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Senate Study Bill 3063 - IntroducedA Bill ForAn Act 1relating to sales, use, and motor vehicle fuel taxes
2administered by the department of revenue including
3distributions to local governments and school districts, the
4liability of sellers, tax refund and tax credit incentives,
5and motor fuel tax reporting and terminology modifications,
6and providing penalties, and including effective date and
7applicability provisions.
8BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2SALES, use, and excise tax — returns due
3 Section 1. Section 9C.3, subsection 3, Code 2022, is amended
4to read as follows:
53. The application shall state whether or not the applicant
6has an Iowa retailers sales or use tax permit and if the
7applicant has such permit, shall state the number of such
8permit.
9 Sec. 2. Section 9C.5, Code 2022, is amended to read as
10follows:
119C.5 Issuance of license.
12Upon receiving an application for a transient merchant’s
13license, the secretary of state shall investigate or cause to
14be investigated, the reputation and character of the applicant.
15If, upon making such investigation, the secretary of state is
16satisfied that the statements and representations contained in
17the application are true, and that the applicant is of good
18reputation and character, and the holder of an Iowa retailer’s
19 sales or use tax permit, and if a foreign corporation, has
20authority to do business in the state of Iowa, the secretary
21shall issue to the applicant a license as a transient merchant
22upon payment of the fee as herein prescribed for the period of
23time requested in said application and for use at the location
24and place where it is stated in said application the sale will
25be held or the business conducted, both of which shall be set
26out in said license. Such license shall be valid only for the
27period of time and at the location and place described therein.
28 Sec. 3. Section 99G.30A, subsection 2, paragraph c, Code
292022, is amended to read as follows:
30c. Frequency of deposits and quarterly monthly reports of
31the monitor vending machine excise tax with the department of
32revenue are governed by the tax provisions in section 423.31.
33Monitor vending machine excise tax collections shall not be
34included in computation of the total tax to determine frequency
35of filing under section 423.31.
-1-1 Sec. 4. Section 321.105A, subsection 4, paragraph b, Code
22022, is amended to read as follows:
3b. Section 422.25, subsection 4, sections 422.30, 422.67,
4and 422.68, section 422.69, subsection 1, sections 422.70,
5422.71, 422.72, 422.74, and 422.75, section 423.14, subsection
62, and sections 423.23, 423.24, 423.25, 423.32, 423.33, 423.35,
7423.37 through 423.42, 423.45, and 423.47, consistent with the
8provisions of this section, apply with respect to the fees
9for new registration authorized under this section in the
10same manner and with the same effect as if the fees for new
11registration were retail use taxes within the meaning of those
12statutes.
13 Sec. 5. Section 421.26, Code 2022, is amended to read as
14follows:
15421.26 Personal liability for tax due.
16If a licensee or other person under section 452A.65, a
17retailer or purchaser under chapter 423A, 423B, 423C, 423D,
18or 423E, or section 423.14, 423.14A, 423.29, 423.31, 423.32,
19 or 423.33, or a user under section 423.34, or a permit holder
20or licensee under section 453A.13, 453A.16, or 453A.44 fails
21to pay a tax under those sections when due, an officer of a
22corporation or association, notwithstanding section 489.304,
23a member or manager of a limited liability company, or a
24partner of a partnership, having control or supervision of
25or the authority for remitting the tax payments and having
26a substantial legal or equitable interest in the ownership
27of the corporation, association, limited liability company,
28or partnership, who has intentionally failed to pay the tax
29is personally liable for the payment of the tax, interest,
30and penalty due and unpaid. However, this section shall
31not apply to taxes on accounts receivable. The dissolution
32of a corporation, association, limited liability company,
33or partnership shall not discharge a person’s liability for
34failure to remit the tax due.
35 Sec. 6. Section 423.2, subsection 1, paragraph b, Code 2022,
-2-1is amended to read as follows:
2b. Sales of building materials, supplies, and equipment
3to owners, contractors, subcontractors, or builders for the
4erection of buildings or the alteration, repair, or improvement
5of real property are retail sales of tangible personal property
6in whatever quantity sold. Where the owner, contractor,
7subcontractor, or builder is also a retailer holding a retail
8 sales or use tax permit and transacting retail sales of
9building materials, supplies, and equipment, the person shall
10purchase such items of tangible personal property without
11liability for the tax if such property will be subject to the
12tax at the time of resale or at the time it is withdrawn from
13inventory for construction purposes. The sales tax shall be
14due in the reporting period when the materials, supplies,
15and equipment are withdrawn from inventory for construction
16purposes or when sold at retail. The tax shall not be due when
17materials are withdrawn from inventory for use in construction
18outside of Iowa and the tax shall not apply to tangible
19personal property purchased and consumed by the manufacturer as
20building materials in the performance by the manufacturer or
21its subcontractor of construction outside of Iowa. The sale
22of carpeting is not a sale of building materials. The sale of
23carpeting to owners, contractors, subcontractors, or builders
24shall be treated as the sale of ordinary tangible personal
25property and subject to the tax imposed under this subsection
26and the use tax.
27 Sec. 7. Section 423.3, subsection 39, paragraph a,
28subparagraph (2), Code 2022, is amended to read as follows:
29(2) The sale of all or substantially all of the tangible
30personal property, or specified digital products, or services
31held or used by a seller in the course of the seller’s trade
32or business for which the seller is required to hold a sales
33or use tax permit when the seller sells or otherwise transfers
34the trade or business to another person who shall engage in a
35similar trade or business.
-3-1 Sec. 8. Section 423.3, subsection 80, paragraph d, Code
22022, is amended to read as follows:
3d. Subject to the limitations in paragraph “c”, where the
4owner, contractor, subcontractor, or builder is also a retailer
5holding a retail sales or use tax permit and transacting
6retail sales of building materials, supplies, and equipment,
7the tax shall not be due when materials are withdrawn from
8inventory for use in construction performed for a designated
9exempt entity if an exemption certificate is received from such
10entity.
11 Sec. 9. Section 423.5, subsection 2, Code 2022, is amended
12to read as follows:
132. The excise tax is imposed upon every person using
14the property within this state until the tax has been paid
15directly to the county treasurer, the state department of
16transportation, a retailer, or the department. This tax is
17imposed on every person using the services or the product of
18the services in this state until the user has paid the tax
19either to an Iowa sales or use tax permit holder or to the
20department.
21 Sec. 10. Section 423.14, subsection 2, paragraph b, Code
222022, is amended to read as follows:
23b. The tax upon the use of all tangible personal property
24and specified digital products other than that enumerated in
25paragraph “a”, which is sold by a seller who is a retailer or
26its agent that is not otherwise required to collect sales tax
27under the provisions of this chapter, may be collected by the
28retailer or agent and remitted to the department, pursuant to
29the provisions of paragraph “e”, and sections 423.24, 423.29,
30423.30, 423.32 423.31, and 423.33.
31 Sec. 11. Section 423.14A, subsection 3, paragraph c,
32subparagraph (2), Code 2022, is amended to read as follows:
33(2) A marketplace facilitator shall collect sales and
34use tax on the entire sales price or purchase price paid by
35a purchaser on each Iowa sale subject to sales and use tax
-4-1that is made or facilitated by the marketplace facilitator,
2regardless of whether the marketplace seller for whom an Iowa
3sale is made or facilitated has or is required to have a retail
4 sales or use tax permit or would have been required to collect
5sales and use tax had the sale not been facilitated by the
6marketplace facilitator, and regardless of the amount of the
7sales price or purchase price that will ultimately accrue
8to or benefit the marketplace facilitator, the marketplace
9seller, or any other person. This sales and use tax collection
10responsibility of a marketplace facilitator applies but shall
11not be limited to sales facilitated through a computer software
12application, commonly referred to as in-app purchases, or
13through another specified digital product.
14 Sec. 12. Section 423.31, subsections 1, 3, 5, and 6, Code
152022, are amended to read as follows:
161. a. Each Except as provided in paragraph “b”, each person
17subject to this section and section 423.36 and in accordance
18with the provisions of this section and section 423.36 shall,
19on or before the last day of the month following the close of
20each calendar quarter month during which such person is or
21has become or ceased being subject to the provisions of this
22section and section 423.36, make, sign, and file electronically
23 a return for the calendar quarter month in the form as may be
24required. Returns shall show information relating to sales
25prices including tangible personal property, specified digital
26products, and services converted to the use of such person,
27the amounts of sales prices excluded and exempt from the tax,
28the amounts of sales prices subject to tax, a calculation of
29tax due, and any other information for the period covered by
30the return as may be required. Returns shall be signed by
31the retailer or the retailer’s authorized agent and must be
32certified by the retailer to be correct in accordance with
33forms and rules prescribed by the director. A person required
34to file a sales or use tax return who is unable to do so may
35request permission from the director to file a return by
-5-1another method.
2b. Notwithstanding paragraph “a”, each person subject to
3this section who collects and remits less than one thousand
4two hundred dollars in sales or use tax to the department per
5calendar year may file a return on or before the last day of the
6month following the close of the calendar year.
73. The sales tax forms prescribed by the director shall be
8referred to as “retailers tax deposit”. Deposit forms shall
9be signed by the retailer or the retailer’s duly authorized
10agent, and shall be duly certified by the retailer or agent to
11be correct. The director may authorize incorporated banks and
12trust companies or other depositories authorized by law which
13are depositories or financial agents of the United States,
14or of this state, to receive any sales or use tax imposed
15under this chapter, in the manner, at the times, and under
16the conditions the director prescribes. The director shall
17prescribe the manner, times, and conditions under which the
18receipt of the tax by those depositories is to be treated as
19payment of the tax to the department.
205. a. Upon making application and receiving approval
21from the director, a person and its affiliates that make
22retail sales of tangible personal property, specified digital
23products, or taxable enumerated services may make deposits and
24file a consolidated sales or use tax return for the affiliated
25group, pursuant to rules adopted by the director. A person and
26each affiliate that files a consolidated return are jointly and
27severally liable for all tax, penalty, and interest found due
28for the tax period for which a consolidated return is filed or
29required to be filed.
30b. A business required to file a consolidated sales or use
31 tax return shall file a form entitled “schedule of consolidated
32business locations” with its quarterly sales or use tax
33return that shows the taxpayer’s consolidated permit number,
34the permit number for each Iowa business location, the state
35sales tax amount by business location, and the amount of state
-6-1sales tax due on goods consumed that are not assigned to a
2specific business location. Consolidated quarterly sales or
3use tax returns that are not accompanied by the schedule of
4consolidated business locations form are considered incomplete
5and are subject to penalty under section 421.27.
66. If necessary or advisable in order to insure ensure
7 the payment of the tax, the director may require returns and
8payment of the tax to be made for other than quarterly monthly
9 periods, the provisions of this section or other provision to
10the contrary notwithstanding.
11 Sec. 13. Section 423.31, subsection 2, Code 2022, is amended
12by striking the subsection.
13 Sec. 14. Section 423.33, subsection 1, paragraph a, Code
142022, is amended to read as follows:
15a. If a purchaser fails to pay sales tax to the retailer
16required to collect the tax, then in addition to all of the
17rights, obligations, and remedies provided, a use tax is
18payable by the purchaser directly to the department, and
19sections 423.31, 423.32, 423.37, 423.38, 423.39, 423.40,
20423.41, and 423.42 apply to the purchaser.
21 Sec. 15. Section 423.33, subsection 3, Code 2022, is amended
22to read as follows:
233. Event sponsor’s liability for sales tax. A person
24sponsoring a flea market or a craft, antique, coin, or stamp
25show or similar event shall obtain from every retailer selling
26tangible personal property, specified digital products, or
27taxable services at the event proof that the retailer possesses
28a valid sales or use tax permit or secure from the retailer
29a statement, taken in good faith, that tangible personal
30property, specified digital products, or services offered for
31sale are not subject to sales tax. Failure to do so renders
32a sponsor of the event liable for payment of any sales tax,
33interest, and penalty due and owing from any retailer selling
34property or services at the event. Sections 423.31, 423.32,
35 423.37, 423.38, 423.39, 423.40, 423.41, and 423.42 apply to the
-7-1sponsors. For purposes of this subsection, a “person sponsoring
2a flea market or a craft, antique, coin, or stamp show or similar
3event” does not include a marketplace facilitator as defined in
4section 423.14A, subsection 1, an organization which sponsors
5an event determined to qualify as an event involving casual
6sales pursuant to section 423.3, subsection 39, or the state
7fair or a fair as defined in section 174.1.
8 Sec. 16. Section 423.34, Code 2022, is amended to read as
9follows:
10423.34 Liability of user.
11Any person who uses any tangible personal property,
12specified digital products, or services enumerated in section
13423.2 upon which the use tax has not been paid, either to the
14county treasurer or to a retailer or direct to the department
15as required by this subchapter, shall be liable for the payment
16of tax, and shall on or before the last day of the month next
17succeeding each quarterly monthly period pay the use tax upon
18all tangible personal property, specified digital products,
19or services used by the person during the preceding quarterly
20 monthly period in the manner and accompanied by such returns
21as the director shall prescribe. All of the provisions of
22sections 423.32 423.31 and 423.33 with reference to the returns
23and payments shall be applicable to the returns and payments
24required by this section.
25 Sec. 17. Section 423.36, subsection 4, paragraph b, Code
262022, is amended to read as follows:
27b. If an applicant is making sales outside Iowa for use in
28this state or furnishing services outside Iowa, the product
29or result of which will be used in this state, that applicant
30shall be issued one sales or use tax permit by the department
31applicable to these out-of-state sales or services.
32 Sec. 18. Section 423.36, subsection 4, Code 2022, is amended
33by adding the following new paragraph:
34 NEW PARAGRAPH. c. If an applicant is required to collect
35sales or use tax and is not included in the definition of a
-8-1retailer maintaining a place of business in this state in
2section 423.1, subsection 48, paragraph “a”, subparagraph (1),
3the applicant shall be issued one sales or use tax permit by
4the department regardless of the number of locations from which
5sales are made.
6 Sec. 19. Section 423.36, subsections 7 and 8, Code 2022, are
7amended to read as follows:
87. a. Sellers who are not regularly engaged in selling
9at retail and do not have a permanent place of business, but
10who are temporarily engaged in selling from trucks, portable
11roadside stands, concessionaires at state, county, district,
12or local fairs, carnivals, or the like, shall report and remit
13the sales tax on a temporary seasonal basis, under rules
14the director shall provide for the efficient collection of
15the sales tax. This subsection applies to sellers who are
16temporarily engaged in furnishing services.
17b. Persons engaged in selling tangible personal property,
18specified digital products, or furnishing services shall not
19be required to obtain or retain a sales or use tax permit for a
20place of business at which taxable sales of tangible personal
21property, specified digital products, or taxable performance of
22services will not occur.
238. The provisions of subsection 1, dealing with the lawful
24right of a retailer to transact business, as applicable, apply
25to persons having receipts from furnishing services enumerated
26in section 423.2, except that a person holding a permit
27pursuant to subsection 1 shall not be required to obtain any
28separate sales or use tax permit for the purpose of engaging in
29business involving the services.
30 Sec. 20. Section 423.40, subsections 1, 2, 3, and 5, Code
312022, are amended to read as follows:
321. In addition to the sales or use tax or additional sales
33or use tax, the taxpayer shall pay a penalty as provided in
34section 421.27. The taxpayer shall also pay interest on the
35sales or use tax or additional sales or use tax at the rate
-9-1in effect under section 421.7 for each month counting each
2fraction of a month as an entire month, computed from the date
3the semimonthly or monthly tax deposit form or return was
4required to be filed. The penalty and interest shall be paid
5to the department and disposed of in the same manner as other
6receipts under this subchapter. Unpaid penalties and interest
7may be enforced in the same manner as the taxes imposed by this
8chapter.
92. a. Any person who knowingly sells tangible personal
10property, specified digital products, tickets or admissions
11to places of amusement and athletic events, or gas, water,
12electricity, or communication service at retail, or engages in
13the furnishing of services enumerated in section 423.2, in this
14state without procuring a permit to collect tax, as provided
15in section 423.36, or who violates section 423.24 and the
16officers of any corporation who so act are guilty of a serious
17misdemeanor.
18b. A person who knowingly sells tangible personal property,
19specified digital products, tickets or admissions to places of
20amusement and athletic events, or gas, water, electricity, or
21communication service at retail, or engages in the furnishing
22of services enumerated in section 423.2, in this state after
23the person’s sales or use tax permit has been revoked and
24before it has been restored as provided in section 423.36,
25subsection 6, and the officers of any corporation who so act
26are guilty of an aggravated misdemeanor.
273. A person who willfully attempts in any manner to evade
28any tax imposed by this chapter or the payment of the tax or
29a person who makes or causes to be made a false or fraudulent
30semimonthly or monthly tax deposit form or return with intent
31to evade any tax imposed by subchapter II or III or the payment
32of the tax is guilty of a class “D” felony.
335. A person required to pay sales or use tax, or to make,
34sign, or file a tax deposit form or return or supplemental
35return, who willfully makes a false or fraudulent tax deposit
-10-1form or return, or willfully fails to pay at least ninety
2percent of the tax or willfully fails to make, sign, or file
3the tax deposit form or return, at the time required by law, is
4guilty of a fraudulent practice.
5 Sec. 21. Section 423.45, subsection 4, paragraph b, Code
62022, is amended to read as follows:
7b. The sales tax liability for all sales of tangible
8personal property and specified digital products and all sales
9of services is upon the seller and the purchaser unless the
10seller takes from the purchaser a valid exemption certificate
11stating under penalty of perjury that the purchase is for a
12nontaxable purpose and is not a retail sale as defined in
13section 423.1, or the seller is not obligated to collect tax
14due, or unless the seller takes a fuel exemption certificate
15pursuant to subsection 5. If the tangible personal property,
16specified digital products, or services are purchased tax free
17pursuant to a valid exemption certificate and the tangible
18personal property, specified digital products, or services are
19used or disposed of by the purchaser in a nonexempt manner, the
20purchaser is solely liable for the taxes and shall remit the
21taxes directly to the department and sections 423.31, 423.32,
22 423.37, 423.38, 423.39, 423.40, 423.41, and 423.42 shall apply
23to the purchaser.
24 Sec. 22. Section 423.45, subsection 5, paragraph c, Code
252022, is amended to read as follows:
26c. The seller may accept a completed fuel exemption
27certificate, as prepared by the purchaser, for three
28years unless the purchaser files a new completed exemption
29certificate. If the fuel is purchased tax free pursuant to a
30fuel exemption certificate which is taken by the seller, and
31the fuel is used or disposed of by the purchaser in a nonexempt
32manner, the purchaser is solely liable for the taxes, and shall
33remit the taxes directly to the department and sections 423.31,
34423.32, 423.37, 423.38, 423.39, 423.40, 423.41, and 423.42
35shall apply to the purchaser.
-11-1 Sec. 23. Section 423.50, subsection 1, Code 2022, is amended
2to read as follows:
31. Only one remittance of tax per return is required except
4as provided in this subsection. Sellers that collect more
5than thirty thousand dollars in sales and use taxes for this
6state during the preceding calendar year shall be required to
7make additional remittances as required under rules adopted by
8the director. The filing of a return is not required with an
9additional remittance.
10 Sec. 24. Section 423.57, Code 2022, is amended to read as
11follows:
12423.57 Statutes applicable.
13The director shall administer this subchapter as it relates
14to the taxes imposed in this chapter in the same manner and
15subject to all the provisions of, and all of the powers,
16duties, authority, and restrictions contained in sections
17423.14, 423.14A, 423.14B, 423.15, 423.16, 423.17, 423.19,
18423.20, 423.21, 423.22, 423.23, 423.24, 423.25, 423.29, 423.31,
19423.32, 423.33, 423.34, 423.34A, 423.35, 423.37, 423.38,
20423.39, 423.40, 423.41, and 423.42, section 423.43, subsection
211, and sections 423.45, 423.46, and 423.47.
22 Sec. 25. Section 423.58, Code 2022, is amended to read as
23follows:
24423.58 Collection, permit, and tax return exemption for
25certain out-of-state businesses.
26Notwithstanding sections 423.14, 423.14A, 423.14B, 423.29,
27423.31, 423.32, and 423.36, a person meeting the requirements
28of section 29C.24 is not required to obtain a sales or use tax
29permit, collect and remit sales and use tax, or make and file
30applicable sales or use tax returns, as provided in section
3129C.24, subsection 3, paragraph “a”, subparagraph (2).
32 Sec. 26. Section 423A.6, subsection 4, Code 2022, is amended
33to read as follows:
344. Section 422.25, subsection 4, sections 422.30, 422.67,
35and 422.68, section 422.69, subsection 1, sections 422.70,
-12-1422.71, 422.72, 422.74, and 422.75, section 423.14, subsection
21, and sections 423.23, 423.24, 423.25, 423.31, 423.33,
3423.35, 423.37 through 423.42, and 423.47, consistent with the
4provisions of this chapter, apply with respect to the taxes
5authorized under this chapter, in the same manner and with the
6same effect as if the state and local hotel and motel taxes
7were retail sales taxes within the meaning of those statutes.
8Notwithstanding this subsection, the director shall provide
9for quarterly monthly filing of returns and for other than
10quarterly monthly filing of returns both as prescribed in
11section 423.31. The director may require all persons who are
12engaged in the business of deriving any sales price subject
13to tax under this chapter to register with the department.
14All taxes collected under this chapter by a retailer, lodging
15provider, lodging facilitator, lodging platform, or any other
16person are deemed to be held in trust for the state of Iowa and
17the local jurisdictions imposing the taxes.
18 Sec. 27. Section 423B.5, subsection 3, Code 2022, is amended
19to read as follows:
203. A tax permit other than the state sales or use tax permit
21required under section 423.36 shall not be required by local
22authorities.
23 Sec. 28. Section 423B.6, subsection 2, paragraph c, Code
242022, is amended to read as follows:
25c. Frequency of deposits and quarterly monthly reports of a
26local sales and services tax with the department of revenue are
27governed by the tax provisions in section 423.31. Local tax
28collections shall not be included in computation of the total
29tax to determine frequency of filing under section 423.31.
30 Sec. 29. Section 423C.4, Code 2022, is amended to read as
31follows:
32423C.4 Administration and enforcement.
33All powers and requirements of the director of revenue
34to administer the state sales tax law under chapter 423 are
35applicable to the administration of the tax imposed under
-13-1section 423C.3, including but not limited to section 422.25,
2subsection 4, sections 422.30, 422.67, and 422.68, section
3422.69, subsection 1, sections 422.70 through 422.75, section
4423.14, subsection 1, and sections 423.15, 423.23, 423.24,
5423.25, 423.31, 423.33, 423.35 and 423.37 through 423.42,
6423.45, 423.46, and 423.47. However, as an exception to the
7powers specified in section 423.31, the director shall only
8require the filing of quarterly monthly reports.
9 Sec. 30. Section 423D.4, subsection 3, Code 2022, is amended
10to read as follows:
113. Section 422.25, subsection 4, sections 422.30, 422.67,
12and 422.68, section 422.69, subsection 1, sections 422.70,
13422.71, 422.72, 422.74, and 422.75, section 423.14, subsection
141, and sections 423.23, 423.24, 423.25, 423.31 through
15423.35, 423.37 through 423.42, and 423.47, consistent with
16the provisions of this chapter, apply with respect to the tax
17authorized under this chapter, in the same manner and with the
18same effect as if the excise taxes on equipment sales or use
19were retail sales taxes within the meaning of those statutes.
20Notwithstanding this subsection, the director shall provide
21for quarterly monthly filing of returns and for other than
22quarterly monthly filing of returns both as prescribed in
23section 423.31. All taxes collected under this chapter by a
24retailer or any user are deemed to be held in trust for the
25state of Iowa.
26 Sec. 31. Section 423G.5, subsection 3, Code 2022, is amended
27to read as follows:
283. Section 422.25, subsection 4, sections 422.30, 422.67,
29and 422.68, section 422.69, subsection 1, sections 422.70,
30422.71, 422.72, 422.74, and 422.75, section 423.14, subsection
311, and sections 423.23, 423.24, 423.25, 423.31 through
32423.35, 423.37 through 423.42, and 423.47, consistent with the
33provisions of this chapter, shall apply with respect to the tax
34authorized under this chapter, in the same manner and with the
35same effect as if the excise taxes on the sale or furnishing of
-14-1a water service were retail sales taxes within the meaning of
2those statutes. Notwithstanding this subsection, the director
3shall provide for quarterly monthly filing of returns and
4for other than quarterly monthly filing of returns both as
5prescribed in section 423.31. All taxes collected under this
6chapter by a retailer or any user are deemed to be held in trust
7for the state of Iowa.
8 Sec. 32. Section 728.1, subsection 6, Code 2022, is amended
9to read as follows:
106. “Place of business” means the premises of a business
11required to obtain a sales or use tax permit pursuant to
12chapter 423, the premises of a nonprofit or not-for-profit
13organization, and the premises of an establishment which is
14open to the public at large or where entrance is limited by a
15cover charge or membership requirement.
16 Sec. 33. Section 728.5, subsection 1, unnumbered paragraph
171, Code 2022, is amended to read as follows:
18An owner, manager, or person who exercises direct control
19over a place of business required to obtain a sales or use tax
20permit shall be guilty of a serious misdemeanor under any of
21the following circumstances:
22 Sec. 34. REPEAL. Section 423.32, Code 2022, is repealed.
23DIVISION II
24DISTRIBUTIONS OF REVENUE TO LOCAL GOVERNMENTS AND SCHOOL
25DISTRICTS
26 Sec. 35. Section 423B.7, subsection 2, paragraph a, Code
272022, is amended to read as follows:
28a. The director of revenue by August 15 of each fiscal
29year the last day of each month shall send transfer to each
30city or county where the local option tax is imposed, an
31estimate of the amount of tax moneys remitted to the department
32attributable to each city or county will receive for the year
33and for each month of the year from the preceding month. At the
34end of each month, the director may revise the estimates for
35the year and remaining months.
-15-1 Sec. 36. Section 423B.7, subsection 2, paragraphs b and c,
2Code 2022, are amended by striking the paragraphs.
3 Sec. 37. Section 423F.2, subsection 4, paragraph a, Code
42022, is amended to read as follows:
5a. The director of revenue by August 15 of each fiscal year
6 the last day of each month shall send transfer to each school
7district an estimate of the amount of tax moneys remitted
8to the department attributable to each school district will
9receive for the year and for each month of the year from the
10preceding month. At the end of each month, the director may
11revise the estimates for the year and remaining months.
12 Sec. 38. Section 423F.2, subsection 4, paragraphs b and c,
13Code 2022, are amended by striking the paragraphs.
14 Sec. 39. TRANSITION PROVISION FOR LOCAL OPTION SALES TAX
15AND SECURING AN ADVANCED VISION FOR EDUCATION — TRANSFER
16AMOUNTS. Notwithstanding any other provision of law to the
17contrary, the department of revenue shall estimate monthly
18local option sales tax and securing an advanced vision for
19education transfer amounts through the end of the 2022 calendar
20year. The department of revenue shall transfer estimated
21amounts to each local government or school district for the
22months of July, August, and September 2022. Beginning with the
23October 2022 transfer, the department shall not use estimated
24amounts and shall transfer the amount of tax attributable to
25each local government or school district for the tax remitted
26in September 2022. Any adjustment amount that is necessary to
27the July, August, or September 2022 estimated transfer amount
28to reflect the accurate attributable amount shall be made by
29the department of revenue or the local government or school
30district by the close of business on December 30, 2022.
31DIVISION III
32LIABILITY OF SELLERS USING CERTIFIED SERVICE provider
33 Sec. 40. Section 423.48, subsection 3, paragraph a, Code
342022, is amended to read as follows:
35a. A model 1 seller’s obligation to calculate, collect, and
-16-1remit sales and use taxes shall be performed by its certified
2service provider, except for the seller’s obligation to remit
3tax on its own purchases. As the seller’s agent, the certified
4service provider is liable for its model 1 seller’s sales
5and use tax due Iowa on all sales transactions it processes
6for the seller except as set out in this section. A seller
7that contracts with a certified service provider is not
8liable to the state for sales or use tax due on transactions
9processed by the certified service provider unless the seller
10misrepresents the types of items or services it sells or
11commits fraud certified service provider establishes that
12the certified service provider is not liable in accordance
13with the agreement. In the absence of probable cause to
14believe that the seller has committed fraud or made a material
15misrepresentation liability relief established by the certified
16service provider, the seller is not subject to audit on the
17transactions processed by the certified service provider.
18A model 1 seller is subject to audit for transactions not
19processed by the certified service provider. The director is
20authorized to perform a system check of the model 1 seller and
21review the seller’s procedures to determine if the certified
22service provider’s system is functioning properly and the
23extent to which the seller’s transactions are being processed
24by the certified service provider.
25DIVISION IV
26AUTHORITY TO CANCEL VARIOUS PERMITS ISSUED BY THE DEPARTMENT
27 Sec. 41. Section 421.17, Code 2022, is amended by adding the
28following new subsection:
29 NEW SUBSECTION. 37. Notwithstanding any other provision
30of law to the contrary, to cancel the following permits upon
31verification by the department of revenue the permits are no
32longer in use: income tax withholding, sales or use tax, or
33motor fuel tax.
34DIVISION V
35ECONOMIC DEVELOPMENT AUTHORITY SALES AND USE TAX REFUND
-17-1INCENTIVES
2 Sec. 42. Section 15.331A, subsection 2, Code 2022, is
3amended to read as follows:
42. To receive the refund, a claim shall be filed by the
5eligible business with the department of revenue as follows:
6a. The contractor or subcontractor shall state under oath,
7on forms provided by the department of revenue, the amount of
8the sales of tangible personal property or services rendered,
9furnished, or performed including water, sewer, gas, and
10electric utility services upon which sales or use tax has been
11paid prior to the project contract completion, and shall file
12the forms with the eligible business before final settlement
13is made.
14b. The eligible business shall, not more than one year after
15project contract completion, make application to the department
16of revenue for any refund of the amount of the sales and use
17taxes paid pursuant to chapter 423 upon any tangible personal
18property, or services rendered, furnished, or performed,
19including water, sewer, gas, and electric utility services.
20The application shall be made in the manner and upon forms to
21be provided by the department of revenue, and the department of
22revenue shall audit the claim and, if approved, issue a warrant
23to the eligible business in the amount of the sales or use tax
24which has been paid to the state of Iowa under a contract. The
25application must be made within one year after the project
26completion date. A claim filed by the eligible business in
27accordance with this section shall not be denied by reason of a
28limitation provision set forth in chapter 421 or 423.
29c. The eligible business shall inform the department of
30revenue in writing after project contract completion. For
31purposes of this section, “project completion” means the
32first date upon which the average annualized production of
33finished product for the preceding ninety-day period at the
34manufacturing facility operated by the eligible business is
35at least fifty percent of the initial design capacity of the
-18-1facility.
2 Sec. 43. Section 15.331A, Code 2022, is amended by adding
3the following new subsection:
4 NEW SUBSECTION. 4. For purposes of this section, “contract
5completion” means the date of completion of a written contract
6relating to the construction or equipping of the facility that
7is part of the project of the eligible business.
8 Sec. 44. Section 15.331C, subsections 1 and 2, Code 2022,
9are amended to read as follows:
101. An In lieu of the sales and use tax refund provided
11in section 15.331A, an eligible business may claim a tax
12credit in an amount equal to the sales and use taxes paid by a
13third-party developer under chapter 423 for gas, electricity,
14water, or sewer utility services, goods, wares, or merchandise,
15or on services rendered, furnished, or performed to or for a
16contractor or subcontractor and used in the fulfillment of a
17written contract relating to the construction or equipping of
18a facility of the eligible business. Taxes attributable to
19intangible property and furniture and furnishings shall not
20be included, but taxes attributable to racks, shelving, and
21conveyor equipment to be used in a warehouse or distribution
22center shall be included. Any credit in excess of the tax
23liability for the tax year may be credited to the tax liability
24for the following seven years or until depleted, whichever
25occurs earlier. An eligible business may elect to receive a
26refund of all or a portion of an unused tax credit.
272. A third-party developer shall state under oath, on
28forms provided by the department of revenue, the amount of
29taxes paid as described in subsection 1 and shall submit such
30forms to the department of revenue. The taxes paid shall be
31itemized to allow identification of the taxes attributable
32to racks, shelving, and conveyor equipment to be used in a
33warehouse or distribution center. The eligible business
34shall make application to the department of revenue in the
35manner and form prescribed by the department of revenue, and
-19-1within the time for applying for a sales and use tax refund
2under section 15.331A.After timely receiving the form from
3the third-party developer and application from the eligible
4business, the department of revenue shall audit the claim
5and, if approved, shall issue a tax credit certificate to the
6eligible business equal to the sales and use taxes paid by a
7third-party developer under chapter 423 for gas, electricity,
8water, or sewer utility services, goods, wares, or merchandise,
9or on services rendered, furnished, or performed to or for a
10contractor or subcontractor and used in the fulfillment of a
11written contract relating to the construction or equipping
12of a facility. The department of revenue shall also issue a
13tax credit certificate to the eligible business equal to the
14taxes paid and attributable to racks, shelving, and conveyor
15equipment to be used in a warehouse or distribution center.
16The aggregate combined total amount of tax refunds under
17section 15.331A for taxes paid and attributable to racks,
18shelving, and conveyor equipment to be used in a warehouse or
19distribution center and of tax credit certificates issued by
20the department of revenue under this section for the taxes paid
21and attributable to racks, shelving, and conveyor equipment
22to be used in a warehouse or distribution center shall not
23exceed five hundred thousand dollars in a fiscal year. If
24an applicant for a tax credit certificate does not receive
25a refund or certificate for the taxes paid and attributable
26to racks, shelving, and conveyor equipment to be used in a
27warehouse or distribution center, the application shall be
28considered in succeeding fiscal years. The eligible business
29shall not claim a tax credit under this section unless a tax
30credit certificate issued by the department of revenue is
31included with the taxpayer’s tax return for the tax year for
32which the tax credit is claimed. A tax credit certificate
33shall contain the eligible business’s name, address, tax
34identification number, the amount of the tax credit, and other
35information deemed necessary by the department of revenue.
-20-1 Sec. 45. Section 15.355, subsection 2, Code 2022, is amended
2by striking the subsection and inserting in lieu thereof the
3following:
42. a. A housing business may claim a refund of the sales
5and use taxes paid under chapter 423 prior to the completion
6of the housing project that are directly related to a housing
7project and specified in the agreement.
8b. To receive a refund, a claim shall be filed by the
9housing business with the department of revenue as follows:
10(1) The contractor or subcontractor shall state under oath,
11on forms provided by the department of revenue, the amount
12of sales and use taxes paid under chapter 423 prior to the
13completion of the housing project that are directly related to
14a housing project and specified in the agreement.
15(2) The contractor or subcontractor shall file the forms
16with the housing business before final settlement is made.
17(3) (a) The housing business shall, after the agreement
18completion date, make application to the department of revenue
19for any refund of the amount of sales and use taxes paid under
20chapter 423 prior to the completion of the housing project that
21were directly related to a housing project and specified in the
22agreement. The application shall be made in the manner and
23upon forms to be provided by the department of revenue. The
24department of revenue shall audit the claim and, if approved,
25issue a warrant to the housing business. The application
26must be made within one year after the agreement completion
27date. A claim filed by the housing business in accordance with
28this subsection shall not be denied by reason of a limitation
29provision set forth in chapter 421 or 423.
30(b) For purposes of this subparagraph, “agreement completion
31date” means the date on which the authority notifies the
32department of revenue that all applicable requirements of the
33agreement entered into pursuant to section 15.354, subsection
343, paragraph “a”, and all applicable requirements of this part,
35including the rules the authority and the department of revenue
-21-1adopt pursuant to section 15.356, are satisfied.
2c. A contractor or subcontractor who willfully makes a
3false claim under oath in violation of the provisions of this
4subsection shall be guilty of a simple misdemeanor and in
5addition to any other penalty, the contractor or subcontractor
6shall be liable for the payment of the tax and any applicable
7penalty and interest.
8 Sec. 46. EFFECTIVE DATE. This division of this Act, being
9deemed of immediate importance, takes effect upon enactment.
10 Sec. 47. APPLICABILITY. This division of this Act applies
11to claims for refunds filed on or after the effective date of
12this division of this Act.
13DIVISION VI
14MOTOR FUEL REPORTING REQUIREMENT — PENALTY
15 Sec. 48. Section 452A.33, subsection 1, paragraph c, Code
162022, is amended to read as follows:
17c. (1) The retail dealer shall prepare and submit file
18 the report with the department in a manner and according to
19procedures required by the department in compliance with
20section 452A.61. However, the department may require that the
21retail dealer file the report with the department by electronic
22transmission. The department may require that retail dealers
23report to the department on an annual, quarterly, or monthly
24basis. The department, upon application by a retail dealer,
25may grant a reasonable extension of time to file the report.
26(2) If a retail dealer fails to file the report as required
27by this section or fails to maintain records required to file
28the report the department may impose a civil penalty of not
29more than one hundred dollars per occurrence in addition to any
30other penalty provided by law. The penalty amount shall be
31deposited into the general fund of the state.
32DIVISION VII
33MOTOR FUEL TAX TERMINOLOGY MODIFICATIONS
34 Sec. 49. Section 312.1, subsection 1, paragraph b, Code
352022, is amended to read as follows:
-22- 1b. All the net proceeds of the motor fuel tax or license
2 permit fees under chapter 452A.
3 Sec. 50. Section 452A.2, subsections 15, 26, 27, 28, 38, and
446, Code 2022, are amended to read as follows:
515. “Eligible purchaser” means a distributor of motor
6fuel or special fuel or an end user of special fuel who has
7purchased a minimum of two hundred forty thousand gallons of
8special fuel each year in the preceding two years. Eligible
9purchasers who elect to make delayed payments to a licensed
10 permitted supplier shall use electronic funds transfer.
11Additional requirements for qualifying as an eligible purchaser
12shall be established by rule.
1326. “Licensed Permitted compressed natural gas, liquefied
14natural gas, liquefied petroleum gas, and hydrogen dealer”
15means a person in the business of handling untaxed compressed
16natural gas, liquefied natural gas, liquefied petroleum gas, or
17hydrogen who delivers any part of the fuel into a fuel supply
18tank of any motor vehicle.
1927. “Licensed Permitted compressed natural gas, liquefied
20natural gas, liquefied petroleum gas, and hydrogen user” means
21a person licensed permitted by the department who dispenses
22compressed natural gas, liquefied natural gas, liquefied
23petroleum gas, or hydrogen, upon which the special fuel tax has
24not been previously paid, for highway use from fuel sources
25owned and controlled by the person into the fuel supply tank
26of a motor vehicle, or commercial vehicle owned or controlled
27by the person.
2828. “Licensee Permit holder” means a person holding an
29uncanceled supplier’s, restrictive supplier’s, importer’s,
30exporter’s, dealer’s, user’s, or blender’s license permit
31 issued by the department under this subchapter or any prior
32motor fuel tax law or any other person who possesses fuel for
33which the tax has not been paid.
3438. “Restrictive supplier” means a person who imports motor
35fuel or undyed special fuel into this state in tank wagons or
-23-1in small tanks not otherwise licensed permitted as an importer.
246. “Use”, with respect to liquefied petroleum gas, means
3the receipt, delivery, or placing of liquefied petroleum gas
4by a licensed permitted liquefied petroleum gas user into a
5fuel supply tank of a motor vehicle while the vehicle is in the
6state. With respect to natural gas used as a special fuel,
7“use” means the receipt, delivery, or placing of the natural gas
8into equipment for compressing the gas for subsequent delivery
9into the fuel supply tank of a motor vehicle while the vehicle
10is in the state. With respect to hydrogen used as a special
11fuel, “use” means the receipt, delivery, or placing of hydrogen
12by a licensed permitted hydrogen user into a fuel supply tank
13of a motor vehicle while the vehicle is in the state.
14 Sec. 51. Section 452A.3, subsection 8, paragraph a,
15subparagraphs (2) and (5), Code 2022, are amended to read as
16follows:
17(2) Tax shall not be paid when the sale of alcohol occurs
18within a terminal from an alcohol manufacturer to an Iowa
19licensed permitted supplier. The tax shall be paid by the Iowa
20licensed permitted supplier when the invoiced gross gallonage
21of the alcohol or the alcohol part of ethanol blended gasoline
22is withdrawn from a terminal for delivery in this state.
23(5) Any other person who possesses taxable fuel upon which
24the tax has not been paid to a licensee permit holder.
25 Sec. 52. Section 452A.4, Code 2022, is amended to read as
26follows:
27452A.4 Supplier’s, restrictive supplier’s, importer’s,
28exporter’s, dealer’s, and user’s license permit.
291. It shall be unlawful for any person to sell motor fuel or
30undyed special fuel within this state or to otherwise act as
31a supplier, restrictive supplier, importer, exporter, dealer,
32or user unless the person holds an uncanceled license permit
33 issued by the department. To procure a license permit, a
34supplier, restrictive supplier, importer, exporter, dealer, or
35user shall file with the department an application signed under
-24-1penalty for false certificate setting forth and complying with
2all of the following:
3a. The name under which the licensee permit holder will
4transact business in this state.
5b. The location, with street number address, of the
6principal office or place of business of the licensee permit
7holder within this state.
8c. The name and complete residence address of the owner
9or the names and addresses of the partners, if the licensee
10 permit holder is a partnership, or the names and addresses of
11the principal officers, if the licensee permit holder is a
12corporation or association.
13d. A dealer’s or user’s license permit shall be required for
14each separate place of business or location where compressed
15natural gas, liquefied natural gas, liquefied petroleum gas, or
16hydrogen is delivered or placed into the fuel supply tank of a
17motor vehicle.
18e. An applicant for an exporter’s license permit shall
19provide verification as required by the department that the
20applicant has the appropriate license permit valid in the state
21or states into which the motor fuel or undyed special fuel will
22be exported.
232. a. The department may deny the issuance of a license
24 permit to an applicant who is substantially delinquent in
25the payment of a tax due, or the interest or penalty on the
26tax, administered by the department. If the applicant is a
27partnership, a license permit may be denied if a partner owes
28any delinquent tax, interest, or penalty. If the applicant is
29a corporation, a license permit may be denied if any officer
30having a substantial legal or equitable interest in the
31ownership of the corporation owes any delinquent tax, interest,
32or penalty of the applicant corporation.
33b. The department may deny the issuance of a license permit
34 if an application for a license permit to transact business as
35a supplier, restrictive supplier, importer, exporter, dealer,
-25-1or user in this state is filed by a person whose license permit
2 or registration has been canceled for cause at any time under
3the provisions of this chapter or any prior motor fuel tax law,
4if the department has reason to believe that the application is
5not filed in good faith, or if the application is filed by some
6person as a subterfuge for the real person in interest whose
7license permit or registration has been canceled for cause
8under the provisions of this chapter or any prior motor fuel
9tax law. The applicant shall be given fifteen days’ notice in
10writing of the date of the hearing and shall have the right to
11appear in person or by counsel and present testimony.
123. a. The application in proper form having been accepted
13for filing, and the other conditions and requirements of
14this section and subchapter IV having been complied with,
15the department shall issue to the applicant a license permit
16 to transact business as a supplier, restrictive supplier,
17importer, exporter, dealer, or user in this state. The license
18 permit shall remain in full force and effect until canceled as
19provided in this chapter.
20b. The license permit shall not be assignable and shall be
21valid only for the licensee permit holder in whose name it is
22issued.
23c. The department shall keep and file all applications and
24bonds and a record of all licensees permit holders.
25 Sec. 53. Section 452A.6, Code 2022, is amended to read as
26follows:
27452A.6 Ethanol blended gasoline and other products —
28blender’s license permit.
291. a. A person other than a supplier, restrictive supplier,
30or importer licensed permitted under this subchapter, who
31blends gasoline with ethanol as defined in section 214A.1 in
32order to formulate ethanol blended gasoline, shall obtain a
33blender’s license permit.
34b. A person who blends two or more special fuel products
35or sells one hundred percent biofuel shall obtain a blender’s
-26-1license permit.
22. A blender’s license permit shall be obtained by following
3the procedure under section 452A.4 and the blender’s license
4 permit is subject to the same restrictions as contained in that
5section.
63. A blender required to obtain a license permit pursuant
7to this section shall maintain records as required by section
8452A.10 as to motor fuel, ethanol, ethanol blended gasoline,
9and special fuels.
10 Sec. 54. Section 452A.6A, subsection 3, paragraph b, Code
112022, is amended to read as follows:
12b. Affect the blender’s license permit requirements under
13section 452A.6.
14 Sec. 55. Section 452A.7, Code 2022, is amended to read as
15follows:
16452A.7 Foreign suppliers.
17The director, upon application, may authorize the
18collection and reporting of the tax by any supplier not having
19jurisdictional connections with this state. A foreign supplier
20shall be issued a license permit to collect and report the tax
21and shall be subject to the same regulations and requirements
22as suppliers having a jurisdictional connection with the state,
23or other regulations and agreements as prescribed by the
24director.
25 Sec. 56. Section 452A.8, subsection 1, paragraph a, Code
262022, is amended to read as follows:
27a. A statement of the number of invoiced gallons of motor
28fuel and undyed special fuel withdrawn from the terminal by the
29licensee permit holder within this state during the preceding
30calendar month in such detail as determined by the department.
31This includes on-site blending reports at the terminal.
32 Sec. 57. Section 452A.8, subsection 2, paragraph a,
33unnumbered paragraph 1, Code 2022, is amended to read as
34follows:
35From the total number of invoiced gallons of motor fuel
-27-1or undyed special fuel withdrawn from the terminal by the
2licensee permit holder during the preceding calendar month or
3semimonthly period the following deductions shall be made:
4 Sec. 58. Section 452A.8, subsection 2, paragraph a,
5subparagraph (1), Code 2022, is amended to read as follows:
6(1) The gallonage of motor fuel or undyed special fuel
7withdrawn from a terminal by a licensee permit holder and
8exported outside Iowa.
9 Sec. 59. Section 452A.8, subsection 2, paragraph c, Code
102022, is amended to read as follows:
11c. The tax due under paragraph “b” shall be the amount
12of fuel tax due from the supplier, restrictive supplier, or
13importer for the preceding reporting period. The director
14may require by rule that the payment of taxes by suppliers,
15restrictive suppliers, and importers be made by electronic
16funds transfer. The director may allow a tax float by rule
17where the eligible purchaser is not required to pay the tax
18to the supplier until one business day prior to the date the
19tax is due. A licensed permitted supplier who is unable to
20recover the tax from an eligible purchaser is not liable for
21the tax, upon proper documentation, and may credit the amount
22of unpaid tax against a later remittance of tax. Under this
23provision, a supplier does not qualify for a credit if the
24purchaser did not elect to use the eligible purchaser status,
25or otherwise does not qualify to be an eligible purchaser. To
26qualify for the credit, the supplier must notify the department
27of the uncollectible account no later than ten calendar days
28after the due date for payment of the tax. If a supplier
29sells additional motor fuel or undyed special fuel to a
30delinquent eligible purchaser after notifying the department
31that the supplier has an uncollectible debt with that eligible
32purchaser, the limited liability provision does not apply to
33the additional fuel. The supplier is liable for tax collected
34from the purchaser.
35 Sec. 60. Section 452A.8, subsection 2, paragraph e,
-28-1subparagraphs (1), (2), (3), and (4), Code 2022, are amended
2to read as follows:
3(1) For purposes of this paragraph “e”, “dealer” or “user”
4means a licensed permitted compressed natural gas, liquefied
5natural gas, liquefied petroleum gas, and hydrogen dealer or
6user and “fuel” means compressed natural gas, liquefied natural
7gas, liquefied petroleum gas, or hydrogen.
8(2) The tax for compressed natural gas, liquefied natural
9gas, liquefied petroleum gas, and hydrogen delivered by a
10licensed permitted dealer for use in this state shall attach at
11the time of the delivery and shall be collected by the dealer
12from the purchaser and paid to the department as provided in
13this chapter. The tax, with respect to compressed natural gas,
14liquefied natural gas, liquefied petroleum gas, and hydrogen
15acquired by a purchaser in any manner other than by delivery by
16a licensed permitted dealer into a fuel supply tank of a motor
17vehicle, attaches at the time of the use of the fuel and shall
18be paid over to the department by the purchaser as provided in
19this chapter.
20(3) The department shall adopt rules governing the
21dispensing of compressed natural gas, liquefied natural
22gas, liquefied petroleum gas, and hydrogen by licensed
23 permitted dealers and licensed permitted users. The director
24may require by rule that reports and returns be filed by
25electronic transmission. The department shall require that
26all pumps located at dealer locations and user locations
27through which liquefied petroleum gas can be dispensed shall
28be metered, inspected, tested for accuracy, and sealed and
29licensed permitted by the department of agriculture and land
30stewardship, and that fuel delivered into the fuel supply tank
31of any motor vehicle shall be dispensed only through tested
32metered pumps and may be sold without temperature correction
33or corrected to a temperature of 60 degrees Fahrenheit. If
34the metered gallonage is to be temperature-corrected, only
35a temperature-compensated meter shall be used. Natural gas
-29-1used as fuel shall be delivered into compressing equipment
2through sealed meters certified for accuracy by the department
3of agriculture and land stewardship. Hydrogen used as fuel
4shall be delivered into the fuel supply tank of any motor
5vehicle through sealed meters certified for accuracy by the
6department of agriculture and land stewardship. The department
7of agriculture and land stewardship may adopt rules pursuant
8to chapter 17A relating to the certification and accuracy of
9meters used to deliver hydrogen.
10(4) (a) All gallonage which is not for highway use,
11dispensed through metered pumps as licensed permitted under
12this section on which fuel tax is not collected, must be
13substantiated by exemption certificates as provided by the
14department or by valid exemption certificates provided by
15the dealers, signed by the purchaser, and retained by the
16dealer. A “valid exemption certificate provided by a dealer”
17is an exemption certificate which is in the form prescribed by
18the director to assist a dealer to properly account for fuel
19dispensed for which tax is not collected and which is complete
20and correct according to the requirements of the director.
21(b) For the privilege of purchasing liquefied petroleum
22gas, dispensed through licensed permitted metered pumps, on a
23basis exempt from the tax, the purchaser shall sign exemption
24certificates for the gallonage claimed which is not for highway
25use.
26(c) The department shall disallow all sales of gallonage
27which is not for highway use unless proof is established by the
28certificate. Exemption certificates shall be retained by the
29dealer for a period of three years.
30 Sec. 61. Section 452A.8, subsections 3 and 4, Code 2022, are
31amended to read as follows:
323. For the purpose of determining the amount of the tax
33liability on alcohol blended to produce ethanol blended
34gasoline or a blend of special fuel products, each licensed
35 permitted blender shall, not later than the last day of each
-30-1month following the month in which the blending is done, file
2with the department a monthly return, signed under penalty for
3false certificate, containing information required by rules
4adopted by the director. The director may require by rule that
5reports and returns be filed by electronic transmission.
64. A person who possesses fuel or uses fuel in a motor
7vehicle upon which no tax has been paid by a licensee permit
8holder in this state is subject to reporting and paying the
9applicable tax. The director may require by rule that reports
10and returns be filed by electronic transmission.
11 Sec. 62. Section 452A.9, Code 2022, is amended to read as
12follows:
13452A.9 Returns from persons not licensed permitted as
14suppliers, restrictive suppliers, importers, or blenders.
15Every person other than a licensed permitted supplier,
16restrictive supplier, importer, or blender, who purchases,
17brings into this state, or otherwise acquires within this state
18motor fuel or undyed special fuel, not otherwise exempted,
19which the person has knowingly not paid or incurred liability
20to pay either to a licensee permit holder or to a dealer
21the motor fuel or special fuel tax, shall be subject to
22the provisions of this subchapter that apply to suppliers,
23restrictive suppliers, importers, and blenders of motor fuel or
24undyed special fuel and shall file the same returns and make
25the same tax payments and be subject to the same penalties
26for delinquent filing or nonfiling or delinquent payment or
27nonpayment as apply to suppliers, restrictive suppliers,
28importers, and blenders.
29 Sec. 63. Section 452A.12, subsection 1, Code 2022, is
30amended to read as follows:
311. A serially numbered manifest shall be carried on
32every vehicle, except small tank wagons, while in use in
33transportation service, on which shall be entered the following
34information as to the cargo of motor fuel or special fuel being
35moved in the vehicle: The date and place of loading, the place
-31-1to be unloaded, the person for whom it is to be delivered,
2the nature and kind of product, the amount of product, and
3other information required by the department. The manifest
4for small tank wagons shall be retained at the home office.
5The manifest covering each load transported, upon consummation
6of the delivery, shall be completed by showing the date and
7place of actual delivery and the person to whom actually
8delivered and shall be kept as a permanent record for a period
9of three years. However, the record of the manifest of past
10cargoes need not be carried on the conveyance but shall be
11preserved by the carrier for inspection by the department. A
12carrier subject to this subsection when distributing for a
13licensee permit holder may with the approval of the department
14substitute the loading and delivery evidence required in
15subsection 2 for the manifest.
16 Sec. 64. Section 452A.15, subsection 1, paragraph c, Code
172022, is amended to read as follows:
18c. If a person required under this section to file
19transportation reports is a licensee permit holder under
20this subchapter and if the information required in the
21transportation report is contained in any other report rendered
22by the person under this subchapter, a separate transportation
23report of that information shall not be required.
24 Sec. 65. Section 452A.21, subsection 1, Code 2022, is
25amended to read as follows:
261. Persons not licensed permitted under this subchapter
27who blend motor fuel and alcohol to produce ethanol blended
28gasoline may file for a refund for the difference between taxes
29paid on the motor fuel purchased to produce ethanol blended
30gasoline and the tax due on the ethanol blended gasoline
31blended. If, during any month, a person licensed permitted
32 under this subchapter uses tax paid motor fuel to blend ethanol
33blended gasoline and the refund otherwise due under this
34section is greater than the licensee’s total tax liability of
35the permit holder for that month, the licensee permit holder is
-32-1entitled to a credit. The claim for credit shall be filed as
2part of the return required by section 452A.8.
3 Sec. 66. Section 452A.22, Code 2022, is amended to read as
4follows:
5452A.22 Tax collected on exempt fuel.
6If an amount of tax represented by a licensee permit
7holder to a purchaser as constituting tax due is computed
8upon gallonage that is not taxable or the amount represented
9is in excess of the actual amount of tax due and the amount
10represented is actually paid by the purchaser to the licensee
11 permit holder, the excess amount of tax paid shall be returned
12to the purchaser by the licensee permit holder. If the
13licensee permit holder fails to return the excess tax paid to
14the purchaser, the amount which the purchaser has paid to the
15licensee permit holder shall be remitted by the licensee permit
16holder to the department.
17 Sec. 67. Section 452A.52, subsection 2, Code 2022, is
18amended to read as follows:
192. Any person who is unable to display either of the permits
20or the license permit provided in section 452A.53 and brings
21into the state in the fuel supply tanks of a commercial motor
22vehicle more than thirty gallons of motor fuel or special fuel
23in violation of subsection 1 commits a simple misdemeanor
24punishable as a scheduled violation under section 805.8A,
25subsection 13, paragraph “c”.
26 Sec. 68. Section 452A.53, Code 2022, is amended to read as
27follows:
28452A.53 Permit or license.
291. The advance arrangements referred to in section 452A.52
30shall include the procuring of a permanent international fuel
31tax agreement permit or license or single-trip interstate
32permit.
332. Persons choosing not to make advance arrangements with
34the state department of transportation by procuring a permit or
35license are not relieved of their responsibility to purchase
-33-1motor fuel and special fuel commensurate with their use of the
2state’s highway system. When there is reasonable cause to
3believe that there is evasion of the fuel tax on commercial
4motor vehicles, the state department of transportation may
5audit persons not holding a permit or license. Audits shall
6be conducted pursuant to section 452A.55 and in accordance
7with international fuel tax agreement guidelines. The state
8department of transportation shall collect all taxes due and
9refund any overpayment.
103. A permanent international fuel tax agreement permit
11or license may be obtained upon application to the state
12department of transportation. A fee of ten dollars shall be
13charged for each permit or license issued. The holder of
14a permanent permit or license shall have the privilege of
15bringing into this state in the fuel supply tanks of commercial
16motor vehicles any amount of motor fuel or special fuel to be
17used in the operation of the vehicles and for that privilege
18shall pay Iowa motor fuel or special fuel taxes as provided in
19section 452A.54.
204. A single-trip interstate permit may be obtained from the
21state department of transportation. A fee of twenty dollars
22shall be charged for each individual single-trip interstate
23permit issued. A single-trip interstate permit is subject to
24the following provisions and limitations:
25a. The permit shall be issued and be valid for seventy-two
26consecutive hours, except in emergencies, or until the time of
27leaving the state, whichever first occurs.
28b. The permit shall cover only one commercial motor vehicle
29and is not transferable.
30c. Single-trip interstate fuel permits may be made available
31from sources other than indicated in this section at the
32discretion of the state department of transportation.
335. Each vehicle operated into or through Iowa in interstate
34operations using motor fuel or special fuel acquired in any
35other state shall carry in or on the vehicle a duplicate or
-34-1evidence of the permit or license required in this section.
2A fee not to exceed fifty cents shall be charged for each
3duplicate or other evidence of a permit or license issued.
4 Sec. 69. Section 452A.54, subsections 2, 4, and 5, Code
52022, are amended to read as follows:
62. Notwithstanding any provision of this chapter to the
7contrary, except as provided in this section, the holder of a
8permanent international fuel tax agreement permit or license
9 may make application to the state department of transportation
10for a refund, not later than the last day of the third month
11following the quarter in which the overpayment of Iowa
12fuel tax paid on excess purchases of motor fuel or special
13fuel was reported as provided in section 452A.8, and which
14application is supported by such proof as the state department
15of transportation may require. The state department of
16transportation shall refund Iowa fuel tax paid on motor fuel or
17special fuel purchased in excess of the amount consumed by such
18commercial motor vehicles in their operation on the highways
19of this state.
204. To determine the amount of fuel taxes due under this
21subchapter and to prevent the evasion thereof, the state
22department of transportation shall require a quarterly report
23on forms prescribed by the state department of transportation.
24It shall be filed not later than the last day of the month
25following the quarter reported, and each quarter thereafter.
26These reports shall be required of all persons who have been
27issued a permit or license under this subchapter and shall
28cover actual operation and fuel consumption in Iowa on the
29basis of the permit or license holder’s average consumption
30of fuel in Iowa, determined by the total miles traveled and
31the total fuel purchased and consumed for highway use by the
32permittee’s or licensee’s permit holder’s commercial motor
33vehicles in the permittee’s or licensee’s entire operation
34of the permit holder in all states to establish an overall
35miles per gallon ratio, which ratio shall be used to compute
-35-1the gallons used for the miles traveled in Iowa. Failure
2to receive a quarterly report or fuel credentials by mail,
3facsimile transmission, or any other means of delivery does not
4relieve a person from the person’s fuel tax liability or from
5the requirement to display current fuel credentials.
65. Subject to compliance with rules adopted by the
7department, annual reporting may be permitted in lieu of
8quarterly reporting. A licensee permitted permit holder
9allowed to report annually shall maintain records in compliance
10with this chapter.
11 Sec. 70. Section 452A.55, subsection 2, Code 2022, is
12amended to read as follows:
132. The state department of transportation, within a period
14of one year from the issuance of a permanent international fuel
15tax agreement fuel permit or license, may audit the records
16of the permittee or licensee permit holder for the two years
17preceding the issuance of the permit or license. The state
18department of transportation shall collect all taxes due had
19the permittee or licensee been licensed as if the permit holder
20had held a permit for the two years prior to the issuance of
21the permit or license and shall refund any overpayment pursuant
22to section 452A.54. When, as a result of an audit, fuel taxes
23unpaid and due the state of Iowa exceed five hundred dollars,
24the audit shall be at the expense of the person whose records
25are being audited. However, if an audit of records maintained
26under this section is made outside the state of Iowa in a
27state which requires payment of the costs for similar audits
28performed by officials or employees of the other state when
29made in Iowa, then all costs of audits performed outside of
30Iowa in the other state shall be at the expense of the person
31whose records are audited.
32 Sec. 71. Section 452A.60, subsection 1, Code 2022, is
33amended to read as follows:
341. The department of revenue or the state department of
35transportation shall prescribe and furnish all forms, as
-36-1applicable, upon which reports, returns, and applications shall
2be made and claims for refund presented under this chapter
3and may prescribe forms of record to be kept by suppliers,
4restrictive suppliers, importers, exporters, blenders, common
5carriers, contract carriers, licensed permitted compressed
6natural gas, liquefied natural gas, liquefied petroleum gas,
7and hydrogen dealers and users, terminal operators, nonterminal
8storage facility operations, and interstate commercial motor
9vehicle operators.
10 Sec. 72. Section 452A.62, subsection 1, paragraph a,
11subparagraph (2), Code 2022, is amended to read as follows:
12(2) A licensed permitted compressed natural gas, liquefied
13natural gas, liquefied petroleum gas, or hydrogen dealer,
14user, or person supplying compressed natural gas, liquefied
15natural gas, liquefied petroleum gas, or hydrogen to a licensed
16 permitted compressed natural gas, liquefied natural gas,
17liquefied petroleum gas, or hydrogen dealer or user.
18 Sec. 73. Section 452A.62, subsection 1, paragraph b, Code
192022, is amended to read as follows:
20b. To examine the records, books, papers, receipts, and
21invoices of any distributor, supplier, restrictive supplier,
22importer, blender, exporter, terminal operator, nonterminal
23storage facility, licensed permitted compressed natural gas,
24liquefied natural gas, liquefied petroleum gas, or hydrogen
25dealer or user, or any other person who possesses fuel
26upon which the tax has not been paid to determine financial
27responsibility for the payment of the taxes imposed by this
28chapter.
29 Sec. 74. Section 452A.65, subsections 2 and 3, Code 2022,
30are amended to read as follows:
312. A report required of licensees permit holders or persons
32operating under subchapter III, upon which no tax is due, is
33subject to a penalty of ten dollars if the report is not timely
34filed with the state department of transportation.
353. If a licensee permit holder or other person sells the
-37-1licensee’s permit holder’s or other person’s business or stock
2of goods or quits the business, the licensee permit holder
3 or other person shall prepare a final return and pay all tax
4due within the time required by law. The immediate successor
5to the licensee permit holder or other person, if any, shall
6withhold sufficient of the purchase price, in money or money’s
7worth, to pay the amount of any delinquent tax, interest, or
8penalty due and unpaid. If the immediate successor of the
9business or stock of goods intentionally fails to withhold
10any amount due from the purchase price as provided in this
11subsection, the immediate successor is personally liable for
12the payment of the taxes, interest, and penalty accrued and
13unpaid on account of the operation of the business by the
14immediate former licensee permit holder or other person,
15except when the purchase is made in good faith as provided
16in section 421.28. However, a person foreclosing on a valid
17security interest or retaking possession of premises under a
18valid lease is not an “immediate successor” for purposes of
19this subsection. The department may waive the liability of
20the immediate successor under this subsection if the immediate
21successor exercised good faith in establishing the amount of
22the previous liability.
23 Sec. 75. Section 452A.67, subsection 1, Code 2022, is
24amended to read as follows:
251. The department shall examine the return and enforce
26collection of any amount of tax, penalty, fine, or interest
27over and above the amount shown to be due by the return filed by
28a licensee permit holder as soon as practicable but no later
29than three years after the return is filed. An assessment
30shall not be made covering a period beyond three years after
31the return is filed except that the period for the examination
32and determination of the correct amount of tax is unlimited in
33the case of a false or fraudulent return made with the intent
34to evade tax or in the case of a failure to file a return.
35 Sec. 76. Section 452A.68, Code 2022, is amended to read as
-38-1follows:
2452A.68 Power of department of revenue or the state
3department of transportation to cancel licenses permits.
41. If a licensee permit holder files a false return of
5the data or information required by this chapter, or fails,
6refuses, or neglects to file a return required by this chapter,
7or to pay the full amount of fuel tax as required by this
8chapter, or is substantially delinquent in paying a tax due,
9owing, and administered by the department of revenue, and
10interest and penalty if appropriate, or if the person is a
11corporation and if any officer having a substantial legal or
12equitable interest in the ownership of the corporation owes any
13delinquent tax of the licensee permit holder corporation, or
14interest or penalty on the tax, administered by the department,
15then after ten days’ written notice by mail directed to the
16last known address of the licensee permit holder setting a time
17and place at which the licensee permit holder may appear and
18show cause why the license permit should not be canceled, and
19if the licensee permit holder fails to appear or if upon the
20hearing it is shown that the licensee permit holder failed to
21correctly report or pay the tax, the appropriate state agency
22may cancel the license permit and shall notify the licensee
23 permit holder of the cancellation by mail to the licensee’s
24 last known address of the permit holder.
252. If a licensee permit holder abuses the privileges for
26which the license permit was issued, fails to produce records
27reasonably requested, fails to extend reasonable cooperation
28to the appropriate state agency, or has been suspended for
29nonpayment of fees under chapter 326 and still owes fees to
30the department, the licensee permit holder shall be advised
31in writing of a hearing scheduled to determine if the license
32 permit shall be canceled. The appropriate state agency upon
33the presentation of a preponderance of evidence may cancel a
34license permit for cause.
353. The director of the appropriate state agency may reissue
-39-1a license permit which has been canceled for cause. As a
2condition of reissuance of a license permit, in addition to
3requirements for issuing a new license permit, the director may
4require a waiting period not to exceed ninety days before a
5license permit can be reissued or a new license permit issued.
6The director shall adopt rules specifying those instances for
7which a waiting period will be required.
84. Upon receipt of written request from any licensee
9 permit holder the appropriate state agency shall cancel the
10license permit of the licensee permit holder effective on the
11date of receipt of the request. If, upon investigation, the
12appropriate state agency finds that a licensee permit holder is
13no longer engaged in the activities for which a license permit
14 was issued and has not been so engaged for a period of six
15months, the state agency shall cancel the license permit and
16give thirty days’ notice of the cancellation mailed to the last
17known address of the licensee permit holder.
18 Sec. 77. Section 452A.70, Code 2022, is amended to read as
19follows:
20452A.70 Discontinuance of licensed activity permit —
21liability for taxes and penalties.
22If a licensee permit holder ceases to engage in the state
23in activities for which the person’s license permit was issued
24or discontinues, sells, or transfers the business in which the
25person has carried on that activity the licensee permit holder
26 shall notify the department of revenue, which shall forward
27notice to the state department of transportation, in writing at
28least ten days prior to the time the cessation, discontinuance,
29sale or transfer takes effect. The notice shall give the date
30of proposed cessation or discontinuance, and, in the event of
31a proposed sale or transfer of the business, the date and the
32name and address of the purchaser or transferee. All fuel
33taxes, penalties and interest under this chapter not yet due
34and payable shall, together with any and all interest accruing
35or penalties imposed under this chapter shall become due and
-40-1payable concurrently with the cessation, discontinuances, sale
2or transfer, and it shall be the duty of the licensee permit
3holder to make a report and pay all the fuel taxes, interest,
4and penalties within ten days.
5 Sec. 78. Section 452A.72, subsections 1 and 3, Code 2022,
6are amended to read as follows:
71. If any fuel taxes, penalties, or interest have been
8erroneously or illegally collected by the appropriate state
9agency from a licensee permit holder, the appropriate state
10agency may apply the overpayment against any tax liability
11outstanding on the books of the department against the
12claimant, or shall certify the amount to the director of the
13department of administrative services, who shall draw a warrant
14for the certified amount on the treasurer of state payable to
15the licensee permit holder. The refund shall be paid to the
16licensee permit holder immediately.
173. However, if it is found during an examination by the
18appropriate state agency that a licensee permit holder paid, as
19a result of a mistake, an amount of tax, penalty, or interest
20which was not due, and the mistake is found within three years
21of the overpayment, the appropriate state agency shall credit
22the amount against any penalty, interest or taxes due or shall
23refund the amount to the person.
24 Sec. 79. Section 452A.74, subsection 1, paragraphs e and g,
25Code 2022, are amended to read as follows:
26e. For any person to act as a supplier, restrictive
27supplier, importer, exporter, blender, or compressed natural
28gas, liquefied natural gas, liquefied petroleum gas, or
29hydrogen dealer or user without the required license permit.
30g. For any licensed permitted compressed natural gas,
31liquefied natural gas, liquefied petroleum gas, or hydrogen
32dealer or user to dispense compressed natural gas, liquefied
33natural gas, liquefied petroleum gas, or hydrogen into the fuel
34supply tank of any motor vehicle without collecting the fuel
35tax.
-41-1 Sec. 80. Section 452A.74, subsection 2, Code 2022, is
2amended to read as follows:
32. Any delivery of compressed natural gas, liquefied
4natural gas, liquefied petroleum gas, or hydrogen to a
5compressed natural gas, liquefied natural gas, liquefied
6petroleum gas, or hydrogen dealer or user for the purpose of
7evading the state tax on compressed natural gas, liquefied
8natural gas, liquefied petroleum gas, or hydrogen, into
9facilities other than those licensed permitted under this
10chapter knowing that the fuel will be used for highway use
11shall constitute a violation of this section. Any compressed
12natural gas, liquefied natural gas, liquefied petroleum gas,
13or hydrogen dealer or user for purposes of evading the state
14tax on compressed natural gas, liquefied natural gas, liquefied
15petroleum gas, or hydrogen, who allows a distributor to place
16compressed natural gas, liquefied natural gas, liquefied
17petroleum gas, or hydrogen for highway use in facilities other
18than those licensed permitted under this chapter, shall also be
19deemed in violation of this section.
20 Sec. 81. Section 452A.74A, subsection 2, unnumbered
21paragraph 1, Code 2022, is amended to read as follows:
22A person who imports motor fuel or undyed special fuel
23without a valid importer’s license permit or supplier’s license
24 permit shall be assessed a civil penalty as provided in this
25subsection. However, the owner or operator of the importing
26vehicle shall not be guilty of violating this subsection if it
27is shown by the owner or operator that the owner or operator
28reasonably did not know or reasonably should not have known of
29the illegal importation.
30EXPLANATION
31The inclusion of this explanation does not constitute agreement with
32the explanation’s substance by the members of the general assembly.
33This bill relates to sales, use, and motor vehicle fuel
34taxes administered by the department of revenue including
35distributions to local governments and school districts, the
-42-1liability of sellers, tax refund and tax credit incentives, and
2motor fuel tax reporting and terminology modifications.
3DIVISION I — SALES, USE, AND EXCISE TAX — RETURNS DUE. The
4bill allows a taxpayer to have a combined sales and use tax
5permit and to file a combined return for sales and use taxes.
6Currently, a taxpayer must possess a separate sales and use tax
7permit and file separate sales and use tax returns.
8The bill changes numerous references to the phrase “sales
9tax permit” in the Code to the phrase “sales or use tax
10permit”.
11Currently, a person is required to file a sales or use tax
12return on a quarterly basis. The bill changes this filing
13requirement from a quarterly basis to a monthly basis. The
14bill does allow a person required to file a sales or use tax
15return and who collects less than $1,200 in sales or use tax in
16a calendar year, to file a return once a year on or before the
17last day of the month following the close of the calendar year.
18The bill allows certain persons required to collect sales
19or use tax who do not meet the definition of a “retailer
20maintaining a business in this state” in Code section
21423.1(48)(a)(1), to be issued only one sales or use tax permit.
22The bill allows the director of revenue, if necessary, to
23ensure the payment of sales or use tax, to require a sales or
24use tax return be filed on a different basis other than on a
25monthly basis.
26The bill strikes a provision allowing a person required to
27file a sales or use tax return to take a credit against the
28total quarterly amount of tax due, upon a proper showing of
29necessity, allowing for the balance of tax due to be paid up to
3030 days after the return was due.
31The bill strikes a provision requiring a seller, who
32collects more than $30,000 of sales or use tax in the preceding
33calendar year, to make additional remittances to the state
34under the rules adopted by the director of revenue.
35DIVISION II — DISTRIBUTIONS OF REVENUE TO LOCAL GOVERNMENTS
-43-1AND SCHOOL DISTRICTS. Currently, by August 15, the department
2of revenue estimates the local option sale tax (LOST) and
3securing an advanced vision for education (SAVE) tax amounts
4that will be transferred to each local government or school
5district on a fiscal year and monthly basis. The transfer
6estimates may be revised for the year and remaining months by
7the director of revenue if the estimates are incorrect.
8Commencing with the fiscal year beginning July 1, 2022, the
9bill changes the LOST and SAVE transfer amount procedures, by
10requiring the department of revenue to transfer the actual
11LOST and SAVE taxes collected that are attributable to each
12local government or school district to that local government
13or school district.
14The bill also creates a transition procedure for the LOST
15and SAVE tax amounts transferred during July and August 2022.
16Under the transition procedure, the department of revenue shall
17transfer estimated amounts of LOST and SAVE to each local
18government or school district for the months of July, August,
19and September 2022. However, beginning with the October 2022
20transfer, the department of revenue shall transfer the actual
21amount of tax attributable to each local government or school
22district for the LOST and SAVE tax remitted in September 2022.
23The bill requires any adjustment amount that is necessary to
24the July, August, or September 2022 estimated transfer amounts
25be made by the close of business on December 30, 2022.
26DIVISION III — LIABILITY OF SELLERS USING CERTIFIED
27SERVICE PROVIDER. The bill specifies that a seller of personal
28property or services who contracts with a certified service
29provider is not liable to the state for sales or use tax due on
30transactions processed by the certified service provider unless
31the certified service provider establishes it is not liable
32in accordance with the agreement with the seller. The bill
33specifies that if the certified service provider is liable for
34the sales or use tax due, the seller is not subject to audit
35on transactions processed by the certified service provider.
-44-1“Certified service provider” is defined in Code section 423.1
2to mean an agent certified under the agreement to perform
3all of a seller’s sales or use tax functions, other than the
4seller’s obligation to remit tax on its own purchases.
5DIVISION IV — AUTHORITY TO CANCEL VARIOUS PERMITS ISSUED
6BY THE DEPARTMENT. The bill allows the director of the
7department of revenue to cancel the following tax permits if
8the department determines the permits are no longer in use:
9income tax withholding, sales or use tax, or motor fuel tax.
10DIVISION V — ECONOMIC DEVELOPMENT AUTHORITY SALES AND USE
11TAX REFUND INCENTIVES. Currently, for certain sales or use
12tax refund incentives in Code section 15.331A administered
13by the department of economic development authority, an
14eligible business must apply for a sales or use tax refund for
15items purchased prior to the “project” completion date. The
16bill changes the refund procedures by requiring an eligible
17business to apply for such sales or use tax refunds for items
18purchased prior to the completion of the “contract” rather than
19completion of the “project”. The bill also requires such an
20application be made within one year of the project completion
21date, and that the department of revenue be informed in writing
22after the contract completion. The bill defines “contract
23completion” as the date of completion of a written contract
24relating to the construction or equipping of the facility that
25is part of the project of the eligible business.
26For the third-party developer tax credit in Code section
2715.331C relating to a tax credit for sales and use taxes paid
28by a third-party developer, the bill specifies that this credit
29is in lieu of the sales and use tax refund tax incentive
30provided in Code section 15.331A.The bill also provides
31that the eligible business shall make an application to the
32department of revenue within one year of the project completion
33date, and that the department be informed in writing after
34the contract completion. The bill requires the department
35of revenue to audit any third-party developer tax credit
-45-1claim, prior to issuing a third-party developer tax credit
2certificate.
3The bill makes changes to the procedures for workforce
4housing tax incentives in Code section 15.355. The bill
5permits a housing business to claim a refund of the sales
6and use taxes paid prior to the completion of the housing
7project that are directly related to the housing project and
8specified in an agreement. In order to receive the sales and
9use tax refund, the bill requires a contractor or subcontractor
10working on the housing project to submit a form under oath
11stating the amount of sales and use taxes paid prior to the
12housing project. The bill makes it a simple misdemeanor if a
13contractor or subcontractor willfully makes a false claim under
14oath in relating to the workforce sales and use tax refund.
15The bill then requires, after the agreement completion date,
16the housing business to make an application to the department
17of revenue for any sales and use tax refund. The bill defines
18“agreement completion date” to mean the date the economic
19development authority notifies the department of revenue that
20all applicable requirements of the agreement have been met.
21The bill also requires the department of revenue to audit the
22claim prior to issuing the sales and use tax refund.
23This division takes effect upon enactment and applies to
24claims for refunds filed on or after the effective date of the
25bill.
26DIVISION VI — MOTOR FUEL REPORTING REQUIREMENT — PENALTY.
27The bill specifies that each motor fuel retail dealer shall
28file a report with the department of revenue detailing their
29total motor fuel gallonage within a reporting period in the
30manner required by the department and in compliance within
31the time frames established in Code section 452A.61. The
32bill permits the department of revenue to require a retail
33dealer to file such a report with the department by electronic
34transmission. The bill allows the department of revenue to
35impose a civil penalty on the retail dealer, not to exceed
-46-1$100, for each instance a retail dealer fails to timely file
2a report or fails to maintain records required to file the
3report.
4DIVISION VII — MOTOR FUEL TAX TERMINOLOGY MODIFICATIONS.
5The bill modifies terms in Code chapter 452A (motor fuel and
6special fuel taxes). The bill substitutes the term “permit”
7for the term “license” wherever the term “license” appears. By
8substituting the term “permit” for the term “license”, the bill
9also strikes related terms to “license” including “licensed”
10and “licensee” and substitutes “permitted” and “permit holder”
11in lieu of “licensed” and “licensee”.
-47-jm/jh
2administered by the department of revenue including
3distributions to local governments and school districts, the
4liability of sellers, tax refund and tax credit incentives,
5and motor fuel tax reporting and terminology modifications,
6and providing penalties, and including effective date and
7applicability provisions.
8BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2SALES, use, and excise tax — returns due
3 Section 1. Section 9C.3, subsection 3, Code 2022, is amended
4to read as follows:
53. The application shall state whether or not the applicant
6has an Iowa retailers sales or use tax permit and if the
7applicant has such permit, shall state the number of such
8permit.
9 Sec. 2. Section 9C.5, Code 2022, is amended to read as
10follows:
119C.5 Issuance of license.
12Upon receiving an application for a transient merchant’s
13license, the secretary of state shall investigate or cause to
14be investigated, the reputation and character of the applicant.
15If, upon making such investigation, the secretary of state is
16satisfied that the statements and representations contained in
17the application are true, and that the applicant is of good
18reputation and character, and the holder of an Iowa retailer’s
19 sales or use tax permit, and if a foreign corporation, has
20authority to do business in the state of Iowa, the secretary
21shall issue to the applicant a license as a transient merchant
22upon payment of the fee as herein prescribed for the period of
23time requested in said application and for use at the location
24and place where it is stated in said application the sale will
25be held or the business conducted, both of which shall be set
26out in said license. Such license shall be valid only for the
27period of time and at the location and place described therein.
28 Sec. 3. Section 99G.30A, subsection 2, paragraph c, Code
292022, is amended to read as follows:
30c. Frequency of deposits and quarterly monthly reports of
31the monitor vending machine excise tax with the department of
32revenue are governed by the tax provisions in section 423.31.
33Monitor vending machine excise tax collections shall not be
34included in computation of the total tax to determine frequency
35of filing under section 423.31.
-1-1 Sec. 4. Section 321.105A, subsection 4, paragraph b, Code
22022, is amended to read as follows:
3b. Section 422.25, subsection 4, sections 422.30, 422.67,
4and 422.68, section 422.69, subsection 1, sections 422.70,
5422.71, 422.72, 422.74, and 422.75, section 423.14, subsection
62, and sections 423.23, 423.24, 423.25, 423.32, 423.33, 423.35,
7423.37 through 423.42, 423.45, and 423.47, consistent with the
8provisions of this section, apply with respect to the fees
9for new registration authorized under this section in the
10same manner and with the same effect as if the fees for new
11registration were retail use taxes within the meaning of those
12statutes.
13 Sec. 5. Section 421.26, Code 2022, is amended to read as
14follows:
15421.26 Personal liability for tax due.
16If a licensee or other person under section 452A.65, a
17retailer or purchaser under chapter 423A, 423B, 423C, 423D,
18or 423E, or section 423.14, 423.14A, 423.29, 423.31, 423.32,
19 or 423.33, or a user under section 423.34, or a permit holder
20or licensee under section 453A.13, 453A.16, or 453A.44 fails
21to pay a tax under those sections when due, an officer of a
22corporation or association, notwithstanding section 489.304,
23a member or manager of a limited liability company, or a
24partner of a partnership, having control or supervision of
25or the authority for remitting the tax payments and having
26a substantial legal or equitable interest in the ownership
27of the corporation, association, limited liability company,
28or partnership, who has intentionally failed to pay the tax
29is personally liable for the payment of the tax, interest,
30and penalty due and unpaid. However, this section shall
31not apply to taxes on accounts receivable. The dissolution
32of a corporation, association, limited liability company,
33or partnership shall not discharge a person’s liability for
34failure to remit the tax due.
35 Sec. 6. Section 423.2, subsection 1, paragraph b, Code 2022,
-2-1is amended to read as follows:
2b. Sales of building materials, supplies, and equipment
3to owners, contractors, subcontractors, or builders for the
4erection of buildings or the alteration, repair, or improvement
5of real property are retail sales of tangible personal property
6in whatever quantity sold. Where the owner, contractor,
7subcontractor, or builder is also a retailer holding a retail
8 sales or use tax permit and transacting retail sales of
9building materials, supplies, and equipment, the person shall
10purchase such items of tangible personal property without
11liability for the tax if such property will be subject to the
12tax at the time of resale or at the time it is withdrawn from
13inventory for construction purposes. The sales tax shall be
14due in the reporting period when the materials, supplies,
15and equipment are withdrawn from inventory for construction
16purposes or when sold at retail. The tax shall not be due when
17materials are withdrawn from inventory for use in construction
18outside of Iowa and the tax shall not apply to tangible
19personal property purchased and consumed by the manufacturer as
20building materials in the performance by the manufacturer or
21its subcontractor of construction outside of Iowa. The sale
22of carpeting is not a sale of building materials. The sale of
23carpeting to owners, contractors, subcontractors, or builders
24shall be treated as the sale of ordinary tangible personal
25property and subject to the tax imposed under this subsection
26and the use tax.
27 Sec. 7. Section 423.3, subsection 39, paragraph a,
28subparagraph (2), Code 2022, is amended to read as follows:
29(2) The sale of all or substantially all of the tangible
30personal property, or specified digital products, or services
31held or used by a seller in the course of the seller’s trade
32or business for which the seller is required to hold a sales
33or use tax permit when the seller sells or otherwise transfers
34the trade or business to another person who shall engage in a
35similar trade or business.
-3-1 Sec. 8. Section 423.3, subsection 80, paragraph d, Code
22022, is amended to read as follows:
3d. Subject to the limitations in paragraph “c”, where the
4owner, contractor, subcontractor, or builder is also a retailer
5holding a retail sales or use tax permit and transacting
6retail sales of building materials, supplies, and equipment,
7the tax shall not be due when materials are withdrawn from
8inventory for use in construction performed for a designated
9exempt entity if an exemption certificate is received from such
10entity.
11 Sec. 9. Section 423.5, subsection 2, Code 2022, is amended
12to read as follows:
132. The excise tax is imposed upon every person using
14the property within this state until the tax has been paid
15directly to the county treasurer, the state department of
16transportation, a retailer, or the department. This tax is
17imposed on every person using the services or the product of
18the services in this state until the user has paid the tax
19either to an Iowa sales or use tax permit holder or to the
20department.
21 Sec. 10. Section 423.14, subsection 2, paragraph b, Code
222022, is amended to read as follows:
23b. The tax upon the use of all tangible personal property
24and specified digital products other than that enumerated in
25paragraph “a”, which is sold by a seller who is a retailer or
26its agent that is not otherwise required to collect sales tax
27under the provisions of this chapter, may be collected by the
28retailer or agent and remitted to the department, pursuant to
29the provisions of paragraph “e”, and sections 423.24, 423.29,
30423.30, 423.32 423.31, and 423.33.
31 Sec. 11. Section 423.14A, subsection 3, paragraph c,
32subparagraph (2), Code 2022, is amended to read as follows:
33(2) A marketplace facilitator shall collect sales and
34use tax on the entire sales price or purchase price paid by
35a purchaser on each Iowa sale subject to sales and use tax
-4-1that is made or facilitated by the marketplace facilitator,
2regardless of whether the marketplace seller for whom an Iowa
3sale is made or facilitated has or is required to have a retail
4 sales or use tax permit or would have been required to collect
5sales and use tax had the sale not been facilitated by the
6marketplace facilitator, and regardless of the amount of the
7sales price or purchase price that will ultimately accrue
8to or benefit the marketplace facilitator, the marketplace
9seller, or any other person. This sales and use tax collection
10responsibility of a marketplace facilitator applies but shall
11not be limited to sales facilitated through a computer software
12application, commonly referred to as in-app purchases, or
13through another specified digital product.
14 Sec. 12. Section 423.31, subsections 1, 3, 5, and 6, Code
152022, are amended to read as follows:
161. a. Each Except as provided in paragraph “b”, each person
17subject to this section and section 423.36 and in accordance
18with the provisions of this section and section 423.36 shall,
19on or before the last day of the month following the close of
20each calendar quarter month during which such person is or
21has become or ceased being subject to the provisions of this
22section and section 423.36, make, sign, and file electronically
23 a return for the calendar quarter month in the form as may be
24required. Returns shall show information relating to sales
25prices including tangible personal property, specified digital
26products, and services converted to the use of such person,
27the amounts of sales prices excluded and exempt from the tax,
28the amounts of sales prices subject to tax, a calculation of
29tax due, and any other information for the period covered by
30the return as may be required. Returns shall be signed by
31the retailer or the retailer’s authorized agent and must be
32certified by the retailer to be correct in accordance with
33forms and rules prescribed by the director. A person required
34to file a sales or use tax return who is unable to do so may
35request permission from the director to file a return by
-5-1another method.
2b. Notwithstanding paragraph “a”, each person subject to
3this section who collects and remits less than one thousand
4two hundred dollars in sales or use tax to the department per
5calendar year may file a return on or before the last day of the
6month following the close of the calendar year.
73. The sales tax forms prescribed by the director shall be
8referred to as “retailers tax deposit”. Deposit forms shall
9be signed by the retailer or the retailer’s duly authorized
10agent, and shall be duly certified by the retailer or agent to
11be correct. The director may authorize incorporated banks and
12trust companies or other depositories authorized by law which
13are depositories or financial agents of the United States,
14or of this state, to receive any sales or use tax imposed
15under this chapter, in the manner, at the times, and under
16the conditions the director prescribes. The director shall
17prescribe the manner, times, and conditions under which the
18receipt of the tax by those depositories is to be treated as
19payment of the tax to the department.
205. a. Upon making application and receiving approval
21from the director, a person and its affiliates that make
22retail sales of tangible personal property, specified digital
23products, or taxable enumerated services may make deposits and
24file a consolidated sales or use tax return for the affiliated
25group, pursuant to rules adopted by the director. A person and
26each affiliate that files a consolidated return are jointly and
27severally liable for all tax, penalty, and interest found due
28for the tax period for which a consolidated return is filed or
29required to be filed.
30b. A business required to file a consolidated sales or use
31 tax return shall file a form entitled “schedule of consolidated
32business locations” with its quarterly sales or use tax
33return that shows the taxpayer’s consolidated permit number,
34the permit number for each Iowa business location, the state
35sales tax amount by business location, and the amount of state
-6-1sales tax due on goods consumed that are not assigned to a
2specific business location. Consolidated quarterly sales or
3use tax returns that are not accompanied by the schedule of
4consolidated business locations form are considered incomplete
5and are subject to penalty under section 421.27.
66. If necessary or advisable in order to insure ensure
7 the payment of the tax, the director may require returns and
8payment of the tax to be made for other than quarterly monthly
9 periods, the provisions of this section or other provision to
10the contrary notwithstanding.
11 Sec. 13. Section 423.31, subsection 2, Code 2022, is amended
12by striking the subsection.
13 Sec. 14. Section 423.33, subsection 1, paragraph a, Code
142022, is amended to read as follows:
15a. If a purchaser fails to pay sales tax to the retailer
16required to collect the tax, then in addition to all of the
17rights, obligations, and remedies provided, a use tax is
18payable by the purchaser directly to the department, and
19sections 423.31, 423.32, 423.37, 423.38, 423.39, 423.40,
20423.41, and 423.42 apply to the purchaser.
21 Sec. 15. Section 423.33, subsection 3, Code 2022, is amended
22to read as follows:
233. Event sponsor’s liability for sales tax. A person
24sponsoring a flea market or a craft, antique, coin, or stamp
25show or similar event shall obtain from every retailer selling
26tangible personal property, specified digital products, or
27taxable services at the event proof that the retailer possesses
28a valid sales or use tax permit or secure from the retailer
29a statement, taken in good faith, that tangible personal
30property, specified digital products, or services offered for
31sale are not subject to sales tax. Failure to do so renders
32a sponsor of the event liable for payment of any sales tax,
33interest, and penalty due and owing from any retailer selling
34property or services at the event. Sections 423.31, 423.32,
35 423.37, 423.38, 423.39, 423.40, 423.41, and 423.42 apply to the
-7-1sponsors. For purposes of this subsection, a “person sponsoring
2a flea market or a craft, antique, coin, or stamp show or similar
3event” does not include a marketplace facilitator as defined in
4section 423.14A, subsection 1, an organization which sponsors
5an event determined to qualify as an event involving casual
6sales pursuant to section 423.3, subsection 39, or the state
7fair or a fair as defined in section 174.1.
8 Sec. 16. Section 423.34, Code 2022, is amended to read as
9follows:
10423.34 Liability of user.
11Any person who uses any tangible personal property,
12specified digital products, or services enumerated in section
13423.2 upon which the use tax has not been paid, either to the
14county treasurer or to a retailer or direct to the department
15as required by this subchapter, shall be liable for the payment
16of tax, and shall on or before the last day of the month next
17succeeding each quarterly monthly period pay the use tax upon
18all tangible personal property, specified digital products,
19or services used by the person during the preceding quarterly
20 monthly period in the manner and accompanied by such returns
21as the director shall prescribe. All of the provisions of
22sections 423.32 423.31 and 423.33 with reference to the returns
23and payments shall be applicable to the returns and payments
24required by this section.
25 Sec. 17. Section 423.36, subsection 4, paragraph b, Code
262022, is amended to read as follows:
27b. If an applicant is making sales outside Iowa for use in
28this state or furnishing services outside Iowa, the product
29or result of which will be used in this state, that applicant
30shall be issued one sales or use tax permit by the department
31applicable to these out-of-state sales or services.
32 Sec. 18. Section 423.36, subsection 4, Code 2022, is amended
33by adding the following new paragraph:
34 NEW PARAGRAPH. c. If an applicant is required to collect
35sales or use tax and is not included in the definition of a
-8-1retailer maintaining a place of business in this state in
2section 423.1, subsection 48, paragraph “a”, subparagraph (1),
3the applicant shall be issued one sales or use tax permit by
4the department regardless of the number of locations from which
5sales are made.
6 Sec. 19. Section 423.36, subsections 7 and 8, Code 2022, are
7amended to read as follows:
87. a. Sellers who are not regularly engaged in selling
9at retail and do not have a permanent place of business, but
10who are temporarily engaged in selling from trucks, portable
11roadside stands, concessionaires at state, county, district,
12or local fairs, carnivals, or the like, shall report and remit
13the sales tax on a temporary seasonal basis, under rules
14the director shall provide for the efficient collection of
15the sales tax. This subsection applies to sellers who are
16temporarily engaged in furnishing services.
17b. Persons engaged in selling tangible personal property,
18specified digital products, or furnishing services shall not
19be required to obtain or retain a sales or use tax permit for a
20place of business at which taxable sales of tangible personal
21property, specified digital products, or taxable performance of
22services will not occur.
238. The provisions of subsection 1, dealing with the lawful
24right of a retailer to transact business, as applicable, apply
25to persons having receipts from furnishing services enumerated
26in section 423.2, except that a person holding a permit
27pursuant to subsection 1 shall not be required to obtain any
28separate sales or use tax permit for the purpose of engaging in
29business involving the services.
30 Sec. 20. Section 423.40, subsections 1, 2, 3, and 5, Code
312022, are amended to read as follows:
321. In addition to the sales or use tax or additional sales
33or use tax, the taxpayer shall pay a penalty as provided in
34section 421.27. The taxpayer shall also pay interest on the
35sales or use tax or additional sales or use tax at the rate
-9-1in effect under section 421.7 for each month counting each
2fraction of a month as an entire month, computed from the date
3the semimonthly or monthly tax deposit form or return was
4required to be filed. The penalty and interest shall be paid
5to the department and disposed of in the same manner as other
6receipts under this subchapter. Unpaid penalties and interest
7may be enforced in the same manner as the taxes imposed by this
8chapter.
92. a. Any person who knowingly sells tangible personal
10property, specified digital products, tickets or admissions
11to places of amusement and athletic events, or gas, water,
12electricity, or communication service at retail, or engages in
13the furnishing of services enumerated in section 423.2, in this
14state without procuring a permit to collect tax, as provided
15in section 423.36, or who violates section 423.24 and the
16officers of any corporation who so act are guilty of a serious
17misdemeanor.
18b. A person who knowingly sells tangible personal property,
19specified digital products, tickets or admissions to places of
20amusement and athletic events, or gas, water, electricity, or
21communication service at retail, or engages in the furnishing
22of services enumerated in section 423.2, in this state after
23the person’s sales or use tax permit has been revoked and
24before it has been restored as provided in section 423.36,
25subsection 6, and the officers of any corporation who so act
26are guilty of an aggravated misdemeanor.
273. A person who willfully attempts in any manner to evade
28any tax imposed by this chapter or the payment of the tax or
29a person who makes or causes to be made a false or fraudulent
30semimonthly or monthly tax deposit form or return with intent
31to evade any tax imposed by subchapter II or III or the payment
32of the tax is guilty of a class “D” felony.
335. A person required to pay sales or use tax, or to make,
34sign, or file a tax deposit form or return or supplemental
35return, who willfully makes a false or fraudulent tax deposit
-10-1form or return, or willfully fails to pay at least ninety
2percent of the tax or willfully fails to make, sign, or file
3the tax deposit form or return, at the time required by law, is
4guilty of a fraudulent practice.
5 Sec. 21. Section 423.45, subsection 4, paragraph b, Code
62022, is amended to read as follows:
7b. The sales tax liability for all sales of tangible
8personal property and specified digital products and all sales
9of services is upon the seller and the purchaser unless the
10seller takes from the purchaser a valid exemption certificate
11stating under penalty of perjury that the purchase is for a
12nontaxable purpose and is not a retail sale as defined in
13section 423.1, or the seller is not obligated to collect tax
14due, or unless the seller takes a fuel exemption certificate
15pursuant to subsection 5. If the tangible personal property,
16specified digital products, or services are purchased tax free
17pursuant to a valid exemption certificate and the tangible
18personal property, specified digital products, or services are
19used or disposed of by the purchaser in a nonexempt manner, the
20purchaser is solely liable for the taxes and shall remit the
21taxes directly to the department and sections 423.31, 423.32,
22 423.37, 423.38, 423.39, 423.40, 423.41, and 423.42 shall apply
23to the purchaser.
24 Sec. 22. Section 423.45, subsection 5, paragraph c, Code
252022, is amended to read as follows:
26c. The seller may accept a completed fuel exemption
27certificate, as prepared by the purchaser, for three
28years unless the purchaser files a new completed exemption
29certificate. If the fuel is purchased tax free pursuant to a
30fuel exemption certificate which is taken by the seller, and
31the fuel is used or disposed of by the purchaser in a nonexempt
32manner, the purchaser is solely liable for the taxes, and shall
33remit the taxes directly to the department and sections 423.31,
34423.32, 423.37, 423.38, 423.39, 423.40, 423.41, and 423.42
35shall apply to the purchaser.
-11-1 Sec. 23. Section 423.50, subsection 1, Code 2022, is amended
2to read as follows:
31. Only one remittance of tax per return is required except
4as provided in this subsection. Sellers that collect more
5than thirty thousand dollars in sales and use taxes for this
6state during the preceding calendar year shall be required to
7make additional remittances as required under rules adopted by
8the director. The filing of a return is not required with an
9additional remittance.
10 Sec. 24. Section 423.57, Code 2022, is amended to read as
11follows:
12423.57 Statutes applicable.
13The director shall administer this subchapter as it relates
14to the taxes imposed in this chapter in the same manner and
15subject to all the provisions of, and all of the powers,
16duties, authority, and restrictions contained in sections
17423.14, 423.14A, 423.14B, 423.15, 423.16, 423.17, 423.19,
18423.20, 423.21, 423.22, 423.23, 423.24, 423.25, 423.29, 423.31,
19423.32, 423.33, 423.34, 423.34A, 423.35, 423.37, 423.38,
20423.39, 423.40, 423.41, and 423.42, section 423.43, subsection
211, and sections 423.45, 423.46, and 423.47.
22 Sec. 25. Section 423.58, Code 2022, is amended to read as
23follows:
24423.58 Collection, permit, and tax return exemption for
25certain out-of-state businesses.
26Notwithstanding sections 423.14, 423.14A, 423.14B, 423.29,
27423.31, 423.32, and 423.36, a person meeting the requirements
28of section 29C.24 is not required to obtain a sales or use tax
29permit, collect and remit sales and use tax, or make and file
30applicable sales or use tax returns, as provided in section
3129C.24, subsection 3, paragraph “a”, subparagraph (2).
32 Sec. 26. Section 423A.6, subsection 4, Code 2022, is amended
33to read as follows:
344. Section 422.25, subsection 4, sections 422.30, 422.67,
35and 422.68, section 422.69, subsection 1, sections 422.70,
-12-1422.71, 422.72, 422.74, and 422.75, section 423.14, subsection
21, and sections 423.23, 423.24, 423.25, 423.31, 423.33,
3423.35, 423.37 through 423.42, and 423.47, consistent with the
4provisions of this chapter, apply with respect to the taxes
5authorized under this chapter, in the same manner and with the
6same effect as if the state and local hotel and motel taxes
7were retail sales taxes within the meaning of those statutes.
8Notwithstanding this subsection, the director shall provide
9for quarterly monthly filing of returns and for other than
10quarterly monthly filing of returns both as prescribed in
11section 423.31. The director may require all persons who are
12engaged in the business of deriving any sales price subject
13to tax under this chapter to register with the department.
14All taxes collected under this chapter by a retailer, lodging
15provider, lodging facilitator, lodging platform, or any other
16person are deemed to be held in trust for the state of Iowa and
17the local jurisdictions imposing the taxes.
18 Sec. 27. Section 423B.5, subsection 3, Code 2022, is amended
19to read as follows:
203. A tax permit other than the state sales or use tax permit
21required under section 423.36 shall not be required by local
22authorities.
23 Sec. 28. Section 423B.6, subsection 2, paragraph c, Code
242022, is amended to read as follows:
25c. Frequency of deposits and quarterly monthly reports of a
26local sales and services tax with the department of revenue are
27governed by the tax provisions in section 423.31. Local tax
28collections shall not be included in computation of the total
29tax to determine frequency of filing under section 423.31.
30 Sec. 29. Section 423C.4, Code 2022, is amended to read as
31follows:
32423C.4 Administration and enforcement.
33All powers and requirements of the director of revenue
34to administer the state sales tax law under chapter 423 are
35applicable to the administration of the tax imposed under
-13-1section 423C.3, including but not limited to section 422.25,
2subsection 4, sections 422.30, 422.67, and 422.68, section
3422.69, subsection 1, sections 422.70 through 422.75, section
4423.14, subsection 1, and sections 423.15, 423.23, 423.24,
5423.25, 423.31, 423.33, 423.35 and 423.37 through 423.42,
6423.45, 423.46, and 423.47. However, as an exception to the
7powers specified in section 423.31, the director shall only
8require the filing of quarterly monthly reports.
9 Sec. 30. Section 423D.4, subsection 3, Code 2022, is amended
10to read as follows:
113. Section 422.25, subsection 4, sections 422.30, 422.67,
12and 422.68, section 422.69, subsection 1, sections 422.70,
13422.71, 422.72, 422.74, and 422.75, section 423.14, subsection
141, and sections 423.23, 423.24, 423.25, 423.31 through
15423.35, 423.37 through 423.42, and 423.47, consistent with
16the provisions of this chapter, apply with respect to the tax
17authorized under this chapter, in the same manner and with the
18same effect as if the excise taxes on equipment sales or use
19were retail sales taxes within the meaning of those statutes.
20Notwithstanding this subsection, the director shall provide
21for quarterly monthly filing of returns and for other than
22quarterly monthly filing of returns both as prescribed in
23section 423.31. All taxes collected under this chapter by a
24retailer or any user are deemed to be held in trust for the
25state of Iowa.
26 Sec. 31. Section 423G.5, subsection 3, Code 2022, is amended
27to read as follows:
283. Section 422.25, subsection 4, sections 422.30, 422.67,
29and 422.68, section 422.69, subsection 1, sections 422.70,
30422.71, 422.72, 422.74, and 422.75, section 423.14, subsection
311, and sections 423.23, 423.24, 423.25, 423.31 through
32423.35, 423.37 through 423.42, and 423.47, consistent with the
33provisions of this chapter, shall apply with respect to the tax
34authorized under this chapter, in the same manner and with the
35same effect as if the excise taxes on the sale or furnishing of
-14-1a water service were retail sales taxes within the meaning of
2those statutes. Notwithstanding this subsection, the director
3shall provide for quarterly monthly filing of returns and
4for other than quarterly monthly filing of returns both as
5prescribed in section 423.31. All taxes collected under this
6chapter by a retailer or any user are deemed to be held in trust
7for the state of Iowa.
8 Sec. 32. Section 728.1, subsection 6, Code 2022, is amended
9to read as follows:
106. “Place of business” means the premises of a business
11required to obtain a sales or use tax permit pursuant to
12chapter 423, the premises of a nonprofit or not-for-profit
13organization, and the premises of an establishment which is
14open to the public at large or where entrance is limited by a
15cover charge or membership requirement.
16 Sec. 33. Section 728.5, subsection 1, unnumbered paragraph
171, Code 2022, is amended to read as follows:
18An owner, manager, or person who exercises direct control
19over a place of business required to obtain a sales or use tax
20permit shall be guilty of a serious misdemeanor under any of
21the following circumstances:
22 Sec. 34. REPEAL. Section 423.32, Code 2022, is repealed.
23DIVISION II
24DISTRIBUTIONS OF REVENUE TO LOCAL GOVERNMENTS AND SCHOOL
25DISTRICTS
26 Sec. 35. Section 423B.7, subsection 2, paragraph a, Code
272022, is amended to read as follows:
28a. The director of revenue by August 15 of each fiscal
29year the last day of each month shall send transfer to each
30city or county where the local option tax is imposed, an
31estimate of the amount of tax moneys remitted to the department
32attributable to each city or county will receive for the year
33and for each month of the year from the preceding month. At the
34end of each month, the director may revise the estimates for
35the year and remaining months.
-15-1 Sec. 36. Section 423B.7, subsection 2, paragraphs b and c,
2Code 2022, are amended by striking the paragraphs.
3 Sec. 37. Section 423F.2, subsection 4, paragraph a, Code
42022, is amended to read as follows:
5a. The director of revenue by August 15 of each fiscal year
6 the last day of each month shall send transfer to each school
7district an estimate of the amount of tax moneys remitted
8to the department attributable to each school district will
9receive for the year and for each month of the year from the
10preceding month. At the end of each month, the director may
11revise the estimates for the year and remaining months.
12 Sec. 38. Section 423F.2, subsection 4, paragraphs b and c,
13Code 2022, are amended by striking the paragraphs.
14 Sec. 39. TRANSITION PROVISION FOR LOCAL OPTION SALES TAX
15AND SECURING AN ADVANCED VISION FOR EDUCATION — TRANSFER
16AMOUNTS. Notwithstanding any other provision of law to the
17contrary, the department of revenue shall estimate monthly
18local option sales tax and securing an advanced vision for
19education transfer amounts through the end of the 2022 calendar
20year. The department of revenue shall transfer estimated
21amounts to each local government or school district for the
22months of July, August, and September 2022. Beginning with the
23October 2022 transfer, the department shall not use estimated
24amounts and shall transfer the amount of tax attributable to
25each local government or school district for the tax remitted
26in September 2022. Any adjustment amount that is necessary to
27the July, August, or September 2022 estimated transfer amount
28to reflect the accurate attributable amount shall be made by
29the department of revenue or the local government or school
30district by the close of business on December 30, 2022.
31DIVISION III
32LIABILITY OF SELLERS USING CERTIFIED SERVICE provider
33 Sec. 40. Section 423.48, subsection 3, paragraph a, Code
342022, is amended to read as follows:
35a. A model 1 seller’s obligation to calculate, collect, and
-16-1remit sales and use taxes shall be performed by its certified
2service provider, except for the seller’s obligation to remit
3tax on its own purchases. As the seller’s agent, the certified
4service provider is liable for its model 1 seller’s sales
5and use tax due Iowa on all sales transactions it processes
6for the seller except as set out in this section. A seller
7that contracts with a certified service provider is not
8liable to the state for sales or use tax due on transactions
9processed by the certified service provider unless the seller
10misrepresents the types of items or services it sells or
11commits fraud certified service provider establishes that
12the certified service provider is not liable in accordance
13with the agreement. In the absence of probable cause to
14believe that the seller has committed fraud or made a material
15misrepresentation liability relief established by the certified
16service provider, the seller is not subject to audit on the
17transactions processed by the certified service provider.
18A model 1 seller is subject to audit for transactions not
19processed by the certified service provider. The director is
20authorized to perform a system check of the model 1 seller and
21review the seller’s procedures to determine if the certified
22service provider’s system is functioning properly and the
23extent to which the seller’s transactions are being processed
24by the certified service provider.
25DIVISION IV
26AUTHORITY TO CANCEL VARIOUS PERMITS ISSUED BY THE DEPARTMENT
27 Sec. 41. Section 421.17, Code 2022, is amended by adding the
28following new subsection:
29 NEW SUBSECTION. 37. Notwithstanding any other provision
30of law to the contrary, to cancel the following permits upon
31verification by the department of revenue the permits are no
32longer in use: income tax withholding, sales or use tax, or
33motor fuel tax.
34DIVISION V
35ECONOMIC DEVELOPMENT AUTHORITY SALES AND USE TAX REFUND
-17-1INCENTIVES
2 Sec. 42. Section 15.331A, subsection 2, Code 2022, is
3amended to read as follows:
42. To receive the refund, a claim shall be filed by the
5eligible business with the department of revenue as follows:
6a. The contractor or subcontractor shall state under oath,
7on forms provided by the department of revenue, the amount of
8the sales of tangible personal property or services rendered,
9furnished, or performed including water, sewer, gas, and
10electric utility services upon which sales or use tax has been
11paid prior to the project contract completion, and shall file
12the forms with the eligible business before final settlement
13is made.
14b. The eligible business shall, not more than one year after
15project contract completion, make application to the department
16of revenue for any refund of the amount of the sales and use
17taxes paid pursuant to chapter 423 upon any tangible personal
18property, or services rendered, furnished, or performed,
19including water, sewer, gas, and electric utility services.
20The application shall be made in the manner and upon forms to
21be provided by the department of revenue, and the department of
22revenue shall audit the claim and, if approved, issue a warrant
23to the eligible business in the amount of the sales or use tax
24which has been paid to the state of Iowa under a contract. The
25application must be made within one year after the project
26completion date. A claim filed by the eligible business in
27accordance with this section shall not be denied by reason of a
28limitation provision set forth in chapter 421 or 423.
29c. The eligible business shall inform the department of
30revenue in writing after project contract completion. For
31purposes of this section, “project completion” means the
32first date upon which the average annualized production of
33finished product for the preceding ninety-day period at the
34manufacturing facility operated by the eligible business is
35at least fifty percent of the initial design capacity of the
-18-1facility.
2 Sec. 43. Section 15.331A, Code 2022, is amended by adding
3the following new subsection:
4 NEW SUBSECTION. 4. For purposes of this section, “contract
5completion” means the date of completion of a written contract
6relating to the construction or equipping of the facility that
7is part of the project of the eligible business.
8 Sec. 44. Section 15.331C, subsections 1 and 2, Code 2022,
9are amended to read as follows:
101. An In lieu of the sales and use tax refund provided
11in section 15.331A, an eligible business may claim a tax
12credit in an amount equal to the sales and use taxes paid by a
13third-party developer under chapter 423 for gas, electricity,
14water, or sewer utility services, goods, wares, or merchandise,
15or on services rendered, furnished, or performed to or for a
16contractor or subcontractor and used in the fulfillment of a
17written contract relating to the construction or equipping of
18a facility of the eligible business. Taxes attributable to
19intangible property and furniture and furnishings shall not
20be included, but taxes attributable to racks, shelving, and
21conveyor equipment to be used in a warehouse or distribution
22center shall be included. Any credit in excess of the tax
23liability for the tax year may be credited to the tax liability
24for the following seven years or until depleted, whichever
25occurs earlier. An eligible business may elect to receive a
26refund of all or a portion of an unused tax credit.
272. A third-party developer shall state under oath, on
28forms provided by the department of revenue, the amount of
29taxes paid as described in subsection 1 and shall submit such
30forms to the department of revenue. The taxes paid shall be
31itemized to allow identification of the taxes attributable
32to racks, shelving, and conveyor equipment to be used in a
33warehouse or distribution center. The eligible business
34shall make application to the department of revenue in the
35manner and form prescribed by the department of revenue, and
-19-1within the time for applying for a sales and use tax refund
2under section 15.331A.After timely receiving the form from
3the third-party developer and application from the eligible
4business, the department of revenue shall audit the claim
5and, if approved, shall issue a tax credit certificate to the
6eligible business equal to the sales and use taxes paid by a
7third-party developer under chapter 423 for gas, electricity,
8water, or sewer utility services, goods, wares, or merchandise,
9or on services rendered, furnished, or performed to or for a
10contractor or subcontractor and used in the fulfillment of a
11written contract relating to the construction or equipping
12of a facility. The department of revenue shall also issue a
13tax credit certificate to the eligible business equal to the
14taxes paid and attributable to racks, shelving, and conveyor
15equipment to be used in a warehouse or distribution center.
16The aggregate combined total amount of tax refunds under
17section 15.331A for taxes paid and attributable to racks,
18shelving, and conveyor equipment to be used in a warehouse or
19distribution center and of tax credit certificates issued by
20the department of revenue under this section for the taxes paid
21and attributable to racks, shelving, and conveyor equipment
22to be used in a warehouse or distribution center shall not
23exceed five hundred thousand dollars in a fiscal year. If
24an applicant for a tax credit certificate does not receive
25a refund or certificate for the taxes paid and attributable
26to racks, shelving, and conveyor equipment to be used in a
27warehouse or distribution center, the application shall be
28considered in succeeding fiscal years. The eligible business
29shall not claim a tax credit under this section unless a tax
30credit certificate issued by the department of revenue is
31included with the taxpayer’s tax return for the tax year for
32which the tax credit is claimed. A tax credit certificate
33shall contain the eligible business’s name, address, tax
34identification number, the amount of the tax credit, and other
35information deemed necessary by the department of revenue.
-20-1 Sec. 45. Section 15.355, subsection 2, Code 2022, is amended
2by striking the subsection and inserting in lieu thereof the
3following:
42. a. A housing business may claim a refund of the sales
5and use taxes paid under chapter 423 prior to the completion
6of the housing project that are directly related to a housing
7project and specified in the agreement.
8b. To receive a refund, a claim shall be filed by the
9housing business with the department of revenue as follows:
10(1) The contractor or subcontractor shall state under oath,
11on forms provided by the department of revenue, the amount
12of sales and use taxes paid under chapter 423 prior to the
13completion of the housing project that are directly related to
14a housing project and specified in the agreement.
15(2) The contractor or subcontractor shall file the forms
16with the housing business before final settlement is made.
17(3) (a) The housing business shall, after the agreement
18completion date, make application to the department of revenue
19for any refund of the amount of sales and use taxes paid under
20chapter 423 prior to the completion of the housing project that
21were directly related to a housing project and specified in the
22agreement. The application shall be made in the manner and
23upon forms to be provided by the department of revenue. The
24department of revenue shall audit the claim and, if approved,
25issue a warrant to the housing business. The application
26must be made within one year after the agreement completion
27date. A claim filed by the housing business in accordance with
28this subsection shall not be denied by reason of a limitation
29provision set forth in chapter 421 or 423.
30(b) For purposes of this subparagraph, “agreement completion
31date” means the date on which the authority notifies the
32department of revenue that all applicable requirements of the
33agreement entered into pursuant to section 15.354, subsection
343, paragraph “a”, and all applicable requirements of this part,
35including the rules the authority and the department of revenue
-21-1adopt pursuant to section 15.356, are satisfied.
2c. A contractor or subcontractor who willfully makes a
3false claim under oath in violation of the provisions of this
4subsection shall be guilty of a simple misdemeanor and in
5addition to any other penalty, the contractor or subcontractor
6shall be liable for the payment of the tax and any applicable
7penalty and interest.
8 Sec. 46. EFFECTIVE DATE. This division of this Act, being
9deemed of immediate importance, takes effect upon enactment.
10 Sec. 47. APPLICABILITY. This division of this Act applies
11to claims for refunds filed on or after the effective date of
12this division of this Act.
13DIVISION VI
14MOTOR FUEL REPORTING REQUIREMENT — PENALTY
15 Sec. 48. Section 452A.33, subsection 1, paragraph c, Code
162022, is amended to read as follows:
17c. (1) The retail dealer shall prepare and submit file
18 the report with the department in a manner and according to
19procedures required by the department in compliance with
20section 452A.61. However, the department may require that the
21retail dealer file the report with the department by electronic
22transmission. The department may require that retail dealers
23report to the department on an annual, quarterly, or monthly
24basis. The department, upon application by a retail dealer,
25may grant a reasonable extension of time to file the report.
26(2) If a retail dealer fails to file the report as required
27by this section or fails to maintain records required to file
28the report the department may impose a civil penalty of not
29more than one hundred dollars per occurrence in addition to any
30other penalty provided by law. The penalty amount shall be
31deposited into the general fund of the state.
32DIVISION VII
33MOTOR FUEL TAX TERMINOLOGY MODIFICATIONS
34 Sec. 49. Section 312.1, subsection 1, paragraph b, Code
352022, is amended to read as follows:
-22- 1b. All the net proceeds of the motor fuel tax or license
2 permit fees under chapter 452A.
3 Sec. 50. Section 452A.2, subsections 15, 26, 27, 28, 38, and
446, Code 2022, are amended to read as follows:
515. “Eligible purchaser” means a distributor of motor
6fuel or special fuel or an end user of special fuel who has
7purchased a minimum of two hundred forty thousand gallons of
8special fuel each year in the preceding two years. Eligible
9purchasers who elect to make delayed payments to a licensed
10 permitted supplier shall use electronic funds transfer.
11Additional requirements for qualifying as an eligible purchaser
12shall be established by rule.
1326. “Licensed Permitted compressed natural gas, liquefied
14natural gas, liquefied petroleum gas, and hydrogen dealer”
15means a person in the business of handling untaxed compressed
16natural gas, liquefied natural gas, liquefied petroleum gas, or
17hydrogen who delivers any part of the fuel into a fuel supply
18tank of any motor vehicle.
1927. “Licensed Permitted compressed natural gas, liquefied
20natural gas, liquefied petroleum gas, and hydrogen user” means
21a person licensed permitted by the department who dispenses
22compressed natural gas, liquefied natural gas, liquefied
23petroleum gas, or hydrogen, upon which the special fuel tax has
24not been previously paid, for highway use from fuel sources
25owned and controlled by the person into the fuel supply tank
26of a motor vehicle, or commercial vehicle owned or controlled
27by the person.
2828. “Licensee Permit holder” means a person holding an
29uncanceled supplier’s, restrictive supplier’s, importer’s,
30exporter’s, dealer’s, user’s, or blender’s license permit
31 issued by the department under this subchapter or any prior
32motor fuel tax law or any other person who possesses fuel for
33which the tax has not been paid.
3438. “Restrictive supplier” means a person who imports motor
35fuel or undyed special fuel into this state in tank wagons or
-23-1in small tanks not otherwise licensed permitted as an importer.
246. “Use”, with respect to liquefied petroleum gas, means
3the receipt, delivery, or placing of liquefied petroleum gas
4by a licensed permitted liquefied petroleum gas user into a
5fuel supply tank of a motor vehicle while the vehicle is in the
6state. With respect to natural gas used as a special fuel,
7“use” means the receipt, delivery, or placing of the natural gas
8into equipment for compressing the gas for subsequent delivery
9into the fuel supply tank of a motor vehicle while the vehicle
10is in the state. With respect to hydrogen used as a special
11fuel, “use” means the receipt, delivery, or placing of hydrogen
12by a licensed permitted hydrogen user into a fuel supply tank
13of a motor vehicle while the vehicle is in the state.
14 Sec. 51. Section 452A.3, subsection 8, paragraph a,
15subparagraphs (2) and (5), Code 2022, are amended to read as
16follows:
17(2) Tax shall not be paid when the sale of alcohol occurs
18within a terminal from an alcohol manufacturer to an Iowa
19licensed permitted supplier. The tax shall be paid by the Iowa
20licensed permitted supplier when the invoiced gross gallonage
21of the alcohol or the alcohol part of ethanol blended gasoline
22is withdrawn from a terminal for delivery in this state.
23(5) Any other person who possesses taxable fuel upon which
24the tax has not been paid to a licensee permit holder.
25 Sec. 52. Section 452A.4, Code 2022, is amended to read as
26follows:
27452A.4 Supplier’s, restrictive supplier’s, importer’s,
28exporter’s, dealer’s, and user’s license permit.
291. It shall be unlawful for any person to sell motor fuel or
30undyed special fuel within this state or to otherwise act as
31a supplier, restrictive supplier, importer, exporter, dealer,
32or user unless the person holds an uncanceled license permit
33 issued by the department. To procure a license permit, a
34supplier, restrictive supplier, importer, exporter, dealer, or
35user shall file with the department an application signed under
-24-1penalty for false certificate setting forth and complying with
2all of the following:
3a. The name under which the licensee permit holder will
4transact business in this state.
5b. The location, with street number address, of the
6principal office or place of business of the licensee permit
7holder within this state.
8c. The name and complete residence address of the owner
9or the names and addresses of the partners, if the licensee
10 permit holder is a partnership, or the names and addresses of
11the principal officers, if the licensee permit holder is a
12corporation or association.
13d. A dealer’s or user’s license permit shall be required for
14each separate place of business or location where compressed
15natural gas, liquefied natural gas, liquefied petroleum gas, or
16hydrogen is delivered or placed into the fuel supply tank of a
17motor vehicle.
18e. An applicant for an exporter’s license permit shall
19provide verification as required by the department that the
20applicant has the appropriate license permit valid in the state
21or states into which the motor fuel or undyed special fuel will
22be exported.
232. a. The department may deny the issuance of a license
24 permit to an applicant who is substantially delinquent in
25the payment of a tax due, or the interest or penalty on the
26tax, administered by the department. If the applicant is a
27partnership, a license permit may be denied if a partner owes
28any delinquent tax, interest, or penalty. If the applicant is
29a corporation, a license permit may be denied if any officer
30having a substantial legal or equitable interest in the
31ownership of the corporation owes any delinquent tax, interest,
32or penalty of the applicant corporation.
33b. The department may deny the issuance of a license permit
34 if an application for a license permit to transact business as
35a supplier, restrictive supplier, importer, exporter, dealer,
-25-1or user in this state is filed by a person whose license permit
2 or registration has been canceled for cause at any time under
3the provisions of this chapter or any prior motor fuel tax law,
4if the department has reason to believe that the application is
5not filed in good faith, or if the application is filed by some
6person as a subterfuge for the real person in interest whose
7license permit or registration has been canceled for cause
8under the provisions of this chapter or any prior motor fuel
9tax law. The applicant shall be given fifteen days’ notice in
10writing of the date of the hearing and shall have the right to
11appear in person or by counsel and present testimony.
123. a. The application in proper form having been accepted
13for filing, and the other conditions and requirements of
14this section and subchapter IV having been complied with,
15the department shall issue to the applicant a license permit
16 to transact business as a supplier, restrictive supplier,
17importer, exporter, dealer, or user in this state. The license
18 permit shall remain in full force and effect until canceled as
19provided in this chapter.
20b. The license permit shall not be assignable and shall be
21valid only for the licensee permit holder in whose name it is
22issued.
23c. The department shall keep and file all applications and
24bonds and a record of all licensees permit holders.
25 Sec. 53. Section 452A.6, Code 2022, is amended to read as
26follows:
27452A.6 Ethanol blended gasoline and other products —
28blender’s license permit.
291. a. A person other than a supplier, restrictive supplier,
30or importer licensed permitted under this subchapter, who
31blends gasoline with ethanol as defined in section 214A.1 in
32order to formulate ethanol blended gasoline, shall obtain a
33blender’s license permit.
34b. A person who blends two or more special fuel products
35or sells one hundred percent biofuel shall obtain a blender’s
-26-1license permit.
22. A blender’s license permit shall be obtained by following
3the procedure under section 452A.4 and the blender’s license
4 permit is subject to the same restrictions as contained in that
5section.
63. A blender required to obtain a license permit pursuant
7to this section shall maintain records as required by section
8452A.10 as to motor fuel, ethanol, ethanol blended gasoline,
9and special fuels.
10 Sec. 54. Section 452A.6A, subsection 3, paragraph b, Code
112022, is amended to read as follows:
12b. Affect the blender’s license permit requirements under
13section 452A.6.
14 Sec. 55. Section 452A.7, Code 2022, is amended to read as
15follows:
16452A.7 Foreign suppliers.
17The director, upon application, may authorize the
18collection and reporting of the tax by any supplier not having
19jurisdictional connections with this state. A foreign supplier
20shall be issued a license permit to collect and report the tax
21and shall be subject to the same regulations and requirements
22as suppliers having a jurisdictional connection with the state,
23or other regulations and agreements as prescribed by the
24director.
25 Sec. 56. Section 452A.8, subsection 1, paragraph a, Code
262022, is amended to read as follows:
27a. A statement of the number of invoiced gallons of motor
28fuel and undyed special fuel withdrawn from the terminal by the
29licensee permit holder within this state during the preceding
30calendar month in such detail as determined by the department.
31This includes on-site blending reports at the terminal.
32 Sec. 57. Section 452A.8, subsection 2, paragraph a,
33unnumbered paragraph 1, Code 2022, is amended to read as
34follows:
35From the total number of invoiced gallons of motor fuel
-27-1or undyed special fuel withdrawn from the terminal by the
2licensee permit holder during the preceding calendar month or
3semimonthly period the following deductions shall be made:
4 Sec. 58. Section 452A.8, subsection 2, paragraph a,
5subparagraph (1), Code 2022, is amended to read as follows:
6(1) The gallonage of motor fuel or undyed special fuel
7withdrawn from a terminal by a licensee permit holder and
8exported outside Iowa.
9 Sec. 59. Section 452A.8, subsection 2, paragraph c, Code
102022, is amended to read as follows:
11c. The tax due under paragraph “b” shall be the amount
12of fuel tax due from the supplier, restrictive supplier, or
13importer for the preceding reporting period. The director
14may require by rule that the payment of taxes by suppliers,
15restrictive suppliers, and importers be made by electronic
16funds transfer. The director may allow a tax float by rule
17where the eligible purchaser is not required to pay the tax
18to the supplier until one business day prior to the date the
19tax is due. A licensed permitted supplier who is unable to
20recover the tax from an eligible purchaser is not liable for
21the tax, upon proper documentation, and may credit the amount
22of unpaid tax against a later remittance of tax. Under this
23provision, a supplier does not qualify for a credit if the
24purchaser did not elect to use the eligible purchaser status,
25or otherwise does not qualify to be an eligible purchaser. To
26qualify for the credit, the supplier must notify the department
27of the uncollectible account no later than ten calendar days
28after the due date for payment of the tax. If a supplier
29sells additional motor fuel or undyed special fuel to a
30delinquent eligible purchaser after notifying the department
31that the supplier has an uncollectible debt with that eligible
32purchaser, the limited liability provision does not apply to
33the additional fuel. The supplier is liable for tax collected
34from the purchaser.
35 Sec. 60. Section 452A.8, subsection 2, paragraph e,
-28-1subparagraphs (1), (2), (3), and (4), Code 2022, are amended
2to read as follows:
3(1) For purposes of this paragraph “e”, “dealer” or “user”
4means a licensed permitted compressed natural gas, liquefied
5natural gas, liquefied petroleum gas, and hydrogen dealer or
6user and “fuel” means compressed natural gas, liquefied natural
7gas, liquefied petroleum gas, or hydrogen.
8(2) The tax for compressed natural gas, liquefied natural
9gas, liquefied petroleum gas, and hydrogen delivered by a
10licensed permitted dealer for use in this state shall attach at
11the time of the delivery and shall be collected by the dealer
12from the purchaser and paid to the department as provided in
13this chapter. The tax, with respect to compressed natural gas,
14liquefied natural gas, liquefied petroleum gas, and hydrogen
15acquired by a purchaser in any manner other than by delivery by
16a licensed permitted dealer into a fuel supply tank of a motor
17vehicle, attaches at the time of the use of the fuel and shall
18be paid over to the department by the purchaser as provided in
19this chapter.
20(3) The department shall adopt rules governing the
21dispensing of compressed natural gas, liquefied natural
22gas, liquefied petroleum gas, and hydrogen by licensed
23 permitted dealers and licensed permitted users. The director
24may require by rule that reports and returns be filed by
25electronic transmission. The department shall require that
26all pumps located at dealer locations and user locations
27through which liquefied petroleum gas can be dispensed shall
28be metered, inspected, tested for accuracy, and sealed and
29licensed permitted by the department of agriculture and land
30stewardship, and that fuel delivered into the fuel supply tank
31of any motor vehicle shall be dispensed only through tested
32metered pumps and may be sold without temperature correction
33or corrected to a temperature of 60 degrees Fahrenheit. If
34the metered gallonage is to be temperature-corrected, only
35a temperature-compensated meter shall be used. Natural gas
-29-1used as fuel shall be delivered into compressing equipment
2through sealed meters certified for accuracy by the department
3of agriculture and land stewardship. Hydrogen used as fuel
4shall be delivered into the fuel supply tank of any motor
5vehicle through sealed meters certified for accuracy by the
6department of agriculture and land stewardship. The department
7of agriculture and land stewardship may adopt rules pursuant
8to chapter 17A relating to the certification and accuracy of
9meters used to deliver hydrogen.
10(4) (a) All gallonage which is not for highway use,
11dispensed through metered pumps as licensed permitted under
12this section on which fuel tax is not collected, must be
13substantiated by exemption certificates as provided by the
14department or by valid exemption certificates provided by
15the dealers, signed by the purchaser, and retained by the
16dealer. A “valid exemption certificate provided by a dealer”
17is an exemption certificate which is in the form prescribed by
18the director to assist a dealer to properly account for fuel
19dispensed for which tax is not collected and which is complete
20and correct according to the requirements of the director.
21(b) For the privilege of purchasing liquefied petroleum
22gas, dispensed through licensed permitted metered pumps, on a
23basis exempt from the tax, the purchaser shall sign exemption
24certificates for the gallonage claimed which is not for highway
25use.
26(c) The department shall disallow all sales of gallonage
27which is not for highway use unless proof is established by the
28certificate. Exemption certificates shall be retained by the
29dealer for a period of three years.
30 Sec. 61. Section 452A.8, subsections 3 and 4, Code 2022, are
31amended to read as follows:
323. For the purpose of determining the amount of the tax
33liability on alcohol blended to produce ethanol blended
34gasoline or a blend of special fuel products, each licensed
35 permitted blender shall, not later than the last day of each
-30-1month following the month in which the blending is done, file
2with the department a monthly return, signed under penalty for
3false certificate, containing information required by rules
4adopted by the director. The director may require by rule that
5reports and returns be filed by electronic transmission.
64. A person who possesses fuel or uses fuel in a motor
7vehicle upon which no tax has been paid by a licensee permit
8holder in this state is subject to reporting and paying the
9applicable tax. The director may require by rule that reports
10and returns be filed by electronic transmission.
11 Sec. 62. Section 452A.9, Code 2022, is amended to read as
12follows:
13452A.9 Returns from persons not licensed permitted as
14suppliers, restrictive suppliers, importers, or blenders.
15Every person other than a licensed permitted supplier,
16restrictive supplier, importer, or blender, who purchases,
17brings into this state, or otherwise acquires within this state
18motor fuel or undyed special fuel, not otherwise exempted,
19which the person has knowingly not paid or incurred liability
20to pay either to a licensee permit holder or to a dealer
21the motor fuel or special fuel tax, shall be subject to
22the provisions of this subchapter that apply to suppliers,
23restrictive suppliers, importers, and blenders of motor fuel or
24undyed special fuel and shall file the same returns and make
25the same tax payments and be subject to the same penalties
26for delinquent filing or nonfiling or delinquent payment or
27nonpayment as apply to suppliers, restrictive suppliers,
28importers, and blenders.
29 Sec. 63. Section 452A.12, subsection 1, Code 2022, is
30amended to read as follows:
311. A serially numbered manifest shall be carried on
32every vehicle, except small tank wagons, while in use in
33transportation service, on which shall be entered the following
34information as to the cargo of motor fuel or special fuel being
35moved in the vehicle: The date and place of loading, the place
-31-1to be unloaded, the person for whom it is to be delivered,
2the nature and kind of product, the amount of product, and
3other information required by the department. The manifest
4for small tank wagons shall be retained at the home office.
5The manifest covering each load transported, upon consummation
6of the delivery, shall be completed by showing the date and
7place of actual delivery and the person to whom actually
8delivered and shall be kept as a permanent record for a period
9of three years. However, the record of the manifest of past
10cargoes need not be carried on the conveyance but shall be
11preserved by the carrier for inspection by the department. A
12carrier subject to this subsection when distributing for a
13licensee permit holder may with the approval of the department
14substitute the loading and delivery evidence required in
15subsection 2 for the manifest.
16 Sec. 64. Section 452A.15, subsection 1, paragraph c, Code
172022, is amended to read as follows:
18c. If a person required under this section to file
19transportation reports is a licensee permit holder under
20this subchapter and if the information required in the
21transportation report is contained in any other report rendered
22by the person under this subchapter, a separate transportation
23report of that information shall not be required.
24 Sec. 65. Section 452A.21, subsection 1, Code 2022, is
25amended to read as follows:
261. Persons not licensed permitted under this subchapter
27who blend motor fuel and alcohol to produce ethanol blended
28gasoline may file for a refund for the difference between taxes
29paid on the motor fuel purchased to produce ethanol blended
30gasoline and the tax due on the ethanol blended gasoline
31blended. If, during any month, a person licensed permitted
32 under this subchapter uses tax paid motor fuel to blend ethanol
33blended gasoline and the refund otherwise due under this
34section is greater than the licensee’s total tax liability of
35the permit holder for that month, the licensee permit holder is
-32-1entitled to a credit. The claim for credit shall be filed as
2part of the return required by section 452A.8.
3 Sec. 66. Section 452A.22, Code 2022, is amended to read as
4follows:
5452A.22 Tax collected on exempt fuel.
6If an amount of tax represented by a licensee permit
7holder to a purchaser as constituting tax due is computed
8upon gallonage that is not taxable or the amount represented
9is in excess of the actual amount of tax due and the amount
10represented is actually paid by the purchaser to the licensee
11 permit holder, the excess amount of tax paid shall be returned
12to the purchaser by the licensee permit holder. If the
13licensee permit holder fails to return the excess tax paid to
14the purchaser, the amount which the purchaser has paid to the
15licensee permit holder shall be remitted by the licensee permit
16holder to the department.
17 Sec. 67. Section 452A.52, subsection 2, Code 2022, is
18amended to read as follows:
192. Any person who is unable to display either of the permits
20or the license permit provided in section 452A.53 and brings
21into the state in the fuel supply tanks of a commercial motor
22vehicle more than thirty gallons of motor fuel or special fuel
23in violation of subsection 1 commits a simple misdemeanor
24punishable as a scheduled violation under section 805.8A,
25subsection 13, paragraph “c”.
26 Sec. 68. Section 452A.53, Code 2022, is amended to read as
27follows:
28452A.53 Permit or license.
291. The advance arrangements referred to in section 452A.52
30shall include the procuring of a permanent international fuel
31tax agreement permit or license or single-trip interstate
32permit.
332. Persons choosing not to make advance arrangements with
34the state department of transportation by procuring a permit or
35license are not relieved of their responsibility to purchase
-33-1motor fuel and special fuel commensurate with their use of the
2state’s highway system. When there is reasonable cause to
3believe that there is evasion of the fuel tax on commercial
4motor vehicles, the state department of transportation may
5audit persons not holding a permit or license. Audits shall
6be conducted pursuant to section 452A.55 and in accordance
7with international fuel tax agreement guidelines. The state
8department of transportation shall collect all taxes due and
9refund any overpayment.
103. A permanent international fuel tax agreement permit
11or license may be obtained upon application to the state
12department of transportation. A fee of ten dollars shall be
13charged for each permit or license issued. The holder of
14a permanent permit or license shall have the privilege of
15bringing into this state in the fuel supply tanks of commercial
16motor vehicles any amount of motor fuel or special fuel to be
17used in the operation of the vehicles and for that privilege
18shall pay Iowa motor fuel or special fuel taxes as provided in
19section 452A.54.
204. A single-trip interstate permit may be obtained from the
21state department of transportation. A fee of twenty dollars
22shall be charged for each individual single-trip interstate
23permit issued. A single-trip interstate permit is subject to
24the following provisions and limitations:
25a. The permit shall be issued and be valid for seventy-two
26consecutive hours, except in emergencies, or until the time of
27leaving the state, whichever first occurs.
28b. The permit shall cover only one commercial motor vehicle
29and is not transferable.
30c. Single-trip interstate fuel permits may be made available
31from sources other than indicated in this section at the
32discretion of the state department of transportation.
335. Each vehicle operated into or through Iowa in interstate
34operations using motor fuel or special fuel acquired in any
35other state shall carry in or on the vehicle a duplicate or
-34-1evidence of the permit or license required in this section.
2A fee not to exceed fifty cents shall be charged for each
3duplicate or other evidence of a permit or license issued.
4 Sec. 69. Section 452A.54, subsections 2, 4, and 5, Code
52022, are amended to read as follows:
62. Notwithstanding any provision of this chapter to the
7contrary, except as provided in this section, the holder of a
8permanent international fuel tax agreement permit or license
9 may make application to the state department of transportation
10for a refund, not later than the last day of the third month
11following the quarter in which the overpayment of Iowa
12fuel tax paid on excess purchases of motor fuel or special
13fuel was reported as provided in section 452A.8, and which
14application is supported by such proof as the state department
15of transportation may require. The state department of
16transportation shall refund Iowa fuel tax paid on motor fuel or
17special fuel purchased in excess of the amount consumed by such
18commercial motor vehicles in their operation on the highways
19of this state.
204. To determine the amount of fuel taxes due under this
21subchapter and to prevent the evasion thereof, the state
22department of transportation shall require a quarterly report
23on forms prescribed by the state department of transportation.
24It shall be filed not later than the last day of the month
25following the quarter reported, and each quarter thereafter.
26These reports shall be required of all persons who have been
27issued a permit or license under this subchapter and shall
28cover actual operation and fuel consumption in Iowa on the
29basis of the permit or license holder’s average consumption
30of fuel in Iowa, determined by the total miles traveled and
31the total fuel purchased and consumed for highway use by the
32permittee’s or licensee’s permit holder’s commercial motor
33vehicles in the permittee’s or licensee’s entire operation
34of the permit holder in all states to establish an overall
35miles per gallon ratio, which ratio shall be used to compute
-35-1the gallons used for the miles traveled in Iowa. Failure
2to receive a quarterly report or fuel credentials by mail,
3facsimile transmission, or any other means of delivery does not
4relieve a person from the person’s fuel tax liability or from
5the requirement to display current fuel credentials.
65. Subject to compliance with rules adopted by the
7department, annual reporting may be permitted in lieu of
8quarterly reporting. A licensee permitted permit holder
9allowed to report annually shall maintain records in compliance
10with this chapter.
11 Sec. 70. Section 452A.55, subsection 2, Code 2022, is
12amended to read as follows:
132. The state department of transportation, within a period
14of one year from the issuance of a permanent international fuel
15tax agreement fuel permit or license, may audit the records
16of the permittee or licensee permit holder for the two years
17preceding the issuance of the permit or license. The state
18department of transportation shall collect all taxes due had
19the permittee or licensee been licensed as if the permit holder
20had held a permit for the two years prior to the issuance of
21the permit or license and shall refund any overpayment pursuant
22to section 452A.54. When, as a result of an audit, fuel taxes
23unpaid and due the state of Iowa exceed five hundred dollars,
24the audit shall be at the expense of the person whose records
25are being audited. However, if an audit of records maintained
26under this section is made outside the state of Iowa in a
27state which requires payment of the costs for similar audits
28performed by officials or employees of the other state when
29made in Iowa, then all costs of audits performed outside of
30Iowa in the other state shall be at the expense of the person
31whose records are audited.
32 Sec. 71. Section 452A.60, subsection 1, Code 2022, is
33amended to read as follows:
341. The department of revenue or the state department of
35transportation shall prescribe and furnish all forms, as
-36-1applicable, upon which reports, returns, and applications shall
2be made and claims for refund presented under this chapter
3and may prescribe forms of record to be kept by suppliers,
4restrictive suppliers, importers, exporters, blenders, common
5carriers, contract carriers, licensed permitted compressed
6natural gas, liquefied natural gas, liquefied petroleum gas,
7and hydrogen dealers and users, terminal operators, nonterminal
8storage facility operations, and interstate commercial motor
9vehicle operators.
10 Sec. 72. Section 452A.62, subsection 1, paragraph a,
11subparagraph (2), Code 2022, is amended to read as follows:
12(2) A licensed permitted compressed natural gas, liquefied
13natural gas, liquefied petroleum gas, or hydrogen dealer,
14user, or person supplying compressed natural gas, liquefied
15natural gas, liquefied petroleum gas, or hydrogen to a licensed
16 permitted compressed natural gas, liquefied natural gas,
17liquefied petroleum gas, or hydrogen dealer or user.
18 Sec. 73. Section 452A.62, subsection 1, paragraph b, Code
192022, is amended to read as follows:
20b. To examine the records, books, papers, receipts, and
21invoices of any distributor, supplier, restrictive supplier,
22importer, blender, exporter, terminal operator, nonterminal
23storage facility, licensed permitted compressed natural gas,
24liquefied natural gas, liquefied petroleum gas, or hydrogen
25dealer or user, or any other person who possesses fuel
26upon which the tax has not been paid to determine financial
27responsibility for the payment of the taxes imposed by this
28chapter.
29 Sec. 74. Section 452A.65, subsections 2 and 3, Code 2022,
30are amended to read as follows:
312. A report required of licensees permit holders or persons
32operating under subchapter III, upon which no tax is due, is
33subject to a penalty of ten dollars if the report is not timely
34filed with the state department of transportation.
353. If a licensee permit holder or other person sells the
-37-1licensee’s permit holder’s or other person’s business or stock
2of goods or quits the business, the licensee permit holder
3 or other person shall prepare a final return and pay all tax
4due within the time required by law. The immediate successor
5to the licensee permit holder or other person, if any, shall
6withhold sufficient of the purchase price, in money or money’s
7worth, to pay the amount of any delinquent tax, interest, or
8penalty due and unpaid. If the immediate successor of the
9business or stock of goods intentionally fails to withhold
10any amount due from the purchase price as provided in this
11subsection, the immediate successor is personally liable for
12the payment of the taxes, interest, and penalty accrued and
13unpaid on account of the operation of the business by the
14immediate former licensee permit holder or other person,
15except when the purchase is made in good faith as provided
16in section 421.28. However, a person foreclosing on a valid
17security interest or retaking possession of premises under a
18valid lease is not an “immediate successor” for purposes of
19this subsection. The department may waive the liability of
20the immediate successor under this subsection if the immediate
21successor exercised good faith in establishing the amount of
22the previous liability.
23 Sec. 75. Section 452A.67, subsection 1, Code 2022, is
24amended to read as follows:
251. The department shall examine the return and enforce
26collection of any amount of tax, penalty, fine, or interest
27over and above the amount shown to be due by the return filed by
28a licensee permit holder as soon as practicable but no later
29than three years after the return is filed. An assessment
30shall not be made covering a period beyond three years after
31the return is filed except that the period for the examination
32and determination of the correct amount of tax is unlimited in
33the case of a false or fraudulent return made with the intent
34to evade tax or in the case of a failure to file a return.
35 Sec. 76. Section 452A.68, Code 2022, is amended to read as
-38-1follows:
2452A.68 Power of department of revenue or the state
3department of transportation to cancel licenses permits.
41. If a licensee permit holder files a false return of
5the data or information required by this chapter, or fails,
6refuses, or neglects to file a return required by this chapter,
7or to pay the full amount of fuel tax as required by this
8chapter, or is substantially delinquent in paying a tax due,
9owing, and administered by the department of revenue, and
10interest and penalty if appropriate, or if the person is a
11corporation and if any officer having a substantial legal or
12equitable interest in the ownership of the corporation owes any
13delinquent tax of the licensee permit holder corporation, or
14interest or penalty on the tax, administered by the department,
15then after ten days’ written notice by mail directed to the
16last known address of the licensee permit holder setting a time
17and place at which the licensee permit holder may appear and
18show cause why the license permit should not be canceled, and
19if the licensee permit holder fails to appear or if upon the
20hearing it is shown that the licensee permit holder failed to
21correctly report or pay the tax, the appropriate state agency
22may cancel the license permit and shall notify the licensee
23 permit holder of the cancellation by mail to the licensee’s
24 last known address of the permit holder.
252. If a licensee permit holder abuses the privileges for
26which the license permit was issued, fails to produce records
27reasonably requested, fails to extend reasonable cooperation
28to the appropriate state agency, or has been suspended for
29nonpayment of fees under chapter 326 and still owes fees to
30the department, the licensee permit holder shall be advised
31in writing of a hearing scheduled to determine if the license
32 permit shall be canceled. The appropriate state agency upon
33the presentation of a preponderance of evidence may cancel a
34license permit for cause.
353. The director of the appropriate state agency may reissue
-39-1a license permit which has been canceled for cause. As a
2condition of reissuance of a license permit, in addition to
3requirements for issuing a new license permit, the director may
4require a waiting period not to exceed ninety days before a
5license permit can be reissued or a new license permit issued.
6The director shall adopt rules specifying those instances for
7which a waiting period will be required.
84. Upon receipt of written request from any licensee
9 permit holder the appropriate state agency shall cancel the
10license permit of the licensee permit holder effective on the
11date of receipt of the request. If, upon investigation, the
12appropriate state agency finds that a licensee permit holder is
13no longer engaged in the activities for which a license permit
14 was issued and has not been so engaged for a period of six
15months, the state agency shall cancel the license permit and
16give thirty days’ notice of the cancellation mailed to the last
17known address of the licensee permit holder.
18 Sec. 77. Section 452A.70, Code 2022, is amended to read as
19follows:
20452A.70 Discontinuance of licensed activity permit —
21liability for taxes and penalties.
22If a licensee permit holder ceases to engage in the state
23in activities for which the person’s license permit was issued
24or discontinues, sells, or transfers the business in which the
25person has carried on that activity the licensee permit holder
26 shall notify the department of revenue, which shall forward
27notice to the state department of transportation, in writing at
28least ten days prior to the time the cessation, discontinuance,
29sale or transfer takes effect. The notice shall give the date
30of proposed cessation or discontinuance, and, in the event of
31a proposed sale or transfer of the business, the date and the
32name and address of the purchaser or transferee. All fuel
33taxes, penalties and interest under this chapter not yet due
34and payable shall, together with any and all interest accruing
35or penalties imposed under this chapter shall become due and
-40-1payable concurrently with the cessation, discontinuances, sale
2or transfer, and it shall be the duty of the licensee permit
3holder to make a report and pay all the fuel taxes, interest,
4and penalties within ten days.
5 Sec. 78. Section 452A.72, subsections 1 and 3, Code 2022,
6are amended to read as follows:
71. If any fuel taxes, penalties, or interest have been
8erroneously or illegally collected by the appropriate state
9agency from a licensee permit holder, the appropriate state
10agency may apply the overpayment against any tax liability
11outstanding on the books of the department against the
12claimant, or shall certify the amount to the director of the
13department of administrative services, who shall draw a warrant
14for the certified amount on the treasurer of state payable to
15the licensee permit holder. The refund shall be paid to the
16licensee permit holder immediately.
173. However, if it is found during an examination by the
18appropriate state agency that a licensee permit holder paid, as
19a result of a mistake, an amount of tax, penalty, or interest
20which was not due, and the mistake is found within three years
21of the overpayment, the appropriate state agency shall credit
22the amount against any penalty, interest or taxes due or shall
23refund the amount to the person.
24 Sec. 79. Section 452A.74, subsection 1, paragraphs e and g,
25Code 2022, are amended to read as follows:
26e. For any person to act as a supplier, restrictive
27supplier, importer, exporter, blender, or compressed natural
28gas, liquefied natural gas, liquefied petroleum gas, or
29hydrogen dealer or user without the required license permit.
30g. For any licensed permitted compressed natural gas,
31liquefied natural gas, liquefied petroleum gas, or hydrogen
32dealer or user to dispense compressed natural gas, liquefied
33natural gas, liquefied petroleum gas, or hydrogen into the fuel
34supply tank of any motor vehicle without collecting the fuel
35tax.
-41-1 Sec. 80. Section 452A.74, subsection 2, Code 2022, is
2amended to read as follows:
32. Any delivery of compressed natural gas, liquefied
4natural gas, liquefied petroleum gas, or hydrogen to a
5compressed natural gas, liquefied natural gas, liquefied
6petroleum gas, or hydrogen dealer or user for the purpose of
7evading the state tax on compressed natural gas, liquefied
8natural gas, liquefied petroleum gas, or hydrogen, into
9facilities other than those licensed permitted under this
10chapter knowing that the fuel will be used for highway use
11shall constitute a violation of this section. Any compressed
12natural gas, liquefied natural gas, liquefied petroleum gas,
13or hydrogen dealer or user for purposes of evading the state
14tax on compressed natural gas, liquefied natural gas, liquefied
15petroleum gas, or hydrogen, who allows a distributor to place
16compressed natural gas, liquefied natural gas, liquefied
17petroleum gas, or hydrogen for highway use in facilities other
18than those licensed permitted under this chapter, shall also be
19deemed in violation of this section.
20 Sec. 81. Section 452A.74A, subsection 2, unnumbered
21paragraph 1, Code 2022, is amended to read as follows:
22A person who imports motor fuel or undyed special fuel
23without a valid importer’s license permit or supplier’s license
24 permit shall be assessed a civil penalty as provided in this
25subsection. However, the owner or operator of the importing
26vehicle shall not be guilty of violating this subsection if it
27is shown by the owner or operator that the owner or operator
28reasonably did not know or reasonably should not have known of
29the illegal importation.
30EXPLANATION
31The inclusion of this explanation does not constitute agreement with
32the explanation’s substance by the members of the general assembly.
33This bill relates to sales, use, and motor vehicle fuel
34taxes administered by the department of revenue including
35distributions to local governments and school districts, the
-42-1liability of sellers, tax refund and tax credit incentives, and
2motor fuel tax reporting and terminology modifications.
3DIVISION I — SALES, USE, AND EXCISE TAX — RETURNS DUE. The
4bill allows a taxpayer to have a combined sales and use tax
5permit and to file a combined return for sales and use taxes.
6Currently, a taxpayer must possess a separate sales and use tax
7permit and file separate sales and use tax returns.
8The bill changes numerous references to the phrase “sales
9tax permit” in the Code to the phrase “sales or use tax
10permit”.
11Currently, a person is required to file a sales or use tax
12return on a quarterly basis. The bill changes this filing
13requirement from a quarterly basis to a monthly basis. The
14bill does allow a person required to file a sales or use tax
15return and who collects less than $1,200 in sales or use tax in
16a calendar year, to file a return once a year on or before the
17last day of the month following the close of the calendar year.
18The bill allows certain persons required to collect sales
19or use tax who do not meet the definition of a “retailer
20maintaining a business in this state” in Code section
21423.1(48)(a)(1), to be issued only one sales or use tax permit.
22The bill allows the director of revenue, if necessary, to
23ensure the payment of sales or use tax, to require a sales or
24use tax return be filed on a different basis other than on a
25monthly basis.
26The bill strikes a provision allowing a person required to
27file a sales or use tax return to take a credit against the
28total quarterly amount of tax due, upon a proper showing of
29necessity, allowing for the balance of tax due to be paid up to
3030 days after the return was due.
31The bill strikes a provision requiring a seller, who
32collects more than $30,000 of sales or use tax in the preceding
33calendar year, to make additional remittances to the state
34under the rules adopted by the director of revenue.
35DIVISION II — DISTRIBUTIONS OF REVENUE TO LOCAL GOVERNMENTS
-43-1AND SCHOOL DISTRICTS. Currently, by August 15, the department
2of revenue estimates the local option sale tax (LOST) and
3securing an advanced vision for education (SAVE) tax amounts
4that will be transferred to each local government or school
5district on a fiscal year and monthly basis. The transfer
6estimates may be revised for the year and remaining months by
7the director of revenue if the estimates are incorrect.
8Commencing with the fiscal year beginning July 1, 2022, the
9bill changes the LOST and SAVE transfer amount procedures, by
10requiring the department of revenue to transfer the actual
11LOST and SAVE taxes collected that are attributable to each
12local government or school district to that local government
13or school district.
14The bill also creates a transition procedure for the LOST
15and SAVE tax amounts transferred during July and August 2022.
16Under the transition procedure, the department of revenue shall
17transfer estimated amounts of LOST and SAVE to each local
18government or school district for the months of July, August,
19and September 2022. However, beginning with the October 2022
20transfer, the department of revenue shall transfer the actual
21amount of tax attributable to each local government or school
22district for the LOST and SAVE tax remitted in September 2022.
23The bill requires any adjustment amount that is necessary to
24the July, August, or September 2022 estimated transfer amounts
25be made by the close of business on December 30, 2022.
26DIVISION III — LIABILITY OF SELLERS USING CERTIFIED
27SERVICE PROVIDER. The bill specifies that a seller of personal
28property or services who contracts with a certified service
29provider is not liable to the state for sales or use tax due on
30transactions processed by the certified service provider unless
31the certified service provider establishes it is not liable
32in accordance with the agreement with the seller. The bill
33specifies that if the certified service provider is liable for
34the sales or use tax due, the seller is not subject to audit
35on transactions processed by the certified service provider.
-44-1“Certified service provider” is defined in Code section 423.1
2to mean an agent certified under the agreement to perform
3all of a seller’s sales or use tax functions, other than the
4seller’s obligation to remit tax on its own purchases.
5DIVISION IV — AUTHORITY TO CANCEL VARIOUS PERMITS ISSUED
6BY THE DEPARTMENT. The bill allows the director of the
7department of revenue to cancel the following tax permits if
8the department determines the permits are no longer in use:
9income tax withholding, sales or use tax, or motor fuel tax.
10DIVISION V — ECONOMIC DEVELOPMENT AUTHORITY SALES AND USE
11TAX REFUND INCENTIVES. Currently, for certain sales or use
12tax refund incentives in Code section 15.331A administered
13by the department of economic development authority, an
14eligible business must apply for a sales or use tax refund for
15items purchased prior to the “project” completion date. The
16bill changes the refund procedures by requiring an eligible
17business to apply for such sales or use tax refunds for items
18purchased prior to the completion of the “contract” rather than
19completion of the “project”. The bill also requires such an
20application be made within one year of the project completion
21date, and that the department of revenue be informed in writing
22after the contract completion. The bill defines “contract
23completion” as the date of completion of a written contract
24relating to the construction or equipping of the facility that
25is part of the project of the eligible business.
26For the third-party developer tax credit in Code section
2715.331C relating to a tax credit for sales and use taxes paid
28by a third-party developer, the bill specifies that this credit
29is in lieu of the sales and use tax refund tax incentive
30provided in Code section 15.331A.The bill also provides
31that the eligible business shall make an application to the
32department of revenue within one year of the project completion
33date, and that the department be informed in writing after
34the contract completion. The bill requires the department
35of revenue to audit any third-party developer tax credit
-45-1claim, prior to issuing a third-party developer tax credit
2certificate.
3The bill makes changes to the procedures for workforce
4housing tax incentives in Code section 15.355. The bill
5permits a housing business to claim a refund of the sales
6and use taxes paid prior to the completion of the housing
7project that are directly related to the housing project and
8specified in an agreement. In order to receive the sales and
9use tax refund, the bill requires a contractor or subcontractor
10working on the housing project to submit a form under oath
11stating the amount of sales and use taxes paid prior to the
12housing project. The bill makes it a simple misdemeanor if a
13contractor or subcontractor willfully makes a false claim under
14oath in relating to the workforce sales and use tax refund.
15The bill then requires, after the agreement completion date,
16the housing business to make an application to the department
17of revenue for any sales and use tax refund. The bill defines
18“agreement completion date” to mean the date the economic
19development authority notifies the department of revenue that
20all applicable requirements of the agreement have been met.
21The bill also requires the department of revenue to audit the
22claim prior to issuing the sales and use tax refund.
23This division takes effect upon enactment and applies to
24claims for refunds filed on or after the effective date of the
25bill.
26DIVISION VI — MOTOR FUEL REPORTING REQUIREMENT — PENALTY.
27The bill specifies that each motor fuel retail dealer shall
28file a report with the department of revenue detailing their
29total motor fuel gallonage within a reporting period in the
30manner required by the department and in compliance within
31the time frames established in Code section 452A.61. The
32bill permits the department of revenue to require a retail
33dealer to file such a report with the department by electronic
34transmission. The bill allows the department of revenue to
35impose a civil penalty on the retail dealer, not to exceed
-46-1$100, for each instance a retail dealer fails to timely file
2a report or fails to maintain records required to file the
3report.
4DIVISION VII — MOTOR FUEL TAX TERMINOLOGY MODIFICATIONS.
5The bill modifies terms in Code chapter 452A (motor fuel and
6special fuel taxes). The bill substitutes the term “permit”
7for the term “license” wherever the term “license” appears. By
8substituting the term “permit” for the term “license”, the bill
9also strikes related terms to “license” including “licensed”
10and “licensee” and substitutes “permitted” and “permit holder”
11in lieu of “licensed” and “licensee”.
-47-jm/jh