S.F. 2312 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: 4 a. “Baseball and softball complex” and “owner or operator” 5 mean the same as defined in section 423.4, subsection 10. 6 b. “Board” means the same as defined in section 15.102. 7 2. Application. An entity that has made or is making an 8 application under section 15F.202, subsection 2, for financial 9 assistance for a project may make an application for the sales 10 tax rebate provided under section 423.4, subsection 10. The 11 application shall be made in the same manner and form as 12 provided in section 15F.202, subsection 2, and shall include 13 but not be limited to the same information as required in 14 section 15F.202, subsection 2. 15 3. Eligibility. 16 a. The project must satisfy all of the following criteria to 17 be eligible for a sales tax rebate: 18 (1) The project upon completion will be a baseball and 19 softball complex. 20 (2) The entity making the application is or will become the 21 owner or operator of the baseball and softball complex. 22 b. A project shall not be required to be receiving an award 23 of financial assistance under another part of the program 24 in order to be awarded a sales tax rebate pursuant to this 25 section. 26 4. Application review and award. 27 a. Applications for the sales tax rebate shall be submitted 28 to the authority. For those applications that meet the 29 eligibility criteria, the authority shall provide a staff 30 review and evaluation, with recommendation, to the board. 31 b. When reviewing applications, the authority shall 32 consider, at a minimum, the same factors provided in section 33 15F.203, subsection 3, excluding paragraph “f” of that 34 subsection. 35 -1- LSB 6009SZ (3) 86 mm/sc 1/ 9

S.F. 2312 c. Upon review of the recommendation of the authority, the 1 board shall approve, defer, or deny an application. 2 d. Upon approval of an application for a sales tax rebate, 3 the board shall notify the department of revenue regarding the 4 amount of the sales tax rebate award, a description of the 5 project comprising the baseball and softball complex, and any 6 other information reasonably requested by the department in 7 order to administer the sales tax rebate. 8 5. Maximum award amount. The board shall not award more 9 than two million five hundred thousand dollars in sales tax 10 rebates for any one baseball and softball complex, and shall 11 not award more than sixteen million five hundred thousand 12 dollars in total sales tax rebates for all baseball and 13 softball complexes. 14 6. Future repeal. This section is repealed thirty days 15 following the date on which sixteen million five hundred 16 thousand dollars in total rebates have been awarded. The board 17 shall notify the Iowa Code editor upon occurrence of this 18 condition. 19 Sec. 2. Section 423.2, subsection 11, paragraph a, 20 subparagraph (2), Code 2016, is amended to read as follows: 21 (2) Subsequent to the deposit into the general fund of 22 the state, the director shall credit an amount equal to the 23 product of the sales tax rate imposed in this section times 24 the sales price of the tangible personal property or services 25 furnished to purchasers at a baseball and softball tournament 26 facility and movie site meeting complex that has received an 27 award under section 15F.207 and that meets the qualifications 28 of section 423.4, subsection 10 , into the baseball and softball 29 tournament facility and movie site complex sales tax rebate 30 fund created under section 423.4, subsection 10 , paragraph “e” . 31 The director shall credit the moneys beginning the first day of 32 the quarter following July 1, 2012 2016 . This subparagraph is 33 repealed June 30, 2024, or thirty days following the date on 34 which sixteen million five hundred thousand dollars in total 35 -2- LSB 6009SZ (3) 86 mm/sc 2/ 9

S.F. 2312 rebates have been provided under section 423.4, subsection 1 10 , or thirty days following the date on which rebates cease 2 as provided in section 423.4, subsection 10 , paragraph “c” , 3 subparagraph (4), whichever is earliest . 4 Sec. 3. Section 423.2, subsection 11, paragraph b, 5 subparagraph (4), Code 2016, is amended to read as follows: 6 (4) Transfer to the baseball and softball tournament 7 facility and movie site complex sales tax rebate fund that 8 portion of the sales tax receipts described in paragraph “a” , 9 subparagraph (2), remaining after the transfers required 10 under subparagraphs (1), (2), and (3) of this paragraph “b” . 11 This subparagraph is repealed June 30, 2024, or thirty days 12 following the date on which sixteen million five hundred 13 thousand dollars in total rebates have been provided under 14 section 423.4, subsection 10 , or thirty days following the date 15 on which rebates cease as provided in section 423.4, subsection 16 10 , paragraph “c ”, subparagraph (4), whichever is earliest . 17 Sec. 4. Section 423.4, subsection 10, Code 2016, is amended 18 to read as follows: 19 10. a. For purposes of this subsection : 20 (1) “Baseball and softball tournament facility and movie 21 site” means a baseball and softball tournament complex and 22 tourist destination, which facility is located on a maximum of 23 two hundred seventy-nine acres, located inside or within three 24 miles of the city limits of a city with a population of at least 25 four thousand but not more than five thousand five hundred 26 residents, which city is located in a county with a population 27 of at least ninety-three thousand but not more than one hundred 28 thousand residents and where the construction on the baseball 29 and softball tournament facility commenced not later than July 30 1, 2013, and the cost of the construction upon completion was 31 at least thirty-eight million dollars. “Baseball and softball 32 complex” means a baseball and softball complex located in this 33 state that has a project completion date that is after July 1, 34 2016, and that has a cost of construction upon completion that 35 -3- LSB 6009SZ (3) 86 mm/sc 3/ 9

S.F. 2312 is at least ten million dollars. 1 (2) “Change of control” means any of the following: 2 (a) Any change in the ownership of the original or any 3 subsequent legal entity that is the owner or operator of the 4 baseball and softball tournament facility and movie site 5 complex such that more than fifty-one percent of the equity 6 interests or voting interest in the legal entity cease ceases 7 to be owned by individuals who are residents of Iowa, an Iowa 8 corporation, or combination of both. 9 (b) The original owners of the legal entity that is the 10 owner or operator of the baseball and softball tournament 11 facility and movie site complex shall collectively cease to 12 own or control more than fifty percent of the voting equity 13 interests or voting interest of such legal entity or shall 14 otherwise cease to have effective control of such legal entity. 15 (3) “Iowa corporation” means a corporation incorporated 16 under the laws of Iowa where more than fifty-one percent of the 17 corporation’s equity interests or voting interest are owned or 18 controlled by individuals who are residents of Iowa. 19 (4) “Owner or operator” means a for-profit legal entity 20 where more than fifty-one percent of its equity interests are 21 or voting interest is owned or controlled by individuals who 22 are residents of Iowa, an Iowa corporation, or combination 23 of both and that is the owner or operator of a baseball and 24 softball tournament facility and movie site complex and is 25 primarily a promoter of baseball and or softball tournaments , 26 or both . 27 (5) “Population” means the population based upon the 2010 28 certified federal census. “Project completion date” means the 29 date on which a baseball and softball complex is placed into 30 service. 31 b. The owner or operator of a baseball and softball 32 tournament facility and movie site may apply to the department 33 for complex that has received an award under section 15F.207 34 shall be entitled to a rebate of sales tax imposed and 35 -4- LSB 6009SZ (3) 86 mm/sc 4/ 9

S.F. 2312 collected by retailers upon sales of any goods, wares, 1 merchandise, admission tickets, or services furnished to 2 purchasers at the baseball and softball tournament facility and 3 movie site complex . 4 c. The rebate may be obtained only in the following amounts 5 and manner and only under the following conditions: 6 (1) On forms furnished by the department within the time 7 period provided by the department by rule, which time period 8 shall not be longer than quarterly. 9 (2) The owner or operator shall provide information as 10 deemed necessary by the department. 11 (3) The transactions for which sales tax was collected and 12 the rebate is sought occurred on or after January 1, 2014, but 13 before January 1, 2024 the baseball and softball complex’s 14 project completion date or the date on which the award under 15 section 15F.207 was made, whichever is later, but before the 16 date which is ten years after the project completion date . 17 However, not more than the amount of rebates provided to a 18 baseball and softball complex shall not exceed the amount of 19 the award under section 15F.207, and not more than sixteen 20 million five hundred thousand dollars in total rebates shall be 21 provided pursuant to this subsection . 22 (4) Notwithstanding subparagraph (3), the rebate of 23 sales tax to a baseball and softball complex shall cease for 24 transactions occurring on or after the date of the change of 25 control of the baseball and softball tournament facility and 26 movie site complex . 27 d. To assist the department in determining the amount of the 28 rebate, the owner or operator shall identify to the department 29 retailers located at the baseball and softball tournament 30 facility and movie site complex who will be collecting sales 31 tax. The department shall verify such identity and ensure 32 that all proper permits have been issued. For purposes of 33 this subsection , advance ticket and admissions sales shall be 34 considered occurring at the baseball and softball tournament 35 -5- LSB 6009SZ (3) 86 mm/sc 5/ 9

S.F. 2312 facility and movie site complex regardless of where the 1 transactions actually occur. 2 e. There is established within the state treasury under 3 the control of the department a baseball and softball 4 tournament facility and movie site complex sales tax rebate 5 fund consisting of the amount of state sales tax revenues 6 transferred pursuant to section 423.2, subsection 11 , paragraph 7 “b” , subparagraph (4). An account is created within the fund 8 for each baseball and softball tournament facility and movie 9 site complex receiving an award under section 15F.207 and 10 meeting the qualifications of this subsection . Moneys in the 11 fund shall only be used to provide rebates of state sales tax 12 pursuant to this subsection , and only the state sales tax 13 revenues in the baseball and softball tournament facility and 14 movie site complex rebate fund are subject to rebate under this 15 subsection. Not more than The amount of rebates paid from each 16 baseball and softball complex’s account within the fund shall 17 not exceed the amount of the award under section 15F.207, and 18 not more than sixteen million five hundred thousand dollars in 19 total rebates shall be paid from the fund. Any moneys in the 20 fund which represent state sales tax revenue for which the time 21 period in paragraph “c” for receiving a rebate has expired, 22 or which otherwise represent state sales tax revenue that has 23 become ineligible for rebate pursuant to this subsection , shall 24 immediately revert to the general fund of this state. 25 f. Upon determining that the conditions and requirements 26 of this subsection and the department are met, the department 27 shall issue a warrant from the applicable account within the 28 baseball and softball tournament facility and movie site 29 complex rebate fund to the owner or operator in the amount 30 equal to the amount claimed and verified by the department. 31 g. This subsection is repealed June 30, 2024, or thirty 32 days following the date on which sixteen million five hundred 33 thousand dollars in total rebates have been provided , or thirty 34 days following the date on which rebates cease as provided in 35 -6- LSB 6009SZ (3) 86 mm/sc 6/ 9

S.F. 2312 paragraph “c” , subparagraph (4), whichever is the earliest . 1 The director of revenue shall notify the Iowa Code editor upon 2 occurrence of this condition. 3 EXPLANATION 4 The inclusion of this explanation does not constitute agreement with 5 the explanation’s substance by the members of the general assembly. 6 This bill modifies the rebate of state sales tax to the owner 7 or operator of a baseball and softball tournament facility and 8 movie site and makes the rebate subject to an award by the 9 economic development authority board. 10 BACKGROUND. 2012 Iowa Acts, chapter 1098, enacted a sales 11 tax rebate to the owner or operator of a baseball and softball 12 tournament facility and movie site (facility). In order to 13 be eligible for the rebate, the facility must be located on a 14 maximum of 279 acres and located inside or within three miles 15 of the city limits of a city with a population between 4,000 16 and 5,500, which is located in a county with a population 17 between 93,000 and 100,000. Construction on the facility 18 must commence not later than July 1, 2013, and the cost of 19 construction must be at least $38 million. 20 The rebate only applies to state sales tax collected at 21 the facility between January 1, 2014, and December 31, 2023. 22 The rebate ceases if control of the facility changes. The 23 rebate provision is repealed June 30, 2024, or 30 days after a 24 total of $16.5 million has been rebated, or 30 days following 25 the change of control causing the rebates to cease, whichever 26 occurs earlier. 27 CHANGES IN BILL. The bill changes the name of the qualifying 28 “baseball and softball tournament facility and movie site” to 29 a “baseball and softball complex”, changes the requirements 30 to qualify for the sales tax rebate, and makes the rebate 31 subject to an award by the economic development authority board 32 (board). 33 An entity that is or will become the owner or operator of 34 a baseball and softball complex and that has or is making an 35 -7- LSB 6009SZ (3) 86 mm/sc 7/ 9

S.F. 2312 application to the economic development authority (EDA) for 1 financial assistance under the community attraction and tourism 2 program (CAT program) is eligible to apply for the sales tax 3 rebate in the same manner and form as an application for the 4 CAT program is made. However, a project for a baseball and 5 softball complex is not required to be receiving financial 6 assistance under another part of the CAT program in order to 7 be awarded a sales tax rebate. In order to be eligible for a 8 rebate award, the project upon completion will be a baseball 9 and softball complex. Applications are reviewed by the EDA in 10 the same manner as applications under the CAT program, except 11 that the EDA is not required to consider whether the applicant 12 has received financial assistance under the CAT program for the 13 same project. Upon review of the application, the EDA makes a 14 recommendation to the board and the board approves, defers, or 15 denies the application. The board shall not award more than 16 $2.5 million in sales tax rebates for any one baseball and 17 softball complex and shall not award more than $16.5 million 18 in total sales tax rebates for all baseball and softball 19 complexes. The sales tax rebate award provisions are repealed 20 30 days after the board awards a total of $16.5 million in 21 sales tax rebates. A baseball and softball complex that has 22 received an award qualifies for the sales tax rebate if it is 23 located in this state, has a project completion date that is 24 after July 1, 2016, and has construction costs of at least $10 25 million. “Project completion date” is defined in the bill to 26 mean the date on which the baseball and softball complex is 27 placed into service. 28 The bill removes the requirement that the legal entity 29 that is the owner or operator of the complex be a for-profit 30 legal entity, and further modifies the percentage-of-ownership 31 requirements for qualification as an owner or operator and 32 for the occurrence of a change of control to specify that the 33 percentage is calculated using the equity interests or voting 34 interest owned or controlled by Iowa residents. Under current 35 -8- LSB 6009SZ (3) 86 mm/sc 8/ 9

S.F. 2312 law, the calculation only considers equity interests owned by 1 Iowa residents. 2 The bill changes the availability of the sales tax rebate for 3 each baseball and softball complex that has received an award 4 to specify that the rebate only applies to sales tax collected 5 for the period that begins on the complex’s project completion 6 date or the date on which the rebate award was made, whichever 7 is later, and that ends on the date which is 10 years after the 8 complex’s project completion date. 9 The bill specifies that the amount of sales tax rebates paid 10 to a baseball and softball complex cannot exceed the amount 11 of the rebate award made by the board. The bill changes the 12 repeal date of the rebate provision to provide that the rebate 13 is repealed 30 days after a total of $16.5 million has been 14 rebated. 15 -9- LSB 6009SZ (3) 86 mm/sc 9/ 9