Senate
File
146
-
Introduced
SENATE
FILE
146
BY
SINCLAIR
A
BILL
FOR
An
Act
establishing
a
fair
as
a
designated
exempt
entity
and
1
allowing
for
refunds
of
state
sales
tax
in
the
performance
2
of
certain
written
contracts
and
including
effective
date
3
and
retroactive
applicability
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
TLSB
1774XS
(2)
90
jm/jh
S.F.
146
Section
1.
Section
423.4,
subsection
1,
paragraph
a,
Code
1
2023,
is
amended
by
adding
the
following
new
subparagraph:
2
NEW
SUBPARAGRAPH
.
(10)
A
fair
as
defined
in
section
174.1.
3
Sec.
2.
REFUNDS.
Refunds
of
taxes,
interest,
or
penalties
4
which
arise
from
claims
resulting
from
the
enactment
of
section
5
423.4,
subsection
1,
paragraph
“a”,
subparagraph
(10),
in
this
6
Act,
occurring
between
January
1,
2021,
and
the
effective
date
7
of
this
Act
shall
be
limited
to
twenty-five
thousand
dollars
in
8
the
aggregate,
and
shall
not
be
allowed
unless
refund
claims
9
are
filed
by
October
1,
2023,
notwithstanding
any
other
law
to
10
the
contrary.
If
the
amount
of
the
claims
totals
more
than
11
twenty-five
thousand
dollars
in
the
aggregate,
the
department
12
of
revenue
shall
prorate
the
twenty-five
thousand
dollars
13
in
the
aggregate
among
all
the
claimants
in
relation
to
the
14
amounts
of
the
claimants’
valid
claims.
15
Sec.
3.
EFFECTIVE
DATE.
This
Act,
being
deemed
of
immediate
16
importance,
takes
effect
upon
enactment.
17
Sec.
4.
RETROACTIVE
APPLICABILITY.
This
Act
applies
18
retroactively
to
January
1,
2021.
19
EXPLANATION
20
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
21
the
explanation’s
substance
by
the
members
of
the
general
assembly.
22
Currently,
a
“designated
exempt
entity”
may
apply
to
the
23
department
of
revenue,
under
certain
circumstances,
for
the
24
refund
of
sales
or
use
tax
upon
the
sales
price
of
all
sales
25
of
building
materials,
supplies,
equipment,
or
from
services
26
furnished
to
a
contractor,
used
in
the
performance
of
a
written
27
contract
with
the
designated
exempt
entity.
28
This
bill
also
makes
a
county
or
district
fair
a
designated
29
exempt
entity.
This
provision
takes
effect
upon
enactment
and
30
applies
retroactively
to
January
1,
2021.
The
bill
allows
for
31
refunds
of
taxes,
interest,
or
penalties
arising
from
claims
32
resulting
from
the
enactment
of
the
bill.
The
bill
limits
the
33
refund
amount
to
$25,000
in
the
aggregate.
34
-1-
LSB
1774XS
(2)
90
jm/jh
1/
1