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House File 142 - IntroducedA Bill ForAn Act 1relating to sales and use tax refunds.
2BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 423.45, subsection 3, Code 2021, is
2amended to read as follows:
33. In the circumstances described in subsections 1 and 2,
4a retailer has the option to either shall return any excess
5amount of tax paid to a consumer or user, or to remit the
6amount which a consumer or user has paid to the retailer to the
7department.
8EXPLANATION
9The inclusion of this explanation does not constitute agreement with
10the explanation’s substance by the members of the general assembly.
11This bill relates to sales and use tax refunds. Currently,
12if the amount of tax collected by a retailer is incorrect, and
13the incorrect amount is paid by the consumer to the retailer,
14the retailer has two options to refund any excess tax amount.
15First, the retailer may refund the excess tax amount to the
16consumer. Second, the retailer may remit the excess tax amount
17paid by the consumer to the department of revenue, and the
18consumer may file a claim for a refund or credit with the
19department of revenue under Code section 423.47.
20The bill strikes the option of the retailer to remit the
21excess tax amount paid by the consumer to the department of
22revenue, which requires the consumer to file a claim for a
23refund or credit with the department of revenue. The bill
24requires the retailer to refund any excess tax amount paid by
25the consumer to the consumer.
-1-jm/jh
2BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 423.45, subsection 3, Code 2021, is
2amended to read as follows:
33. In the circumstances described in subsections 1 and 2,
4a retailer has the option to either shall return any excess
5amount of tax paid to a consumer or user, or to remit the
6amount which a consumer or user has paid to the retailer to the
7department.
8EXPLANATION
9The inclusion of this explanation does not constitute agreement with
10the explanation’s substance by the members of the general assembly.
11This bill relates to sales and use tax refunds. Currently,
12if the amount of tax collected by a retailer is incorrect, and
13the incorrect amount is paid by the consumer to the retailer,
14the retailer has two options to refund any excess tax amount.
15First, the retailer may refund the excess tax amount to the
16consumer. Second, the retailer may remit the excess tax amount
17paid by the consumer to the department of revenue, and the
18consumer may file a claim for a refund or credit with the
19department of revenue under Code section 423.47.
20The bill strikes the option of the retailer to remit the
21excess tax amount paid by the consumer to the department of
22revenue, which requires the consumer to file a claim for a
23refund or credit with the department of revenue. The bill
24requires the retailer to refund any excess tax amount paid by
25the consumer to the consumer.
-1-jm/jh