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