House File 2661 - Introduced



                                       HOUSE FILE       
                                       BY  MAY


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

                                      A BILL FOR

  1 An Act providing for the issuance of tax credits to improve
  2    infrastructure.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 6108YH 82
  5 da/rj/14

PAG LIN



  1  1    Section 1.  NEW SECTION.  174.24  ISSUANCE OF TAX CREDIT
  1  2 CERTIFICATES TO SUPPORT INFRASTRUCTURE.
  1  3    1.  A county fair qualifies to receive assistance under
  1  4 this section if all of the following applies:
  1  5    a.  It is located in a county having a population of less
  1  6 than twenty thousand.
  1  7    b.  Its fair event was attended by more than two hundred
  1  8 fifty thousand persons for each of the last three years.
  1  9    2.  The department of revenue shall issue a tax credit
  1 10 certificate to the county fair after calculating the revenue
  1 11 collected from the sales tax imposed upon the retail sales of
  1 12 tangible personal property and the furnishing of enumerated
  1 13 services as provided in chapter 423.  The department shall
  1 14 consider the sales taxes collected by all persons doing
  1 15 business in a city nearest in proximity to the qualifying
  1 16 county fair.  The department shall obtain the amount of the
  1 17 tax credit by subtracting the total amount of the sales tax
  1 18 receipts collected for the same number of days that the fair
  1 19 event is conducted immediately preceding the fair event from
  1 20 the sales tax receipts collected during the days of the fair
  1 21 event.
  1 22    3.  The department of revenue shall deliver the tax credit
  1 23 certificate to the fair within one hundred twenty days from
  1 24 the date that the fair event commenced.  The tax credit
  1 25 certificate shall contain the fair's name, address, tax
  1 26 identification number, the amount of the tax credit, and other
  1 27 information required by the department.
  1 28    4.  The fair may transfer the tax credit to any person.
  1 29    a.  The taxpayer to whom the tax credit has been
  1 30 transferred may claim the amount of the tax credit against any
  1 31 income tax due.  Any credit in excess of the taxpayer's tax
  1 32 liability shall be refunded.  In lieu of claiming a refund,
  1 33 the taxpayer may elect to have the overpayment shown on the
  1 34 taxpayer's final, completed return credited to the tax
  1 35 liability for the following tax year.
  2  1    b.  An individual may claim the tax credit allowed a
  2  2 partnership, limited liability company, S corporation, estate,
  2  3 or trust electing to have the income taxed directly to the
  2  4 individual.  The amount claimed by the individual shall be
  2  5 based upon the pro rata share of the individual's earnings of
  2  6 a partnership, limited liability company, S corporation,
  2  7 estate, or trust.
  2  8                           EXPLANATION
  2  9    This bill provides for the issuance of a tax credit
  2 10 certificate to a qualifying county fair for purposes of
  2 11 supporting infrastructure.  The tax credit certificate
  2 12 evidences a tax credit for an amount calculated on sales tax
  2 13 receipts generated by the local community in proximity to the
  2 14 fair.  The amount is the difference between the tax
  2 15 collections immediately preceding the fair event and the time
  2 16 that the fair event is being conducted.  The bill provides
  2 17 that the fair may transfer the tax credit to another person
  2 18 who may claim the amount of the tax credit on the person's
  2 19 income tax return.
  2 20 LSB 6108YH 82
  2 21 da/rj/14