HSB 189 (LSB 1852HC (4) 88)

HOUSE FILE _____ 

BY  (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON HEIN)

A BILL FOR

An Act relating to the selling or furnishing of water by mobile home parks including creating an exemption to the water service excise tax, and by modifying qualifications for public water supply systems.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 423G.4, Code 2019, is amended by striking the section and inserting in lieu thereof the following:
   423G.4  Exemptions.
   There is exempted from the tax imposed by this chapter the following:
   1.  The sales price from transactions exempt from state sales tax under section 423.3. However, the sales price from transactions exempt from state sales tax under section 423.3, subsection 103, shall not be exempt unless as provided in subsection 2.
   2.  a.  The sales price from the sale or furnishing of water by a mobile home park through a piped distribution system maintained by the mobile home park, to a consumer or user of water who is a tenant, if all of the following apply:
   (1)  The water was obtained from a water utility.
   (2)  A tax was imposed by this chapter on the sales price from the sale or furnishing of water by a water utility to the mobile home park based upon readings of the master meter of the mobile home park.
   (3)  The tenant is not charged more than the rate the tenant would be charged for consuming or using water from the water utility.
   b.  As used in this subsection: 
   (1)  “Master meter” means a single meter used in determining the amount of water provided to a mobile home park.
   (2)  “Mobile home park” means the same as defined in section 562B.7.
   (3)  “Piped distribution system” includes a submetered distribution system.
   (4)  “Tenant” means the same as defined in section 562B.7.
   (5)  “Water utility” means a public utility as defined in section 476.1 that furnishes water by a piped distribution system to the public for compensation.
    Sec. 2.  Section 455B.171, subsection 26, Code 2019, is amended to read as follows:
   26.  “Public water supply system” means, except as provided in section 455B.200, a system for the provision to the public of piped water for human consumption, if the system has at least fifteen service connections or regularly serves at least twenty-five individuals. The term includes any source of water and any collection, treatment, storage, and distribution facilities under control of the operator of the system and used primarily in connection with the system, and any collection or pretreatment storage facilities not under such control which are used primarily in connection with the system.
    Sec. 3.  NEW SECTION.  455B.200  Mobile home parks.
   1.  As used in this section:
   a.  “Mobile home park” means the same as defined in section 562B.7.
   b.  “Tenant” means the same as defined in section 562B.7.
   c.  “Water utility” means a public utility as defined in section 476.1 that furnishes water by a piped distribution system to the public for compensation.
   2.  For purposes of this part I, a mobile home park shall not be considered a public water supply system if the mobile home park sells or furnishes water to a tenant and all of the following apply:
   a.  The water was obtained from a water utility prior to selling or furnishing the water to a tenant.
   b.  The tenant is not charged more than the rate the tenant would be charged for consuming or using water from the water utility.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to the selling or furnishing of water by mobile home parks including creating an exemption to the water service excise tax, and by modifying qualifications for private and public water supply systems.
   The bill exempts from the water service excise tax the sales price from the sale or furnishing of water by a mobile home park through a piped distribution system maintained by the mobile home park to a tenant. To qualify for the water service tax exemption under the bill, the following must apply: the water was obtained from a water utility, a water service excise tax was imposed on the sales price from the sale or furnishing of water by a water utility to the mobile home park, and the tenant is not charged more than the rate the tenant would be charged for consuming or using water from the water utility. 
   The bill modifies the qualifications for a “public water supply system” to exclude a mobile home park, if the mobile home park sells or furnishes water to a tenant and all of the following apply: the water was obtained from a water utility, and the tenant is not charged more than the rate the tenant would be charged for consuming or using water from the water utility. Under current law, a public water supply system is regulated by the department of natural resources.