House Study Bill 292 



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


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

                                      A BILL FOR

  1 An Act relating to the repeal of the loan agencies tax.
  2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  3 TLSB 2591YC 82
  4 mg/cf/24

PAG LIN



  1  1    Section 1.  Section 331.401, subsection 1, paragraph k,
  1  2 Code 2007, is amended to read as follows:
  1  3    k.  Levy taxes as certified to it by tax=certifying bodies
  1  4 in the county, in accordance with the statutes authorizing the
  1  5 levies and in accordance with chapter 24 and sections 444.1 to
  1  6 444.8, and levy taxes as required in chapters 430A, 433, 434,
  1  7 437, and 438.
  1  8    Sec. 2.  Section 331.427, subsection 1, unnumbered
  1  9 paragraph 1, Code 2007, is amended to read as follows:
  1 10    Except as otherwise provided by state law, county revenues
  1 11 from taxes and other sources for general county services shall
  1 12 be credited to the general fund of the county, including
  1 13 revenues received under sections 9I.11, 101A.3, 101A.7,
  1 14 123.36, 123.143, 142B.6, 176A.8, 321.105, 321.152, 321G.7,
  1 15 321I.8, section 331.554, subsection 6, sections 341A.20,
  1 16 364.3, 368.21, 423A.7, 428A.8, 430A.3, 433.15, 434.19, 445.57,
  1 17 453A.35, 458A.21, 483A.12, 533.24, 556B.1, 583.6, 602.8108,
  1 18 904.908, and 906.17, and the following:
  1 19    Sec. 3.  Section 441.73, subsection 1, Code 2007, is
  1 20 amended to read as follows:
  1 21    1.  A litigation expense fund is created in the state
  1 22 treasury.  The litigation expense fund shall be used for the
  1 23 payment of litigation expenses incurred by the state to defend
  1 24 property valuations established by the director of revenue
  1 25 pursuant to section 428.24 and chapters 430A, 433, 434, 437,
  1 26 437A, and 438, and for the payment of litigation expenses
  1 27 incurred by the state to defend the imposition of replacement
  1 28 taxes and statewide property taxes under chapter 437A.
  1 29    Sec. 4.  Section 445.3, unnumbered paragraph 2, Code 2007,
  1 30 is amended to read as follows:
  1 31    The commencement of actions for ad valorem taxes authorized
  1 32 under this section shall not begin until the issuance of a tax
  1 33 sale certificate under the requirements of section 446.19.
  1 34 The commencement of actions for all other taxes authorized
  1 35 under this section shall not begin until ten days after the
  2  1 publication of tax sale under the requirements of section
  2  2 446.9, subsection 2.  This paragraph does not apply to the
  2  3 collection of ad valorem taxes under section 445.32, and grain
  2  4 handling taxes under section 428.35, and moneys and credits
  2  5 taxes under chapter 430A.
  2  6    Sec. 5.  Chapter 430A, Code 2007, is repealed.
  2  7                           EXPLANATION
  2  8    This bill repeals the loan agencies tax set forth in Code
  2  9 chapter 430A.  In a ruling dated March 28, 2006, the Polk
  2 10 county district court in General Motors Acceptance Corporation
  2 11 v. Polk County, Iowa, et al., ruled that this tax facially
  2 12 discriminated against interstate commerce and violated the
  2 13 United States Constitution's commerce clause because this tax
  2 14 was only imposed on out=of=state corporations, and was not
  2 15 imposed on Iowa=based corporations.  This tax is no longer
  2 16 being enforced by the department of revenue and the county
  2 17 treasurers who administered and collected this tax.
  2 18 LSB 2591YC 82
  2 19 mg:rj/cf/24