House File 856 - Enrolled

PAG LIN

  1  1                                             HOUSE FILE 856
  1  2
  1  3                             AN ACT
  1  4 PROVIDING A SALES AND USE TAX EXEMPTION FOR CERTAIN NONPROFIT
  1  5    ORGANIZATIONS THAT BUILD OR REPAIR LOW=INCOME DWELLINGS.
  1  6
  1  7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  1  8
  1  9    Section 1.  Section 423.3, Code 2005, is amended by adding
  1 10 the following new subsection:
  1 11    NEW SUBSECTION.  85.  The sales price from the sale of
  1 12 building materials, supplies, goods, wares, or merchandise
  1 13 sold to a nonprofit Iowa affiliate of a nonprofit
  1 14 international organization whose primary activity is the
  1 15 promotion of the construction, remodeling, or rehabilitation
  1 16 of one=family or two=family dwellings for use by low=income
  1 17 families and where the building materials, supplies, goods,
  1 18 wares, or merchandise are used in the construction,
  1 19 remodeling, or rehabilitation of such dwellings.
  1 20    Sec. 2.  Section 423.4, subsection 1, Code 2005, is amended
  1 21 to read as follows:
  1 22    1.  A private nonprofit educational institution in this
  1 23 state, nonprofit Iowa affiliate of a nonprofit international
  1 24 organization whose primary activity is the promotion of the
  1 25 construction, remodeling, or rehabilitation of one=family or
  1 26 two=family dwellings for low=income families, nonprofit
  1 27 private museum in this state, tax=certifying or tax=levying
  1 28 body or governmental subdivision of the state, including the
  1 29 state board of regents, state department of human services,
  1 30 state department of transportation, a municipally owned solid
  1 31 waste facility which sells all or part of its processed waste
  1 32 as fuel to a municipally owned public utility, and all
  1 33 divisions, boards, commissions, agencies, or instrumentalities
  1 34 of state, federal, county, or municipal government which do
  1 35 not have earnings going to the benefit of an equity investor
  2  1 or stockholder, may make application to the department for the
  2  2 refund of the sales or use tax upon the sales price of all
  2  3 sales of goods, wares, or merchandise, or from services
  2  4 furnished to a contractor, used in the fulfillment of a
  2  5 written contract with the state of Iowa, any political
  2  6 subdivision of the state, or a division, board, commission,
  2  7 agency, or instrumentality of the state or a political
  2  8 subdivision, a private nonprofit educational institution in
  2  9 this state, a nonprofit Iowa affiliate described in this
  2 10 subsection, or a nonprofit private museum in this state if the
  2 11 property becomes an integral part of the project under
  2 12 contract and at the completion of the project becomes public
  2 13 property, is devoted to educational uses, becomes part of a
  2 14 low=income one=family or two=family dwelling in the state, or
  2 15 becomes a nonprofit private museum; except goods, wares, or
  2 16 merchandise, or services furnished which are used in the
  2 17 performance of any contract in connection with the operation
  2 18 of any municipal utility engaged in selling gas, electricity,
  2 19 or heat to the general public or in connection with the
  2 20 operation of a municipal pay television system; and except
  2 21 goods, wares, and merchandise used in the performance of a
  2 22 contract for a "project" under chapter 419 as defined in that
  2 23 chapter other than goods, wares, or merchandise used in the
  2 24 performance of a contract for a "project" under chapter 419
  2 25 for which a bond issue was approved by a municipality prior to
  2 26 July 1, 1968, or for which the goods, wares, or merchandise
  2 27 becomes an integral part of the project under contract and at
  2 28 the completion of the project becomes public property or is
  2 29 devoted to educational uses.
  2 30    a.  Such contractor shall state under oath, on forms
  2 31 provided by the department, the amount of such sales of goods,
  2 32 wares, or merchandise, or services furnished and used in the
  2 33 performance of such contract, and upon which sales or use tax
  2 34 has been paid, and shall file such forms with the governmental
  2 35 unit, private nonprofit educational institution, nonprofit
  3  1 Iowa affiliate, or nonprofit private museum which has made any
  3  2 written contract for performance by the contractor.  The forms
  3  3 shall be filed by the contractor with the governmental unit,
  3  4 educational institution, nonprofit Iowa affiliate, or
  3  5 nonprofit private museum before final settlement is made.
  3  6    b.  Such governmental unit, educational institution,
  3  7 nonprofit Iowa affiliate, or nonprofit private museum shall,
  3  8 not more than one year after the final settlement has been
  3  9 made, make application to the department for any refund of the
  3 10 amount of the sales or use tax which shall have been paid upon
  3 11 any goods, wares, or merchandise, or services furnished, the
  3 12 application to be made in the manner and upon forms to be
  3 13 provided by the department, and the department shall forthwith
  3 14 audit the claim and, if approved, issue a warrant to the
  3 15 governmental unit, educational institution, nonprofit Iowa
  3 16 affiliate, or nonprofit private museum in the amount of the
  3 17 sales or use tax which has been paid to the state of Iowa
  3 18 under the contract.
  3 19    Refunds authorized under this subsection shall accrue
  3 20 interest at the rate in effect under section 421.7 from the
  3 21 first day of the second calendar month following the date the
  3 22 refund claim is received by the department.
  3 23    c.  Any contractor who willfully makes a false report of
  3 24 tax paid under the provisions of this subsection is guilty of
  3 25 a simple misdemeanor and in addition shall be liable for the
  3 26 payment of the tax and any applicable penalty and interest.
  3 27
  3 28
  3 29                                                             
  3 30                               CHRISTOPHER C. RANTS
  3 31                               Speaker of the House
  3 32
  3 33
  3 34                                                             
  3 35                               JOHN P. KIBBIE
  4  1                               President of the Senate
  4  2
  4  3    I hereby certify that this bill originated in the House and
  4  4 is known as House File 856, Eighty=first General Assembly.
  4  5
  4  6
  4  7                                                             
  4  8                               MARGARET THOMSON
  4  9                               Chief Clerk of the House
  4 10 Approved                , 2005
  4 11
  4 12
  4 13                            
  4 14 THOMAS J. VILSACK
  4 15 Governor