Senate File 393 - Introduced SENATE FILE BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO SSB 1294) Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act authorizing the rebate of state sales tax to the owner or 2 operator of a sanctioned automobile racetrack facility. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 3065SV 81 5 mg/cf/24 PAG LIN 1 1 Section 1. FINDINGS. The general assembly finds that a 1 2 nationally sanctioned automobile racetrack facility in Iowa 1 3 would result in a substantial economic benefit to the state 1 4 and would offer thousands of spectators the opportunity to 1 5 experience and discover Iowa. 1 6 The general assembly further finds that the development of 1 7 the racetrack facility and surrounding entertainment complex 1 8 would enhance the economic development of the area through an 1 9 increase in tourism. 1 10 The general assembly further finds that the rebate of state 1 11 sales tax collected at the racetrack facility and 1 12 entertainment complex to assist in the development of such 1 13 facility and complex would further tourism and is a public 1 14 purpose for which state funds may be used. 1 15 Sec. 2. Section 423.4, Code 2005, is amended by adding the 1 16 following new subsection: 1 17 NEW SUBSECTION. 4. a. For purposes of this subsection: 1 18 (1) "Automobile racetrack facility" means a sanctioned 1 19 automobile racetrack facility located as part of a racetrack 1 20 and entertainment complex located in a city with a population 1 21 of at least fourteen thousand five hundred but not more than 1 22 sixteen thousand five hundred residents, which city is located 1 23 in a county with a population of at least thirty=five thousand 1 24 but not more than forty thousand residents and where the 1 25 construction on the racetrack facility commenced not later 1 26 than one year following the enactment of this Act and the cost 1 27 of the construction upon completion was at least thirty 1 28 million dollars. 1 29 (2) "Owner or operator" means a for=profit entity that is 1 30 the owner or operator of an automobile racetrack facility and 1 31 that is primarily a promoter of motor vehicle races. 1 32 (3) "Population" means the population based upon the 2000 1 33 certified federal census. 1 34 b. The owner or operator of an automobile racetrack 1 35 facility may apply to the department for a rebate of sales tax 2 1 imposed and collected by retailers upon sales of any goods, 2 2 wares, merchandise, or services furnished to purchasers at the 2 3 automobile racetrack facility. 2 4 c. The rebate may be obtained only in the following 2 5 amounts and manner and only under the following conditions: 2 6 (1) On forms furnished by the department within the time 2 7 period provided by the department by rule, which time period 2 8 shall not be longer than quarterly. 2 9 (2) The owner or operator shall provide information as 2 10 deemed necessary by the department. 2 11 (3) The transactions for which sales tax was collected and 2 12 the rebate is sought occurred on or after January 1, 2006, but 2 13 before January 1, 2016. However, not more than twelve million 2 14 five hundred thousand dollars in total rebates shall be 2 15 provided pursuant to this subsection. 2 16 d. To assist the department in determining the amount of 2 17 the rebate, the owner or operator shall identify to the 2 18 department retailers located at the automobile racetrack 2 19 facility who will be collecting sales tax. The department 2 20 shall verify such identity and shall establish a separate 2 21 automobile racetrack facility rebate account in the state 2 22 treasury. The department shall deposit into the rebate 2 23 account all sales taxes received from the identified retailers 2 24 located at the automobile racetrack facility. The moneys in 2 25 the rebate account are appropriated to the department for 2 26 disbursement as provided in this subsection. For purposes of 2 27 this subsection, advance ticket and admissions sales shall be 2 28 considered occurring at the automobile racetrack facility 2 29 regardless of where the transactions actually occur. 2 30 e. Upon determining that the conditions and requirements 2 31 of this subsection and the department are met, the department 2 32 shall issue a warrant to the owner or operator in the amount 2 33 equal to the balance in the rebate account as of the end of 2 34 the month preceding the month the application for a rebate was 2 35 received. 3 1 f. Only the state sales tax is subject to rebate. Any 3 2 local option taxes paid and collected shall not be subject to 3 3 rebate under this subsection. 3 4 g. Any moneys remaining in the rebate account upon the 3 5 repeal of this subsection, as provided in paragraph "h", shall 3 6 be transferred to the general fund of the state. 3 7 h. This subsection is repealed June 30, 2016, or thirty 3 8 days following the date on which twelve million five hundred 3 9 thousand dollars in total rebates have been provided, 3 10 whichever is the earlier. 3 11 EXPLANATION 3 12 This bill authorizes the department of revenue to rebate 3 13 sales tax collected by retailers on purchases made at an 3 14 automobile racetrack facility. To be eligible for the rebate 3 15 the facility must be located in a city, with a population 3 16 between 14,500 and 16,500, which is located in a county with a 3 17 population between 35,000 and 40,000. The person eligible to 3 18 receive the rebate is the owner or operator of the sanctioned 3 19 automobile racetrack facility. Construction on the facility 3 20 must commence not later than one year following enactment of 3 21 the bill and the cost of the construction upon completion must 3 22 be at least $30 million. 3 23 The rebate of sales tax is only of the sales tax collected 3 24 on transactions occurring on or after January 1, 2006, and 3 25 before January 1, 2016. 3 26 The rebate only applies to the state sales tax collected 3 27 and not to any local option sales tax and is limited to a 3 28 total of $12.5 million in rebates. 3 29 The rebate provision is repealed June 30, 2016, or when 3 30 $12.5 million has been rebated, whichever occurs earlier. 3 31 LSB 3065SV 81 3 32 mg:nh/cf/24