House Study Bill 78



                                     HOUSE FILE       
                                     BY  (PROPOSED COMMITTEE ON WAYS
                                          AND MEANS BILL BY
                                          CHAIRPERSON VAN FOSSEN)


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

                                      A BILL FOR

  1 An Act relating to the establishment of an industrial processing
  2    exemption study committee and including an effective date.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 1889HC 81
  5 mg/pj/5

PAG LIN



  1  1    Section 1.  INDUSTRIAL PROCESSING EXEMPTION STUDY
  1  2 COMMITTEE.  Upon enactment of this Act, the department of
  1  3 revenue shall initiate and coordinate the establishment of an
  1  4 industrial processing exemption study committee and provide
  1  5 staffing assistance to the committee.  It is the intent of the
  1  6 general assembly that the committee shall include
  1  7 representatives of the department of revenue, department of
  1  8 management, industrial producers including manufacturers,
  1  9 fabricators, printers and publishers, and an association that
  1 10 specifically represents business tax issues, and other
  1 11 stakeholders.
  1 12    The industrial processing exemption under the sales and use
  1 13 tax is a significant exemption for business.  The committee
  1 14 shall study and make legislative and administrative
  1 15 recommendations relating to Iowa's processing exemption to
  1 16 ensure maximum utilization by Iowa's industries.
  1 17    The committee shall study and make recommendations
  1 18 regarding all of the following:
  1 19    1.  The current sales and use tax industrial processing
  1 20 exemption.
  1 21    2.  The corresponding administrative rules, including a
  1 22 review and recommendation of an administrative rules process
  1 23 relating to the industrial processing exemption prior to
  1 24 filing with the administrative rules review committee.
  1 25    3.  Other states' industrial processing exemptions.
  1 26    4.  Recommendations for change for issues including
  1 27 effectiveness and competitiveness.
  1 28    5.  Development of additional publications to improve
  1 29 compliance.
  1 30    The committee shall annually report to the general assembly
  1 31 by January 1 of each year through January 1, 2013.
  1 32    Sec. 2.  EFFECTIVE DATE.  This Act, being deemed of
  1 33 immediate importance, takes effect upon enactment.
  1 34                           EXPLANATION
  1 35    This bill requires the department of revenue to establish
  2  1 and provide staffing for a study committee to study and make
  2  2 recommendations relating to the sales tax exemption for
  2  3 industrial processing.  Membership of this committee would
  2  4 include representatives of the departments of revenue and
  2  5 management, industrial producers including manufacturers,
  2  6 fabricators, printers, and other stakeholders.  The committee
  2  7 is to report to the general assembly by January 1 of each year
  2  8 through January 1, 2013.
  2  9    The bill takes effect upon enactment.
  2 10 LSB 1889HC 81
  2 11 mg:nh/pj/5