Senate Study Bill 1134
SENATE/HOUSE FILE
BY (PROPOSED DEPARTMENT OF
REVENUE BILL)
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to the technical administration of the tax and
2 related laws by the department of revenue, including
3 administration of income taxes, sales and use taxes, fees for
4 new vehicle registrations, and property taxes and including a
5 retroactive applicability date provision.
6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN
1 1 Section 1. Section 257.22, Code 2009, is amended to read
1 2 as follows:
1 3 257.22 STATUTES APPLICABLE.
1 4 The director of revenue shall administer the instructional
1 5 support income surtax imposed under this chapter, and sections
1 6 422.4, 422.20, 422.22 to 422.31, 422.68, 422.70, and 422.72 to
1 7 422.75 shall apply with respect to administration of the
1 8 instructional support income surtax.
1 9 Sec. 2. Section 321.105A, subsection 4, paragraph a, Code
1 10 2009, is amended to read as follows:
1 11 a. The director of revenue in consultation with the
1 12 department of transportation shall administer and enforce the
1 13 fee for new registration as nearly as possible in conjunction
1 14 with the administration and enforcement of the state use tax
1 15 law, except that portion of the law which implements the
1 16 streamlined sales and use tax agreement. The director shall
1 17 provide appropriate forms, or provide on the annual
1 18 registration forms provided by the department of
1 19 transportation, for reporting the fee for new registration
1 20 liability.
1 21 Sec. 3. Section 321.105A, subsection 5, paragraph a, Code
1 22 2009, is amended to read as follows:
1 23 a. A licensed vehicle dealer maintaining a place of
1 24 business in this state who sells a vehicle subject to
1 25 registration for use in this state shall collect the fee for
1 26 new registration at the time of making the sale. A dealer
1 27 required to collect the fee for new registration shall give to
1 28 the purchaser a receipt for the fee in the manner and form
1 29 prescribed by the director collected. Fees collected by a
1 30 dealer under this section shall be forwarded to the county
1 31 treasurer in the same manner as annual registration fees.
1 32 Sec. 4. Section 422.9, subsection 4, Code 2009, is amended
1 33 to read as follows:
1 34 4. Where married persons file separately, both must use
1 35 the optional standard deduction if either elects to use it,
2 1 and both must claim itemized deductions if either elects to
2 2 claim itemized deductions.
2 3 Sec. 5. Section 422.12K, subsection 2, Code 2009, is
2 4 amended to read as follows:
2 5 2. The director of revenue shall draft the income tax form
2 6 to allow the designation of contributions to the child abuse
2 7 prevention program fund on the tax return. The department of
2 8 revenue, on or before January 31, shall transfer the total
2 9 amount designated on the tax return forms due in the preceding
2 10 calendar year to the child abuse prevention program fund.
2 11 However, before a checkoff pursuant to this section shall be
2 12 permitted, all liabilities on the books of the department of
2 13 revenue administrative services and accounts identified as
2 14 owing under section 421.17 8A.504 and the political
2 15 contribution allowed under section 68A.601 shall be satisfied.
2 16 Sec. 6. Section 422.32, subsection 3, Code 2009, is
2 17 amended to read as follows:
2 18 3. "Commercial domicile" means the principal place from
2 19 which the trade of or business of the taxpayer is directed or
2 20 managed.
2 21 Sec. 7. Section 423.4, subsection 5, paragraphs b and f,
2 22 Code 2009, are amended to read as follows:
2 23 b. The owner or operator of an automobile racetrack
2 24 facility may apply to the department for a rebate of sales tax
2 25 imposed and collected by retailers upon sales of any goods,
2 26 wares, merchandise, tangible personal property or services
2 27 furnished to purchasers at the automobile racetrack facility.
2 28 f. Only the state sales tax is subject to rebate.
2 29 Notwithstanding the state sales tax imposed in section 423.2,
2 30 a rebate issued pursuant to this section shall not exceed an
2 31 amount equal to five percent of the sales price of the
2 32 tangible personal property or services furnished to purchasers
2 33 at the automobile racetrack facility. Any local option taxes
2 34 paid and collected shall not be subject to rebate under this
2 35 subsection.
3 1 Sec. 8. Section 428.29, Code 2009, is amended to read as
3 2 follows:
3 3 428.29 ASSESSMENT AND CERTIFICATION.
3 4 The director of revenue shall on the second Monday of July
3 5 of or before October 31 each year proceed to determine, upon
3 6 the basis of the data required in such report and any other
3 7 information the director may obtain, the actual value of all
3 8 property, subject to the director's jurisdiction, of said
3 9 individual, partnership, corporation, or association, and
3 10 shall make assessments upon the taxable value thereof of the
3 11 property, as provided by section 441.21. The director of
3 12 revenue shall, on or before the third Monday in August October
3 13 31, certify to the county auditor of every county in the state
3 14 the valuations fixed for assessment upon all such property in
3 15 each and every taxing district in each county by the
3 16 department of revenue. This valuation shall then be spread
3 17 upon the books in the same manner as other valuations fixed by
3 18 the department of revenue upon property assessed under the
3 19 department's jurisdiction.
3 20 Sec. 9. Section 433.4, Code 2009, is amended to read as
3 21 follows:
3 22 433.4 ASSESSMENT.
3 23 The director of revenue shall on the second Monday in July
3 24 of or before October 31 each year, proceed to find the actual
3 25 value of the property of these companies in this state, taking
3 26 into consideration the information obtained from the
3 27 statements required, and any further information the director
3 28 can obtain, using the same as a means for determining the
3 29 actual cash value of the property of these companies within
3 30 this state. The director shall also take into consideration
3 31 the valuation of all property of these companies, including
3 32 franchises and the use of the property in connection with
3 33 lines outside the state, and making these deductions as may be
3 34 necessary on account of extra value of property outside the
3 35 state as compared with the value of property in the state, in
4 1 order that the actual cash value of the property of the
4 2 company within this state may be ascertained. The assessment
4 3 shall include all property of every kind and character
4 4 whatsoever, real, personal, or mixed, used by the companies in
4 5 the transaction of telegraph and telephone business; and the
4 6 property so included in the assessment shall not be taxed in
4 7 any other manner than as provided in this chapter.
4 8 Sec. 10. Section 433.7, Code 2009, is amended to read as
4 9 follows:
4 10 433.7 HEARING.
4 11 At such meeting in July At the time of determination of
4 12 value of the director of revenue, any company interested shall
4 13 have the right to appear, by its officers or agents, before
4 14 the director of revenue and be heard on the question of the
4 15 valuation of its property for taxation.
4 16 Sec. 11. Section 434.2, unnumbered paragraph 1, Code 2009,
4 17 is amended to read as follows:
4 18 On the second Monday in July of or before October 31 each
4 19 year, the director of revenue shall assess all the property of
4 20 each railway corporation in the state, excepting the lands,
4 21 lots, and other real estate belonging thereto not used in the
4 22 operation of any railway, and excepting railway bridges across
4 23 the Mississippi and Missouri rivers, and excepting grain
4 24 elevators; and for the purpose of making such assessment its
4 25 president, vice president, general manager, general
4 26 superintendent, receiver, or such other officer as the
4 27 director of revenue may designate, shall, on or before the
4 28 first day of April in each year, furnish the department of
4 29 revenue a verified statement showing in detail for the year
4 30 ended December 31 next preceding:
4 31 Sec. 12. Section 434.17, Code 2009, is amended to read as
4 32 follows:
4 33 434.17 CERTIFICATION TO COUNTY AUDITORS.
4 34 On or before the third Monday in August of October 31 each
4 35 year, the director of revenue shall transmit to the county
5 1 auditor of each county, through and into which any railway may
5 2 extend, a statement showing the length of the main track
5 3 within the county, and the assessed value per mile of the
5 4 same, as fixed by a ratable distribution per mile of the
5 5 assessed valuation of the whole property.
5 6 Sec. 13. Section 437.6, Code 2009, is amended to read as
5 7 follows:
5 8 437.6 ACTUAL VALUE.
5 9 On the second Monday in July of or before October 31 each
5 10 year, the director of revenue shall proceed to find the actual
5 11 value of that part of such transmission line or lines referred
5 12 to in section 437.2, owned or operated by any company, that is
5 13 located within this state but outside cities, including the
5 14 whole of such line or lines when all of such line or lines
5 15 owned or operated by said company is located wholly outside of
5 16 cities, taking into consideration the information obtained
5 17 from the statements required by this chapter, and any further
5 18 information obtainable, using the same as a means of
5 19 determining the actual cash value of such transmission line or
5 20 lines or part thereof, within this state, located outside of
5 21 cities. The director shall then ascertain the value per mile
5 22 of such transmission line or lines owned or operated by each
5 23 company specified in section 437.2, by dividing the total
5 24 value as above ascertained by the number of miles of line of
5 25 such company within the state located outside of cities, and
5 26 the result shall be deemed and held to be the actual value per
5 27 mile of said transmission line or lines of each of said
5 28 companies within the state located outside of cities.
5 29 Sec. 14. Section 437A.19, subsection 2, paragraph f,
5 30 unnumbered paragraph 3, Code 2009, is amended to read as
5 31 follows:
5 32 The director, on or before August October 31 of each
5 33 assessment year, shall report to the department of management
5 34 and to the auditor of each county the adjusted assessed value
5 35 of taxpayer property as of January 1 of such assessment year
6 1 for each local taxing district. For purposes of this
6 2 subsection, the assessed value of taxpayer property in each
6 3 local taxing district subject to adjustment under this section
6 4 by the director means the assessed value of such property as
6 5 of the preceding January 1 as determined and allocated among
6 6 the local taxing districts by the director.
6 7 Sec. 15. Section 438.14, Code 2009, is amended to read as
6 8 follows:
6 9 438.14 VALUATION AND CERTIFICATION THEREOF.
6 10 The director of revenue shall on or before the third Monday
6 11 in August of October 31 each year determine the value of
6 12 pipeline property located in each taxing district of the
6 13 state, and in fixing said the value shall take into
6 14 consideration the structures, equipment, pumping stations,
6 15 etc., located in said the taxing district, and shall transmit
6 16 to the county auditor of each such county through and into
6 17 which any pipeline may extend, a statement showing the
6 18 assessed value of said the property in each of the taxing
6 19 districts of said the county. The said property shall then be
6 20 taxed in said the county and lesser taxing districts, based
6 21 upon the valuation so certified, in the same manner as in
6 22 other property.
6 23 Sec. 16. CODE CHAPTER 423 TITLE RENAMED == CODE EDITOR
6 24 DIRECTIVE. The Code editor is directed to rename the title of
6 25 chapter 423 as the "Streamlined Sales and Use Tax Act".
6 26 Sec. 17. RETROACTIVE APPLICABILITY. The section of this
6 27 Act amending section 422.9 applies retroactively to January 1,
6 28 2009, for tax years beginning on or after that date.
6 29 EXPLANATION
6 30 This bill relates to the department of revenue's
6 31 administration of the income taxes, the sales and use taxes,
6 32 the property tax, and certain fees for new vehicle
6 33 registrations.
6 34 The bill makes existing Code sections 422.4 and 422.70
6 35 applicable to the administration of the instructional support
7 1 income surtax. Code section 422.4 defines certain tax=related
7 2 terms, and Code section 422.70 relates to certain general
7 3 powers of the director of the department of revenue and to
7 4 hearings conducted by the department.
7 5 Current law requires the director of revenue to develop
7 6 forms to be used in the administration of the one=time motor
7 7 vehicle registration fee imposed by 2008 Iowa Acts, chapter
7 8 1113. The bill eliminates this requirement and makes
7 9 conforming changes.
7 10 Current law provides that married persons filing separate
7 11 returns must both use the standard deduction if either of them
7 12 uses the standard deduction. The bill provides that married
7 13 persons filing separately must also both claim itemized
7 14 deductions if either claims itemized deductions. This
7 15 provision of the bill is made retroactive to January 1, 2009,
7 16 for tax years beginning on or after that date.
7 17 Currently, Code section 422.12K contains a reference to the
7 18 liabilities on the books of the department of revenue, but
7 19 this reference should be to the department of administrative
7 20 services. The bill corrects this reference.
7 21 The bill corrects a grammatical error in the definition of
7 22 "commercial domicile" used for purposes of the business tax on
7 23 corporations.
7 24 Current law provides for a rebate of the sales tax
7 25 collected by retailers at certain automobile racetrack
7 26 facilities to the owner or operator of the automobile
7 27 racetrack facility. The amount of the rebate is determined by
7 28 counting only the state sales tax rate. In 2008, the state
7 29 sales tax rate was increased from 5 percent to 6 percent. The
7 30 bill provides that, despite the 2008 increase in the sales tax
7 31 rate, the rebate for sales taxes collected at racetrack
7 32 facilities cannot exceed 5 percent of the sales price.
7 33 The bill makes October 31 the required yearly completion
7 34 date for each of the following property tax=related
7 35 assessments made by the department of revenue: the general
8 1 property listing required by Code section 428.29, the
8 2 telephone and telegraph companies tax assessment, the railway
8 3 companies tax assessment and the related transmission to
8 4 county auditors, the electric transmission lines tax, the
8 5 adjusted assessed value determined for purposes of the tax on
8 6 electricity and natural gas providers, and the pipeline
8 7 companies tax assessment.
8 8 The bill directs the Code editor to retitle the name of
8 9 Code chapter 423 to the "Streamlined Sales and Use Tax Act".
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