H.F. 2453 Section 1. FINDINGS. The general assembly finds that a 1 baseball and softball tournament facility and movie site in 2 Iowa would result in a substantial economic benefit to the 3 state and would offer thousands of competitors and visitors the 4 opportunity to experience and discover Iowa. 5 The general assembly further finds that the development 6 of the baseball and softball tournament facility and movie 7 site, including a year-round training facility, would enhance 8 the economic development of the area through an increase in 9 tourism. 10 The general assembly further finds that the rebate of state 11 sales tax collected at the baseball and softball tournament 12 facility and movie site to assist in the development of such 13 facility and complex would further tourism and is a public 14 purpose for which state funds may be used. 15 The general assembly further finds that the rebate of state 16 sales tax to the baseball and softball tournament facility and 17 movie site should be considered a program to be used as a means 18 to increase tourism into the state. 19 Sec. 2. Section 423.2, subsection 11, Code Supplement 2011, 20 is amended to read as follows: 21 11. a. (1) All revenues arising under the operation of the 22 provisions of this section shall be deposited into the general 23 fund of the state. 24 (2) Subsequent to the deposit into the general fund of 25 the state, the director shall credit an amount equal to the 26 product of the sales tax rate imposed in this section times 27 the sales price of the tangible personal property or services 28 furnished to purchasers at a baseball and softball tournament 29 facility and movie site meeting the qualifications of section 30 423.4, subsection 10, into the baseball and softball tournament 31 facility and movie site sales tax rebate fund created under 32 section 423.4, subsection 10, paragraph “e” . The director 33 shall credit the moneys beginning the first day of the quarter 34 following the effective date of this Act. This subparagraph is 35 -1- LSB 5471HZ (2) 84 mm/sc 1/ 6

H.F. 2453 repealed June 30, 2024, or thirty days following the date on 1 which sixteen million five hundred thousand dollars in total 2 rebates have been provided under section 423.4, subsection 3 10, or thirty days following the date on which rebates cease 4 as provided in section 423.4, subsection 10, paragraph “c” , 5 subparagraph (4), whichever is earliest. 6 b. Subsequent to the deposit into the general fund of the 7 state and after the transfer of such pursuant to paragraph “a” , 8 the department shall do the following in the order prescribed: 9 (1) Transfer the revenues collected under chapter 423B , the 10 department shall transfer . 11 (2) Transfer from the remaining revenues the amounts 12 required under Article VII, section 10, of the Constitution 13 of the State of Iowa to the natural resources and outdoor 14 recreation trust fund created in section 461.31, if applicable. 15 (3) Transfer one-sixth of such the remaining revenues to the 16 secure an advanced vision for education fund created in section 17 423F.2 . This paragraph subparagraph (3) is repealed December 18 31, 2029. 19 (4) Transfer to the baseball and softball tournament 20 facility and movie site sales tax rebate fund that portion of 21 the sales tax receipts described in paragraph “a” , subparagraph 22 (2), remaining after the transfers required under subparagraphs 23 (1), (2), and (3) of this paragraph “b” . This subparagraph is 24 repealed June 30, 2024, or thirty days following the date on 25 which sixteen million five hundred thousand dollars in total 26 rebates have been provided under section 423.4, subsection 27 10, or thirty days following the date on which rebates cease 28 as provided in section 423.4, subsection 10, paragraph “c ”, 29 subparagraph (4), whichever is earliest. 30 Sec. 3. Section 423.4, Code Supplement 2011, is amended by 31 adding the following new subsection: 32 NEW SUBSECTION . 10. a. For purposes of this subsection: 33 (1) “Baseball and softball tournament facility and movie 34 site” means a baseball and softball tournament complex and 35 -2- LSB 5471HZ (2) 84 mm/sc 2/ 6

H.F. 2453 tourist destination, which facility is located on a maximum of 1 two hundred seventy-nine acres, located inside or within three 2 miles of the city limits of a city with a population of at least 3 four thousand but not more than five thousand five hundred 4 residents, which city is located in a county with a population 5 of at least ninety-three thousand but not more than one hundred 6 thousand residents and where the construction on the baseball 7 and softball tournament facility commenced not later than one 8 year following the enactment of this Act, and the cost of the 9 construction upon completion was at least thirty-eight million 10 dollars. 11 (2) “Change of control” means any of the following: 12 (a) Any change in the ownership of the original or any 13 subsequent legal entity that is the owner or operator of the 14 baseball and softball tournament facility and movie site such 15 that more than fifty-one percent of the equity interests in the 16 legal entity cease to be owned by individuals who are residents 17 of Iowa, an Iowa corporation, or combination of both. 18 (b) The original owners of the legal entity that is the 19 owner or operator of the baseball and softball tournament 20 facility and movie site shall collectively cease to own more 21 than fifty percent of the voting equity interests of such legal 22 entity or shall otherwise cease to have effective control of 23 such legal entity. 24 (3) “Iowa corporation” means a corporation incorporated 25 under the laws of Iowa where more than fifty-one percent of the 26 corporation’s equity interests are owned by individuals who are 27 residents of Iowa. 28 (4) “Owner or operator” means a for-profit legal entity 29 where more than fifty-one percent of its equity interests 30 are owned by individuals who are residents of Iowa, an Iowa 31 corporation, or combination of both and that is the owner or 32 operator of a baseball and softball tournament facility and 33 movie site and is primarily a promoter of baseball and softball 34 tournaments. 35 -3- LSB 5471HZ (2) 84 mm/sc 3/ 6

H.F. 2453 (5) “Population” means the population based upon the 2010 1 certified federal census. 2 b. The owner or operator of a baseball and softball 3 tournament facility and movie site may apply to the department 4 for a rebate of sales tax imposed and collected by retailers 5 upon sales of any goods, wares, merchandise, admission tickets, 6 or services furnished to purchasers at the baseball and 7 softball tournament facility and movie site. 8 c. The rebate may be obtained only in the following amounts 9 and manner and only under the following conditions: 10 (1) On forms furnished by the department within the time 11 period provided by the department by rule, which time period 12 shall not be longer than quarterly. 13 (2) The owner or operator shall provide information as 14 deemed necessary by the department. 15 (3) The transactions for which sales tax was collected and 16 the rebate is sought occurred on or after January 1, 2014, 17 but before January 1, 2024. However, not more than sixteen 18 million five hundred thousand dollars in total rebates shall be 19 provided pursuant to this subsection. 20 (4) Notwithstanding subparagraph (3), the rebate of sales 21 tax shall cease for transactions occurring on or after the 22 date of the change of control of the baseball and softball 23 tournament facility and movie site. 24 d. To assist the department in determining the amount 25 of the rebate, the owner or operator shall identify to the 26 department retailers located at the baseball and softball 27 tournament facility and movie site who will be collecting sales 28 tax. The department shall verify such identity and ensure 29 that all proper permits have been issued. For purposes of 30 this subsection, advance ticket and admissions sales shall be 31 considered occurring at the baseball and softball tournament 32 facility and movie site regardless of where the transactions 33 actually occur. 34 e. There is established within the state treasury under the 35 -4- LSB 5471HZ (2) 84 mm/sc 4/ 6

H.F. 2453 control of the department a baseball and softball tournament 1 facility and movie site sales tax rebate fund consisting of 2 the amount of state sales tax revenues transferred pursuant 3 to section 423.2, subsection 11, paragraph “b” , subparagraph 4 (4). An account is created within the fund for each baseball 5 and softball tournament facility and movie site meeting the 6 qualifications of this subsection. Moneys in the fund shall 7 only be used to provide rebates of state sales tax pursuant 8 to this subsection, and only the state sales tax revenues in 9 the baseball and softball tournament facility and movie site 10 rebate fund are subject to rebate under this subsection. Not 11 more than sixteen million five hundred thousand dollars in 12 total rebates shall be paid from the fund. Any moneys in the 13 fund which represent state sales tax revenue for which the time 14 period in paragraph “c” for receiving a rebate has expired, 15 or which otherwise represent state sales tax revenue that has 16 become ineligible for rebate pursuant to this subsection, shall 17 immediately revert to the general fund of this state. 18 f. Upon determining that the conditions and requirements 19 of this subsection and the department are met, the department 20 shall issue a warrant from the applicable account within the 21 baseball and softball tournament facility and movie site rebate 22 fund to the owner or operator in the amount equal to the amount 23 claimed and verified by the department. 24 g. This subsection is repealed June 30, 2024, or thirty 25 days following the date on which sixteen million five hundred 26 thousand dollars in total rebates have been provided, or thirty 27 days following the date on which rebates cease as provided in 28 paragraph “c” , subparagraph (4), whichever is the earliest. 29 EXPLANATION 30 This bill authorizes the department of revenue to rebate 31 sales tax collected by retailers on purchases made at a 32 baseball and softball tournament facility and movie site. To 33 be eligible for the rebate the baseball and softball tournament 34 facility and movie site must be located on a maximum of 279 35 -5- LSB 5471HZ (2) 84 mm/sc 5/ 6

H.F. 2453 acres and located inside or within three miles of the city 1 limits of a city with a population between 4,000 and 5,500, 2 which is located in a county with a population between 93,000 3 and 100,000. In addition, construction on the facility must 4 commence not later than one year following the enactment of the 5 bill, and the cost of the construction must be at least $38 6 million. 7 The person eligible to receive the rebate is the owner or 8 operator of the baseball and softball tournament facility and 9 movie site. The rebate of sales tax only applies to the sales 10 tax collected on transactions occurring on or after January 1, 11 2014, and before January 1, 2024, and shall only be paid from 12 the baseball and softball tournament facility and movie site 13 sales tax rebate fund created in the bill. 14 The bill creates the baseball and softball tournament 15 facility and movie site sales tax rebate fund consisting of 16 the remaining amount of state sales tax revenue collected upon 17 tangible personal property or services furnished to purchasers 18 at the baseball and softball tournament facility and movie 19 site after subtracting the local option sales tax under Code 20 chapter 423B, the natural resources and outdoor recreation 21 trust fund transfer pursuant to Article VII, section 10, of the 22 Constitution of the State of Iowa if applicable, and the secure 23 an advanced vision for education fund transfer pursuant to Code 24 section 423F.2. Rebates are paid only from this rebate fund 25 and are limited to the amounts in the fund. The total amount 26 that may be rebated from the fund and under the bill is $16.5 27 million. 28 The rebate ceases if control of the facility changes. The 29 rebate provision is repealed June 30, 2024, or 30 days after a 30 total of $16.5 million has been rebated, or 30 days following 31 the change of control causing the rebates to cease, whichever 32 occurs earlier. 33 -6- LSB 5471HZ (2) 84 mm/sc 6/ 6