Senate File 2442 H-8390 Amend Senate File 2442, as passed by the Senate, as follows: 1 1. By striking page 1, line 1, through page 6, line 8, and 2 inserting: 3 < Section 1. Section 423.2, subsection 1, unnumbered 4 paragraph 1, Code 2024, is amended to read as follows: 5 There is imposed a tax of six percent at a rate specified 6 in subsection 12 upon the sales price of all sales of tangible 7 personal property, sold at retail in the state to consumers or 8 users except as otherwise provided in this subchapter . 9 Sec. ___. Section 423.2, subsections 2 and 3, Code 2024, are 10 amended to read as follows: 11 2. A tax of six percent at a rate specified in subsection 12 12 is imposed upon the sales price of the sale or furnishing 13 of gas, electricity, water, heat, pay television service, and 14 communication service, including the sales price from such 15 sales by any municipal corporation or joint water utility 16 furnishing gas, electricity, water, heat, pay television 17 service, and communication service to the public in its 18 proprietary capacity, except as otherwise provided in this 19 subchapter , when sold at retail in the state to consumers or 20 users. 21 3. A tax of six percent at a rate specified in subsection 22 12 is imposed upon the sales price of all sales of tickets 23 or admissions to places of amusement, fairs, and athletic 24 events except those of elementary and secondary educational 25 institutions. A tax of six percent at a rate specified in 26 subsection 12 is imposed on the sales price of an entry fee or 27 like charge imposed solely for the privilege of participating 28 in an activity at a place of amusement, fair, or athletic event 29 unless the sales price of tickets or admissions charges for 30 observing the same activity are taxable under this subchapter . 31 A tax of six percent at a rate specified in subsection 12 32 is imposed upon that part of private club membership fees or 33 charges paid for the privilege of participating in any athletic 34 sports provided club members. 35 -1- SF 2442.4485 (2) 90 jm/jh 1/ 5 #1.

Sec. ___. Section 423.2, subsection 4, paragraph a, Code 1 2024, is amended to read as follows: 2 a. A tax of six percent at a rate specified in subsection 3 12 is imposed upon the sales price derived from the operation 4 of all forms of amusement devices and games of skill, games of 5 chance, raffles, and bingo games as defined in chapter 99B , and 6 card game tournaments conducted under section 99B.27 , that are 7 operated or conducted within the state, the tax to be collected 8 from the operator in the same manner as for the collection of 9 taxes upon the sales price of tickets or admission as provided 10 in this section . Nothing in this subsection shall legalize any 11 games of skill or chance or slot-operated devices which are now 12 prohibited by law. 13 Sec. ___. Section 423.2, subsection 5, Code 2024, is amended 14 to read as follows: 15 5. There is imposed a tax of six percent at a rate specified 16 in subsection 12 upon the sales price from the furnishing of 17 services as defined in section 423.1 . 18 Sec. ___. Section 423.2, subsection 7, paragraph a, 19 unnumbered paragraph 1, Code 2024, is amended to read as 20 follows: 21 A tax of six percent at a rate specified in subsection 12 22 is imposed upon the sales price from the sales, furnishing, or 23 service of solid waste collection and disposal service. 24 Sec. ___. Section 423.2, subsection 8, paragraph a, Code 25 2024, is amended to read as follows: 26 a. A tax of six percent at a rate specified in subsection 27 12 is imposed on the sales price from sales of bundled 28 transactions. For the purposes of this subsection , a “bundled 29 transaction” is the retail sale of two or more distinct and 30 identifiable products, except real property and services to 31 real property, which are sold for one nonitemized price. A 32 “bundled transaction” does not include the sale of any products 33 in which the sales price varies, or is negotiable, based on 34 the selection by the purchaser of the products included in the 35 -2- SF 2442.4485 (2) 90 jm/jh 2/ 5

transaction. 1 Sec. ___. Section 423.2, subsection 9, Code 2024, is amended 2 to read as follows: 3 9. A tax of six percent at a rate specified in subsection 4 12 is imposed upon the sales price from any mobile 5 telecommunications service, including all paging services, 6 that this state is allowed to tax pursuant to the provisions 7 of the federal Mobile Telecommunications Sourcing Act, Pub. 8 L. No. 106-252, 4 U.S.C. §116 et seq. For purposes of this 9 subsection , taxes on mobile telecommunications service, as 10 defined under the federal Mobile Telecommunications Sourcing 11 Act that are deemed to be provided by the customer’s home 12 service provider, shall be paid to the taxing jurisdiction 13 whose territorial limits encompass the customer’s place of 14 primary use, regardless of where the mobile telecommunications 15 service originates, terminates, or passes through and 16 shall in all other respects be taxed in conformity with 17 the federal Mobile Telecommunications Sourcing Act. All 18 other provisions of the federal Mobile Telecommunications 19 Sourcing Act are adopted by the state of Iowa and incorporated 20 into this subsection by reference. With respect to mobile 21 telecommunications service under the federal Mobile 22 Telecommunications Sourcing Act, the director shall, if 23 requested, enter into agreements consistent with the provisions 24 of the federal Act. 25 Sec. ___. Section 423.2, subsection 10, paragraph a, Code 26 2024, is amended to read as follows: 27 a. A tax of six percent at a rate specified in subsection 28 12 is imposed on the sales price of specified digital products 29 sold at retail in the state. The tax applies whether the 30 purchaser obtains permanent use or less than permanent use of 31 the specified digital product, whether the sale is conditioned 32 or not conditioned upon continued payment from the purchaser, 33 and whether the sale is on a subscription basis or is not on a 34 subscription basis. 35 -3- SF 2442.4485 (2) 90 jm/jh 3/ 5

Sec. ___. Section 423.2, subsection 12, Code 2024, is 1 amended by striking the subsection and inserting in lieu 2 thereof the following: 3 12. a. For the period beginning January 1, 2025, and ending 4 December 31, 2050, the sales tax rate is five percent. 5 b. Beginning January 1, 2051, the sales tax rate is four 6 percent. 7 Sec. ___. Section 423.2A, subsection 2, paragraph c, Code 8 2024, is amended to read as follows: 9 c. Transfer one-sixth one-fifth of the remaining revenues 10 to the secure an advanced vision for education fund created in 11 section 423F.2 . This paragraph “c” is repealed January 1, 2051. 12 Sec. ___. Section 423.5, subsection 1, unnumbered paragraph 13 1, Code 2024, is amended to read as follows: 14 Except as provided in paragraph “b” , an An excise tax at the 15 rate of six five percent of the purchase price or installed 16 purchase price is imposed on the following: 17 Sec. ___. Section 423.5, subsection 1, paragraph b, Code 18 2024, is amended to read as follows: 19 b. An excise tax at the rate of five percent is imposed 20 on the The use of vehicles subject only to the issuance of a 21 certificate of title and the use of manufactured housing, and 22 on the use of leased vehicles, if the lease transaction does 23 not require titling or registration of the vehicle, on the 24 amount subject to tax as calculated pursuant to section 423.26, 25 subsection 2. 26 Sec. ___. Section 423.5, subsection 4, Code 2024, is amended 27 to read as follows: 28 4. The use tax rate of six five percent is reduced to five 29 four percent on January 1, 2051. 30 Sec. ___. Section 423.43, subsection 1, paragraph b, Code 31 2024, is amended to read as follows: 32 b. Subsequent to the deposit into the general fund of the 33 state and after the transfer of such revenues collected under 34 chapter 423B , the department shall transfer one-sixth one-fifth 35 -4- SF 2442.4485 (2) 90 jm/jh 4/ 5

of such remaining revenues to the secure an advanced vision for 1 education fund created in section 423F.2 . This paragraph is 2 repealed January 1, 2051. 3 Sec. ___. EFFECTIVE DATE. This division of this Act takes 4 effect January 1, 2025. > 5 2. Title page, line 2, by striking < individual and alternate 6 income tax rates > and inserting < the state sales and use tax > 7 3. By renumbering as necessary. 8 ______________________________ SCHEETZ of Linn -5- SF 2442.4485 (2) 90 jm/jh 5/ 5 #2. #3.