HSB 734 (LSB 6343YC (2) 90)

HOUSE FILE _____ 

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

A BILL FOR

An Act repealing the excise tax on the handling of grain.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 445.3, subsection 2, Code 2024, is amended to read as follows:
   2.  a.  The commencement of actions for ad valorem taxes authorized under this section shall not begin until the issuance of a tax sale certificate under the requirements of section 446.19. The commencement of actions for all other taxes authorized under this section shall not begin until ten days after the publication of tax sale under the requirements of section 446.9, subsection 2.
   b.  This subsection does not apply to the collection of ad valorem taxes under section 445.32, and grain handling taxes under section 428.35.
    Sec. 2.  REPEAL.  Section 428.35, Code 2024, is repealed.
    Sec. 3.  IMPLEMENTATION.  Section 25B.7 shall not apply to the property tax exemption enacted in this Act.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill repeals the grain handling excise tax of one-fourth mill per bushel upon all grain handled. For purposes of the tax, “handling or handled” means the receiving of grain at or in each elevator, warehouse, mill, processing plant, or other facility in this state in which it is received for storage, accumulation, sale, processing, or any other purpose. In addition, “grain” means wheat, corn, barley, oats, rye, flaxseed, field peas, soybeans, grain sorghums, spelts, and such other products as are usually stored in grain elevators other than seeds after being processed. The excise tax is entered on the tax list of the taxing district and revenue collected from the excise tax is distributed to the various taxing authorities (taxing units) within the taxing district in the same manner as general property taxes.
   The bill makes inapplicable Code section 25B.7. Code section 25B.7 provides that for a property tax credit or exemption enacted on or after January 1, 1997, if a state appropriation made to fund the credit or exemption is not sufficient to fully fund the credit or exemption, the political subdivision shall be required to extend to the taxpayer only that portion of the credit or exemption estimated by the department of revenue to be funded by the state appropriation.