Senate File 2371 - Introduced SENATE FILE 2371 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO SSB 3147) A BILL FOR An Act relating to state and local finances and the duties and 1 procedures of the department of revenue by providing for 2 electronic filing, communications, and records, modifying 3 transfer tax remittances, the assessment of property, the 4 collection of debt, the refunds of certain fuel taxes, and 5 the taxation of pass-through entities, reducing inheritance 6 taxes for unknown heirs, establishing salaries, providing 7 for a fee, making appropriations, and providing penalties, 8 and including effective date, applicability, and retroactive 9 applicability provisions. 10 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 11 TLSB 5321SV (3) 89 jm/jh

S.F. 2371 DIVISION I 1 RECORD RETENTION 2 Section 1. Section 422.68, subsections 3 and 4, Code 2022, 3 are amended to read as follows: 4 3. a. The director may shall destroy useless records and 5 returns, reports, and communications records of any taxpayer 6 filed with or kept by the department after those returns, 7 records, reports, or communications have been in the custody 8 of the department for a period of not less than three years or 9 such time as the director prescribes by rule. However, after 10 the accounts of a person have been examined by the director and 11 the amount of tax and penalty due have been finally determined, 12 the director may order the destruction of any records 13 previously filed by that taxpayer, notwithstanding the fact 14 that those records have been in the custody of the department 15 for a period less than three years. These records and 16 documents shall be destroyed in the manner prescribed by the 17 director by the end of the calendar year following the year in 18 which the record is determined by the department to be useless . 19 b. (1) A taxpayer or the department may request that a 20 specific record be retained beyond the useful life of the 21 record. 22 (2) The director shall have the discretion to approve or 23 deny a request made pursuant to subparagraph (1). 24 c. Notwithstanding paragraph “a” , the department may retain 25 any of the following: 26 (1) A record that no longer contains personally 27 identifiable information of a specific taxpayer. 28 (2) A record described in section 17A.3, subsection 1, 29 paragraph “d” or “e” . 30 d. The department shall adopt rules pursuant to chapter 17A 31 to administer this subsection. 32 4. The department may make photostat, microfilm, 33 electronic, or other electronic or photographic copies of 34 records , reports, and other papers either filed by the taxpayer 35 -1- LSB 5321SV (3) 89 jm/jh 1/ 50

S.F. 2371 or prepared by the department , or make such copies by other 1 methods . In addition, the department may create and or use 2 any system of recordkeeping reasonably calculated to preserve 3 its records for any time period required by law. When these 4 photostat, electronic, microfilm, or other copies have been a 5 copy is made, the department may destroy the original records 6 record which are the served as the basis for the copies copy 7 in any manner prescribed by the director. These photostat, 8 electronic, microfilm, or other types of copies, when no longer 9 of use, may be destroyed A copy shall be subject to destruction 10 as provided in subsection 3 . These photostat, microfilm, 11 electronic, or other records A copy shall be admissible in 12 evidence when duly certified and authenticated by the officer 13 having custody and control of them the record . 14 Sec. 2. EFFECTIVE DATE. This division of this Act takes 15 effect January 1, 2025. 16 DIVISION II 17 ELECTRONIC FILING —— FIDUCIARIES —— BUSINESS ENTITIES 18 Sec. 3. Section 422.14, subsection 1, Code 2022, is amended 19 to read as follows: 20 1. a. A fiduciary subject to taxation under this 21 subchapter , as provided in section 422.6 , shall make a return, 22 signed in accordance with forms and rules prescribed by the 23 director, for the individual, estate, or trust for whom or for 24 which the fiduciary acts, if the taxable income thereof amounts 25 to six hundred dollars or more. A nonresident fiduciary shall 26 file a copy of the federal income tax return for the current 27 tax year with the return required by this section . 28 b. (1) A fiduciary required to file a return under 29 paragraph “a” , shall file the return in an electronic format as 30 specified by the department in a tax year in which any of the 31 following circumstances apply: 32 (a) The individual, estate, or trust for whom or which the 33 fiduciary acts has two hundred fifty thousand dollars or more 34 in gross receipts, as defined by rule by the department. 35 -2- LSB 5321SV (3) 89 jm/jh 2/ 50

S.F. 2371 (b) The fiduciary is required to provide ten or more 1 schedules K-1 to the beneficiaries. 2 (c) The fiduciary reports twenty-five thousand dollars or 3 more of Iowa tax credits on the return. 4 (2) This paragraph “b” applies to any form or schedule 5 supporting a return required to be electronically filed or 6 any amended return if the amended return meets any of the 7 circumstances requiring electronic filing in this paragraph. 8 c. (1) Notwithstanding paragraph “b” , the department may 9 provide an exception to the electronic filing requirement. 10 (2) A return subject to the electronic filing requirement in 11 paragraph “b” that is filed in a manner other than an electronic 12 format specified by the department shall not be considered 13 a valid return unless the department provides an exception 14 pursuant to this paragraph. 15 d. The department shall adopt rules to implement this 16 subsection. 17 Sec. 4. Section 422.15, subsection 2, Code 2022, is amended 18 to read as follows: 19 2. a. Every partnership, including limited partnerships, 20 doing business in this state, or deriving income from sources 21 within this state as defined in section 422.32, subsection 1 , 22 paragraph “g” , shall make a return, stating specifically the 23 net income and capital gains or losses reported on the federal 24 partnership return, the names and addresses of the partners, 25 and their respective shares in said amounts. 26 b. (1) A partnership required to file a return under 27 paragraph “a” , shall file the return in an electronic format 28 specified by the department in a tax year in which any of the 29 following circumstances apply: 30 (a) The partnership has two hundred fifty thousand dollars 31 or more in total gross receipts, as defined by rule by the 32 department. 33 (b) The partnership is required to provide ten or more Iowa 34 schedules K-1 to the partners. 35 -3- LSB 5321SV (3) 89 jm/jh 3/ 50

S.F. 2371 (c) The partnership reports twenty-five thousand dollars or 1 more of Iowa tax credits on the return. 2 (2) This paragraph “b” applies to any form or schedule 3 supporting a return required to be electronically filed or 4 any amended return if the amended return meets any of the 5 circumstances requiring electronic filing in this paragraph. 6 c. (1) Notwithstanding paragraph “b” , the department may 7 provide an exception to the electronic filing requirement. 8 (2) A return subject to the electronic filing requirement in 9 paragraph “b” that is filed in a manner other than an electronic 10 format specified by the department shall not be considered 11 a valid return unless the department provides an exception 12 pursuant to this paragraph. 13 d. The department shall adopt rules to implement this 14 subsection. 15 Sec. 5. Section 422.16B, subsection 8, Code 2022, is amended 16 to read as follows: 17 8. a. For the efficient administration of this chapter , the 18 director may require or provide for the composite return on the 19 same form as or combined with a pass-through entity’s annual 20 return required under section 422.14 , 422.15 , or 422.36 , but in 21 such case the composite return shall be considered a separate 22 return for purposes of this chapter and section 421.27 . 23 b. (1) If a pass-through entity is required to file its 24 annual return under section 422.14, 422.15, or 422.36 in an 25 electronic format, the pass-through entity shall file its 26 composite return for the same taxable year in an electronic 27 format specified by the department. 28 (2) This paragraph applies to any form or schedule 29 supporting a return required to be electronically filed or 30 any amended return if the amended return meets any of the 31 circumstances requiring electronic filing in this paragraph. 32 c. A return subject to the electronic filing requirement in 33 paragraph “b” that is filed in a manner other than an electronic 34 format specified by the department shall not be considered a 35 -4- LSB 5321SV (3) 89 jm/jh 4/ 50

S.F. 2371 valid return. 1 d. The department shall adopt rules to implement this 2 subsection. 3 Sec. 6. Section 422.36, Code 2022, is amended by adding the 4 following new subsection: 5 NEW SUBSECTION . 8. a. A corporation shall file a return 6 required under this section in an electronic format specified 7 by the department for any tax year if any of the following 8 circumstances apply: 9 (1) The corporation has gross receipts of two hundred fifty 10 thousand dollars or more, as defined by rule by the department. 11 (2) The corporation reports twenty-five thousand dollars or 12 more of Iowa tax credits on the return. 13 b. A corporation described in subsection 5 shall file all 14 returns required under this section in an electronic format 15 specified by the department for any tax year if any of the 16 following circumstances apply: 17 (1) The corporation has gross receipts of two hundred fifty 18 thousand dollars or more, as defined by rule by the department. 19 (2) The corporation is required to provide ten or more Iowa 20 schedules K-1 to shareholders. 21 (3) The corporation reports twenty-five thousand dollars or 22 more of Iowa tax credits on the return. 23 c. This subsection applies to any form or schedule 24 supporting a return required to be electronically filed or 25 any amended return if the amended return meets any of the 26 circumstances requiring electronic filing in this subsection. 27 d. (1) Notwithstanding paragraphs “a” and “b” , the 28 department may provide an exception to the requirement to file 29 a return in an electronic format. 30 (2) A return subject to the electronic filing requirement 31 in this subsection that is filed in a manner other than in an 32 electronic format specified by the department shall not be 33 considered a valid return unless the department provides an 34 exception pursuant to this paragraph. 35 -5- LSB 5321SV (3) 89 jm/jh 5/ 50

S.F. 2371 e. The department shall adopt rules to implement this 1 subsection. 2 Sec. 7. Section 422.37, Code 2022, is amended by adding the 3 following new subsection: 4 NEW SUBSECTION . 8. a. (1) The affiliated group shall 5 file a return under this section for each taxable year in an 6 electronic format specified by the department, regardless of 7 the total gross receipts of or amount of credits reported by 8 the affiliated group. 9 (2) For purposes of the electronic filing requirement, a 10 return of an affiliated group includes any form or schedule 11 supporting the return or any amended return of the affiliated 12 group. 13 (3) The financial institution is a corporation subject 14 to the electronic filing requirement under section 422.36, 15 subsection 8, paragraph “b” . 16 b. (1) Notwithstanding paragraph “a” , the department may 17 provide an exception to file a return in an electronic format. 18 (2) A return subject to the electronic filing requirement 19 in paragraph “a” that is filed in a manner other than in an 20 electronic format specified by the department shall not be 21 considered a valid return unless the department provides an 22 exception pursuant to this paragraph. 23 c. The department shall adopt rules to implement this 24 subsection. 25 Sec. 8. Section 422.62, Code 2022, is amended to read as 26 follows: 27 422.62 Due and delinquent dates. 28 1. The franchise tax is due and payable on the first 29 day following the end of the taxable year of each financial 30 institution, and is delinquent after the last day of the fourth 31 month following the due date or forty-five days after the due 32 date of the federal tax return, excluding extensions of time 33 to file, whichever is the later. Every financial institution 34 shall file a return as prescribed by the director on or before 35 -6- LSB 5321SV (3) 89 jm/jh 6/ 50

S.F. 2371 the delinquency date. 1 2. a. (1) A financial institution shall file a return 2 required under this section in an electronic format specified 3 by the department for any tax year if any of the following 4 circumstances apply: 5 (a) The financial institution has two hundred fifty 6 thousand dollars or more in gross receipts, as defined by rule 7 by the department. 8 (b) The financial institution reports twenty-five thousand 9 dollars or more of Iowa tax credits on the return. 10 (c) The financial institution is a corporation subject 11 to the electronic filing requirement under section 422.36, 12 subsection 8, paragraph “b” . 13 (2) This paragraph “a” applies to any form or schedule 14 supporting a return required to be electronically filed or 15 any amended return if the amended return meets any of the 16 circumstances requiring electronic filing in this paragraph. 17 b. (1) Notwithstanding paragraph “a” , the department may 18 provide an exception to the requirement to file a return in an 19 electronic format. 20 (2) A return subject to the electronic filing requirement 21 in paragraph “a” that is filed in a manner other than in an 22 electronic format specified by the department shall not be 23 considered a valid return unless the department provides an 24 exception pursuant to this paragraph. 25 c. The department shall adopt rules to implement this 26 subsection. 27 Sec. 9. APPLICABILITY. 28 1. Except as provided in subsection 2, this division of this 29 Act applies to tax years ending on or after December 31, 2022, 30 or for tax years ending on or after December 31 of the calendar 31 year in which the department implements a system for receiving 32 the electronic returns required by this division of this Act, 33 whichever is later. 34 2. The section of this division of this Act amending section 35 -7- LSB 5321SV (3) 89 jm/jh 7/ 50

S.F. 2371 422.14, subsection 1, applies to tax years ending on or after 1 December 31, 2023, or for tax years ending on or after December 2 31 of the calendar year in which the department implements a 3 system for receiving the electronic fiduciary returns required 4 by this division of this Act, whichever is later. 5 3. The department of revenue shall notify the Code editor by 6 December 1 of the calendar year the department has implemented 7 a system for receiving the electronic returns or electronic 8 fiduciary returns required by this division of this Act. 9 DIVISION III 10 ELECTRONIC FILING —— CREDIT UNIONS 11 Sec. 10. Section 533.329, subsection 3, Code 2022, is 12 amended to read as follows: 13 3. a. Returns shall be in the form the director of 14 revenue prescribes, and shall be filed with the department of 15 revenue on or before the last day of the fourth month after 16 the expiration of the tax year. The moneys and credits tax is 17 due and payable on the last day of the fourth month after the 18 expiration of the tax year. 19 b. A credit union shall file a return required under this 20 section in an electronic format specified by the department for 21 each tax year. 22 c. (1) Notwithstanding paragraph “b” , the department may 23 provide an exception to file a return in an electronic format. 24 (2) A return subject to the electronic filing requirement 25 in paragraph “b” that is filed in a manner other than in an 26 electronic format specified by the department shall not be 27 considered a valid return unless the department provides an 28 exception pursuant to this paragraph. 29 d. The department shall adopt rules to implement this 30 subsection. 31 Sec. 11. APPLICABILITY. 32 1. This division of this Act applies to tax years ending 33 on or after December 31, 2024, or for tax years ending on or 34 after December 31 of the calendar year in which the department 35 -8- LSB 5321SV (3) 89 jm/jh 8/ 50

S.F. 2371 implements a system for receiving the electronic returns 1 required by this division of this Act, whichever is later. 2 2. The department of revenue shall notify the Code editor by 3 December 1 of the calendar year the department has implemented 4 a system for receiving electronic returns required by this 5 division of this Act. 6 DIVISION IV 7 AUTHORITY TO CHARGE FEES 8 Sec. 12. Section 421.17, Code 2022, is amended by adding the 9 following new subsection: 10 NEW SUBSECTION . 37. To establish a fee, by rule, and charge 11 a person for a copy of a return. The fee shall be retained by 12 the department of revenue. 13 Sec. 13. LEGISLATIVE INTENT. This division of this Act 14 shall not be construed to prohibit the department of revenue 15 from charging a fee for a copy of a return prior to the 16 enactment of this division of this Act pursuant to another 17 authority of the department. 18 It is the intent of the general assembly that this division 19 of this Act is a conforming amendment consistent with current 20 state law, and the amendment does not change the application of 21 the current law but instead reflects current law both before 22 and after enactment of this division of this Act. 23 DIVISION V 24 AUTHORITY TO ACT ON BEHALF OF TAXPAYER 25 Sec. 14. Section 421.59, subsection 2, unnumbered paragraph 26 1, Code 2022, is amended to read as follows: 27 Unless otherwise prohibited by law, the department may 28 authorize the following persons to act and receive information 29 on behalf of and exercise all of the rights of a taxpayer, 30 regardless of whether a power of attorney has been filed 31 pursuant to subsection 1 : 32 Sec. 15. Section 421.59, subsection 2, paragraph d, Code 33 2022, is amended by striking the paragraph and inserting in 34 lieu thereof the following: 35 -9- LSB 5321SV (3) 89 jm/jh 9/ 50

S.F. 2371 d. An individual holding the following title or position 1 within a corporation, association, partnership, or other 2 business entity: 3 (1) An officer or employee of the corporation or association 4 who is authorized to act on behalf of the corporation or 5 association in tax matters. 6 (2) A designated partner or employee of the partnership 7 who is authorized to act on behalf of the partnership in tax 8 matters. 9 (3) A person authorized to act on behalf of the limited 10 liability company in tax matters pursuant to a valid statement 11 of authority or employee of the company who is authorized to 12 act on behalf of the company in tax matters. 13 Sec. 16. Section 421.59, subsection 2, Code 2022, is amended 14 by adding the following new paragraphs: 15 NEW PARAGRAPH . i. A trustee. 16 (1) Upon request a trustee shall submit a certification of 17 trust, or in the absence of a certification of trust a copy of 18 the court order appointing the trustee if one has been issued, 19 or a copy of the trust. 20 (2) The department has standing to petition the court that 21 appointed the trustee to verify the appointment or to determine 22 the scope of the appointment. 23 NEW PARAGRAPH . j. A person named as an agent in a general 24 or durable power of attorney document that is currently 25 in force and such document has not been prescribed by the 26 department of revenue. 27 NEW PARAGRAPH . k. A successor as defined in section 28 633.356, subsection 2, of a very small estate. 29 Sec. 17. Section 421.59, Code 2022, is amended by adding the 30 following new subsections: 31 NEW SUBSECTION . 3A. An individual acting on behalf of 32 a taxpayer pursuant to subsection 2 must certify that the 33 individual possesses actual authority to act on behalf of the 34 taxpayer in tax matters. 35 -10- LSB 5321SV (3) 89 jm/jh 10/ 50

S.F. 2371 NEW SUBSECTION . 3B. In addition to documents required under 1 subsection 2, the department shall require any documents or 2 other evidence to demonstrate an individual has authority to 3 act on behalf of the taxpayer before the department. 4 DIVISION VI 5 ELECTRONIC COMMUNICATION 6 Sec. 18. Section 421.60, subsection 11, Code 2022, is 7 amended by striking the subsection and inserting in lieu 8 thereof the following: 9 11. Electronic communication. 10 a. As used in this subsection, “electronic communication” 11 means a notice, correspondence, or other communication provided 12 electronically. 13 b. The department of revenue, by rule, may permit a person 14 to elect to receive an electronic communication from the 15 department. 16 c. (1) Notwithstanding any provision of law to the 17 contrary, when an electronic communication is posted to the 18 department’s electronic portal for a person who has made such 19 an election, the posting of the electronic communication shall 20 satisfy any requirement of mailing or personal service in this 21 title, chapter 272D, or sections 321.105A and 533.329. 22 (2) The department may send any notice, correspondence, 23 or other communication by mail to a person who has elected to 24 receive an electronic communication from the department. 25 (3) If the department sends a notice, correspondence, 26 or other communication by both mail and by electronic 27 communication, service occurs upon the earlier of when the 28 communication is posted to the department’s electronic portal 29 or mailed. 30 d. The director of revenue may adopt rules and establish 31 procedures under this subsection. 32 DIVISION VII 33 INCOME STATEMENTS TO BE PROVIDED TO THE DEPARTMENT 34 Sec. 19. Section 422.16, subsection 2, paragraphs b and c, 35 -11- LSB 5321SV (3) 89 jm/jh 11/ 50

S.F. 2371 Code 2022, are amended to read as follows: 1 b. Every withholding agent on or before the end fifteenth 2 day of the second month following the close of the calendar 3 year in which the withholding occurs shall make an annual 4 reporting of taxes withheld and other information prescribed 5 by the director and send to the department copies of wage and 6 tax statements with the return income statements required 7 by subsection 7 . At the discretion of the director, the 8 withholding agent shall not be required to send wage statements 9 and tax income statements with the annual reporting return 10 form report if the information is available from the internal 11 revenue service or other state or federal agencies. 12 c. If the director has reason to believe that the collection 13 of the tax provided for in subsections 1 and 12 is in jeopardy, 14 the director may require the employer or withholding agent to 15 make the report file a return as required in subsection 2, 16 paragraph “a” , and pay the tax at any time, in accordance with 17 section 422.30 . The director may authorize incorporated banks, 18 trust companies, or other depositories authorized by law which 19 are depositories or financial agents of the United States or of 20 this state, to receive any tax imposed under this chapter , in 21 the manner, at the times, and under the conditions the director 22 prescribes. The director shall also prescribe the manner, 23 times, and conditions under which the receipt of the tax by 24 those depositories is to be treated as payment of the tax to 25 the department. 26 Sec. 20. Section 422.16, subsection 7, Code 2022, is amended 27 to read as follows: 28 7. a. Every withholding agent required to deduct and 29 withhold a tax under subsections 1 and 12 of this section 30 shall furnish to such employee, nonresident, or other person 31 in respect of the remuneration income paid by such employer 32 or withholding agent to such employee, nonresident, or other 33 person during the calendar year, on or before January 31 of 34 the succeeding year, or, in the case of employees, if the 35 -12- LSB 5321SV (3) 89 jm/jh 12/ 50

S.F. 2371 employee’s employment is terminated before the close of such 1 calendar year, within thirty days from the day on which the 2 last payment of wages or other taxable income is made, if 3 requested by such employee, but not later than January 31 of 4 the following year, a written an income statement showing the 5 following: 6 (1) The name and address of such employer or withholding 7 agent, and the taxpayer identification number of such employer 8 or withholding agent. 9 (2) The name of the employee, nonresident, or other person 10 and that person’s federal social security account taxpayer 11 identification number, together with the last known address of 12 such employee, nonresident, or other person to whom wages have 13 or other taxable income has been paid during such period. 14 (3) The gross amount of wages , or other taxable income , paid 15 to the employee, nonresident, or other person. 16 (4) The total amount deducted and withheld as tax under the 17 provisions of subsections 1 and 12 of this section . 18 (5) The total amount of federal income tax withheld. 19 b. The income statements required to be furnished by this 20 subsection in respect of any wages or other taxable Iowa income 21 or any additional information required to be displayed on the 22 income statement shall be in such form or forms as the director 23 may, by regulation rule , prescribe. 24 Sec. 21. Section 422.16, subsection 10, paragraphs a and b, 25 Code 2022, are amended to read as follows: 26 a. An In addition to any other penalty provided by law, 27 an employer or withholding agent required under this chapter 28 to furnish a statement required by this chapter who willfully 29 furnishes a false or fraudulent statement, or who willfully 30 fails to furnish the statement is, for each failure, subject 31 to a civil penalty of five hundred dollars, the penalty to be 32 in addition to any criminal penalty otherwise provided by the 33 Code. to furnish or file an income statement required by this 34 statement is subject to a civil penalty of five hundred dollars 35 -13- LSB 5321SV (3) 89 jm/jh 13/ 50

S.F. 2371 for each occurrence of the following: 1 (1) Willful failure to furnish an employee, nonresident, or 2 other person with an income statement. 3 (2) Willfully furnishing an employee, nonresident, or other 4 person with a false or fraudulent income statement. 5 (3) Willful failure to file an income statement with the 6 department. 7 (4) Willfully filing a false or fraudulent income statement 8 with the department. 9 b. In addition to the tax or additional tax, any A person , 10 or withholding agent shall pay a , or other person required by 11 this section to file a return is subject to the penalty as 12 provided in section 421.27 . Any penalty assessed under section 13 421.27 shall be in addition to the tax or additional tax due. 14 The taxpayer shall also pay interest on the tax or additional 15 tax at the rate in effect under section 421.7 , for each month 16 counting each fraction of a month as an entire month, computed 17 from the date the semimonthly, monthly, or quarterly deposit 18 form was required to be filed. The penalty and interest become 19 a part of the tax due from the withholding agent. 20 Sec. 22. Section 422.16, Code 2022, is amended by adding the 21 following new subsection: 22 NEW SUBSECTION . 15. The director may allow additional 23 time for filing documents required under this section with the 24 department in the case of illness, disability, absence, or if 25 good cause is shown. 26 DIVISION VIII 27 REMITTANCES OF TRANSFER TAX 28 Sec. 23. Section 428A.8, subsection 1, paragraphs a and c, 29 Code 2022, are amended to read as follows: 30 a. On or before the tenth day of each month the county 31 recorder shall determine and pay remit to the treasurer of 32 state department of revenue eighty-two and three-fourths 33 percent of the receipts from the real estate transfer tax 34 collected during the preceding month and the treasurer of state 35 -14- LSB 5321SV (3) 89 jm/jh 14/ 50

S.F. 2371 department of revenue shall deposit and transfer the receipts 1 as provided in subsection 2 . 2 c. Any tax or additional tax found to be due shall be 3 collected by the county recorder. If the county recorder 4 is unable to collect the tax, the director of revenue shall 5 collect the tax in the same manner as taxes are collected in 6 chapter 422, subchapter III . If collected by the director 7 of revenue, the director shall pay remit to the county its 8 proportionate share of the tax. Section 422.25, subsections 9 1, 2, 3, and 4 , and sections 422.26 , 422.28 through 422.30 , 10 and 422.73 , consistent with this chapter , apply with respect 11 to the collection of any tax or additional tax found to be due, 12 in the same manner and with the same effect as if the deed, 13 instrument, or writing were an income tax return within the 14 meaning of those statutes. 15 Sec. 24. Section 428A.8, subsection 2, unnumbered paragraph 16 1, Code 2022, is amended to read as follows: 17 The treasurer of state department of revenue shall deposit 18 or transfer the receipts paid remitted to the treasurer of 19 state department of revenue pursuant to subsection 1 to either 20 the general fund of the state, the housing trust fund created 21 in section 16.181 , or the shelter assistance fund created in 22 section 16.41 as follows: 23 Sec. 25. Section 428A.9, Code 2022, is amended to read as 24 follows: 25 428A.9 Refund of tax. 26 To receive a refund from the state the taxpayer shall 27 petition the state appeal board for a refund of the amount of 28 overpayment of the tax paid remitted to the treasurer of state 29 department of revenue . To receive a refund from the county 30 the taxpayer shall petition the board of supervisors for a 31 refund of the remaining portion of the overpayment paid to that 32 county. 33 DIVISION IX 34 BOARD OF REVIEW ELIGIBILITY 35 -15- LSB 5321SV (3) 89 jm/jh 15/ 50

S.F. 2371 Sec. 26. Section 441.32, Code 2022, is amended by adding the 1 following new subsection: 2 NEW SUBSECTION . 3. If a board member is removed under this 3 section, the board member shall not be eligible for appointment 4 to a board of review in this state for six years following the 5 date of the removal. 6 DIVISION X 7 EQUALIZATION ADJUSTMENTS —— APPEALS 8 Sec. 27. Section 441.48, Code 2022, is amended to read as 9 follows: 10 441.48 Notice of adjustment —— protest appeal —— final 11 action. 12 1. Before the department of revenue shall adjust the 13 valuation of any class of property any such percentage, the 14 department shall first serve ten days’ notice by mail, on the 15 county auditor of the county whose valuation is proposed to be 16 adjusted. 17 2. If the county or assessing jurisdiction intends 18 to protest appeal the proposed adjustment, the board of 19 supervisors or city council, city or county attorney, or 20 other official of the county or assessing jurisdiction, as 21 applicable, shall provide the department with written notice of 22 intent to protest prior to expiration of the ten days’ notice 23 appeal within ten days of the notice provided by the department 24 of revenue under subsection 1 . 25 3. After expiration of the ten days’ notice, the county 26 or assessing jurisdiction may appear by its city council or 27 board of supervisors, city or county attorney, or city or 28 county officials, and make written or oral protest against such 29 proposed adjustment. Upon receiving a timely notice of intent 30 to appeal under subsection 2, the department shall schedule a 31 hearing on the proposed adjustment with the county or assessing 32 jurisdiction. A county or assessing jurisdiction may submit 33 an oral presentation at the hearing supported by written 34 documentation or may submit a written presentation in lieu 35 -16- LSB 5321SV (3) 89 jm/jh 16/ 50

S.F. 2371 of making an oral presentation at a hearing. The county or 1 assessing jurisdiction shall submit all written documentation 2 to the department prior to the date of the hearing or, if the 3 county or assessing jurisdiction elects a written presentation, 4 not later than the date the written presentation is submitted. 5 4. The protest appeal shall consist simply of a statement 6 of the error, or errors , complained of with such facts and 7 documentation as may lead to their correction of such errors . 8 5. Appeals of the proposed adjustment under this section 9 are not subject to Code chapter 17A. After written protest is 10 received, or an oral protest is heard the hearing is held or 11 the written presentation is submitted , the final action may be 12 taken in reference to the proposed adjustment. 13 DIVISION XI 14 BUSINESS PROPERTY TAX CREDIT AND ASSESSMENT LIMITATIONS 15 Sec. 28. Section 2.48, subsection 3, paragraph f, 16 subparagraph (5), Code 2022, is amended by striking the 17 subparagraph. 18 Sec. 29. Section 331.512, subsection 5, Code 2022, is 19 amended by striking the subsection. 20 Sec. 30. Section 331.559, subsection 15, Code 2022, is 21 amended by striking the subsection. 22 Sec. 31. Section 357H.9, subsection 1, paragraph d, 23 subparagraph (2), Code 2022, is amended to read as follows: 24 (2) The difference between the actual value of the property 25 as determined by the assessor each year and the percentage 26 of adjustment certified for that year by the director of 27 revenue on or before November 1 assessed value of the property 28 following application of the assessment limitations pursuant to 29 section 441.21, subsection 9 , multiplied by the actual value of 30 the property as determined by the assessor, shall be subtracted 31 from the actual value of the property as determined pursuant to 32 section 403.19, subsection 1 . 33 Sec. 32. Section 357H.9, subsection 1, paragraph f, 34 subparagraph (1), Code 2022, is amended to read as follows: 35 -17- LSB 5321SV (3) 89 jm/jh 17/ 50

S.F. 2371 (1) “Base year taxable value” means the actual value of 1 the property as determined in section 403.19, subsection 1 , 2 multiplied by the percentage of adjustment certified for the 3 assessment year specified in section 403.19, subsection 1 , 4 by the director of revenue on or before November 1 following 5 application of the assessment limitations pursuant to section 6 441.21, subsection 9 . 7 Sec. 33. Section 403.20, Code 2022, is amended to read as 8 follows: 9 403.20 Percentage of adjustment considered in value 10 assessment. 11 In determining the assessed value of property within an 12 urban renewal area which is subject to a division of tax 13 revenues pursuant to section 403.19 , the difference between the 14 actual value of the property as determined by the assessor each 15 year and the percentage of adjustment certified for that year 16 by the director of revenue on or before November 1 pursuant 17 to section 441.21, subsection 9 , multiplied by the actual 18 value of the property as determined by the assessor following 19 application of the assessment limitations under section 441.21, 20 subsection 9 , shall be subtracted from the actual value of the 21 property as determined pursuant to section 403.19, subsection 22 1 . If the assessed value of the property as determined 23 pursuant to section 403.19, subsection 1 , is reduced to zero, 24 the additional valuation reduction shall be subtracted from the 25 actual value of the property as determined by the assessor. 26 Sec. 34. Section 426C.2, Code 2022, is amended to read as 27 follows: 28 426C.2 Business property tax credit fund —— appropriation. 29 1. A business property tax credit fund is created in the 30 state treasury under the authority of the department. For the 31 fiscal year beginning July 1, 2014, there is appropriated from 32 the general fund of the state to the department to be credited 33 to the fund, the sum of fifty million dollars to be used for 34 business property tax credits authorized in this chapter . For 35 -18- LSB 5321SV (3) 89 jm/jh 18/ 50