House File 2451 - Introduced HOUSE FILE 2451 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO HSB 671) A BILL FOR An Act relating to the rebate of sales tax imposed and 1 collected at an automobile racetrack facility and including 2 effective date and retroactive applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5535HV (1) 85 mm/sc

H.F. 2451 Section 1. Section 423.4, subsection 5, paragraph a, 1 subparagraphs (2), (3), and (4), Code 2014, are amended to read 2 as follows: 3 (2) “Change of control” means any of the following: 4 (a) Any any change in the ownership of the original or any 5 subsequent legal entity that is the owner or operator of the 6 automobile racetrack facility such that less than twenty-five 7 percent of the equity interests in the legal entity is owned 8 by individuals who are residents of Iowa, an Iowa corporation 9 business , or combination of both. 10 (b) The original owners of the legal entity that is the 11 owner or operator of the automobile racetrack facility shall 12 collectively cease to own at least twenty-five percent of the 13 voting equity interests of such legal entity. 14 (3) “Iowa corporation business ” means a corporation or 15 limited liability company incorporated or formed under the laws 16 of Iowa where at least twenty-five percent of the corporation’s 17 equity interests are owned by individuals who are residents of 18 Iowa . 19 (4) “Owner or operator” means a for-profit legal entity 20 where at least twenty-five percent of its equity interests 21 are owned by individuals who are residents of Iowa, an Iowa 22 corporation business , or combination of both and that is the 23 owner or operator of an automobile racetrack facility and is 24 primarily a promoter of motor vehicle races. 25 Sec. 2. Section 423.4, subsection 5, paragraph c, 26 subparagraph (3), Code 2014, is amended to read as follows: 27 (3) The transactions for which sales tax was collected and 28 the rebate is sought occurred on or after January 1, 2006, but 29 before January 1, 2016 2026 . However, not more than twelve 30 million five hundred thousand dollars in total rebates shall be 31 provided pursuant to this subsection . 32 Sec. 3. Section 423.4, subsection 5, paragraph g, Code 2014, 33 is amended to read as follows: 34 g. This subsection is repealed June 30, 2016 2026 , or thirty 35 -1- LSB 5535HV (1) 85 mm/sc 1/ 3

H.F. 2451 days following the date on which twelve million five hundred 1 thousand dollars in total rebates have been provided, or thirty 2 days following the date on which rebates cease as provided in 3 paragraph “c” , subparagraph (4), whichever is the earliest. 4 Sec. 4. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 5 immediate importance, takes effect upon enactment. 6 Sec. 5. RETROACTIVE APPLICABILITY. This Act applies 7 retroactively to November 1, 2013. 8 EXPLANATION 9 The inclusion of this explanation does not constitute agreement with 10 the explanation’s substance by the members of the general assembly. 11 This bill relates to the rebate of sales tax imposed 12 and collected at certain automobile racetrack facilities 13 (facility). 14 Under current law, the owner or operator of a facility may 15 receive a rebate of the sales tax imposed and collected by 16 retailers at the facility. The rebate is limited to sales 17 occurring before January 1, 2016, and is limited to a total of 18 $12.5 million. The rebate ceases if a “change in control”, as 19 defined in statute, occurs. A change in control occurs when 20 the original owners cease to own at least 25 percent of the 21 voting equity interests in the legal entity that is the owner 22 or operator of the facility or when less than 25 percent of 23 the equity interests in the legal entity that is the owner 24 or operator of the facility are owned by individuals who are 25 residents of Iowa or an Iowa corporation or a combination 26 of both. “Iowa corporation” is defined in statute as a 27 corporation incorporated under the laws of Iowa where at least 28 25 percent of the corporation’s equity interests are owned by 29 individuals who are residents of Iowa. 30 The bill extends the rebate by 10 years to sales occurring 31 before January 1, 2026, and extends the repeal date of the 32 rebate to the same date. The bill changes the definition 33 of “change in control” by removing the requirement that the 34 original owners retain at least 25 percent of the voting equity 35 -2- LSB 5535HV (1) 85 mm/sc 2/ 3

H.F. 2451 interests in the legal entity that is the owner or operator of 1 the facility. The bill also changes the definition of “Iowa 2 corporation” by renaming it as “Iowa business”, allowing a 3 limited liability company formed under the laws of Iowa to 4 qualify, and removing the requirement that at least 25 percent 5 of the corporation’s or limited liability company’s equity 6 interests be owned by individuals who are residents of Iowa. 7 The bill takes effect upon enactment and applies 8 retroactively to November 1, 2013. 9 -3- LSB 5535HV (1) 85 mm/sc 3/ 3