House File 198 - Introduced HOUSE FILE 198 BY BODEN A BILL FOR An Act relating to sales tax rebates for a raceway facility. 1 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 2 TLSB 1446YH (3) 90 jm/jh

H.F. 198 Section 1. Section 423.2A, subsection 2, paragraph g, Code 1 2023, is amended to read as follows: 2 g. Beginning the first day of the quarter following July 3 1, 2014, transfer to the raceway facility tax rebate fund 4 created in section 423.4, subsection 11 , paragraph “e” , that 5 portion of the sales tax receipts collected and remitted upon 6 sales of tangible personal property or services furnished by 7 retailers at a raceway facility meeting the qualifications of 8 section 423.4, subsection 11 , that remains after the transfers 9 required in paragraphs “a” through “f” of this subsection 10 2 . This paragraph is repealed June 30, 2025 2030 , or thirty 11 days following the date on which an amount of total rebates 12 specified in section 423.4, subsection 11 , paragraph “c” , 13 subparagraph (3), subparagraph division (b), has been provided 14 or thirty days following the date on which rebates cease as 15 provided in section 423.4, subsection 11 , paragraph “c” , 16 subparagraph (4), whichever is earliest. 17 Sec. 2. Section 423.4, subsection 11, paragraph c, 18 subparagraph (3), unnumbered paragraph 1, Code 2023, is amended 19 to read as follows: 20 The transactions described in paragraph “b” for which sales 21 or use tax was collected and the rebate is sought occurred on 22 or after January 1, 2015, but before January 1, 2025 2030 . 23 However, the total amount of rebates provided pursuant to 24 this subsection shall not exceed the lesser of the following 25 amounts: 26 Sec. 3. Section 423.4, subsection 11, paragraph c, 27 subparagraph (3), subparagraph division (a), Code 2023, is 28 amended to read as follows: 29 (a) The amount of project costs incurred and paid by the 30 owner or operator on or after May 16, 2018. For purposes of 31 this subsection , “project costs” means costs incurred and paid 32 by the owner or operator in connection with the construction 33 and installation of new property or of modifications to 34 existing property if such property upon completion of one or 35 -1- LSB 1446YH (3) 90 jm/jh 1/ 3

H.F. 198 more projects becomes or remains part of the raceway facility 1 and constitutes the renovation, remodeling, reconstruction, 2 expansion, equipping, or improvement of real property that 3 comprises the raceway facility. “Project costs” does not 4 include any amount of cost that is not substantiated to the 5 department pursuant to subparagraphs (1) and (2) within ninety 6 days of the date it is paid by the owner or operator. 7 Sec. 4. Section 423.4, subsection 11, paragraph g, Code 8 2023, is amended to read as follows: 9 g. This subsection is repealed June 30, 2025 2030 , or 10 thirty days following the date on which one million eight 11 hundred thousand dollars in total rebates have been provided 12 and no overpayment of rebates exists, or thirty days following 13 the date on which rebates cease as provided in paragraph 14 “c” , subparagraph (4), and no overpayment of rebates exists, 15 whichever is earliest. 16 EXPLANATION 17 The inclusion of this explanation does not constitute agreement with 18 the explanation’s substance by the members of the general assembly. 19 This bill relates to sales tax rebates for a raceway 20 facility. 21 Under current law, the sales tax receipts collected and 22 remitted upon sales of tangible personal property or services 23 furnished by retailers at a raceway facility are rebated to 24 the raceway facility until the earliest occurrence of any of 25 the following: June 30, 2025; the rebate amount equals the 26 project costs incurred by the owner or the total rebate amount 27 equals $1.8 million, whichever is less; or the ownership of the 28 raceway facility changes. 29 The bill changes the date the rebate program must end from 30 June 30, 2025, to June 30, 2030, if any of the other conditions 31 requiring the end of the program have not been met. 32 The bill strikes the definition of “project costs” which 33 relates to the allowable sales tax rebate amount of the owner 34 or operator of a raceway to the lesser amount of the following: 35 -2- LSB 1446YH (3) 90 jm/jh 2/ 3

H.F. 198 the project costs incurred and paid by the owner or operator on 1 or after May 16, 2018, or $1.8 million. 2 -3- LSB 1446YH (3) 90 jm/jh 3/ 3