Senate File 2408 - Introduced
SENATE FILE
BY COMMITTEE ON WAYS AND
MEANS
(SUCCESSOR TO SSB 3126)
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to the policy administration of the tax and
2 related laws by the department of revenue, including
3 administration of income, inheritance, and sales and use
4 taxes, and including a retroactive applicability date
5 provision.
6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN
1 1 DIVISION I
1 2 TAX ADMINISTRATION
1 3 Section 1. Section 99B.10B, subsection 2, Code Supplement
1 4 2007, is amended to read as follows:
1 5 2. a. The department shall revoke a registration issued
1 6 pursuant to section 99B.10 or 99B.10A, for a period of ten
1 7 years if a person commits an offense of awarding a cash prize
1 8 in violation of section 99B.10, subsection 1, paragraph "b",
1 9 pursuant to rules adopted by the department. A person whose
1 10 registration is revoked under this subsection who is a person
1 11 for which a class "A", class "B", class "C", special class
1 12 "C", or class "D" liquor control license has been issued
1 13 pursuant to chapter 123 shall have the person's liquor control
1 14 license suspended for a period of fourteen days in the same
1 15 manner as provided in section 123.50, subsection 3, paragraph
1 16 "a". A person whose registration is revoked under this
1 17 subsection who is a person for which only a class "B" or class
1 18 "C" beer permit has been issued pursuant to chapter 123 shall
1 19 have the person's class "B" or class "C" beer permit suspended
1 20 and that person's sales tax permit suspended for a period of
1 21 fourteen days in the same manner as provided in section
1 22 123.50, subsection 3, paragraph "a".
1 23 b. If a person owning or employed by an establishment
1 24 having a class "A", class "B", class "C", special class "C",
1 25 or class "D" liquor control license issued pursuant to chapter
1 26 123 commits an offense of awarding a cash prize in violation
1 27 of section 99B.10, subsection 1, paragraph "b", pursuant to
1 28 rules adopted by the department, the liquor control license of
1 29 the establishment shall be suspended for a period of fourteen
1 30 days in the same manner as provided in section 123.50,
1 31 subsection 3, paragraph "a". If a person owning or employed
1 32 by an establishment having a class "B" or class "C" beer
1 33 permit issued pursuant to chapter 123 awards a cash prize in
1 34 violation of section 99B.10, subsection 1, paragraph "b",
1 35 pursuant to rules adopted by the department, the beer permit
2 1 of the establishment and the establishment's sales tax permit
2 2 shall be suspended for a period of fourteen days in the same
2 3 manner as provided in section 123.50, subsection 3, paragraph
2 4 "a".
2 5 Sec. 2. Section 99B.14, subsection 1, Code 2007, is
2 6 amended to read as follows:
2 7 1. The department may deny, suspend, or revoke a license
2 8 if the department finds that an applicant, licensee, or an
2 9 agent of the licensee violated or permitted a violation of a
2 10 provision of this chapter or a departmental rule adopted
2 11 pursuant to chapter 17A, or for any other cause for which the
2 12 director of the department would be or would have been
2 13 justified in refusing to issue a license, or upon the
2 14 conviction of a person of a violation of this chapter or a
2 15 rule adopted under this chapter which occurred on the licensed
2 16 premises. However, the denial, suspension, or revocation of
2 17 one type of gambling license does not require, but may result
2 18 in, the denial, suspension, or revocation of a different type
2 19 of gambling license held by the same licensee. In addition, a
2 20 person whose license is revoked under this section who is a
2 21 person for which a class "A", class "B", class "C", or class
2 22 "D" liquor control license has been issued pursuant to chapter
2 23 123 shall have the person's liquor control license suspended
2 24 for a period of fourteen days in the same manner as provided
2 25 in section 123.50, subsection 3, paragraph "a". In addition,
2 26 a person whose license is revoked under this section who is a
2 27 person for which only a class "B" or class "C" beer permit has
2 28 been issued pursuant to chapter 123 shall have the person's
2 29 class "B" or class "C" beer permit suspended and that person's
2 30 sales tax permit suspended for a period of fourteen days in
2 31 the same manner as provided in section 123.50, subsection 3,
2 32 paragraph "a".
2 33 Sec. 3. Section 331.434, subsection 1, Code Supplement
2 34 2007, is amended to read as follows:
2 35 1. The budget shall show the amount required for each
3 1 class of proposed expenditures, a comparison of the amounts
3 2 proposed to be expended with the amounts expended for like
3 3 purposes for the two preceding years, the revenues from
3 4 sources other than property taxation, and the amount to be
3 5 raised by property taxation, in the detail and form prescribed
3 6 by the director of the department of management. For each
3 7 county that has established an urban renewal area, the budget
3 8 shall include estimated and actual tax increment financing
3 9 revenues and all estimated and actual expenditures of the
3 10 revenues, proceeds from debt and all estimated and actual
3 11 expenditures of the debt proceeds, and identification of any
3 12 entity receiving a direct payment of taxes funded by tax
3 13 increment financing revenues and shall include the total
3 14 amount of loans, advances, indebtedness, or bonds outstanding
3 15 at the close of the most recently ended fiscal year, which
3 16 qualify for payment from the special fund created in section
3 17 403.19, including interest negotiated on such loans, advances,
3 18 indebtedness, or bonds. For purposes of this subsection,
3 19 "indebtedness" includes written agreements whereby the county
3 20 agrees to suspend, abate, exempt, rebate, refund, or reimburse
3 21 property taxes, provide a grant for property taxes paid, or
3 22 make a direct payment of taxes, with moneys in the special
3 23 fund. The amount of loans, advances, indebtedness, or bonds
3 24 shall be listed in the aggregate for each county reporting.
3 25 The county finance committee, in consultation with the
3 26 department of management and the legislative services agency,
3 27 shall determine reporting criteria and shall prepare a form
3 28 for reports filed with the department pursuant to this
3 29 section. The department shall make the information available
3 30 by electronic means.
3 31 Sec. 4. Section 384.16, subsection 1, unnumbered paragraph
3 32 2, Code Supplement 2007, is amended to read as follows:
3 33 A budget must show comparisons between the estimated
3 34 expenditures in each program in the following year, the latest
3 35 estimated expenditures in each program in the current year,
4 1 and the actual expenditures in each program from the annual
4 2 report as provided in section 384.22, or as corrected by a
4 3 subsequent audit report. Wherever practicable, as provided in
4 4 rules of the committee, a budget must show comparisons between
4 5 the levels of service provided by each program as estimated
4 6 for the following year, and actual levels of service provided
4 7 by each program during the two preceding years. For each city
4 8 that has established an urban renewal area, the budget shall
4 9 include estimated and actual tax increment financing revenues
4 10 and all estimated and actual expenditures of the revenues,
4 11 proceeds from debt and all estimated and actual expenditures
4 12 of the debt proceeds, and identification of any entity
4 13 receiving a direct payment of taxes funded by tax increment
4 14 financing revenues and shall include the total amount of
4 15 loans, advances, indebtedness, or bonds outstanding at the
4 16 close of the most recently ended fiscal year, which qualify
4 17 for payment from the special fund created in section 403.19,
4 18 including interest negotiated on such loans, advances,
4 19 indebtedness, or bonds. For purposes of this subsection,
4 20 "indebtedness" includes written agreements whereby the city
4 21 agrees to suspend, abate, exempt, rebate, refund, or reimburse
4 22 property taxes, provide a grant for property taxes paid, or
4 23 make a direct payment of taxes, with moneys in the special
4 24 fund. The amount of loans, advances, indebtedness, or bonds
4 25 shall be listed in the aggregate for each city reporting. The
4 26 city finance committee, in consultation with the department of
4 27 management and the legislative services agency, shall
4 28 determine reporting criteria and shall prepare a form for
4 29 reports filed with the department pursuant to this section.
4 30 The department shall make the information available by
4 31 electronic means.
4 32 Sec. 5. Section 421.17, Code 2007, is amended by adding
4 33 the following new subsection:
4 34 NEW SUBSECTION. 30. If a natural disaster is declared by
4 35 the governor in any area of the state, the director may extend
5 1 for a period of up to one year the due date for the filing of
5 2 any tax return and may suspend any associated penalty or
5 3 interest that would accrue during that period of time for any
5 4 affected taxpayer whose principal residence or business is
5 5 located in the covered area if the director determines it
5 6 necessary for the efficient administration of the tax laws of
5 7 this state.
5 8 Sec. 6. Section 421.60, subsection 8, Code 2007, is
5 9 amended to read as follows:
5 10 8. REFUND OF UNTIMELY ASSESSED TAXES. Notwithstanding any
5 11 other refund statute, if it appears that an amount of tax,
5 12 penalty, or interest has been paid to the department after the
5 13 expiration of the statute of limitations for the department to
5 14 determine and assess or collect the amount of such tax due,
5 15 then the amount paid shall be credited against another tax
5 16 liability of the taxpayer which is outstanding, if the statute
5 17 of limitations for assessment or collection of that other tax
5 18 has not expired or the amount paid shall be refunded to the
5 19 person or, with the person's approval, credited to tax to
5 20 become due. An application for refund or credit under this
5 21 subsection must be filed within one year of payment. This
5 22 subsection shall not be construed to prohibit the department
5 23 from offsetting the refund claim against any tax due, if the
5 24 statute of limitations for that other tax has not expired.
5 25 However, any tax, penalty, or interest due for which a notice
5 26 of assessment was not issued by the department but which was
5 27 voluntarily paid by a taxpayer after the expiration of the
5 28 statute of limitations for assessment shall not be refunded.
5 29 DIVISION II
5 30 INCOME TAX
5 31 Sec. 7. Section 422.24A, Code 2007, is repealed.
5 32 Sec. 8. RETROACTIVE APPLICABILITY DATE. The section of
5 33 this division of this Act repealing section 422.24A applies
5 34 retroactively to January 1, 2008, for tax years beginning on
5 35 or after that date.
6 1 DIVISION III
6 2 INHERITANCE TAX
6 3 Sec. 9. Section 12D.9, Code 2007, is amended by adding the
6 4 following new subsection:
6 5 NEW SUBSECTION. 3. State inheritance tax treatment of
6 6 interests in Iowa educational savings plans shall be as
6 7 provided in section 450.4, subsection 10. This subsection
6 8 shall apply to all Iowa educational savings plans existing on
6 9 or after July 1, 1998.
6 10 Sec. 10. Section 450.4, Code Supplement 2007, is amended
6 11 by adding the following new subsection:
6 12 NEW SUBSECTION. 10. On the value of any interest in a
6 13 qualified tuition plan, as defined in section 529 of the
6 14 Internal Revenue Code, to the same extent to which the value
6 15 is excluded from the decedent's gross estate for federal
6 16 estate tax purposes. This subsection shall apply to all
6 17 qualified tuition plans that are in existence on or after July
6 18 1, 1998.
6 19 EXPLANATION
6 20 DIVISION I == TAX ADMINISTRATION. Code sections 99B.10B
6 21 and 99B.14 are amended to remove the authorization of the
6 22 department of inspections and appeals to suspend a person's
6 23 sales tax permit for a violation of Code chapter 99B, relating
6 24 to games of skill or chance and raffles.
6 25 Code sections 331.434 and 384.16 are amended by eliminating
6 26 the requirement for the county finance and city finance
6 27 committees to determine the budget and indebtedness reporting
6 28 criteria and the forms to be used for such reporting.
6 29 Code section 421.17 is amended by adding new subsection 30
6 30 to permit the director to extend the period of time for filing
6 31 tax returns and to suspend any penalty or interest associated
6 32 with those returns for taxpayers residing in an area declared
6 33 as a disaster area by the governor.
6 34 Code section 421.60, subsection 8, is amended to provide
6 35 that any tax, penalty, or interest due which was voluntarily
7 1 paid by a taxpayer after the expiration of the statute of
7 2 limitations for assessment, and a notice of assessment was not
7 3 issued by the department, shall not be refunded.
7 4 DIVISION II == INCOME TAX. Code section 422.24A is
7 5 repealed. This section provides for a start=up business tax
7 6 deferment whereby taxable income for the first three years
7 7 that an eligible business is in operation can be deferred.
7 8 Since this provision was enacted in 2002, no businesses have
7 9 applied for this deferral. This provision applies
7 10 retroactively to January 1, 2008, for tax years beginning on
7 11 or after that date.
7 12 DIVISION III == INHERITANCE TAX. Code sections 12D.9 and
7 13 450.4 are amended to exempt from the state inheritance tax the
7 14 value of any interest in an Iowa educational savings plan and
7 15 other section 529 of the Internal Revenue Code plans. The
7 16 exemptions apply to such plans in existence on or after July
7 17 1, 1998.
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