Senate
File
200
-
Introduced
SENATE
FILE
200
BY
SINCLAIR
A
BILL
FOR
An
Act
relating
to
the
distribution
of
water
exempt
from
1
taxation
and
the
use
of
tax
exemption
certificates,
and
2
providing
civil
penalties.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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Section
1.
NEW
SECTION
.
421.72
Valid
exemption
certificate
1
——
penalty.
2
1.
As
used
in
this
section:
3
a.
“Exemption
certificate”
means
a
valid
certificate
whether
4
furnished
by
the
department
of
revenue
or
the
person
using
the
5
water
that
exempts
all
or
a
portion
of
the
person’s
use
of
6
water
from
the
tax
imposed
pursuant
to
chapter
423
or
423G.
7
b.
“Water
utility”
means
a
public
utility
as
defined
in
8
section
476.1,
subsection
2,
paragraph
“c”
.
9
2.
A
water
utility
shall
accept
and
retain
a
valid
exemption
10
certificate
and
shall
not
unnecessarily
require
a
person
who
11
presents
a
valid
exemption
certificate
to
obtain
a
sales
or
12
water
service
tax
refund
from
the
department
of
revenue
rather
13
than
receiving
the
exemption.
14
3.
a.
A
water
utility
that
does
not
accept
a
valid
15
exemption
certificate
shall
pay
a
civil
penalty
to
the
16
department
of
revenue
equal
to
the
amount
of
tax
refunded
to
17
the
person
who
possessed
a
valid
exemption
certificate
plus
18
interest
at
the
rate
in
effect
under
section
421.7.
19
b.
The
department
of
revenue
shall
deposit
any
penalties
and
20
interest
collected
pursuant
to
this
section
into
the
general
21
fund
of
the
state.
22
4.
The
department
of
revenue
shall
adopt
rules
to
administer
23
this
section.
24
EXPLANATION
25
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
26
the
explanation’s
substance
by
the
members
of
the
general
assembly.
27
This
bill
relates
to
the
distribution
of
water
exempt
from
28
taxation.
29
The
bill
requires
a
water
utility
to
accept
and
retain
a
30
valid
exemption
certificate
and
shall
not
unnecessarily
require
31
a
person
who
presents
a
valid
exemption
certificate
to
obtain
32
a
sales
or
water
service
tax
refund
from
the
department
of
33
revenue
rather
than
receiving
the
exemption.
34
A
water
utility
that
does
not
accept
a
valid
exemption
35
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200
certificate
shall
pay
a
civil
penalty
to
the
department
of
1
revenue
equal
to
the
amount
of
tax
refunded
to
the
person
who
2
possessed
a
valid
exemption
certificate
plus
interest.
3
The
bill
defines
“exemption
certificate”
and
“water
4
utility”.
5
The
department
of
revenue
is
required
to
adopt
rules
to
6
administer
the
bill.
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