Print
Senate File 102 - IntroducedA Bill ForAn Act 1relating to the liability of a sponsor of an event to
2collect sales tax, and providing penalties.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 423.33, subsection 3, Code 2019, is
2amended to read as follows:
33. a. (1) Event sponsor’s liability for sales tax sponsor
4— daily log — penalty. A person sponsoring a sponsor of an
5event including a flea market or a craft, antique, coin, or
6stamp show or similar event shall obtain from keep a daily log
7of every retailer selling tangible personal property, specified
8digital products, or taxable services at the event proof that
9the retailer possesses a valid sales tax permit or secure from
10the retailer a statement, taken in good faith, that tangible
11personal property, specified digital products, or services
12offered for sale are not subject to sales tax. Failure to do so
13renders a sponsor of the event liable for payment of any sales
14tax, interest, and penalty due and owing from any retailer
15selling property or services at the event. Sections 423.31,
16423.32, 423.37, 423.38, 423.39, 423.40, 423.41, and 423.42
17 apply to the sponsors.
18(2) The daily log shall include the name and sales tax
19permit number of the retailer. However, if a retailer does not
20have a sales tax permit number, the sponsor shall keep in the
21daily log the retailer’s address and driver’s license number or
22the equivalent of such an identifying number if the retailer
23does not have a driver’s license number. The daily log shall
24be kept on forms provided by the department.
25(3) The sponsor shall electronically submit to the
26department, within thirty days of the completion of an event,
27the daily log of every retailer selling tangible personal
28property, specified digital products, or taxable services at
29the event on forms provided by the department.
30b. The sponsor shall require each retailer to register as a
31retailer with the sponsor and shall require that a certificate
32of registration be prominently displayed by each retailer at
33the event.
34c. (1) If the sponsor does not comply with the requirements
35of paragraph “a”, subparagraph (3), the sponsor shall be subject
-1-1to a civil penalty in the amount of one thousand dollars plus
2fifty dollars per day for each day the violation continues up
3to a maximum civil penalty of ten thousand dollars.
4(2) For any other violation of this subsection, the sponsor
5shall be subject to a civil penalty in the amount of one
6thousand dollars.
7d. The penalty collected pursuant to this subsection shall
8be paid to the department and deposited into the general fund
9of the state. Unpaid penalties and interest may be enforced in
10the same manner as the taxes imposed by this chapter.
11e. For purposes of this subsection, a “person sponsoring a
12flea market or a craft, antique, coin, or stamp show or similar
13event” “sponsor” means a person sponsoring a flea market or a
14craft, antique, coin, or stamp show or similar event but does
15not include an organization which sponsors a person sponsoring
16 an event determined to qualify as an event involving casual
17sales pursuant to section 423.3, subsection 39, or the state
18fair or a fair as defined in section 174.1.
19EXPLANATION
20The inclusion of this explanation does not constitute agreement with
21the explanation’s substance by the members of the general assembly.
22This bill relates to the liability of a sponsor of an event
23to collect sales tax.
24The bill provides that a person sponsoring a flea market or
25a craft, antique, coin, or stamp show or similar event shall be
26required to keep a daily log of every retailer selling tangible
27personal property, specified digital products, or taxable
28services at the event.
29The bill specifies that the daily log shall include the name
30and sales tax permit number of the retailer. If a retailer
31does not have a sales tax permit number, the bill also requires
32the sponsor to keep in the daily log the retailer’s address
33and driver’s license number or the equivalent of such an
34identifying number if the retailer does not have a driver’s
35license number.
-2- 1The bill requires the sponsor to electronically submit to
2the department of revenue, within 30 days of the completion of
3the event, the daily log of every retailer selling tangible
4personal property, specified digital products, or taxable
5services at the event.
6The bill requires a sponsor to require each retailer to
7register with the sponsor and also requires each certificate of
8registration to be prominently displayed at the event.
9If the sponsor does not electronically submit to the
10department of revenue, within 30 days of the completion of an
11event, the daily log of every retailer selling at the event,
12the sponsor shall be subject to a civil penalty in the amount
13of $1,000 plus $50 per day for each day the violation continues
14up to a maximum civil penalty of $10,000. For any other
15violation of the bill by the sponsor, the sponsor shall be
16subject to a civil penalty in the amount of $1,000.
17Currently, a person sponsoring a flea market or a craft,
18antique, coin, or stamp show or similar event must obtain from
19every retailer at the event proof that the retailer possesses a
20valid sales tax permit or secure from the retailer a statement
21that the property or taxable services offered for sale are
22not subject to sales tax. Additionally under current law,
23failure to obtain proof that the retailer possesses a valid
24sales tax permit or to secure from the retailer a statement
25that the property or services offered for sale are not subject
26to sales tax renders a sponsor of the event liable for payment
27of any sales tax, interest, and penalty due and owing from any
28retailer selling property or services at the event.
-3-jm/jh
2collect sales tax, and providing penalties.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 423.33, subsection 3, Code 2019, is
2amended to read as follows:
33. a. (1) Event sponsor’s liability for sales tax sponsor
4— daily log — penalty. A person sponsoring a sponsor of an
5event including a flea market or a craft, antique, coin, or
6stamp show or similar event shall obtain from keep a daily log
7of every retailer selling tangible personal property, specified
8digital products, or taxable services at the event proof that
9the retailer possesses a valid sales tax permit or secure from
10the retailer a statement, taken in good faith, that tangible
11personal property, specified digital products, or services
12offered for sale are not subject to sales tax. Failure to do so
13renders a sponsor of the event liable for payment of any sales
14tax, interest, and penalty due and owing from any retailer
15selling property or services at the event. Sections 423.31,
16423.32, 423.37, 423.38, 423.39, 423.40, 423.41, and 423.42
17 apply to the sponsors.
18(2) The daily log shall include the name and sales tax
19permit number of the retailer. However, if a retailer does not
20have a sales tax permit number, the sponsor shall keep in the
21daily log the retailer’s address and driver’s license number or
22the equivalent of such an identifying number if the retailer
23does not have a driver’s license number. The daily log shall
24be kept on forms provided by the department.
25(3) The sponsor shall electronically submit to the
26department, within thirty days of the completion of an event,
27the daily log of every retailer selling tangible personal
28property, specified digital products, or taxable services at
29the event on forms provided by the department.
30b. The sponsor shall require each retailer to register as a
31retailer with the sponsor and shall require that a certificate
32of registration be prominently displayed by each retailer at
33the event.
34c. (1) If the sponsor does not comply with the requirements
35of paragraph “a”, subparagraph (3), the sponsor shall be subject
-1-1to a civil penalty in the amount of one thousand dollars plus
2fifty dollars per day for each day the violation continues up
3to a maximum civil penalty of ten thousand dollars.
4(2) For any other violation of this subsection, the sponsor
5shall be subject to a civil penalty in the amount of one
6thousand dollars.
7d. The penalty collected pursuant to this subsection shall
8be paid to the department and deposited into the general fund
9of the state. Unpaid penalties and interest may be enforced in
10the same manner as the taxes imposed by this chapter.
11e. For purposes of this subsection, a “person sponsoring a
12flea market or a craft, antique, coin, or stamp show or similar
13event” “sponsor” means a person sponsoring a flea market or a
14craft, antique, coin, or stamp show or similar event but does
15not include an organization which sponsors a person sponsoring
16 an event determined to qualify as an event involving casual
17sales pursuant to section 423.3, subsection 39, or the state
18fair or a fair as defined in section 174.1.
19EXPLANATION
20The inclusion of this explanation does not constitute agreement with
21the explanation’s substance by the members of the general assembly.
22This bill relates to the liability of a sponsor of an event
23to collect sales tax.
24The bill provides that a person sponsoring a flea market or
25a craft, antique, coin, or stamp show or similar event shall be
26required to keep a daily log of every retailer selling tangible
27personal property, specified digital products, or taxable
28services at the event.
29The bill specifies that the daily log shall include the name
30and sales tax permit number of the retailer. If a retailer
31does not have a sales tax permit number, the bill also requires
32the sponsor to keep in the daily log the retailer’s address
33and driver’s license number or the equivalent of such an
34identifying number if the retailer does not have a driver’s
35license number.
-2- 1The bill requires the sponsor to electronically submit to
2the department of revenue, within 30 days of the completion of
3the event, the daily log of every retailer selling tangible
4personal property, specified digital products, or taxable
5services at the event.
6The bill requires a sponsor to require each retailer to
7register with the sponsor and also requires each certificate of
8registration to be prominently displayed at the event.
9If the sponsor does not electronically submit to the
10department of revenue, within 30 days of the completion of an
11event, the daily log of every retailer selling at the event,
12the sponsor shall be subject to a civil penalty in the amount
13of $1,000 plus $50 per day for each day the violation continues
14up to a maximum civil penalty of $10,000. For any other
15violation of the bill by the sponsor, the sponsor shall be
16subject to a civil penalty in the amount of $1,000.
17Currently, a person sponsoring a flea market or a craft,
18antique, coin, or stamp show or similar event must obtain from
19every retailer at the event proof that the retailer possesses a
20valid sales tax permit or secure from the retailer a statement
21that the property or taxable services offered for sale are
22not subject to sales tax. Additionally under current law,
23failure to obtain proof that the retailer possesses a valid
24sales tax permit or to secure from the retailer a statement
25that the property or services offered for sale are not subject
26to sales tax renders a sponsor of the event liable for payment
27of any sales tax, interest, and penalty due and owing from any
28retailer selling property or services at the event.
-3-jm/jh