House
File
2087
-
Introduced
HOUSE
FILE
2087
BY
JACOBY
and
WAGNER
A
BILL
FOR
An
Act
exempting
from
the
sales
tax
the
services
of
certain
1
executive
search
agencies
and
private
employment
agencies
2
and
including
effective
and
retroactive
applicability
date
3
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
TLSB
5030YH
(7)
83
tw/sc
H.F.
2087
Section
1.
Section
423.2,
subsection
6,
Code
2009,
is
1
amended
to
read
as
follows:
2
6.
a.
The
sales
price
of
any
of
the
following
enumerated
3
services
is
subject
to
the
tax
imposed
by
subsection
4
5:
alteration
and
garment
repair;
armored
car;
vehicle
repair;
5
battery,
tire,
and
allied;
investment
counseling;
service
6
charges
of
all
financial
institutions;
barber
and
beauty;
7
boat
repair;
vehicle
wash
and
wax;
campgrounds;
carpentry;
8
roof,
shingle,
and
glass
repair;
dance
schools
and
dance
9
studios;
dating
services;
dry
cleaning,
pressing,
dyeing,
and
10
laundering;
electrical
and
electronic
repair
and
installation;
11
excavating
and
grading;
farm
implement
repair
of
all
kinds;
12
flying
service;
furniture,
rug,
carpet,
and
upholstery
13
repair
and
cleaning;
fur
storage
and
repair;
golf
and
country
14
clubs
and
all
commercial
recreation;
gun
and
camera
repair;
15
house
and
building
moving;
household
appliance,
television,
16
and
radio
repair;
janitorial
and
building
maintenance
or
17
cleaning;
jewelry
and
watch
repair;
lawn
care,
landscaping,
18
and
tree
trimming
and
removal;
limousine
service,
including
19
driver;
machine
operator;
machine
repair
of
all
kinds;
motor
20
repair;
motorcycle,
scooter,
and
bicycle
repair;
oilers
and
21
lubricators;
office
and
business
machine
repair;
painting,
22
papering,
and
interior
decorating;
parking
facilities;
pay
23
television;
pet
grooming;
pipe
fitting
and
plumbing;
wood
24
preparation;
executive
search
agencies;
private
employment
25
agencies,
excluding
services
for
placing
a
person
in
employment
26
where
the
principal
place
of
employment
of
that
person
is
27
to
be
located
outside
of
the
state;
reflexology;
security
28
and
detective
services;
sewage
services
for
nonresidential
29
commercial
operations;
sewing
and
stitching;
shoe
repair
30
and
shoeshine;
sign
construction
and
installation;
storage
31
of
household
goods,
mini-storage,
and
warehousing
of
raw
32
agricultural
products;
swimming
pool
cleaning
and
maintenance;
33
tanning
beds
or
salons;
taxidermy
services;
telephone
34
answering
service;
test
laboratories,
including
mobile
testing
35
-1-
LSB
5030YH
(7)
83
tw/sc
1/
3
H.F.
2087
laboratories
and
field
testing
by
testing
laboratories,
and
1
excluding
tests
on
humans
or
animals;
termite,
bug,
roach,
and
2
pest
eradicators;
tin
and
sheet
metal
repair;
transportation
3
service
consisting
of
the
rental
of
recreational
vehicles
or
4
recreational
boats,
or
the
rental
of
motor
vehicles
subject
5
to
registration
which
are
registered
for
a
gross
weight
of
6
thirteen
tons
or
less
for
a
period
of
sixty
days
or
less,
or
7
the
rental
of
aircraft
for
a
period
of
sixty
days
or
less;
8
Turkish
baths,
massage,
and
reducing
salons,
excluding
services
9
provided
by
massage
therapists
licensed
under
chapter
152C;
10
water
conditioning
and
softening;
weighing;
welding;
well
11
drilling;
wrapping,
packing,
and
packaging
of
merchandise
other
12
than
processed
meat,
fish,
fowl,
and
vegetables;
wrecking
13
service;
wrecker
and
towing.
14
b.
For
the
purposes
of
this
subsection,
“financial
15
institutions”
means
all
national
banks,
federally
chartered
16
savings
and
loan
associations,
federally
chartered
savings
17
banks,
federally
chartered
credit
unions,
banks
organized
under
18
chapter
524,
savings
and
loan
associations
and
savings
banks
19
organized
under
chapter
534,
credit
unions
organized
under
20
chapter
533,
and
all
banks,
savings
banks,
credit
unions,
and
21
savings
and
loan
associations
chartered
or
otherwise
created
22
under
the
laws
of
any
state
and
doing
business
in
Iowa.
23
Sec.
2.
REFUNDS.
Refunds
of
taxes,
interest,
or
penalties
24
which
arise
from
claims
resulting
from
the
amendment
of
section
25
423.2,
subsection
6,
in
this
Act,
for
the
exemption
of
sales
26
of
executive
search
agencies
and
private
employment
agencies
27
occurring
between
January
1,
2002,
and
the
effective
date
of
28
this
Act,
shall
be
limited
to
fifty
thousand
dollars
in
the
29
aggregate
and
shall
not
be
allowed
unless
refund
claims
are
30
filed
prior
to
October
1,
2010,
notwithstanding
any
other
31
provision
of
law.
If
the
amount
of
claims
totals
more
than
32
fifty
thousand
dollars
in
the
aggregate,
the
department
of
33
revenue
shall
prorate
the
fifty
thousand
dollars
among
all
34
claimants
in
relation
to
the
amounts
of
the
claimants’
valid
35
-2-
LSB
5030YH
(7)
83
tw/sc
2/
3
H.F.
2087
claims.
Claimants
shall
not
be
entitled
to
interest
on
any
1
refunds.
2
Sec.
3.
EFFECTIVE
UPON
ENACTMENT
AND
RETROACTIVE
3
APPLICABILITY.
This
Act,
being
deemed
of
immediate
importance,
4
takes
effect
upon
enactment
and
applies
retroactively
to
5
January
1,
2002.
6
EXPLANATION
7
This
bill
relates
to
the
imposition
of
the
sales
tax
on
8
certain
enumerated
services.
9
Currently,
the
sales
tax
is
imposed
on
the
services
provided
10
by
executive
search
agencies
and
private
employment
agencies.
11
The
bill
exempts
such
agencies’
services
from
the
list
of
12
enumerated
services
upon
which
the
sales
tax
is
imposed.
13
Because
the
exemptions
are
retroactive
to
January
1,
2002,
14
the
bill
provides
for
refunds
of
taxes,
interest,
or
penalties
15
which
arise
from
claims
resulting
from
the
change
to
exemption
16
from
taxation
of
these
services.
These
refunds
are
limited
to
17
$50,000
in
the
aggregate.
Claims
for
refund
must
be
filed
by
18
October
1,
2010.
19
The
bill
takes
effect
upon
enactment
and
applies
20
retroactively
to
January
1,
2002.
21
-3-
LSB
5030YH
(7)
83
tw/sc
3/
3