SSB 1243 (LSB 1258XD (4) 85)

SENATE/HOUSE FILE _____

BY  (PROPOSED DEPARTMENT OF REVENUE BILL)

A BILL FOR

An Act relating to the administration of the tax and related laws of the department of revenue, including administration of income taxes, sales and use and excise taxes, an environmental protection charge, and property taxes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

DIVISION I

INCOME TAXES
    Section 1.  Section 422.25, subsection 1, paragraph b, Code 2013, is amended to read as follows:
   b.  The period for examination and determination of the correct amount of tax is unlimited in the case of a false or fraudulent return made with the intent to evade tax or in the case of a failure to file a return. In lieu of the period of limitation for any prior year for which an overpayment of tax or an elimination or reduction of an underpayment of tax due for that prior year results from the carryback to that prior year of a net operating loss or net capital loss, the period is the period of limitation for the taxable year of the net operating loss or net capital loss which results in the carryback. If the tax found due is greater than the amount paid, the department shall compute the amount due, together with interest and penalties as provided in subsection 2, and shall mail a notice of assessment to the taxpayer and, if applicable, to the taxpayer’s authorized representative of the total, which shall be computed as a sum certain if paid on or before, with interest computed to the last day of the month in which the notice is dated, or on or before the last day of the following month if the notice is dated after the twentieth day of any month. The notice shall also inform the taxpayer of the additional interest and penalty which will be added to the total due if not paid on or before the last day of the applicable month.

DIVISION II

SALES TAXES
    Sec. 2.  Section 423.37, subsection 2, Code 2013, is amended to read as follows:
   2.  If a return required by this subchapter is not filed, or if a return when filed is incorrect or insufficient and the maker fails to file a corrected or sufficient return within twenty days after the same is required by notice from the department, the department shall determine the amount of tax due from information as the department may be able to obtain and, if necessary, may estimate the tax on the basis of external indices, such as number of employees of the person concerned, rentals paid by the person, stock on hand, or other factors. The determination may be made using any generally recognized valid and reliable sampling technique, whether or not the person being audited has complete records, as mutually agreed upon by the department and the taxpayer. The department shall give notice of the determination to the person liable for the tax. The determination shall fix the tax unless the person against whom it is assessed shall, within sixty days after the giving of notice of the determination, apply to the director for a hearing or unless the taxpayer contests the determination by paying the tax, interest, and penalty and timely filing a claim for refund. At the hearing, evidence may be offered to support the determination or to prove that it is incorrect. After the hearing the director shall give notice of the decision to the person liable for the tax.

DIVISION III

ENVIRONMENTAL PROTECTION CHARGE
    Sec. 3.  Section 424.10, subsection 2, paragraph a, Code 2013, is amended to read as follows:
   a.  If a return required by this chapter is not filed, or if a return when filed is incorrect or insufficient and the maker fails to file a corrected or sufficient return within twenty days after the return is required by notice from the department, the department shall determine the amount of charge due from information as the department may be able to obtain and, if necessary, may estimate the charge on the basis of external indices or factors. The department shall give notice of the determination to the person liable for the charge. The determination shall fix the charge unless the person against whom it is assessed shall, within sixty days after the date of the notice of the determination, apply to the director for a hearing or unless the person against whom it is assessed contests the determination by paying the charge, interest, and penalty and timely filing a claim for refund. At the hearing evidence may be offered to support the determination or to prove that it is incorrect. After the hearing the director shall give notice of the decision to the person liable for the charge.

DIVISION IV

PROPERTY TAX
    Sec. 4.  Section 421.17, subsection 2, Code 2013, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  d.  To facilitate uniformity and equalization of assessments throughout the state of Iowa and to facilitate transfers of funds to local governments, the director may use geographic information system technology and may require assessing authorities and local governments to provide information to the department electronically using electronic geographic information system file formats.
    Sec. 5.  Section 441.5, subsection 1, Code 2013, is amended to read as follows:
   1.  For the purpose of examining and certifying candidates for the positions of assessor and deputy assessor, the director of revenue shall prepare and administer a written
 
an examination
 
and provide for an examination process. The examinations shall be administered twice each year in the city of Des Moines. Notification of the time, place, and date of the examinations shall be mailed to each city and county assessor, county auditor and chairperson of each city and county conference board
 
The director shall approve one or more examination locations and shall make a list of the approved locations available to applicants. Each applicant shall select an examination location from the list of approved locations. The director shall notify applicants of the date and time of the examination at least thirty days prior to the date of the examination.
    Sec. 6.  Section 441.5, subsection 4, Code 2013, is amended to read as follows:
   4.  The director of revenue shall grade the examination taken. The director shall notify, in writing, each applicant of the score attained by the applicant on the examination. An individual who attains a score of seventy percent or greater on the examination is eligible to be certified by the director of revenue as a candidate for any assessor position. Any person who passes the examination and who possesses at least two years of appraisal related experience as determined by the director of revenue shall be granted regular certification and become eligible for appointment to a six-year term as assessor. Any person who passes the examination but who lacks such experience shall be granted temporary certification, and shall be eligible for a provisional appointment as assessor.
EXPLANATION
   This bill relates to the administration of the tax and related laws by the department of revenue.
   Division I relates to the individual and corporate income tax. The division strikes language in Code section 422.25 to eliminate the requirement that notices of assessment issued after the twentieth day of a month include an interest calculation for the next month. By reference, this change applies to the real estate transfer tax in Code chapter 428A.
   Division II relates to sales and use taxes and, by reference, the monitor vending machine excise tax, motor vehicle fee for new registration, the hotel and motel tax, the local option sales and services tax, the automobile rental excise tax, and the equipment tax.
   The division strikes language in Code section 423.37 to eliminate the requirement that the department send a notice to filers of applicable tax returns if the return is either incorrect or insufficient. The department would be authorized to determine the amount of tax due and send a notice of assessment to the person liable for the tax.
   Division III relates to the environmental protection charge on petroleum diminution.
   The division strikes language in Code section 422.10 to eliminate the requirement that the department send a notice to filers of environmental protection charge returns if the return is either incorrect or insufficient. The department would be authorized to determine the amount of tax due and send a notice of assessment to the person liable for the tax.
   Division IV relates to property taxes.
   The division amends the powers and duties of the director of revenue in Code section 421.17 to allow the director to use geographic information system (GIS) technology to facilitate uniformity and equalization of assessments and to facilitate transfers of funds to local governments. The director may also require assessing authorities and local governments to provide information to the department electronically using GIS file formats.
   The division amends the procedures related to the examination in Code section 441.5 for assesors and deputy assessors by removing requirements that the director of revenue administer a written examination biannually in the city of Des Moines, that notification of the time and place of examinations be mailed 30 days in advance to each city and county assessor, county auditor, and chairperson of each city and county conference board, and that each applicant be notified in writing of their examination score. The amended language would require that the director prepare an examination and provide for an examination process, approve one or more examination locations and make a list of the approved locations available to applicants, notify applicants 30 days in advance of the date and time of their examination, and notify applicants of their examination score. Applicants would be able to select an examination location from the list of approved locations provided by the director.