House
File
662
-
Introduced
HOUSE
FILE
662
BY
CHAMBERS
A
BILL
FOR
An
Act
relating
to
the
statutory
natural
resources
and
outdoor
1
recreation
trust
fund
and
the
sales
tax
rate
imposed
on
the
2
sale
of
tangible
personal
property
and
the
furnishing
of
3
enumerated
services
and
including
effective
date
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
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662
Section
1.
Section
423.2,
subsection
11,
Code
2011,
is
1
amended
by
adding
the
following
new
paragraph:
2
NEW
PARAGRAPH
.
c.
Subsequent
to
the
deposit
into
the
3
general
fund
of
the
state,
and
after
the
transfer
of
revenues
4
as
provided
in
paragraph
“b”
,
the
department
shall
transfer
5
revenues
equal
to
an
amount
generated
by
a
tax
of
three-eighths
6
of
one
percent
imposed
on
the
sale
of
tangible
personal
7
property
and
enumerated
services
as
provided
in
this
section
to
8
the
natural
resources
and
outdoor
recreation
trust
fund
created
9
in
section
461.31.
10
Sec.
2.
SALES
TAX
RATE
DECREASE.
Notwithstanding
the
rate
11
specified
in
section
423.2,
the
rate
of
the
sales
tax
imposed
12
under
chapter
423
upon
the
sales
price
of
the
sale
of
tangible
13
personal
property
and
the
furnishing
of
enumerated
services
14
sold
in
this
state
shall
be
five
and
five-eighths
percent.
15
Sec.
3.
SALES
TAX
RATE
INCREASE.
Notwithstanding
the
rate
16
specified
in
the
section
of
this
Act
decreasing
the
sales
tax
17
rate,
the
rate
of
the
sales
tax
imposed
under
chapter
423
upon
18
the
sales
price
of
the
sale
of
tangible
personal
property
and
19
the
furnishing
of
enumerated
services
sold
in
this
state
shall
20
be
six
percent.
21
Sec.
4.
STATUTORY
CONSTRUCTION.
Nothing
in
this
Act
shall
22
be
construed
to
affect
the
amount
of
revenues
collected
under
23
chapter
423B,
or
the
transfer
of
revenues
to
the
secure
an
24
advanced
vision
for
education
fund
created
in
section
423F.2.
25
Sec.
5.
RULES.
The
department
of
revenue
shall
adopt
26
rules
under
chapter
17
as
necessary
in
order
to
implement
the
27
provisions
of
this
Act.
28
Sec.
6.
EXEMPTIONS
——
REFUNDS.
The
decreasing
and
29
increasing
of
the
sales
tax
rate
shall
not
be
construed
as
30
affecting
the
operation
of
the
exemptions
specified
in
section
31
423.3
or
the
refunds
specified
in
section
423.4.
32
Sec.
7.
EFFECTIVE
DATE.
The
section
of
this
Act
authorizing
33
the
department
of
revenue
to
adopt
rules
to
implement
the
34
provisions
of
this
Act
takes
effect
on
January
1,
2013.
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662
Sec.
8.
EFFECTIVE
DATE.
The
sections
of
this
Act
decreasing
1
the
sales
tax
rate
and
referring
to
exemptions
and
refunds
take
2
effect
at
the
end
of
the
calendar
day
on
June
30,
2013.
3
Sec.
9.
EFFECTIVE
DATE.
The
sections
of
this
Act
increasing
4
the
sales
tax
rate
and
referring
to
exemptions
and
refunds
take
5
effect
at
the
beginning
of
the
calendar
day
on
July
1,
2013.
6
EXPLANATION
7
This
bill
relates
to
the
sales
tax
imposed
on
the
sale
of
8
tangible
personal
property
and
the
furnishing
of
enumerated
9
services.
Currently,
the
tax
on
sales
and
services
in
Iowa
10
is
imposed
at
the
rate
of
6
percent.
The
bill
provides
for
a
11
decrease
in
the
rate
to
5
5/8
percent.
This
decrease
takes
12
effect
at
the
end
of
the
calendar
day
on
June
30,
2013.
The
13
bill
also
provides
for
a
rate
increase
from
5
5/8
percent
to
6
14
percent,
effectively
restoring
the
current
rate.
This
increase
15
takes
effect
at
the
beginning
of
the
calendar
day
on
July
1,
16
2013.
The
revenues
generated
by
3/8
of
1
percent
imposed
on
17
the
sale
of
tangible
personal
property
and
enumerated
services
18
are
statutorily
transferred
to
the
natural
resources
and
19
outdoor
recreation
trust
fund.
The
statutory
purpose
of
the
20
fund
is
to
protect
and
enhance
water
quality
and
natural
areas
21
of
this
state
and
conserving
agricultural
soils
in
this
state.
22
The
department
of
revenue
is
authorized
to
adopt
rules
in
order
23
to
implement
the
bill.
24
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