Senate
File
2367
H-8382
Amend
Senate
File
2367,
as
passed
by
the
Senate,
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
.
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#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,
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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
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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
423.3,
subsection
104,
paragraph
b,
14
subparagraph
(1),
Code
2022,
is
amended
to
read
as
follows:
15
(1)
“Commercial
enterprise”
means
the
same
as
defined
in
16
section
423.3,
subsection
47
,
paragraph
“d”
,
subparagraph
(1),
17
but
also
includes
professions
and
occupations
,
and
includes
18
public
utilities
as
defined
in
section
476.1,
subsection
3
.
19
Sec.
10.
Section
423.5,
subsection
2,
Code
2022,
is
amended
20
to
read
as
follows:
21
2.
The
excise
tax
is
imposed
upon
every
person
using
22
the
property
within
this
state
until
the
tax
has
been
paid
23
directly
to
the
county
treasurer,
the
state
department
of
24
transportation,
a
retailer,
or
the
department.
This
tax
is
25
imposed
on
every
person
using
the
services
or
the
product
of
26
the
services
in
this
state
until
the
user
has
paid
the
tax
27
either
to
an
Iowa
sales
or
use
tax
permit
holder
or
to
the
28
department.
29
Sec.
11.
Section
423.14,
subsection
2,
paragraph
b,
Code
30
2022,
is
amended
to
read
as
follows:
31
b.
The
tax
upon
the
use
of
all
tangible
personal
property
32
and
specified
digital
products
other
than
that
enumerated
in
33
paragraph
“a”
,
which
is
sold
by
a
seller
who
is
a
retailer
or
34
its
agent
that
is
not
otherwise
required
to
collect
sales
tax
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under
the
provisions
of
this
chapter
,
may
be
collected
by
the
1
retailer
or
agent
and
remitted
to
the
department,
pursuant
to
2
the
provisions
of
paragraph
“e”
,
and
sections
423.24
,
423.29
,
3
423.30
,
423.32
423.31
,
and
423.33
.
4
Sec.
12.
Section
423.14A,
subsection
3,
paragraph
c,
5
subparagraph
(2),
Code
2022,
is
amended
to
read
as
follows:
6
(2)
A
marketplace
facilitator
shall
collect
sales
and
7
use
tax
on
the
entire
sales
price
or
purchase
price
paid
by
8
a
purchaser
on
each
Iowa
sale
subject
to
sales
and
use
tax
9
that
is
made
or
facilitated
by
the
marketplace
facilitator,
10
regardless
of
whether
the
marketplace
seller
for
whom
an
Iowa
11
sale
is
made
or
facilitated
has
or
is
required
to
have
a
retail
12
sales
or
use
tax
permit
or
would
have
been
required
to
collect
13
sales
and
use
tax
had
the
sale
not
been
facilitated
by
the
14
marketplace
facilitator,
and
regardless
of
the
amount
of
the
15
sales
price
or
purchase
price
that
will
ultimately
accrue
16
to
or
benefit
the
marketplace
facilitator,
the
marketplace
17
seller,
or
any
other
person.
This
sales
and
use
tax
collection
18
responsibility
of
a
marketplace
facilitator
applies
but
shall
19
not
be
limited
to
sales
facilitated
through
a
computer
software
20
application,
commonly
referred
to
as
in-app
purchases,
or
21
through
another
specified
digital
product.
22
Sec.
13.
Section
423.31,
subsections
1,
3,
5,
and
6,
Code
23
2022,
are
amended
to
read
as
follows:
24
1.
a.
Each
Except
as
provided
in
paragraph
“b”
,
each
person
25
subject
to
this
section
and
section
423.36
and
in
accordance
26
with
the
provisions
of
this
section
and
section
423.36
shall,
27
on
or
before
the
last
day
of
the
month
following
the
close
of
28
each
calendar
quarter
month
during
which
such
person
is
or
29
has
become
or
ceased
being
subject
to
the
provisions
of
this
30
section
and
section
423.36
,
make,
sign,
and
file
electronically
31
a
return
for
the
calendar
quarter
month
in
the
form
as
may
be
32
required.
Returns
shall
show
information
relating
to
sales
33
prices
including
tangible
personal
property,
specified
digital
34
products,
and
services
converted
to
the
use
of
such
person,
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the
amounts
of
sales
prices
excluded
and
exempt
from
the
tax,
1
the
amounts
of
sales
prices
subject
to
tax,
a
calculation
of
2
tax
due,
and
any
other
information
for
the
period
covered
by
3
the
return
as
may
be
required.
Returns
shall
be
signed
by
4
the
retailer
or
the
retailer’s
authorized
agent
and
must
be
5
certified
by
the
retailer
to
be
correct
in
accordance
with
6
forms
and
rules
prescribed
by
the
director.
A
person
required
7
to
file
a
sales
or
use
tax
return
who
is
unable
to
do
so
may
8
request
permission
from
the
director
to
file
a
return
by
9
another
method.
10
b.
Notwithstanding
paragraph
“a”
,
each
person
subject
to
11
this
section
who
collects
and
remits
less
than
one
thousand
12
two
hundred
dollars
in
sales
or
use
tax
to
the
department
per
13
calendar
year
may
file
a
return
on
or
before
the
last
day
of
the
14
month
following
the
close
of
the
calendar
year.
15
3.
The
sales
tax
forms
prescribed
by
the
director
shall
be
16
referred
to
as
“retailers
tax
deposit”.
Deposit
forms
shall
17
be
signed
by
the
retailer
or
the
retailer’s
duly
authorized
18
agent,
and
shall
be
duly
certified
by
the
retailer
or
agent
to
19
be
correct.
The
director
may
authorize
incorporated
banks
and
20
trust
companies
or
other
depositories
authorized
by
law
which
21
are
depositories
or
financial
agents
of
the
United
States,
22
or
of
this
state,
to
receive
any
sales
or
use
tax
imposed
23
under
this
chapter
,
in
the
manner,
at
the
times,
and
under
24
the
conditions
the
director
prescribes.
The
director
shall
25
prescribe
the
manner,
times,
and
conditions
under
which
the
26
receipt
of
the
tax
by
those
depositories
is
to
be
treated
as
27
payment
of
the
tax
to
the
department.
28
5.
a.
Upon
making
application
and
receiving
approval
29
from
the
director,
a
person
and
its
affiliates
that
make
30
retail
sales
of
tangible
personal
property,
specified
digital
31
products,
or
taxable
enumerated
services
may
make
deposits
and
32
file
a
consolidated
sales
or
use
tax
return
for
the
affiliated
33
group,
pursuant
to
rules
adopted
by
the
director.
A
person
and
34
each
affiliate
that
files
a
consolidated
return
are
jointly
and
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severally
liable
for
all
tax,
penalty,
and
interest
found
due
1
for
the
tax
period
for
which
a
consolidated
return
is
filed
or
2
required
to
be
filed.
3
b.
A
business
required
to
file
a
consolidated
sales
or
use
4
tax
return
shall
file
a
form
entitled
“schedule
of
consolidated
5
business
locations”
with
its
quarterly
sales
or
use
tax
6
return
that
shows
the
taxpayer’s
consolidated
permit
number,
7
the
permit
number
for
each
Iowa
business
location,
the
state
8
sales
tax
amount
by
business
location,
and
the
amount
of
state
9
sales
tax
due
on
goods
consumed
that
are
not
assigned
to
a
10
specific
business
location.
Consolidated
quarterly
sales
or
11
use
tax
returns
that
are
not
accompanied
by
the
schedule
of
12
consolidated
business
locations
form
are
considered
incomplete
13
and
are
subject
to
penalty
under
section
421.27
.
14
6.
If
necessary
or
advisable
in
order
to
insure
ensure
15
the
payment
of
the
tax,
the
director
may
require
returns
and
16
payment
of
the
tax
to
be
made
for
other
than
quarterly
monthly
17
periods,
the
provisions
of
this
section
or
other
provision
to
18
the
contrary
notwithstanding.
19
Sec.
14.
Section
423.31,
subsection
2,
Code
2022,
is
amended
20
by
striking
the
subsection.
21
Sec.
15.
Section
423.33,
subsection
1,
paragraph
a,
Code
22
2022,
is
amended
to
read
as
follows:
23
a.
If
a
purchaser
fails
to
pay
sales
tax
to
the
retailer
24
required
to
collect
the
tax,
then
in
addition
to
all
of
the
25
rights,
obligations,
and
remedies
provided,
a
use
tax
is
26
payable
by
the
purchaser
directly
to
the
department,
and
27
sections
423.31
,
423.32
,
423.37
,
423.38
,
423.39
,
423.40
,
28
423.41
,
and
423.42
apply
to
the
purchaser.
29
Sec.
16.
Section
423.33,
subsection
3,
Code
2022,
is
amended
30
to
read
as
follows:
31
3.
Event
sponsor’s
liability
for
sales
tax.
A
person
32
sponsoring
a
flea
market
or
a
craft,
antique,
coin,
or
stamp
33
show
or
similar
event
shall
obtain
from
every
retailer
selling
34
tangible
personal
property,
specified
digital
products,
or
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taxable
services
at
the
event
proof
that
the
retailer
possesses
1
a
valid
sales
or
use
tax
permit
or
secure
from
the
retailer
2
a
statement,
taken
in
good
faith,
that
tangible
personal
3
property,
specified
digital
products,
or
services
offered
for
4
sale
are
not
subject
to
sales
tax.
Failure
to
do
so
renders
5
a
sponsor
of
the
event
liable
for
payment
of
any
sales
tax,
6
interest,
and
penalty
due
and
owing
from
any
retailer
selling
7
property
or
services
at
the
event.
Sections
423.31
,
423.32
,
8
423.37
,
423.38
,
423.39
,
423.40
,
423.41
,
and
423.42
apply
to
the
9
sponsors.
For
purposes
of
this
subsection
,
a
“person
sponsoring
10
a
flea
market
or
a
craft,
antique,
coin,
or
stamp
show
or
similar
11
event”
does
not
include
a
marketplace
facilitator
as
defined
in
12
section
423.14A,
subsection
1,
an
organization
which
sponsors
13
an
event
determined
to
qualify
as
an
event
involving
casual
14
sales
pursuant
to
section
423.3,
subsection
39
,
or
the
state
15
fair
or
a
fair
as
defined
in
section
174.1
.
16
Sec.
17.
Section
423.34,
Code
2022,
is
amended
to
read
as
17
follows:
18
423.34
Liability
of
user.
19
Any
person
who
uses
any
tangible
personal
property,
20
specified
digital
products,
or
services
enumerated
in
section
21
423.2
upon
which
the
use
tax
has
not
been
paid,
either
to
the
22
county
treasurer
or
to
a
retailer
or
direct
to
the
department
23
as
required
by
this
subchapter
,
shall
be
liable
for
the
payment
24
of
tax,
and
shall
on
or
before
the
last
day
of
the
month
next
25
succeeding
each
quarterly
monthly
period
pay
the
use
tax
upon
26
all
tangible
personal
property,
specified
digital
products,
27
or
services
used
by
the
person
during
the
preceding
quarterly
28
monthly
period
in
the
manner
and
accompanied
by
such
returns
29
as
the
director
shall
prescribe.
All
of
the
provisions
of
30
sections
423.32
423.31
and
423.33
with
reference
to
the
returns
31
and
payments
shall
be
applicable
to
the
returns
and
payments
32
required
by
this
section
.
33
Sec.
18.
Section
423.36,
subsection
4,
paragraph
b,
Code
34
2022,
is
amended
to
read
as
follows:
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b.
If
an
applicant
is
making
sales
outside
Iowa
for
use
in
1
this
state
or
furnishing
services
outside
Iowa,
the
product
2
or
result
of
which
will
be
used
in
this
state,
that
applicant
3
shall
be
issued
one
sales
or
use
tax
permit
by
the
department
4
applicable
to
these
out-of-state
sales
or
services.
5
Sec.
19.
Section
423.36,
subsection
4,
Code
2022,
is
amended
6
by
adding
the
following
new
paragraph:
7
NEW
PARAGRAPH
.
c.
If
an
applicant
is
required
to
collect
8
sales
or
use
tax
and
is
not
included
in
the
definition
of
a
9
retailer
maintaining
a
place
of
business
in
this
state
in
10
section
423.1,
subsection
48,
paragraph
“a”
,
subparagraph
(1),
11
the
applicant
shall
be
issued
one
sales
or
use
tax
permit
by
12
the
department
regardless
of
the
number
of
locations
from
which
13
sales
are
made.
14
Sec.
20.
Section
423.36,
subsections
7
and
8,
Code
2022,
are
15
amended
to
read
as
follows:
16
7.
a.
Sellers
who
are
not
regularly
engaged
in
selling
17
at
retail
and
do
not
have
a
permanent
place
of
business,
but
18
who
are
temporarily
engaged
in
selling
from
trucks,
portable
19
roadside
stands,
concessionaires
at
state,
county,
district,
20
or
local
fairs,
carnivals,
or
the
like,
shall
report
and
remit
21
the
sales
tax
on
a
temporary
seasonal
basis,
under
rules
22
the
director
shall
provide
for
the
efficient
collection
of
23
the
sales
tax.
This
subsection
applies
to
sellers
who
are
24
temporarily
engaged
in
furnishing
services.
25
b.
Persons
engaged
in
selling
tangible
personal
property,
26
specified
digital
products,
or
furnishing
services
shall
not
27
be
required
to
obtain
or
retain
a
sales
or
use
tax
permit
for
a
28
place
of
business
at
which
taxable
sales
of
tangible
personal
29
property,
specified
digital
products,
or
taxable
performance
of
30
services
will
not
occur.
31
8.
The
provisions
of
subsection
1
,
dealing
with
the
lawful
32
right
of
a
retailer
to
transact
business,
as
applicable,
apply
33
to
persons
having
receipts
from
furnishing
services
enumerated
34
in
section
423.2
,
except
that
a
person
holding
a
permit
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pursuant
to
subsection
1
shall
not
be
required
to
obtain
any
1
separate
sales
or
use
tax
permit
for
the
purpose
of
engaging
in
2
business
involving
the
services.
3
Sec.
21.
Section
423.40,
subsections
1,
2,
3,
and
5,
Code
4
2022,
are
amended
to
read
as
follows:
5
1.
In
addition
to
the
sales
or
use
tax
or
additional
sales
6
or
use
tax,
the
taxpayer
shall
pay
a
penalty
as
provided
in
7
section
421.27
.
The
taxpayer
shall
also
pay
interest
on
the
8
sales
or
use
tax
or
additional
sales
or
use
tax
at
the
rate
9
in
effect
under
section
421.7
for
each
month
counting
each
10
fraction
of
a
month
as
an
entire
month,
computed
from
the
date
11
the
semimonthly
or
monthly
tax
deposit
form
or
return
was
12
required
to
be
filed.
The
penalty
and
interest
shall
be
paid
13
to
the
department
and
disposed
of
in
the
same
manner
as
other
14
receipts
under
this
subchapter
.
Unpaid
penalties
and
interest
15
may
be
enforced
in
the
same
manner
as
the
taxes
imposed
by
this
16
chapter
.
17
2.
a.
Any
person
who
knowingly
sells
tangible
personal
18
property,
specified
digital
products,
tickets
or
admissions
19
to
places
of
amusement
and
athletic
events,
or
gas,
water,
20
electricity,
or
communication
service
at
retail,
or
engages
in
21
the
furnishing
of
services
enumerated
in
section
423.2
,
in
this
22
state
without
procuring
a
permit
to
collect
tax,
as
provided
23
in
section
423.36
,
or
who
violates
section
423.24
and
the
24
officers
of
any
corporation
who
so
act
are
guilty
of
a
serious
25
misdemeanor.
26
b.
A
person
who
knowingly
sells
tangible
personal
property,
27
specified
digital
products,
tickets
or
admissions
to
places
of
28
amusement
and
athletic
events,
or
gas,
water,
electricity,
or
29
communication
service
at
retail,
or
engages
in
the
furnishing
30
of
services
enumerated
in
section
423.2
,
in
this
state
after
31
the
person’s
sales
or
use
tax
permit
has
been
revoked
and
32
before
it
has
been
restored
as
provided
in
section
423.36,
33
subsection
6
,
and
the
officers
of
any
corporation
who
so
act
34
are
guilty
of
an
aggravated
misdemeanor.
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3.
A
person
who
willfully
attempts
in
any
manner
to
evade
1
any
tax
imposed
by
this
chapter
or
the
payment
of
the
tax
or
2
a
person
who
makes
or
causes
to
be
made
a
false
or
fraudulent
3
semimonthly
or
monthly
tax
deposit
form
or
return
with
intent
4
to
evade
any
tax
imposed
by
subchapter
II
or
III
or
the
payment
5
of
the
tax
is
guilty
of
a
class
“D”
felony.
6
5.
A
person
required
to
pay
sales
or
use
tax,
or
to
make,
7
sign,
or
file
a
tax
deposit
form
or
return
or
supplemental
8
return,
who
willfully
makes
a
false
or
fraudulent
tax
deposit
9
form
or
return,
or
willfully
fails
to
pay
at
least
ninety
10
percent
of
the
tax
or
willfully
fails
to
make,
sign,
or
file
11
the
tax
deposit
form
or
return,
at
the
time
required
by
law,
is
12
guilty
of
a
fraudulent
practice.
13
Sec.
22.
Section
423.45,
subsection
4,
paragraph
b,
Code
14
2022,
is
amended
to
read
as
follows:
15
b.
The
sales
tax
liability
for
all
sales
of
tangible
16
personal
property
and
specified
digital
products
and
all
sales
17
of
services
is
upon
the
seller
and
the
purchaser
unless
the
18
seller
takes
from
the
purchaser
a
valid
exemption
certificate
19
stating
under
penalty
of
perjury
that
the
purchase
is
for
a
20
nontaxable
purpose
and
is
not
a
retail
sale
as
defined
in
21
section
423.1
,
or
the
seller
is
not
obligated
to
collect
tax
22
due,
or
unless
the
seller
takes
a
fuel
exemption
certificate
23
pursuant
to
subsection
5
.
If
the
tangible
personal
property,
24
specified
digital
products,
or
services
are
purchased
tax
free
25
pursuant
to
a
valid
exemption
certificate
and
the
tangible
26
personal
property,
specified
digital
products,
or
services
are
27
used
or
disposed
of
by
the
purchaser
in
a
nonexempt
manner,
the
28
purchaser
is
solely
liable
for
the
taxes
and
shall
remit
the
29
taxes
directly
to
the
department
and
sections
423.31
,
423.32
,
30
423.37
,
423.38
,
423.39
,
423.40
,
423.41
,
and
423.42
shall
apply
31
to
the
purchaser.
32
Sec.
23.
Section
423.45,
subsection
5,
paragraph
c,
Code
33
2022,
is
amended
to
read
as
follows:
34
c.
The
seller
may
accept
a
completed
fuel
exemption
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certificate,
as
prepared
by
the
purchaser,
for
three
1
years
unless
the
purchaser
files
a
new
completed
exemption
2
certificate.
If
the
fuel
is
purchased
tax
free
pursuant
to
a
3
fuel
exemption
certificate
which
is
taken
by
the
seller,
and
4
the
fuel
is
used
or
disposed
of
by
the
purchaser
in
a
nonexempt
5
manner,
the
purchaser
is
solely
liable
for
the
taxes,
and
shall
6
remit
the
taxes
directly
to
the
department
and
sections
423.31
,
7
423.32
,
423.37
,
423.38
,
423.39
,
423.40
,
423.41
,
and
423.42
8
shall
apply
to
the
purchaser.
9
Sec.
24.
Section
423.50,
subsection
1,
Code
2022,
is
amended
10
to
read
as
follows:
11
1.
Only
one
remittance
of
tax
per
return
is
required
except
12
as
provided
in
this
subsection
.
Sellers
that
collect
more
13
than
thirty
thousand
dollars
in
sales
and
use
taxes
for
this
14
state
during
the
preceding
calendar
year
shall
be
required
to
15
make
additional
remittances
as
required
under
rules
adopted
by
16
the
director.
The
filing
of
a
return
is
not
required
with
an
17
additional
remittance.
18
Sec.
25.
Section
423.57,
Code
2022,
is
amended
to
read
as
19
follows:
20
423.57
Statutes
applicable.
21
The
director
shall
administer
this
subchapter
as
it
relates
22
to
the
taxes
imposed
in
this
chapter
in
the
same
manner
and
23
subject
to
all
the
provisions
of,
and
all
of
the
powers,
24
duties,
authority,
and
restrictions
contained
in
sections
25
423.14
,
423.14A
,
423.14B
,
423.15
,
423.16
,
423.17
,
423.19
,
26
423.20
,
423.21
,
423.22
,
423.23
,
423.24
,
423.25
,
423.29
,
423.31
,
27
423.32
,
423.33
,
423.34
,
423.34A
,
423.35
,
423.37
,
423.38
,
28
423.39
,
423.40
,
423.41
,
and
423.42
,
section
423.43,
subsection
29
1
,
and
sections
423.45
,
423.46
,
and
423.47
.
30
Sec.
26.
Section
423.58,
Code
2022,
is
amended
to
read
as
31
follows:
32
423.58
Collection,
permit,
and
tax
return
exemption
for
33
certain
out-of-state
businesses.
34
Notwithstanding
sections
423.14
,
423.14A
,
423.14B
,
423.29
,
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423.31
,
423.32
,
and
423.36
,
a
person
meeting
the
requirements
1
of
section
29C.24
is
not
required
to
obtain
a
sales
or
use
tax
2
permit,
collect
and
remit
sales
and
use
tax,
or
make
and
file
3
applicable
sales
or
use
tax
returns,
as
provided
in
section
4
29C.24,
subsection
3
,
paragraph
“a”
,
subparagraph
(2).
5
Sec.
27.
Section
423A.6,
subsection
4,
Code
2022,
is
amended
6
to
read
as
follows:
7
4.
Section
422.25,
subsection
4
,
sections
422.30
,
422.67
,
8
and
422.68
,
section
422.69,
subsection
1
,
sections
422.70
,
9
422.71
,
422.72
,
422.74
,
and
422.75
,
section
423.14,
subsection
10
1
,
and
sections
423.23
,
423.24
,
423.25
,
423.31
,
423.33
,
11
423.35
,
423.37
through
423.42
,
and
423.47
,
consistent
with
the
12
provisions
of
this
chapter
,
apply
with
respect
to
the
taxes
13
authorized
under
this
chapter
,
in
the
same
manner
and
with
the
14
same
effect
as
if
the
state
and
local
hotel
and
motel
taxes
15
were
retail
sales
taxes
within
the
meaning
of
those
statutes.
16
Notwithstanding
this
subsection
,
the
director
shall
provide
17
for
quarterly
monthly
filing
of
returns
and
for
other
than
18
quarterly
monthly
filing
of
returns
both
as
prescribed
in
19
section
423.31
.
The
director
may
require
all
persons
who
are
20
engaged
in
the
business
of
deriving
any
sales
price
subject
21
to
tax
under
this
chapter
to
register
with
the
department.
22
All
taxes
collected
under
this
chapter
by
a
retailer,
lodging
23
provider,
lodging
facilitator,
lodging
platform,
or
any
other
24
person
are
deemed
to
be
held
in
trust
for
the
state
of
Iowa
and
25
the
local
jurisdictions
imposing
the
taxes.
26
Sec.
28.
Section
423B.5,
subsection
3,
Code
2022,
is
amended
27
to
read
as
follows:
28
3.
A
tax
permit
other
than
the
state
sales
or
use
tax
permit
29
required
under
section
423.36
shall
not
be
required
by
local
30
authorities.
31
Sec.
29.
Section
423B.6,
subsection
2,
paragraph
c,
Code
32
2022,
is
amended
to
read
as
follows:
33
c.
Frequency
of
deposits
and
quarterly
monthly
reports
of
a
34
local
sales
and
services
tax
with
the
department
of
revenue
are
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governed
by
the
tax
provisions
in
section
423.31
.
Local
tax
1
collections
shall
not
be
included
in
computation
of
the
total
2
tax
to
determine
frequency
of
filing
under
section
423.31
.
3
Sec.
30.
Section
423C.4,
Code
2022,
is
amended
to
read
as
4
follows:
5
423C.4
Administration
and
enforcement.
6
All
powers
and
requirements
of
the
director
of
revenue
7
to
administer
the
state
sales
tax
law
under
chapter
423
are
8
applicable
to
the
administration
of
the
tax
imposed
under
9
section
423C.3
,
including
but
not
limited
to
section
422.25,
10
subsection
4
,
sections
422.30
,
422.67
,
and
422.68
,
section
11
422.69,
subsection
1
,
sections
422.70
through
422.75
,
section
12
423.14,
subsection
1
,
and
sections
423.15
,
423.23
,
423.24
,
13
423.25
,
423.31
,
423.33
,
423.35
and
423.37
through
423.42
,
14
423.45
,
423.46
,
and
423.47
.
However,
as
an
exception
to
the
15
powers
specified
in
section
423.31
,
the
director
shall
only
16
require
the
filing
of
quarterly
monthly
reports.
17
Sec.
31.
Section
423D.4,
subsection
3,
Code
2022,
is
amended
18
to
read
as
follows:
19
3.
Section
422.25,
subsection
4
,
sections
422.30
,
422.67
,
20
and
422.68
,
section
422.69,
subsection
1
,
sections
422.70
,
21
422.71
,
422.72
,
422.74
,
and
422.75
,
section
423.14,
subsection
22
1
,
and
sections
423.23
,
423.24
,
423.25
,
423.31
through
23
423.35
,
423.37
through
423.42
,
and
423.47
,
consistent
with
24
the
provisions
of
this
chapter
,
apply
with
respect
to
the
tax
25
authorized
under
this
chapter
,
in
the
same
manner
and
with
the
26
same
effect
as
if
the
excise
taxes
on
equipment
sales
or
use
27
were
retail
sales
taxes
within
the
meaning
of
those
statutes.
28
Notwithstanding
this
subsection
,
the
director
shall
provide
29
for
quarterly
monthly
filing
of
returns
and
for
other
than
30
quarterly
monthly
filing
of
returns
both
as
prescribed
in
31
section
423.31
.
All
taxes
collected
under
this
chapter
by
a
32
retailer
or
any
user
are
deemed
to
be
held
in
trust
for
the
33
state
of
Iowa.
34
Sec.
32.
Section
423G.5,
subsection
3,
Code
2022,
is
amended
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to
read
as
follows:
1
3.
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
through
5
423.35
,
423.37
through
423.42
,
and
423.47
,
consistent
with
the
6
provisions
of
this
chapter
,
shall
apply
with
respect
to
the
tax
7
authorized
under
this
chapter
,
in
the
same
manner
and
with
the
8
same
effect
as
if
the
excise
taxes
on
the
sale
or
furnishing
of
9
a
water
service
were
retail
sales
taxes
within
the
meaning
of
10
those
statutes.
Notwithstanding
this
subsection
,
the
director
11
shall
provide
for
quarterly
monthly
filing
of
returns
and
12
for
other
than
quarterly
monthly
filing
of
returns
both
as
13
prescribed
in
section
423.31
.
All
taxes
collected
under
this
14
chapter
by
a
retailer
or
any
user
are
deemed
to
be
held
in
trust
15
for
the
state
of
Iowa.
16
Sec.
33.
Section
728.1,
subsection
6,
Code
2022,
is
amended
17
to
read
as
follows:
18
6.
“Place
of
business”
means
the
premises
of
a
business
19
required
to
obtain
a
sales
or
use
tax
permit
pursuant
to
20
chapter
423
,
the
premises
of
a
nonprofit
or
not-for-profit
21
organization,
and
the
premises
of
an
establishment
which
is
22
open
to
the
public
at
large
or
where
entrance
is
limited
by
a
23
cover
charge
or
membership
requirement.
24
Sec.
34.
Section
728.5,
subsection
1,
unnumbered
paragraph
25
1,
Code
2022,
is
amended
to
read
as
follows:
26
An
owner,
manager,
or
person
who
exercises
direct
control
27
over
a
place
of
business
required
to
obtain
a
sales
or
use
tax
28
permit
shall
be
guilty
of
a
serious
misdemeanor
under
any
of
29
the
following
circumstances:
30
Sec.
35.
REPEAL.
Section
423.32,
Code
2022,
is
repealed.
31
Sec.
36.
TEMPORARY
PENALTY
AND
INTEREST
GRACE
PERIOD.
A
32
taxpayer
shall
file
a
return
and
pay
tax
pursuant
to
section
33
423.31,
subsection
1,
as
amended
by
this
division
of
this
Act.
34
However,
if
a
taxpayer
is
unable
to
file
a
return
or
pay
tax
in
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accordance
with
the
changes
to
section
423.31,
subsection
1,
1
as
amended
by
this
division
of
this
Act,
by
July
1,
2022,
the
2
taxpayer
shall
file
returns
and
pay
tax
for
tax
periods
ending
3
on
or
before
September
30,
2022,
according
to
the
taxpayer’s
4
registration
as
of
June
30,
2022,
and
such
a
taxpayer
shall
5
not
incur
a
penalty
for
doing
so.
Interest
on
unpaid
payments
6
for
such
taxpayers
unable
to
file
a
return
or
pay
a
tax
in
7
accordance
with
the
changes
to
section
423.31,
subsection
1,
as
8
amended
by
this
division
of
this
Act,
shall
be
suspended
until
9
October
1,
2022.
10
Sec.
37.
AUTHORITY
TO
MODIFY
PERMITS.
Notwithstanding
any
11
provision
of
law
to
the
contrary,
the
department
of
revenue
12
shall
have
authority
to
convert,
renumber,
or
combine
existing
13
sales
tax,
retailer’s
use
tax,
and
consumer’s
use
tax
permits
14
for
taxpayers
holding
multiple
tax
permits
in
accordance
with
15
section
423.31,
subsection
1,
as
amended
by
this
division
of
16
this
Act.
17
Sec.
38.
IMPLEMENTATION
——
EMERGENCY
RULES.
The
department
18
of
revenue
may
adopt
emergency
rules
under
section
17A.4,
19
subsection
3,
and
section
17A.5,
subsection
2,
paragraph
“b”,
20
to
implement
the
provisions
of
this
division
of
this
Act
and
21
the
rules
shall
be
effective
immediately
upon
filing
unless
22
a
later
date
is
specified
in
the
rules.
Any
rules
adopted
23
in
accordance
with
this
section
shall
also
be
published
as
a
24
notice
of
intended
action
as
provided
in
section
17A.4.
25
Sec.
39.
EFFECTIVE
DATE.
The
following,
being
deemed
of
26
immediate
importance,
takes
effect
upon
enactment:
27
The
section
of
this
division
of
this
Act
enacting
emergency
28
rules
relating
to
the
implementation
of
this
division
of
this
29
Act.
30
Sec.
40.
EFFECTIVE
DATE.
The
following
takes
effect
January
31
1,
2023:
32
The
section
of
this
division
of
this
Act
amending
section
33
423.3,
subsection
104,
paragraph
“b”,
subparagraph
(1).
34
DIVISION
II
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SALES
AND
USE
TAX
EXEMPTIONS
1
Sec.
41.
Section
423.3,
subsection
47,
paragraph
a,
2
subparagraph
(4),
Code
2022,
is
amended
by
striking
the
3
subparagraph.
4
Sec.
42.
Section
423.3,
subsection
68,
paragraph
c,
5
subparagraph
(1),
subparagraph
division
(a),
Code
2022,
is
6
amended
to
read
as
follows:
7
(a)
“Clothing”
includes
but
is
not
limited
to
the
8
following:
aprons,
household
and
shop;
athletic
supporters;
9
baby
receiving
blankets;
bathing
suits
and
caps;
beach
capes
10
and
coats;
belts
and
suspenders;
boots;
coats
and
jackets;
11
costumes;
diapers
(children
and
adults,
including
disposable
12
diapers);
earmuffs;
footlets;
formal
wear;
garters
and
garter
13
belts;
girdles;
gloves
and
mittens
for
general
use;
hats
14
and
caps;
hosiery;
insoles
for
shoes;
lab
coats;
neckties;
15
overshoes;
pantyhose;
rainwear;
rubber
pants;
sandals;
16
scarves;
shoes
and
shoelaces;
slippers;
sneakers;
socks
and
17
stockings;
steel-toed
shoes;
underwear;
uniforms,
athletic
and
18
nonathletic;
and
wedding
apparel.
19
Sec.
43.
Section
423.3,
Code
2022,
is
amended
by
adding
the
20
following
new
subsections:
21
NEW
SUBSECTION
.
108.
The
sales
price
from
the
sale
of
22
feminine
hygiene
products.
For
purposes
of
this
subsection,
23
“feminine
hygiene
products”
means
tampons,
panty
liners,
24
menstrual
cups,
sanitary
napkins,
and
other
similar
tangible
25
personal
property
designed
for
feminine
hygiene
in
connection
26
with
the
human
menstrual
cycle.
27
NEW
SUBSECTION
.
109.
The
sales
price
from
the
sale
of
a
28
child
or
adult
diaper,
whether
cloth
or
disposable.
29
Sec.
44.
EFFECTIVE
DATE.
Except
as
otherwise
provided,
this
30
division
of
this
Act
takes
effect
January
1,
2023.
31
Sec.
45.
EFFECTIVE
DATE.
The
following
takes
effect
January
32
1,
2024:
33
The
section
of
this
division
of
this
Act
amending
section
34
423.3,
subsection
47,
paragraph
“a”,
subparagraph
(4).
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DIVISION
III
1
DISTRIBUTIONS
OF
REVENUE
TO
LOCAL
GOVERNMENTS
AND
SCHOOL
2
DISTRICTS
3
Sec.
46.
Section
423B.7,
subsection
2,
paragraph
a,
Code
4
2022,
is
amended
to
read
as
follows:
5
a.
The
director
of
revenue
by
August
15
of
each
fiscal
6
year
the
last
day
of
each
month
shall
send
transfer
to
each
7
city
or
county
where
the
local
option
tax
is
imposed
,
an
8
estimate
of
the
amount
of
tax
moneys
remitted
to
the
department
9
attributable
to
each
city
or
county
will
receive
for
the
year
10
and
for
each
month
of
the
year
from
the
preceding
month
.
At
the
11
end
of
each
month,
the
director
may
revise
the
estimates
for
12
the
year
and
remaining
months.
13
Sec.
47.
Section
423B.7,
subsection
2,
paragraphs
b
and
c,
14
Code
2022,
are
amended
by
striking
the
paragraphs.
15
Sec.
48.
Section
423F.2,
subsection
4,
paragraph
a,
Code
16
2022,
is
amended
to
read
as
follows:
17
a.
The
director
of
revenue
by
August
15
of
each
fiscal
year
18
the
last
day
of
each
month
shall
send
transfer
to
each
school
19
district
an
estimate
of
the
amount
of
tax
moneys
remitted
20
to
the
department
attributable
to
each
school
district
will
21
receive
for
the
year
and
for
each
month
of
the
year
from
the
22
preceding
month
.
At
the
end
of
each
month,
the
director
may
23
revise
the
estimates
for
the
year
and
remaining
months.
24
Sec.
49.
Section
423F.2,
subsection
4,
paragraph
b,
Code
25
2022,
is
amended
by
striking
the
paragraph
and
inserting
in
26
lieu
thereof
the
following:
27
b.
On
or
before
August
15
of
each
fiscal
year
the
director
28
of
revenue
shall
provide
to
each
school
district
an
estimate
29
of
the
amount
of
tax
moneys
to
be
distributed
to
each
school
30
district
for
the
current
fiscal
year.
31
Sec.
50.
Section
423F.2,
subsection
4,
paragraph
c,
Code
32
2022,
is
amended
by
striking
the
paragraph.
33
Sec.
51.
TRANSITION
PROVISION
FOR
LOCAL
OPTION
SALES
TAX
34
AND
SECURING
AN
ADVANCED
VISION
FOR
EDUCATION
——
TRANSFER
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AMOUNTS.
Notwithstanding
any
other
provision
of
law
to
the
1
contrary,
the
department
of
revenue
shall
estimate
monthly
2
local
option
sales
tax
and
securing
an
advanced
vision
for
3
education
transfer
amounts
through
the
end
of
the
2022
calendar
4
year.
The
department
of
revenue
shall
transfer
estimated
5
amounts
to
each
local
government
or
school
district
for
the
6
months
of
July,
August,
and
September
2022.
Beginning
with
the
7
October
2022
transfer,
the
department
shall
not
use
estimated
8
amounts
and
shall
transfer
the
amount
of
tax
attributable
to
9
each
local
government
or
school
district
for
the
tax
remitted
10
in
September
2022.
Any
adjustment
amount
that
is
necessary
to
11
the
July,
August,
or
September
2022
estimated
transfer
amount
12
to
reflect
the
accurate
attributable
amount
shall
be
made
by
13
the
department
of
revenue
or
the
local
government
or
school
14
district
by
the
close
of
business
on
December
30,
2022.
15
DIVISION
IV
16
LIABILITY
OF
SELLERS
USING
CERTIFIED
SERVICE
PROVIDER
17
Sec.
52.
Section
423.48,
subsection
3,
paragraph
a,
Code
18
2022,
is
amended
to
read
as
follows:
19
a.
A
model
1
seller’s
obligation
to
calculate,
collect,
and
20
remit
sales
and
use
taxes
shall
be
performed
by
its
certified
21
service
provider,
except
for
the
seller’s
obligation
to
remit
22
tax
on
its
own
purchases.
As
the
seller’s
agent,
the
certified
23
service
provider
is
liable
for
its
model
1
seller’s
sales
24
and
use
tax
due
Iowa
on
all
sales
transactions
it
processes
25
for
the
seller
except
as
set
out
in
this
section
.
A
seller
26
that
contracts
with
a
certified
service
provider
is
not
27
liable
to
the
state
for
sales
or
use
tax
due
on
transactions
28
processed
by
the
certified
service
provider
unless
the
seller
29
misrepresents
the
types
of
items
or
services
it
sells
or
30
commits
fraud
certified
service
provider
establishes
that
31
the
certified
service
provider
is
not
liable
in
accordance
32
with
the
agreement
.
In
the
absence
of
probable
cause
to
33
believe
that
the
seller
has
committed
fraud
or
made
a
material
34
misrepresentation
liability
relief
established
by
the
certified
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service
provider
,
the
seller
is
not
subject
to
audit
on
the
1
transactions
processed
by
the
certified
service
provider.
2
A
model
1
seller
is
subject
to
audit
for
transactions
not
3
processed
by
the
certified
service
provider.
The
director
is
4
authorized
to
perform
a
system
check
of
the
model
1
seller
and
5
review
the
seller’s
procedures
to
determine
if
the
certified
6
service
provider’s
system
is
functioning
properly
and
the
7
extent
to
which
the
seller’s
transactions
are
being
processed
8
by
the
certified
service
provider.
9
DIVISION
V
10
AUTHORITY
TO
CANCEL
VARIOUS
PERMITS
ISSUED
BY
THE
DEPARTMENT
11
Sec.
53.
Section
421.17,
Code
2022,
is
amended
by
adding
the
12
following
new
subsection:
13
NEW
SUBSECTION
.
37.
Notwithstanding
any
other
provision
14
of
law
to
the
contrary,
to
cancel
the
following
permits
upon
15
verification
by
the
department
of
revenue
the
permits
are
no
16
longer
in
use:
income
tax
withholding,
sales
or
use
tax,
or
17
motor
fuel
tax.
18
DIVISION
VI
19
ECONOMIC
DEVELOPMENT
AUTHORITY
SALES
AND
USE
TAX
REFUND
20
INCENTIVES
21
Sec.
54.
Section
15.331A,
subsection
2,
Code
2022,
is
22
amended
to
read
as
follows:
23
2.
To
receive
the
refund,
a
claim
shall
be
filed
by
the
24
eligible
business
with
the
department
of
revenue
as
follows:
25
a.
The
contractor
or
subcontractor
shall
state
under
oath,
26
on
forms
provided
by
the
department
of
revenue,
the
amount
of
27
the
sales
of
tangible
personal
property
or
services
rendered,
28
furnished,
or
performed
including
water,
sewer,
gas,
and
29
electric
utility
services
upon
which
sales
or
use
tax
has
been
30
paid
prior
to
the
project
contract
completion,
and
shall
file
31
the
forms
with
the
eligible
business
before
final
settlement
32
is
made.
33
b.
The
eligible
business
shall,
not
more
than
one
year
after
34
project
contract
completion,
make
application
to
the
department
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of
revenue
for
any
refund
of
the
amount
of
the
sales
and
use
1
taxes
paid
pursuant
to
chapter
423
upon
any
tangible
personal
2
property,
or
services
rendered,
furnished,
or
performed,
3
including
water,
sewer,
gas,
and
electric
utility
services.
4
The
application
shall
be
made
in
the
manner
and
upon
forms
to
5
be
provided
by
the
department
of
revenue,
and
the
department
of
6
revenue
shall
audit
the
claim
and,
if
approved,
issue
a
warrant
7
to
the
eligible
business
in
the
amount
of
the
sales
or
use
tax
8
which
has
been
paid
to
the
state
of
Iowa
under
a
contract.
The
9
application
must
be
made
within
one
year
after
the
project
10
completion
date.
A
claim
filed
by
the
eligible
business
in
11
accordance
with
this
section
shall
not
be
denied
by
reason
of
a
12
limitation
provision
set
forth
in
chapter
421
or
423
.
13
c.
The
eligible
business
shall
inform
the
department
of
14
revenue
in
writing
after
project
contract
completion.
For
15
purposes
of
this
section
,
“project
completion”
means
the
16
first
date
upon
which
the
average
annualized
production
of
17
finished
product
for
the
preceding
ninety-day
period
at
the
18
manufacturing
facility
operated
by
the
eligible
business
is
19
at
least
fifty
percent
of
the
initial
design
capacity
of
the
20
facility.
21
Sec.
55.
Section
15.331A,
Code
2022,
is
amended
by
adding
22
the
following
new
subsection:
23
NEW
SUBSECTION
.
4.
For
purposes
of
this
section,
“contract
24
completion”
means
the
date
of
completion
of
a
written
contract
25
relating
to
the
construction
or
equipping
of
the
facility
that
26
is
part
of
the
project
of
the
eligible
business.
27
Sec.
56.
Section
15.331C,
subsections
1
and
2,
Code
2022,
28
are
amended
to
read
as
follows:
29
1.
An
In
lieu
of
the
sales
and
use
tax
refund
provided
30
in
section
15.331A,
an
eligible
business
may
claim
a
tax
31
credit
in
an
amount
equal
to
the
sales
and
use
taxes
paid
by
a
32
third-party
developer
under
chapter
423
for
gas,
electricity,
33
water,
or
sewer
utility
services,
goods,
wares,
or
merchandise,
34
or
on
services
rendered,
furnished,
or
performed
to
or
for
a
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contractor
or
subcontractor
and
used
in
the
fulfillment
of
a
1
written
contract
relating
to
the
construction
or
equipping
of
2
a
facility
of
the
eligible
business.
Taxes
attributable
to
3
intangible
property
and
furniture
and
furnishings
shall
not
4
be
included,
but
taxes
attributable
to
racks,
shelving,
and
5
conveyor
equipment
to
be
used
in
a
warehouse
or
distribution
6
center
shall
be
included.
Any
credit
in
excess
of
the
tax
7
liability
for
the
tax
year
may
be
credited
to
the
tax
liability
8
for
the
following
seven
years
or
until
depleted,
whichever
9
occurs
earlier.
An
eligible
business
may
elect
to
receive
a
10
refund
of
all
or
a
portion
of
an
unused
tax
credit.
11
2.
A
third-party
developer
shall
state
under
oath,
on
12
forms
provided
by
the
department
of
revenue,
the
amount
of
13
taxes
paid
as
described
in
subsection
1
and
shall
submit
such
14
forms
to
the
department
of
revenue.
The
taxes
paid
shall
be
15
itemized
to
allow
identification
of
the
taxes
attributable
16
to
racks,
shelving,
and
conveyor
equipment
to
be
used
in
a
17
warehouse
or
distribution
center.
The
eligible
business
18
shall
make
application
to
the
department
of
revenue
in
the
19
manner
and
form
prescribed
by
the
department
of
revenue,
and
20
within
the
time
for
applying
for
a
sales
and
use
tax
refund
21
under
section
15.331A.
After
timely
receiving
the
form
from
22
the
third-party
developer
and
application
from
the
eligible
23
business
,
the
department
of
revenue
shall
audit
the
claim
24
and,
if
approved,
shall
issue
a
tax
credit
certificate
to
the
25
eligible
business
equal
to
the
sales
and
use
taxes
paid
by
a
26
third-party
developer
under
chapter
423
for
gas,
electricity,
27
water,
or
sewer
utility
services,
goods,
wares,
or
merchandise,
28
or
on
services
rendered,
furnished,
or
performed
to
or
for
a
29
contractor
or
subcontractor
and
used
in
the
fulfillment
of
a
30
written
contract
relating
to
the
construction
or
equipping
31
of
a
facility.
The
department
of
revenue
shall
also
issue
a
32
tax
credit
certificate
to
the
eligible
business
equal
to
the
33
taxes
paid
and
attributable
to
racks,
shelving,
and
conveyor
34
equipment
to
be
used
in
a
warehouse
or
distribution
center.
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The
aggregate
combined
total
amount
of
tax
refunds
under
1
section
15.331A
for
taxes
paid
and
attributable
to
racks,
2
shelving,
and
conveyor
equipment
to
be
used
in
a
warehouse
or
3
distribution
center
and
of
tax
credit
certificates
issued
by
4
the
department
of
revenue
under
this
section
for
the
taxes
paid
5
and
attributable
to
racks,
shelving,
and
conveyor
equipment
6
to
be
used
in
a
warehouse
or
distribution
center
shall
not
7
exceed
five
hundred
thousand
dollars
in
a
fiscal
year.
If
8
an
applicant
for
a
tax
credit
certificate
does
not
receive
9
a
refund
or
certificate
for
the
taxes
paid
and
attributable
10
to
racks,
shelving,
and
conveyor
equipment
to
be
used
in
a
11
warehouse
or
distribution
center,
the
application
shall
be
12
considered
in
succeeding
fiscal
years.
The
eligible
business
13
shall
not
claim
a
tax
credit
under
this
section
unless
a
tax
14
credit
certificate
issued
by
the
department
of
revenue
is
15
included
with
the
taxpayer’s
tax
return
for
the
tax
year
for
16
which
the
tax
credit
is
claimed.
A
tax
credit
certificate
17
shall
contain
the
eligible
business’s
name,
address,
tax
18
identification
number,
the
amount
of
the
tax
credit,
and
other
19
information
deemed
necessary
by
the
department
of
revenue.
20
Sec.
57.
Section
15.355,
subsection
2,
Code
2022,
is
amended
21
by
striking
the
subsection
and
inserting
in
lieu
thereof
the
22
following:
23
2.
a.
A
housing
business
may
claim
a
refund
of
the
sales
24
and
use
taxes
paid
under
chapter
423
prior
to
the
completion
25
of
the
housing
project
that
are
directly
related
to
a
housing
26
project
and
specified
in
the
agreement.
27
b.
To
receive
a
refund,
a
claim
shall
be
filed
by
the
28
housing
business
with
the
department
of
revenue
as
follows:
29
(1)
The
contractor
or
subcontractor
shall
state
under
oath,
30
on
forms
provided
by
the
department
of
revenue,
the
amount
31
of
sales
and
use
taxes
paid
under
chapter
423
prior
to
the
32
completion
of
the
housing
project
that
are
directly
related
to
33
a
housing
project
and
specified
in
the
agreement.
34
(2)
The
contractor
or
subcontractor
shall
file
the
forms
35
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with
the
housing
business
before
final
settlement
is
made.
1
(3)
(a)
The
housing
business
shall,
after
the
agreement
2
completion
date,
make
application
to
the
department
of
revenue
3
for
any
refund
of
the
amount
of
sales
and
use
taxes
paid
under
4
chapter
423
prior
to
the
completion
of
the
housing
project
that
5
were
directly
related
to
a
housing
project
and
specified
in
the
6
agreement.
The
application
shall
be
made
in
the
manner
and
7
upon
forms
to
be
provided
by
the
department
of
revenue.
The
8
department
of
revenue
shall
audit
the
claim
and,
if
approved,
9
issue
a
warrant
to
the
housing
business.
The
application
10
must
be
made
within
one
year
after
the
agreement
completion
11
date.
A
claim
filed
by
the
housing
business
in
accordance
with
12
this
subsection
shall
not
be
denied
by
reason
of
a
limitation
13
provision
set
forth
in
chapter
421
or
423.
14
(b)
For
purposes
of
this
subparagraph,
“agreement
completion
15
date”
means
the
date
on
which
the
authority
notifies
the
16
department
of
revenue
that
all
applicable
requirements
of
the
17
agreement
entered
into
pursuant
to
section
15.354,
subsection
18
3,
paragraph
“a”
,
and
all
applicable
requirements
of
this
part,
19
including
the
rules
the
authority
and
the
department
of
revenue
20
adopt
pursuant
to
section
15.356,
are
satisfied.
21
c.
A
contractor
or
subcontractor
who
willfully
makes
a
22
false
claim
under
oath
in
violation
of
the
provisions
of
this
23
subsection
shall
be
guilty
of
a
simple
misdemeanor
and
in
24
addition
to
any
other
penalty,
the
contractor
or
subcontractor
25
shall
be
liable
for
the
payment
of
the
tax
and
any
applicable
26
penalty
and
interest.
27
Sec.
58.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
28
deemed
of
immediate
importance,
takes
effect
upon
enactment.
29
Sec.
59.
APPLICABILITY.
This
division
of
this
Act
applies
30
to
claims
for
refunds
filed
on
or
after
the
effective
date
of
31
this
division
of
this
Act.
32
DIVISION
VII
33
FRANCHISE
TAX
34
Sec.
60.
Section
422.63,
Code
2022,
is
amended
to
read
as
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follows:
1
422.63
Amount
of
tax.
2
1.
The
franchise
tax
is
imposed
annually
in
an
amount
equal
3
to
five
the
percent
specified
in
subsection
2
of
the
net
income
4
received
or
accrued
during
the
taxable
year.
If
the
net
income
5
of
the
financial
institution
is
derived
from
its
business
6
carried
on
entirely
within
the
state,
the
tax
shall
be
imposed
7
on
the
entire
net
income,
but
if
the
business
is
carried
on
8
partly
within
and
partly
without
the
state,
the
portion
of
net
9
income
reasonably
attributable
to
the
business
within
the
state
10
shall
be
specifically
allocated
or
equitably
apportioned
within
11
and
without
the
state
under
rules
of
the
director.
12
2.
a.
For
tax
years
beginning
prior
to
January
1,
2023,
13
five
percent.
14
b.
For
tax
years
beginning
on
or
after
January
1,
2023,
but
15
before
January
1,
2024,
four
and
seven-tenths
percent.
16
c.
For
tax
years
beginning
on
or
after
January
1,
2024,
but
17
before
January
1,
2025,
four
and
four-tenths
percent.
18
d.
For
tax
years
beginning
on
or
after
January
1,
2025,
but
19
before
January
1,
2026,
four
and
one-tenth
percent.
20
e.
For
tax
years
beginning
on
or
after
January
1,
2026,
but
21
before
January
1,
2027,
three
and
eight-tenths
percent.
22
f.
For
tax
years
beginning
on
or
after
January
1,
2027,
23
three
and
one-half
percent.
24
DIVISION
VIII
25
MANUFACTURED
FOOD
——
SALES
TAX
EXEMPTION
26
Sec.
61.
Section
423.3,
subsection
49,
Code
2022,
is
amended
27
to
read
as
follows:
28
49.
a.
The
sales
price
from
the
sale
of
carbon
dioxide
29
in
a
liquid,
solid,
or
gaseous
form,
electricity,
steam,
and
30
other
taxable
services
and
the
lease
or
rental
of
tangible
31
personal
property
when
used
by
a
manufacturer
of
food
products
32
to
primarily
produce
marketable
food
products
for
human
33
consumption
food
or
food
ingredients
,
including
but
not
34
limited
to
treatment
of
material
to
change
its
form,
context,
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or
condition,
in
order
to
produce
the
food
product
or
food
1
ingredients
,
maintenance
of
quality
or
integrity
of
the
2
food
product
or
food
ingredients
,
changing
or
maintenance
of
3
temperature
levels
necessary
to
avoid
spoilage
or
to
hold
the
4
food
product
or
food
ingredients
in
marketable
condition,
5
maintenance
of
environmental
conditions
necessary
for
the
safe
6
or
efficient
use
of
machinery
and
material
used
to
produce
7
the
food
product
or
food
ingredients
,
sanitation
and
quality
8
control
activities,
formation
of
packaging,
placement
into
9
shipping
containers,
and
movement
of
the
material
or
food
10
product
or
food
ingredients
until
shipment
from
the
building
11
of
manufacture.
12
b.
For
purposes
of
this
subsection,
“food
or
food
13
ingredients”
means
the
same
as
“food
and
food
ingredients”
as
14
defined
in
subsection
57,
paragraph
“d”
,
and
includes
tangible
15
personal
property
that
could
be
sold
for
ingestion
or
chewing
16
by
humans
but
is
sold
for
another
use.
17
Sec.
62.
REFUNDS.
Refunds
of
taxes,
interest,
or
penalties
18
which
arise
from
the
enactment
of
this
division
of
this
Act,
19
for
sales
or
services
occurring
between
January
1,
2019,
and
20
the
effective
date
of
this
division
of
this
Act,
shall
be
21
limited
to
one
hundred
thousand
dollars
in
the
aggregate
for
22
any
calendar
year
in
which
claims
are
eligible
for
a
refund
and
23
shall
not
be
allowed
unless
refund
claims
are
filed
by
October
24
1,
2022,
notwithstanding
any
other
law
to
the
contrary.
If
the
25
amount
of
claims
totals
more
than
one
hundred
thousand
dollars
26
in
the
aggregate
for
any
calendar
year
in
which
claims
are
27
eligible
for
a
refund,
the
department
of
revenue
shall
prorate
28
the
one
hundred
thousand
dollars
in
the
aggregate
among
all
the
29
claimants
for
that
particular
calendar
year
in
relation
to
the
30
amounts
of
the
claimants’
valid
claims.
31
Sec.
63.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
32
deemed
of
immediate
importance,
takes
effect
upon
enactment.
33
Sec.
64.
RETROACTIVE
APPLICABILITY.
This
division
of
this
34
Act
applies
retroactively
to
January
1,
2019.
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DIVISION
IX
1
MOTOR
FUEL
REPORTING
REQUIREMENT
——
PENALTY
2
Sec.
65.
Section
452A.33,
subsection
1,
paragraph
c,
Code
3
2022,
is
amended
to
read
as
follows:
4
c.
(1)
The
retail
dealer
shall
prepare
and
submit
file
5
the
report
with
the
department
in
a
manner
and
according
to
6
procedures
required
by
the
department
in
compliance
with
7
section
452A.61
.
However,
the
department
may
require
that
the
8
retail
dealer
file
the
report
with
the
department
by
electronic
9
transmission.
The
department
may
require
that
retail
dealers
10
report
to
the
department
on
an
annual,
quarterly,
or
monthly
11
basis.
The
department,
upon
application
by
a
retail
dealer,
12
may
grant
a
reasonable
extension
of
time
to
file
the
report.
13
(2)
If
a
retail
dealer
fails
to
file
the
report
as
required
14
by
this
section
or
fails
to
maintain
records
required
to
file
15
the
report
the
department
may
impose
a
civil
penalty
of
not
16
more
than
one
hundred
dollars
per
occurrence
in
addition
to
any
17
other
penalty
provided
by
law.
The
penalty
amount
shall
be
18
deposited
into
the
general
fund
of
the
state.
19
DIVISION
X
20
SOLAR
ENERGY
SYSTEM
TAX
CREDIT
21
Sec.
66.
Section
422.11L,
subsection
4,
paragraph
a,
Code
22
2022,
is
amended
to
read
as
follows:
23
a.
The
Except
as
provided
in
subsection
7,
the
cumulative
24
value
of
tax
credits
claimed
annually
by
applicants
pursuant
25
to
this
section
shall
not
exceed
five
million
dollars.
Of
26
this
amount,
at
least
one
million
dollars
shall
be
reserved
27
for
claims
associated
with
or
resulting
from
residential
solar
28
energy
system
installations.
In
the
event
that
the
total
29
amount
of
claims
submitted
for
residential
solar
energy
system
30
installations
in
a
tax
year
is
an
amount
less
than
one
million
31
dollars,
the
remaining
unclaimed
reserved
amount
shall
be
32
made
available
for
claims
associated
with
or
resulting
from
33
nonresidential
solar
energy
system
installations
received
for
34
the
tax
year.
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Sec.
67.
Section
422.11L,
Code
2022,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
7.
a.
Notwithstanding
any
other
law
to
the
3
contrary,
the
department
may
review
or
reconsider
the
following
4
as
if
the
credit
did
not
expire:
5
(1)
Applications
for
installations
that
were
completed
6
prior
to
the
2022
calendar
year
that
were
denied
solely
due
7
to
the
expiration
of
the
credit
provided
in
subsection
1,
8
paragraph
“a”
,
regardless
of
whether
the
applicant
appealed
the
9
denial.
10
(2)
Pending
applications
and
new
applications
for
11
the
credit
provided
in
subsection
1,
paragraph
“a”
,
for
12
installations
that
were
completed
during
the
2021
calendar
year
13
as
long
as
the
application
is
received
by
June
30,
2022.
14
(3)
The
department
shall
use
the
original
submission
date
of
15
applications
described
in
this
paragraph
to
determine
the
order
16
for
reviewing
such
applications.
17
b.
The
cumulative
value
of
tax
credits
in
subsection
3,
18
paragraph
“d”
,
subparagraph
(2),
shall
not
limit
the
amount
of
19
annual
tax
credits
that
may
be
awarded
for
valid
applications
20
that
qualify
pursuant
to
this
subsection.
21
c.
A
tax
credit
awarded
pursuant
to
this
subsection
may
22
be
first
claimed
for
the
tax
year
beginning
during
the
2022
23
calendar
year.
24
Sec.
68.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
25
deemed
of
immediate
importance,
takes
effect
upon
enactment.
26
Sec.
69.
RETROACTIVE
APPLICABILITY.
A
tax
credit
27
award
issued
pursuant
to
this
division
of
this
Act
applies
28
retroactively
to
tax
years
beginning
on
or
after
January
1,
29
2022.
30
DIVISION
XI
31
INDIVIDUAL
INCOME
TAX
EXCLUSION
——
CERTAIN
PREMIUM
PAY
AND
32
BONUSES
33
Sec.
70.
Section
422.7,
Code
2022,
is
amended
by
adding
the
34
following
new
subsection:
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NEW
SUBSECTION
.
63.
a.
(1)
Subtract
to
the
extent
1
included
the
amount,
not
to
exceed
one
thousand
dollars,
of
2
premium
pay,
as
defined
in
42
U.S.C.
§802(g)(3),
received
by
a
3
certified
peace
officer
who
was
designated
by
the
governor
as
4
an
eligible
worker
under
42
U.S.C.
§802(g)(2).
5
(2)
Subtract,
to
the
extent
included,
the
amount,
not
6
to
exceed
one
thousand
dollars,
of
premium
pay,
as
defined
7
in
42
U.S.C.
§802(g)(3),
received
by
a
correctional
officer
8
or
medical
staff
member
at
a
correctional
facility
who
was
9
designated
by
the
governor
as
an
eligible
worker
under
42
10
U.S.C.
§802(g)(2).
11
(3)
Subtract
to
the
extent
included
the
amount,
not
to
12
exceed
one
thousand
dollars,
of
premium
pay,
as
defined
in
13
42
U.S.C.
§802(g)(3),
received
by
a
teacher
employed
by
an
14
independently
accredited
school
or
a
teacher
employed
by
the
15
state
who
was
designated
by
the
governor
as
an
eligible
worker
16
under
42
U.S.C.
§802(g)(2).
17
(4)
Subtract
to
the
extent
included
the
amount
of
a
teacher
18
retention
payment,
not
to
exceed
one
thousand
dollars,
received
19
by
a
teacher
that
was
funded
from
moneys
received
by
the
state
20
from
the
elementary
and
secondary
school
emergency
relief
21
funds
pursuant
to
the
federal
Coronavirus
Response
and
Relief
22
Supplemental
Appropriations
Act,
2021,
Pub.
L.
No.
116-260,
23
or
the
federal
American
Rescue
Plan
Act
of
2021,
Pub.
L.
No.
24
117-2.
25
(5)
Subtract
to
the
extent
included
the
amount
of
a
26
teacher
retention
payment,
not
to
exceed
one
thousand
dollars,
27
received
by
a
teacher
employed
by
a
private
school
or
specially
28
accredited
school,
that
was
funded
from
the
private
sector
29
worker
premium
pay
program
administered
by
the
department
of
30
education
that
was
funded
from
state
moneys.
31
(6)
Subtract
to
the
extent
included
the
amount
of
a
32
recruitment
and
retention
bonus,
not
to
exceed
one
thousand
33
dollars,
received
by
a
child
care
worker
through
the
34
recruitment
and
retention
bonus
program
administered
by
the
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department
of
human
services.
1
b.
An
employer
or
any
payor
of
an
amount
to
an
individual
2
under
paragraph
“a”
pursuant
to
a
program
described
in
paragraph
3
“a”
shall
report
the
amount
paid
to
each
individual
to
the
4
department
of
revenue
in
the
manner
and
form
required
by
the
5
department.
6
c.
Notwithstanding
any
provision
of
law
to
the
contrary,
7
public
records
related
to
the
distribution
of
funds
under
8
this
subsection
shall
be
kept
confidential
to
the
extent
that
9
the
release
of
such
information
would
reveal
the
personal
10
identifying
information
of
a
peace
officer
defined
in
section
11
801.4,
subsection
11.
12
d.
The
department
may
adopt
rules
pursuant
to
chapter
17A
13
to
administer
this
subsection.
14
e.
This
subsection
is
repealed
January
1,
2026.
15
Sec.
71.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
16
deemed
of
immediate
importance,
takes
effect
upon
enactment.
17
Sec.
72.
RETROACTIVE
APPLICABILITY.
This
division
of
this
18
Act
applies
retroactively
to
January
1,
2022,
for
tax
years
19
beginning
on
or
after
January
1,
2022,
but
before
January
1,
20
2023,
for
payments
received
in
the
2022
calendar
year.
>
21
2.
Title
page,
by
striking
lines
1
through
7
and
inserting
22
<
An
Act
relating
to
state
taxation
by
specifying
when
returns
23
are
due,
striking
sales
tax
exemptions
and
exempting
other
24
products,
and
modifying
distributions
of
revenue
to
local
25
governments
and
school
districts,
the
liability
of
sellers,
26
the
franchise
tax,
motor
fuel
tax
reporting,
tax
refunds
and
27
credits,
and
the
individual
state
income
tax,
and
providing
28
penalties,
and
including
effective
date,
applicability,
and
29
retroactive
applicability
provisions.
>
30
______________________________
HEIN
of
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#2.