , each person 19 subject to this section and section 423.36 and in accordance 20 with the provisions of this section and section 423.36 shall, 21 on or before the last day of the month following the close of 22 each calendar quarter month during which such person is or 23 has become or ceased being subject to the provisions of this 24 section and section 423.36 , make, sign, and file electronically 25 a return for the calendar quarter month in the form as may be 26 required. Returns shall show information relating to sales 27 prices including tangible personal property, specified digital 28 products, and services converted to the use of such person, 29 the amounts of sales prices excluded and exempt from the tax, 30 the amounts of sales prices subject to tax, a calculation of 31 tax due, and any other information for the period covered by 32 the return as may be required. Returns shall be signed by 33 the retailer or the retailer’s authorized agent and must be 34 certified by the retailer to be correct in accordance with 35 -5- HF 2583.4355 (1) 89 (amending this HF 2583 to CONFORM to SF 2367) jm/jh 5/ 23

forms and rules prescribed by the director. A person required 1 to file a sales or use tax return who is unable to do so may 2 request permission from the director to file a return by 3 another method. 4 b. Notwithstanding paragraph “a” , each person subject to 5 this section who collects and remits less than one thousand 6 two hundred dollars in sales or use tax to the department per 7 calendar year may file a return on or before the last day of the 8 month following the close of the calendar year. 9 3. The sales tax forms prescribed by the director shall be 10 referred to as “retailers tax deposit”. Deposit forms shall 11 be signed by the retailer or the retailer’s duly authorized 12 agent, and shall be duly certified by the retailer or agent to 13 be correct. The director may authorize incorporated banks and 14 trust companies or other depositories authorized by law which 15 are depositories or financial agents of the United States, 16 or of this state, to receive any sales or use tax imposed 17 under this chapter , in the manner, at the times, and under 18 the conditions the director prescribes. The director shall 19 prescribe the manner, times, and conditions under which the 20 receipt of the tax by those depositories is to be treated as 21 payment of the tax to the department. 22 5. a. Upon making application and receiving approval 23 from the director, a person and its affiliates that make 24 retail sales of tangible personal property, specified digital 25 products, or taxable enumerated services may make deposits and 26 file a consolidated sales or use tax return for the affiliated 27 group, pursuant to rules adopted by the director. A person and 28 each affiliate that files a consolidated return are jointly and 29 severally liable for all tax, penalty, and interest found due 30 for the tax period for which a consolidated return is filed or 31 required to be filed. 32 b. A business required to file a consolidated sales or use 33 tax return shall file a form entitled “schedule of consolidated 34 business locations” with its quarterly sales or use tax 35 -6- HF 2583.4355 (1) 89 (amending this HF 2583 to CONFORM to SF 2367) jm/jh 6/ 23

return that shows the taxpayer’s consolidated permit number, 1 the permit number for each Iowa business location, the state 2 sales tax amount by business location, and the amount of state 3 sales tax due on goods consumed that are not assigned to a 4 specific business location. Consolidated quarterly sales or 5 use tax returns that are not accompanied by the schedule of 6 consolidated business locations form are considered incomplete 7 and are subject to penalty under section 421.27 . 8 6. If necessary or advisable in order to insure ensure 9 the payment of the tax, the director may require returns and 10 payment of the tax to be made for other than quarterly monthly 11 periods, the provisions of this section or other provision to 12 the contrary notwithstanding. 13 Sec. 13. Section 423.31, subsection 2, Code 2022, is amended 14 by striking the subsection. 15 Sec. 14. Section 423.33, subsection 1, paragraph a, Code 16 2022, is amended to read as follows: 17 a. If a purchaser fails to pay sales tax to the retailer 18 required to collect the tax, then in addition to all of the 19 rights, obligations, and remedies provided, a use tax is 20 payable by the purchaser directly to the department, and 21 sections 423.31 , 423.32 , 423.37 , 423.38 , 423.39 , 423.40 , 22 423.41 , and 423.42 apply to the purchaser. 23 Sec. 15. Section 423.33, subsection 3, Code 2022, is amended 24 to read as follows: 25 3. Event sponsor’s liability for sales tax. A person 26 sponsoring a flea market or a craft, antique, coin, or stamp 27 show or similar event shall obtain from every retailer selling 28 tangible personal property, specified digital products, or 29 taxable services at the event proof that the retailer possesses 30 a valid sales or use tax permit or secure from the retailer 31 a statement, taken in good faith, that tangible personal 32 property, specified digital products, or services offered for 33 sale are not subject to sales tax. Failure to do so renders 34 a sponsor of the event liable for payment of any sales tax, 35 -7- HF 2583.4355 (1) 89 (amending this HF 2583 to CONFORM to SF 2367) jm/jh 7/ 23

interest, and penalty due and owing from any retailer selling 1 property or services at the event. Sections 423.31 , 423.32 , 2 423.37 , 423.38 , 423.39 , 423.40 , 423.41 , and 423.42 apply to the 3 sponsors. For purposes of this subsection , a “person sponsoring 4 a flea market or a craft, antique, coin, or stamp show or similar 5 event” does not include a marketplace facilitator as defined in 6 section 423.14A, subsection 1, an organization which sponsors 7 an event determined to qualify as an event involving casual 8 sales pursuant to section 423.3, subsection 39 , or the state 9 fair or a fair as defined in section 174.1 . 10 Sec. 16. Section 423.34, Code 2022, is amended to read as 11 follows: 12 423.34 Liability of user. 13 Any person who uses any tangible personal property, 14 specified digital products, or services enumerated in section 15 423.2 upon which the use tax has not been paid, either to the 16 county treasurer or to a retailer or direct to the department 17 as required by this subchapter , shall be liable for the payment 18 of tax, and shall on or before the last day of the month next 19 succeeding each quarterly monthly period pay the use tax upon 20 all tangible personal property, specified digital products, 21 or services used by the person during the preceding quarterly 22 monthly period in the manner and accompanied by such returns 23 as the director shall prescribe. All of the provisions of 24 sections 423.32 423.31 and 423.33 with reference to the returns 25 and payments shall be applicable to the returns and payments 26 required by this section . 27 Sec. 17. Section 423.36, subsection 4, paragraph b, Code 28 2022, is amended to read as follows: 29 b. If an applicant is making sales outside Iowa for use in 30 this state or furnishing services outside Iowa, the product 31 or result of which will be used in this state, that applicant 32 shall be issued one sales or use tax permit by the department 33 applicable to these out-of-state sales or services. 34 Sec. 18. Section 423.36, subsection 4, Code 2022, is amended 35 -8- HF 2583.4355 (1) 89 (amending this HF 2583 to CONFORM to SF 2367) jm/jh 8/ 23

by adding the following new paragraph: 1 NEW PARAGRAPH . c. If an applicant is required to collect 2 sales or use tax and is not included in the definition of a 3 retailer maintaining a place of business in this state in 4 section 423.1, subsection 48, paragraph “a” , subparagraph (1), 5 the applicant shall be issued one sales or use tax permit by 6 the department regardless of the number of locations from which 7 sales are made. 8 Sec. 19. Section 423.36, subsections 7 and 8, Code 2022, are 9 amended to read as follows: 10 7. a. Sellers who are not regularly engaged in selling 11 at retail and do not have a permanent place of business, but 12 who are temporarily engaged in selling from trucks, portable 13 roadside stands, concessionaires at state, county, district, 14 or local fairs, carnivals, or the like, shall report and remit 15 the sales tax on a temporary seasonal basis, under rules 16 the director shall provide for the efficient collection of 17 the sales tax. This subsection applies to sellers who are 18 temporarily engaged in furnishing services. 19 b. Persons engaged in selling tangible personal property, 20 specified digital products, or furnishing services shall not 21 be required to obtain or retain a sales or use tax permit for a 22 place of business at which taxable sales of tangible personal 23 property, specified digital products, or taxable performance of 24 services will not occur. 25 8. The provisions of subsection 1 , dealing with the lawful 26 right of a retailer to transact business, as applicable, apply 27 to persons having receipts from furnishing services enumerated 28 in section 423.2 , except that a person holding a permit 29 pursuant to subsection 1 shall not be required to obtain any 30 separate sales or use tax permit for the purpose of engaging in 31 business involving the services. 32 Sec. 20. Section 423.40, subsections 1, 2, 3, and 5, Code 33 2022, are amended to read as follows: 34 1. In addition to the sales or use tax or additional sales 35 -9- HF 2583.4355 (1) 89 (amending this HF 2583 to CONFORM to SF 2367) jm/jh 9/ 23

or use tax, the taxpayer shall pay a penalty as provided in 1 section 421.27 . The taxpayer shall also pay interest on the 2 sales or use tax or additional sales or use tax at the rate 3 in effect under section 421.7 for each month counting each 4 fraction of a month as an entire month, computed from the date 5 the semimonthly or monthly tax deposit form or return was 6 required to be filed. The penalty and interest shall be paid 7 to the department and disposed of in the same manner as other 8 receipts under this subchapter . Unpaid penalties and interest 9 may be enforced in the same manner as the taxes imposed by this 10 chapter . 11 2. a. Any person who knowingly sells tangible personal 12 property, specified digital products, tickets or admissions 13 to places of amusement and athletic events, or gas, water, 14 electricity, or communication service at retail, or engages in 15 the furnishing of services enumerated in section 423.2 , in this 16 state without procuring a permit to collect tax, as provided 17 in section 423.36 , or who violates section 423.24 and the 18 officers of any corporation who so act are guilty of a serious 19 misdemeanor. 20 b. A person who knowingly sells tangible personal property, 21 specified digital products, tickets or admissions to places of 22 amusement and athletic events, or gas, water, electricity, or 23 communication service at retail, or engages in the furnishing 24 of services enumerated in section 423.2 , in this state after 25 the person’s sales or use tax permit has been revoked and 26 before it has been restored as provided in section 423.36, 27 subsection 6 , and the officers of any corporation who so act 28 are guilty of an aggravated misdemeanor. 29 3. A person who willfully attempts in any manner to evade 30 any tax imposed by this chapter or the payment of the tax or 31 a person who makes or causes to be made a false or fraudulent 32 semimonthly or monthly tax deposit form or return with intent 33 to evade any tax imposed by subchapter II or III or the payment 34 of the tax is guilty of a class “D” felony. 35 -10- HF 2583.4355 (1) 89 (amending this HF 2583 to CONFORM to SF 2367) jm/jh 10/ 23

5. A person required to pay sales or use tax, or to make, 1 sign, or file a tax deposit form or return or supplemental 2 return, who willfully makes a false or fraudulent tax deposit 3 form or return, or willfully fails to pay at least ninety 4 percent of the tax or willfully fails to make, sign, or file 5 the tax deposit form or return, at the time required by law, is 6 guilty of a fraudulent practice. 7 Sec. 21. Section 423.45, subsection 4, paragraph b, Code 8 2022, is amended to read as follows: 9 b. The sales tax liability for all sales of tangible 10 personal property and specified digital products and all sales 11 of services is upon the seller and the purchaser unless the 12 seller takes from the purchaser a valid exemption certificate 13 stating under penalty of perjury that the purchase is for a 14 nontaxable purpose and is not a retail sale as defined in 15 section 423.1 , or the seller is not obligated to collect tax 16 due, or unless the seller takes a fuel exemption certificate 17 pursuant to subsection 5 . If the tangible personal property, 18 specified digital products, or services are purchased tax free 19 pursuant to a valid exemption certificate and the tangible 20 personal property, specified digital products, or services are 21 used or disposed of by the purchaser in a nonexempt manner, the 22 purchaser is solely liable for the taxes and shall remit the 23 taxes directly to the department and sections 423.31 , 423.32 , 24 423.37 , 423.38 , 423.39 , 423.40 , 423.41 , and 423.42 shall apply 25 to the purchaser. 26 Sec. 22. Section 423.45, subsection 5, paragraph c, Code 27 2022, is amended to read as follows: 28 c. The seller may accept a completed fuel exemption 29 certificate, as prepared by the purchaser, for three 30 years unless the purchaser files a new completed exemption 31 certificate. If the fuel is purchased tax free pursuant to a 32 fuel exemption certificate which is taken by the seller, and 33 the fuel is used or disposed of by the purchaser in a nonexempt 34 manner, the purchaser is solely liable for the taxes, and shall 35 -11- HF 2583.4355 (1) 89 (amending this HF 2583 to CONFORM to SF 2367) jm/jh 11/ 23

remit the taxes directly to the department and sections 423.31 , 1 423.32 , 423.37 , 423.38 , 423.39 , 423.40 , 423.41 , and 423.42 2 shall apply to the purchaser. 3 Sec. 23. Section 423.50, subsection 1, Code 2022, is amended 4 to read as follows: 5 1. Only one remittance of tax per return is required except 6 as provided in this subsection . Sellers that collect more 7 than thirty thousand dollars in sales and use taxes for this 8 state during the preceding calendar year shall be required to 9 make additional remittances as required under rules adopted by 10 the director. The filing of a return is not required with an 11 additional remittance. 12 Sec. 24. Section 423.57, Code 2022, is amended to read as 13 follows: 14 423.57 Statutes applicable. 15 The director shall administer this subchapter as it relates 16 to the taxes imposed in this chapter in the same manner and 17 subject to all the provisions of, and all of the powers, 18 duties, authority, and restrictions contained in sections 19 423.14 , 423.14A , 423.14B , 423.15 , 423.16 , 423.17 , 423.19 , 20 423.20 , 423.21 , 423.22 , 423.23 , 423.24 , 423.25 , 423.29 , 423.31 , 21 423.32 , 423.33 , 423.34 , 423.34A , 423.35 , 423.37 , 423.38 , 22 423.39 , 423.40 , 423.41 , and 423.42 , section 423.43, subsection 23 1 , and sections 423.45 , 423.46 , and 423.47 . 24 Sec. 25. Section 423.58, Code 2022, is amended to read as 25 follows: 26 423.58 Collection, permit, and tax return exemption for 27 certain out-of-state businesses. 28 Notwithstanding sections 423.14 , 423.14A , 423.14B , 423.29 , 29 423.31 , 423.32 , and 423.36 , a person meeting the requirements 30 of section 29C.24 is not required to obtain a sales or use tax 31 permit, collect and remit sales and use tax, or make and file 32 applicable sales or use tax returns, as provided in section 33 29C.24, subsection 3 , paragraph “a” , subparagraph (2). 34 Sec. 26. Section 423A.6, subsection 4, Code 2022, is amended 35 -12- HF 2583.4355 (1) 89 (amending this HF 2583 to CONFORM to SF 2367) jm/jh 12/ 23

to read as follows: 1 4. Section 422.25, subsection 4 , sections 422.30 , 422.67 , 2 and 422.68 , section 422.69, subsection 1 , sections 422.70 , 3 422.71 , 422.72 , 422.74 , and 422.75 , section 423.14, subsection 4 1 , and sections 423.23 , 423.24 , 423.25 , 423.31 , 423.33 , 5 423.35 , 423.37 through 423.42 , and 423.47 , consistent with the 6 provisions of this chapter , apply with respect to the taxes 7 authorized under this chapter , in the same manner and with the 8 same effect as if the state and local hotel and motel taxes 9 were retail sales taxes within the meaning of those statutes. 10 Notwithstanding this subsection , the director shall provide 11 for quarterly monthly filing of returns and for other than 12 quarterly monthly filing of returns both as prescribed in 13 section 423.31 . The director may require all persons who are 14 engaged in the business of deriving any sales price subject 15 to tax under this chapter to register with the department. 16 All taxes collected under this chapter by a retailer, lodging 17 provider, lodging facilitator, lodging platform, or any other 18 person are deemed to be held in trust for the state of Iowa and 19 the local jurisdictions imposing the taxes. 20 Sec. 27. Section 423B.5, subsection 3, Code 2022, is amended 21 to read as follows: 22 3. A tax permit other than the state sales or use tax permit 23 required under section 423.36 shall not be required by local 24 authorities. 25 Sec. 28. Section 423B.6, subsection 2, paragraph c, Code 26 2022, is amended to read as follows: 27 c. Frequency of deposits and quarterly monthly reports of a 28 local sales and services tax with the department of revenue are 29 governed by the tax provisions in section 423.31 . Local tax 30 collections shall not be included in computation of the total 31 tax to determine frequency of filing under section 423.31 . 32 Sec. 29. Section 423C.4, Code 2022, is amended to read as 33 follows: 34 423C.4 Administration and enforcement. 35 -13- HF 2583.4355 (1) 89 (amending this HF 2583 to CONFORM to SF 2367) jm/jh 13/ 23

All powers and requirements of the director of revenue 1 to administer the state sales tax law under chapter 423 are 2 applicable to the administration of the tax imposed under 3 section 423C.3 , including but not limited to section 422.25, 4 subsection 4 , sections 422.30 , 422.67 , and 422.68 , section 5 422.69, subsection 1 , sections 422.70 through 422.75 , section 6 423.14, subsection 1 , and sections 423.15 , 423.23 , 423.24 , 7 423.25 , 423.31 , 423.33 , 423.35 and 423.37 through 423.42 , 8 423.45 , 423.46 , and 423.47 . However, as an exception to the 9 powers specified in section 423.31 , the director shall only 10 require the filing of quarterly monthly reports. 11 Sec. 30. Section 423D.4, subsection 3, Code 2022, is amended 12 to read as follows: 13 3. Section 422.25, subsection 4 , sections 422.30 , 422.67 , 14 and 422.68 , section 422.69, subsection 1 , sections 422.70 , 15 422.71 , 422.72 , 422.74 , and 422.75 , section 423.14, subsection 16 1 , and sections 423.23 , 423.24 , 423.25 , 423.31 through 17 423.35 , 423.37 through 423.42 , and 423.47 , consistent with 18 the provisions of this chapter , apply with respect to the tax 19 authorized under this chapter , in the same manner and with the 20 same effect as if the excise taxes on equipment sales or use 21 were retail sales taxes within the meaning of those statutes. 22 Notwithstanding this subsection , the director shall provide 23 for quarterly monthly filing of returns and for other than 24 quarterly monthly filing of returns both as prescribed in 25 section 423.31 . All taxes collected under this chapter by a 26 retailer or any user are deemed to be held in trust for the 27 state of Iowa. 28 Sec. 31. Section 423G.5, subsection 3, Code 2022, is amended 29 to read as follows: 30 3. Section 422.25, subsection 4 , sections 422.30 , 422.67 , 31 and 422.68 , section 422.69, subsection 1 , sections 422.70 , 32 422.71 , 422.72 , 422.74 , and 422.75 , section 423.14, subsection 33 1 , and sections 423.23 , 423.24 , 423.25 , 423.31 through 34 423.35 , 423.37 through 423.42 , and 423.47 , consistent with the 35 -14- HF 2583.4355 (1) 89 (amending this HF 2583 to CONFORM to SF 2367) jm/jh 14/ 23

provisions of this chapter , shall apply with respect to the tax 1 authorized under this chapter , in the same manner and with the 2 same effect as if the excise taxes on the sale or furnishing of 3 a water service were retail sales taxes within the meaning of 4 those statutes. Notwithstanding this subsection , the director 5 shall provide for quarterly monthly filing of returns and 6 for other than quarterly monthly filing of returns both as 7 prescribed in section 423.31 . All taxes collected under this 8 chapter by a retailer or any user are deemed to be held in trust 9 for the state of Iowa. 10 Sec. 32. Section 728.1, subsection 6, Code 2022, is amended 11 to read as follows: 12 6. “Place of business” means the premises of a business 13 required to obtain a sales or use tax permit pursuant to 14 chapter 423 , the premises of a nonprofit or not-for-profit 15 organization, and the premises of an establishment which is 16 open to the public at large or where entrance is limited by a 17 cover charge or membership requirement. 18 Sec. 33. Section 728.5, subsection 1, unnumbered paragraph 19 1, Code 2022, is amended to read as follows: 20 An owner, manager, or person who exercises direct control 21 over a place of business required to obtain a sales or use tax 22 permit shall be guilty of a serious misdemeanor under any of 23 the following circumstances: 24 Sec. 34. REPEAL. Section 423.32, Code 2022, is repealed. 25 Sec. 35. IMPLEMENTATION —— EMERGENCY RULES. The department 26 of revenue may adopt emergency rules under section 17A.4, 27 subsection 3, and section 17A.5, subsection 2, paragraph “b”, 28 to implement the provisions of this division of this Act and 29 the rules shall be effective immediately upon filing unless 30 a later date is specified in the rules. Any rules adopted 31 in accordance with this section shall also be published as a 32 notice of intended action as provided in section 17A.4. 33 Sec. 36. EFFECTIVE DATE. The following, being deemed of 34 immediate importance, takes effect upon enactment: 35 -15- HF 2583.4355 (1) 89 (amending this HF 2583 to CONFORM to SF 2367) jm/jh 15/ 23

The section of this division of this Act enacting emergency 1 rules relating to the implementation of this division of this 2 Act. 3 DIVISION II 4 DISTRIBUTIONS OF REVENUE TO LOCAL GOVERNMENTS AND SCHOOL 5 DISTRICTS 6 Sec. 37. Section 423B.7, subsection 2, paragraph a, Code 7 2022, is amended to read as follows: 8 a. The director of revenue by August 15 of each fiscal 9 year the last day of each month shall send transfer to each 10 city or county where the local option tax is imposed , an 11 estimate of the amount of tax moneys remitted to the department 12 attributable to each city or county will receive for the year 13 and for each month of the year from the preceding month . At the 14 end of each month, the director may revise the estimates for 15 the year and remaining months. 16 Sec. 38. Section 423B.7, subsection 2, paragraphs b and c, 17 Code 2022, are amended by striking the paragraphs. 18 Sec. 39. Section 423F.2, subsection 4, paragraph a, Code 19 2022, is amended to read as follows: 20 a. The director of revenue by August 15 of each fiscal year 21 the last day of each month shall send transfer to each school 22 district an estimate of the amount of tax moneys remitted 23 to the department attributable to each school district will 24 receive for the year and for each month of the year from the 25 preceding month . At the end of each month, the director may 26 revise the estimates for the year and remaining months. 27 Sec. 40. Section 423F.2, subsection 4, paragraph b, Code 28 2022, is amended by striking the paragraph and inserting in 29 lieu thereof the following: 30 b. On or before August 15 of each fiscal year the director 31 of revenue shall provide to each school district an estimate 32 of the amount of tax moneys to be distributed to each school 33 district for the current fiscal year. 34 Sec. 41. Section 423F.2, subsection 4, paragraph c, Code 35 -16- HF 2583.4355 (1) 89 (amending this HF 2583 to CONFORM to SF 2367) jm/jh 16/ 23

2022, is amended by striking the paragraph. 1 Sec. 42. TRANSITION PROVISION FOR LOCAL OPTION SALES TAX 2 AND SECURING AN ADVANCED VISION FOR EDUCATION —— TRANSFER 3 AMOUNTS. Notwithstanding any other provision of law to the 4 contrary, the department of revenue shall estimate monthly 5 local option sales tax and securing an advanced vision for 6 education transfer amounts through the end of the 2022 calendar 7 year. The department of revenue shall transfer estimated 8 amounts to each local government or school district for the 9 months of July, August, and September 2022. Beginning with the 10 October 2022 transfer, the department shall not use estimated 11 amounts and shall transfer the amount of tax attributable to 12 each local government or school district for the tax remitted 13 in September 2022. Any adjustment amount that is necessary to 14 the July, August, or September 2022 estimated transfer amount 15 to reflect the accurate attributable amount shall be made by 16 the department of revenue or the local government or school 17 district by the close of business on December 30, 2022. 18 DIVISION III 19 LIABILITY OF SELLERS USING CERTIFIED SERVICE PROVIDER 20 Sec. 43. Section 423.48, subsection 3, paragraph a, Code 21 2022, is amended to read as follows: 22 a. A model 1 seller’s obligation to calculate, collect, and 23 remit sales and use taxes shall be performed by its certified 24 service provider, except for the seller’s obligation to remit 25 tax on its own purchases. As the seller’s agent, the certified 26 service provider is liable for its model 1 seller’s sales 27 and use tax due Iowa on all sales transactions it processes 28 for the seller except as set out in this section . A seller 29 that contracts with a certified service provider is not 30 liable to the state for sales or use tax due on transactions 31 processed by the certified service provider unless the seller 32 misrepresents the types of items or services it sells or 33 commits fraud certified service provider establishes that 34 the certified service provider is not liable in accordance 35 -17- HF 2583.4355 (1) 89 (amending this HF 2583 to CONFORM to SF 2367) jm/jh 17/ 23