Senate File 252 - Introduced SENATE FILE BY HATCH Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act creating an excise tax on paint, primer, and specialty 2 finish and directing moneys to fund the childhood lead 3 poisoning prevention program. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 2242XS 83 6 ak/mg:sc/14 PAG LIN 1 1 Section 1. NEW SECTION. 135.105E PAINT EXCISE TAX. 1 2 1. a. An excise tax of twenty=five cents is imposed on 1 3 each container of paint, primer, and specialty finish sold. 1 4 b. This section does not apply to stains, sealers, or 1 5 spray paints. 1 6 2. The excise tax as established in subsection 1 is 1 7 imposed on paint, primer, and specialty finish sold or used in 1 8 the state of Iowa. This excise tax shall be collected and 1 9 paid over to the department of revenue by any retailer, 1 10 retailer maintaining a place of business in this state, or 1 11 user who would be responsible for collection and payment of 1 12 the excise tax as if it were a sales or use tax imposed under 1 13 chapter 423. A user of paint, primer, or specialty finish in 1 14 this state is not subject to this excise tax if the paint, 1 15 primer, or specialty finish was subject to the excise tax at 1 16 the time of the sale of the paint, primer, or speciality 1 17 finish and the user has paid the excise tax. 1 18 3. a. The director of revenue shall administer the excise 1 19 tax on the sale and use of paint, primer, and specialty finish 1 20 as nearly as possible in conjunction with the administration 1 21 of the state sales and use tax law, except that portion of the 1 22 law which implements the streamlined sales and use tax 1 23 agreement. The director shall provide appropriate forms, or 1 24 provide on the regular state tax forms, for reporting the sale 1 25 and use of paint, primer, and specialty finish excise tax 1 26 liability. All moneys received and all refunds shall be 1 27 deposited in or withdrawn from the lead paint clean=up fund as 1 28 established in section 135.105F. 1 29 b. The director may require all persons who are engaged in 1 30 the business of deriving any income from the use of paint, 1 31 primer, or specialty finish subject to tax under this section 1 32 to register with the department. The director may also 1 33 require a tax permit applicable only to this section for any 1 34 retailer not collecting, or any user not paying, taxes under 1 35 chapter 423. 2 1 c. Section 422.25, subsection 4, sections 422.30, 422.67, 2 2 and 422.68, section 422.69, subsection 1, sections 422.70, 2 3 422.71, 422.72, 422.74, and 422.75, section 423.14, subsection 2 4 1, and sections 423.23, 423.24, 423.25, 423.31 through 423.35, 2 5 423.37 through 423.42, 423.45, 423.46, and 423.47, consistent 2 6 with the provisions of this section, apply with respect to the 2 7 tax authorized under this section, in the same manner and with 2 8 the same effect as if the excise taxes on paint, primer, or 2 9 specialty finish sales or uses were retail sales taxes within 2 10 the meaning of those statutes. Notwithstanding this 2 11 paragraph, the director shall provide for quarterly filing of 2 12 returns and for other than quarterly filing of returns both as 2 13 prescribed in section 423.31. All taxes collected under this 2 14 section by a retailer or any user are deemed to be held in 2 15 trust for the state of Iowa. 2 16 Sec. 2. NEW SECTION. 135.105F LEAD PAINT CLEAN=UP FUND. 2 17 1. A lead paint clean=up fund is created in the state 2 18 treasury under the control of the department of public health. 2 19 The fund is composed of moneys collected pursuant to the 2 20 excise tax in section 135.105E. Notwithstanding section 2 21 12C.7, all interest earned on moneys in the fund shall be 2 22 credited to and remain in the fund. Section 8.33 does not 2 23 apply to moneys in the fund. 2 24 2. Moneys in the fund that are authorized by the 2 25 department for expenditure are appropriated, and shall be 2 26 used, for the following purposes: 2 27 a. The continued implementation of the childhood lead 2 28 poisoning prevention program as established in this division. 2 29 b. The protection of children and families in this state 2 30 from lead poisoning, and the removal of lead paint from their 2 31 homes. 2 32 EXPLANATION 2 33 This bill creates an excise tax on the sale or use of 2 34 paints, primers, and specialty finishes and directs the moneys 2 35 from the tax to the department of public health to continue 3 1 funding the childhood lead poisoning prevention program. 3 2 An excise tax of 25 cents is imposed on the sale or use of 3 3 each container of paint, primer, or specialty finish. The tax 3 4 does not apply to stains, sealers, or spray paints. 3 5 The director of revenue shall administer the paint excise 3 6 tax as nearly as possible in conjunction with the 3 7 administration of state sales and use tax laws. The director 3 8 shall provide forms or entries on the regular state tax forms 3 9 for reporting excise tax liability. 3 10 The bill creates a lead paint clean=up fund, and excise 3 11 taxes collected on the sale or use of paint, primer, or 3 12 specialty finish are deposited into the fund. The department 3 13 of public health shall use the fund for the following 3 14 purposes: to continue implementation of the childhood lead 3 15 poisoning prevention program in Code chapter 135, division 3 16 VIII, and to protect children and families in Iowa from lead 3 17 poisoning and remove lead paint from their homes. 3 18 LSB 2242XS 83 3 19 ak/mg:sc/14