SF 146 (LSB 1774XS (2) 90)

SENATE FILE 146

BY  SINCLAIR

A BILL FOR

An Act establishing a fair as a designated exempt entity and allowing for refunds of state sales tax in the performance of certain written contracts and including effective date and retroactive applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 423.4, subsection 1, paragraph a, Code 2023, is amended by adding the following new subparagraph:
   NEW SUBPARAGRAPH.  (10)  A fair as defined in section 174.1.
    Sec. 2.  REFUNDS.  Refunds of taxes, interest, or penalties which arise from claims resulting from the enactment of section 423.4, subsection 1, paragraph “a”, subparagraph (10), in this Act, occurring between January 1, 2021, and the effective date of this Act shall be limited to twenty-five thousand dollars in the aggregate, and shall not be allowed unless refund claims are filed by October 1, 2023, notwithstanding any other law to the contrary. If the amount of the claims totals more than twenty-five thousand dollars in the aggregate, the department of revenue shall prorate the twenty-five thousand dollars in the aggregate among all the claimants in relation to the amounts of the claimants’ valid claims.
    Sec. 3.  EFFECTIVE DATE.  This Act, being deemed of immediate importance, takes effect upon enactment.
    Sec. 4.  RETROACTIVE APPLICABILITY.  This Act applies retroactively to January 1, 2021.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   Currently, a “designated exempt entity” may apply to the department of revenue, under certain circumstances, for the refund of sales or use tax upon the sales price of all sales of building materials, supplies, equipment, or from services furnished to a contractor, used in the performance of a written contract with the designated exempt entity.
   This bill also makes a county or district fair a designated exempt entity. This provision takes effect upon enactment and applies retroactively to January 1, 2021. The bill allows for refunds of taxes, interest, or penalties arising from claims resulting from the enactment of the bill. The bill limits the refund amount to $25,000 in the aggregate.