House File 2407 - Introduced



                                       HOUSE FILE       
                                       BY  REICHERT, SCHUELLER,
                                           MILLER, and MAY


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

                                      A BILL FOR

  1 An Act providing for a sales, services, and use tax refund and
  2    income tax deduction for activities related to a cultural and
  3    entertainment district and including a retroactive
  4    applicability date provision.
  5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  6 TLSB 6162HH 81
  7 mg/cf/24

PAG LIN



  1  1    Section 1.  Section 303.3B, Code Supplement 2005, is
  1  2 amended by adding the following new subsection:
  1  3    NEW SUBSECTION.  4.  An eligible business may claim a
  1  4 sales, services, and use tax refund as provided in section
  1  5 15.331A for sales, services, and use tax paid by the eligible
  1  6 business for gas, electricity, water, or sewer utility
  1  7 services, goods, wares, or merchandise, or for services
  1  8 rendered, furnished, or performed by the eligible business in
  1  9 the construction or equipping of a facility located in a
  1 10 cultural and entertainment district.  For purposes of this
  1 11 subsection, "eligible business" means a contractor or
  1 12 subcontractor performing the construction or equipping of a
  1 13 facility located in a cultural and entertainment district.
  1 14    Sec. 2.  Section 422.7, Code Supplement 2005, is amended by
  1 15 adding the following new subsection:
  1 16    NEW SUBSECTION.  45.  Subtract, to the extent not otherwise
  1 17 excluded, the first twenty=five thousand dollars of the gain
  1 18 from the sale of a unique work of art, provided the artist
  1 19 lives and works in a cultural and entertainment district
  1 20 certified pursuant to section 303.3B.
  1 21    Sec. 3.  RETROACTIVE APPLICABILITY.  The section of this
  1 22 Act amending section 422.7, relating to an income tax
  1 23 deduction, applies retroactively to January 1, 2006, for tax
  1 24 years beginning on or after that date.
  1 25                           EXPLANATION
  1 26    This bill allows a contractor or subcontractor to claim a
  1 27 sales, services, and use tax refund for sales, services, and
  1 28 use tax paid for gas, electricity, water, or sewer utility
  1 29 services, goods, wares, or merchandise, or for services
  1 30 rendered, furnished, or performed by the contractor or
  1 31 subcontractor in the construction or equipping of a facility
  1 32 located in a cultural and entertainment district established
  1 33 in Code section 303.3B.
  1 34    The bill provides a deduction from the income tax of up to
  1 35 $25,000 of the gain from the sale of a unique work of art,
  2  1 provided the artist lives and works in a cultural and
  2  2 entertainment district.  The deduction applies retroactively
  2  3 to January 1, 2006, for tax years beginning on or after that
  2  4 date.
  2  5 LSB 6162HH 81
  2  6 mg:rj/cf/24