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
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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 sections 423.15,
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 sections 423.15, 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
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