H.F. 142 Section 1. Section 423.45, subsection 3, Code 2021, is 1 amended to read as follows: 2 3. In the circumstances described in subsections 1 and 2 , 3 a retailer has the option to either shall return any excess 4 amount of tax paid to a consumer or user , or to remit the 5 amount which a consumer or user has paid to the retailer to the 6 department . 7 EXPLANATION 8 The inclusion of this explanation does not constitute agreement with 9 the explanation’s substance by the members of the general assembly. 10 This bill relates to sales and use tax refunds. Currently, 11 if the amount of tax collected by a retailer is incorrect, and 12 the incorrect amount is paid by the consumer to the retailer, 13 the retailer has two options to refund any excess tax amount. 14 First, the retailer may refund the excess tax amount to the 15 consumer. Second, the retailer may remit the excess tax amount 16 paid by the consumer to the department of revenue, and the 17 consumer may file a claim for a refund or credit with the 18 department of revenue under Code section 423.47. 19 The bill strikes the option of the retailer to remit the 20 excess tax amount paid by the consumer to the department of 21 revenue, which requires the consumer to file a claim for a 22 refund or credit with the department of revenue. The bill 23 requires the retailer to refund any excess tax amount paid by 24 the consumer to the consumer. 25 -1- LSB 1845YH (2) 89 jm/jh 1/ 1