House File 734 - Introduced HOUSE FILE BY PAULSEN and J.K. VAN FOSSEN Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to the repeal of the sourcing rules under the 2 state sales and use taxes. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2889YH 81 5 mg/sh/8 PAG LIN 1 1 Section 1. Section 423.57, Code 2005, is amended to read 1 2 as follows: 1 3 423.57 STATUTES APPLICABLE. 1 4 The director shall administer this subchapter as it relates 1 5 to the taxes imposed in this chapter in the same manner and 1 6 subject to all the provisions of, and all of the powers, 1 7 duties, authority, and restrictions contained in sections 1 8 423.14,423.15, 423.16, 423.17, 423.18, 423.19, 423.20,1 9 423.21, 423.22, 423.23, 423.24, 423.25, 423.28, 423.29, 1 10 423.31, 423.32, 423.33, 423.34, 423.35, 423.37, 423.38, 1 11 423.39, 423.40, 423.41, and 423.42, section 423.43, subsection 1 12 3, and sections 423.45, 423.46, and 423.47. 1 13 Sec. 2. Section 423B.6, subsection 2, paragraph b, Code 1 14 2005, is amended to read as follows: 1 15 b. The ordinance of a county board of supervisors imposing 1 16 a local sales and services tax shall adopt by reference the 1 17 applicable provisions of the appropriate sections of chapter 1 18 423. All powers and requirements of the director to 1 19 administer the state sales tax law and use tax law are 1 20 applicable to the administration of a local sales and services 1 21 tax law and the local excise tax, including but not limited to 1 22 the provisions of section 422.25, subsection 4, sections 1 23 422.30, 422.67, and 422.68, section 422.69, subsection 1, 1 24 sections 422.70 to 422.75, section 423.14, subsection 1 and 1 25 subsection 2, paragraphs "b" through "e", and sections423.15,1 26 423.23, 423.24, 423.25, 423.31 to 423.35, 423.37 to 423.42, 1 27 423.46, and 423.47. Local officials shall confer with the 1 28 director of revenue for assistance in drafting the ordinance 1 29 imposing a local sales and services tax. A certified copy of 1 30 the ordinance shall be filed with the director as soon as 1 31 possible after passage. 1 32 Sec. 3. Section 423C.4, Code 2005, is amended to read as 1 33 follows: 1 34 423C.4 ADMINISTRATION AND ENFORCEMENT. 1 35 All powers and requirements of the director of revenue to 2 1 administer the state sales tax law under chapter 423 are 2 2 applicable to the administration of the tax imposed under 2 3 section 423C.3, including but not limited to section 422.25, 2 4 subsection 4, sections 422.30, 422.67, and 422.68, section 2 5 422.69, subsection 1, sections 422.70 through 422.75, section 2 6 423.14, subsection 1, and sections423.15,423.23, 423.24, 2 7 423.25, 423.31, 423.33, 423.35 and 423.37 through 423.42, 2 8 423.45, 423.46, and 423.47. However, as an exception to the 2 9 powers specified in section 423.31, the director shall only 2 10 require the filing of quarterly reports. 2 11 Sec. 4. Sections 423.15 through 423.20, Code 2005, are 2 12 repealed. 2 13 EXPLANATION 2 14 This bill repeals the various sourcing rules under the 2 15 state sales and use taxes. These sourcing rules are part of 2 16 the streamlined sales and use tax agreement and provide the 2 17 method for determining which transactions are to be taxed by 2 18 which state. By repealing these rules, the state is basically 2 19 in noncompliance with the streamlined sales and use tax 2 20 agreement as provided for in Code section 423.11(2). 2 21 LSB 2889YH 81 2 22 mg:rj/sh/8