Senate Study Bill 1312





                                       SENATE FILE       
                                       BY  (PROPOSED COMMITTEE ON
                                            WAYS AND MEANS BILL BY
                                            CO=CHAIRPERSON ZIEMAN)


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

                                      A BILL FOR

  1 An Act providing for an exemption from sales and use taxes for
  2    specific items used in livestock and plant production,
  3    providing a refund, and including effective and retroactive
  4    applicability date provisions.
  5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  6 TLSB 3621SC 81
  7 mg/cf/24

PAG LIN



  1  1    Section 1.  Section 423.3, subsection 11, unnumbered
  1  2 paragraph 1, Code 2005, is amended to read as follows:
  1  3    The sales price exclusive of services of farm machinery and
  1  4 equipment, including auxiliary attachments which improve the
  1  5 performance, safety, operation, or efficiency of the machinery
  1  6 and equipment, and including auger systems, curtains and
  1  7 curtain systems, drip systems, fans, shutters, refrigerators,
  1  8 and washing machines and dryers, and replacement parts, if all
  1  9 of the following conditions are met:
  1 10    Sec. 2.  REFUNDS.  Refunds of taxes, interest, or penalties
  1 11 which arise from claims resulting from the amendment of
  1 12 section 423.2, subsection 11, in this Act, for the exemption
  1 13 of sales of auger systems, curtains and curtain systems, drip
  1 14 systems, fans, shutters, refrigerators, and washing machines
  1 15 and dryers occurring between January 1, 1992, and the
  1 16 effective date of this Act, shall be limited to twenty=five
  1 17 thousand dollars in the aggregate and shall not be allowed
  1 18 unless refund claims are filed prior to October 1, 2005,
  1 19 notwithstanding any other provision of law.  If the amount of
  1 20 claims totals more than twenty=five thousand dollars in the
  1 21 aggregate, the department of revenue shall prorate the twenty=
  1 22 five thousand dollars among all claimants in relation to the
  1 23 amounts of the claimants' valid claims.  Claimants shall not
  1 24 be entitled to interest on any refunds.
  1 25    Sec. 3.  EFFECTIVE DATE AND RETROACTIVE APPLICABILITY
  1 26 PROVISION.  This Act, being deemed of immediate importance,
  1 27 takes effect upon enactment and applies retroactively to
  1 28 January 1, 1992.
  1 29                           EXPLANATION
  1 30    This bill adds to the exemption from the sales and use
  1 31 taxes of the sales of farm machinery and equipment to include
  1 32 auger systems, curtains and curtain systems, drip systems,
  1 33 fans, shutters, refrigerators, and washing machines and
  1 34 dryers.  The exemption of these additional items is
  1 35 retroactive to sales occurring on or after January 1, 1992.
  2  1 Because of the retroactivity, a provision for refund of taxes,
  2  2 interest, and penalties is included in the bill.  However, the
  2  3 claims for refunds are limited to $25,000 in the aggregate,
  2  4 and claims must be filed by October 1, 2005.
  2  5    The bill takes effect upon enactment and applies
  2  6 retroactively to January 1, 1992.
  2  7 LSB 3621SC 81
  2  8 mg:rj/cf/24