House File 867 - Introduced



                                       HOUSE FILE       
                                       BY  COMMITTEE ON WAYS AND MEANS

                                       (SUCCESSOR HSB 283)


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

                                      A BILL FOR

  1 An Act relating to original jurisdiction over actions seeking
  2    declaratory judgments on constitutional nexus issues for sales
  3    or use tax purposes.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 2723HV 81
  6 mg/gg/14

PAG LIN



  1  1    Section 1.  NEW SECTION.  602.6703  DECLARATORY JUDGMENT TO
  1  2 ADJUDICATE CONSTITUTIONAL NEXUS ISSUES REGARDING TAXATION.
  1  3    1.  District courts have original jurisdiction over civil
  1  4 actions seeking declaratory judgment when both of the
  1  5 following apply:
  1  6    a.  The party seeking declaratory relief is a business that
  1  7 is any of the following:
  1  8    (1)  Organized under the laws of this state.
  1  9    (2)  A sole proprietorship owned by a domiciliary of this
  1 10 state.
  1 11    (3)  Authorized to do business in this state.
  1 12    b.  The responding party is a government official of
  1 13 another state, or political subdivision of another state, who
  1 14 asserts that the business in question is obliged to collect
  1 15 sales or use taxes for such state or political subdivision
  1 16 based upon conduct of the business that occurs wholly or
  1 17 partially within that state or political subdivision.
  1 18    2.  A business meeting the requirements and facing the
  1 19 circumstances described in subsection 1 shall be entitled to
  1 20 declaratory relief on the issue of whether the requirement of
  1 21 another state, or political subdivision of another state, that
  1 22 the business collect and remit sales or use taxes to that
  1 23 state, or political subdivision, in the factual circumstances
  1 24 of the business' operations giving rise to the demand,
  1 25 constitutes an undue burden on interstate commerce within the
  1 26 meaning of the Constitution of the United States.
  1 27                           EXPLANATION
  1 28    This bill grants original jurisdiction to Iowa district
  1 29 courts over civil actions seeking declaratory relief that a
  1 30 business which is organized in the state, is a sole
  1 31 proprietorship owned by a domiciliary of the state, or is
  1 32 authorized to do business in this state is unconstitutionally
  1 33 burdened by the requirement of another state to collect sales
  1 34 or use taxes for that state or a political subdivision of that
  1 35 state.
  2  1 LSB 2723HV 81
  2  2 mg:rj/gg/14