House File 101 - Introduced HOUSE FILE 101 BY WAGNER A BILL FOR An Act making the services of certain executive search agencies 1 and private employment agencies exempt from the sales tax 2 and including effective date and retroactive applicability 3 provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1419YH (3) 84 je/sc
H.F. 101 Section 1. Section 423.2, subsection 6, Code 2011, 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 1419YH (3) 84 je/sc 1/ 3
H.F. 101 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, 2011, 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 1419YH (3) 84 je/sc 2/ 3
H.F. 101 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 removes such agencies from the list of enumerated 12 services upon which the sales tax is imposed. 13 The bill provides for refunds of taxes, interest, or 14 penalties which arise from claims resulting from the change to 15 exemption from taxation of these services. These refunds are 16 limited to $50,000 in the aggregate. Claims for refund must be 17 filed by October 1, 2011. 18 The bill takes effect upon enactment and applies 19 retroactively to January 1, 2002. 20 -3- LSB 1419YH (3) 84 je/sc 3/ 3