H.F. 2397 Section 1. NEW SECTION . 15F.208 Baseball and softball park 1 project sales tax rebate. 2 1. As used in this section, unless the context otherwise 3 requires: “baseball and softball park” and “owner or operator” 4 mean the same as defined in section 423.4, subsection 10A. 5 2. An entity that has made or is making an application 6 under section 15F.202, subsection 2, for financial assistance 7 for a project may make an application for the sales tax rebate 8 provided under section 423.4, subsection 10A. The application 9 shall be made in the same manner and form as provided in 10 section 15F.202, subsection 2, and shall include but not be 11 limited to the same information as required in section 15F.202, 12 subsection 2. 13 3. a. The project must satisfy all of the following 14 criteria to be eligible for a sales tax rebate: 15 (1) The project upon completion primarily will be a baseball 16 and softball park. 17 (2) The entity making the application is or will become the 18 owner or operator of the baseball and softball park. 19 b. A project shall not be required to be receiving an award 20 of financial assistance under another part of the program 21 in order to be awarded a sales tax rebate pursuant to this 22 section. 23 4. a. Applications for the sales tax rebate shall be 24 submitted to the authority. For those applications that meet 25 the eligibility criteria, the authority shall provide a staff 26 review and evaluation, with recommendation, to the board. 27 b. When reviewing applications, the authority shall 28 consider, at a minimum, the same factors provided in section 29 15F.203, subsection 3, excluding paragraph “f” of that 30 subsection. 31 c. Upon review of the recommendation of the authority, the 32 board shall approve, defer, or deny an application. 33 d. Upon approval of an application for a sales tax rebate, 34 the board shall notify the department of revenue regarding the 35 -1- LSB 5929HH (3) 89 jm/jh 1/ 8

H.F. 2397 amount of the sales tax rebate award, a description of the 1 project comprising the baseball and softball park, and any 2 other information reasonably requested by the department in 3 order to administer the sales tax rebate. 4 5. The board shall not award more than five million dollars 5 in sales tax rebates for any one baseball and softball park 6 project, and shall not award more than five million dollars 7 in total sales tax rebates for all baseball and softball park 8 projects. 9 6. This section is repealed thirty days following the 10 date on which five million dollars in total rebates have been 11 awarded. The board shall notify the Iowa Code editor upon 12 occurrence of this condition. 13 Sec. 2. Section 423.2A, subsection 1, Code 2022, is amended 14 by adding the following new paragraph: 15 NEW PARAGRAPH . c. Subsequent to the deposit into the 16 general fund of the state, the director shall credit an amount 17 equal to the product of the sales tax rate imposed in section 18 423.2 times the sales price of the tangible personal property 19 or services furnished to purchasers at a baseball and softball 20 park that has received an award under section 15F.208, and 21 that meets the qualifications of section 423.4, subsection 22 10A, into the baseball and softball park sales tax rebate fund 23 created under section 423.4, subsection 10A, paragraph “e” . The 24 director shall credit the moneys beginning the first day of the 25 quarter following July 1, 2023. This paragraph is repealed 26 thirty days following the date on which five million dollars 27 in total rebates have been provided under section 423.4, 28 subsection 10A. 29 Sec. 3. Section 423.2A, subsection 2, Code 2022, is amended 30 by adding the following new paragraph: 31 NEW PARAGRAPH . 0e. Transfer to the baseball and softball 32 park sales tax rebate fund that portion of the sales tax 33 receipts described in subsection 1, paragraph “c”, remaining 34 after the transfers required under paragraphs “a” , “b” , “c” , 35 -2- LSB 5929HH (3) 89 jm/jh 2/ 8

H.F. 2397 “d” , and “e” of this subsection 2. This paragraph is repealed 1 thirty days following the date on which five million dollars 2 in total rebates have been provided under section 423.4, 3 subsection 10A. 4 Sec. 4. Section 423.4, Code 2022, is amended by adding the 5 following new subsection: 6 NEW SUBSECTION . 10A. a. For purposes of this subsection: 7 (1) “Baseball and softball park” means the construction of a 8 new baseball and softball park containing multiple baseball and 9 softball fields and including adjacent retail establishments 10 being developed in conjunction with the baseball and softball 11 park, that has a project completion date that is after July 1, 12 2023, and has a cost of construction upon completion that is 13 at least ten million dollars. 14 (2) “Change of control” means any of the following: 15 (a) Any change in the ownership of the original or any 16 subsequent legal entity that is the owner or operator of the 17 baseball and softball park such that more than fifty-one 18 percent of the equity interests or voting interest in the legal 19 entity ceases to be owned by individuals who are residents of 20 Iowa, an Iowa corporation, or combination of both. 21 (b) The original owners of the legal entity that is the 22 owner or operator of the baseball and softball park shall 23 collectively cease to own or control more than fifty percent of 24 the voting equity interests or voting interest of such legal 25 entity or shall otherwise cease to have effective control of 26 such legal entity. 27 (3) “Iowa corporation” means a corporation incorporated 28 under the laws of Iowa where more than fifty-one percent of the 29 corporation’s equity interests or voting interest are owned or 30 controlled by individuals who are residents of Iowa. 31 (4) “Owner or operator” means a legal entity where more than 32 fifty-one percent of its equity interest or voting interest 33 is owned or controlled by individuals who are residents of 34 Iowa, and Iowa corporation, or combination of both and that is 35 -3- LSB 5929HH (3) 89 jm/jh 3/ 8

H.F. 2397 the owner or operator of a baseball and softball park and is 1 primarily a promoter of baseball or softball tournaments, or 2 both. 3 (5) “Project completion date” means the date on which 4 baseball or softball games are first played at the baseball and 5 softball park. 6 (6) “Retail establishment” includes a place of lodging. 7 b. The owner or operator of a baseball and softball 8 park that has received an award under section 15F.208 shall 9 be entitled to a rebate of sales tax imposed and collected 10 by retailers upon sales of any goods, wares, merchandise, 11 admission tickets, or services furnished to purchasers at the 12 baseball and softball park. 13 c. The rebate may be obtained only in the following amounts 14 and manner and only under the following conditions: 15 (1) On forms furnished by the department within the time 16 period provided by the department by rule, which time period 17 shall not be longer than quarterly. 18 (2) The owner or operator shall provide information as 19 deemed necessary by the department. 20 (3) The transactions for which sales tax was collected 21 and the rebate is sought occurred on or after the project’s 22 completion date or the date on which the award under section 23 15F.208, was made, whichever is later, but before the date 24 which is ten years after the project completion date. However, 25 the amount of rebates provided to a baseball and softball park 26 shall not exceed the amount of the award under section 15F.208, 27 and not more than five million dollars in total rebates shall 28 be provided pursuant to this subsection. 29 (4) Notwithstanding subparagraph (3), the rebate of 30 sales tax to a baseball and softball park shall cease for 31 transactions occurring on or after the date of the change of 32 control of the baseball and softball park. 33 d. To assist the department in determining the amount 34 of the rebate, the owner or operator shall identify to the 35 -4- LSB 5929HH (3) 89 jm/jh 4/ 8

H.F. 2397 department retailers located at the baseball and softball park 1 who will be collecting sales tax. The department shall verify 2 such identity and ensure that all proper permits have been 3 issued. For purposes of this subsection, advance ticket and 4 admissions sales shall be considered occurring at the baseball 5 and softball park regardless of where the transactions actually 6 occur. 7 e. There is established within the state treasury under the 8 control of the department a baseball and softball park sales 9 tax rebate fund consisting of the amount of state sales tax 10 revenues transferred pursuant to section 423.2A, subsection 2, 11 paragraph “0e” . An account is created within the fund for each 12 baseball and softball park receiving an award under section 13 15F.208, and meeting the qualifications of this subsection. 14 Moneys in the fund shall only be used to provide rebates of 15 state sales tax pursuant to this subsection, and only the state 16 sales tax revenues in the baseball and softball park rebate 17 fund are subject to rebate under this subsection. The amount 18 of rebates paid from each baseball and softball park’s account 19 within the fund shall not exceed the amount of the award under 20 section 15F.208, and not more than five million dollars in 21 total rebates shall be paid from the fund. Any moneys in the 22 fund which represent state sales tax revenue for which the time 23 period in paragraph “c” for receiving a rebate has expired, 24 or which otherwise represent state sales tax revenue that has 25 become ineligible for rebate pursuant to this subsection, shall 26 immediately revert to the general fund of this state. 27 f. Upon determining that the conditions and requirements 28 of this subsection and the department are met, the department 29 shall issue a warrant from the applicable account within the 30 baseball and softball park rebate fund to the owner or operator 31 in the amount equal to the amount claimed and verified by the 32 department. 33 g. This subsection is repealed thirty days following the 34 date on which five million dollars in total rebates have been 35 -5- LSB 5929HH (3) 89 jm/jh 5/ 8

H.F. 2397 provided. The director of revenue shall notify the Iowa Code 1 editor upon 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 creates a state sales tax rebate to the owner or 6 operator of a newly constructed baseball and softball park and 7 makes the rebate subject to an award by the enhance Iowa board 8 (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. 2016 Iowa Acts, chapter 12 1117, modified the sales tax rebate program by eliminating 13 the rebate for movie sites and modified the rebate program 14 for baseball and softball facilities, and applied the rebate 15 program to baseball and softball complexes completed after July 16 1, 2016, and that had a cost of construction upon completion 17 that was at least $10 million. 18 The baseball and softball complex sales tax rebate program 19 created in 2016 Iowa Acts, chapter 1117, was repealed by its 20 own terms after the board awarded sales tax rebates totaling 21 $5 million, thus no new baseball and softball complexes are 22 eligible to receive a sales tax rebate. Currently, sales tax 23 rebates are occurring to the baseball and softball complexes 24 awarded sales tax rebates until the total rebate award limit of 25 $5 million has been achieved or 10 years after the last project 26 completion date, whichever is earlier. 27 BASEBALL AND SOFTBALL PARK REBATE PROGRAM. The bill changes 28 the name of the qualifying “baseball and softball complex” 29 to “baseball and softball park”, to distinguish it from the 30 ongoing “baseball and softball complex” rebate program. The 31 bill makes the “baseball and softball park” rebate program very 32 similar to the “baseball and softball complex” rebate program 33 enacted in 2016 Iowa Acts, chapter 1117. 34 The bill requires an owner or operator of a baseball 35 -6- LSB 5929HH (3) 89 jm/jh 6/ 8

H.F. 2397 and softball park to make an application to the economic 1 development authority (EDA) for financial assistance under the 2 community attraction and tourism program (CAT program) in the 3 same manner and form as an application for the CAT program is 4 made. However, a project for a baseball and softball park 5 is not required to be receiving financial assistance under 6 another part of the CAT program in order to be awarded a sales 7 tax rebate. In order to be eligible for a rebate award, the 8 project upon completion will be a baseball and softball park. 9 The bill defines a “baseball and softball park” to mean the 10 construction of a new baseball and softball park containing 11 multiple baseball and softball fields which includes adjacent 12 retail establishments being developed in conjunction with the 13 baseball and softball park, that has a project completion date 14 that is after July 1, 2023, and has a cost of construction upon 15 completion that is at least $10 million. 16 The bill defines “owner or operator” to means a legal 17 entity where more than 51 percent of its equity interest or 18 voting interest is owned or controlled by individuals who are 19 residents of Iowa, an Iowa corporation, or combination of both 20 and that is the owner or operator of a baseball and softball 21 park and is primarily a promoter of baseball or softball 22 tournaments, or both. 23 Applications for a rebate are reviewed by the EDA in the 24 same manner as applications under the CAT program, except that 25 the EDA is not required to consider whether the applicant has 26 received financial assistance under the CAT program for the 27 same project. Upon review of the application, the EDA makes a 28 recommendation to the board and the board approves, defers, or 29 denies the application. 30 The board shall not award more than $5 million in sales 31 tax rebates for any one baseball and softball park and shall 32 not award more than $5 million in total sales tax rebates for 33 all baseball and softball parks. The sales tax rebate award 34 provisions are repealed 30 days after the board awards a total 35 -7- LSB 5929HH (3) 89 jm/jh 7/ 8

H.F. 2397 of $5 million in sales tax rebates. A baseball and softball 1 park that has received an award qualifies for the sales tax 2 rebate if it is located in this state, has a project completion 3 date that is after July 1, 2023, and has construction costs of 4 at least $10 million. “Project completion date” is defined in 5 the bill to mean the date on which baseball or softball games 6 are first played at the baseball and softball park. 7 Under the bill, the availability of the sales tax rebate only 8 applies to sales tax collected for the period that begins on 9 the complex’s project completion date or the date on which the 10 rebate award was made, whichever is later, and ends on the date 11 which is 10 years after the complex’s project completion date. 12 FUTURE REPEAL. The bill repeals the baseball and softball 13 park rebate program 30 days after a total of $5 million has 14 been awarded by the board, and repeals the remaining portions 15 of the program 30 days after $5 million in sales tax rebates 16 have been provided to the baseball and softball parks receiving 17 an award under the bill. 18 -8- LSB 5929HH (3) 89 jm/jh 8/ 8