House
File
134
-
Introduced
HOUSE
FILE
134
BY
ALONS
,
SWEENEY
,
RAYHONS
,
SHAW
,
HUSEMAN
,
KLEIN
,
and
DRAKE
A
BILL
FOR
An
Act
relating
to
the
recovery
of
penalties
and
interest
from
1
businesses
receiving
financial
assistance
under
certain
2
economic
development
programs
and
including
retroactive
3
applicability
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
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134
Section
1.
Section
15E.193,
subsection
3,
Code
2011,
is
1
amended
to
read
as
follows:
2
3.
If
a
business
has
received
incentives
or
assistance
3
under
section
15E.196
and
fails
to
maintain
the
requirements
4
of
subsection
1
to
be
an
eligible
business,
the
business
is
5
subject
to
repayment
of
all
or
a
portion
of
the
incentives
6
and
assistance
that
it
has
received.
The
city
or
county,
as
7
applicable,
shall
have
the
authority
to
take
action
to
recover
8
the
value
of
taxes
not
collected
as
a
result
of
the
exemption
9
provided
by
the
community
to
the
business.
The
department
of
10
revenue
shall
have
the
authority
to
recover
the
value
of
state
11
taxes
or
incentives
provided
under
section
15E.196
.
The
value
12
of
state
incentives
provided
under
section
15E.196
includes
13
applicable
does
not
include
interest
and
or
penalties.
The
14
department
of
economic
development
and
the
city
and
county,
15
as
applicable,
shall
enter
into
agreement
with
the
business
16
specifying
the
method
for
determining
the
amount
of
incentives
17
or
assistance
paid
which
will
be
repaid
in
the
event
of
failure
18
to
maintain
the
requirements
of
subsection
1
.
In
addition,
a
19
business
that
fails
to
maintain
the
requirements
of
subsection
20
1
shall
not
receive
incentives
or
assistance
for
each
year
21
during
which
the
business
is
not
in
compliance.
22
Sec.
2.
APPLICABILITY.
This
Act
applies
retroactively
23
to
January
1,
2006,
for
incentives
or
assistance
received
or
24
claimed
on
or
after
that
date.
25
EXPLANATION
26
Code
section
15E.193
allows
the
department
of
revenue,
under
27
certain
circumstances,
to
seek
repayment
of
certain
financial
28
incentives
provided
under
the
enterprise
zones
program,
and
29
allows
the
department
to
charge
penalties
and
interest.
30
This
bill
eliminates
the
department’s
authority
to
charge
31
penalties
and
interest.
32
The
bill
applies
retroactively
to
January
1,
2006,
for
33
incentives
or
assistance
received
or
claimed
on
or
after
that
34
date.
35
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