House File 26

                                       HOUSE FILE       
                                       BY  J.K. VAN FOSSEN, WISE,
                                           and VAN ENGELENHOVEN


    Passed House, Date                Passed Senate,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to the exemption of mold making equipment and
  2    materials used in the mold making process from sales and use
  3    taxes, providing refunds, and including effective and
  4    retroactive applicability date provisions.
  5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  6 TLSB 1455HT 80
  7 mg/sh/8

PAG LIN

  1  1    Section 1.  Section 422.45, Code 2003, is amended by adding
  1  2 the following new subsection:
  1  3    NEW SUBSECTION.  64.  The gross receipts from the sale or
  1  4 rental of mold making equipment, sand, and chemicals directly
  1  5 and primarily used in the mold making process by a foundry.
  1  6    Sec. 2.  REFUNDS.  Refunds of taxes, interest, or penalties
  1  7 which arise from claims resulting from the enactment of
  1  8 section 422.45, subsection 64, in this Act, for sales or
  1  9 rentals occurring between July 1, 1997, and the effective date
  1 10 of this Act, shall not be allowed unless refund claims are
  1 11 filed prior to October 1, 2003, notwithstanding any other
  1 12 provision of law.
  1 13    Sec. 3.  EFFECTIVE DATE AND RETROACTIVE APPLICABILITY
  1 14 PROVISION.  This Act, being deemed of immediate importance,
  1 15 takes effect upon enactment and applies retroactively to July
  1 16 1, 1997.
  1 17                           EXPLANATION
  1 18    This bill exempts from the sales and use taxes the sale or
  1 19 rental of mold making equipment, sand, and chemicals directly
  1 20 and primarily used by a foundry in the mold making process.
  1 21 Refunds, as a result of this exemption, are allowed if claims
  1 22 are filed prior to October 1, 2003.  The exemption is
  1 23 retroactively applicable to July 1, 1997, for sales or rentals
  1 24 made on or after that date.
  1 25    The bill takes effect upon enactment.
  1 26 LSB 1455HT 80
  1 27 mg/sh/8
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