H.F. 2463 Section 1. NEW SECTION . 15F.207 Baseball and softball 1 complex sales tax rebate. 2 1. Definitions. As used in this section, unless the context 3 otherwise requires, “baseball and softball complex” and “owner or 4 operator” mean the same as defined in section 423.4, subsection 5 10. 6 2. Application. An entity that has made or is making an 7 application under section 15F.202, subsection 2, for financial 8 assistance for a project may make an application for the sales 9 tax rebate provided under section 423.4, subsection 10. The 10 application shall be made in the same manner and form as 11 provided in section 15F.202, subsection 2, and shall include 12 but not be limited to the same information as required in 13 section 15F.202, subsection 2. 14 3. Eligibility. 15 a. The project must satisfy all of the following criteria to 16 be eligible for a sales tax rebate: 17 (1) The project upon completion will be a baseball and 18 softball complex. 19 (2) The entity making the application is or will become the 20 owner or operator of the baseball and softball complex. 21 b. A project shall not be required to be receiving an award 22 of financial assistance under another part of the program 23 in order to be awarded a sales tax rebate pursuant to this 24 section. 25 4. Application review and award. 26 a. Applications for the sales tax rebate shall be submitted 27 to the authority. For those applications that meet the 28 eligibility criteria, the authority shall provide a staff 29 review and evaluation, with recommendation, to the board. 30 b. When reviewing applications, the authority shall 31 consider, at a minimum, the same factors provided in section 32 15F.203, subsection 3, excluding paragraph “f” of that 33 subsection. 34 c. Upon review of the recommendation of the authority, the 35 -1- LSB 6009HV (2) 86 mm/sc 1/ 9

H.F. 2463 board shall approve, defer, or deny an application. 1 d. Upon approval of an application for a sales tax rebate, 2 the board shall notify the department of revenue regarding the 3 amount of the sales tax rebate award, a description of the 4 project comprising the baseball and softball complex, and any 5 other information reasonably requested by the department in 6 order to administer the sales tax rebate. 7 5. Maximum award amount. The board shall not award more 8 than two million five hundred thousand dollars in sales tax 9 rebates for any one baseball and softball complex, and shall 10 not award more than sixteen million five hundred thousand 11 dollars in total sales tax rebates for all baseball and 12 softball complexes. 13 6. Future repeal. This section is repealed thirty days 14 following the date on which sixteen million five hundred 15 thousand dollars in total rebates have been awarded. The board 16 shall notify the Iowa Code editor upon occurrence of this 17 condition. 18 Sec. 2. Section 423.2, subsection 11, paragraph a, 19 subparagraph (2), Code 2016, is amended to read as follows: 20 (2) Subsequent to the deposit into the general fund of 21 the state, the director shall credit an amount equal to the 22 product of the sales tax rate imposed in this section times 23 the sales price of the tangible personal property or services 24 furnished to purchasers at a baseball and softball tournament 25 facility and movie site meeting complex that has received an 26 award under section 15F.207 and that meets the qualifications 27 of section 423.4, subsection 10 , into the baseball and softball 28 tournament facility and movie site complex sales tax rebate 29 fund created under section 423.4, subsection 10 , paragraph “e” . 30 The director shall credit the moneys beginning the first day of 31 the quarter following July 1, 2012 2016 . This subparagraph is 32 repealed June 30, 2024, or thirty days following the date on 33 which sixteen million five hundred thousand dollars in total 34 rebates have been provided under section 423.4, subsection 35 -2- LSB 6009HV (2) 86 mm/sc 2/ 9

H.F. 2463 10 , or thirty days following the date on which rebates cease 1 as provided in section 423.4, subsection 10 , paragraph “c” , 2 subparagraph (4), whichever is earliest . 3 Sec. 3. Section 423.2, subsection 11, paragraph b, 4 subparagraph (4), Code 2016, is amended to read as follows: 5 (4) Transfer to the baseball and softball tournament 6 facility and movie site complex sales tax rebate fund that 7 portion of the sales tax receipts described in paragraph “a” , 8 subparagraph (2), remaining after the transfers required 9 under subparagraphs (1), (2), and (3) of this paragraph “b” . 10 This subparagraph is repealed June 30, 2024, or thirty days 11 following the date on which sixteen million five hundred 12 thousand dollars in total rebates have been provided under 13 section 423.4, subsection 10 , or thirty days following the date 14 on which rebates cease as provided in section 423.4, subsection 15 10 , paragraph “c ”, subparagraph (4), whichever is earliest . 16 Sec. 4. Section 423.4, subsection 10, Code 2016, is amended 17 to read as follows: 18 10. a. For purposes of this subsection : 19 (1) “Baseball and softball tournament facility and movie 20 site” means a baseball and softball tournament complex and 21 tourist destination, which facility is located on a maximum of 22 two hundred seventy-nine acres, located inside or within three 23 miles of the city limits of a city with a population of at least 24 four thousand but not more than five thousand five hundred 25 residents, which city is located in a county with a population 26 of at least ninety-three thousand but not more than one hundred 27 thousand residents and where the construction on the baseball 28 and softball tournament facility commenced not later than July 29 1, 2013, and the cost of the construction upon completion was 30 at least thirty-eight million dollars. “Baseball and softball 31 complex” means a baseball and softball complex located in this 32 state that has a project completion date that is after July 1, 33 2016, and that has a cost of construction upon completion that 34 is at least ten million dollars. 35 -3- LSB 6009HV (2) 86 mm/sc 3/ 9

H.F. 2463 (2) “Change of control” means any of the following: 1 (a) Any change in the ownership of the original or any 2 subsequent legal entity that is the owner or operator of the 3 baseball and softball tournament facility and movie site 4 complex such that more than fifty-one percent of the equity 5 interests or voting interest in the legal entity cease ceases 6 to be owned by individuals who are residents of Iowa, an Iowa 7 corporation, or combination of both. 8 (b) The original owners of the legal entity that is the 9 owner or operator of the baseball and softball tournament 10 facility and movie site complex shall collectively cease to 11 own or control more than fifty percent of the voting equity 12 interests or voting interest of such legal entity or shall 13 otherwise cease to have effective control of such legal entity. 14 (3) “Iowa corporation” means a corporation incorporated 15 under the laws of Iowa where more than fifty-one percent of the 16 corporation’s equity interests or voting interest are owned or 17 controlled by individuals who are residents of Iowa. 18 (4) “Owner or operator” means a for-profit legal entity 19 where more than fifty-one percent of its equity interests are 20 or voting interest is owned or controlled by individuals who 21 are residents of Iowa, an Iowa corporation, or combination 22 of both and that is the owner or operator of a baseball and 23 softball tournament facility and movie site complex and is 24 primarily a promoter of baseball and or softball tournaments , 25 or both . 26 (5) “Population” means the population based upon the 2010 27 certified federal census. “Project completion date” means the 28 date on which a baseball and softball complex is placed into 29 service. 30 b. The owner or operator of a baseball and softball 31 tournament facility and movie site may apply to the department 32 for complex that has received an award under section 15F.207 33 shall be entitled to a rebate of sales tax imposed and 34 collected by retailers upon sales of any goods, wares, 35 -4- LSB 6009HV (2) 86 mm/sc 4/ 9

H.F. 2463 merchandise, admission tickets, or services furnished to 1 purchasers at the baseball and softball tournament facility and 2 movie site complex . 3 c. The rebate may be obtained only in the following amounts 4 and manner and only under the following conditions: 5 (1) On forms furnished by the department within the time 6 period provided by the department by rule, which time period 7 shall not be longer than quarterly. 8 (2) The owner or operator shall provide information as 9 deemed necessary by the department. 10 (3) The transactions for which sales tax was collected and 11 the rebate is sought occurred on or after January 1, 2014, but 12 before January 1, 2024 the baseball and softball complex’s 13 project completion date or the date on which the award under 14 section 15F.207 was made, whichever is later, but before the 15 date which is ten years after the project completion date . 16 However, not more than the amount of rebates provided to a 17 baseball and softball complex shall not exceed the amount of 18 the award under section 15F.207, and not more than sixteen 19 million five hundred thousand dollars in total rebates shall be 20 provided pursuant to this subsection . 21 (4) Notwithstanding subparagraph (3), the rebate of 22 sales tax to a baseball and softball complex shall cease for 23 transactions occurring on or after the date of the change of 24 control of the baseball and softball tournament facility and 25 movie site complex . 26 d. To assist the department in determining the amount of the 27 rebate, the owner or operator shall identify to the department 28 retailers located at the baseball and softball tournament 29 facility and movie site complex who will be collecting sales 30 tax. The department shall verify such identity and ensure 31 that all proper permits have been issued. For purposes of 32 this subsection , advance ticket and admissions sales shall be 33 considered occurring at the baseball and softball tournament 34 facility and movie site complex regardless of where the 35 -5- LSB 6009HV (2) 86 mm/sc 5/ 9

H.F. 2463 transactions actually occur. 1 e. There is established within the state treasury under 2 the control of the department a baseball and softball 3 tournament facility and movie site complex sales tax rebate 4 fund consisting of the amount of state sales tax revenues 5 transferred pursuant to section 423.2, subsection 11 , paragraph 6 “b” , subparagraph (4). An account is created within the fund 7 for each baseball and softball tournament facility and movie 8 site complex receiving an award under section 15F.207 and 9 meeting the qualifications of this subsection . Moneys in the 10 fund shall only be used to provide rebates of state sales tax 11 pursuant to this subsection , and only the state sales tax 12 revenues in the baseball and softball tournament facility and 13 movie site complex rebate fund are subject to rebate under this 14 subsection. Not more than The amount of rebates paid from each 15 baseball and softball complex’s account within the fund shall 16 not exceed the amount of the award under section 15F.207, and 17 not more than sixteen million five hundred thousand dollars in 18 total rebates shall be paid from the fund. Any moneys in the 19 fund which represent state sales tax revenue for which the time 20 period in paragraph “c” for receiving a rebate has expired, 21 or which otherwise represent state sales tax revenue that has 22 become ineligible for rebate pursuant to this subsection , shall 23 immediately revert to the general fund of this state. 24 f. Upon determining that the conditions and requirements 25 of this subsection and the department are met, the department 26 shall issue a warrant from the applicable account within the 27 baseball and softball tournament facility and movie site 28 complex rebate fund to the owner or operator in the amount 29 equal to the amount claimed and verified by the department. 30 g. This subsection is repealed June 30, 2024, or thirty 31 days following the date on which sixteen million five hundred 32 thousand dollars in total rebates have been provided , or thirty 33 days following the date on which rebates cease as provided in 34 paragraph “c” , subparagraph (4), whichever is the earliest . 35 -6- LSB 6009HV (2) 86 mm/sc 6/ 9

H.F. 2463 The director of revenue shall notify the Iowa Code editor upon 1 occurrence of this condition. 2 EXPLANATION 3 The inclusion of this explanation does not constitute agreement with 4 the explanation’s substance by the members of the general assembly. 5 This bill modifies the rebate of state sales tax to the owner 6 or operator of a baseball and softball tournament facility and 7 movie site and makes the rebate subject to an award by the 8 vision Iowa board. 9 BACKGROUND. 2012 Iowa Acts, chapter 1098, enacted a sales 10 tax rebate to the owner or operator of a baseball and softball 11 tournament facility and movie site (facility). In order to 12 be eligible for the rebate, the facility must be located on a 13 maximum of 279 acres and located inside or within three miles 14 of the city limits of a city with a population between 4,000 15 and 5,500, which is located in a county with a population 16 between 93,000 and 100,000. Construction on the facility 17 must commence not later than July 1, 2013, and the cost of 18 construction must be at least $38 million. 19 The rebate only applies to state sales tax collected at 20 the facility between January 1, 2014, and December 31, 2023. 21 The rebate ceases if control of the facility changes. The 22 rebate provision is repealed June 30, 2024, or 30 days after a 23 total of $16.5 million has been rebated, or 30 days following 24 the change of control causing the rebates to cease, whichever 25 occurs earlier. 26 CHANGES IN BILL. The bill changes the name of the qualifying 27 “baseball and softball tournament facility and movie site” to a 28 “baseball and softball complex”, changes the requirements to 29 qualify for the sales tax rebate, and makes the rebate subject 30 to an award by the vision Iowa board (board). 31 An entity that is or will become the owner or operator of 32 a baseball and softball complex and that has or is making an 33 application to the economic development authority (EDA) for 34 financial assistance under the community attraction and tourism 35 -7- LSB 6009HV (2) 86 mm/sc 7/ 9

H.F. 2463 program (CAT program) is eligible to apply for the sales tax 1 rebate in the same manner and form as an application for the 2 CAT program is made. However, a project for a baseball and 3 softball complex is not required to be receiving financial 4 assistance under another part of the CAT program in order to 5 be awarded a sales tax rebate. In order to be eligible for a 6 rebate award, the project upon completion will be a baseball 7 and softball complex. Applications are reviewed by the EDA in 8 the same manner as applications under the CAT program, except 9 that the EDA is not required to consider whether the applicant 10 has received financial assistance under the CAT program for the 11 same project. Upon review of the application, the EDA makes a 12 recommendation to the board and the board approves, defers, or 13 denies the application. The board shall not award more than 14 $2.5 million in sales tax rebates for any one baseball and 15 softball complex and shall not award more than $16.5 million 16 in total sales tax rebates for all baseball and softball 17 complexes. The sales tax rebate award provisions are repealed 18 30 days after the board awards a total of $16.5 million in 19 sales tax rebates. A baseball and softball complex that has 20 received an award qualifies for the sales tax rebate if it is 21 located in this state, has a project completion date that is 22 after July 1, 2016, and has construction costs of at least $10 23 million. “Project completion date” is defined in the bill to 24 mean the date on which the baseball and softball complex is 25 placed into service. 26 The bill removes the requirement that the legal entity 27 that is the owner or operator of the complex be a for-profit 28 legal entity, and further modifies the percentage-of-ownership 29 requirements for qualification as an owner or operator and 30 for the occurrence of a change of control to specify that the 31 percentage is calculated using the equity interests or voting 32 interest owned or controlled by Iowa residents. Under current 33 law, the calculation only considers equity interests owned by 34 Iowa residents. 35 -8- LSB 6009HV (2) 86 mm/sc 8/ 9

H.F. 2463 The bill changes the availability of the sales tax rebate for 1 each baseball and softball complex that has received an award 2 to specify that the rebate only applies to sales tax collected 3 for the period that begins on the complex’s project completion 4 date or the date on which the rebate award was made, whichever 5 is later, and that ends on the date which is 10 years after the 6 complex’s project completion date. 7 The bill specifies that the amount of sales tax rebates paid 8 to a baseball and softball complex cannot exceed the amount 9 of the rebate award made by the board. The bill changes the 10 repeal date of the rebate provision to provide that the rebate 11 is repealed 30 days after a total of $16.5 million has been 12 rebated. 13 -9- LSB 6009HV (2) 86 mm/sc 9/ 9