House File 341 - Introduced
HOUSE FILE
BY PAULSEN
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to sales and use taxes and including effective
2 date provisions.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
4 TLSB 2369YH 83
5 tw/rj/5
PAG LIN
1 1 Section 1. SALES TAX DECREASE == EFFECTIVE DATE.
1 2 1. Notwithstanding any provision to the contrary in
1 3 section 423.2, the tax imposed upon the sales price of all
1 4 sales of tangible personal property sold at retail in the
1 5 state shall be five and five=eighths of one percent.
1 6 2. This section of this Act takes effect at the end of the
1 7 calendar day on November 1, 2010.
1 8 Sec. 2. SALES TAX INCREASE == EFFECTIVE DATE.
1 9 1. Notwithstanding any provision of law to the contrary,
1 10 the tax imposed upon the sales price of all sales of tangible
1 11 personal property sold at retail in the state shall be six
1 12 percent.
1 13 2. This section of this Act takes effect at the beginning
1 14 of the calendar day on November 3, 2010.
1 15 EXPLANATION
1 16 This bill relates to the sales and use taxes and to a
1 17 proposed amendment to the Iowa constitution dedicating a
1 18 portion of state revenue for purposes of benefiting natural
1 19 resources.
1 20 In 2008, the 82nd General Assembly passed Senate Joint
1 21 Resolution 2002 proposing an amendment to the Constitution of
1 22 the State of Iowa to dedicate a portion of state revenue from
1 23 the tax imposed on certain retail sales of tangible personal
1 24 property and services for the benefit of the state's natural
1 25 resources. The resolution creates a natural resources and
1 26 outdoor recreation trust fund within the state treasury and
1 27 not within the general fund of the state. Moneys in the fund
1 28 cannot be used for any purpose other than protecting and
1 29 enhancing water quality and natural areas in this state
1 30 including parks, trails, and fish and wildlife habitat, and
1 31 conserving agricultural soils in this state. No revenue is
1 32 credited to the fund until the sales and use tax rate is
1 33 increased. Whenever the sales tax is increased, the amount
1 34 generated by the increase is credited to the fund, but the
1 35 amount credited cannot exceed the amount that a sales and use
2 1 tax of 3/8ths of 1 percent would generate.
2 2 Before it can become law, Senate Joint Resolution 2002 must
2 3 be passed by a majority of the 83rd General Assembly and then
2 4 approved by a majority of the voters of Iowa at the 2010
2 5 general election. The 2010 general election will take place
2 6 on November 2. If approved by a majority of Iowa voters, the
2 7 constitution of the state is amended effective as of the date
2 8 of the general election.
2 9 Currently, the sales and use taxes in Iowa are imposed at
2 10 the rate of 6 percent. This bill provides for a decrease in
2 11 the sales and use taxes to 5 and 5/8ths percent. This
2 12 decrease takes effect at the end of the calendar day on
2 13 November 1, 2010. The bill also provides for a sales tax
2 14 increase from 5 and 5/8ths percent to 6 percent, effectively
2 15 restoring the sales and use taxes to their current rate. This
2 16 increase takes effect at the beginning of the calendar day on
2 17 November 3, 2010. If the voters approve the amendment to the
2 18 constitution of the state, this increase of the sales and use
2 19 taxes would trigger the provisions of the constitutional
2 20 amendment, thereby directing revenue to the natural resources
2 21 and outdoor recreation trust fund in an amount not to exceed
2 22 3/8ths of 1 percent.
2 23 LSB 2369YH 83
2 24 tw/rj/5.1