SF 127 (LSB 1647XS (2) 87)

SENATE FILE 127

BY  SINCLAIR and ROZENBOOM

A BILL FOR

An Act modifying the rebate of sales and use tax to the owner or operator of a raceway facility.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 423.4, subsection 11, paragraph c, subparagraph (4), subparagraph division (a), Code 2017, is amended to read as follows:
   (a)  Twenty-five percent of the The total project costs, as determined by the department, if such a project is undertaken by the owner or operator. For purposes of this subparagraph division, “project costs” means costs incurred by the owner or operator in connection with the planning, design, construction, and installation of property that becomes an integral part of the project under contract which project upon completion becomes part of the raceway facility, and other costs incurred by the owner or operator in connection with the project that are customarily associated with the renovation, remodeling, reconstruction, expansion, equipping, or improvement of real property. Project costs shall be determined after the department receives notification of completion of the project pursuant to paragraph “b”, subparagraph (2), subparagraph division (b). However, if rebates cease because of a change of control of the raceway facility as provided in paragraph “c”, subparagraph (5), project costs shall be determined as of the date the change of control occurs.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill modifies the rebate of sales and use tax to the owner or operator of a raceway facility. The rebate is available for sales tax collected on purchases made at the raceway facility, and for sales and use tax paid by a contractor in completion of a project at the raceway facility, provided the sales tax was collected or paid between January 1, 2015, and January 1, 2025. Under current law, the total rebate is limited to the lesser of $2 million or 25 percent of the project costs, if such a project is undertaken at the raceway facility. The bill amends this cap to provide that the total rebate is limited to the lesser of $2 million or the total project costs, if such a project is undertaken at the raceway facility.