House File 559 - Introduced
HOUSE FILE
BY MILLER
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to cultural and philanthropic initiatives by
2 establishing cultural and entertainment districts; providing
3 sales, services, and use tax refunds, income tax deductions,
4 and tax credits in relation to certain activities in cultural
5 and entertainment districts; making appropriations; and
6 providing contingent effectiveness and retroactive
7 applicability dates.
8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
9 TLSB 2595HH 81
10 tm/cf/24
PAG LIN
1 1 Section 1. NEW SECTION. 15G.111 APPROPRIATIONS.
1 2 1. For the fiscal period beginning July 1, 2005, and
1 3 ending June 30, 2010, there is appropriated each fiscal year
1 4 from the grow Iowa values fund created by enactment of the
1 5 general assembly to the office of the treasurer of state one
1 6 million six hundred thousand dollars for deposit in the Iowa
1 7 cultural trust fund created in section 303A.4.
1 8 2. For the fiscal period beginning July 1, 2005, and
1 9 ending June 30, 2010, there is appropriated each fiscal year
1 10 from the grow Iowa values fund created by enactment of the
1 11 general assembly to the department of economic development
1 12 four hundred thousand dollars for endow Iowa grants to lead
1 13 philanthropic entities pursuant to section 15E.304.
1 14 3. For the fiscal period beginning July 1, 2005, and
1 15 ending June 30, 2010, there is appropriated each fiscal year
1 16 from the grow Iowa values fund created by enactment of the
1 17 general assembly to the general fund of the state four hundred
1 18 thousand dollars for payment of endow Iowa tax credits
1 19 approved pursuant to section 15E.305.
1 20 4. For the fiscal period beginning July 1, 2005, and
1 21 ending June 30, 2010, there is appropriated each fiscal year
1 22 from the grow Iowa values fund created by enactment of the
1 23 general assembly to the department of cultural affairs two
1 24 hundred fifty thousand dollars for the cultural grants program
1 25 established in section 303.3.
1 26 5. Notwithstanding section 8.33, moneys that remain
1 27 unexpended at the end of a fiscal year shall not revert to any
1 28 fund but shall remain available for expenditure for the
1 29 designated purposes during the succeeding fiscal year.
1 30 Sec. 2. NEW SECTION. 303.3B CULTURAL AND ENTERTAINMENT
1 31 DISTRICTS == SALES AND USE TAX REFUNDS.
1 32 1. The department of cultural affairs shall establish and
1 33 administer a cultural and entertainment district certification
1 34 program. The program shall encourage the growth of
1 35 communities through the development of areas within a city or
2 1 county for public and private uses related to cultural
2 2 purposes.
2 3 2. A city or county may create and submit a cultural and
2 4 entertainment district for certification by the department of
2 5 cultural affairs, in consultation with the department of
2 6 economic development. A cultural and entertainment district
2 7 shall consist of a well=defined, compact area that includes
2 8 both residential and commercial property. A cultural and
2 9 entertainment district is encouraged to include a unique form
2 10 of transportation for purposes of transportation within the
2 11 district and for transportation between the district and
2 12 recreational trails. A cultural and entertainment district
2 13 certification shall remain in effect for ten years following
2 14 the date of certification. Two or more cities or counties may
2 15 apply jointly for certification of a district that extends
2 16 across a common boundary. The department of cultural affairs
2 17 shall adopt rules pursuant to chapter 17A for the
2 18 administration of this section and for the development of a
2 19 certification application for use in the certification
2 20 process.
2 21 3. The department of cultural affairs shall encourage
2 22 development projects and activities located in certified
2 23 cultural and entertainment districts through the provision of
2 24 incentives provided under cultural grant programs pursuant to
2 25 section 303.3, chapter 303A, and any other grant programs.
2 26 4. An eligible business may claim a sales, services, and
2 27 use tax refund as provided in section 15.331A for sales,
2 28 services, and use tax paid by the eligible business for gas,
2 29 electricity, water, or sewer utility services, goods, wares,
2 30 or merchandise, or on services rendered, furnished, or
2 31 performed by the eligible business in the construction or
2 32 equipping of a facility located in a cultural and
2 33 entertainment district. For purposes of this section,
2 34 "eligible business" means a contractor or subcontractor
2 35 performing the construction or equipping a facility located in
3 1 a cultural and entertainment district.
3 2 Sec. 3. Section 404A.4, subsection 4, Code 2005, is
3 3 amended to read as follows:
3 4 4. The total amount of tax credits that may be approved
3 5 for a fiscal year under this chapter shall not exceed two
3 6 million four hundred thousand dollars. For the fiscal years
3 7 period beginning July 1, 2005, and July 1, 2006 ending June
3 8 30, 2010, an additional five hundred thousand four million
3 9 dollars of tax credits may be approved each fiscal year for
3 10 purposes of projects located in cultural and entertainment
3 11 districts certified pursuant to section 303.3B. Any of the
3 12 additional tax credits allocated for projects located in
3 13 certified cultural and entertainment districts that are not
3 14 approved during a fiscal year may be carried over to the
3 15 succeeding fiscal year. The department of cultural affairs
3 16 shall establish by rule the procedures for the application,
3 17 review, selection, and awarding of certifications of
3 18 completion. The departments of economic development, cultural
3 19 affairs, and revenue shall each adopt rules to jointly
3 20 administer this subsection and shall provide by rule for the
3 21 method to be used to determine for which fiscal year the tax
3 22 credits are available.
3 23 Sec. 4. Section 422.7, Code 2005, is amended by adding the
3 24 following new subsection:
3 25 NEW SUBSECTION. 44. Subtract, to the extent not otherwise
3 26 excluded, the first twenty=five thousand dollars of the gain
3 27 from the sale of a unique work of art, provided the artist
3 28 lives and works in a cultural and entertainment district
3 29 certified pursuant to 303.3B.
3 30 Sec. 5. RETROACTIVE APPLICABILITY. The section of this
3 31 Act amending section 422.7, relating to an income tax
3 32 deduction, applies retroactively to January 1, 2005, for tax
3 33 years beginning on or after that date.
3 34 Sec. 6. CONTINGENT EFFECTIVENESS. The section of this Act
3 35 enacting section 15G.111, relating to appropriations from the
4 1 grow Iowa values fund, takes effect upon the enactment of
4 2 legislation creating the grow Iowa values fund and board by
4 3 the general assembly during the 2005 legislative session. The
4 4 Code editor shall substitute the appropriate Code reference
4 5 for the phrase "by enactment of the general assembly".
4 6 EXPLANATION
4 7 This bill relates to cultural and philanthropic initiatives
4 8 by establishing cultural and entertainment districts;
4 9 providing sales, services, and use tax refunds, income tax
4 10 deductions, and tax credits in relation to certain activities
4 11 in cultural and entertainment districts; making
4 12 appropriations; and providing contingent effectiveness and
4 13 retroactive applicability dates.
4 14 The bill appropriates moneys from the grow Iowa values fund
4 15 to various entities. The appropriations take effect upon
4 16 enactment of legislation creating the grow Iowa values fund
4 17 and board by the general assembly during the 2005 legislative
4 18 session.
4 19 For the fiscal period beginning July 1, 2005, and ending
4 20 June 30, 2010, the bill appropriates each fiscal year to the
4 21 office of the treasurer of state $1.6 million for deposit in
4 22 the Iowa cultural trust fund.
4 23 For the fiscal period beginning July 1, 2005, and ending
4 24 June 30, 2010, the bill appropriates each fiscal year to the
4 25 department of economic development $400,000 for endow Iowa
4 26 grants to lead philanthropic entities.
4 27 For the fiscal period beginning July 1, 2005, and ending
4 28 June 30, 2010, the bill appropriates each fiscal year to the
4 29 general fund of the state $400,000 for payment of endow Iowa
4 30 tax credits.
4 31 For the fiscal period beginning July 1, 2005, and ending
4 32 June 30, 2010, the bill appropriates each fiscal year to the
4 33 department of cultural affairs $250,000 for the cultural
4 34 grants program.
4 35 The bill provides that moneys that remain unexpended at the
5 1 end of a fiscal year shall not revert to any fund but shall
5 2 remain available for expenditure for the designated purposes
5 3 during the succeeding fiscal year.
5 4 The bill relates to the establishment of cultural and
5 5 entertainment districts. The cultural and entertainment
5 6 district legislation was previously enacted in 2003 and then
5 7 stricken pursuant to Rants v. Vilsack, 684 N.W.2d 193. The
5 8 bill modifies the criteria for certification by the department
5 9 of cultural affairs. The bill provides that a district shall
5 10 consist of a well=defined, compact area that includes both
5 11 residential and commercial property. The bill allows a
5 12 contractor or subcontractor to claim a sales, services, and
5 13 use tax refund for sales, services, and tax paid for gas,
5 14 electricity, water, or sewer utility services, goods, wares,
5 15 or merchandise, or on services rendered, furnished, or
5 16 performed by the contractor or subcontractor in the
5 17 construction or equipping of a facility located in a cultural
5 18 and entertainment district.
5 19 The bill provides that district certification is for a
5 20 period of 10 years and allows for the certification of areas
5 21 that extend across boundaries of cities and counties. The
5 22 bill provides that the department of cultural affairs shall
5 23 encourage development projects and activities located in
5 24 certified cultural and entertainment districts through
5 25 incentives under cultural grant programs and any other grant
5 26 programs.
5 27 The bill relates to rehabilitation project tax credits.
5 28 The bill provides that, for the fiscal year beginning July 1,
5 29 2005, and ending June 30, 2010, $4 million of the
5 30 rehabilitation tax credits may be approved each fiscal year
5 31 for purposes of projects located in certified cultural and
5 32 entertainment districts. The bill allows any additional tax
5 33 credits allocated for projects located in cultural and
5 34 entertainment districts that are not approved during a fiscal
5 35 year to be carried over to the succeeding fiscal year.
6 1 The bill provides a deduction from the income tax of up to
6 2 $25,000 of the gain from the sale of a unique work of art,
6 3 provided the artist lives and works in a cultural and
6 4 entertainment district. The deduction applies retroactively
6 5 to January 1, 2005, for tax years beginning on or after that
6 6 date.
6 7 LSB 2595HH 81
6 8 tm:rj/cf/24.1