House File 2242
HOUSE FILE
BY D. TAYLOR, SHOULTZ, BERRY,
CONNORS, KUHN, GREIMANN,
PETERSEN, MURPHY, BUKTA,
MASCHER, D. OLSON, FALLON,
OSTERHAUS, WENDT, HUNTER,
DAVITT, T. TAYLOR, LENSING,
MERTZ, MILLER, GASKILL,
FREVERT, JOCHUM, HOGG,
J. K. VAN FOSSEN, TJEPKES,
LUKAN, SCHICKEL, GREINER,
ALONS, DOLECHECK, KRAMER,
BOAL, JONES, HOFFMAN,
and S. OLSON
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to the imposition of a tax on the gross receipts
2 derived from activities of adult enterprises.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
4 TLSB 6045HT 80
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PAG LIN
1 1 Section 1. NEW SECTION. 422F.1 SHORT TITLE.
1 2 This chapter may be cited as the "Adult Enterprises Excise
1 3 Tax Act".
1 4 Sec. 2. NEW SECTION. 422F.2 DEFINITIONS.
1 5 For purposes of this chapter, unless the context otherwise
1 6 requires:
1 7 1. "Adult enterprise" means a business that sells, leases,
1 8 or rents obscene material or allows or permits an entertainer
1 9 to expose the genitalia, buttocks, or the nipple of female
1 10 breasts and the business is prohibited from admitting minors
1 11 to the premises of the business under section 728.3.
1 12 2. "Lease or rental" means any transfer of possession or
1 13 control of tangible personal property for a fixed or
1 14 indeterminate term for consideration. A "lease or rental" may
1 15 include a future option to purchase or extend.
1 16 3. "Obscene material" means the same as the term is
1 17 defined in section 728.1.
1 18 4. "Sales" or "sale" means any transfer, exchange, or
1 19 barter, conditional or otherwise, in any manner or by any
1 20 means whatsoever, for consideration.
1 21 5. "Sales price" means the total amount of consideration,
1 22 including cash, credit, property, and services, for which
1 23 personal property or services are sold, leased, or rented,
1 24 valued in money, whether received in money or otherwise,
1 25 without any deduction of any of the following:
1 26 a. The seller's cost of the property sold.
1 27 b. The cost of materials used, labor or service cost,
1 28 interest, losses, costs of transportation to the seller, taxes
1 29 imposed on the seller, or any other expenses of the seller.
1 30 c. Charges by the seller for any services necessary to
1 31 complete the sale, other than delivery or installation
1 32 charges.
1 33 d. Delivery charges.
1 34 e. Installation charges.
1 35 Sec. 3. NEW SECTION. 422F.3 TAX IMPOSED.
2 1 1. An adult enterprise excise tax according to and
2 2 measured by gross receipts is imposed on an adult enterprise
2 3 for the privilege of doing business in this state as an adult
2 4 enterprise. The tax is imposed at the rate of twenty=five
2 5 percent upon the sales price of the sale, lease, or rental of
2 6 tangible or intangible property, upon the sales price from the
2 7 furnishing of services, and upon the sales price of all sales
2 8 of tickets and admissions by the adult enterprise.
2 9 2. The adult enterprise shall collect the tax by adding
2 10 the tax to the sales price.
2 11 3. The adult enterprise excise tax levied shall be in
2 12 addition to any state sales tax imposed under section 423.2.
2 13 Section 422.25, subsection 4, sections 422.30, 422.67, and
2 14 422.68, section 422.69, subsection 1, sections 422.70 to
2 15 422.75, section 423.14, subsection 1, and sections 423.23,
2 16 423.24, 423.25, 423.31, 423.33, 423.35, 423.37 to 423.42, and
2 17 423.47, consistent with the provisions of this chapter, apply
2 18 with respect to the adult enterprise excise tax authorized
2 19 under this chapter, in the same manner and with the same
2 20 effect as if the tax was a retail sales tax within the meaning
2 21 of those statutes. Notwithstanding this subsection, the
2 22 director of revenue shall provide for quarterly filing of
2 23 returns and for other than quarterly filing of returns, both
2 24 as prescribed in section 423.31. The director of revenue may
2 25 require all persons, as defined in section 423.1, who are
2 26 engaged in the business of deriving any sales price subject to
2 27 tax under this chapter, to register with the department of
2 28 revenue.
2 29 Sec. 4. NEW SECTION. 422F.4 DEPOSIT OF REVENUE.
2 30 The revenue arising from the tax imposed under this chapter
2 31 shall be credited to the victim compensation fund established
2 32 in section 915.94 and is appropriated to the department of
2 33 justice to provide grants to care providers providing services
2 34 to crime victims of domestic abuse or to crime victims of rape
2 35 and sexual assault.
3 1 EXPLANATION
3 2 This bill imposes an adult enterprise excise tax at the
3 3 rate of 25 percent of the sales price of all sales, leases,
3 4 rentals, services furnished, or admissions by an adult
3 5 enterprise. An adult enterprise is a business that sells,
3 6 leases, or rents obscene material or allows or permits an
3 7 entertainer to expose genitalia, buttocks, or the nipple of
3 8 the female breast and the business is prohibited from
3 9 admitting minors. The tax revenues are deposited into the
3 10 victim compensation fund and are appropriated to the
3 11 department of justice for the purposes of providing grants to
3 12 care providers providing services to crime victims of domestic
3 13 abuse or of rape and sexual assault.
3 14 LSB 6045HT 80
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