House
File
2641
-
Reprinted
HOUSE
FILE
2641
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
HSB
696)
(As
Amended
and
Passed
by
the
House
June
11,
2020
)
A
BILL
FOR
An
Act
relating
to
state
taxation
and
related
laws
of
the
1
state,
including
the
administration
by
the
department
of
2
revenue
of
certain
tax
credits
and
refunds,
income
taxes,
3
moneys
and
credits
taxes,
sales
and
use
taxes,
partnership
4
and
pass-through
entity
audits,
and
by
modifying
provisions
5
relating
to
the
reinstatement
of
business
entities,
the
6
assessment
and
valuation
of
property,
the
Iowa
reinvestment
7
Act,
port
authorities,
and
animals
and
food,
and
providing
8
penalties,
and
including
effective
date
and
retroactive
9
applicability
provisions.
10
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
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DIVISION
I
1
DEPARTMENT
OF
REVENUE
ADMINISTRATION
AND
PENALTY
PROVISIONS
2
Section
1.
Section
421.6,
Code
2020,
is
amended
to
read
as
3
follows:
4
421.6
Definition
of
return.
5
For
purposes
of
this
title
,
unless
the
context
otherwise
6
requires,
“return”
means
any
tax
or
information
return,
amended
7
return,
declaration
of
estimated
tax,
or
claim
for
refund
8
that
is
required
by,
provided
for,
or
permitted
under,
the
9
provisions
of
this
title
or
section
533.329,
and
which
is
filed
10
with
the
department
by,
on
behalf
of,
or
with
respect
to
any
11
person.
“Return”
includes
any
amendment
or
supplement
to
these
12
items,
including
supporting
schedules,
attachments,
or
lists
13
which
are
supplemental
to
or
part
of
the
filed
return.
14
Sec.
2.
Section
421.17,
Code
2020,
is
amended
by
adding
the
15
following
new
subsection:
16
NEW
SUBSECTION
.
36.
To
enter
into
an
agreement
pursuant
17
to
chapter
28E
with
the
state
fair
organized
under
chapter
173
18
or
with
a
fair
defined
in
section
174.1,
to
collect
and
remit
19
taxes
and
fees
from
sellers
making
sales
at
retail
on
property
20
owned,
controlled,
or
operated
by
a
fair
or
through
events
21
conducted
by
a
fair.
22
Sec.
3.
Section
421.27,
subsection
1,
Code
2020,
is
amended
23
to
read
as
follows:
24
1.
Failure
to
timely
file
a
return
or
deposit
form.
25
a.
If
a
person
fails
to
file
with
the
department
on
or
26
before
the
due
date
a
return
or
deposit
form
there
shall
be
27
added
to
the
tax
shown
due
or
required
to
be
shown
due
a
penalty
28
of
ten
percent
of
the
tax
shown
due
or
required
to
be
shown
due.
29
b.
In
the
case
of
a
specified
business
with
no
tax
shown
30
due
or
required
to
be
shown
due
that
fails
to
timely
file
an
31
income
return,
the
specified
business
shall
pay
the
greater
of
32
the
following
penalty
amounts:
33
(1)
Two
hundred
dollars.
34
(2)
An
amount
equal
to
ten
percent
of
the
imputed
Iowa
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liability
of
the
specified
business,
not
to
exceed
twenty-five
1
thousand
dollars.
2
c.
The
penalty,
if
assessed
pursuant
to
paragraph
“a”
or
3
“b”
,
shall
be
waived
by
the
department
upon
a
showing
of
any
of
4
the
following
conditions:
5
a.
(1)
At
An
amount
of
tax
greater
than
zero
is
required
to
6
be
shown
due
and
at
least
ninety
percent
of
the
tax
required
to
7
be
shown
due
has
been
paid
by
the
due
date
of
the
tax.
8
b.
(2)
Those
taxpayers
who
are
required
to
file
quarterly
9
returns,
or
monthly
or
semimonthly
deposit
forms
may
have
one
10
late
return
or
deposit
form
within
a
three-year
period.
The
11
use
of
any
other
penalty
exception
will
not
count
as
a
late
12
return
or
deposit
form
for
purposes
of
this
exception.
13
c.
(3)
The
death
of
a
taxpayer,
death
of
a
member
of
14
the
immediate
family
of
the
taxpayer,
or
death
of
the
person
15
directly
responsible
for
filing
the
return
and
paying
the
tax,
16
when
the
death
interferes
with
timely
filing.
17
d.
(4)
The
onset
of
serious,
long-term
illness
or
18
hospitalization
of
the
taxpayer,
of
a
member
of
the
immediate
19
family
of
the
taxpayer,
or
of
the
person
directly
responsible
20
for
filing
the
return
and
paying
the
tax.
21
e.
(5)
Destruction
of
records
by
fire,
flood,
or
other
act
22
of
God.
23
f.
(6)
The
taxpayer
presents
proof
that
the
taxpayer
24
relied
upon
applicable,
documented,
written
advice
specifically
25
made
to
the
taxpayer,
to
the
taxpayer’s
preparer,
or
to
an
26
association
representative
of
the
taxpayer
from
the
department,
27
state
department
of
transportation,
county
treasurer,
or
28
federal
internal
revenue
service,
whichever
is
appropriate,
29
that
has
not
been
superseded
by
a
court
decision,
ruling
by
a
30
quasi-judicial
body,
or
the
adoption,
amendment,
or
repeal
of
31
a
rule
or
law.
32
g.
(7)
Reliance
upon
results
in
a
previous
audit
was
a
33
direct
cause
for
the
failure
to
file
where
the
previous
audit
34
expressly
and
clearly
addressed
the
issue
and
the
previous
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audit
results
have
not
been
superseded
by
a
court
decision,
or
1
the
adoption,
amendment,
or
repeal
of
a
rule
or
law.
2
h.
(8)
Under
rules
prescribed
by
the
director,
the
taxpayer
3
presents
documented
proof
of
substantial
authority
to
rely
4
upon
a
particular
position
or
upon
proof
that
all
facts
and
5
circumstances
are
disclosed
on
a
return
or
deposit
form.
6
i.
(9)
The
return,
deposit
form,
or
payment
is
timely,
7
but
erroneously,
mailed
with
adequate
postage
to
the
internal
8
revenue
service,
another
state
agency,
or
a
local
government
9
agency
and
the
taxpayer
provides
proof
of
timely
mailing
with
10
adequate
postage.
11
j.
(10)
The
tax
has
been
paid
by
the
wrong
licensee
and
the
12
payments
were
timely
remitted
to
the
department
for
one
or
more
13
tax
periods
prior
to
notification
by
the
department.
14
k.
(11)
The
failure
to
file
was
discovered
through
a
15
sanctioned
self-audit
program
conducted
by
the
department.
16
l.
(12)
If
the
availability
of
funds
in
payment
of
tax
17
required
to
be
made
through
electronic
funds
transfer
is
18
delayed
and
the
delay
of
availability
is
due
to
reasons
beyond
19
the
control
of
the
taxpayer.
“Electronic
funds
transfer”
means
20
any
transfer
of
funds,
other
than
a
transaction
originated
21
by
check,
draft,
or
similar
paper
instrument,
that
is
22
initiated
through
an
electronic
terminal
telephone,
computer,
23
magnetic
tape,
or
similar
device
for
the
purpose
of
ordering,
24
instructing,
or
authorizing
a
financial
institution
to
debit
or
25
credit
an
account.
26
m.
(13)
The
failure
to
file
a
timely
inheritance
tax
return
27
resulting
solely
from
a
disclaimer
that
required
the
personal
28
representative
to
file
an
inheritance
tax
return.
The
penalty
29
shall
be
waived
if
such
return
is
filed
and
any
tax
due
is
paid
30
within
the
later
of
nine
months
from
the
date
of
death
or
sixty
31
days
from
the
delivery
or
filing
of
the
disclaimer
pursuant
to
32
section
633E.12
.
33
n.
(14)
That
an
Iowa
inheritance
tax
return
is
filed
for
34
an
estate
within
the
later
of
nine
months
from
the
date
of
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death
or
sixty
days
from
the
filing
of
a
disclaimer
by
the
1
beneficiary
of
the
estate
refusing
to
take
the
property
or
2
right
or
interest
in
the
property.
3
Sec.
4.
Section
421.27,
subsections
4
and
6,
Code
2020,
are
4
amended
to
read
as
follows:
5
4.
Willful
failure
to
file
or
deposit.
6
a.
(1)
In
case
of
willful
failure
to
file
a
return
7
or
deposit
form
with
the
intent
to
evade
tax
or
a
filing
8
requirement
,
or
in
case
of
willfully
filing
a
false
return
9
or
deposit
form
with
the
intent
to
evade
tax,
in
lieu
of
the
10
penalties
otherwise
provided
in
this
section
,
a
penalty
of
11
seventy-five
percent
shall
be
added
to
the
amount
shown
due
or
12
required
to
be
shown
as
tax
on
the
return
or
deposit
form.
13
(2)
In
case
of
a
willful
failure
by
a
specified
business
to
14
file
an
income
return
with
no
tax
shown
due
or
required
to
be
15
shown
due
with
intent
to
evade
a
filing
requirement,
or
in
case
16
of
willfully
filing
a
false
income
return
with
no
tax
shown
due
17
or
required
to
be
shown
due
with
the
intent
to
evade
reporting
18
of
Iowa-source
income,
the
penalty
imposed
shall
be
the
greater
19
of
the
following
amounts:
20
(a)
One
thousand
five
hundred
dollars.
21
(b)
An
amount
equal
to
seventy-five
percent
of
the
imputed
22
Iowa
liability
of
the
specified
business.
23
(3)
If
penalties
are
applicable
for
failure
to
file
a
24
return
or
deposit
form
and
failure
to
pay
the
tax
shown
due
or
25
required
to
be
shown
due
on
the
return
or
deposit
form,
the
26
penalty
provision
for
failure
to
file
shall
be
in
lieu
of
the
27
penalty
provisions
for
failure
to
pay
the
tax
shown
due
or
28
required
to
be
shown
due
on
the
return
or
deposit
form,
except
29
in
the
case
of
willful
failure
to
file
a
return
or
deposit
form
30
or
willfully
filing
a
false
return
or
deposit
form
with
intent
31
to
evade
tax.
32
b.
The
penalties
imposed
under
this
subsection
are
not
33
subject
to
waiver.
34
6.
Improper
receipt
of
payments
Liability
——
fraudulent
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practice
.
A
person
who
makes
an
erroneous
application
for
1
refund,
credit,
reimbursement,
rebate,
or
other
payment
shall
2
be
liable
for
any
overpayment
received
or
tax
liability
reduced
3
plus
interest
at
the
rate
in
effect
under
section
421.7
.
4
a.
In
addition,
a
person
who
willfully
commits
a
fraudulent
5
practice
and
is
liable
for
a
penalty
equal
to
seventy-five
6
percent
of
the
refund,
credit,
exemption,
reimbursement,
7
rebate,
or
other
payment
or
benefit
being
claimed
if
the
person
8
does
any
of
the
following:
9
(1)
Willfully
makes
a
false
or
frivolous
application
for
10
refund,
credit
,
exemption
,
reimbursement,
rebate,
or
other
11
payment
or
benefit
with
intent
to
evade
tax
or
with
intent
to
12
receive
a
refund,
credit,
exemption,
reimbursement,
rebate,
13
or
other
payment
or
benefit,
to
which
the
person
is
not
14
entitled
is
guilty
of
a
fraudulent
practice
and
is
liable
for
a
15
penalty
equal
to
seventy-five
percent
of
the
refund,
credit,
16
reimbursement,
rebate,
or
other
payment
being
claimed
.
17
(2)
Willfully
submits
any
false
information,
document,
18
or
document
containing
false
information
in
support
of
an
19
application
for
refund,
credit,
exemption,
reimbursement,
20
rebate,
or
other
payment
or
benefit
with
the
intent
to
evade
21
tax.
22
(3)
Willfully
submits
with
any
false
information,
document,
23
or
document
containing
false
information
in
support
of
an
24
application
for
refund
with
the
intent
to
receive
a
refund,
25
credit,
exemption,
reimbursement,
rebate,
or
other
payment
26
benefit,
to
which
the
person
is
not
entitled.
27
b.
Payments,
penalties,
and
interest
due
under
this
28
subsection
may
be
collected
and
enforced
in
the
same
manner
as
29
the
tax
imposed.
30
Sec.
5.
Section
421.27,
Code
2020,
is
amended
by
adding
the
31
following
new
subsections:
32
NEW
SUBSECTION
.
8.
Definitions.
As
used
in
this
section:
33
a.
“Imputed
Iowa
liability”
means
any
of
the
following:
34
(1)
In
the
case
of
corporations
other
than
corporations
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described
in
section
422.34
or
section
422.36,
subsection
5,
1
the
corporation’s
Iowa
net
income
after
the
application
of
the
2
Iowa
business
activity
ratio,
if
applicable,
multiplied
by
the
3
top
income
tax
rate
imposed
under
section
422.33
for
the
tax
4
year.
5
(2)
In
the
case
of
financial
institutions
as
defined
in
6
section
422.61,
the
financial
institution’s
Iowa
net
income
7
after
the
application
of
the
Iowa
business
activity
ratio,
if
8
applicable,
multiplied
by
the
franchise
tax
rate
imposed
under
9
section
422.63
for
the
tax
year.
10
(3)
In
this
case
of
all
other
entities,
including
11
corporations
described
in
section
422.36,
subsection
5,
and
all
12
other
entities
required
to
file
an
information
return
under
13
section
422.15,
subsection
2,
the
entity’s
Iowa
net
income
14
after
the
application
of
the
Iowa
business
activity
ratio,
if
15
applicable,
multiplied
by
the
top
income
tax
rate
imposed
under
16
section
422.5A
for
the
tax
year.
17
b.
“Income
return”
means
an
income
tax
return
or
information
18
return
required
under
section
422.15,
subsection
2,
or
section
19
422.36,
422.37,
or
422.62.
20
c.
“Specified
business”
means
a
partnership
or
other
entity
21
required
to
file
an
information
return
under
section
422.15,
22
subsection
2,
a
corporation
required
to
file
a
return
under
23
section
422.36
or
422.37,
or
a
financial
institution
required
24
to
file
a
return
under
section
422.62.
25
NEW
SUBSECTION
.
9.
Additional
penalty.
In
addition
to
the
26
penalties
imposed
by
this
section,
if
a
taxpayer
fails
to
file
27
a
return
within
ninety
days
of
written
notice
by
the
department
28
that
the
taxpayer
is
required
to
do
so,
there
shall
be
added
to
29
the
amount
shown
due
or
required
to
be
shown
due
a
penalty
in
30
the
amount
of
one
thousand
dollars.
31
Sec.
6.
NEW
SECTION
.
421.27A
Perjury.
32
1.
For
purposes
of
this
title,
a
form,
application,
or
any
33
other
documentation
required
or
requested
by
the
department
34
shall
be
required
to
be
certified
under
penalty
of
perjury
that
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2641
the
information
contained
in
the
form,
application,
or
other
1
documentation
is
true
and
correct.
2
2.
A
person
commits
a
class
“D”
felony
under
any
of
the
3
following
circumstances:
4
a.
The
person
makes
a
form,
application,
or
other
document
5
containing
false
information
in
support
of
an
application
for
6
refund,
credit,
exemption,
reimbursement,
rebate,
or
other
7
payment
or
benefit
with
intent
to
evade
tax.
8
b.
The
person
makes
a
form,
application,
or
other
document
9
containing
false
information
with
intent
to
unlawfully
receive
10
a
refund,
credit,
exemption,
reimbursement,
rebate,
or
other
11
payment
or
benefit,
to
which
the
person
is
not
entitled.
12
c.
The
person
knowingly
makes
any
false
affidavit.
13
d.
The
person
knowingly
swears
or
affirms
falsely
to
any
14
matter
or
thing
required
by
the
terms
of
this
title
to
be
sworn
15
to
or
affirmed.
16
Sec.
7.
NEW
SECTION
.
421.59
Power
of
attorney
——
authority
17
to
act
on
behalf
of
taxpayer.
18
1.
a.
A
taxpayer
may
authorize
an
individual
to
act
on
19
behalf
of
the
taxpayer
by
filing
a
power
of
attorney
with
the
20
department,
on
a
form
prescribed
by
the
department.
21
b.
A
taxpayer
may
at
any
time
revoke
a
power
of
attorney
22
filed
with
the
department
pursuant
to
subsection
1.
Upon
23
processing
of
the
taxpayer’s
revocation
of
a
power
of
attorney,
24
the
department
shall
cease
honoring
the
power
of
attorney.
25
2.
The
department
may
authorize
the
following
persons
to
act
26
and
receive
information
on
behalf
of
and
exercise
all
of
the
27
rights
of
a
taxpayer,
regardless
of
whether
a
power
of
attorney
28
has
been
filed
pursuant
to
subsection
1:
29
a.
A
guardian,
conservator,
or
custodian
appointed
by
a
30
court,
if
a
taxpayer
has
been
deemed
legally
incompetent
by
a
31
court.
The
authority
of
the
appointee
to
act
on
behalf
of
the
32
taxpayer
shall
be
limited
to
the
extent
specifically
stated
in
33
the
order
of
appointment.
34
(1)
Upon
request,
a
guardian,
conservator,
or
custodian
of
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a
taxpayer
shall
submit
to
the
department
a
copy
of
the
court
1
order
appointing
the
guardian,
conservator,
or
custodian.
2
(2)
The
department
may
petition
the
court
that
appointed
the
3
guardian,
conservator,
or
custodian
to
verify
the
appointment
4
or
to
determine
the
scope
of
the
appointment.
5
b.
A
receiver
appointed
pursuant
to
chapter
680.
An
6
appointed
receiver
shall
be
limited
to
act
on
behalf
of
the
7
taxpayer
by
the
authority
stated
in
the
order
of
appointment.
8
(1)
Upon
the
request
of
the
department,
a
receiver
shall
9
submit
to
the
department
a
copy
of
the
court
order
appointing
10
the
receiver.
11
(2)
The
department
may
petition
the
court
that
appointed
the
12
receiver
to
verify
the
appointment
or
to
determine
the
scope
13
of
the
appointment.
14
c.
An
individual
who
has
been
named
as
an
authorized
15
representative
on
a
fiduciary
return
of
income
filed
under
16
section
422.14
or
a
tax
return
filed
under
chapter
450.
17
d.
(1)
An
individual
holding
the
following
title
or
18
position
within
a
corporation,
association,
partnership,
or
19
other
business
entity:
20
(a)
A
president
or
chief
executive
officer,
or
any
other
21
officer
of
the
corporation
or
association
if
the
president
or
22
chief
executive
officer
certifies
that
the
officer
has
the
23
authority
to
legally
bind
the
corporation
or
association.
24
(b)
A
designated
partner
duly
authorized
to
act
on
behalf
25
of
the
partnership.
26
(c)
A
person
authorized
to
act
on
behalf
of
a
limited
27
liability
company
in
tax
matters
pursuant
to
a
valid
statement
28
of
authority.
29
(2)
An
individual
seeking
to
act
on
behalf
of
a
taxpayer
30
pursuant
to
this
paragraph
shall
file
an
affidavit
with
the
31
department
attesting
to
the
identity
and
qualifications
of
the
32
individual
and
any
necessary
certifications
required
under
this
33
paragraph.
The
department
may
require
any
documents
or
other
34
evidence
to
demonstrate
the
individual
has
authority
to
act
on
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behalf
of
the
taxpayer
before
the
department.
1
e.
A
licensed
attorney
who
has
appeared
on
behalf
of
the
2
taxpayer
or
the
taxpayer’s
estate
in
a
court
proceeding.
3
Authorization
under
this
paragraph
is
limited
to
those
matters
4
within
the
scope
of
the
representation.
5
f.
A
parent
or
guardian
of
a
taxpayer
who
has
not
reached
6
the
age
of
majority
where
the
parent
or
guardian
has
signed
the
7
taxpayer’s
return
on
behalf
of
the
taxpayer.
Authorization
8
under
this
paragraph
is
limited
to
those
matters
relating
to
9
the
return
signed
by
the
parent
or
guardian.
Authorization
10
under
this
paragraph
automatically
terminates
when
the
taxpayer
11
reaches
the
age
of
majority
pursuant
to
section
599.1.
12
3.
a.
In
lieu
of
executing
a
power
of
attorney
pursuant
13
to
subsection
1,
the
department
may
enter
into
a
memorandum
of
14
understanding
with
the
taxpayer
for
each
employee,
officer,
15
or
member
of
a
third-party
entity
engaged
with
or
otherwise
16
hired
by
a
taxpayer
to
manage
the
tax
matters
of
the
taxpayer,
17
to
permit
the
disclosure
of
confidential
tax
information
to
18
the
third-party
entity
and
the
authority
to
act
on
behalf
of
19
the
taxpayer.
The
memorandum
of
understanding
shall
adhere
to
20
requirements
as
established
by
the
director.
21
b.
The
memorandum
of
understanding
shall
be
signed
by
22
the
director,
the
taxpayer,
and
the
third-party
entity
or
an
23
authorized
representative
of
the
third-party
entity.
24
c.
At
any
time,
a
taxpayer
may
unilaterally
revoke
25
a
memorandum
of
understanding
entered
into
pursuant
to
26
this
subsection
by
filing
a
notice
of
revocation
with
the
27
department.
Upon
the
filing
of
such
a
revocation
by
the
28
taxpayer,
the
department
shall
cease
honoring
the
memorandum
29
of
understanding.
30
4.
The
department
shall
adopt
rules
pursuant
to
chapter
17A
31
to
administer
this
section.
32
Sec.
8.
Section
421.60,
subsection
2,
paragraph
a,
33
subparagraph
(2),
Code
2020,
is
amended
to
read
as
follows:
34
(2)
The
statement
prepared
in
accordance
with
this
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paragraph
shall
be
available
on
the
department’s
internet
site.
1
The
internet
site
for
this
information
shall
be
distributed
by
2
the
department
to
all
taxpayers
at
the
first
contact
by
the
3
department
with
respect
to
the
determination
or
collection
of
4
any
tax,
except
in
the
case
of
simply
providing
tax
forms.
5
Sec.
9.
Section
421.60,
Code
2020,
is
amended
by
adding
the
6
following
new
subsection:
7
NEW
SUBSECTION
.
11.
Electronic
communication.
8
Notwithstanding
any
provision
of
the
law
to
the
contrary,
for
9
purposes
of
this
title
and
sections
321.105A
and
533.329,
a
10
taxpayer
may
elect
to
receive
any
notices,
correspondence,
11
or
other
communication
electronically
that
the
department
is
12
required
to
send
by
regular
mail.
The
director
may
establish
13
procedures
and
limitations
for
obtaining
this
election
from
the
14
taxpayer.
15
Sec.
10.
Section
421.62,
subsection
1,
Code
2020,
is
amended
16
by
adding
the
following
new
paragraph:
17
NEW
PARAGRAPH
.
0b.
“Income
tax
return
or
claim
for
refund”
18
means
any
tax
return
or
claim
for
refund
under
chapter
422,
19
excluding
withholding
returns
under
section
422.16.
20
Sec.
11.
Section
421.62,
subsection
1,
paragraph
c,
21
subparagraph
(1),
Code
2020,
is
amended
to
read
as
follows:
22
(1)
“Tax
return
preparer”
means
any
individual
who,
for
23
a
fee
or
other
consideration,
prepares
ten
or
more
income
24
tax
returns
or
claims
for
refund
under
chapter
422
during
25
a
calendar
year,
or
who
assumes
final
responsibility
for
26
completed
work
on
such
income
tax
returns
or
claims
for
refund
27
under
chapter
422
on
which
preliminary
work
has
been
done
by
28
another
individual.
29
Sec.
12.
Section
421.62,
subsection
2,
paragraph
a,
Code
30
2020,
is
amended
to
read
as
follows:
31
a.
On
or
after
January
1,
2020,
a
tax
return
preparer
32
is
required
to
include
the
tax
return
preparer’s
PTIN
on
33
any
income
tax
return
or
claim
for
refund
prepared
by
the
34
tax
return
preparer
and
filed
under
chapter
422
with
the
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department
.
1
Sec.
13.
Section
421.64,
subsection
1,
Code
2020,
is
amended
2
to
read
as
follows:
3
1.
For
purposes
of
this
section
,
“tax
return
preparer”
means
4
the
same
as
defined
in
section
421.61
421.62
.
5
Sec.
14.
Section
422.20,
subsections
1
and
2,
Code
2020,
are
6
amended
to
read
as
follows:
7
1.
It
shall
be
unlawful
for
any
present
or
former
officer
8
or
employee
of
the
state
to
willfully
or
recklessly
divulge
or
9
to
make
known
in
any
manner
whatever
not
provided
by
law
to
10
any
person
the
amount
or
source
of
income,
profits,
losses,
11
expenditures,
or
any
particular
thereof,
set
forth
or
disclosed
12
in
any
income
return,
or
to
permit
any
income
return
or
copy
13
thereof
or
any
book
containing
any
abstract
or
particulars
14
thereof
to
be
seen
or
examined
by
any
person
except
as
provided
15
by
law;
and
it
shall
be
unlawful
for
any
person
to
willfully
or
16
recklessly
print
or
publish
in
any
manner
whatever
not
provided
17
by
law
any
income
return,
or
any
part
thereof
or
source
of
18
income,
profits,
losses,
or
expenditures
appearing
in
any
19
income
return;
and
any
person
committing
an
offense
against
the
20
foregoing
provision
shall
be
guilty
of
a
serious
misdemeanor.
21
If
the
offender
is
an
officer
or
employee
of
the
state,
such
22
person
shall
also
be
dismissed
from
office
or
discharged
from
23
employment.
Nothing
herein
shall
prohibit
turning
over
to
duly
24
authorized
officers
of
the
United
States
or
tax
officials
of
25
other
states
state
information
and
income
returns
pursuant
26
to
agreement
between
the
director
and
the
secretary
of
the
27
treasury
of
the
United
States
or
the
secretary’s
delegate
or
28
pursuant
to
a
reciprocal
agreement
with
another
state.
29
2.
It
is
unlawful
for
an
officer,
employee,
or
agent,
or
30
former
officer,
employee,
or
agent
of
the
state
to
willfully
31
or
recklessly
disclose
to
any
person,
except
as
authorized
32
in
subsection
1
of
this
section
,
any
federal
tax
return
33
or
return
information
as
defined
in
section
6103(b)
of
the
34
Internal
Revenue
Code.
It
is
unlawful
for
a
person
to
whom
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any
federal
tax
return
or
return
information,
as
defined
in
1
section
6103(b)
of
the
Internal
Revenue
Code,
is
disclosed
2
in
a
manner
unauthorized
by
subsection
1
of
this
section
3
to
thereafter
willfully
or
recklessly
print
or
publish
in
4
any
manner
not
provided
by
law
any
such
return
or
return
5
information.
A
person
violating
this
provision
is
guilty
of
6
a
serious
misdemeanor.
7
Sec.
15.
Section
422.20,
subsection
3,
paragraph
a,
Code
8
2020,
is
amended
to
read
as
follows:
9
a.
Unless
otherwise
expressly
permitted
by
section
8A.504
,
10
section
8G.4
,
section
11.41
,
section
96.11,
subsection
6
,
11
section
421.17,
subsections
22,
23,
and
26
,
section
421.17,
12
subsection
27
,
paragraph
“k”
,
section
421.17,
subsection
31
,
13
section
252B.9
,
section
321.40,
subsection
6
,
sections
321.120
,
14
421.19
,
421.28
,
421.59,
422.72
,
and
452A.63
,
this
section
,
or
15
another
provision
of
law,
a
tax
return,
return
information,
or
16
investigative
or
audit
information
shall
not
be
divulged
to
any
17
person
or
entity,
other
than
the
taxpayer,
the
department,
or
18
internal
revenue
service
for
use
in
a
matter
unrelated
to
tax
19
administration.
20
Sec.
16.
Section
422.20,
Code
2020,
is
amended
by
adding
the
21
following
new
subsections:
22
NEW
SUBSECTION
.
3A.
The
director
may
disclose
the
tax
23
return
of
a
partnership,
limited
liability
company,
or
S
24
corporation,
any
such
return
information,
or
any
investigative
25
information
related
to
the
return,
to
any
person
who
was
a
26
partner,
shareholder,
or
member
of
such
an
entity
during
any
27
part
of
the
period
covered
by
the
return.
28
NEW
SUBSECTION
.
3B.
a.
Prior
to
being
made
available
for
29
public
inspection,
the
department
shall
redact
from
the
record
30
in
an
appeal
or
contested
case
the
following
information
from
31
any
pleading,
exhibit,
attachment,
motion,
written
evidence,
32
final
order,
decision,
or
opinion:
33
(1)
A
financial
account
number.
34
(2)
An
account
number
generated
by
the
department
to
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identify
an
audit
or
examination.
1
(3)
A
social
security
number.
2
(4)
A
federal
employer
identification
number.
3
(5)
The
name
of
a
minor.
4
(6)
A
medical
record
or
other
medical
information.
5
b.
Upon
a
motion
filed
by
the
taxpayer,
the
department
6
may
redact
from
the
record
in
an
appeal
or
contested
case
any
7
other
information
from
a
pleading,
exhibit,
attachment,
motion,
8
or
written
evidence,
if
the
taxpayer
proves
by
clear
and
9
convincing
evidence
that
the
release
of
such
information
would
10
disclose
a
trade
secret
or
be
a
clear,
unwarranted
invasion
of
11
personal
privacy.
12
c.
Notwithstanding
paragraph
“a”
,
when
making
final
orders,
13
decisions,
or
opinions
available
for
public
inspection,
the
14
department
may
disclose
the
items
in
paragraph
“a”
if
the
15
department
determines
such
information
is
necessary
to
the
16
resolution
or
decision
of
the
appeal
or
case.
17
d.
Except
as
described
in
paragraphs
“a”
and
“b”
,
all
18
information
contained
in
a
pleading,
exhibit,
attachment,
19
motion,
written
evidence,
final
order,
decision,
opinion,
20
and
the
record
in
an
appeal
or
contested
case
is
subject
to
21
examination
to
the
extent
provided
by
chapter
22.
22
Sec.
17.
Section
422.25,
subsection
1,
Code
2020,
is
amended
23
by
adding
the
following
new
paragraph:
24
NEW
PARAGRAPH
.
c.
The
period
of
examination
and
25
determination
is
unlimited
under
this
title
in
the
case
of
26
any
action
by
the
department
to
recover
or
rescind
any
tax
27
expenditure
as
defined
by
section
2.48,
subsection
1,
or
any
28
other
incentive
or
assistance,
due
to
a
failure
to
meet
or
29
maintain
the
requirements
of
a
program
administered
by
the
30
economic
development
authority.
31
Sec.
18.
Section
422.69,
subsection
1,
Code
2020,
is
amended
32
to
read
as
follows:
33
1.
All
fees,
taxes,
interest,
and
penalties
imposed
under
34
this
chapter
shall
be
paid
to
the
department
in
the
form
of
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remittances
payable
to
the
state
treasurer
department
and
the
1
department
shall
transmit
each
payment
daily
to
the
state
2
treasurer.
3
Sec.
19.
Section
422.72,
subsection
1,
paragraph
a,
4
subparagraph
(1),
Code
2020,
is
amended
to
read
as
follows:
5
(1)
It
is
unlawful
for
the
director,
or
any
person
having
6
an
administrative
duty
under
this
chapter
,
or
any
present
or
7
former
officer
or
other
employee
of
the
state
authorized
by
the
8
director
to
examine
returns,
to
willfully
or
recklessly
divulge
9
in
any
manner
whatever,
the
business
affairs,
operations,
or
10
information
obtained
by
an
investigation
under
this
chapter
of
11
records
and
equipment
of
any
person
visited
or
examined
in
the
12
discharge
of
official
duty,
or
the
amount
or
source
of
income,
13
profits,
losses,
expenditures
or
any
particular
thereof,
set
14
forth
or
disclosed
in
any
return,
or
to
willfully
or
recklessly
15
permit
any
return
or
copy
of
a
return
or
any
book
containing
16
any
abstract
or
particulars
thereof
to
be
seen
or
examined
by
17
any
person
except
as
provided
by
law.
18
Sec.
20.
Section
422.72,
Code
2020,
is
amended
by
adding
the
19
following
new
subsection:
20
NEW
SUBSECTION
.
7A.
a.
Prior
to
being
made
available
for
21
public
inspection,
the
department
shall
redact
from
the
record
22
in
an
appeal
or
contested
case
the
following
information
from
23
any
pleading,
exhibit,
attachment,
motion,
written
evidence,
24
final
order,
decision,
or
opinion:
25
(1)
A
financial
account
number.
26
(2)
An
account
number
generated
by
the
department
to
27
identify
an
audit
or
examination.
28
(3)
A
social
security
number.
29
(4)
A
federal
employer
identification
number.
30
(5)
The
name
of
a
minor.
31
(6)
A
medical
record
or
other
medical
information.
32
b.
Upon
a
motion
filed
by
the
taxpayer,
the
department
33
may
redact
from
the
record
in
an
appeal
or
contested
case
any
34
other
information
from
a
pleading,
exhibit,
attachment,
motion,
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or
written
evidence,
if
the
taxpayer
proves
by
clear
and
1
convincing
evidence
that
the
release
of
such
information
would
2
disclose
a
trade
secret
or
be
a
clear,
unwarranted
invasion
of
3
personal
privacy.
4
c.
Notwithstanding
paragraph
“a”
,
when
making
final
orders,
5
decisions,
or
opinions
available
for
public
inspection,
the
6
department
may
disclose
the
items
in
paragraph
“a”
if
the
7
department
determines
such
information
is
necessary
to
the
8
resolution
or
decision
of
the
appeal
or
case.
9
d.
Except
as
described
in
paragraphs
“a”
and
“b”
,
all
10
information
contained
in
a
pleading,
exhibit,
attachment,
11
motion,
written
evidence,
final
order,
decision,
opinion,
12
and
the
record
in
an
appeal
or
contested
case
is
subject
to
13
examination
to
the
extent
provided
by
chapter
22.
14
Sec.
21.
Section
423.37,
Code
2020,
is
amended
by
adding
the
15
following
new
subsection:
16
NEW
SUBSECTION
.
4.
The
period
of
limitation
on
examination
17
and
determination
is
unlimited
under
this
title
in
the
case
18
of
any
action
by
the
department
to
recover
or
rescind
any
tax
19
expenditure
as
defined
by
section
2.48,
subsection
1,
or
any
20
other
incentive
or
assistance,
due
to
a
failure
to
meet
or
21
maintain
the
requirements
of
a
program
administered
by
the
22
economic
development
authority.
23
Sec.
22.
Section
428A.1,
subsection
3,
Code
2020,
is
amended
24
to
read
as
follows:
25
3.
The
declaration
of
value
shall
state
the
full
26
consideration
paid
for
the
real
property
transferred.
If
27
agricultural
land,
as
defined
in
section
9H.1
,
is
purchased
by
28
a
corporation,
limited
partnership,
trust,
alien
or
nonresident
29
alien,
the
declaration
of
value
shall
include
the
name
and
30
address
of
the
buyer,
the
name
and
address
of
the
seller,
a
31
legal
description
of
the
agricultural
land,
and
identify
the
32
buyer
as
a
corporation,
limited
partnership,
trust,
alien,
or
33
nonresident
alien.
The
county
recorder
shall
not
record
the
34
declaration
of
value,
but
shall
enter
on
the
declaration
of
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value
information
the
director
of
revenue
requires
for
the
1
production
of
the
sales/assessment
ratio
study
and
transmit
2
all
declarations
of
value
to
the
city
or
county
assessor
in
3
whose
jurisdiction
the
property
is
located.
The
city
or
county
4
assessor
shall
enter
on
the
declaration
of
value
provide
the
5
information
the
director
of
revenue
requires
for
the
production
6
of
the
sales/assessment
ratio
study
and
transmit
one
copy
of
7
each
declaration
of
value
to
the
director
of
revenue,
at
times
8
as
directed
by
the
director
of
revenue.
The
assessor
shall
9
retain
one
copy
of
each
declaration
of
value
for
three
years
10
from
December
31
of
the
year
in
which
the
transfer
of
realty
11
for
which
the
declaration
was
filed
took
place.
The
director
12
of
revenue
shall,
upon
receipt
of
the
information
required
to
13
be
filed
under
this
chapter
by
the
city
or
county
assessor,
14
send
to
the
office
of
the
secretary
of
state
that
part
of
the
15
declaration
of
value
which
identifies
a
corporation,
limited
16
partnership,
trust,
alien,
or
nonresident
alien
as
a
purchaser
17
of
agricultural
land
as
defined
in
section
9H.1
.
18
Sec.
23.
Section
441.48,
Code
2020,
is
amended
to
read
as
19
follows:
20
441.48
Notice
of
adjustment.
21
1.
Before
the
department
of
revenue
shall
adjust
the
22
valuation
of
any
class
of
property
any
such
percentage,
the
23
department
shall
first
serve
ten
days’
notice
by
mail,
on
the
24
county
auditor
of
the
county
whose
valuation
is
proposed
to
be
25
adjusted.
The
department
shall
hold
an
adjourned
meeting
after
26
such
27
2.
If
the
county
or
assessing
jurisdiction
intends
to
28
protest
the
proposed
adjustment,
the
board
of
supervisors
or
29
city
council,
as
applicable,
shall
provide
the
department
with
30
notice
of
intent
to
protest
prior
to
expiration
of
the
ten
31
days’
notice.
32
3.
After
expiration
of
the
ten
days’
notice,
at
which
time
33
the
county
or
assessing
jurisdiction
may
appear
by
its
city
34
council
or
board
of
supervisors,
city
or
county
attorney,
and
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other
assessing
jurisdiction,
or
city
or
county
officials,
and
1
make
written
or
oral
protest
against
such
proposed
adjustment.
2
4.
The
protest
shall
consist
simply
of
a
statement
of
the
3
error,
or
errors,
complained
of
with
such
facts
as
may
lead
to
4
their
correction.
At
the
adjourned
meeting
5
5.
After
written
protest
is
received,
or
an
oral
protest
6
is
heard,
the
final
action
may
be
taken
in
reference
to
the
7
proposed
adjustment.
8
Sec.
24.
Section
489.706,
subsection
2,
Code
2020,
is
9
amended
to
read
as
follows:
10
2.
The
secretary
of
state
shall
refer
the
federal
tax
11
identification
number
contained
in
the
application
for
12
reinstatement
to
the
departments
department
of
revenue
and
13
workforce
development.
The
departments
department
of
revenue
14
and
workforce
development
shall
report
to
the
secretary
of
15
state
the
tax
status
of
the
limited
liability
company.
If
16
either
the
department
reports
to
the
secretary
of
state
that
17
a
filing
delinquency
or
liability
exists
against
the
limited
18
liability
company,
the
secretary
of
state
shall
not
cancel
the
19
declaration
of
dissolution
until
the
filing
delinquency
or
20
liability
is
satisfied.
21
Sec.
25.
Section
490.1422,
subsection
2,
paragraph
a,
Code
22
2020,
is
amended
to
read
as
follows:
23
a.
The
secretary
of
state
shall
refer
the
federal
tax
24
identification
number
contained
in
the
application
for
25
reinstatement
to
the
departments
department
of
revenue
and
26
workforce
development.
The
departments
department
of
revenue
27
and
workforce
development
shall
report
to
the
secretary
28
of
state
the
tax
status
of
the
corporation.
If
either
the
29
department
reports
to
the
secretary
of
state
that
a
filing
30
delinquency
or
liability
exists
against
the
corporation,
31
the
secretary
of
state
shall
not
cancel
the
certificate
of
32
dissolution
until
the
filing
delinquency
or
liability
is
33
satisfied.
34
Sec.
26.
Section
501.813,
subsection
2,
paragraph
a,
Code
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2020,
is
amended
to
read
as
follows:
1
a.
The
secretary
of
state
shall
refer
the
federal
tax
2
identification
number
contained
in
the
application
for
3
reinstatement
to
the
departments
department
of
revenue
and
4
workforce
development.
The
departments
department
of
revenue
5
and
workforce
development
shall
report
to
the
secretary
6
of
state
the
tax
status
of
the
cooperative.
If
either
the
7
department
reports
to
the
secretary
of
state
that
a
filing
8
delinquency
or
liability
exists
against
the
cooperative,
9
the
secretary
of
state
shall
not
cancel
the
certificate
of
10
dissolution
until
the
filing
delinquency
or
liability
is
11
satisfied.
12
Sec.
27.
Section
504.1423,
subsection
2,
paragraph
a,
Code
13
2020,
is
amended
to
read
as
follows:
14
a.
The
secretary
of
state
shall
refer
the
federal
tax
15
identification
number
contained
in
the
application
for
16
reinstatement
to
the
departments
department
of
revenue
and
17
workforce
development.
The
departments
department
of
revenue
18
and
workforce
development
shall
report
to
the
secretary
19
of
state
the
tax
status
of
the
corporation.
If
either
the
20
department
reports
to
the
secretary
of
state
that
a
filing
21
delinquency
or
liability
exists
against
the
corporation,
22
the
secretary
of
state
shall
not
cancel
the
certificate
of
23
dissolution
until
the
filing
delinquency
or
liability
is
24
satisfied.
25
Sec.
28.
Section
533.329,
Code
2020,
is
amended
by
adding
26
the
following
new
subsection:
27
NEW
SUBSECTION
.
03.
Returns
shall
be
in
the
form
the
28
director
of
revenue
prescribes,
and
shall
be
filed
with
the
29
department
of
revenue
on
or
before
the
last
day
of
the
fourth
30
month
after
the
expiration
of
the
tax
year.
The
moneys
and
31
credits
tax
is
due
and
payable
on
the
last
day
of
the
fourth
32
month
after
the
expiration
of
the
tax
year.
33
Sec.
29.
Section
533.329,
subsection
3,
Code
2020,
is
34
amended
to
read
as
follows:
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3.
The
department
of
revenue
shall
administer
and
enforce
1
the
provisions
of
this
section
,
and
except
as
explicitly
2
provided
in
this
section
or
another
provision
of
law,
shall
3
apply
all
applicable
penalty,
interest,
and
administrative
4
provisions
of
chapters
421
and
422
as
nearly
as
possible
in
5
administering
and
enforcing
the
moneys
and
credits
tax
imposed
6
by
this
section
.
7
Sec.
30.
LEGISLATIVE
INTENT.
It
is
the
intent
of
the
8
general
assembly
that
the
sections
of
this
division
amending
9
Code
sections
422.25
and
423.37
are
conforming
amendments
10
consistent
with
current
state
law,
and
that
the
amendments
11
do
not
change
the
application
of
current
law
but
instead
12
reflect
current
law
both
before
and
after
the
enactment
of
this
13
division
of
this
Act.
14
Sec.
31.
EFFECTIVE
DATE.
The
following,
being
deemed
of
15
immediate
importance,
take
effect
upon
enactment:
16
1.
The
section
of
this
division
of
this
Act
amending
section
17
422.25.
18
2.
The
section
of
this
division
of
this
Act
amending
section
19
423.37.
20
Sec.
32.
APPLICABILITY.
The
following
applies
to
any
21
return
for
which
a
written
notice
that
the
taxpayer
is
required
22
to
file
such
return
is
issued
by
the
department
on
or
after
23
January
1,
2022:
24
The
portion
of
the
section
of
this
division
of
this
Act
25
enacting
section
421.27,
subsection
9.
26
Sec.
33.
APPLICABILITY.
The
following
apply
to
tax
years
27
beginning
on
or
after
January
1,
2022:
28
1.
The
section
of
this
division
of
this
Act
amending
section
29
421.27,
subsection
1.
30
2.
The
portion
of
the
section
of
this
division
of
this
Act
31
amending
section
421.27,
subsection
4.
32
3.
The
portion
of
the
section
of
this
division
of
this
Act
33
enacting
section
421.27,
subsection
8.
34
DIVISION
II
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SALES
AND
USE
TAX
1
Sec.
34.
Section
321G.4,
subsection
2,
Code
2020,
is
amended
2
to
read
as
follows:
3
2.
a.
The
owner
of
the
snowmobile
shall
file
an
application
4
for
registration
with
the
department
through
the
county
5
recorder
of
the
county
of
residence
in
the
manner
established
6
by
the
commission.
The
application
shall
be
completed
by
the
7
owner
and
shall
be
accompanied
by
a
fee
of
fifteen
dollars
and
8
a
writing
fee
as
provided
in
section
321G.27
.
A
snowmobile
9
shall
not
be
registered
by
the
county
recorder
until
the
10
county
recorder
is
presented
with
receipts,
bills
of
sale,
11
or
other
satisfactory
evidence
that
the
sales
or
use
tax
has
12
been
paid
for
the
purchase
of
the
snowmobile
or
that
the
13
owner
is
exempt
from
paying
the
tax.
A
snowmobile
that
has
14
an
expired
registration
certificate
from
another
state
may
be
15
registered
in
this
state
upon
proper
application,
payment
of
16
all
applicable
registration
and
writing
fees,
and
payment
of
a
17
penalty
of
five
dollars.
18
b.
If
the
owner
of
the
snowmobile
is
unable
to
present
19
satisfactory
evidence
that
the
sales
or
use
tax
has
been
paid,
20
the
county
recorder
shall
collect
the
tax.
On
or
before
the
21
tenth
day
of
each
month,
the
county
recorder
shall
remit
to
22
the
department
of
revenue
the
amount
of
the
taxes
collected
23
during
the
preceding
month,
together
with
an
itemized
statement
24
on
forms
furnished
by
the
department
of
revenue
showing
the
25
name
of
each
taxpayer,
the
make
and
purchase
price
of
each
26
snowmobile,
the
amount
of
tax
paid,
and
such
other
information
27
as
the
department
of
revenue
requires.
28
Sec.
35.
Section
321I.4,
subsection
2,
Code
2020,
is
amended
29
to
read
as
follows:
30
2.
a.
The
owner
of
the
all-terrain
vehicle
shall
file
an
31
application
for
registration
with
the
department
through
the
32
county
recorder
of
the
county
of
residence,
or
in
the
case
33
of
a
nonresident
owner,
in
the
county
of
primary
use,
in
the
34
manner
established
by
the
commission.
The
application
shall
35
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be
completed
by
the
owner
and
shall
be
accompanied
by
a
fee
1
of
fifteen
dollars
and
a
writing
fee
as
provided
in
section
2
321I.29
.
An
all-terrain
vehicle
shall
not
be
registered
by
the
3
county
recorder
until
the
county
recorder
is
presented
with
4
receipts,
bills
of
sale,
or
other
satisfactory
evidence
that
5
the
sales
or
use
tax
has
been
paid
for
the
purchase
of
the
6
all-terrain
vehicle
or
that
the
owner
is
exempt
from
paying
the
7
tax.
An
all-terrain
vehicle
that
has
an
expired
registration
8
certificate
from
another
state
may
be
registered
in
this
state
9
upon
proper
application,
payment
of
all
applicable
registration
10
and
writing
fees,
and
payment
of
a
penalty
of
five
dollars.
11
b.
If
the
owner
of
the
all-terrain
vehicle
is
unable
to
12
present
satisfactory
evidence
that
the
sales
or
use
tax
has
13
been
paid,
the
county
recorder
shall
collect
the
tax.
On
or
14
before
the
tenth
day
of
each
month,
the
county
recorder
shall
15
remit
to
the
department
of
revenue
the
amount
of
the
taxes
16
collected
during
the
preceding
month,
together
with
an
itemized
17
statement
on
forms
furnished
by
the
department
of
revenue
18
showing
the
name
of
each
taxpayer,
the
make
and
purchase
price
19
of
each
all-terrain
vehicle,
the
amount
of
tax
paid,
and
such
20
other
information
as
the
department
of
revenue
requires.
21
Sec.
36.
Section
423.2,
subsection
6,
paragraph
bs,
Code
22
2020,
is
amended
to
read
as
follows:
23
bs.
Services
arising
from
or
related
to
installing,
24
maintaining,
servicing,
repairing,
operating,
upgrading,
or
25
enhancing
either
specified
digital
products
or
software
sold
26
as
tangible
personal
property
.
27
Sec.
37.
Section
423.2,
subsection
8,
paragraph
d,
28
subparagraph
(1),
Code
2020,
is
amended
to
read
as
follows:
29
(1)
The
retail
sale
of
tangible
personal
property
or
30
specified
digital
product
and
a
service
,
where
the
tangible
31
personal
property
or
specified
digital
product
is
essential
32
to
the
use
of
the
service,
and
is
provided
exclusively
in
33
connection
with
the
service,
and
the
true
object
of
the
34
transaction
is
the
service.
35
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Sec.
38.
Section
423.3,
subsection
3A,
Code
2020,
is
amended
1
to
read
as
follows:
2
3A.
The
sales
price
from
the
sale
of
a
commercial
recreation
3
service
offering
the
opportunity
to
hunt
a
preserve
whitetail
4
as
defined
in
section
484C.1
if
the
sale
occurred
between
July
5
1,
2005,
and
December
31,
2015.
6
Sec.
39.
Section
423.3,
subsection
31,
unnumbered
paragraph
7
1,
Code
2020,
is
amended
to
read
as
follows:
8
The
sales
price
of
tangible
personal
property
or
specified
9
digital
products
sold
to
and
of
services
furnished
to
a
tribal
10
government
as
defined
in
216A.161,
or
the
sales
price
of
11
tangible
personal
property
or
specified
digital
products
sold
12
to
and
of
services
furnished
,
and
used
for
public
purposes
13
sold
to
a
tax-certifying
or
tax-levying
body
of
the
state
or
a
14
governmental
subdivision
of
the
state,
including
the
following:
15
regional
transit
systems,
as
defined
in
section
324A.1
,
;
16
the
state
board
of
regents
,
;
department
of
human
services
,
;
17
state
department
of
transportation
,
;
any
municipally
owned
18
solid
waste
facility
which
sells
all
or
part
of
its
processed
19
waste
as
fuel
to
a
municipally
owned
public
utility
,
;
and
all
20
divisions,
boards,
commissions,
agencies,
or
instrumentalities
21
of
state,
federal,
county,
or
municipal
government
,
or
tribal
22
government
which
have
no
earnings
going
to
the
benefit
of
an
23
equity
investor
or
stockholder,
except
any
of
the
following:
24
Sec.
40.
Section
423.3,
Code
2020,
is
amended
by
adding
the
25
following
new
subsection:
26
NEW
SUBSECTION
.
60A.
The
sales
price
from
sales
of
diapers
27
eligible
for
medical
assistance
as
defined
in
section
249A.2.
28
Sec.
41.
Section
423.3,
subsection
80,
paragraphs
b
and
c,
29
Code
2020,
are
amended
to
read
as
follows:
30
b.
Subject
to
the
limitations
in
paragraph
“c”
,
if
a
31
contractor,
subcontractor,
or
builder
is
to
use
building
32
materials,
supplies,
and
equipment
,
or
services
in
the
33
performance
of
a
written
construction
contract
with
a
34
designated
exempt
entity,
the
person
shall
purchase
such
35
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2641
items
of
tangible
personal
property
or
services
without
1
liability
for
the
tax
if
such
property
or
services
will
be
2
used
in
the
performance
of
the
written
construction
contract
3
and
a
purchasing
agent
authorization
letter
and
an
exemption
4
certificate,
issued
by
the
designated
exempt
entity,
are
5
presented
to
the
retailer.
6
c.
(1)
With
regard
to
a
written
construction
contract
7
with
a
designated
exempt
entity
described
in
paragraph
“a”
,
8
subparagraph
(1),
the
sales
price
of
building
materials,
9
supplies,
or
equipment
,
or
services
is
exempt
from
tax
by
this
10
subsection
only
to
the
extent
the
building
materials,
supplies,
11
or
equipment
,
or
services
are
completely
consumed
in
the
12
performance
of
the
construction
contract
with
the
designated
13
exempt
entity
,
and
only
if
the
property
that
is
the
subject
14
of
the
construction
project
becomes
public
property
or
the
15
property
of
the
designated
exempt
entity
.
16
(2)
With
regard
to
a
written
construction
contract
with
17
a
designated
exempt
entity
described
in
paragraph
“a”
,
18
subparagraph
(2),
the
sales
price
of
building
materials,
19
supplies,
or
equipment
,
or
services
is
exempt
from
tax
by
this
20
subsection
only
to
the
extent
the
building
materials,
supplies,
21
or
equipment
,
or
services
are
completely
consumed
in
the
22
performance
of
a
construction
contract
to
construct
a
project,
23
as
defined
in
section
15J.2,
subsection
10
,
which
project
has
24
been
approved
by
the
economic
development
authority
board
in
25
accordance
with
chapter
15J
.
26
Sec.
42.
Section
423.3,
Code
2020,
is
amended
by
adding
the
27
following
new
subsection:
28
NEW
SUBSECTION
.
107.
The
sales
price
from
the
sale
of
29
feminine
hygiene
products.
For
purposes
of
this
subsection,
30
“feminine
hygiene
products”
means
sanitary
napkins,
tampons,
or
31
other
similar
items
used
for
feminine
hygiene.
32
Sec.
43.
Section
423.4,
subsection
1,
Code
2020,
is
amended
33
to
read
as
follows:
34
1.
a.
For
purposes
of
this
subsection,
a
“designated
exempt
35
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entity”
means
any
of
the
following:
1
(1)
A
private
nonprofit
educational
institution
in
this
2
state
,
.
3
(2)
A
nonprofit
Iowa
affiliate
of
a
nonprofit
international
4
organization
whose
primary
activity
is
the
promotion
of
the
5
construction,
remodeling,
or
rehabilitation
of
one-family
or
6
two-family
dwellings
for
low-income
families
,
.
7
(3)
A
nonprofit
private
museum
in
this
state
,
.
8
(4)
A
tax-certifying
or
tax-levying
body
or
governmental
9
subdivision
of
the
state,
including
the
state
board
of
regents,
10
state
department
of
human
services,
state
department
of
11
transportation
,
a
.
12
(5)
A
municipally
owned
solid
waste
facility
which
sells
all
13
or
part
of
its
processed
waste
as
fuel
to
a
municipally
owned
14
public
utility
,
and
all
.
15
(6)
The
state
of
Iowa.
16
(7)
Any
political
subdivision
of
the
state.
17
(8)
All
divisions,
boards,
commissions,
agencies,
or
18
instrumentalities
of
state,
federal,
county,
or
municipal
19
government
which
do
not
have
earnings
going
to
the
benefit
of
20
an
equity
investor
or
stockholder
,
.
21
(9)
A
tribal
government
as
defined
in
section
216A.161,
22
and
any
instrumentalities
of
the
tribal
government
which
do
23
not
have
earnings
going
to
the
benefit
of
an
equity
investor
24
or
stockholder.
25
b.
A
designated
exempt
entity
may
make
application
apply
26
to
the
department
for
the
refund
of
the
sales
or
use
tax
upon
27
the
sales
price
of
all
sales
of
goods,
wares,
or
merchandise
28
building
materials,
supplies,
equipment
,
or
from
services
29
furnished
to
a
contractor,
used
in
the
fulfillment
performance
30
of
a
written
contract
with
the
state
of
Iowa,
any
political
31
subdivision
of
the
state,
or
a
division,
board,
commission,
32
agency,
or
instrumentality
of
the
state
or
a
political
33
subdivision,
a
private
nonprofit
educational
institution
in
34
this
state,
a
nonprofit
Iowa
affiliate
described
in
this
35
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subsection
,
or
a
nonprofit
private
museum
in
this
state
if
the
1
property
becomes
an
integral
part
of
the
project
under
contract
2
and
at
the
completion
of
the
project
becomes
public
property,
3
is
devoted
to
educational
uses,
becomes
part
of
a
low-income
4
one-family
or
two-family
dwelling
in
the
state,
or
becomes
a
5
nonprofit
private
museum;
except
goods,
wares,
or
merchandise,
6
designated
exempt
entity
if
all
of
the
following
apply:
7
(1)
The
building
materials,
supplies,
equipment,
or
8
services
are
completely
consumed
in
the
performance
of
a
9
construction
project
with
the
designated
entity.
10
(2)
The
property
that
is
subject
of
the
construction
project
11
becomes
public
property
or
the
property
of
an
exempt
entity.
12
(3)
The
building
materials,
supplies,
equipment,
or
13
services
furnished
which
are
not
used
in
the
performance
of
14
any
contract
in
connection
with
the
operation
of
any
municipal
15
utility
engaged
in
selling
gas,
electricity,
or
heat
to
16
the
general
public
or
in
connection
with
the
operation
of
a
17
municipal
pay
television
system;
and
except
goods,
wares,
and
18
merchandise
are
not
used
in
the
performance
of
a
contract
for
a
19
“project”
under
chapter
419
as
defined
in
that
chapter
other
20
than
goods,
wares,
or
merchandise
used
in
the
performance
of
21
a
contract
for
a
“project”
under
chapter
419
for
which
a
bond
22
issue
was
approved
by
a
municipality
prior
to
July
1,
1968,
or
23
for
which
the
goods,
wares,
or
merchandise
becomes
an
integral
24
part
of
the
project
under
contract
and
at
the
completion
of
the
25
project
becomes
public
property
or
is
devoted
to
educational
26
uses.
27
a.
c.
Such
A
contractor
shall
state
under
oath,
on
forms
28
provided
by
the
department,
the
amount
of
such
sales
of
goods,
29
wares,
or
merchandise,
or
services
furnished
and
used
in
the
30
performance
of
such
contract,
and
upon
which
sales
or
use
tax
31
has
been
paid,
and
shall
file
such
forms
with
the
governmental
32
unit,
private
nonprofit
educational
institution,
nonprofit
Iowa
33
affiliate,
or
nonprofit
private
museum
designated
exempt
entity
34
which
has
made
any
written
contract
for
performance
by
the
35
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contractor.
The
forms
shall
be
filed
by
the
contractor
with
1
the
governmental
unit,
educational
institution,
nonprofit
Iowa
2
affiliate,
or
nonprofit
private
museum
designated
exempt
entity
3
before
final
settlement
is
made.
4
b.
d.
Such
governmental
unit,
educational
institution,
5
nonprofit
Iowa
affiliate,
or
nonprofit
private
museum
A
6
designated
exempt
entity
shall,
not
more
than
one
year
after
7
the
final
settlement
has
been
made,
make
application
apply
8
to
the
department
for
any
refund
of
the
amount
of
the
sales
9
or
use
tax
which
shall
have
been
paid
upon
any
goods,
wares,
10
or
merchandise
building
materials,
supplies,
equipment
,
11
or
services
furnished,
the
application
to
be
made
in
the
12
manner
and
upon
forms
to
be
provided
by
the
department,
13
and
the
department
shall
forthwith
audit
the
claim
and,
if
14
approved,
issue
a
warrant
to
the
governmental
unit,
educational
15
institution,
nonprofit
Iowa
affiliate,
or
nonprofit
private
16
museum
designated
exempt
entity
in
the
amount
of
the
sales
or
17
use
tax
which
has
been
paid
to
the
state
of
Iowa
under
the
18
contract.
19
c.
e.
Refunds
authorized
under
this
subsection
shall
accrue
20
interest
in
accordance
with
section
421.60,
subsection
2
,
21
paragraph
“e”
.
22
d.
f.
Any
contractor
who
willfully
makes
a
false
report
of
23
tax
paid
under
the
provisions
of
this
subsection
is
guilty
of
24
a
simple
misdemeanor
and
in
addition
shall
be
liable
for
the
25
payment
of
the
tax
and
any
applicable
penalty
and
interest.
26
Sec.
44.
Section
423.4,
subsection
2,
paragraphs
a
and
b,
27
Code
2020,
are
amended
to
read
as
follows:
28
a.
A
contractor
awarded
a
contract
for
a
transportation
29
construction
project
is
considered
the
consumer
of
all
building
30
materials,
building
supplies,
and
equipment
,
and
services
and
31
shall
pay
sales
tax
to
the
supplier
or
remit
consumer
use
tax
32
directly
to
the
department.
33
b.
The
contractor
is
not
required
to
file
information
with
34
the
state
department
of
transportation
stating
the
amount
of
35
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goods,
wares,
or
merchandise,
or
services
rendered,
furnished,
1
or
performed
and
building
materials,
supplies,
equipment,
or
2
services
used
in
the
performance
of
the
contract
or
the
amount
3
of
sales
or
use
tax
paid.
4
Sec.
45.
Section
423.4,
subsection
6,
paragraph
a,
5
subparagraph
(1),
Code
2020,
is
amended
to
read
as
follows:
6
(1)
The
owner
of
a
collaborative
educational
facility
7
in
this
state
may
make
application
to
the
department
for
the
8
refund
of
the
sales
or
use
tax
upon
the
sales
price
of
all
sales
9
of
goods,
wares,
or
merchandise
building
materials,
supplies,
10
equipment
,
or
from
services
furnished
to
a
contractor,
used
11
in
the
fulfillment
of
a
written
construction
contract
with
12
the
owner
of
the
collaborative
educational
facility
for
the
13
original
construction,
or
additions
or
modifications
to,
a
14
building
or
structure
to
be
used
as
part
of
the
collaborative
15
educational
facility.
16
Sec.
46.
Section
423.4,
subsection
6,
paragraphs
b
and
c,
17
Code
2020,
are
amended
to
read
as
follows:
18
b.
Such
A
contractor
shall
state
under
oath,
on
forms
19
provided
by
the
department,
the
amount
of
such
sales
of
goods,
20
wares,
or
merchandise
building
materials,
supplies,
equipment
,
21
or
services
furnished
and
used
in
the
performance
of
such
22
contract,
and
upon
which
sales
or
use
tax
has
been
paid,
and
23
shall
file
such
forms
with
the
owner
of
the
collaborative
24
educational
facility
which
has
made
any
written
contract
for
25
performance
by
the
contractor.
26
c.
(1)
The
owner
of
the
collaborative
educational
facility
27
shall,
not
more
than
one
year
after
the
final
settlement
has
28
been
made,
make
application
to
the
department
for
any
refund
29
of
the
amount
of
the
sales
or
use
tax
which
shall
have
been
30
paid
upon
any
goods,
wares,
or
merchandise
building
materials,
31
supplies,
equipment
,
or
services
furnished,
the
application
32
to
be
made
in
the
manner
and
upon
forms
to
be
provided
by
33
the
department,
and
the
department
shall
forthwith
audit
the
34
claim
and,
if
approved,
issue
a
warrant
to
the
owner
of
the
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collaborative
educational
facility
in
the
amount
of
the
sales
1
or
use
tax
which
has
been
paid
to
the
state
of
Iowa
under
the
2
contract.
3
(2)
Refunds
authorized
under
this
subsection
shall
accrue
4
interest
in
accordance
with
section
421.60,
subsection
2
,
5
paragraph
“e”
.
6
Sec.
47.
Section
423.5,
subsection
1,
paragraph
b,
Code
7
2020,
is
amended
by
striking
the
paragraph.
8
Sec.
48.
Section
423.29,
subsection
1,
Code
2020,
is
amended
9
to
read
as
follows:
10
1.
Every
seller
who
is
a
retailer
and
who
is
making
taxable
11
sales
of
tangible
personal
property
or
specified
digital
12
products
in
Iowa
or
who
is
a
retailer
maintaining
a
place
13
of
business
in
this
state
making
taxable
sales
of
tangible
14
personal
property
or
specified
digital
products
shall,
at
15
the
time
of
making
the
sale,
collect
the
sales
tax.
Every
16
seller
who
is
a
retailer
that
is
not
otherwise
required
to
17
collect
sales
tax
under
the
provisions
of
this
chapter
and
who
18
is
selling
tangible
personal
property
or
specified
digital
19
products
for
use
in
Iowa
shall,
at
the
time
of
making
the
sale,
20
whether
within
or
without
the
state,
collect
the
use
tax.
21
Sellers
required
to
collect
sales
or
use
tax
shall
give
to
any
22
purchaser
a
receipt
for
the
tax
collected
in
the
manner
and
23
form
prescribed
by
the
director.
24
Sec.
49.
Section
423.33,
subsection
1,
Code
2020,
is
amended
25
to
read
as
follows:
26
1.
Liability
of
purchaser
for
sales
tax
and
retailer
.
27
a.
If
a
purchaser
fails
to
pay
sales
tax
to
the
retailer
28
required
to
collect
the
tax,
then
in
addition
to
all
of
the
29
rights,
obligations,
and
remedies
provided,
the
a
use
tax
30
is
payable
by
the
purchaser
directly
to
the
department,
and
31
sections
423.31
,
423.32
,
423.37
,
423.38
,
423.39
,
423.40
,
32
423.41
,
and
423.42
apply
to
the
purchaser.
33
b.
For
failure
to
pay
the
sales
or
use
tax
as
described
34
in
paragraph
“a”
,
the
retailer
and
purchaser
are
jointly
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liable,
unless
the
circumstances
described
in
section
29C.24,
1
subsection
3,
paragraph
“a”
,
subparagraph
(2),
section
421.60,
2
subsection
2
,
paragraph
“m”
,
section
423.34A
,
or
section
3
423.45,
subsection
4
,
paragraph
“b”
or
“e”
,
or
subsection
5
,
4
paragraph
“c”
or
“e”
,
are
applicable.
5
c.
If
the
retailer
fails
to
collect
sales
tax
at
the
time
6
of
the
transaction,
the
retailer
shall
thereafter
remit
the
7
applicable
sales
tax,
or
the
purchaser
thereafter
shall
remit
8
the
applicable
use
tax.
If
the
purchaser
remits
all
applicable
9
use
tax,
the
retailer
remains
liable
for
any
local
sales
and
10
services
tax
under
chapter
423B
that
the
retailer
failed
to
11
collect.
12
Sec.
50.
REFUNDS
RELATED
TO
PRESERVE
WHITETAIL
DEER
13
HUNTING.
Refunds
of
taxes,
interest,
or
penalties
that
arise
14
from
claims
resulting
from
the
amendment
of
section
423.3,
15
subsection
3A,
for
sales
occurring
between
July
1,
2005,
16
and
the
effective
date
of
the
amendment
to
section
423.3,
17
subsection
3A,
shall
not
be
allowed,
notwithstanding
any
other
18
law
to
the
contrary.
19
Sec.
51.
LEGISLATIVE
INTENT.
20
1.
It
is
the
intent
of
the
general
assembly
that
the
section
21
of
this
division
of
this
Act
amending
section
423.29
is
a
22
conforming
amendment
consistent
with
current
state
law,
and
23
that
the
amendment
does
not
change
the
application
of
current
24
law
but
instead
reflects
current
law
both
before
and
after
the
25
enactment
of
this
division
of
this
Act.
26
2.
It
is
the
intent
of
the
general
assembly
that
the
27
addition
of
“jointly”
in
the
section
of
this
division
of
28
this
Act
amending
section
423.33
is
a
conforming
amendment
29
consistent
with
current
state
law,
and
that
the
amendment
30
does
not
change
the
application
of
current
law
but
instead
31
reflects
current
law
both
before
and
after
the
enactment
of
32
this
division
of
this
Act.
33
Sec.
52.
EFFECTIVE
DATE.
The
following,
being
deemed
of
34
immediate
importance,
take
effect
upon
enactment:
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1.
The
section
of
this
division
of
this
Act
amending
section
1
423.3,
subsection
3A.
2
2.
The
section
of
this
division
of
this
Act
relating
3
to
refunds
for
commercial
recreation
services
offering
an
4
opportunity
to
hunt
preserve
whitetail
deer.
5
Sec.
53.
RETROACTIVE
APPLICABILITY.
The
following
applies
6
retroactively
to
July
1,
2005:
7
The
section
of
this
division
of
this
Act
amending
section
8
423.3,
subsection
3A.
9
DIVISION
III
10
INCOME
TAX
11
Sec.
54.
Section
422.9,
subsection
3,
paragraph
c,
Code
12
2020,
is
amended
by
striking
the
paragraph
and
inserting
in
13
lieu
thereof
the
following:
14
c.
A
taxpayer
may
elect
to
waive
the
entire
carryback
period
15
with
respect
to
an
Iowa
net
operating
loss
for
any
taxable
year
16
beginning
on
or
after
January
1,
2020.
The
election
shall
be
17
made
in
the
manner
and
form
prescribed
by
the
department,
and
18
shall
be
made
by
the
due
date
for
filing
the
taxpayer’s
Iowa
19
return,
including
extensions
of
time.
After
the
election
is
20
made
for
any
taxable
year,
the
election
shall
be
irrevocable
21
for
such
taxable
year.
When
an
election
has
been
properly
22
made,
the
Iowa
net
operating
loss
shall
be
carried
forward
23
twenty
taxable
years.
24
Sec.
55.
Section
422.9,
subsection
3,
paragraph
d,
Code
25
2020,
is
amended
to
read
as
follows:
26
d.
Notwithstanding
paragraph
“a”
,
for
a
taxpayer
who
is
27
engaged
in
the
trade
or
business
of
farming
,
which
means
the
28
same
as
a
“farming
business”
as
defined
in
section
263A(e)(4)
of
29
the
Internal
Revenue
Code
,
and
has
a
farming
loss
from
farming
30
as
defined
in
section
172(b)(1)(B)
of
the
Internal
Revenue
Code
31
including
modifications
prescribed
by
rule
by
the
director,
32
the
Iowa
farming
loss
from
the
trade
or
business
of
farming
is
33
a
net
operating
loss
which
may
,
at
the
time
of
the
election
of
34
the
taxpayer,
be
carried
back
five
taxable
years
prior
to
the
35
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taxable
year
of
the
loss.
The
election
shall
be
made
in
the
1
manner
and
form
prescribed
by
the
department,
and
shall
be
made
2
by
the
due
date
for
filing
the
taxpayer’s
return,
including
3
extensions
of
time.
After
the
election
is
made
for
any
taxable
4
year,
the
election
shall
be
irrevocable
for
such
taxable
year.
5
Sec.
56.
APPLICABILITY.
This
division
of
this
Act
applies
6
to
tax
years
beginning
on
or
after
January
1,
2020.
7
DIVISION
IV
8
SCHOOL
TUITION
TAX
CREDIT
——
FUNDING
9
Sec.
57.
Section
422.11S,
subsection
8,
paragraph
a,
10
subparagraph
(2),
Code
2020,
is
amended
to
read
as
follows:
11
(2)
(a)
“Total
approved
tax
credits”
means
for
the
2006
12
calendar
year,
two
million
five
hundred
thousand
dollars,
for
13
the
2007
calendar
year,
five
million
dollars,
for
calendar
14
years
beginning
on
or
after
January
1,
2008,
but
before
January
15
1,
2012,
seven
million
five
hundred
thousand
dollars,
for
16
calendar
years
beginning
on
or
after
January
1,
2012,
but
17
before
January
1,
2014,
eight
million
seven
hundred
fifty
18
thousand
dollars,
for
calendar
years
beginning
on
or
after
19
January
1,
2014,
but
before
January
1,
2019,
twelve
million
20
dollars,
and
for
calendar
years
beginning
on
or
after
January
21
1,
2019,
but
before
January
1,
2020,
thirteen
million
dollars,
22
and
for
calendar
years
beginning
on
or
after
January
1,
2020,
23
fifteen
million
dollars.
24
(b)
(i)
During
any
calendar
year
beginning
on
or
after
25
January
1,
2022,
if
the
amount
of
awarded
tax
credits
from
the
26
preceding
calendar
year
are
equal
to
or
greater
than
ninety
27
percent
of
the
total
approved
tax
credits
for
the
current
28
calendar
year,
the
total
approved
tax
credits
for
the
current
29
calendar
year
shall
equal
the
product
of
ten
percent
multiplied
30
by
the
total
approved
tax
credits
for
the
current
calendar
year
31
plus
the
total
approved
tax
credits
for
the
current
calendar
32
year.
33
(ii)
If
total
approved
tax
credits
are
recomputed
pursuant
34
to
subparagraph
subdivision
(i),
the
total
approved
tax
credits
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shall
equal
the
previous
total
approved
tax
credits
recomputed
1
pursuant
to
subparagraph
subdivision
(i)
for
purposes
of
future
2
recomputations
under
subparagraph
subdivision
(i),
provided
3
that
the
maximum
total
approved
tax
credits
recomputed
pursuant
4
to
this
subparagraph
division
(b)
shall
not
exceed
twenty
5
million
dollars
in
a
calendar
year.
6
DIVISION
V
7
RESEARCH
ACTIVITIES
CREDIT
8
Sec.
58.
Section
15.335,
subsection
4,
paragraph
a,
Code
9
2020,
is
amended
to
read
as
follows:
10
a.
In
lieu
of
the
credit
amount
computed
in
subsection
2
,
an
11
eligible
business
may
elect
to
compute
the
credit
amount
for
12
qualified
research
expenses
incurred
in
this
state
in
a
manner
13
consistent
with
the
alternative
simplified
credit
described
in
14
section
41(c)(5)
41(c)(4)
of
the
Internal
Revenue
Code.
The
15
taxpayer
may
make
this
election
regardless
of
the
method
used
16
for
the
taxpayer’s
federal
income
tax.
The
election
made
under
17
this
paragraph
is
for
the
tax
year
and
the
taxpayer
may
use
18
another
or
the
same
method
for
any
subsequent
year.
19
Sec.
59.
Section
15.335,
subsection
4,
paragraph
b,
20
unnumbered
paragraph
1,
Code
2020,
is
amended
to
read
as
21
follows:
22
For
purposes
of
the
alternate
credit
computation
method
in
23
paragraph
“a”
,
the
credit
percentages
applicable
to
qualified
24
research
expenses
described
in
section
41(c)(5)(A)
41(c)(4)(A)
25
and
clause
(ii)
of
section
41(c)(5)(B)
41(c)(4)(B)
of
the
26
Internal
Revenue
Code
are
as
follows:
27
Sec.
60.
Section
422.10,
subsection
1,
paragraphs
c
and
d,
28
Code
2020,
are
amended
to
read
as
follows:
29
c.
In
lieu
of
the
credit
amount
computed
in
paragraph
“b”
,
30
subparagraph
(1),
subparagraph
division
(a),
a
taxpayer
may
31
elect
to
compute
the
credit
amount
for
qualified
research
32
expenses
incurred
in
this
state
in
a
manner
consistent
with
the
33
alternative
simplified
credit
described
in
section
41(c)(5)
34
41(c)(4)
of
the
Internal
Revenue
Code.
The
taxpayer
may
make
35
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2641
this
election
regardless
of
the
method
used
for
the
taxpayer’s
1
federal
income
tax.
The
election
made
under
this
paragraph
is
2
for
the
tax
year
and
the
taxpayer
may
use
another
or
the
same
3
method
for
any
subsequent
year.
4
d.
For
purposes
of
the
alternate
credit
computation
5
method
in
paragraph
“c”
,
the
credit
percentages
applicable
to
6
qualified
research
expenses
described
in
section
41(c)(5)(A)
7
41(c)(4)(A)
and
clause
(ii)
of
section
41(c)(5)(B)
41(c)(4)(B)
8
of
the
Internal
Revenue
Code
are
four
and
fifty-five
9
hundredths
percent
and
one
and
ninety-five
hundredths
percent,
10
respectively.
11
Sec.
61.
Section
422.33,
subsection
5,
paragraphs
c
and
d,
12
Code
2020,
are
amended
to
read
as
follows:
13
c.
In
lieu
of
the
credit
amount
computed
in
paragraph
14
“a”
,
subparagraph
(1),
a
corporation
may
elect
to
compute
the
15
credit
amount
for
qualified
research
expenses
incurred
in
this
16
state
in
a
manner
consistent
with
the
alternative
simplified
17
credit
described
in
section
41(c)(5)
41(c)(4)
of
the
Internal
18
Revenue
Code.
The
taxpayer
may
make
this
election
regardless
19
of
the
method
used
for
the
taxpayer’s
federal
income
tax.
The
20
election
made
under
this
paragraph
is
for
the
tax
year
and
the
21
taxpayer
may
use
another
or
the
same
method
for
any
subsequent
22
year.
23
d.
For
purposes
of
the
alternate
credit
computation
24
method
in
paragraph
“c”
,
the
credit
percentages
applicable
to
25
qualified
research
expenses
described
in
section
41(c)(5)(A)
26
41(c)(4)(A)
and
clause
(ii)
of
section
41(c)(5)(B)
41(c)(4)(B)
27
of
the
Internal
Revenue
Code
are
four
and
fifty-five
28
hundredths
percent
and
one
and
ninety-five
hundredths
percent,
29
respectively.
30
Sec.
62.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
31
deemed
of
immediate
importance,
takes
effect
upon
enactment.
32
Sec.
63.
RETROACTIVE
APPLICABILITY.
This
division
of
this
33
Act
applies
retroactively
to
January
1,
2019,
for
tax
years
34
beginning
on
or
after
that
date.
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DIVISION
VI
1
PARTNERSHIP
AND
PASS-THROUGH
ENTITY
AUDITS
AND
REPORTING
OF
2
FEDERAL
ADJUSTMENTS
3
Sec.
64.
Section
421.27,
subsection
2,
paragraph
c,
Code
4
2020,
is
amended
to
read
as
follows:
5
c.
(1)
The
Except
in
the
case
of
a
final
federal
6
partnership
adjustment
governed
by
subparagraph
(2),
the
7
taxpayer
provides
written
notification
to
the
department
of
a
8
federal
audit
while
it
is
in
progress
and
voluntarily
files
an
9
amended
return
which
includes
a
copy
of
the
federal
document
10
showing
the
final
disposition
or
final
federal
adjustments
11
and
pays
any
additional
Iowa
tax
due
within
sixty
one
hundred
12
eighty
days
of
the
final
disposition
determination
date
of
the
13
federal
government’s
audit.
For
purposes
of
this
subparagraph,
14
“final
determination
date”
means
the
same
as
defined
in
section
15
422.25.
16
(2)
(a)
In
the
case
of
a
final
federal
partnership
17
adjustment
arising
from
a
partnership
level
audit,
with
respect
18
to
the
audited
partnership
or
a
direct
partner
or
indirect
19
partner
of
the
audited
partnership,
the
audited
partnership,
20
direct
partner,
or
indirect
partner
voluntarily
and
timely
21
complies
with
its
reporting
and
payment
requirements
under
22
section
422.25A,
subsection
4
or
5.
23
(b)
As
used
in
this
subparagraph,
all
words
and
phrases
24
defined
in
section
422.25A
shall
have
the
same
meaning
given
25
them
by
that
section.
26
Sec.
65.
Section
422.7,
Code
2020,
is
amended
by
adding
the
27
following
new
subsection:
28
NEW
SUBSECTION
.
59.
Any
income
subtracted
from
federal
29
taxable
income
for
an
adjustment
year
pursuant
to
section
6225
30
of
the
Internal
Revenue
Code
and
the
regulations
thereunder
31
shall
be
added
back
in
computing
net
income
for
state
tax
32
purposes
for
the
adjustment
year.
33
Sec.
66.
Section
422.25,
subsections
1
and
2,
Code
2020,
34
are
amended
by
striking
the
subsections
and
inserting
in
lieu
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thereof
the
following:
1
1.
a.
For
purposes
of
this
subsection:
2
(1)
“Federal
adjustment”
means
a
change
to
an
item
or
amount
3
required
to
be
determined
under
the
Internal
Revenue
Code
and
4
the
regulations
thereunder
that
is
used
by
the
taxpayer
to
5
compute
state
tax
owed
whether
such
change
results
from
action
6
by
the
internal
revenue
service,
or
the
filing
of
a
timely
7
amended
federal
return
or
timely
federal
refund
claim.
A
8
federal
adjustment
is
positive
to
the
extent
that
it
increases
9
Iowa
taxable
income
as
determined
under
this
title
and
is
10
negative
to
the
extent
that
it
decreases
Iowa
taxable
income
11
as
determined
under
this
title.
12
(2)
“Federal
adjustments
report”
means
the
method
or
form
13
required
by
the
department
by
rule
to
report
final
federal
14
adjustments
or
final
federal
partnership
adjustments
as
defined
15
in
section
422.25A,
and
in
the
case
of
any
entity
taxed
as
a
16
partnership
or
S
corporation
for
federal
income
tax
purposes,
17
identifies
all
owners
that
hold
an
interest
directly
in
such
18
entity
and
provides
the
effect
of
the
final
federal
adjustments
19
on
such
owner’s
Iowa
income.
20
(3)
“Final
determination
date”
means
the
following:
21
(a)
Except
as
provided
in
subparagraph
divisions
(b)
and
22
(c),
for
federal
adjustments
arising
from
an
internal
revenue
23
service
audit
or
other
action
by
the
internal
revenue
service,
24
the
final
determination
date
is
the
first
day
on
which
no
25
federal
adjustments
arising
from
that
audit
or
other
action
26
remain
to
be
finally
determined,
whether
by
internal
revenue
27
service
decision
with
respect
to
which
all
rights
of
appeal
28
have
been
waived
or
exhausted,
by
agreement,
or,
if
appealed
29
or
contested,
by
a
final
decision
with
respect
to
which
all
30
rights
of
appeal
have
been
waived
or
exhausted.
For
agreements
31
required
to
be
signed
by
the
internal
revenue
service
and
the
32
taxpayer,
the
final
determination
date
is
the
date
on
which
the
33
last
party
signed
the
agreement.
34
(b)
For
federal
adjustments
arising
from
an
internal
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revenue
service
audit
or
other
action
by
the
internal
revenue
1
service,
if
the
taxpayer
filed
as
a
member
of
a
consolidated
2
return
under
section
422.37,
the
final
determination
date
3
is
the
first
day
on
which
no
related
federal
adjustments
4
arising
from
that
audit
or
other
action
remain
to
be
finally
5
determined,
as
described
in
subparagraph
division
(a),
for
the
6
entire
group.
7
(c)
For
federal
adjustments
arising
from
a
timely
filed
8
amended
federal
return
or
a
timely
filed
federal
refund
9
claim,
or
if
it
is
a
federal
adjustment
reported
on
a
timely
10
amended
federal
return
or
other
similar
report
filed
pursuant
11
to
section
6225(c)
of
the
Internal
Revenue
Code,
the
final
12
determination
date
is
the
day
on
which
the
amended
return,
13
refund
claim,
or
other
similar
report
was
filed.
14
(4)
“Final
federal
adjustment”
means
a
federal
adjustment
15
after
the
final
determination
date
for
that
federal
adjustment
16
has
passed.
17
b.
Within
three
years
after
the
return
is
filed
or
within
18
three
years
after
the
return
became
due,
including
any
19
extensions
of
time
for
filing,
whichever
time
is
the
later,
20
the
department
shall
examine
the
return
and
determine
the
tax.
21
However,
if
the
taxpayer
omits
from
income
an
amount
which
22
will,
under
the
Internal
Revenue
Code,
extend
the
statute
of
23
limitations
for
assessment
of
federal
tax
to
six
years
under
24
the
federal
law,
the
period
for
examination
and
determination
25
is
six
years.
26
c.
The
period
for
examination
and
determination
of
the
27
correct
amount
of
tax
is
unlimited
in
the
case
of
a
false
or
28
fraudulent
return
made
with
the
intent
to
evade
tax
or
in
the
29
case
of
a
failure
to
file
a
return.
30
d.
In
lieu
of
the
period
of
limitation
for
any
prior
year
31
for
which
an
overpayment
of
tax
or
an
elimination
or
reduction
32
of
an
underpayment
of
tax
due
for
that
prior
year
results
from
33
the
carryback
to
that
prior
year
of
a
net
operating
loss
or
34
net
capital
loss,
the
period
is
the
period
of
limitation
for
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the
taxable
year
of
the
net
operating
loss
or
net
capital
loss
1
which
results
in
the
carryback.
2
e.
(1)
In
addition
to
the
applicable
period
of
limitation
3
for
examination
and
determination
in
paragraph
“b”
,
“c”
,
or
“d”
,
4
the
department
may
make
an
examination
and
determination
at
any
5
time
within
one
year
from
the
date
of
receipt
by
the
department
6
of
a
federal
adjustments
report
with
respect
to
a
final
7
federal
adjustment
or
final
federal
partnership
adjustment
8
as
defined
in
section
422.25A
for
a
particular
tax
year.
In
9
order
to
begin
the
running
of
the
one-year
period,
the
federal
10
adjustments
report
related
to
the
final
federal
adjustment
or
11
final
federal
partnership
adjustment
shall
be
transmitted
to
12
the
department
by
the
taxpayer
in
the
form
and
manner
specified
13
by
the
department
by
rule.
14
(2)
The
department
in
its
discretion
may
adopt
rules
to
15
establish
a
de
minimis
amount
for
which
subparagraph
(1)
shall
16
not
apply
and
the
taxpayer
shall
not
be
required
to
file
a
17
federal
adjustments
report.
18
(3)
The
department
may
in
its
discretion
and
when
19
administratively
feasible
adopt
a
process
through
rule
by
20
which
a
taxpayer
may
make
estimated
payments
of
tax
expected
21
to
result
from
a
pending
internal
revenue
service
audit
22
prior
to
the
filing
of
a
federal
adjustments
report
with
the
23
department.
The
process
shall
provide
that
the
estimated
24
tax
payments
shall
be
credited
against
any
tax
liability
25
ultimately
found
to
be
due
to
the
state
from
the
internal
26
revenue
service
audit
and
will
limit
the
accrual
of
further
27
statutory
interest
on
that
liability.
The
process
shall
also
28
provide
that
if
the
estimated
tax
payments
exceed
the
final
29
tax
liability
and
statutory
interest
ultimately
determined
to
30
be
due,
the
taxpayer
is
entitled
to
a
refund
or
credit
for
31
the
excess,
without
interest,
provided
the
taxpayer
files
a
32
federal
adjustments
report,
or
a
claim
for
refund
or
credit
of
33
tax
under
section
422.73,
no
later
than
one
year
following
the
34
final
determination
date.
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2.
a.
If
the
tax
found
due
under
subsection
1
is
greater
1
than
the
amount
paid,
the
department
shall
compute
the
amount
2
due,
together
with
interest
and
penalties
as
provided
in
3
paragraph
“b”
,
and
shall
mail
a
notice
of
assessment
to
the
4
taxpayer
and,
if
applicable,
to
the
taxpayer’s
authorized
5
representative
of
the
total,
which
shall
be
computed
as
a
sum
6
certain,
with
interest
computed
to
the
last
day
of
the
month
7
in
which
the
notice
is
dated.
8
b.
In
addition
to
the
tax
or
additional
tax
determined
9
by
the
department
under
subsection
1,
the
taxpayer
shall
pay
10
interest
on
the
tax
or
additional
tax
at
the
rate
in
effect
11
under
section
421.7
for
each
month
counting
each
fraction
of
12
a
month
as
an
entire
month,
computed
from
the
date
the
return
13
was
required
to
be
filed.
In
addition
to
the
tax
or
additional
14
tax,
the
taxpayer
shall
pay
a
penalty
as
provided
in
section
15
421.27.
16
Sec.
67.
NEW
SECTION
.
422.25A
Reporting
and
treatment
of
17
certain
partnership
adjustments.
18
1.
Definitions.
As
used
in
this
section
and
sections
19
422.25B
and
422.25C,
unless
the
context
otherwise
requires:
20
a.
“Administrative
adjustment
request”
means
the
same
as
21
provided
in
section
6227
of
the
Internal
Revenue
Code.
22
b.
“Audited
partnership”
means
a
partnership
subject
23
to
a
final
federal
partnership
adjustment
resulting
from
a
24
partnership
level
audit.
25
c.
“C
corporation”
means
an
entity
that
elects
or
is
26
required
to
be
taxed
as
a
corporation
under
title
26,
chapter
27
1,
subchapter
A,
part
2,
of
the
Internal
Revenue
Code.
28
d.
“Corporate
partner”
means
a
C
corporation
partner
that
is
29
subject
to
tax
pursuant
to
section
422.33.
30
e.
“Direct
partner”
means
a
person
that
holds
an
interest
31
directly
in
a
partnership
or
pass-through
entity.
32
f.
“Exempt
partner”
means
a
partner
that
is
exempt
from
33
taxation
pursuant
to
section
422.34.
34
g.
“Federal
adjustments
report”
means
the
same
as
defined
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in
section
422.25.
1
h.
“Federal
partnership
adjustment”
means
a
change
to
an
2
item
or
amount
required
to
be
determined
under
the
Internal
3
Revenue
Code
and
the
regulations
thereunder
that
is
used
by
a
4
partnership
and
its
direct
and
indirect
partners
to
compute
5
state
tax
owed
for
the
reviewed
year
where
such
change
results
6
from
a
partnership
level
audit
or
an
administrative
adjustment
7
request.
A
federal
partnership
adjustment
is
positive
to
the
8
extent
that
it
increases
Iowa
taxable
income
as
determined
9
under
this
title
and
is
negative
to
the
extent
that
it
10
decreases
Iowa
taxable
income
as
determined
under
this
title.
11
A
federal
adjustment
reported
on
an
amended
federal
return
12
or
other
similar
report
filed
pursuant
to
section
6225(c)
of
13
the
Internal
Revenue
Code
shall
not
be
considered
a
federal
14
partnership
adjustment
for
purposes
of
this
section.
15
i.
“Federal
partnership
representative”
means
the
person
16
the
partnership
designates
for
the
taxable
year
as
the
17
partnership’s
representative,
or
the
person
the
internal
18
revenue
service
has
appointed
to
act
as
the
federal
partnership
19
representative,
pursuant
to
section
6223(a)
of
the
Internal
20
Revenue
Code
and
the
regulations
thereunder.
21
j.
“Fiduciary
partner”
means
a
partner
that
is
a
fiduciary
22
that
is
subject
to
tax
pursuant
to
sections
422.5
and
422.6.
23
k.
“Final
determination
date”
means
any
one
of
the
following
24
dates:
25
(1)
In
the
case
of
a
federal
partnership
adjustment
that
26
arises
from
a
partnership
level
audit,
the
first
day
on
which
27
no
federal
adjustments
arising
from
that
audit
remain
to
be
28
finally
determined,
whether
by
agreement,
or,
if
appealed
29
or
contested,
by
a
final
decision
with
respect
to
which
all
30
rights
of
appeal
have
been
waived
or
exhausted.
For
agreements
31
required
to
be
signed
by
the
internal
revenue
service
and
the
32
audited
partnership,
the
final
determination
date
is
the
date
33
on
which
the
last
party
signed
the
agreement.
34
(2)
In
the
case
of
a
federal
partnership
adjustment
that
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results
from
a
timely
filed
administrative
adjustment
request,
1
the
day
on
which
the
administrative
adjustment
request
was
2
filed
with
the
internal
revenue
service.
3
l.
“Final
federal
partnership
adjustment”
means
a
federal
4
partnership
adjustment
after
the
final
determination
date
for
5
that
federal
partnership
adjustment
has
passed.
6
m.
“Indirect
partner”
means
a
partner
in
a
partnership
or
7
pass-through
entity
where
such
partnership
or
pass-through
8
entity
itself
holds
an
interest
directly,
or
through
another
9
indirect
partner,
in
a
partnership
or
pass-through
entity.
10
n.
“Individual
partner”
means
a
partner
who
is
a
natural
11
person
that
is
subject
to
tax
pursuant
to
section
422.5.
12
o.
“Nonresident
partner”
means
a
partner
that
is
not
a
13
resident
partner
as
defined
in
this
subsection.
14
p.
“Partner”
means
a
person
that
holds
an
interest,
directly
15
or
indirectly,
in
a
partnership
or
pass-through
entity.
16
q.
“Partnership”
means
an
entity
subject
to
taxation
17
under
subchapter
K
of
the
Internal
Revenue
Code
and
the
18
regulations
thereunder
and
includes
but
is
not
limited
to
a
19
syndicate,
group,
pool,
joint
venture,
or
other
unincorporated
20
organization
through
or
by
means
of
which
any
business,
21
financial
operation,
or
venture
is
carried
on
and
which
is
22
not,
within
the
meaning
of
this
chapter,
a
trust,
estate,
or
23
corporation.
24
r.
“Partnership
level
audit”
means
an
examination
by
the
25
internal
revenue
service
at
the
partnership
level
pursuant
to
26
subchapter
C,
title
26,
subtitle
F,
chapter
63,
of
the
Internal
27
Revenue
Code,
as
enacted
by
the
Bipartisan
Budget
Act
of
2015,
28
Pub.
L.
No.
114-74,
and
as
amended,
which
results
in
final
29
federal
partnership
adjustments
initiated
and
made
by
the
30
internal
revenue
service.
31
s.
“Pass-through
entity”
means
an
entity,
other
than
32
a
partnership,
that
is
not
subject
to
tax
under
section
33
422.33
for
C
corporations
but
excluding
an
exempt
partner.
34
“Pass-through
entity”
includes
but
is
not
limited
to
S
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corporations,
estates,
and
trusts
other
than
grantor
trusts.
1
t.
“Reallocation
adjustment”
means
a
final
federal
2
partnership
adjustment
that
changes
the
shares
of
items
of
3
partnership
income,
gain,
loss,
expense,
or
credit
allocated
4
to
a
partner
that
holds
an
interest
directly
in
a
partnership
5
or
pass-through
entity.
A
positive
reallocation
adjustment
6
means
the
portion
of
a
reallocation
adjustment
that
would
7
increase
Iowa
taxable
income
for
such
partners,
and
a
negative
8
reallocation
adjustment
means
the
portion
of
a
reallocation
9
adjustment
that
would
decrease
Iowa
taxable
income
for
such
10
partners.
11
u.
“Resident
partner”
means
any
of
the
following:
12
(1)
For
an
individual
partner,
a
“resident”
as
defined
in
13
section
422.4.
14
(2)
For
a
fiduciary
partner,
one
with
situs
in
Iowa.
15
(3)
For
all
other
partners,
a
partner
whose
headquarters
or
16
principal
place
of
business
is
located
in
Iowa.
17
v.
“Reviewed
year”
means
the
taxable
year
of
a
partnership
18
that
is
subject
to
a
partnership
level
audit
from
which
final
19
federal
partnership
adjustments
arise,
or
otherwise
means
the
20
taxable
year
of
the
partnership
or
pass-through
entity
that
is
21
the
subject
of
a
state
partnership
audit.
22
w.
“State
partnership
audit”
means
an
examination
by
the
23
director
at
the
partnership
or
pass-through
entity
level
which
24
results
in
adjustments
to
partnership
or
pass-through
entity
25
related
items
or
reallocations
of
income,
gains,
losses,
26
expenses,
credits,
and
other
attributes
among
such
partners
for
27
the
reviewed
year.
28
x.
“Tiered
partner”
means
any
partner
that
is
a
partnership
29
or
pass-through
entity.
30
y.
“Unrelated
business
income”
means
the
income
which
is
31
defined
in
section
512
of
the
Internal
Revenue
Code
and
the
32
regulations
thereunder.
33
2.
Application.
Partnerships
and
their
direct
partners
34
and
indirect
partners
shall
report
final
federal
partnership
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adjustments
as
provided
in
this
section.
1
3.
State
partnership
representative.
Notwithstanding
any
2
other
law
to
the
contrary,
the
state
partnership
representative
3
for
the
reviewed
year
shall
have
the
sole
authority
to
act
on
4
behalf
of
the
partnership
or
pass-through
entity
with
respect
5
to
an
action
required
or
permitted
to
be
taken
by
a
partnership
6
or
pass-through
entity
under
this
section
or
section
422.28
or
7
422.29
with
respect
to
final
federal
partnership
adjustments
8
arising
from
a
partnership
level
audit
or
an
administrative
9
adjustment
request,
and
its
direct
partners
and
indirect
10
partners
shall
be
bound
by
those
actions.
11
4.
Reporting
and
payment
requirements
for
audited
12
partnerships
and
their
partners
subject
to
final
federal
13
partnership
adjustments.
14
a.
Unless
an
audited
partnership
makes
the
election
in
15
subsection
5,
the
audited
partnership
shall
do
all
of
the
16
following
for
all
final
federal
partnership
adjustments
no
17
later
than
ninety
days
after
the
final
determination
date
of
18
the
audited
partnership:
19
(1)
File
a
completed
federal
adjustments
report.
20
(2)
Notify
each
direct
partner
of
such
partner’s
21
distributive
share
of
the
adjustments
in
the
manner
and
form
22
prescribed
by
the
department
by
rule.
23
(3)
File
an
amended
composite
return
under
section
422.13
24
if
one
was
originally
filed,
and
if
applicable
for
withholding
25
from
partners,
file
an
amended
withholding
report
under
26
section
422.16,
and
pay
the
additional
amount
under
this
title
27
that
would
have
been
due
had
the
final
federal
partnership
28
adjustments
been
reported
properly
as
required,
including
any
29
applicable
interest
and
penalties.
30
b.
Unless
an
audited
partnership
paid
an
amount
on
behalf
31
of
the
direct
partners
of
the
audited
partnership
pursuant
to
32
subsection
5,
all
direct
partners
of
the
audited
partnership
33
shall
do
all
of
the
following
no
later
than
one
hundred
34
eighty
days
after
the
final
determination
date
of
the
audited
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partnership:
1
(1)
File
a
completed
federal
adjustments
report
reporting
2
the
direct
partner’s
distributive
share
of
the
adjustments
3
required
to
be
reported
to
such
partners
under
paragraph
“a”
.
4
(2)
If
the
direct
partner
is
a
tiered
partner,
notify
all
5
partners
that
hold
an
interest
directly
in
the
tiered
partner
6
of
such
partner’s
distributive
share
of
the
adjustments
in
the
7
manner
and
form
prescribed
by
the
department
by
rule.
8
(3)
If
the
direct
partner
is
a
tiered
partner
and
subject
to
9
section
422.13,
file
an
amended
composite
return
under
section
10
422.13
if
such
return
was
originally
filed,
and
if
applicable
11
for
withholding
from
partners
file
an
amended
withholding
12
report
under
section
422.16
if
one
was
originally
required
to
13
be
filed.
14
(4)
Pay
any
additional
amount
under
this
title
that
would
15
have
been
due
had
the
final
federal
partnership
adjustments
16
been
reported
properly
as
required,
including
any
applicable
17
penalty
and
interest.
18
c.
Unless
a
partnership
or
tiered
partner
paid
an
amount
on
19
behalf
of
the
partners
pursuant
to
subsection
5,
each
indirect
20
partner
shall
do
all
of
the
following:
21
(1)
Within
ninety
days
after
the
time
for
filing
and
22
furnishing
statements
to
tiered
partners
and
their
partners
23
as
established
by
section
6226
of
the
Internal
Revenue
Code
24
and
the
regulations
thereunder,
file
a
completed
federal
25
adjustments
report.
26
(2)
If
the
indirect
partner
is
a
tiered
partner,
within
27
ninety
days
after
the
time
for
filing
and
furnishing
statements
28
to
tiered
partners
and
their
partners
as
established
by
29
section
6226
of
the
Internal
Revenue
Code
and
the
regulations
30
thereunder
but
within
sufficient
time
for
all
indirect
partners
31
to
also
complete
the
requirements
of
this
subsection,
notify
32
all
of
the
partners
that
hold
an
interest
directly
in
the
33
tiered
partner
of
such
partner’s
distributive
share
of
the
34
adjustments
in
the
manner
and
form
prescribed
by
the
department
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by
rule.
1
(3)
Within
ninety
days
after
the
time
for
filing
and
2
furnishing
statements
to
tiered
partners
and
their
partners
3
as
established
by
section
6226
of
the
Internal
Revenue
Code
4
and
the
regulations
thereunder,
if
the
indirect
partner
5
is
a
tiered
partner
and
subject
to
section
422.13,
file
an
6
amended
composite
return
under
section
422.13
if
such
return
7
was
originally
filed,
and
if
applicable
for
withholding
from
8
partners,
file
an
amended
withholding
report
under
section
9
422.16
if
one
was
originally
required
to
be
filed.
10
(4)
Within
ninety
days
after
the
time
for
filing
and
11
furnishing
statements
to
tiered
partners
and
the
partners
of
12
the
tiered
partners
as
established
by
section
6226
of
the
13
Internal
Revenue
Code
and
the
regulations
thereunder,
pay
any
14
additional
amount
due
under
this
title,
including
any
penalty
15
and
interest
that
would
have
been
due
had
the
final
federal
16
partnership
adjustments
been
reported
properly
as
required.
17
5.
Election
for
partnership
or
tiered
partners
to
pay.
18
a.
An
audited
partnership,
or
a
tiered
partner
that
receives
19
a
notification
of
a
final
federal
partnership
adjustment
under
20
subsection
4,
may
make
an
election
to
pay
as
provided
under
21
this
subsection.
22
b.
An
audited
partnership
or
tiered
partner
makes
an
23
election
to
pay
under
this
subsection
by
filing
a
completed
24
federal
adjustments
report,
notifying
the
department
in
the
25
manner
and
form
prescribed
by
the
department
that
it
is
making
26
the
election
under
this
subsection,
notifying
each
of
the
27
direct
partners
of
such
partner’s
distributive
share
of
the
28
adjustments,
and
paying
on
behalf
of
its
partners
an
amount
29
calculated
in
paragraph
“c”
,
including
any
applicable
penalty
30
and
interest.
These
requirements
shall
all
be
fulfilled
within
31
one
of
the
following
time
periods:
32
(1)
For
the
audited
partnership,
no
later
than
ninety
days
33
after
the
final
determination
date
of
the
audited
partnership.
34
(2)
For
a
direct
tiered
partner,
no
later
than
one
hundred
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eighty
days
after
the
final
determination
date
of
the
audited
1
partnership.
2
(3)
For
an
indirect
tiered
partner,
within
ninety
days
3
after
the
time
for
filing
and
furnishing
statements
to
a
4
tiered
partner
and
the
partner
of
the
tiered
partner,
as
5
established
by
section
6226
of
the
Internal
Revenue
Code
and
6
the
regulations
thereunder.
7
c.
The
amount
due
under
this
subsection
from
an
audited
8
partnership
or
tiered
partner
shall
be
calculated
as
follows:
9
(1)
Exclude
from
final
federal
partnership
adjustments
and
10
any
positive
reallocation
adjustments
the
distributive
share
11
of
such
adjustments
reported
to
an
exempt
partner
that
holds
12
an
interest
directly
in
the
audited
partnership
if
the
audited
13
partnership
is
making
the
election
or
that
holds
an
interest
14
directly
in
the
tiered
partner
if
the
tiered
partner
is
making
15
the
election,
but
only
to
the
extent
the
distributive
share
is
16
not
unrelated
business
income.
17
(2)
Determine
the
total
distributive
share
of
all
final
18
federal
partnership
adjustments
and
positive
reallocation
19
adjustments
as
modified
by
this
title
that
are
reported
to
20
corporate
partners,
and
to
exempt
partners
to
the
extent
the
21
distributive
share
is
unrelated
business
income,
and
allocate
22
and
apportion
such
adjustments
as
provided
in
section
422.33
23
at
the
partnership
or
tiered
partner
level,
and
multiply
the
24
resulting
amount
by
the
maximum
state
corporate
income
tax
rate
25
pursuant
to
section
422.33
for
the
reviewed
year.
26
(3)
Determine
the
total
distributive
share
of
all
final
27
federal
partnership
adjustments
and
positive
reallocation
28
adjustments
as
modified
by
this
title
that
are
reported
to
29
nonresident
individual
partners
and
nonresident
fiduciary
30
partners
and
allocate
and
apportion
such
adjustments
as
31
provided
in
section
422.33
at
the
partnership
or
tiered
32
partner
level,
and
multiply
the
resulting
amount
by
the
maximum
33
individual
income
tax
rate
pursuant
to
section
422.5A
for
the
34
reviewed
year.
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(4)
For
the
total
distributive
share
of
all
final
federal
1
partnership
adjustments
and
positive
reallocation
adjustments
2
as
modified
by
this
title
that
are
reported
to
tiered
partners:
3
(a)
Determine
the
amount
of
such
adjustments
which
are
of
a
4
type
that
would
be
subject
to
sourcing
to
Iowa
under
section
5
422.8,
subsection
2,
paragraph
“a”
,
as
a
nonresident,
and
then
6
determine
the
portion
of
this
amount
that
would
be
sourced
to
7
Iowa
under
those
provisions
as
if
the
tiered
partner
were
a
8
nonresident.
9
(b)
Determine
the
amount
of
such
adjustments
which
are
of
10
a
type
that
would
not
be
subject
to
sourcing
to
Iowa
under
11
section
422.8,
subsection
2,
paragraph
“a”
,
as
a
nonresident.
12
(c)
Determine
the
portion
of
the
amount
in
subparagraph
13
division
(b)
that
can
be
established,
as
prescribed
by
the
14
department
by
rule,
to
be
properly
allocable
to
indirect
15
partners
that
are
nonresident
partners
or
other
partners
not
16
subject
to
tax
on
the
adjustments.
17
(d)
Multiply
the
total
of
the
amounts
determined
in
18
subparagraph
divisions
(a)
and
(b),
reduced
by
any
amount
19
determined
in
subparagraph
division
(c),
by
the
highest
20
individual
income
tax
rate
pursuant
to
section
422.5A
for
the
21
reviewed
year.
22
(5)
For
the
total
distributive
share
of
all
final
federal
23
partnership
adjustments
and
positive
reallocation
adjustments
24
as
modified
by
this
title
that
are
reported
to
resident
25
individual
partners
and
resident
fiduciary
partners,
multiply
26
that
amount
by
the
highest
individual
income
tax
rate
pursuant
27
to
section
422.5A
for
the
reviewed
year.
28
(6)
Total
the
amounts
computed
pursuant
to
subparagraphs
29
(2)
through
(5)
and
calculate
any
interest
and
penalty
as
30
provided
under
this
title.
Notwithstanding
any
provision
of
31
law
to
the
contrary,
interest
and
penalties
on
the
amount
due
32
by
the
audited
partnership
or
tiered
partner
shall
be
computed
33
from
the
day
after
the
due
date
of
the
reviewed
year
return
34
without
extension,
and
shall
be
imposed
as
if
the
audited
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partnership
or
tiered
partner
was
required
to
pay
tax
or
show
1
tax
due
on
the
original
return
for
the
reviewed
year.
2
d.
Adjustments
subject
to
the
election
in
this
subsection
3
do
not
include
any
adjustments
arising
from
an
administrative
4
adjustment
request.
5
e.
An
audited
partnership
or
tiered
partner
not
otherwise
6
subject
to
any
reporting
or
payment
obligation
to
Iowa
that
7
makes
an
election
under
this
subsection
consents
to
be
subject
8
to
the
Iowa
laws
related
to
reporting,
assessment,
collection,
9
and
payment
of
Iowa
tax,
interest,
and
penalties
calculated
10
under
the
election.
11
6.
Modified
reporting
and
payment
method.
The
department
may
12
adopt
procedures
for
an
audited
partnership
or
tiered
partner
13
to
enter
into
an
agreement
with
the
department
to
use
an
14
alternative
reporting
and
payment
method,
including
applicable
15
time
requirements
or
any
other
provision
of
this
section.
The
16
audited
partnership
or
tiered
partner
must
demonstrate
that
17
the
requested
method
will
reasonably
provide
for
the
reporting
18
and
payment
of
taxes,
penalties,
and
interest
due
under
the
19
provisions
of
this
section.
Application
for
approval
of
an
20
alternative
reporting
and
payment
method
must
be
made
by
the
21
audited
partnership
or
tiered
partner
within
the
time
for
22
making
an
election
to
pay
under
subsection
5
and
in
the
manner
23
prescribed
by
the
department.
Approval
of
such
an
alternative
24
reporting
and
payment
method
shall
be
at
the
discretion
of
the
25
department.
26
7.
Effect
of
election
by
partnership
or
tiered
partner
and
27
payment
of
amount
due.
28
a.
The
election
made
under
subsection
5
is
irrevocable,
29
unless
in
the
discretion
of
the
director,
the
director
30
determines
otherwise.
31
b.
The
amount
determined
in
subsection
5,
when
properly
32
reported
and
paid
by
the
audited
partnership
or
tiered
partner,
33
shall
be
treated
as
paid
on
behalf
of
the
partners
of
such
34
audited
partnership
or
tiered
partner
on
the
same
final
federal
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partnership
adjustments,
provided,
however,
that
no
partner
may
1
take
any
deduction
or
credit
for
the
amount,
claim
a
refund
of
2
the
amount,
or
include
the
amount
on
such
partner’s
Iowa
return
3
in
any
manner.
4
c.
In
the
event
another
state
offers
to
an
audited
5
partnership
or
tiered
partner
a
similar
election
to
pay
state
6
tax
resulting
from
final
federal
partnership
adjustments,
7
nothing
in
this
subsection
shall
prohibit
a
resident
who
holds
8
an
interest
directly
in
that
audited
partnership
or
tiered
9
partner,
as
the
case
may
be,
from
claiming
a
credit
for
taxes
10
paid
by
the
resident
to
another
state
under
section
422.8,
11
subsection
1,
for
any
amounts
paid
by
the
audited
partnership
12
or
tiered
partner
on
such
resident
partner’s
behalf
to
another
13
state,
provided
such
payment
otherwise
meets
the
requirements
14
of
section
422.8,
subsection
1.
15
d.
Nothing
in
this
section
shall
prohibit
the
department
16
from
assessing
direct
partners
and
indirect
partners
for
taxes
17
they
owe
in
the
event
that
an
audited
partnership
or
tiered
18
partner
fails
to
timely
make
any
report
or
payment
required
by
19
this
section
for
any
reason.
20
8.
Assessments
of
additional
Iowa
income
tax,
interest,
and
21
penalties,
and
claims
for
refund,
arising
from
final
federal
22
partnership
adjustments.
23
a.
The
department
shall
assess
additional
Iowa
income
24
tax,
interest,
and
penalties
arising
from
final
federal
25
partnership
adjustments
in
the
same
manner
as
provided
in
26
this
title
unless
a
different
treatment
is
provided
by
this
27
subsection.
Since
final
federal
partnership
adjustments
are
28
determined
at
the
audited
partnership
level,
any
assessment
29
issued
to
partners
shall
not
be
appealable
by
the
partner.
30
The
department
may
assess
any
taxes,
including
on-behalf-of
31
amounts,
interest,
and
penalties
arising
from
the
final
federal
32
partnership
adjustments
if
it
issues
a
notice
of
assessment
to
33
the
audited
partnership,
tiered
partner,
or
other
direct
or
34
indirect
partner
on
or
before
the
expiration
of
the
applicable
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limitations
period
specified
in
section
422.25.
1
b.
In
addition
to
the
period
for
claiming
a
refund
or
credit
2
provided
in
section
422.73,
subsection
1,
paragraph
“a”
,
and
3
notwithstanding
section
422.73,
subsection
1,
paragraph
“b”
,
4
a
partnership,
tiered
partner,
or
other
direct
or
indirect
5
partner,
as
the
case
may
be,
may
file
a
claim
for
refund
of
6
Iowa
income
tax
arising
directly
or
indirectly
from
a
final
7
federal
partnership
adjustment
arising
from
a
partnership
level
8
audit
on
or
before
the
date
which
is
one
year
from
the
date
the
9
federal
adjustments
report
for
that
final
federal
partnership
10
adjustment
was
required
to
be
filed
by
such
person
under
this
11
section.
12
9.
Rules.
The
department
may
adopt
any
rules
pursuant
to
13
chapter
17A
to
implement
this
section.
14
Sec.
68.
NEW
SECTION
.
422.25B
State
partnership
15
representative.
16
1.
As
used
in
this
section,
all
words
and
phrases
defined
17
in
section
422.25A
shall
have
the
same
meaning
given
them
by
18
that
section.
19
2.
The
state
partnership
representative
for
the
reviewed
20
year
for
a
partnership
shall
be
the
partnership’s
federal
21
partnership
representative
with
respect
to
an
action
required
22
or
permitted
to
be
taken
by
a
state
partnership
representative
23
under
this
chapter
for
a
reviewed
year,
unless
the
partnership
24
designates
in
writing
another
person
as
the
state
partnership
25
representative
as
provided
in
subsection
3.
The
state
26
partnership
representative
for
the
reviewed
year
for
a
27
pass-through
entity
is
the
person
designated
in
subsection
3.
28
3.
The
department
may
establish
reasonable
qualifications
29
for
a
person
to
be
a
state
partnership
representative.
If
30
a
partnership
desires
to
designate
a
person
other
than
the
31
federal
partnership
representative,
the
partnership
shall
32
designate
such
person
in
the
manner
and
form
prescribed
by
the
33
department.
A
pass-through
entity
shall
designate
a
person
as
34
the
state
partnership
representative
in
the
manner
and
form
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prescribed
by
the
department.
A
partnership
or
pass-through
1
entity
shall
be
allowed
to
change
such
designation
by
notifying
2
the
department
at
the
time
the
change
occurs
in
the
manner
and
3
form
prescribed
by
the
department.
4
4.
The
department
may
adopt
any
rules
pursuant
to
chapter
5
17A
to
implement
this
section.
6
Sec.
69.
NEW
SECTION
.
422.25C
Partnership
and
pass-through
7
entity
audits
and
examinations
——
consistent
treatment
of
8
entity-level
items
——
binding
actions
——
amended
returns.
9
1.
As
used
in
this
section,
all
words
and
phrases
defined
10
in
section
422.25A
shall
have
the
same
meaning
given
them
by
11
that
section.
12
2.
For
tax
years
beginning
on
or
after
January
1,
2020,
any
13
adjustments
to
a
partnership’s
or
pass-through
entity’s
items
14
of
income,
gain,
loss,
expense,
or
credit,
or
an
adjustment
15
to
such
items
allocated
to
a
partner
that
holds
an
interest
16
in
a
partnership
or
pass-through
entity
for
the
reviewed
year
17
by
the
department
as
a
result
of
a
state
partnership
audit,
18
shall
be
determined
at
the
partnership
level
or
pass-through
19
entity
level
in
the
same
manner
as
provided
by
section
6221(a)
20
of
the
Internal
Revenue
Code
and
the
regulations
thereunder
21
unless
a
different
treatment
is
specifically
provided
in
this
22
title.
The
provisions
of
sections
6222,
6223,
and
6227
of
the
23
Internal
Revenue
Code
and
the
regulations
thereunder
shall
also
24
apply
to
a
partnership
or
pass-through
entity
and
its
direct
25
or
indirect
partners
in
the
same
manner
as
provided
in
such
26
sections
unless
a
different
treatment
is
specifically
provided
27
in
this
title.
For
purposes
of
applying
such
sections,
due
28
account
shall
be
made
for
differences
in
federal
and
Iowa
29
terminology.
The
adjustment
provided
by
section
6221(a)
of
30
the
Internal
Revenue
Code
shall
be
determined
as
provided
in
31
such
section
but
shall
be
based
on
Iowa
taxable
income
or
32
other
tax
attributes
of
the
partnership
as
determined
pursuant
33
to
this
chapter
for
the
reviewed
year.
The
department
shall
34
issue
a
notice
of
adjustment
to
the
partnership
or
pass-through
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entity.
Such
notice
shall
be
treated
as
an
assessment
for
1
the
purposes
of
section
422.25,
and
the
notice
shall
be
2
appealable
by
the
partnership
or
pass-through
entity
pursuant
3
to
sections
422.28
and
422.29
and
shall
be
issued
within
the
4
time
period
provided
by
section
422.25.
Once
the
adjustments
5
to
partnership-related
or
pass-through
entity-related
items
or
6
reallocations
of
income,
gains,
losses,
expenses,
credits,
and
7
other
attributes
among
such
partners
for
the
reviewed
year
are
8
finally
determined,
the
partnership
or
pass-through
entity
and
9
any
direct
partners
or
indirect
partners
shall
then
be
subject
10
to
the
provisions
of
section
422.25,
subsection
1,
paragraph
11
“e”
,
and
section
422.25A
in
the
same
manner
as
if
the
state
12
partnership
audit
were
a
federal
partnership
level
audit,
and
13
as
if
the
final
state
partnership
audit
adjustment
were
a
final
14
federal
partnership
adjustment.
The
penalty
exceptions
in
15
section
421.27,
subsection
2,
paragraphs
“b”
and
“c”
,
shall
not
16
apply
to
a
state
partnership
audit.
17
3.
The
state
partnership
representative
for
the
reviewed
18
year
as
determined
under
section
422.25B
shall
have
the
sole
19
authority
to
act
on
behalf
of
the
partnership
or
pass-through
20
entity
with
respect
to
an
action
required
or
permitted
to
21
be
taken
by
a
partnership
or
pass-through
entity
under
this
22
section,
including
proceedings
under
section
422.28
or
422.29,
23
and
the
partnership’s
or
pass-through
entity’s
direct
partners
24
and
indirect
partners
shall
be
bound
by
those
actions.
25
4.
If
the
department,
the
partnership
or
pass-through
26
entity,
and
the
partnership
or
pass-through
entity
owners
27
agree,
the
provisions
of
this
section
may
be
applied
to
tax
28
years
beginning
before
January
1,
2020.
29
5.
The
department
may
adopt
rules
pursuant
to
chapter
17A
to
30
implement
this
section.
31
Sec.
70.
Section
422.35,
Code
2020,
is
amended
by
adding
the
32
following
new
subsection:
33
NEW
SUBSECTION
.
26.
Any
income
subtracted
from
federal
34
taxable
income
for
an
adjustment
year
pursuant
to
section
6225
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of
the
Internal
Revenue
Code
and
the
regulations
thereunder
1
shall
be
added
back
in
computing
net
income
for
state
tax
2
purposes
for
the
adjustment
year.
3
Sec.
71.
Section
422.39,
Code
2020,
is
amended
by
striking
4
the
section
and
inserting
in
lieu
thereof
the
following:
5
422.39
Statutes
applicable
to
corporations
and
corporation
6
tax.
7
All
the
provisions
of
sections
422.24
through
422.27
8
of
division
II,
respecting
payment,
collection,
reporting,
9
examination,
and
assessment,
shall
apply
in
respect
to
a
10
corporation
subject
to
the
provisions
of
this
division
and
to
11
the
tax
due
and
payable
by
a
corporation
taxable
under
this
12
division.
This
includes
but
is
not
limited
to
a
corporation
13
that
is
a
pass-through
entity
as
defined
in
section
422.25A.
14
Sec.
72.
Section
422.73,
Code
2020,
is
amended
by
adding
the
15
following
new
subsection:
16
NEW
SUBSECTION
.
01.
For
purposes
of
this
section,
“federal
17
adjustment”
,
“final
determination
date”
,
and
“final
federal
18
adjustment”
all
mean
the
same
as
defined
in
section
422.25.
19
Sec.
73.
Section
422.73,
subsections
1
and
3,
Code
2020,
are
20
amended
to
read
as
follows:
21
1.
a.
If
it
appears
that
an
amount
of
tax,
penalty,
or
22
interest
has
been
paid
which
was
not
due
under
division
II
,
23
III
or
V
of
this
chapter
,
then
that
amount
shall
be
credited
24
against
any
tax
due
on
the
books
of
the
department
by
the
25
person
who
made
the
excessive
payment,
or
that
amount
shall
be
26
refunded
to
the
person
or
with
the
person’s
approval,
credited
27
to
tax
to
become
due.
A
claim
for
refund
or
credit
that
has
28
not
been
filed
with
the
department
within
three
years
after
29
the
return
upon
which
a
refund
or
credit
claimed
became
due,
30
or
within
one
year
after
the
payment
of
the
tax
upon
which
a
31
refund
or
credit
is
claimed
was
made,
whichever
time
is
the
32
later,
shall
not
be
allowed
by
the
director.
If,
as
a
result
of
33
a
carryback
of
a
net
operating
loss
or
a
net
capital
loss,
the
34
amount
of
tax
in
a
prior
period
is
reduced
and
an
overpayment
35
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results,
the
claim
for
refund
or
credit
of
the
overpayment
1
shall
be
filed
with
the
department
within
the
three
years
after
2
the
return
for
the
taxable
year
of
the
net
operating
loss
or
3
net
capital
loss
became
due.
4
b.
Notwithstanding
the
period
of
limitation
specified
in
5
paragraph
“a”
,
the
taxpayer
shall
have
six
months
one
year
from
6
the
day
of
final
disposition
final
determination
date
of
any
7
income
tax
matter
between
the
taxpayer
and
the
internal
revenue
8
service
final
federal
adjustment
arising
from
an
internal
9
revenue
service
audit
or
other
similar
action
by
the
internal
10
revenue
service
with
respect
to
the
particular
tax
year
to
11
claim
an
income
tax
refund
or
credit
arising
from
that
final
12
federal
adjustment
.
13
3.
The
department
shall
enter
into
an
agreement
with
the
14
internal
revenue
service
for
the
transmission
of
federal
income
15
tax
reports
on
individuals
required
to
file
an
Iowa
income
tax
16
return
who
have
been
involved
in
an
income
tax
matter
with
the
17
internal
revenue
service.
After
final
disposition
the
final
18
determination
date
of
the
income
tax
matter
that
involves
a
19
final
federal
adjustment
between
the
taxpayer
and
the
internal
20
revenue
service,
the
department
shall
determine
whether
the
21
individual
is
due
a
state
income
tax
refund
as
a
result
of
that
22
final
disposition
of
federal
adjustment
from
such
income
tax
23
matter.
If
the
individual
is
due
a
state
income
tax
refund,
24
the
department
shall
notify
the
individual
within
thirty
days
25
and
request
the
individual
to
file
a
claim
for
refund
or
credit
26
with
the
department.
27
Sec.
74.
APPLICABILITY.
This
division
of
this
Act
applies
28
to
federal
adjustments
and
federal
partnership
adjustments
that
29
have
a
final
determination
date
after
the
effective
date
of
30
this
division
of
this
Act.
31
DIVISION
VII
32
SETOFF
PROCEDURES
——
RULEMAKING
——
EFFECTIVE
DATE
33
Sec.
75.
RULES.
The
following
applies
to
2020
Iowa
Acts,
34
Senate
file
2328
or
House
File
2565,
if
enacted:
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The
department
of
revenue
shall
adopt
rules
governing
1
setoffs
that
occur
during
the
transition
from
the
department
of
2
administrative
services
to
the
department
of
revenue.
3
Sec.
76.
2020
Iowa
Acts,
Senate
File
2328,
if
enacted,
is
4
amended
by
adding
the
following
new
section:
5
NEW
SECTION
.
Sec.
28.
EFFECTIVE
DATE.
This
Act
takes
6
effect
on
the
later
of
January
1,
2021,
or
the
effective
date
7
of
the
rules
adopted
by
the
department
of
revenue
pursuant
8
to
chapter
17A
implementing
this
Act
other
than
transitional
9
rules.
10
Sec.
77.
2020
Iowa
Acts,
House
File
2565,
section
28,
if
11
enacted,
is
amended
to
read
as
follows:
12
SEC.
28.
EFFECTIVE
DATE.
This
Act
takes
effect
on
the
13
later
of
January
1,
2021
,
or
the
effective
date
of
the
rules
14
adopted
by
the
department
of
revenue
pursuant
to
chapter
17A
15
implementing
this
Act
other
than
transitional
rules
.
16
Sec.
78.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
17
deemed
of
immediate
importance,
takes
effect
upon
enactment.
18
Sec.
79.
RETROACTIVE
APPLICABILITY.
This
division
of
this
19
Act
applies
retroactively
to
the
effective
date
of
2020
Iowa
20
Acts,
Senate
File
2328
or
House
File
2565,
if
enacted.
21
DIVISION
VIII
22
BUSINESS
INTEREST
EXPENSE
DEDUCTION
AND
GLOBAL
INTANGIBLE
23
LOW-TAXED
INCOME
24
Sec.
80.
Section
422.7,
Code
2020,
is
amended
by
adding
the
25
following
new
subsection:
26
NEW
SUBSECTION
.
59.
a.
Section
163(j)
of
the
Internal
27
Revenue
Code
does
not
apply
in
computing
net
income
for
state
28
tax
purposes.
If
the
taxpayer’s
federal
adjusted
gross
income
29
for
the
tax
year
was
increased
or
decreased
by
reason
of
the
30
application
of
section
163(j)
of
the
Internal
Revenue
Code,
31
the
taxpayer
shall
recompute
net
income
for
state
tax
purposes
32
under
rules
prescribed
by
the
director.
33
b.
Paragraph
“a”
shall
not
apply
during
any
tax
year
34
in
which
the
additional
first-year
depreciation
allowance
35
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authorized
in
section
168(k)
of
the
Internal
Revenue
Code
1
applies
in
computing
net
income
for
state
tax
purposes.
2
c.
For
any
tax
year
in
which
paragraph
“a”
does
not
apply,
3
a
taxpayer
shall
not
be
permitted
to
deduct
any
amount
of
4
interest
expense
paid
or
accrued
in
a
previous
taxable
year
5
that
is
allowed
as
a
deduction
in
the
current
taxable
year
by
6
reason
of
the
carryforward
of
disallowed
business
interest
7
provisions
of
section
163(j)(2)
of
the
Internal
Revenue
Code,
8
if
either
of
the
following
apply:
9
(1)
The
interest
expense
was
originally
paid
or
accrued
10
during
a
tax
year
in
which
paragraph
“a”
applied.
11
(2)
The
interest
expense
was
originally
paid
or
accrued
12
during
a
tax
year
in
which
the
taxpayer
was
not
required
to
13
file
an
Iowa
return.
14
Sec.
81.
Section
422.35,
Code
2020,
is
amended
by
adding
the
15
following
new
subsections:
16
NEW
SUBSECTION
.
26.
a.
Section
163(j)
of
the
Internal
17
Revenue
Code
does
not
apply
in
computing
net
income
for
state
18
tax
purposes.
If
the
taxpayer’s
federal
taxable
income
for
19
the
tax
year
was
increased
or
decreased
by
reason
of
the
20
application
of
section
163(j)
of
the
Internal
Revenue
Code,
21
the
taxpayer
shall
recompute
net
income
for
state
tax
purposes
22
under
rules
prescribed
by
the
director.
23
b.
Paragraph
“a”
shall
not
apply
during
any
tax
year
24
in
which
the
additional
first-year
depreciation
allowance
25
authorized
in
section
168(k)
of
the
Internal
Revenue
Code
26
applies
in
computing
net
income
for
state
tax
purposes.
27
c.
For
any
tax
year
in
which
paragraph
“a”
does
not
apply,
28
a
taxpayer
shall
not
be
permitted
to
deduct
any
amount
of
29
interest
expense
paid
or
accrued
in
a
previous
taxable
year
30
that
is
allowed
as
a
deduction
in
the
current
taxable
year
by
31
reason
of
the
carryforward
of
disallowed
business
interest
32
provisions
of
section
163(j)(2)
of
the
Internal
Revenue
Code,
33
if
either
of
the
following
apply:
34
(1)
The
interest
expense
was
originally
paid
or
accrued
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during
a
tax
year
in
which
paragraph
“a”
applied.
1
(2)
The
interest
expense
was
originally
paid
or
accrued
2
during
a
tax
year
in
which
the
taxpayer
was
not
required
to
3
file
an
Iowa
return.
4
NEW
SUBSECTION
.
27.
Subtract,
to
the
extent
included,
5
global
intangible
low-taxed
income
under
section
951A
of
the
6
Internal
Revenue
Code.
7
Sec.
82.
RESCISSION
OF
ADMINISTRATIVE
RULES.
8
1.
Contingent
upon
the
enactment
of
the
section
of
this
9
Act
amending
section
422.35,
subsection
27,
the
following
Iowa
10
administrative
rules
are
rescinded:
11
a.
701
Iowa
administrative
code,
rule
54.2,
subrule
3,
12
paragraph
“i”.
13
b.
701
Iowa
administrative
code,
rule
59.28,
subrule
2,
14
paragraph
“p”.
15
2.
As
soon
as
practicable,
the
Iowa
administrative
code
16
editor
shall
remove
the
language
of
the
Iowa
administrative
17
rules
referenced
in
subsection
1
of
this
section
from
the
Iowa
18
administrative
code.
19
Sec.
83.
EFFECTIVE
DATE.
This
Act,
being
deemed
of
20
immediate
importance,
takes
effect
upon
enactment.
21
Sec.
84.
RETROACTIVE
APPLICABILITY.
The
following
applies
22
retroactively
to
January
1,
2019,
for
tax
years
beginning
on
23
or
after
that
date:
24
The
portion
of
the
section
of
this
division
of
this
Act
25
enacting
section
422.35,
subsection
27.
26
Sec.
85.
RETROACTIVE
APPLICABILITY.
The
following
apply
27
retroactively
to
January
1,
2020
for
tax
years
beginning
on
or
28
after
that
date:
29
1.
The
section
of
this
division
of
this
Act
enacting
section
30
422.7,
subsection
59.
31
2.
The
portion
of
the
section
of
this
division
of
this
Act
32
enacting
section
422.35,
subsection
26.
33
DIVISION
IX
34
IOWA
REINVESTMENT
ACT
35
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Sec.
86.
Section
15J.2,
subsections
4,
7,
8,
and
9,
Code
1
2020,
are
amended
to
read
as
follows:
2
4.
“District”
means
the
area
within
a
municipality
that
is
3
designated
a
reinvestment
district
pursuant
to
section
15J.4
.
4
7.
“Municipality”
means
a
county
or
an
incorporated
city.
5
any
of
the
following:
6
a.
A
county.
7
b.
An
incorporated
city.
8
c.
A
joint
board
or
other
legal
entity
established
or
9
designated
in
an
agreement
between
two
or
more
contiguous
10
municipalities
identified
in
paragraph
“a”
or
“b”
pursuant
to
11
chapter
28E.
12
8.
a.
“New
lessor”
means
a
lessor,
as
defined
in
section
13
423A.2
,
operating
a
business
in
the
district
that
was
not
in
14
operation
in
the
area
of
the
district
before
the
effective
15
date
of
the
ordinance
or
resolution
establishing
the
district,
16
regardless
of
ownership.
17
b.
“New
lessor”
also
includes
any
lessor,
defined
in
section
18
423A.2
,
operating
a
business
in
the
district
if
the
place
of
19
business
for
that
business
is
the
subject
of
a
project
that
was
20
approved
by
the
board.
21
9.
a.
“New
retail
establishment”
means
a
business
operated
22
in
the
district
by
a
retailer,
as
defined
in
section
423.1
,
23
that
was
not
in
operation
in
the
area
of
the
district
before
24
the
effective
date
of
the
ordinance
or
resolution
establishing
25
the
district,
regardless
of
ownership.
26
b.
“New
retail
establishment”
also
includes
any
business
27
operated
in
the
district
by
a
retailer,
as
defined
in
section
28
423.1
,
if
the
place
of
business
for
that
retail
establishment
29
is
the
subject
of
a
project
that
was
approved
by
the
board.
30
Sec.
87.
Section
15J.4,
subsection
1,
unnumbered
paragraph
31
1,
Code
2020,
is
amended
to
read
as
follows:
32
A
municipality
that
has
an
area
suitable
for
development
33
within
the
boundaries
of
the
municipality
or
within
the
34
combined
boundaries
of
a
municipality
under
section
15J.2,
35
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subsection
7,
paragraph
“c”
,
is
eligible
to
seek
approval
from
1
the
board
to
establish
a
reinvestment
district
under
this
2
section
consisting
of
the
area
suitable
for
development.
To
3
be
designated
a
reinvestment
district,
an
area
shall
meet
the
4
following
requirements:
5
Sec.
88.
Section
15J.4,
subsection
1,
paragraphs
c
and
d,
6
Code
2020,
are
amended
to
read
as
follows:
7
c.
The
For
districts
approved
before
July
1,
2018,
the
area
8
consists
of
contiguous
parcels
and
does
not
exceed
twenty-five
9
acres
in
total.
For
districts
approved
on
or
after
July
1,
10
2020,
the
area
consists
of
contiguous
parcels
and
does
not
11
exceed
seventy-five
acres
in
total.
12
d.
For
a
municipality
that
is
a
city
or
for
a
city
that
13
is
party
to
an
agreement
under
section
15J.2,
subsection
7,
14
paragraph
“c”
,
the
area
does
not
include
the
entire
incorporated
15
area
of
the
city.
16
Sec.
89.
Section
15J.4,
subsection
3,
paragraph
a,
Code
17
2020,
is
amended
to
read
as
follows:
18
a.
The
municipality
shall
submit
a
copy
of
the
resolution,
19
the
proposed
district
plan,
and
all
accompanying
materials
20
adopted
pursuant
to
this
section
to
the
board
for
evaluation.
21
The
board
shall
not
approve
a
proposed
district
plan
on
or
22
after
July
1,
2018
2025
.
23
Sec.
90.
Section
15J.4,
subsection
3,
paragraph
b,
24
subparagraph
(6),
Code
2020,
is
amended
to
read
as
follows:
25
(6)
The
amount
of
proposed
capital
investment
within
the
26
proposed
district
related
to
retail
businesses
in
the
proposed
27
district
does
not
exceed
fifty
percent
of
the
total
capital
28
investment
for
all
proposed
projects
in
the
proposed
district
29
plan.
For
the
purposes
of
this
subparagraph,
“retail
business”
30
means
any
business
engaged
in
the
business
of
selling
tangible
31
personal
property
or
taxable
services
at
retail
in
this
state
32
that
is
obligated
to
collect
state
sales
or
use
tax
under
33
chapter
423
.
However,
for
the
purposes
of
this
subparagraph,
34
“retail
business”
does
not
include
a
new
lessor
or
a
business
35
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engaged
in
an
activity
subject
to
tax
under
section
423.2,
1
subsection
3
.
2
Sec.
91.
Section
15J.4,
subsection
3,
paragraph
f,
Code
3
2020,
is
amended
to
read
as
follows:
4
f.
(1)
The
total
aggregate
amount
of
state
sales
tax
5
revenues
and
state
hotel
and
motel
tax
revenues
that
may
be
6
approved
by
the
board
for
remittance
to
all
municipalities
and
7
that
may
be
transferred
to
the
state
reinvestment
district
8
fund
under
section
423.2A
or
423A.6
,
and
remitted
to
all
9
municipalities
having
a
reinvestment
district
under
this
10
chapter
for
districts
approved
by
the
board
before
July
1,
11
2018,
shall
not
exceed
one
hundred
million
dollars.
12
(2)
The
total
aggregate
amount
of
state
sales
tax
revenues
13
and
state
hotel
and
motel
tax
revenues
that
may
be
approved
by
14
the
board
for
remittance
to
all
municipalities
and
that
may
15
be
transferred
to
the
state
reinvestment
district
fund
under
16
section
423.2A
or
423A.6,
and
remitted
to
all
municipalities
17
having
a
reinvestment
district
under
this
chapter
for
districts
18
approved
on
or
after
July
1,
2020,
but
before
July
1,
2025,
19
shall
not
exceed
one
hundred
million
dollars.
20
Sec.
92.
Section
15J.4,
subsections
4
and
5,
Code
2020,
are
21
amended
to
read
as
follows:
22
4.
a.
Upon
receiving
the
approval
of
the
board,
the
23
municipality
may
shall
adopt
an
ordinance
,
or
in
the
case
of
24
a
municipality
under
section
15J.2,
subsection
7,
paragraph
25
“c”
,
a
resolution,
establishing
the
district
and
shall
notify
26
the
director
of
revenue
of
the
district’s
commencement
date
27
established
by
the
board
and
the
information
required
under
28
paragraph
“b”
no
later
than
thirty
days
after
adoption
of
the
29
ordinance
or
resolution
.
30
b.
For
each
district
approved
by
the
board
on
or
after
July
31
1,
2020,
the
municipality
shall
include
in
the
notification
32
under
paragraph
“a”
and
in
the
statement
required
under
33
paragraph
“c”
all
of
the
following:
34
(1)
For
each
new
retail
establishment
under
section
15J.2,
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subsection
9,
paragraph
“b”
,
that
was
in
operation
before
1
the
establishment
of
the
district,
the
monthly
amount
of
2
sales
subject
to
the
state
sales
tax
from
the
most
recently
3
available
twelve-month
period
preceding
the
establishment
of
4
the
district.
5
(2)
For
each
new
lessor
under
section
15J.2,
subsection
8,
6
paragraph
“b”
,
that
was
in
operation
before
the
establishment
7
of
the
district,
the
monthly
amount
of
sales
subject
to
the
8
state
hotel
and
motel
tax
from
the
most
recently
available
9
twelve-month
period
preceding
the
establishment
of
the
10
district.
11
c.
The
ordinance
or
resolution
adopted
by
the
municipality
12
shall
include
the
district’s
commencement
date
and
a
detailed
13
statement
of
the
manner
in
which
the
approved
projects
to
be
14
undertaken
in
the
district
will
be
financed,
including
but
not
15
limited
to
the
financial
information
included
in
the
project
16
plan
under
subsection
2
,
paragraph
“d”
.
17
d.
Following
establishment
of
the
district,
a
municipality
18
may
use
the
moneys
deposited
in
the
municipality’s
reinvestment
19
project
fund
created
pursuant
to
section
15J.7
to
fund
the
20
development
of
those
projects
included
within
the
district
21
plan.
22
5.
A
municipality
may
amend
the
district
plan
to
add
23
or
modify
projects.
However,
a
proposed
modification
to
a
24
project
and
each
project
proposed
to
be
added
shall
first
be
25
approved
by
the
board
in
the
same
manner
as
provided
for
the
26
original
plan.
In
no
case,
however,
shall
an
amendment
to
the
27
district
plan
result
in
the
extension
of
the
commencement
date
28
established
by
the
board.
If
a
district
plan
is
amended
to
29
add
or
modify
a
project,
the
municipality
shall
,
if
necessary,
30
amend
the
ordinance
or
resolution,
as
applicable
,
if
necessary,
31
to
reflect
any
changes
to
the
financial
information
required
to
32
be
included
under
subsection
4
.
33
Sec.
93.
Section
15J.5,
subsection
1,
paragraph
b,
Code
34
2020,
is
amended
to
read
as
follows:
35
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b.
(1)
The
For
districts
established
before
July
1,
1
2020,
the
amount
of
new
state
sales
tax
revenue
for
purposes
2
of
paragraph
“a”
shall
be
the
product
of
the
amount
of
sales
3
subject
to
the
state
sales
tax
in
the
district
during
the
4
quarter
from
new
retail
establishments
times
four
percent.
5
(2)
For
districts
established
on
or
after
July
1,
2020,
the
6
amount
of
new
state
sales
tax
revenue
for
purposes
of
paragraph
7
“a”
shall
be
the
product
of
four
percent
times
the
remainder
of
8
amount
of
sales
subject
to
the
state
sales
tax
in
the
district
9
during
the
quarter
from
new
retail
establishments
minus
the
sum
10
of
the
sales
from
the
corresponding
quarter
of
the
twelve-month
11
period
determined
under
section
15J.4,
subsection
4,
paragraph
12
“b”
,
subparagraph
(1),
for
new
retail
establishments
identified
13
under
section
15J.4,
subsection
4,
paragraph
“b”
,
subparagraph
14
(1),
that
were
in
operation
at
the
end
of
the
quarter.
15
Sec.
94.
Section
15J.5,
subsection
2,
paragraph
b,
Code
16
2020,
is
amended
to
read
as
follows:
17
b.
(1)
The
For
districts
established
before
July
1,
18
2020,
the
amount
of
new
state
hotel
and
motel
tax
revenue
for
19
purposes
of
paragraph
“a”
shall
be
the
product
of
the
amount
of
20
sales
subject
to
the
state
hotel
and
motel
tax
in
the
district
21
during
the
quarter
from
new
lessors
times
the
state
hotel
and
22
motel
tax
rate
imposed
under
section
423A.3
.
23
(2)
For
districts
established
on
or
after
July
1,
2020,
the
24
amount
of
new
state
hotel
and
motel
tax
revenue
for
purposes
of
25
paragraph
“a”
shall
be
the
product
of
the
state
hotel
and
motel
26
tax
rate
imposed
under
section
423A.3
times
the
remainder
of
27
amount
of
sales
subject
to
the
state
hotel
and
motel
tax
in
the
28
district
during
the
quarter
from
new
lessors
minus
the
sum
of
29
the
sales
from
the
corresponding
quarter
of
the
twelve
month
30
period
determined
under
section
15J.4,
subsection
4,
paragraph
31
“b”
,
subparagraph
(2),
for
new
lessors
identified
under
section
32
15J.4,
subsection
4,
paragraph
“b”
,
subparagraph
(2),
that
were
33
in
operation
at
the
end
of
the
quarter.
34
Sec.
95.
Section
15J.7,
subsection
4,
paragraph
b,
Code
35
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2020,
is
amended
to
read
as
follows:
1
b.
For
the
purposes
of
this
subsection
,
“relocation”
2
means
the
closure
or
substantial
reduction
of
an
enterprise’s
3
existing
operations
in
one
area
of
the
state
and
the
initiation
4
of
substantially
the
same
operation
in
the
same
county
or
a
5
contiguous
county
in
the
state.
However,
if
the
initiation
6
of
operations
includes
an
expanded
scope
or
nature
of
the
7
enterprise’s
existing
operations,
the
new
operation
shall
8
not
be
considered
to
be
substantially
the
same
operation.
9
“Relocation”
does
not
include
an
enterprise
expanding
its
10
operations
in
another
area
of
the
state
provided
that
existing
11
operations
of
a
similar
nature
are
not
closed
or
substantially
12
reduced.
13
Sec.
96.
Section
15J.7,
subsection
6,
Code
2020,
is
amended
14
to
read
as
follows:
15
6.
Upon
dissolution
of
a
district
pursuant
to
section
15J.8
,
16
moneys
remaining
in
the
reinvestment
project
fund
that
were
17
deposited
pursuant
to
subsection
2
and
all
interest
remaining
18
in
the
fund
that
was
earned
on
such
amounts
shall
be
deposited
19
in
the
general
fund
of
the
municipality
or,
for
a
municipality
20
under
section
15J.2,
subsection
7,
paragraph
“c”
,
the
governing
21
body
shall
allocate
such
amounts
to
the
participating
cities
22
and
counties
for
deposit
in
each
city
or
county
general
fund
23
according
to
the
chapter
28E
agreement
.
24
Sec.
97.
Section
15J.8,
Code
2020,
is
amended
to
read
as
25
follows:
26
15J.8
End
of
deposits
——
district
dissolution.
27
1.
As
of
the
date
twenty
years
after
the
district’s
28
commencement
date,
the
department
shall
cease
to
deposit
state
29
sales
tax
revenues
and
state
hotel
and
motel
tax
revenues
into
30
the
district’s
account
within
the
fund,
unless
the
municipality
31
dissolves
the
district
by
ordinance
or
resolution
prior
to
that
32
date.
Following
the
expiration
of
the
twenty-year
period,
the
33
district
shall
be
dissolved
by
ordinance
or
resolution
of
the
34
municipality
adopted
within
twelve
months
of
the
conclusion
of
35
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the
twenty-year
period.
1
2.
If
the
municipality
dissolves
the
district
by
ordinance
2
or
resolution
prior
to
the
expiration
of
the
twenty-year
3
period
specified
in
subsection
1
,
the
municipality
shall
4
notify
the
director
of
revenue
of
the
dissolution
as
soon
as
5
practicable
after
adoption
of
the
ordinance
or
resolution
,
and
6
the
department
shall,
as
of
the
effective
date
of
dissolution,
7
cease
to
deposit
state
sales
tax
revenues
and
state
hotel
and
8
motel
tax
revenues
into
the
district’s
account
within
the
fund.
9
3.
Upon
request
of
the
municipality
prior
to
the
dissolution
10
of
the
district,
and
following
a
determination
by
the
board
11
that
the
amounts
of
new
state
sales
tax
revenue
and
new
state
12
hotel
and
motel
tax
revenue
deposited
in
the
municipality’s
13
reinvestment
project
fund
under
section
15J.7
are
substantially
14
lower
than
the
amounts
established
by
the
board
under
section
15
15J.4,
subsection
3,
paragraph
“e”
,
the
board
may
extend
16
the
district’s
twenty-year
period
of
time
for
depositing
and
17
receiving
revenues
under
this
chapter
by
up
to
five
additional
18
years
if
such
an
extension
is
in
the
best
interest
of
the
19
public.
20
DIVISION
X
21
COMPUTER
PERIPHERALS
22
Sec.
98.
Section
423.1,
Code
2020,
is
amended
by
adding
the
23
following
new
subsection:
24
NEW
SUBSECTION
.
10A.
“Computer
peripheral”
means
an
25
ancillary
device
connected
to
the
computer
digitally,
by
26
cable,
or
by
other
medium,
used
to
put
information
into
or
get
27
information
out
of
a
computer.
28
Sec.
99.
Section
423.3,
subsection
47,
Code
2020,
is
amended
29
to
read
as
follows:
30
47.
a.
The
sales
price
from
the
sale
or
rental
of
31
computers,
computer
peripherals,
machinery,
equipment,
32
replacement
parts,
supplies,
and
materials
used
to
construct
33
or
self-construct
computers,
computer
peripherals,
machinery,
34
equipment,
replacement
parts,
and
supplies,
if
such
items
are
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any
of
the
following:
1
(1)
Directly
and
primarily
used
in
processing
by
a
2
manufacturer.
3
(2)
Directly
and
primarily
used
to
maintain
the
integrity
4
of
the
product
or
to
maintain
unique
environmental
conditions
5
required
for
either
the
product
or
the
computers,
computer
6
peripherals,
machinery,
and
equipment
used
in
processing
by
a
7
manufacturer,
including
test
equipment
used
to
control
quality
8
and
specifications
of
the
product.
9
(3)
Directly
and
primarily
used
in
research
and
development
10
of
new
products
or
processes
of
processing.
11
(4)
Computers
and
computer
peripherals
used
in
processing
12
or
storage
of
data
or
information
by
an
insurance
company,
13
financial
institution,
or
commercial
enterprise.
14
(5)
Directly
and
primarily
used
in
recycling
or
15
reprocessing
of
waste
products.
16
(6)
Pollution-control
equipment
used
by
a
manufacturer,
17
including
but
not
limited
to
that
required
or
certified
by
an
18
agency
of
this
state
or
of
the
United
States
government.
19
b.
The
sales
price
from
the
sale
of
fuel
used
in
creating
20
heat,
power,
steam,
or
for
generating
electrical
current,
or
21
from
the
sale
of
electricity,
consumed
by
computers,
computer
22
peripherals,
machinery,
or
equipment
used
in
an
exempt
manner
23
described
in
paragraph
“a”
,
subparagraph
(1),
(2),
(3),
(5),
or
24
(6).
25
c.
The
sales
price
from
the
sale
or
rental
of
the
following
26
shall
not
be
exempt
from
the
tax
imposed
by
this
subchapter
:
27
(1)
Hand
tools.
28
(2)
Point-of-sale
equipment
,
and
computers
,
and
computer
29
peripherals
.
30
(3)
The
following
within
the
scope
of
section
427A.1,
31
subsection
1
,
paragraphs
“h”
and
“i”
:
32
(a)
Computers.
33
(b)
Computer
peripherals.
34
(b)
(c)
Machinery.
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(c)
(d)
Equipment,
including
pollution
control
equipment.
1
(d)
(e)
Replacement
parts.
2
(e)
(f)
Supplies.
3
(f)
(g)
Materials
used
to
construct
or
self-construct
the
4
following:
5
(i)
Computers.
6
(ii)
Computer
peripherals.
7
(ii)
(iii)
Machinery.
8
(iii)
(iv)
Equipment,
including
pollution
control
9
equipment.
10
(iv)
(v)
Replacement
parts.
11
(v)
(vi)
Supplies.
12
(4)
Vehicles
subject
to
registration,
except
vehicles
13
subject
to
registration
which
are
directly
and
primarily
used
14
in
recycling
or
reprocessing
of
waste
products.
15
d.
As
used
in
this
subsection
:
16
(1)
“Commercial
enterprise”
means
businesses
and
17
manufacturers
conducted
for
profit,
for-profit
and
nonprofit
18
insurance
companies,
and
for-profit
and
nonprofit
financial
19
institutions,
but
excludes
other
nonprofits
and
professions
and
20
occupations.
21
(2)
“Financial
institution”
means
as
defined
in
section
22
527.2
.
23
(3)
“Insurance
company”
means
an
insurer
organized
or
24
operating
under
chapter
508
,
514
,
515
,
518
,
518A
,
519
,
or
25
520
,
or
authorized
to
do
business
in
Iowa
as
an
insurer
or
an
26
insurance
producer
under
chapter
522B
.
27
(4)
(a)
“Manufacturer”
means
a
business
that
primarily
28
purchases,
receives,
or
holds
personal
property
of
any
29
description
for
the
purpose
of
adding
to
its
value
by
a
process
30
of
manufacturing
with
a
view
to
selling
the
property
for
gain
31
or
profit.
32
(b)
“Manufacturer”
includes
contract
manufacturers.
A
33
contract
manufacturer
is
a
manufacturer
that
otherwise
falls
34
within
the
definition
of
manufacturer,
except
that
a
contract
35
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manufacturer
does
not
sell
the
tangible
personal
property
1
the
contract
manufacturer
processes
on
behalf
of
other
2
manufacturers.
3
(c)
“Manufacturer”
does
not
include
persons
who
are
not
4
commonly
understood
as
manufacturers,
including
but
not
5
limited
to
persons
primarily
engaged
in
any
of
the
following
6
activities:
7
(i)
Construction
contracting.
8
(ii)
Repairing
tangible
personal
property
or
real
property.
9
(iii)
Providing
health
care.
10
(iv)
Farming,
including
cultivating
agricultural
products
11
and
raising
livestock.
12
(v)
Transporting
for
hire.
13
(d)
For
purposes
of
this
subparagraph:
14
(i)
“Business”
means
those
businesses
conducted
for
15
profit,
but
excludes
professions
and
occupations
and
nonprofit
16
organizations.
17
(ii)
“Manufacturing”
means
those
activities
commonly
18
understood
within
the
ordinary
meaning
of
the
term,
and
shall
19
include:
20
(A)
Refining.
21
(B)
Purifying.
22
(C)
Combining
of
different
materials.
23
(D)
Packing
of
meats.
24
(E)
Activities
subsequent
to
the
extractive
process
of
25
quarrying
or
mining,
such
as
crushing,
washing,
sizing,
or
26
blending
of
aggregate
materials.
27
(iii)
“Manufacturing”
does
not
include
activities
occurring
28
on
premises
primarily
used
to
make
retail
sales.
29
(5)
“Processing”
means
a
series
of
operations
in
which
30
materials
are
manufactured,
refined,
purified,
created,
31
combined,
or
transformed
by
a
manufacturer,
ultimately
32
into
tangible
personal
property.
Processing
encompasses
33
all
activities
commencing
with
the
receipt
or
producing
of
34
raw
materials
by
the
manufacturer
and
ending
at
the
point
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products
are
delivered
for
shipment
or
transferred
from
the
1
manufacturer.
Processing
includes
but
is
not
limited
to
2
refinement
or
purification
of
materials;
treatment
of
materials
3
to
change
their
form,
context,
or
condition;
maintenance
4
of
the
quality
or
integrity
of
materials,
components,
or
5
products;
maintenance
of
environmental
conditions
necessary
for
6
materials,
components,
or
products;
quality
control
activities;
7
and
construction
of
packaging
and
shipping
devices,
placement
8
into
shipping
containers
or
any
type
of
shipping
devices
or
9
medium,
and
the
movement
of
materials,
components,
or
products
10
until
shipment
from
the
processor.
11
(6)
“Receipt
or
producing
of
raw
materials”
means
activities
12
performed
upon
tangible
personal
property
only.
With
respect
13
to
raw
materials
produced
from
or
upon
real
estate,
the
receipt
14
or
producing
of
raw
materials
is
deemed
to
occur
immediately
15
following
the
severance
of
the
raw
materials
from
the
real
16
estate.
17
(7)
“Replacement
part”
means
tangible
personal
property
18
other
than
computers,
computer
peripherals,
machinery,
19
equipment,
or
supplies,
regardless
of
the
cost
or
useful
life
20
of
the
tangible
personal
property,
that
meets
all
of
the
21
following
conditions:
22
(a)
The
tangible
personal
property
replaces
a
component
of
23
a
computer,
computer
peripheral,
machinery,
or
equipment,
which
24
component
is
capable
of
being
separated
from
the
computer,
25
computer
peripheral,
machinery,
or
equipment.
26
(b)
The
tangible
personal
property
performs
the
same
or
27
similar
function
as
the
component
it
replaced.
28
(c)
The
tangible
personal
property
restores
the
computer,
29
computer
peripheral,
machinery,
or
equipment
to
an
operational
30
condition,
or
upgrades
or
improves
the
efficiency
of
the
31
computer,
computer
peripheral,
machinery,
or
equipment.
32
(8)
“Supplies”
means
tangible
personal
property,
other
33
than
computers,
computer
peripherals,
machinery,
equipment,
or
34
replacement
parts,
that
meets
one
of
the
following
conditions:
35
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(a)
The
tangible
personal
property
is
to
be
connected
to
1
a
computer,
computer
peripheral,
machinery,
or
equipment
and
2
requires
regular
replacement
because
the
property
is
consumed
3
or
deteriorates
during
use,
including
but
not
limited
to
saw
4
blades,
drill
bits,
filters,
and
other
similar
items
with
a
5
short
useful
life.
6
(b)
The
tangible
personal
property
is
used
in
conjunction
7
with
a
computer,
computer
peripheral,
machinery,
or
equipment
8
and
is
specially
designed
for
use
in
manufacturing
specific
9
products
and
may
be
used
interchangeably
and
intermittently
on
10
a
particular
computer,
computer
peripheral,
machine,
or
piece
11
of
equipment,
including
but
not
limited
to
jigs,
dies,
tools,
12
and
other
similar
items.
13
(c)
The
tangible
personal
property
comes
into
physical
14
contact
with
other
tangible
personal
property
used
in
15
processing
and
is
used
to
assist
with
or
maintain
conditions
16
necessary
for
processing,
including
but
not
limited
to
cutting
17
fluids,
oils,
coolants,
lubricants,
and
other
similar
items
18
with
a
short
useful
life.
19
(d)
The
tangible
personal
property
is
directly
and
20
primarily
used
in
an
activity
described
in
paragraph
“a”
,
21
subparagraphs
(1)
through
(6),
including
but
not
limited
to
22
prototype
materials
and
testing
materials.
23
Sec.
100.
RESCISSION
OF
ADMINISTRATIVE
RULES.
24
1.
The
following
Iowa
administrative
rules
are
rescinded
as
25
of
July
1,
2020:
26
a.
701
Iowa
administrative
code,
rule
18.34,
subrule
1,
27
paragraph
“b”,
subparagraph
(1).
28
b.
701
Iowa
administrative
code,
rule
18.45,
subrule
1,
29
definition
of
“computer”.
30
c.
701
Iowa
administrative
code,
rule
18.58,
subrule
1,
31
definition
of
“computer”.
32
d.
701
Iowa
administrative
code,
rule
230.14,
subrule
2,
33
paragraph
“a”.
34
2.
As
soon
as
practicable
after
July
1,
2020,
the
Iowa
35
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administrative
code
editor
shall
remove
the
language
of
the
1
Iowa
administrative
rules
referenced
in
subsection
1
of
this
2
section
from
the
Iowa
administrative
code.
3
DIVISION
XI
4
SCHOOL
TUITION
ORGANIZATION
TAX
CREDIT
——
CORPORATIONS
5
Sec.
101.
Section
422.33,
subsection
28,
Code
2020,
is
6
amended
to
read
as
follows:
7
28.
The
taxes
imposed
under
this
division
shall
be
reduced
8
by
a
school
tuition
organization
tax
credit
allowed
under
9
section
422.11S
.
The
maximum
amount
of
tax
credits
that
10
may
be
approved
under
this
subsection
for
a
tax
year
equals
11
twenty-five
percent
of
the
school
tuition
organization’s
tax
12
credits
that
may
be
approved
pursuant
to
section
422.11S,
13
subsection
8
,
for
a
tax
year.
14
DIVISION
XII
15
BROADBAND
INFRASTRUCTURE
TAXATION
16
Sec.
102.
Section
422.7,
Code
2020,
is
amended
by
adding
the
17
following
new
subsection:
18
NEW
SUBSECTION
.
18.
a.
Subtract,
to
the
extent
included,
19
the
amount
of
a
federal,
state,
or
local
grant
provided
to
20
a
communications
service
provider,
if
the
grant
is
used
to
21
install
broadband
infrastructure
that
facilitates
broadband
22
service
in
targeted
service
areas
at
or
above
the
download
and
23
upload
speeds.
24
b.
As
used
in
this
subsection,
“broadband
infrastructure”
,
25
“communications
service
provider”
,
and
“targeted
service
area”
26
mean
the
same
as
defined
in
section
8B.1,
respectively.
27
Sec.
103.
Section
422.35,
Code
2020,
is
amended
by
adding
28
the
following
new
subsection:
29
NEW
SUBSECTION
.
26.
a.
Subtract,
to
the
extent
included,
30
the
amount
of
a
federal,
state,
or
local
grant
provided
to
31
a
communications
service
provider,
if
the
grant
is
used
to
32
install
broadband
infrastructure
that
facilitates
broadband
33
service
in
targeted
service
areas
at
or
above
the
download
and
34
upload
speeds.
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b.
As
used
in
this
subsection,
“broadband
infrastructure”
,
1
“communications
service
provider”
,
and
“targeted
service
area”
2
mean
the
same
as
defined
in
section
8B.1,
respectively.
3
Sec.
104.
REFUNDS.
Refunds
of
taxes,
interest,
or
penalties
4
that
arise
from
claims
resulting
from
the
enactment
of
this
5
division
of
this
Act,
in
the
tax
year
beginning
January
6
1,
2019,
but
before
January
1,
2020,
shall
not
be
allowed
7
unless
refund
claims
are
filed
prior
to
October
1,
2020,
8
notwithstanding
any
other
provision
of
law
to
the
contrary.
9
Sec.
105.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
10
deemed
of
immediate
importance,
takes
effect
upon
enactment.
11
Sec.
106.
RETROACTIVE
APPLICABILITY.
This
division
of
this
12
Act
applies
retroactively
to
January
1,
2019,
and
applies
to
13
tax
years
beginning
on
or
after
that
date.
14
DIVISION
XIII
15
LOCAL
ASSESSORS
16
Sec.
107.
Section
441.6,
subsection
2,
Code
2020,
is
amended
17
to
read
as
follows:
18
2.
Upon
receipt
of
the
report
of
the
examining
board,
the
19
chairperson
of
the
conference
board
shall
by
written
notice
20
call
a
meeting
of
the
conference
board
to
appoint
an
assessor.
21
The
meeting
shall
be
held
not
later
than
seven
days
after
the
22
receipt
of
the
report
of
the
examining
board
by
the
conference
23
board.
At
the
meeting,
the
conference
board
shall
appoint
an
24
assessor
from
the
register
of
eligible
candidates.
However,
25
if
a
special
examination
has
not
been
conducted
previously
for
26
the
same
vacancy,
the
conference
board
may
request
the
director
27
of
revenue
to
hold
a
special
examination
pursuant
to
section
28
441.7
.
The
chairperson
of
the
conference
board
shall
give
29
written
notice
to
the
director
of
revenue
of
the
appointment
30
and
its
effective
date
within
ten
days
of
the
decision
of
the
31
board.
32
Sec.
108.
Section
441.6,
Code
2020,
is
amended
by
adding
the
33
following
new
subsection:
34
NEW
SUBSECTION
.
3.
The
appointee
selected
by
the
conference
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board
under
subsection
2
shall
not
assume
the
office
of
city
1
or
county
assessor
until
such
appointment
is
confirmed
by
2
the
director
of
revenue.
If
the
director
of
revenue
rejects
3
the
appointment,
the
examining
board
shall
conduct
a
new
4
examination
and
submit
a
new
report
to
the
conference
board
5
under
subsection
1.
The
director
of
revenue
shall
adopt
rules
6
pursuant
to
chapter
17A
to
implement
and
administer
this
7
subsection.
8
Sec.
109.
Section
441.17,
subsection
2,
Code
2020,
is
9
amended
to
read
as
follows:
10
2.
Cause
to
be
assessed,
in
accordance
with
section
441.21
,
11
all
the
property
in
the
assessor’s
county
or
city,
except
12
property
exempt
from
taxation,
or
the
assessment
of
which
is
13
otherwise
provided
for
by
law.
However,
an
assessor
or
deputy
14
assessor
shall
not
personally
assess
a
property
if
the
person
15
or
a
member
of
the
person’s
immediate
family
owns
the
property,
16
has
a
financial
interest
in
the
property,
or
has
a
financial
17
interest
in
the
entity
that
owns
the
property.
The
director
of
18
revenue
shall
adopt
rules
pursuant
to
chapter
17A
to
implement
19
and
administer
this
subsection.
20
Sec.
110.
Section
441.41,
Code
2020,
is
amended
to
read
as
21
follows:
22
441.41
Legal
counsel.
23
In
the
case
of
cities
having
an
assessor,
the
city
legal
24
department
shall
represent
the
assessor
and
board
of
review
25
in
all
litigation
dealing
with
assessments.
In
the
case
of
26
counties,
the
county
attorney
shall
represent
the
assessor
and
27
board
of
review
in
all
litigation
dealing
with
assessments.
28
Any
taxing
district
interested
in
the
taxes
received
from
such
29
assessments
may
be
represented
by
an
attorney
and
shall
be
30
required
to
appear
by
attorney
upon
written
request
of
the
31
assessor
to
the
presiding
officer
of
any
such
taxing
district.
32
The
Subject
to
review
and
prior
approval
by
either
the
city
33
legal
department
in
the
case
of
a
city
or
the
county
attorney
34
in
the
case
of
a
county,
the
conference
board
may
employ
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special
counsel
to
assist
the
city
legal
department
or
county
1
attorney
as
the
case
may
be.
2
DIVISION
XIV
3
PAYCHECK
PROTECTION
PROGRAM
(PPP)
4
Sec.
111.
IOWA
NET
INCOME
EXCLUSION
FOR
FEDERAL
PAYCHECK
5
PROTECTION
PROGRAM
LOAN
FORGIVENESS
FOR
CERTAIN
FISCAL-YEAR
6
FILERS
IN
TAX
YEAR
2019.
Notwithstanding
any
other
provision
7
of
law
to
the
contrary,
for
any
tax
year
beginning
on
or
after
8
January
1,
2019,
and
ending
after
March
27,
2020,
Pub.
L.
No.
9
116-136,
§1106(i),
applies
in
computing
net
income
for
state
10
tax
purposes
under
section
422.7
or
422.35.
11
Sec.
112.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
12
deemed
of
immediate
importance,
takes
effect
upon
enactment.
13
DIVISION
XV
14
FOOD
BANKS
——
SALES
TAX
EXEMPTION
15
Sec.
113.
Section
423.3,
Code
2020,
is
amended
by
adding
the
16
following
new
subsection:
17
NEW
SUBSECTION
.
107.
The
sales
price
from
the
sale
or
18
rental
of
tangible
personal
property
or
specified
digital
19
products,
or
services
furnished,
to
a
nonprofit
food
bank,
20
which
tangible
personal
property,
specified
digital
products,
21
or
services
are
to
be
used
by
the
nonprofit
food
bank
for
a
22
charitable
purpose.
For
purposes
of
this
subsection,
“nonprofit
23
food
bank”
means
an
organization
organized
under
chapter
504
24
and
qualifying
under
section
501(c)(3)
of
the
Internal
Revenue
25
Code
as
an
organization
exempt
from
federal
income
tax
under
26
section
501(a)
of
the
Internal
Revenue
Code
that
maintains
27
an
established
operation
involving
the
provision
of
food
or
28
edible
commodities
or
the
products
thereof
on
a
regular
basis
29
to
persons
in
need
or
to
food
pantries,
soup
kitchens,
hunger
30
relief
centers,
or
other
food
or
feeding
centers
that,
as
an
31
integral
part
of
their
normal
activities,
provide
meals
or
food
32
on
a
regular
basis
to
persons
in
need.
33
DIVISION
XVI
34
PRO
RATA
SHARE
OF
ENTITY-LEVEL
INCOME
TAX
PAID
BY
SHAREHOLDERS
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OR
BENEFICIARIES
1
Sec.
114.
Section
422.8,
subsection
1,
Code
2020,
is
amended
2
to
read
as
follows:
3
1.
a.
The
amount
of
income
tax
paid
to
another
state
or
4
foreign
country
by
a
resident
taxpayer
of
this
state
on
income
5
derived
from
sources
outside
of
Iowa
shall
be
allowed
as
a
6
credit
against
the
tax
computed
under
this
chapter
,
except
that
7
the
credit
shall
not
exceed
what
the
amount
of
the
Iowa
tax
8
would
have
been
on
the
same
income
which
was
taxed
by
the
other
9
state
or
foreign
country.
The
limitation
on
this
credit
shall
10
be
computed
according
to
the
following
formula:
Income
earned
11
outside
of
Iowa
and
taxed
by
another
state
or
foreign
country
12
shall
be
divided
by
the
total
income
of
the
resident
taxpayer
13
of
Iowa.
This
quotient
multiplied
times
by
the
net
Iowa
tax
as
14
determined
on
the
total
income
of
the
taxpayer
as
if
entirely
15
earned
in
Iowa
shall
be
the
maximum
tax
credit
against
the
Iowa
16
net
tax.
17
b.
(1)
For
purposes
of
paragraph
“a”
,
a
resident
partner
18
of
an
entity
taxed
as
a
partnership
for
federal
tax
purposes,
19
a
resident
shareholder
of
an
S
corporation,
or
a
resident
20
beneficiary
of
an
estate
or
trust
shall
be
deemed
to
have
paid
21
the
resident
partner’s,
resident
shareholder’s,
or
resident
22
beneficiary’s
pro
rata
share
of
entity-level
income
tax
paid
23
by
the
partnership,
S
corporation,
estate,
or
trust
to
another
24
state
or
foreign
country
on
income
that
is
also
subject
to
25
tax
under
this
division,
but
only
if
the
entity
provides
the
26
resident
partner,
resident
shareholder,
or
resident
beneficiary
27
a
statement
that
documents
the
resident
partner’s,
resident
28
shareholder’s,
or
resident
beneficiary’s
share
of
the
income
29
derived
in
the
other
state
or
foreign
country,
the
income
tax
30
liability
of
the
entity
in
that
state
or
foreign
country,
and
31
the
income
tax
paid
by
the
entity
to
that
state
or
foreign
32
country.
33
(2)
For
purposes
of
paragraph
“a”
,
a
resident
shareholder
of
34
a
regulated
investment
company
shall
be
deemed
to
have
paid
the
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shareholder’s
pro
rata
share
of
entity-level
income
tax
paid
by
1
the
regulated
investment
company
to
another
state
or
foreign
2
country
and
treated
as
paid
by
its
shareholders
pursuant
to
3
section
853
of
the
Internal
Revenue
Code,
but
only
if
the
4
regulated
investment
company
provides
the
resident
shareholder
5
a
statement
that
documents
the
resident
shareholder’s
share
of
6
the
income
derived
in
the
other
state
or
foreign
country,
the
7
income
tax
liability
of
the
regulated
investment
company
in
8
that
state
or
foreign
country,
and
the
income
tax
paid
by
the
9
regulated
investment
company
to
that
state
or
foreign
country.
10
Sec.
115.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
11
deemed
of
immediate
importance,
takes
effect
upon
enactment.
12
Sec.
116.
RETROACTIVE
APPLICABILITY.
This
division
of
this
13
Act
applies
retroactively
to
January
1,
2020,
for
tax
years
14
beginning
on
or
after
that
date.
15
DIVISION
XVII
16
IOWA
SMALL
BUSINESS
RELIEF
GRANT
PROGRAM
17
Sec.
117.
Section
422.7,
Code
2020,
is
amended
by
adding
the
18
following
new
subsection:
19
NEW
SUBSECTION
.
59.
Subtract,
to
the
extent
included,
20
the
amount
of
any
financial
assistance
grant
provided
to
an
21
eligible
small
business
by
the
economic
development
authority
22
under
the
Iowa
small
business
relief
grant
program
created
23
during
calendar
year
2020
to
provide
financial
assistance
to
24
eligible
small
businesses
economically
impacted
by
the
COVID-19
25
pandemic.
26
Sec.
118.
Section
422.35,
Code
2020,
is
amended
by
adding
27
the
following
new
subsection:
28
NEW
SUBSECTION
.
26.
Subtract,
to
the
extent
included,
29
the
amount
of
any
financial
assistance
grant
provided
to
an
30
eligible
small
business
by
the
economic
development
authority
31
under
the
Iowa
small
business
relief
grant
program
created
32
during
calendar
year
2020
to
provide
financial
assistance
to
33
eligible
small
businesses
economically
impacted
by
the
COVID-19
34
pandemic.
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Sec.
119.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
1
deemed
of
immediate
importance,
takes
effect
upon
enactment.
2
Sec.
120.
RETROACTIVE
APPLICABILITY.
This
division
of
this
3
Act
applies
retroactively
to
March
23,
2020,
for
tax
years
4
ending
on
or
after
that
date.
5
DIVISION
XVIII
6
PORT
AUTHORITIES
7
Sec.
121.
Section
28J.1,
subsections
1
and
3,
Code
2020,
are
8
amended
to
read
as
follows:
9
1.
“Authorized
purposes”
means
an
activity
that
enhances,
10
fosters,
aids,
provides,
or
promotes
transportation,
11
infrastructure,
utility
service,
flood
and
erosion
control,
12
economic
development,
housing,
recreation,
education,
13
governmental
operations,
culture,
or
research
within
the
14
jurisdiction
of
a
port
authority.
15
3.
“City”
means
the
same
as
defined
in
section
362.2
,
and
16
also
includes
a
city
enterprise
as
defined
in
section
384.24
.
17
Sec.
122.
Section
28J.1,
subsection
6,
paragraphs
d,
f,
and
18
g,
Code
2020,
are
amended
to
read
as
follows:
19
d.
The
cost
of
machinery,
furnishings,
equipment,
financing
20
charges,
interest
prior
to
and
during
construction
and
for
21
no
more
than
twelve
months
after
completion
of
construction,
22
engineering,
architectural
services,
technical
services,
23
preliminary
reports,
property
valuations,
consequential
24
damages
or
costs,
provisions
for
contingencies,
supervision,
25
inspection,
testing,
and
expenses
of
research
and
development
26
with
respect
to
a
facility.
27
f.
The
interest
upon
the
revenue
bonds
,
and
pledge
28
orders
,
loan
agreements,
lease
contracts,
and
certificates
of
29
participation
in
or
other
participatory
interests
or
evidences
30
of
any
obligation
under
a
loan
agreement
or
lease
contract,
31
during
the
period
or
estimated
period
of
construction
and
32
for
twelve
months
thereafter,
or
for
twelve
months
after
the
33
acquisition
date,
and
upon
reserve
funds
as
the
port
authority
34
deems
advisable
in
connection
with
a
facility
and
the
issuance
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of
port
authority
revenue
bonds
,
and
pledge
orders
,
loan
1
agreements,
lease
contracts,
and
certificates
of
participation
2
in
or
other
participatory
interests
or
evidences
of
any
3
obligation
under
a
loan
agreement
or
lease
contract
.
4
g.
The
costs
of
issuance
of
port
authority
revenue
bonds
,
5
and
pledge
orders
,
loan
agreements,
lease
contracts,
and
6
certificates
of
participation
in
or
other
participatory
7
interests
or
evidences
of
any
obligations
under
a
loan
8
agreement
or
lease
contract
.
9
Sec.
123.
Section
28J.1,
subsections
7
and
8,
Code
2020,
are
10
amended
to
read
as
follows:
11
7.
“Facility”
or
“port
authority
facility”
means
any
12
public
works
project,
intermodal
freight
or
transportation
13
facility,
project
for
which
tax-exempt
financing
is
authorized
14
by
the
Internal
Revenue
Code,
and
real
or
personal
property
15
or
improvements
owned,
leased,
constructed,
or
otherwise
16
controlled
or
financed
by
or
for
a
port
authority
and
that
17
is
related
to
or
in
furtherance
of
one
or
more
authorized
18
purposes.
19
8.
“Governmental
agency”
means
a
department,
division,
20
or
other
unit
of
state
government
of
this
state
or
any
other
21
state,
city,
county,
any
political
subdivision,
township,
or
22
other
governmental
subdivision,
or
any
city
utility,
any
other
23
public
corporation
,
special
purpose
district,
authority,
or
24
agency
created
under
the
laws
of
this
state,
any
other
state,
25
the
United
States,
or
any
department
or
agency
thereof,
or
any
26
agency,
commission,
or
authority
established
pursuant
to
an
27
interstate
compact
or
agreement
or
combination
thereof.
28
Sec.
124.
Section
28J.1,
Code
2020,
is
amended
by
adding
the
29
following
new
subsection:
30
NEW
SUBSECTION
.
8A.
“Net
revenues”
means
revenues
less
31
operating
expenses.
32
Sec.
125.
Section
28J.1,
subsections
11,
12,
and
14,
Code
33
2020,
are
amended
to
read
as
follows:
34
11.
“Political
subdivision”
means
a
city,
county,
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city-county
consolidation,
or
multicounty
consolidation,
or
1
combination
thereof
municipality
as
defined
in
section
16.151
.
2
12.
“Political
subdivisions
comprising
the
port
authority”
3
means
the
each
political
subdivisions
subdivision
which
created
4
or
participated
in
the
creation
of
the
port
authority
under
5
section
28J.2
,
or
which
joined
an
existing
port
authority
under
6
section
28J.4
.
7
14.
“Port
authority
revenue
bonds”
or
“revenue
bonds”
means
8
revenue
bonds
and
revenue
refunding
bonds
issued
pursuant
to
9
section
28J.21
.
10
Sec.
126.
Section
28J.1,
Code
2020,
is
amended
by
adding
the
11
following
new
subsection:
12
NEW
SUBSECTION
.
15A.
“Public
works
project”
means
a
13
project
of
a
type
that
a
political
subdivision
is
authorized
14
to
undertake
as
otherwise
provided
by
law,
including
15
but
not
limited
to
public
roads
and
other
transportation
16
infrastructure,
utility
systems
such
as
water
treatment
17
facilities
and
sewage
treatment
facilities,
or
a
project
as
18
defined
in
section
384.80.
19
Sec.
127.
Section
28J.1,
subsection
16,
Code
2020,
is
20
amended
to
read
as
follows:
21
16.
“Revenues”
means
rental
rents,
fees
,
income,
rates,
22
tolls,
receipts,
and
other
charges
or
revenues
received
by
a
23
port
authority
or
derived
from
the
operations
of
a
facility
24
or
for
the
use
or
services
of
a
facility,
a
gift
or
grant
25
received
with
respect
to
a
facility,
moneys
received
with
26
respect
to
the
lease,
sublease,
sale,
including
installment
27
sale
or
conditional
sale,
or
other
disposition
of
a
facility,
28
moneys
received
in
repayment
of
and
for
interest
on
any
29
loans
made
by
the
port
authority
to
a
person
or
governmental
30
agency,
proceeds
of
port
authority
revenue
bonds
for
payment
31
of
principal,
premium,
or
interest
on
the
bonds
authorized
32
by
the
port
authority,
proceeds
or
borrowings
under
port
33
authority
loan
agreements
for
payment
of
principal,
premium,
34
or
interest
on
the
port
authority
obligations
thereunder,
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proceeds
or
borrowings
under
lease
contracts
for
the
payment
of
1
lease
payments
thereunder,
proceeds
under
any
certificates
of
2
participation
in
or
other
participatory
interests
or
evidences
3
of
any
obligations
under
a
loan
agreement
or
lease
contract,
4
proceeds
from
any
insurance,
condemnation,
or
guarantee
5
pertaining
to
the
financing
of
the
facility,
and
income
and
6
profit
from
the
investment
of
the
proceeds
of
port
authority
7
revenue
bonds
,
proceeds,
or
borrowings
under
loan
agreements,
8
lease
contracts,
or
proceeds
of
certificates
of
participation
9
in
or
other
participatory
interests
or
evidences
of
any
10
obligation
under
any
loan
agreement
or
lease
contract
or
of
any
11
revenues.
12
Sec.
128.
Section
28J.2,
subsection
1,
Code
2020,
is
amended
13
to
read
as
follows:
14
1.
Two
One
or
more
political
subdivisions
may
by
resolution
15
create
a
port
authority
under
this
chapter
by
resolution
16
anywhere
in
this
state,
regardless
of
proximity
to
a
body
of
17
water
.
If
a
proposal
to
create
a
port
authority
receives
a
18
favorable
majority
of
the
members
of
the
elected
legislative
19
body
of
each
of
the
political
subdivisions,
the
port
authority
20
is
created
at
the
time
provided
in
the
resolution.
The
21
jurisdiction
of
a
port
authority
includes
the
territory
22
described
in
section
28J.8
.
23
Sec.
129.
Section
28J.2,
Code
2020,
is
amended
by
adding
the
24
following
new
subsection:
25
NEW
SUBSECTION
.
5.
A
port
authority
is
an
entity
separate
26
from
the
political
subdivisions
comprising
the
port
authority.
27
The
powers
granted
to
the
port
authority
pursuant
to
this
28
chapter
are
in
addition
to
other
powers,
and
constitute
29
independent
powers
that
may
be
exercised
by
the
port
authority
30
whether
or
not
the
political
subdivisions
comprising
the
31
port
authority
have
or
may
exercise
any
of
those
powers
32
individually.
33
Sec.
130.
Section
28J.3,
subsection
1,
Code
2020,
is
amended
34
to
read
as
follows:
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1.
The
political
subdivisions
comprising
a
port
authority
1
may
appropriate
and
expend
public
funds
and
make
contributions
2
to
the
port
authority
to
finance
or
subsidize
the
operation
and
3
authorized
purposes
of
the
port
authority
and
pay
the
costs
4
and
expenses
incurred
by
the
port
authority
in
carrying
out
5
any
operations
or
authorized
purposes
of
the
port
authority
.
6
Political
subdivisions
comprising
the
port
authority
may
7
enter
into
agreements
with
each
other
or
the
port
authority
8
providing
for
the
contributions
to
the
port
authority
to
be
9
made
by
each
of
the
political
subdivisions
and
providing
for
10
the
obligations
of
each
of
the
political
subdivisions
to
pay,
11
finance,
or
subsidize
the
costs
and
expenses
incurred
by
the
12
port
authority.
Political
subdivisions
comprising
the
port
13
authority
may,
by
resolution,
authorize
and
appropriate
funds
14
for
any
contribution,
payment,
or
financing
required
to
be
15
made
under
such
agreement
by
the
use
of
any
method
available
16
to
government
agencies
for
providing
funds
or
financing
under
17
section
28J.16.
A
port
authority
shall
control
tax
revenues
18
allocated
to
the
facilities
the
port
authority
administers
and
19
all
revenues
derived
from
the
operation
of
the
port
authority,
20
the
sale
of
its
property,
interest
on
investments,
or
from
any
21
other
source
related
to
the
port
authority.
22
Sec.
131.
Section
28J.5,
subsections
1,
2,
and
5,
Code
2020,
23
are
amended
to
read
as
follows:
24
1.
A
port
authority
created
pursuant
to
section
28J.2
shall
25
be
governed
by
a
board
of
directors.
Members
of
a
board
of
26
directors
of
a
port
authority
created
by
two
or
more
political
27
subdivisions
shall
be
divided
among
the
political
subdivisions
28
comprising
the
port
authority
in
such
proportions
as
the
29
political
subdivisions
may
agree
and
shall
be
appointed
by
the
30
respective
political
subdivision’s
elected
legislative
body.
31
Members
of
a
board
of
directors
of
a
port
authority
created
by
32
one
political
subdivision
shall
be
appointed
by
the
political
33
subdivision’s
governing
body.
34
2.
The
number
of
directors
comprising
the
board
of
a
port
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authority
created
by
two
or
more
political
subdivisions
shall
1
be
determined
by
agreement
between
the
political
subdivisions
2
comprising
the
port
authority
,
and
which
.
The
number
of
3
directors
comprising
the
board
of
directors
of
a
port
authority
4
created
by
one
political
subdivision
shall
consist
of
the
5
number
of
directors
the
political
subdivision
considers
6
necessary.
The
number
may
be
changed
by
resolution
of
each
7
of
the
political
subdivisions
comprising
the
port
authority
8
and
in
accordance
with
any
agreement
between
the
political
9
subdivisions
comprising
the
port
authority
.
10
5.
The
board
may
provide
procedures
for
the
removal
of
a
11
director
who
fails
to
attend
three
consecutive
regular
meetings
12
of
the
board.
If
a
director
is
so
removed,
a
successor
shall
13
be
appointed
for
the
remaining
term
of
the
removed
director
in
14
the
same
manner
provided
for
the
original
appointment.
The
15
appointing
body
Any
political
subdivisions
comprising
the
port
16
authority
may
at
any
time
remove
a
director
appointed
by
it
for
17
misfeasance,
nonfeasance,
or
malfeasance
in
office
and
appoint
18
a
successor
for
the
remaining
term
of
the
removed
director
in
19
the
same
manner
as
provided
for
by
the
original
appointment
.
20
Sec.
132.
Section
28J.8,
subsection
1,
Code
2020,
is
amended
21
to
read
as
follows:
22
1.
The
area
of
jurisdiction
of
a
port
authority
shall
23
include
all
of
the
territory
of
the
port
authority
facility
and
24
of
the
political
subdivisions
comprising
the
port
authority
25
and,
if
the
port
authority
owns
or
leases
a
railroad
line
or
26
airport,
the
territory
on
which
the
railroad’s
line,
terminals,
27
and
related
facilities
or
the
airport’s
runways,
terminals,
28
and
related
facilities
are
located,
regardless
of
whether
the
29
territory
is
located
in
the
political
subdivisions
comprising
30
the
port
authority.
31
Sec.
133.
Section
28J.9,
subsections
4,
8,
and
10,
Code
32
2020,
are
amended
to
read
as
follows:
33
4.
Acquire,
construct,
furnish,
equip,
maintain,
repair,
34
sell,
exchange,
lease,
lease
with
an
option
to
purchase,
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convey
interests
in
real
or
personal
property,
and
operate
any
1
property
of
the
port
authority
within
or
outside
the
territory
2
of
the
political
subdivisions
comprising
the
port
authority
in
3
furtherance
of
any
authorized
purpose,
including
in
connection
4
with
transportation,
recreational,
governmental
operations,
or
5
cultural
activities
in
furtherance
of
an
authorized
purpose
.
6
8.
Issue
port
authority
revenue
bonds
beyond
the
limit
7
of
bonded
indebtedness
provided
by
law,
payable
solely
from
8
revenues
as
provided
in
section
28J.21
,
and
enter
into
loan
9
agreements
and
lease
contracts
as
provided
in
section
28J.21A,
10
for
the
purpose
of
providing
funds
to
pay
the
costs
of
any
11
facility
or
facilities
of
the
port
authority
or
parts
thereof.
12
10.
Enjoy
and
possess
the
same
legislative
and
executive
13
rights,
privileges,
and
powers
granted
cities
under
chapter
14
chapters
28F,
364
,
and
384,
and
counties
under
chapter
331
,
15
including
the
exercise
of
police
power
but
excluding
the
power
16
to
levy
taxes.
17
Sec.
134.
Section
28J.11,
subsection
2,
Code
2020,
is
18
amended
to
read
as
follows:
19
2.
Impair
the
powers
of
a
political
subdivision
to
develop
20
or
improve
a
port
and
terminal
authority
facility
except
as
21
restricted
by
section
28J.15
.
22
Sec.
135.
Section
28J.13,
Code
2020,
is
amended
to
read
as
23
follows:
24
28J.13
Annual
budget
——
use
of
rents
and
charges.
25
The
board
shall
annually
prepare
a
budget
for
the
port
26
authority.
Revenues
received
by
the
port
authority
shall
be
27
used
for
the
general
expenses
of
the
port
authority
and
to
28
pay
interest,
amortization,
and
retirement
charges
on
,
and
29
principal
of,
money
borrowed
and
to
make
payments
under
lease
30
contracts
.
Except
as
provided
in
section
28J.26
,
if
there
31
remains,
at
the
end
of
any
fiscal
year,
a
surplus
of
such
funds
32
after
providing
for
the
above
uses,
the
board
shall
pay
such
33
surplus
into
the
general
funds
of
the
political
subdivisions
34
comprising
the
port
authority
as
agreed
to
by
the
subdivisions.
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Sec.
136.
Section
28J.15,
Code
2020,
is
amended
to
read
as
1
follows:
2
28J.15
Limitation
on
certain
powers
of
political
3
subdivisions.
4
A
political
subdivision
creating
or
participating
in
the
5
creation
of
a
port
authority
in
accordance
with
section
28J.2
6
shall
not,
during
the
time
the
port
authority
is
in
existence,
7
exercise
the
rights
and
powers
provided
in
chapters
28A
,
28K
,
8
and
384
relating
to
the
political
subdivision’s
authority
over
9
a
port,
wharf,
dock,
harbor
,
or
other
facility
substantially
10
similar
to
that
political
subdivision’s
authority
under
a
port
11
authority
granted
under
this
chapter
,
except
as
provided
in
12
section
28J.2
.
13
Sec.
137.
Section
28J.16,
subsection
1,
paragraphs
a
and
c,
14
Code
2020,
are
amended
to
read
as
follows:
15
a.
A
port
authority
may
charge,
alter,
and
collect
rental
16
rents,
fees
,
or
other
charges
or
revenues
for
the
use
or
17
services
of
any
port
authority
facility
and
contract
for
the
18
use
or
services
of
a
facility,
and
fix
the
terms,
conditions,
19
rental
rents,
fees,
or
other
charges
for
the
use
or
services.
20
c.
The
rental
rents,
fees
,
or
other
charges
,
and
other
21
revenues
of
a
port
authority
shall
not
be
subject
to
22
supervision
or
regulation
by
any
other
authority,
commission,
23
board,
bureau,
or
governmental
agency
of
the
state
and
the
24
contract
may
provide
for
acquisition
of
all
or
any
part
of
25
the
port
authority
facility
for
such
consideration
payable
26
over
the
period
of
the
contract
or
otherwise
as
the
port
27
authority
determines
to
be
appropriate,
but
subject
to
the
28
provisions
of
any
resolution
authorizing
the
issuance
of
port
29
authority
revenue
bonds
,
loan
agreements,
lease
contracts,
30
or
certificates
of
participation
in
or
other
participatory
31
interests
or
evidences
of
any
obligations
under
a
loan
32
agreement
or
lease
contract,
or
of
any
trust
agreement
securing
33
the
bonds
,
loan
agreements,
lease
contracts,
or
certificates
of
34
participation
in
or
other
participatory
interests
or
evidences
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of
any
obligation
under
a
loan
agreement
or
lease
contract
.
1
Sec.
138.
Section
28J.16,
subsection
2,
paragraph
a,
Code
2
2020,
is
amended
to
read
as
follows:
3
a.
A
governmental
agency
may
cooperate
with
the
port
4
authority
in
the
acquisition
,
operation,
or
construction
of
a
5
port
authority
facility
and
shall
enter
into
such
agreements
6
with
the
port
authority
as
may
be
appropriate,
which
shall
7
provide
for
contributions
by
the
parties
in
a
proportion
as
may
8
be
agreed
upon
and
other
terms
as
may
be
mutually
satisfactory
9
to
the
parties
including
the
authorization
of
the
construction
10
of
the
facility
by
one
of
the
parties
acting
as
agent
for
all
11
of
the
parties
and
the
ownership
,
operation,
and
control
of
12
the
facility
by
the
port
authority
to
the
extent
necessary
or
13
appropriate.
14
Sec.
139.
Section
28J.17,
subsection
1,
paragraph
a,
Code
15
2020,
is
amended
to
read
as
follows:
16
a.
A
port
authority
may
enter
into
a
contract
or
other
17
arrangement
with
a
person,
railroad,
utility
company,
18
corporation,
governmental
agency
including
sewerage,
drainage,
19
conservation,
conservancy,
or
other
improvement
districts
in
20
this
or
other
states,
or
the
governments
or
agencies
of
foreign
21
countries
as
may
be
necessary
or
convenient
for
the
exercise
22
of
the
powers
granted
by
this
chapter
.
The
port
authority
23
may
purchase,
lease,
or
acquire
land
or
other
property
in
24
any
county
of
this
state
and
in
adjoining
states
for
the
25
accomplishment
of
authorized
purposes
of
the
port
authority,
or
26
for
the
improvement
of
the
harbor
and
port
authority
facilities
27
over
which
the
port
authority
may
have
jurisdiction
including
28
development
of
port
authority
facilities
in
adjoining
states.
29
The
authority
granted
in
this
section
to
enter
into
contracts
30
or
other
arrangements
with
the
federal
government
includes
the
31
power
to
enter
into
any
contracts,
arrangements,
or
agreements
32
that
may
be
necessary
to
hold
and
save
harmless
the
United
33
States
from
damages
due
to
the
construction
and
maintenance
by
34
the
United
States
of
work
the
United
States
undertakes.
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Sec.
140.
Section
28J.19,
Code
2020,
is
amended
to
read
as
1
follows:
2
28J.19
Property
tax
exemption.
3
A
port
authority
shall
be
exempt
from
and
shall
not
be
4
required
to
pay
taxes
on
real
property
that
is
purchased
by
a
5
port
authority
or
real
property
belonging
to
a
port
authority
6
that
is
used
exclusively
for
an
authorized
purpose
,
as
provided
7
in
section
427.1,
subsection
34
.
8
Sec.
141.
NEW
SECTION
.
28J.21A
Loan
agreements
——
lease
9
contracts
——
trust
agreements.
10
1.
Definitions.
As
used
in
this
section,
unless
the
context
11
otherwise
requires:
12
a.
“Lease
contract”
includes
any
certificates
of
13
participation
or
other
participatory
interests
in
the
lease
14
contract
or
obligations
arising
out
of
the
lease
contract.
15
b.
“Loan
agreement”
includes
any
notes,
certificates,
or
any
16
other
participatory
interests
issued
to
evidence
the
parties’
17
obligations
arising
out
of
the
loan
agreement.
18
2.
Loan
agreements.
A
port
authority
may
enter
into
loan
19
agreements
to
borrow
money
to
pay
the
costs
of
any
facility,
or
20
parts
thereof,
or
to
refund
other
obligations
which
are
payable
21
from
the
net
revenues
of
the
port
authority
at
lower,
the
same,
22
or
higher
rates
of
interest
in
accordance
with
the
all
of
the
23
following
terms
and
procedures:
24
a.
A
loan
agreement
entered
into
by
a
port
authority
may
25
contain
provisions
similar
to
those
in
loan
agreements
between
26
private
parties,
including
but
not
limited
to
any
of
the
27
following:
28
(1)
The
loan
agreement
may
provide
for
the
issuance
29
of
notes,
certificates
of
participation,
or
any
other
30
participatory
interests
to
evidence
the
parties’
obligations.
31
(2)
The
loan
agreement
may
provide
for
maturity
in
one
or
32
more
installments.
33
(3)
The
loan
agreement
may
be
in
registered
form
and
carry
34
registration
and
conversion
privileges.
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(4)
The
loan
agreement
may
be
payable
as
to
principal
and
1
interest
at
times
and
places
as
specified.
2
(5)
The
loan
agreement
may
be
subject
to
terms
of
redemption
3
prior
to
maturity
with
or
without
a
premium.
4
(6)
The
loan
agreement
may
be
in
one
or
more
denominations.
5
b.
A
provision
of
a
loan
agreement
which
stipulates
that
6
a
portion
of
the
payments
be
applied
as
interest
is
subject
7
to
chapter
74A
and
such
interest
may
be
at
a
variable
rate
or
8
rates
changing
from
time
to
time
in
accordance
with
a
base
or
9
formula.
Other
laws
relating
to
interest
rates
do
not
apply
10
and
the
provisions
of
chapter
75
are
not
applicable.
11
c.
The
board
may
authorize
a
loan
agreement
to
be
12
payable
solely
from
the
net
revenues
of
a
port
authority
by
13
substantially
following
the
authorization
procedures
of
section
14
28J.21
for
the
issuance
of
revenue
bonds.
The
resolution
15
authorizing
the
loan
agreement
may
also
prescribe
additional
16
provisions,
terms,
conditions,
and
covenants
that
the
port
17
authority
deems
advisable,
consistent
with
this
chapter,
18
including
provisions
for
creating
and
maintaining
reserve
19
funds
and
for
the
authorization
of
additional
loan
agreements
20
ranking
on
a
parity
with
such
loan
agreements
and
additional
21
loan
agreements
junior
and
subordinate
to
such
loan
agreement,
22
and
that
such
loan
agreement
shall
rank
on
a
parity
with
or
23
be
junior
and
subordinate
to
any
loan
agreement
which
may
be
24
then
outstanding.
A
port
authority
loan
agreement
shall
be
25
a
contract
between
the
port
authority
and
the
lender
and
the
26
resolution
shall
be
made
part
of
the
contract.
27
d.
A
loan
agreement
to
which
a
port
authority
is
a
party
28
is
an
obligation
of
the
political
subdivisions
comprising
the
29
port
authority
for
the
purposes
of
chapters
502
and
636,
and
30
is
a
lawful
investment
for
any
bank,
trust
company,
savings
31
association,
deposit
guaranty
association,
investment
company,
32
insurance
company,
insurance
association,
executor,
guardian
or
33
trustee,
and
any
fiduciary
responsible
for
the
investment
of
34
funds
or
having
charge
of
the
loan
retirement
funds
or
sinking
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funds
of
any
port
authority,
governmental
agency,
or
taxing
1
district
of
this
state,
any
pension
and
annuity
retirement
2
system,
the
Iowa
public
employees’
retirement
system,
the
3
police
officers
and
fire
fighters
retirement
systems
under
4
chapters
410
and
411,
or
a
revolving
fund
of
a
governmental
5
agency
of
this
state,
and
are
acceptable
as
security
for
the
6
deposit
of
public
funds
under
chapter
12C.
7
3.
Lease
contracts.
A
port
authority
may
enter
into
lease
8
contracts
for
real
or
personal
property
comprising
a
port
9
authority
facility,
or
parts
thereof,
in
accordance
with
all
of
10
the
following
terms
and
procedures:
11
a.
A
port
authority
shall
lease
property
only
for
a
term
12
which
does
not
exceed
the
economic
life
of
the
property,
as
13
determined
by
the
board.
14
b.
A
lease
contract
entered
into
by
a
port
authority
may
15
contain
provisions
similar
to
those
found
in
lease
contracts
16
between
private
parties,
including
but
not
limited
to
any
of
17
the
following:
18
(1)
The
lease
contract
may
provide
for
the
issuance
of
19
certificates
of
participation
or
other
participatory
interests
20
in
the
lease
contracts
or
any
obligations
thereunder.
21
(2)
The
lease
contract
may
provide
for
the
lessee
to
pay
any
22
of
the
costs
of
operation
or
ownership
of
the
leased
property
23
and
for
the
right
to
purchase
the
leased
property.
24
c.
A
provision
of
a
lease
contract
which
stipulates
that
a
25
portion
of
the
rent
or
lease
payments
be
applied
as
interest
26
is
subject
to
the
provisions
of
chapter
74A
and
such
interest
27
may
be
at
a
variable
rate
or
rates
changing
from
time
to
time
28
in
accordance
with
a
base
or
formula.
Other
laws
relating
to
29
interest
rates
shall
not
apply
and
the
provisions
of
chapter
30
75
are
not
applicable.
31
d.
The
board
may
authorize
a
lease
contract
payable
solely
32
from
the
net
revenues
of
a
port
authority
by
substantially
33
following
the
authorization
procedures
set
forth
in
section
34
28J.21
for
the
issuance
of
port
authority
revenue
bonds.
The
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resolution
authorizing
the
lease
contract
may
also
prescribe
1
additional
provisions,
terms,
conditions,
and
covenants
which
2
the
port
authority
deems
advisable,
consistent
with
this
3
chapter,
including
provisions
for
creating
and
maintaining
4
reserve
funds
and
the
authorization
of
additional
lease
5
contracts
ranking
on
a
parity
with
such
lease
contracts
and
6
additional
lease
contracts
junior
and
subordinate
to
such
lease
7
contracts,
and
that
such
lease
contracts
shall
rank
on
a
parity
8
with
or
be
junior
and
subordinate
to
any
lease
contract
which
9
may
be
then
outstanding.
A
port
authority
lease
contract
shall
10
be
a
contract
between
the
port
authority
and
the
lessor
and
the
11
resolution
shall
be
part
of
the
contract.
12
e.
A
lease
contract
to
which
a
port
authority
is
a
party
13
is
an
obligation
of
the
political
subdivisions
comprising
the
14
port
authority
for
the
purposes
of
chapters
502
and
636,
and
15
is
a
lawful
investment
for
any
bank,
trust
company,
savings
16
association,
deposit
guaranty
association,
investment
company,
17
insurance
company,
insurance
association,
executor,
guardian
or
18
trustee,
and
any
fiduciary
responsible
for
the
investment
of
19
funds
or
having
charge
of
the
lease
retirement
funds
or
sinking
20
funds
of
any
port
authority,
governmental
agency
or
taxing
21
district
of
this
state,
any
pension
and
annuity
retirement
22
system,
the
Iowa
public
employees’
retirement
system,
the
23
police
officers
and
fire
fighters
retirement
systems
under
24
chapters
410
and
411,
or
a
revolving
fund
of
a
governmental
25
agency
of
this
state,
and
are
acceptable
as
security
for
the
26
deposit
of
public
funds
under
chapter
12C.
27
f.
A
contract
for
construction
by
a
private
party
of
28
property
to
be
leased
by
a
port
authority
is
not
a
contract
for
29
a
public
improvement
and
shall
not
be
subject
to
the
provisions
30
of
chapter
26
and
section
28J.3,
subsection
3.
This
paragraph
31
applies
to
all
contracts
that
are
subject
to
this
subsection,
32
notwithstanding
section
28J.9,
subsection
18,
or
any
other
33
provision
of
law
that
might
otherwise
apply,
including
a
34
requirement
of
notice,
competitive
bidding
or
selection,
or
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for
the
provision
of
security.
However,
if
a
contract
is
1
funded
in
advance
by
means
of
the
lessor
depositing
moneys
to
2
be
administered
by
a
port
authority
with
the
port
authority’s
3
obligation
to
make
rent
or
lease
payments
commencing
with
4
its
receipt
of
moneys,
a
contract
for
construction
of
the
5
property
in
question
awarded
by
the
port
authority
is
a
public
6
improvement
and
is
subject
to
the
provisions
of
chapter
26.
7
4.
Trust
agreements.
8
a.
In
the
discretion
of
the
port
authority,
a
loan
agreement
9
or
a
lease
contract
authorized
under
this
section
and
the
port
10
authority’s
obligations
thereunder
may
be
secured
by
a
trust
11
agreement
between
the
port
authority
and
a
corporate
trustee
12
that
may
be
any
trust
company
or
bank
having
the
powers
of
a
13
trust
company
within
this
or
any
other
state.
Subject
to
the
14
other
provisions
of
this
paragraph,
the
corporate
trustee
may
15
also
be
the
lender
under
a
loan
agreement
or
the
lessor
under
a
16
lease
contract
authorized
under
this
section.
17
b.
The
trust
agreement
may
provide
for
the
issuance
of
18
notes
to
evidence
the
port
authority’s
obligations
under
a
loan
19
agreement
to
which
the
port
authority
is
a
party.
The
trust
20
agreement
may
also
provide
for
the
issuance
of
certificates
21
of
participation
or
other
participatory
interests
in
a
lease
22
contract
to
which
a
port
authority
is
a
party.
The
trust
23
agreement,
or
any
resolution
authorizing
the
loan
agreement
or
24
the
lease
contract,
may
pledge
or
assign
revenues
of
the
port
25
authority
to
be
received
as
payment
of
obligations
under
the
26
loan
agreement
or
the
lease
contract
and
may
contain
provisions
27
for
protecting
and
enforcing
the
rights
and
remedies
of
the
28
lender,
the
lessor,
or
the
holders
of
notes
evidencing
the
29
port
authority’s
obligations
under
the
loan
agreement.
These
30
provisions
may
include
covenants
setting
forth
the
duties
of
31
the
port
authority
in
relation
to
the
acquisition
of
property,
32
the
construction,
improvement,
maintenance,
repair,
operation,
33
and
insurance
of
the
port
authority
facility
in
connection
34
with
which
the
loan
agreement
or
the
lease
contract
is
35
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authorized,
the
rentals
or
other
charges
to
be
imposed
for
the
1
use
or
services
of
any
port
authority
facility,
the
custody,
2
safeguarding,
and
application
of
all
moneys,
and
provisions
for
3
the
employment
of
consulting
engineers
in
connection
with
the
4
construction
or
operation
of
any
port
authority
facility.
5
c.
A
bank
or
trust
company
incorporated
under
the
laws
6
of
this
state
that
acts
as
the
depository
of
the
proceeds
or
7
borrowings
provided
under
the
loan
agreement
or
lease
contract
8
or
of
revenues,
shall
furnish
any
indemnifying
bonds
and
may
9
pledge
any
securities
that
are
required
by
the
port
authority.
10
The
trust
agreement
may
set
forth
the
rights
and
remedies
of
11
the
lender,
the
lessor,
or
the
holders
of
notes
evidencing
the
12
port
authority’s
obligations
under
the
loan
agreement
and
may
13
restrict
the
individual
right
of
action
by
the
lender,
the
14
lessor,
or
the
holders
of
notes
evidencing
the
port
authority’s
15
obligations
under
the
loan
agreement
as
is
customary
in
trust
16
agreements
or
trust
indentures
securing
similar
loan
agreements
17
or
lease
contracts.
The
trust
agreement
may
contain
any
other
18
provisions
that
the
port
authority
determines
reasonable
and
19
proper
for
the
security
of
the
lender,
the
lessor,
or
the
20
holders
of
notes
evidencing
the
port
authority’s
obligations
21
under
the
loan
agreement.
All
expenses
incurred
in
carrying
22
out
the
provisions
of
the
trust
agreement
may
be
treated
as
23
a
part
of
the
cost
of
the
operation
of
the
port
authority
24
facility.
25
5.
Exclusions.
Port
authority
loan
agreements
and
lease
26
contracts
authorized
under
this
chapter
shall
not
constitute
27
a
debt,
indebtedness,
or
a
pledge
of
the
faith
and
credit
of
28
the
port
authority
or
the
state
or
any
political
subdivision
29
of
the
state,
within
the
meaning
of
any
state
constitutional
30
provision
or
statutory
limitation,
nor
constitute
or
give
rise
31
to
a
pecuniary
liability
of
the
port
authority,
any
political
32
subdivisions
comprising
the
port
authority,
the
state,
or
33
any
political
subdivision
of
the
state,
or
a
charge
against
34
the
general
credit
or
taxing
power
of
the
port
authority.
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Any
political
subdivisions
comprising
the
port
authority,
1
the
state,
or
any
political
subdivision
of
the
state,
and
2
the
holders
or
owners
of
the
obligations
owed
under
a
loan
3
agreement
or
lease
contract
shall
not
have
taxes
levied
by
the
4
state
or
by
a
taxing
authority
of
a
governmental
agency
of
the
5
state
for
the
payment
of
the
principal
of
or
interest
owed
on
6
such
obligations.
However,
a
loan
agreement
or
lease
contract
7
and
the
obligation
owed
thereunder
are
payable
solely
from
the
8
revenues
and
funds
pledged
for
their
payment
as
authorized
9
by
this
chapter.
All
loan
agreements
and
lease
contracts
10
authorized
under
this
chapter
and
the
evidence
of
obligations
11
owed
under
such
loan
agreements
or
lease
contracts
such
shall
12
contain
a
statement
to
the
effect
that
the
loan
agreement
or
13
lease
contract
authorized
under
this
chapter
and
the
evidence
14
of
obligations
owed
under
the
loan
agreement
or
lease
contract,
15
as
to
both
principal
and
interest,
are
not
debts
of
the
port
16
authority
or
the
state
or
any
political
subdivision
of
the
17
state,
but
are
payable
solely
from
revenues
and
funds
pledged
18
for
their
payment.
19
6.
Judicial
proceedings.
20
a.
The
sole
remedy
for
a
breach
or
default
of
a
term
of
21
any
port
authority
loan
agreement
or
lease
contract
authorized
22
under
this
chapter
is
a
proceeding
in
law
or
in
equity
by
23
suit,
action,
or
mandamus
to
enforce
and
compel
performance
of
24
the
duties
required
by
this
chapter
and
of
the
terms
of
the
25
resolution
authorizing
the
loan
agreement
or
lease
contract,
26
or
to
obtain
the
appointment
of
a
receiver
to
take
possession
27
of
and
operate
the
port
authority
and
to
perform
the
duties
28
required
by
this
chapter
and
the
terms
of
the
resolution
29
authorizing
the
loan
agreement
or
lease
contract.
30
b.
An
action
shall
not
be
brought
after
fifteen
days
from
31
the
time
the
loan
agreement
or
lease
contract
is
authorized
by
32
the
port
authority
with
regards
to
any
of
the
following:
33
(1)
The
legality
of
the
port
authority
loan
agreement
or
34
lease
contract.
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(2)
The
power
of
a
port
authority
to
authorize
the
port
1
authority
loan
agreement
or
lease
contract.
2
(3)
The
effectiveness
of
any
proceedings
relating
to
the
3
authorization
of
the
port
authority
loan
agreement
or
lease
4
contract.
5
Sec.
142.
Section
28J.25,
Code
2020,
is
amended
to
read
as
6
follows:
7
28J.25
Funds
and
property
held
in
trust
——
use
and
deposit
of
8
funds.
9
All
revenues,
funds,
properties,
and
assets
acquired
by
the
10
port
authority
under
this
chapter
,
whether
as
proceeds
from
the
11
sale
of
port
authority
revenue
bonds,
pledge
orders,
borrowings
12
under
a
loan
agreement,
entering
into
a
lease
contract,
13
proceeds
from
the
issuance
of
certificates
of
participation
14
or
any
other
participatory
interests
in
such
loan
agreement
15
or
lease
contract
or
as
revenues,
shall
be
held
in
trust
for
16
the
purposes
of
carrying
out
the
port
authority’s
powers
and
17
duties,
shall
be
used
and
reused
as
provided
in
this
chapter
,
18
and
shall
at
no
time
be
part
of
other
public
funds.
Such
funds,
19
except
as
otherwise
provided
in
a
resolution
authorizing
port
20
authority
revenue
bonds
or
pledge
orders,
the
loan
agreement
or
21
lease
contract,
or
in
a
trust
agreement
securing
the
same,
or
22
except
when
invested
pursuant
to
section
28J.26
,
shall
be
kept
23
in
depositories
selected
by
the
port
authority
in
the
manner
24
provided
in
chapter
12C
,
and
the
deposits
shall
be
secured
25
as
provided
in
that
chapter.
The
resolution
authorizing
the
26
issuance
of
revenue
bonds
or
pledge
orders,
the
loan
agreement
27
or
lease
contract,
or
the
trust
agreement
securing
such
bonds
28
or
pledge
orders,
shall
provide
that
any
officer
to
whom,
or
29
any
bank
or
trust
company
to
which,
such
moneys
are
paid
shall
30
act
as
trustee
of
such
moneys
and
hold
and
apply
them
for
the
31
purposes
hereof,
subject
to
such
conditions
as
this
chapter
and
32
such
resolution
or
trust
agreement
provide.
33
Sec.
143.
Section
28J.26,
subsection
1,
Code
2020,
is
34
amended
to
read
as
follows:
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1.
If
a
port
authority
has
surplus
funds
after
making
all
1
deposits
into
all
funds
required
by
the
terms,
covenants,
2
conditions,
and
provisions
of
outstanding
revenue
bonds,
pledge
3
orders,
loan
agreements,
or
lease
contracts
and
refunding
bonds
4
which
are
payable
from
the
revenues
of
the
port
authority
5
and
after
complying
with
all
of
the
requirements,
terms,
6
covenants,
conditions,
and
provisions
of
the
proceedings
and
7
resolutions
pursuant
to
which
revenue
bonds,
pledge
orders,
8
and
refunding
bonds
are
issued
or
the
loan
agreement
or
lease
9
contract
is
authorized
,
the
board
may
transfer
the
surplus
10
funds
to
any
other
fund
of
the
port
authority
in
accordance
11
with
this
chapter
and
chapter
12C
,
provided
that
a
transfer
12
shall
not
be
made
if
it
conflicts
with
any
of
the
requirements,
13
terms,
covenants,
conditions,
or
provisions
of
a
resolution
14
authorizing
the
issuance
of
revenue
bonds,
pledge
orders,
15
or
other
obligations
which
are
or
loan
agreements
or
lease
16
contracts
payable
from
the
revenues
of
the
port
authority
which
17
are
then
outstanding.
18
Sec.
144.
Section
427.1,
subsection
34,
Code
2020,
is
19
amended
to
read
as
follows:
20
34.
Port
authority
property.
The
property
of
a
port
21
authority
created
pursuant
to
section
28J.2
,
when
devoted
to
22
public
use
and
not
held
for
pecuniary
profit
,
or
property
23
purchased
by
a
port
authority
.
24
DIVISION
XIX
25
FOOD
OPERATION
TRESPASS
26
Sec.
145.
Section
716.7A,
subsection
1,
paragraph
d,
as
27
enacted
by
2020
Iowa
Acts,
Senate
File
2413,
section
17,
is
28
amended
to
read
as
follows:
29
d.
(1)
“Food
operation”
means
any
of
the
following:
30
(1)
(a)
A
location
where
a
food
animal
is
produced,
31
maintained,
or
otherwise
housed
or
kept,
or
processed
in
any
32
manner.
33
(2)
(b)
A
location
other
than
as
described
in
subparagraph
34
(1)
division
(a)
where
a
food
animal
is
kept,
including
an
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apiary,
livestock
market,
vehicle
or
trailer
attached
to
a
1
vehicle,
fair,
exhibition,
or
a
business
operated
by
a
person
2
licensed
to
practice
veterinary
medicine
pursuant
to
chapter
3
169.
4
(3)
(c)
A
location
where
a
meat
food
product,
poultry
5
product,
milk
or
milk
product,
eggs
or
an
egg
product,
aquatic
6
product,
or
honey
is
prepared
for
human
consumption,
including
7
a
food
processing
plant,
a
slaughtering
establishment
operating
8
under
the
provisions
of
21
U.S.C.
§451
et
seq.
or
21
U.S.C.
9
§601
et
seq.;
or
a
slaughtering
establishment
subject
to
state
10
inspection
as
provided
in
chapter
189A.
11
(4)
(2)
A
“Food
operation”
does
not
include
a
food
12
establishment
or
farmers
market
that
sells
or
offers
for
sale
a
13
meat
food
product,
poultry
product,
milk
or
milk
product,
eggs
14
or
an
egg
product,
aquatic
product,
or
honey
.
15
Sec.
146.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
16
deemed
of
immediate
importance,
takes
effect
upon
enactment.
17
Sec.
147.
RETROACTIVE
APPLICABILITY.
This
division
of
this
18
Act
applies
retroactively
to
June
10,
2020.
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