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House Study Bill 724 - IntroducedA Bill ForAn Act 1relating to state and local finances and the duties and
2procedures of the department of revenue by providing for
3electronic filing, communications, and records, modifying
4transfer tax remittances, the assessment of property,
5the collection of debt, and the taxation of pass-through
6entities, reducing inheritance taxes for unknown heirs,
7establishing salaries, providing for a fee, making
8appropriations, and providing penalties, and including
9effective date, applicability, and retroactive applicability
10provisions.
11BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2Record retention
3 Section 1. Section 422.68, subsections 3 and 4, Code 2022,
4are amended to read as follows:
53. a. The director may shall destroy useless records and
6returns, reports, and communications records of any taxpayer
7filed with or kept by the department after those returns,
8records, reports, or communications have been in the custody
9of the department for a period of not less than three years or
10such time as the director prescribes by rule. However, after
11the accounts of a person have been examined by the director and
12the amount of tax and penalty due have been finally determined,
13the director may order the destruction of any records
14previously filed by that taxpayer, notwithstanding the fact
15that those records have been in the custody of the department
16for a period less than three years. These records and
17documents shall be destroyed in the manner prescribed by the
18director by the end of the calendar year following the year in
19which the record is determined by the department to be useless.
20b. (1) A taxpayer or the department may request that a
21specific record be retained beyond the useful life of the
22record.
23(2) The director shall have the discretion to approve or
24deny a request made pursuant to subparagraph (1).
25c. Notwithstanding paragraph “a”, the department may retain
26any of the following:
27(1) A record that no longer contains personally
28identifiable information of a specific taxpayer.
29(2) A record described in section 17A.3, subsection 1,
30paragraph “d” or “e”.
31d. The department shall adopt rules pursuant to chapter 17A
32to administer this subsection.
334. The department may make photostat, microfilm,
34electronic, or other electronic or photographic copies of
35records, reports, and other papers either filed by the taxpayer
-1-1or prepared by the department, or make such copies by other
2methods. In addition, the department may create and or use
3any system of recordkeeping reasonably calculated to preserve
4its records for any time period required by law. When these
5photostat, electronic, microfilm, or other copies have been a
6copy is made, the department may destroy the original records
7 record which are the served as the basis for the copies copy
8 in any manner prescribed by the director. These photostat,
9electronic, microfilm, or other types of copies, when no longer
10of use, may be destroyed A copy shall be subject to destruction
11 as provided in subsection 3. These photostat, microfilm,
12electronic, or other records A copy shall be admissible in
13evidence when duly certified and authenticated by the officer
14having custody and control of them the record.
15 Sec. 2. EFFECTIVE DATE. This division of this Act takes
16effect January 1, 2025.
17DIVISION II
18ELECTRONIC FILING — FIDUCIARIES — BUSINESS ENTITIES
19 Sec. 3. Section 422.14, subsection 1, Code 2022, is amended
20to read as follows:
211. a. A fiduciary subject to taxation under this
22subchapter, as provided in section 422.6, shall make a return,
23signed in accordance with forms and rules prescribed by the
24director, for the individual, estate, or trust for whom or for
25which the fiduciary acts, if the taxable income thereof amounts
26to six hundred dollars or more. A nonresident fiduciary shall
27file a copy of the federal income tax return for the current
28tax year with the return required by this section.
29b. (1) A fiduciary required to file a return under
30paragraph “a”, shall file the return in an electronic format as
31specified by the department in a tax year in which any of the
32following circumstances apply:
33(a) The individual, estate, or trust for whom or which the
34fiduciary acts has two hundred fifty thousand dollars or more
35in gross receipts, as defined by rule by the department.
-2- 1(b) The fiduciary is required to provide ten or more
2schedules K-1 to the beneficiaries.
3(c) The fiduciary reports twenty-five thousand dollars or
4more of Iowa tax credits on the return.
5(2) This paragraph “b” applies to any form or schedule
6supporting a return required to be electronically filed or
7any amended return if the amended return meets any of the
8circumstances requiring electronic filing in this paragraph.
9c. (1) Notwithstanding paragraph “b”, the department may
10provide an exception to the electronic filing requirement.
11(2) A return subject to the electronic filing requirement in
12paragraph “b” that is filed in a manner other than an electronic
13format specified by the department shall not be considered
14a valid return unless the department provides an exception
15pursuant to this paragraph.
16d. The department shall adopt rules to implement this
17subsection.
18 Sec. 4. Section 422.15, subsection 2, Code 2022, is amended
19to read as follows:
202. a. Every partnership, including limited partnerships,
21doing business in this state, or deriving income from sources
22within this state as defined in section 422.32, subsection 1,
23paragraph “g”, shall make a return, stating specifically the
24net income and capital gains or losses reported on the federal
25partnership return, the names and addresses of the partners,
26and their respective shares in said amounts.
27b. (1) A partnership required to file a return under
28paragraph “a”, shall file the return in an electronic format
29specified by the department in a tax year in which any of the
30following circumstances apply:
31(a) The partnership has two hundred fifty thousand dollars
32or more in total gross receipts, as defined by rule by the
33department.
34(b) The partnership is required to provide ten or more Iowa
35schedules K-1 to the partners.
-3- 1(c) The partnership reports twenty-five thousand dollars or
2more of Iowa tax credits on the return.
3(2) This paragraph “b” applies to any form or schedule
4supporting a return required to be electronically filed or
5any amended return if the amended return meets any of the
6circumstances requiring electronic filing in this paragraph.
7c. (1) Notwithstanding paragraph “b”, the department may
8provide an exception to the electronic filing requirement.
9(2) A return subject to the electronic filing requirement in
10paragraph “b” that is filed in a manner other than an electronic
11format specified by the department shall not be considered
12a valid return unless the department provides an exception
13pursuant to this paragraph.
14d. The department shall adopt rules to implement this
15subsection.
16 Sec. 5. Section 422.16B, subsection 8, Code 2022, is amended
17to read as follows:
188. a. For the efficient administration of this chapter, the
19director may require or provide for the composite return on the
20same form as or combined with a pass-through entity’s annual
21return required under section 422.14, 422.15, or 422.36, but in
22such case the composite return shall be considered a separate
23return for purposes of this chapter and section 421.27.
24b. (1) If a pass-through entity is required to file its
25annual return under section 422.14, 422.15, or 422.36 in an
26electronic format, the pass-through entity shall file its
27composite return for the same taxable year in an electronic
28format specified by the department.
29(2) This paragraph applies to any form or schedule
30supporting a return required to be electronically filed or
31any amended return if the amended return meets any of the
32circumstances requiring electronic filing in this paragraph.
33c. A return subject to the electronic filing requirement in
34paragraph “b” that is filed in a manner other than an electronic
35format specified by the department shall not be considered a
-4-1valid return.
2d. The department shall adopt rules to implement this
3subsection.
4 Sec. 6. Section 422.36, Code 2022, is amended by adding the
5following new subsection:
6 NEW SUBSECTION. 8. a. A corporation shall file a return
7required under this section in an electronic format specified
8by the department for any tax year if any of the following
9circumstances apply:
10(1) The corporation has gross receipts of two hundred fifty
11thousand dollars or more, as defined by rule by the department.
12(2) The corporation reports twenty-five thousand dollars or
13more of Iowa tax credits on the return.
14b. A corporation described in subsection 5 shall file all
15returns required under this section in an electronic format
16specified by the department for any tax year if any of the
17following circumstances apply:
18(1) The corporation has gross receipts of two hundred fifty
19thousand dollars or more, as defined by rule by the department.
20(2) The corporation is required to provide ten or more Iowa
21schedules K-1 to shareholders.
22(3) The corporation reports twenty-five thousand dollars or
23more of Iowa tax credits on the return.
24c. This subsection applies to any form or schedule
25supporting a return required to be electronically filed or
26any amended return if the amended return meets any of the
27circumstances requiring electronic filing in this subsection.
28d. (1) Notwithstanding paragraphs “a” and “b”, the
29department may provide an exception to the requirement to file
30a return in an electronic format.
31(2) A return subject to the electronic filing requirement
32in this subsection that is filed in a manner other than in an
33electronic format specified by the department shall not be
34considered a valid return unless the department provides an
35exception pursuant to this paragraph.
-5- 1e. The department shall adopt rules to implement this
2subsection.
3 Sec. 7. Section 422.37, Code 2022, is amended by adding the
4following new subsection:
5 NEW SUBSECTION. 8. a. (1) The affiliated group shall
6file a return under this section for each taxable year in an
7electronic format specified by the department, regardless of
8the total gross receipts of or amount of credits reported by
9the affiliated group.
10(2) For purposes of the electronic filing requirement, a
11return of an affiliated group includes any form or schedule
12supporting the return or any amended return of the affiliated
13group.
14(3) The financial institution is a corporation subject
15to the electronic filing requirement under section 422.36,
16subsection 8, paragraph “b”.
17b. (1) Notwithstanding paragraph “a”, the department may
18provide an exception to file a return in an electronic format.
19(2) A return subject to the electronic filing requirement
20in paragraph “a” that is filed in a manner other than in an
21electronic format specified by the department shall not be
22considered a valid return unless the department provides an
23exception pursuant to this paragraph.
24c. The department shall adopt rules to implement this
25subsection.
26 Sec. 8. Section 422.62, Code 2022, is amended to read as
27follows:
28422.62 Due and delinquent dates.
291. The franchise tax is due and payable on the first
30day following the end of the taxable year of each financial
31institution, and is delinquent after the last day of the fourth
32month following the due date or forty-five days after the due
33date of the federal tax return, excluding extensions of time
34to file, whichever is the later. Every financial institution
35shall file a return as prescribed by the director on or before
-6-1the delinquency date.
22. a. (1) A financial institution shall file a return
3required under this section in an electronic format specified
4by the department for any tax year if any of the following
5circumstances apply:
6(a) The financial institution has two hundred fifty
7thousand dollars or more in gross receipts, as defined by rule
8by the department.
9(b) The financial institution reports twenty-five thousand
10dollars or more of Iowa tax credits on the return.
11(c) The financial institution is a corporation subject
12to the electronic filing requirement under section 422.36,
13subsection 8, paragraph “b”.
14(2) This paragraph “a” applies to any form or schedule
15supporting a return required to be electronically filed or
16any amended return if the amended return meets any of the
17circumstances requiring electronic filing in this paragraph.
18b. (1) Notwithstanding paragraph “a”, the department may
19provide an exception to the requirement to file a return in an
20electronic format.
21(2) A return subject to the electronic filing requirement
22in paragraph “a” that is filed in a manner other than in an
23electronic format specified by the department shall not be
24considered a valid return unless the department provides an
25exception pursuant to this paragraph.
26c. The department shall adopt rules to implement this
27subsection.
28 Sec. 9. APPLICABILITY.
291. Except as provided in subsection 2, this division of this
30Act applies to tax years ending on or after December 31, 2022,
31or for tax years ending on or after December 31 of the calendar
32year in which the department implements a system for receiving
33the electronic returns required by this division of this Act,
34whichever is later.
352. The section of this division of this Act amending section
-7-1422.14, subsection 1, applies to tax years ending on or after
2December 31, 2023, or for tax years ending on or after December
331 of the calendar year in which the department implements a
4system for receiving the electronic fiduciary returns required
5by this division of this Act, whichever is later.
63. The department of revenue shall notify the Code editor by
7December 1 of the calendar year the department has implemented
8a system for receiving the electronic returns or electronic
9fiduciary returns required by this division of this Act.
10DIVISION III
11ELECTRONIC FILING — CREDIT UNIONS
12 Sec. 10. Section 533.329, subsection 3, Code 2022, is
13amended to read as follows:
143. a. Returns shall be in the form the director of
15revenue prescribes, and shall be filed with the department of
16revenue on or before the last day of the fourth month after
17the expiration of the tax year. The moneys and credits tax is
18due and payable on the last day of the fourth month after the
19expiration of the tax year.
20b. A credit union shall file a return required under this
21section in an electronic format specified by the department for
22each tax year.
23c. (1) Notwithstanding paragraph “b”, the department may
24provide an exception to file a return in an electronic format.
25(2) A return subject to the electronic filing requirement
26in paragraph “b” that is filed in a manner other than in an
27electronic format specified by the department shall not be
28considered a valid return unless the department provides an
29exception pursuant to this paragraph.
30d. The department shall adopt rules to implement this
31subsection.
32 Sec. 11. APPLICABILITY.
331. This division of this Act applies to tax years ending
34on or after December 31, 2024, or for tax years ending on or
35after December 31 of the calendar year in which the department
-8-1implements a system for receiving the electronic returns
2required by this division of this Act, whichever is later.
32. The department of revenue shall notify the Code editor by
4December 1 of the calendar year the department has implemented
5a system for receiving electronic returns required by this
6division of this Act.
7DIVISION IV
8AUTHORITY TO CHARGE FEES
9 Sec. 12. Section 421.17, Code 2022, is amended by adding the
10following new subsection:
11 NEW SUBSECTION. 37. To establish a fee, by rule, and charge
12a person for a copy of a return. The fee shall be retained by
13the department of revenue.
14 Sec. 13. LEGISLATIVE INTENT. This division of this Act
15shall not be construed to prohibit the department of revenue
16from charging a fee for a copy of a return prior to the
17enactment of this division of this Act pursuant to another
18authority of the department.
19It is the intent of the general assembly that this division
20of this Act is a conforming amendment consistent with current
21state law, and the amendment does not change the application of
22the current law but instead reflects current law both before
23and after enactment of this division of this Act.
24DIVISION V
25AUTHORITY TO ACT ON BEHALF OF TAXPAYER
26 Sec. 14. Section 421.59, subsection 2, unnumbered paragraph
271, Code 2022, is amended to read as follows:
28Unless otherwise prohibited by law, the department may
29authorize the following persons to act and receive information
30on behalf of and exercise all of the rights of a taxpayer,
31regardless of whether a power of attorney has been filed
32pursuant to subsection 1:
33 Sec. 15. Section 421.59, subsection 2, paragraph d, Code
342022, is amended by striking the paragraph and inserting in
35lieu thereof the following:
-9- 1d. An individual holding the following title or position
2within a corporation, association, partnership, or other
3business entity:
4(1) An officer or employee of the corporation or association
5who is authorized to act on behalf of the corporation or
6association in tax matters.
7(2) A designated partner or employee of the partnership
8who is authorized to act on behalf of the partnership in tax
9matters.
10(3) A person authorized to act on behalf of the limited
11liability company in tax matters pursuant to a valid statement
12of authority or employee of the company who is authorized to
13act on behalf of the company in tax matters.
14 Sec. 16. Section 421.59, subsection 2, Code 2022, is amended
15by adding the following new paragraphs:
16 NEW PARAGRAPH. i. A trustee.
17(1) Upon request, the trustee shall submit to the department
18a certification of the trust, copy of the trust documents, or
19court order appointing the trustee.
20(2) The department has standing to petition the court that
21appointed the trustee to verify the appointment or to determine
22the scope of the appointment.
23 NEW PARAGRAPH. j. A person named as general or durable
24power of attorney on a document which is currently in force
25and such document has not been prescribed by the department of
26revenue.
27 Sec. 17. Section 421.59, Code 2022, is amended by adding the
28following new subsections:
29 NEW SUBSECTION. 3A. An individual acting on behalf of
30a taxpayer pursuant to subsection 2 must certify that the
31individual possesses actual authority to act on behalf of the
32taxpayer in tax matters.
33 NEW SUBSECTION. 3B. In addition to documents required under
34subsection 2, the department shall require any documents or
35other evidence to demonstrate an individual has authority to
-10-1act on behalf of the taxpayer before the department.
2DIVISION VI
3ELECTRONIC COMMUNICATION
4 Sec. 18. Section 421.60, subsection 11, Code 2022, is
5amended by striking the subsection and inserting in lieu
6thereof the following:
711. Electronic communication.
8a. As used in this subsection, “electronic communication”
9means a notice, correspondence, or other communication provided
10electronically.
11b. The department of revenue, by rule, may permit a person
12to elect to receive an electronic communication from the
13department.
14c. (1) Notwithstanding any provision of law to the
15contrary, when an electronic communication is posted to the
16department’s electronic portal for a person who has made such
17an election, the posting of the electronic communication shall
18satisfy any requirement of mailing or personal service in this
19title, chapter 272D, or sections 321.105A and 533.329.
20(2) The department may send any notice, correspondence,
21or other communication by mail to a person who has elected to
22receive an electronic communication from the department.
23(3) If the department sends a notice, correspondence,
24or other communication by both mail and by electronic
25communication, service occurs upon the earlier of when the
26communication is posted to the department’s electronic portal
27or mailed.
28d. The director of revenue may adopt rules and establish
29procedures under this subsection.
30DIVISION VII
31INCOME STATEMENTS TO BE PROVIDED TO THE DEPARTMENT
32 Sec. 19. Section 422.16, subsection 2, paragraphs b and c,
33Code 2022, are amended to read as follows:
34b. Every withholding agent on or before the end fifteenth
35day of the second month following the close of the calendar
-11-1year in which the withholding occurs shall make an annual
2reporting of taxes withheld and other information prescribed
3by the director and send to the department copies of wage and
4tax statements with the return income statements required
5by subsection 7. At the discretion of the director, the
6withholding agent shall not be required to send wage statements
7and tax income statements with the annual reporting return
8form report if the information is available from the internal
9revenue service or other state or federal agencies.
10c. If the director has reason to believe that the collection
11of the tax provided for in subsections 1 and 12 is in jeopardy,
12the director may require the employer or withholding agent to
13make the report file a return as required in subsection 2,
14paragraph “a”, and pay the tax at any time, in accordance with
15section 422.30. The director may authorize incorporated banks,
16trust companies, or other depositories authorized by law which
17are depositories or financial agents of the United States or of
18this state, to receive any tax imposed under this chapter, in
19the manner, at the times, and under the conditions the director
20prescribes. The director shall also prescribe the manner,
21times, and conditions under which the receipt of the tax by
22those depositories is to be treated as payment of the tax to
23the department.
24 Sec. 20. Section 422.16, subsection 7, Code 2022, is amended
25to read as follows:
267. a. Every withholding agent required to deduct and
27withhold a tax under subsections 1 and 12 of this section
28shall furnish to such employee, nonresident, or other person
29in respect of the remuneration income paid by such employer
30or withholding agent to such employee, nonresident, or other
31person during the calendar year, on or before January 31 of
32the succeeding year, or, in the case of employees, if the
33employee’s employment is terminated before the close of such
34calendar year, within thirty days from the day on which the
35last payment of wages or other taxable income is made, if
-12-1requested by such employee, but not later than January 31 of
2the following year, a written an income statement showing the
3following:
4(1) The name and address of such employer or withholding
5agent, and the taxpayer identification number of such employer
6or withholding agent.
7(2) The name of the employee, nonresident, or other person
8and that person’s federal social security account taxpayer
9identification number, together with the last known address of
10such employee, nonresident, or other person to whom wages have
11 or other taxable income has been paid during such period.
12(3) The gross amount of wages, or other taxable income, paid
13to the employee, nonresident, or other person.
14(4) The total amount deducted and withheld as tax under the
15provisions of subsections 1 and 12 of this section.
16(5) The total amount of federal income tax withheld.
17b. The income statements required to be furnished by this
18subsection in respect of any wages or other taxable Iowa income
19or any additional information required to be displayed on the
20income statement shall be in such form or forms as the director
21may, by regulation rule, prescribe.
22 Sec. 21. Section 422.16, subsection 10, paragraphs a and b,
23Code 2022, are amended to read as follows:
24a. An In addition to any other penalty provided by law,
25an employer or withholding agent required under this chapter
26 to furnish a statement required by this chapter who willfully
27furnishes a false or fraudulent statement, or who willfully
28fails to furnish the statement is, for each failure, subject
29to a civil penalty of five hundred dollars, the penalty to be
30in addition to any criminal penalty otherwise provided by the
31Code. to furnish or file an income statement required by this
32statement is subject to a civil penalty of five hundred dollars
33for each occurrence of the following:
34(1) Willful failure to furnish an employee, nonresident, or
35other person with an income statement.
-13- 1(2) Willfully furnishing an employee, nonresident, or other
2person with a false or fraudulent income statement.
3(3) Willful failure to file an income statement with the
4department.
5(4) Willfully filing a false or fraudulent income statement
6with the department.
7b. In addition to the tax or additional tax, any A person,
8 or withholding agent shall pay a, or other person required by
9this section to file a return is subject to the penalty as
10provided in section 421.27. Any penalty assessed under section
11421.27 shall be in addition to the tax or additional tax due.
12 The taxpayer shall also pay interest on the tax or additional
13tax at the rate in effect under section 421.7, for each month
14counting each fraction of a month as an entire month, computed
15from the date the semimonthly, monthly, or quarterly deposit
16form was required to be filed. The penalty and interest become
17a part of the tax due from the withholding agent.
18 Sec. 22. Section 422.16, Code 2022, is amended by adding the
19following new subsection:
20 NEW SUBSECTION. 15. The director may allow additional
21time for filing documents required under this section with the
22department in the case of illness, disability, absence, or if
23good cause is shown.
24DIVISION VIII
25REMITTANCES OF TRANSFER TAX
26 Sec. 23. Section 428A.8, subsection 1, paragraphs a and c,
27Code 2022, are amended to read as follows:
28a. On or before the tenth day of each month the county
29recorder shall determine and pay remit to the treasurer of
30state department of revenue eighty-two and three-fourths
31percent of the receipts from the real estate transfer tax
32collected during the preceding month and the treasurer of state
33 department of revenue shall deposit and transfer the receipts
34as provided in subsection 2.
35c. Any tax or additional tax found to be due shall be
-14-1collected by the county recorder. If the county recorder
2is unable to collect the tax, the director of revenue shall
3collect the tax in the same manner as taxes are collected in
4chapter 422, subchapter III. If collected by the director
5of revenue, the director shall pay remit to the county its
6proportionate share of the tax. Section 422.25, subsections
71, 2, 3, and 4, and sections 422.26, 422.28 through 422.30,
8and 422.73, consistent with this chapter, apply with respect
9to the collection of any tax or additional tax found to be due,
10in the same manner and with the same effect as if the deed,
11instrument, or writing were an income tax return within the
12meaning of those statutes.
13 Sec. 24. Section 428A.8, subsection 2, unnumbered paragraph
141, Code 2022, is amended to read as follows:
15The treasurer of state department of revenue shall deposit
16or transfer the receipts paid remitted to the treasurer of
17state department of revenue pursuant to subsection 1 to either
18the general fund of the state, the housing trust fund created
19in section 16.181, or the shelter assistance fund created in
20section 16.41 as follows:
21 Sec. 25. Section 428A.9, Code 2022, is amended to read as
22follows:
23428A.9 Refund of tax.
24To receive a refund from the state the taxpayer shall
25petition the state appeal board for a refund of the amount of
26overpayment of the tax paid remitted to the treasurer of state
27 department of revenue. To receive a refund from the county
28the taxpayer shall petition the board of supervisors for a
29refund of the remaining portion of the overpayment paid to that
30county.
31DIVISION IX
32BOARD OF REVIEW ELIGIBILITY
33 Sec. 26. Section 441.32, Code 2022, is amended by adding the
34following new subsection:
35 NEW SUBSECTION. 3. If a board member is removed under this
-15-1section, the board member shall not be eligible for appointment
2to a board of review in this state for six years following the
3date of the removal.
4DIVISION X
5EQUALIZATION ADJUSTMENTS — appeals
6 Sec. 27. Section 441.48, Code 2022, is amended to read as
7follows:
8441.48 Notice of adjustment — protest appeal — final
9action.
101. Before the department of revenue shall adjust the
11valuation of any class of property any such percentage, the
12department shall first serve ten days’ notice by mail, on the
13county auditor of the county whose valuation is proposed to be
14adjusted.
152. If the county or assessing jurisdiction intends
16to protest appeal the proposed adjustment, the board of
17supervisors or city council, city or county attorney, or
18other official of the county or assessing jurisdiction, as
19applicable, shall provide the department with written notice of
20intent to protest prior to expiration of the ten days’ notice
21 appeal within ten days of the notice provided by the department
22of revenue under subsection 1.
233. After expiration of the ten days’ notice, the county
24or assessing jurisdiction may appear by its city council or
25board of supervisors, city or county attorney, or city or
26county officials, and make written or oral protest against such
27proposed adjustment. Upon receiving a timely notice of intent
28to appeal under subsection 2, the department shall schedule a
29hearing on the proposed adjustment with the county or assessing
30jurisdiction. A county or assessing jurisdiction may submit
31an oral presentation at the hearing supported by written
32documentation or may submit a written presentation in lieu
33of making an oral presentation at a hearing. The county or
34assessing jurisdiction shall submit all written documentation
35to the department prior to the date of the hearing or, if the
-16-1county or assessing jurisdiction elects a written presentation,
2not later than the date the written presentation is submitted.
34. The protest appeal shall consist simply of a statement
4of the error, or errors, complained of with such facts and
5documentation as may lead to their correction of such errors.
65. Appeals of the proposed adjustment under this section
7are not subject to Code chapter 17A.After written protest is
8received, or an oral protest is heard the hearing is held or
9the written presentation is submitted, the final action may be
10taken in reference to the proposed adjustment.
11DIVISION XI
12BUSINESS PROPERTY TAX CREDIT AND ASSESSMENT LIMITATIONS
13 Sec. 28. Section 2.48, subsection 3, paragraph f,
14subparagraph (5), Code 2022, is amended by striking the
15subparagraph.
16 Sec. 29. Section 331.512, subsection 5, Code 2022, is
17amended by striking the subsection.
18 Sec. 30. Section 331.559, subsection 15, Code 2022, is
19amended by striking the subsection.
20 Sec. 31. Section 357H.9, subsection 1, paragraph d,
21subparagraph (2), Code 2022, is amended to read as follows:
22(2) The difference between the actual value of the property
23as determined by the assessor each year and the percentage
24of adjustment certified for that year by the director of
25revenue on or before November 1 assessed value of the property
26following application of the assessment limitations pursuant to
27section 441.21, subsection 9, multiplied by the actual value of
28the property as determined by the assessor, shall be subtracted
29from the actual value of the property as determined pursuant to
30section 403.19, subsection 1.
31 Sec. 32. Section 357H.9, subsection 1, paragraph f,
32subparagraph (1), Code 2022, is amended to read as follows:
33(1) “Base year taxable value” means the actual value of
34the property as determined in section 403.19, subsection 1,
35multiplied by the percentage of adjustment certified for the
-17-1assessment year specified in section 403.19, subsection 1,
2by the director of revenue on or before November 1 following
3application of the assessment limitations pursuant to section
4441.21, subsection 9.
5 Sec. 33. Section 403.20, Code 2022, is amended to read as
6follows:
7403.20 Percentage of adjustment considered in value
8assessment.
9In determining the assessed value of property within an
10urban renewal area which is subject to a division of tax
11revenues pursuant to section 403.19, the difference between the
12actual value of the property as determined by the assessor each
13year and the percentage of adjustment certified for that year
14by the director of revenue on or before November 1 pursuant
15to section 441.21, subsection 9, multiplied by the actual
16value of the property as determined by the assessor following
17application of the assessment limitations under section 441.21,
18subsection 9, shall be subtracted from the actual value of the
19property as determined pursuant to section 403.19, subsection
201. If the assessed value of the property as determined
21pursuant to section 403.19, subsection 1, is reduced to zero,
22the additional valuation reduction shall be subtracted from the
23actual value of the property as determined by the assessor.
24 Sec. 34. Section 426C.2, Code 2022, is amended to read as
25follows:
26426C.2 Business property tax credit fund — appropriation.
271. A business property tax credit fund is created in the
28state treasury under the authority of the department. For the
29fiscal year beginning July 1, 2014, there is appropriated from
30the general fund of the state to the department to be credited
31to the fund, the sum of fifty million dollars to be used for
32business property tax credits authorized in this chapter. For
33the fiscal year beginning July 1, 2015, there is appropriated
34from the general fund of the state to the department to be
35credited to the fund, the sum of one hundred million dollars
-18-1to be used for business property tax credits authorized in
2this chapter. For the fiscal year beginning July 1, 2016, and
3each fiscal year thereafter beginning before July 1, 2023,
4there is appropriated from the general fund of the state to the
5department to be credited to the fund, the sum of one hundred
6twenty-five million dollars to be used for business property
7tax credits authorized in this chapter.
82. Notwithstanding section 12C.7, subsection 2, interest or
9earnings on moneys deposited in the fund shall be credited to
10the fund. Moneys in the fund are not subject to the provisions
11of section 8.33 and shall not be transferred, used, obligated,
12appropriated, or otherwise encumbered except as provided in
13this chapter. However, moneys remaining in the fund at the end
14of the fiscal year beginning July 1, 2022, shall be transferred
15by the department for deposit in the general fund of the state.
16 Sec. 35. NEW SECTION. 426C.10 Future repeal.
17This chapter is repealed July 1, 2024.
18 Sec. 36. Section 441.21, subsection 5, Code 2022, is amended
19to read as follows:
205. a. For valuations established as of January 1, 1979,
21property valued by the department of revenue pursuant to
22chapters 428, 433, 437, and 438 shall be considered as one
23class of property and shall be assessed as a percentage of
24its actual value. The percentage shall be determined by the
25director of revenue in accordance with the provisions of this
26section. For valuations established as of January 1, 1979, the
27percentage shall be the quotient of the dividend and divisor
28as defined in this section. The dividend shall be the total
29actual valuation established for 1978 by the department of
30revenue, plus ten percent of the amount so determined. The
31divisor for property valued by the department of revenue
32pursuant to chapters 428, 433, 437, and 438 shall be the
33valuation established for 1978, plus the amount of value added
34to the total actual value by the revaluation of the property
35by the department of revenue as of January 1, 1979. For
-19-1valuations established as of January 1, 1980, property valued
2by the department of revenue pursuant to chapters 428, 433,
3437, and 438 shall be assessed at a percentage of its actual
4value. The percentage shall be determined by the director of
5revenue in accordance with the provisions of this section. For
6valuations established as of January 1, 1980, the percentage
7shall be the quotient of the dividend and divisor as defined in
8this section. The dividend shall be the total actual valuation
9established for 1979 by the department of revenue, plus eight
10percent of the amount so determined. The divisor for property
11valued by the department of revenue pursuant to chapters 428,
12433, 437, and 438 shall be the valuation established for 1979,
13plus the amount of value added to the total actual value by the
14revaluation of the property by the department of revenue as of
15January 1, 1980. For valuations established as of January 1,
161981, and each year thereafter, the percentage of actual value
17at which property valued by the department of revenue pursuant
18to chapters 428, 433, 437, and 438 shall be assessed shall be
19calculated in accordance with the methods provided herein,
20except that any references to ten percent in this subsection
21shall be eight percent. For valuations established on or after
22January 1, 2013, property valued by the department of revenue
23pursuant to chapter 434 shall be assessed at a percentage
24 portion of its actual value equal to the percentage of actual
25value determined in the same manner at which property assessed
26as commercial property is assessed under paragraph “b” for the
27same assessment year.
28b. For valuations established on or after January 1, 2013,
29commercial property, excluding properties referred to in
30section 427A.1, subsection 9, shall be assessed at a percentage
31 portion of its actual value, as determined in this paragraph
32“b”.
33(1) For valuations established for the assessment year
34beginning January 1, 2013, the percentage of actual value
35as equalized by the department of revenue as provided in
-20-1section 441.49 at which commercial property shall be assessed
2shall be ninety-five percent. For valuations established
3for the assessment year beginning January 1, 2014, and each
4assessment year thereafter beginning before January 1, 2022,
5the percentage of actual value as equalized by the department
6of revenue as provided in section 441.49 at which commercial
7property shall be assessed shall be ninety percent.
8(2) For valuations established for the assessment year
9beginning January 1, 2022, and each assessment year thereafter,
10the portion of actual value at which each property unit of
11commercial property shall be assessed shall be the sum of the
12following:
13(a) An amount equal to the product of the assessment
14limitation percentage applicable to residential property under
15subsection 4 for that assessment year multiplied by the actual
16value of the property that exceeds zero dollars but does not
17exceed one hundred fifty thousand dollars.
18(b) An amount equal to ninety percent of the actual value of
19the property for that assessment year that exceeds one hundred
20fifty thousand dollars.
21c. For valuations established on or after January 1, 2013,
22industrial property, excluding properties referred to in
23section 427A.1, subsection 9, shall be assessed at a percentage
24 portion of its actual value, as determined in this paragraph
25“c”.
26(1) For valuations established for the assessment year
27beginning January 1, 2013, the percentage of actual value
28as equalized by the department of revenue as provided in
29section 441.49 at which industrial property shall be assessed
30shall be ninety-five percent. For valuations established
31for the assessment year beginning January 1, 2014, and each
32assessment year thereafter beginning before January 1, 2022,
33the percentage of actual value as equalized by the department
34of revenue as provided in section 441.49 at which industrial
35property shall be assessed shall be ninety percent.
-21- 1(2) For valuations established for the assessment year
2beginning January 1, 2022, and each assessment year thereafter,
3the portion of actual value at which each property unit of
4industrial property shall be assessed shall be the sum of the
5following:
6(a) An amount equal to the product of the assessment
7limitation percentage applicable to residential property under
8subsection 4 for that assessment year multiplied by the actual
9value of the property that exceeds zero dollars but does not
10exceed one hundred fifty thousand dollars.
11(b) An amount equal to ninety percent of the actual value of
12the property for that assessment year that exceeds one hundred
13fifty thousand dollars.
14d. For valuations established for the assessment year
15beginning January 1, 2019, and each assessment year thereafter,
16the percentages or portions of actual value at which property
17is assessed, as determined under this subsection, shall not be
18applied to the value of wind energy conversion property valued
19under section 427B.26 the construction of which is approved by
20the Iowa utilities board on or after July 1, 2018.
21e. (1) For each fiscal year beginning on or after July 1,
222023, there is appropriated from the general fund of the state
23to the department of revenue the sum of one hundred twenty-five
24million dollars to be used for payments under this paragraph
25calculated as a result of the assessment limitations imposed
26under paragraph “b”, subparagraph (2), subparagraph division
27(a), and paragraph “c”, subparagraph (2), subparagraph division
28(a).
29(2) For fiscal years beginning on or after July 1, 2023,
30each county treasurer shall be paid by the department of
31revenue an amount calculated under subparagraph (4). If an
32amount appropriated for the fiscal year is insufficient to make
33all payments as calculated under subparagraph (4), the director
34of revenue shall prorate the payments to the county treasurers
35and shall notify the county auditors of the pro rata percentage
-22-1on or before September 30.
2(3) On or before July 1 of each fiscal year, the assessor
3shall report to the county auditor that portion of the total
4actual value of all commercial property and industrial property
5in the county that is subject to the assessment limitations
6imposed under paragraph “b”, subparagraph (2), subparagraph
7division (a), and paragraph “c”, subparagraph (2), subparagraph
8division (a), for the assessment year used to calculate the
9taxes due and payable in that fiscal year.
10(4) On or before September 1 of each fiscal year, the county
11auditor shall prepare a statement, based on the report received
12in subparagraph (3) and information transmitted to the county
13auditor under chapter 434, listing for each taxing district in
14the county:
15(a) The product of the portion of the total actual value
16of all commercial property, industrial property, and property
17valued by the department under chapter 434 in the county
18that is subject to the assessment limitations imposed under
19paragraph “b”, subparagraph (2), subparagraph division (a), and
20paragraph “c”, subparagraph (2), subparagraph division (a), for
21the applicable assessment year used to calculate taxes which
22are due and payable in the applicable fiscal year multiplied
23by the difference, stated as a percentage, between ninety
24percent and the assessment limitation percentage applicable
25to residential property under subsection 4 for the applicable
26assessment year.
27(b) The tax levy rate per one thousand dollars of assessed
28value for each taxing district for the applicable fiscal year.
29(c) The amount of the payment for each county is equal to
30the amount determined pursuant to subparagraph division (a),
31multiplied by the tax rate specified in subparagraph division
32(b), and then divided by one thousand dollars.
33(5) The county auditor shall certify and forward one copy of
34the statement described in subparagraph (4) to the department
35of revenue not later than September 1 of each fiscal year.
-23- 1(6) The amounts determined under this paragraph shall
2be paid by the department to the county treasurers in equal
3installments in September and March of each year. The county
4treasurer shall apportion the payments among the eligible
5taxing districts in the county and the amounts received by each
6taxing authority shall be treated the same as property taxes
7paid.
8f. For the purposes of this subsection, unless the context
9otherwise requires:
10(1) “Contiguous parcels” means any of the following:
11(a) Parcels that share a common boundary.
12(b) Parcels within the same building or structure
13regardless of whether the parcels share a common boundary.
14(c) Permanent improvements to the land that are situated
15on one or more parcels of land that are assessed and taxed
16separately from the permanent improvements if the parcels of
17land upon which the permanent improvements are situated share
18a common boundary.
19(2) “Parcel” means the same as defined in section 445.1.
20“Parcel” also means that portion of a parcel assigned a
21classification of commercial property or industrial property
22pursuant to section 441.21, subsection 14, paragraph “b”.
23(3) “Property unit” means a parcel or contiguous parcels
24all of which are located within the same county, with the same
25property tax classification, are owned by the same person, and
26are operated by that person for a common use and purpose.
27 Sec. 37. Section 441.21, subsections 9 and 10, Code 2022,
28are amended to read as follows:
299. Not later than November 1, 1979, and November 1 of
30each subsequent year, the director shall certify to the
31county auditor of each county the percentages of actual
32value at which residential property, agricultural property,
33commercial property, industrial property, property valued by
34the department of revenue pursuant to chapter 434, and property
35valued by the department of revenue pursuant to chapters 428,
-24-1433, 437, and 438 in each assessing jurisdiction in the county
2shall be assessed for taxation, including for assessment years
3beginning on or after January 1, 2022, the percentages used to
4apply the assessment limitations under subsection 5, paragraphs
5“b” and “c”. The county auditor shall proceed to determine
6the assessed values of agricultural property, residential
7property, commercial property, industrial property, property
8valued by the department of revenue pursuant to chapter 434,
9and property valued by the department of revenue pursuant to
10chapters 428, 433, 437, and 438 by applying such percentages
11to the current actual value of such property, as reported to
12the county auditor by the assessor, and the assessed values so
13determined shall be the taxable values of such properties upon
14which the levy shall be made.
1510. The percentage percentages of actual value computed
16by the department of revenue for agricultural property,
17residential property, commercial property, industrial property,
18property valued by the department of revenue pursuant to
19chapter 434, and property valued by the department of revenue
20pursuant to chapters 428, 433, 437, and 438, including for
21assessment years beginning on or after January 1, 2022, the
22percentages used to apply the assessment limitations under
23subsection 5, paragraphs “b” and “c”, and used to determine
24assessed values of those classes of property does do not
25constitute a rule as defined in section 17A.2, subsection 11.
26 Sec. 38. RETROACTIVE APPLICABILITY. This division of this
27Act applies retroactively to assessment years beginning on or
28after January 1, 2022.
29DIVISION XII
30WAGE ASSIGNMENT NOTICE
31 Sec. 39. Section 421.17B, subsection 3, paragraph a, Code
322022, is amended to read as follows:
33a. (1) The facility may proceed under this section only if
34twenty days’ notice of intent has been provided sent by regular
35mail to the last known address of the obligor, notifying
-25-1the obligor that the obligor is subject to this section and
2the facility intends to use the process established in this
3section. If the facility determines that collection of the
4debt may be in jeopardy, the facility may request that the
5employer deliver notice of the wage assignment simultaneously
6with the remainder of or in lieu of the obligor’s compensation
7due from the employer. The twenty days’ notice period shall
8not be required if the facility determines that the collection
9of past due amounts would be jeopardized.
10(2) The facility may obtain one or more wage assignments
11of an obligor who is subject to this section. If the obligor
12has more than one employer, the facility may receive wage
13assignments from one or more of the employers until the full
14debt obligation of the obligor is satisfied. If an obligor has
15more than one employer, the facility shall give notice to all
16employers from whom an assignment is sought.
17 Sec. 40. Section 421.17B, subsection 3, paragraph b,
18unnumbered paragraph 1, Code 2022, is amended to read as
19follows:
20 The facility shall notify an obligor subject to this section
21of the initiation of the wage assignment action.The notice of
22initiation from the facility to the obligor shall be sent by
23regular mail within two working days of sending the notice to
24the employer pursuant to subsection 6, paragraph “b”, and shall
25 contain all of the following:
26 Sec. 41. Section 421.17B, subsection 4, Code 2022, is
27amended by adding the following new paragraph:
28 NEW PARAGRAPH. c. The facility may obtain multiple wage
29assignments of an obligor who is subject to this section. If
30the obligor has multiple employers, the facility may receive
31wage assignments from each employer until the full debt
32obligation of the obligor is satisfied. The facility shall
33give notice to each employer when the facility is seeking a
34wage assignment.
35 Sec. 42. Section 421.17B, subsection 6, paragraph b, Code
-26-12022, is amended to read as follows:
2b. The To initiate a wage assignment, the facility shall
3send a notice to the employer within fourteen days of sending
4 more than twenty days after the notice of the wage assignment
5 intent to use the levy process is sent to the obligor pursuant
6to subsection 3, paragraph “a”. The notice shall inform the
7employer of the amount to be assigned to the facility from each
8wage, salary, or payment period that is due the obligor. The
9facility may receive assignment of up to one hundred percent
10of the obligor’s disposable income, salary, or payment for any
11given period until the full obligation to the facility is paid
12in full.
13 Sec. 43. Section 421.17B, subsection 9, paragraph a,
14unnumbered paragraph 1, Code 2022, is amended to read as
15follows:
16A notice of wage assignment given sent to the obligor under
17this section is effective without the serving of another notice
18until the earliest of either earlier of the following:
19DIVISION XIII
20OUT-OF-STATE RECIPROCAL COLLECTIONS
21 Sec. 44. Section 421.24, Code 2022, is amended by striking
22the section and inserting in lieu thereof the following:
23421.24 Reciprocal interstate enforcement.
241. For the purposes of this section, the terms “tax” and
25“taxes” include interest and penalties due under any taxing
26statute, and liability for interest or penalties, or both,
27due under a taxing statute of another state or a political
28subdivision of another state, and shall be recognized and
29enforced by the courts of this state to the same extent that
30the laws of the other state permit the enforcement of liability
31for interest or penalties, or both, due under a taxing statute
32of this state or a political subdivision of this state.
332. a. The director of revenue shall have the authority
34to enter into an agreement with a department or agency of any
35other state for the department or agency of the other state to
-27-1collect delinquent accounts, charges, fees, loans, taxes, or
2other indebtedness owed to, placed with, or being collected
3by the central debt collection facility of the department of
4revenue. The department may retain from the amounts collected
5a fee established by agreement with the department or agency
6of the other state.
7b. The director of revenue shall have the authority to
8enter into an agreement with a department or agency of any
9other state for the centralized debt collection facility to
10collect delinquent accounts, charges, fees, loans, taxes, or
11other indebtedness owed to, placed with, or being collected
12by the other state. The obligations or indebtedness of the
13other state referred to the facility must be delinquent and not
14subject to litigation, claim, appeal, or review pursuant to the
15appropriate remedies of the state. The department may retain
16from the amounts collected a fee established by agreement with
17the department or agency of the other state.
18c. Upon referral of a delinquent balance from the department
19or agency of another state pursuant to paragraph “b”, the
20department shall send written notification to the obligor by
21regular mail to the obligor’s last known mailing address. The
22notification shall contain an explanation of the balance owed,
23the department or agency to which the balance is owed, that the
24department has entered into an agreement to collect the balance
25owed, and the obligor’s opportunity to give written notice of
26intent to contest the department’s right to collect the amount
27owed.
283. a. Challenges under this section may be initiated
29only by an obligor. The department’s review of its right to
30reciprocal collection is not subject to chapter 17A.
31b. The obligor challenging the reciprocal collection shall
32submit a written challenge in the manner provided in the notice
33described in subsection 2, paragraph “c”, within fifteen days of
34the date of the notice.
35c. The department, upon receipt of a written challenge,
-28-1shall provide written notice of the challenge to the referring
2department or agency. The department shall review the
3information provided by the referring department or agency and
4shall obtain additional information if necessary to establish
5that the liability is delinquent and not subject to appeal, or
6to verify the identity of the obligor or the amount owed. The
7department shall set a time to occur within ten days of receipt
8of the challenge to review the relevant facts of the challenge
9with the obligor. An alternative time may be set at the
10request of the obligor. If the obligor does not participate in
11the review at the scheduled time and an alternative time is not
12requested and approved, the review shall take place without the
13obligor being present. Only a determination that the referred
14liability is not delinquent or is subject to challenge or a
15mistake of fact, including a mistake in the identity of the
16obligor, or a mistake in the amount owed, shall be considered
17as a reason to reject the referred liability.
18d. If the department determines that a mistake of fact
19has occurred or that the liability is not delinquent or is
20subject to challenge, the department shall reject referral of
21the liability and shall take no further action to collect the
22liability.
23e. If the department finds no mistake of fact and that
24the liability is delinquent and not subject to challenge,
25the department shall deny the challenge and provide a notice
26of that effect to the obligor and may proceed to collect the
27balance owed.
284. a. At the request of the director the attorney general
29may bring suit in the name of this state, in the appropriate
30court of any other state to collect any tax legally due in
31this state, and any political subdivision of this state or the
32appropriate officer, acting in its behalf, may bring suit in
33the appropriate court of any other state to collect any tax
34legally due to such political subdivision.
35b. The courts of this state shall recognize and enforce
-29-1liabilities for taxes lawfully imposed by any other state, or
2any political subdivision of the other state, which extends
3a like comity to this state, and the duly authorized officer
4of any such state or a political subdivision of such state may
5sue for the collection of such tax in the courts of this state.
6A certificate by the secretary of state of such other state
7that an officer suing for the collection of such a tax is duly
8authorized to collect the same shall be conclusive proof of
9such authority.
10c. The courts of this state shall not enforce interest
11rates or penalties on taxes of any other state which exceed the
12interest rates and penalties imposed by the state of Iowa for
13the same or a similar tax.
145. Thirty days following the mailing of notice pursuant
15to subsection 2, paragraph “c”, if no written challenge is
16received, or upon the department providing notice of denial
17of a challenge pursuant to subsection 3, paragraph “e”, any
18tax amount referred to the facility under subsection 2 shall
19be treated as the equivalent of individual income tax that is
20final, due and payable, and may be collected in any manner
21authorized under the law for collection of a delinquent tax
22liability, including but not limited to the recording of a
23notice of state tax lien or issuance of a distress warrant.
246. The department may release information otherwise
25confidential under section 422.20 or 422.72 to the department
26or agency of the other state, provided the department or agency
27of the other state agrees to keep such information confidential
28as defined by Iowa law. An employee or contractor of the
29department or agency of the other state shall not be required
30to complete the confidentiality training or acknowledgment
31requirements of the department.
32DIVISION XIV
33PASS-THROUGH ENTITY TAXATION
34 Sec. 45. Section 422.25A, subsection 3, Code 2022, is
35amended to read as follows:
-30- 13. State partnership pass-through representative.
2Notwithstanding any other law to the contrary, the state
3partnership pass-through representative for the reviewed
4year shall have the sole authority to act on behalf of
5the partnership or pass-through entity with respect to an
6action required or permitted to be taken by a partnership or
7pass-through entity under this section or section 422.28 or
8422.29 with respect to final federal partnership adjustments
9arising from a partnership level audit or an administrative
10adjustment request, and its direct partners and indirect
11partners shall be bound by those actions.
12 Sec. 46. Section 422.25A, subsection 4, paragraph a,
13subparagraph (3), Code 2022, is amended to read as follows:
14(3) File an amended composite return under section 422.13,
15Code 2021, or under section 422.16B, as applicable, if one
16was originally required to be filed, and if applicable for
17withholding from partners, file an amended withholding report
18under section 422.16, Code 2021, and pay the additional amount
19under this title that would have been due had the final federal
20partnership adjustments been reported properly as required,
21including any applicable interest and penalties.
22 Sec. 47. Section 422.25A, subsection 4, paragraph b,
23subparagraph (3), Code 2022, is amended to read as follows:
24(3) If the direct partner is a tiered partner and subject to
25section 422.13, Code 2021, or section 422.16B, file an amended
26composite return under section 422.13, Code 2021, or under
27section 422.16B, as applicable, if such return was originally
28required to be filed, and if applicable for withholding from
29partners file an amended withholding report under section
30422.16, Code 2021, if one was originally required to be filed.
31 Sec. 48. Section 422.25A, subsection 4, paragraph c,
32subparagraph (3), Code 2022, is amended to read as follows:
33(3) Within ninety days after the time for filing and
34furnishing statements to tiered partners and their partners as
35established by section 6226 of the Internal Revenue Code and
-31-1the regulations thereunder, if the indirect partner is a tiered
2partner and subject to section 422.13, Code 2021, or section
3422.16B, file an amended composite return under section 422.13,
4Code 2021, or under section 422.16B, as applicable, if such
5return was originally required to be filed, and if applicable
6for withholding from partners, file an amended withholding
7report under section 422.16, Code 2021, if one was originally
8required to be filed.
9 Sec. 49. Section 422.25B, Code 2022, is amended to read as
10follows:
11422.25B State partnership pass-through representative.
121. As used in this section, all words and phrases defined
13in section 422.25A shall have the same meaning given them by
14that section.
152. The state partnership pass-through representative for
16the reviewed year for a partnership shall be the partnership’s
17federal partnership representative with respect to an action
18required or permitted to be taken by a state partnership
19 pass-through representative under this chapter for a reviewed
20year, unless the partnership designates in writing another
21person as the state partnership pass-through representative as
22provided in subsection 3. The state partnership pass-through
23 representative for the reviewed year for a pass-through entity
24is the person designated in subsection 3.
253. The department may establish reasonable qualifications
26for a person to be a state partnership pass-through
27 representative. If a partnership desires to designate a
28person other than the federal partnership representative, the
29partnership shall designate such person in the manner and
30form prescribed by the department. A pass-through entity
31shall designate a person as the state partnership pass-through
32 representative in the manner and form prescribed by the
33department. A partnership or pass-through entity shall be
34allowed to change such designation by notifying the department
35at the time the change occurs in the manner and form prescribed
-32-1by the department.
24. The department may adopt any rules pursuant to chapter
317A to implement this section.
4 Sec. 50. Section 422.25C, subsections 2 and 3, Code 2022,
5are amended to read as follows:
62. For tax years beginning on or after January 1, 2020, any
7adjustments to a partnership’s or pass-through entity’s items
8of income, gain, loss, expense, or credit, or an adjustment to
9such items allocated to a partner that holds an interest in a
10partnership or pass-through entity for the reviewed year by
11the department as a result of a state partnership audit, shall
12be determined at the partnership level or pass-through entity
13level in the same manner as provided by section 6221(a) of the
14Internal Revenue Code and the regulations thereunder unless a
15different treatment is specifically provided in this title.
16The provisions of sections 6222, 6223, and 6227 of the Internal
17Revenue Code and the regulations thereunder shall also apply to
18a partnership or pass-through entity and its direct or indirect
19partners in the same manner as provided in such sections unless
20a different treatment is specifically provided in this title.
21For purposes of applying such sections, due account shall be
22made for differences in federal and Iowa terminology. The
23adjustment provided by section 6221(a) of the Internal Revenue
24Code shall be determined as provided in such section but shall
25be based on Iowa taxable income or other tax attributes of
26the partnership or pass-through entity as determined pursuant
27to this chapter for the reviewed year. The department shall
28issue a notice of adjustment to the partnership or pass-through
29entity. Such notice shall be treated as an assessment for
30the purposes of section 422.25, and the notice shall be
31appealable by the partnership or pass-through entity pursuant
32to sections 422.28 and 422.29 and shall be issued within the
33time period provided by section 422.25. Once the adjustments
34to partnership-related or pass-through entity-related items or
35reallocations of income, gains, losses, expenses, credits, and
-33-1other attributes among such partners for the reviewed year are
2finally determined, the partnership or pass-through entity and
3any direct partners or indirect partners shall then be subject
4to the provisions of section 422.25, subsection 1, paragraph
5“e”, and section 422.25A in the same manner as if the state
6partnership audit were a federal partnership level audit, and
7as if the final state partnership audit adjustment were a final
8federal partnership adjustment. The penalty exceptions in
9section 421.27, subsection 2, paragraphs “b” and “c”, shall not
10apply to a state partnership audit.
113. The state partnership pass-through representative for
12the reviewed year as determined under section 422.25B shall
13have the sole authority to act on behalf of the partnership
14or pass-through entity with respect to an action required or
15permitted to be taken by a partnership or pass-through entity
16under this section, including proceedings under section 422.28
17or 422.29, and the partnership’s or pass-through entity’s
18direct partners and indirect partners shall be bound by those
19actions.
20 Sec. 51. COMPOSITE RETURN UNUSED TAX CREDIT CARRYFORWARDS
21FROM TAX YEAR 2021. Notwithstanding any other provision
22of law to the contrary, if a pass-through entity filing
23composite returns under section 422.13, subsection 5, Code
242021, has a nonrefundable income tax credit carryforward amount
25attributable to the composite return following the close of
26the entity’s composite return tax year that began during the
272021 calendar year, the pass-through entity may allocate those
28income tax credit carryforward amounts to the pass-through
29entity’s partners, members, beneficiaries, or shareholders in
30the pass-through entity’s tax year that begins during the 2022
31calendar year, in the amount designated by the pass-through
32entity and in the manner and form prescribed by the department
33of revenue. The income tax credit shall be the same in the
34hands of the partner, member, beneficiary, or shareholder as in
35the pass-through entity, and may be claimed for any tax year
-34-1that the pass-through entity could have claimed the tax credit.
2DIVISION XV
3INHERITANCE TAX — UNKNOWN HEIRS
4 Sec. 52. Section 450.93, Code 2022, is amended to read as
5follows:
6450.93 Unknown heirs.
71. Whenever For a decedent dying before January 1, 2021,
8whenever the heirs or persons entitled to any estate or any
9interest therein are unknown or their place of residence
10cannot with reasonable certainty be ascertained, a tax of five
11percent shall be paid to the department of revenue upon all
12such estates or interests, subject to refund as provided herein
13in other cases; provided, however, that if it be afterwards
14determined that any estate or interest passes to aliens, there
15shall be paid within sixty days after such determination and
16before delivery of such estate or property, an amount equal to
17the difference between five percent, the amount paid, and the
18amount which such person should pay under the provisions of
19this chapter.
202. a. For a decedent dying on or after January 1, 2021,
21but before January 1, 2022, the tax imposed in subsection 1
22shall be reduced by twenty percent, and rounded to the nearest
23one-hundredth of one percent.
24b. For a decedent dying on or after January 1, 2022,
25but before January 1, 2023, the tax imposed in subsection 1
26shall be reduced by forty percent, and rounded to the nearest
27one-hundredth of one percent.
28c. For a decedent dying on or after January 1, 2023,
29but before January 1, 2024, the tax imposed in subsection 1
30shall be reduced by sixty percent, and rounded to the nearest
31one-hundredth of one percent.
32d. For a decedent dying on or after January 1, 2024, but
33before January 1, 2025, the tax imposed in subsection 1 shall
34be reduced by eighty percent, and rounded to the nearest
35one-hundredth of one percent.
-35- 13. For a decedent dying on or after January 1, 2025, the tax
2in subsection 1 shall not be imposed.
3 Sec. 53. RETROACTIVE APPLICABILITY. This division of this
4Act applies retroactively to January 1, 2021.
5DIVISION XVI
6NOTICE REQUIREMENTS FOR PUBLICATION OF INTEREST RATES
7 Sec. 54. Section 421.7, subsection 6, Code 2022, is amended
8to read as follows:
96. In November of each year the director shall cause an
10advisory notice to be published in the Iowa administrative
11bulletin and in a newspaper of general circulation in this
12state on the internet site of the department, stating the
13rate of interest to be in effect on or after January 1 of
14the following year, as established by this section. The
15calculation and publication of the rate of interest by the
16director is exempt from chapter 17A.
17DIVISION XVII
18PROPERTY ASSESSMENT APPEAL BOARD — SALARIES
19 Sec. 55. 2008 Iowa Acts, chapter 1191, section 14,
20subsection 5, as amended by 2013 Iowa Acts, chapter 123,
21section 63, 2018 Iowa Acts, chapter 1163, section 8, and 2018
22Iowa Acts, chapter 1165, section 81, is amended to read as
23follows:
245. The following are range 5 positions: administrator of
25the division of homeland security and emergency management of
26the department of public defense, state public defender, drug
27policy coordinator, labor commissioner, workers’ compensation
28commissioner, executive director of the college student aid
29commission, director of the department of cultural affairs,
30director of the department of elder affairs, director of the
31law enforcement academy, members of the property assessment
32appeal board, executive director of the department of veterans
33affairs, and administrator of the historical division of the
34department of cultural affairs.
35 Sec. 56. 2008 Iowa Acts, chapter 1191, section 14,
-36-1subsection 6, is amended to read as follows:
26. The following are range 6 positions: director of the
3office of energy independence, superintendent of banking,
4superintendent of credit unions, administrator of the alcoholic
5beverages division of the department of commerce, director of
6the department of inspections and appeals, commandant of the
7Iowa veterans home, commissioner of public safety, commissioner
8of insurance, executive director of the Iowa finance authority,
9director of the department of natural resources, consumer
10advocate, members of the property assessment appeal board, and
11chairperson of the utilities board. The other members of the
12utilities board shall receive an annual salary within a range
13of not less than 90 percent but not more than 95 percent of the
14annual salary of the chairperson of the utilities board.
15 Sec. 57. APPLICABILITY. This division of this Act applies
16to fiscal years beginning on or after July 1, 2022, effective
17with the pay period beginning June 24, 2022, and subsequent pay
18periods.
19EXPLANATION
20The inclusion of this explanation does not constitute agreement with
21the explanation’s substance by the members of the general assembly.
22This bill relates to state and local finances and the duties
23and procedures of the department of revenue by providing for
24electronic filing, communications, and records, modifying
25transfer tax remittances, the assessment of property, the
26collection of debt, and the taxation of pass-through entities,
27reducing inheritance taxes for unknown heirs, and establishing
28salaries.
29DIVISION I — RECORD RETENTION. Currently, the director of
30the department of revenue (DOR) may destroy useless records of
31any taxpayer filed with or kept by the department. The bill
32specifies that the director of revenue (director) shall destroy
33useless records by the end of the calendar year following the
34year in which the records are determined to be useless. The
35bill permits a taxpayer or the DOR to request the director
-37-1retain a useless record under certain circumstances. The
2bill also permits DOR to retain some records if personally
3identifiable information has been removed, or the records are
4related to a rule, statement of law or policy, or a final
5order, decision, or opinion.
6The bill allows DOR to make electronic copies of records or
7use other methods to make such copies.
8The division takes effect January 1, 2025.
9DIVISION II — ELECTRONIC FILING — FIDUCIARIES — BUSINESS
10ENTITIES. The bill requires a fiduciary to file an electronic
11return under any of the following certain circumstances: the
12individual, estate, or trust has gross receipts of $250,000 or
13more; the fiduciary is required to provide 10 or more schedules
14K-1 to the beneficiaries; or the fiduciary reports $25,000 or
15more of Iowa tax credits.
16The bill requires a partnership to file an electronic return
17under any of the following circumstances: the partnership has
18gross receipts of $250,000 or more; the partnership is required
19to provide 10 or more schedules K-1 to the partners; or the
20partnership reports $25,000 or more of Iowa tax credits.
21If a pass-through entity that is required to file a composite
22return is required to file an electronic return under section
23422.14, 422.15, or 422.36, the bill requires the pass-through
24entity to file the composite return of the pass-through entity
25in an electronic format for the same taxable year. A composite
26return generally is a return filed by a pass-through entity
27that reports the state income of all nonresident owners.
28The bill requires a corporation to file an electronic return
29if the corporation has gross receipts of $250,000 or more, or
30the corporation reports $25,000 or more of Iowa tax credits, or
31in the case of an S corporation, the corporation is required to
32issue 10 or more schedules K-1 to the shareholders.
33The bill requires an affiliated group of corporations to
34file an electronic return regardless of the amount of gross
35receipts of the affiliated group or Iowa tax credits claimed.
-38- 1The bill requires a financial institution (bank) to file an
2electronic return under any of the following circumstances:
3the financial institution has gross receipts of $250,000 or
4more; the financial institution reports $25,000 or more of Iowa
5tax credits, or in the case of an S corporation, the financial
6institution is required to issue 10 or more schedules K-1 to
7the shareholders.
8The division applies to tax years ending on or after December
931, 2022, for a partnership, pass-through entity, corporation,
10and financial institution, and applies to tax years ending on
11or after December 31, 2023, for a fiduciary, or for tax years
12ending on or after December 31 of the calendar year in which
13the department implements a system for receiving the electronic
14returns required by the division.
15DIVISION III — ELECTRONIC FILING — CREDIT UNIONS. The
16bill requires a credit union to file a return in an electronic
17format specified by DOR.
18The division applies to tax years ending on or after December
1931, 2024, or for tax years ending on or after December 31 of the
20calendar year in which the department implements a system for
21receiving the electronic returns required by the division.
22DIVISION IV — AUTHORITY TO CHARGE FEES. The bill specifies
23DOR may charge a fee for a copy of a return. The fee may be
24established by rule.
25The bill also specifies that this division shall not be
26construed to prohibit DOR from charging a fee for a copy of
27a return prior to the enactment of the division pursuant to
28another authority of DOR.
29DIVISION V — AUTHORITY TO ACT ON BEHALF OF TAXPAYER. The
30bill strikes and replaces provisions relating to the authority
31to act on behalf of a business entity, and specifies that such
32a person must be designated to act on behalf of the business
33entity in tax matters.
34The bill specifies DOR may authorize a trustee to have
35authority to act on behalf of a taxpayer, if the trustee
-39-1complies with certain conditions requested by DOR including but
2not limited to providing a copy of the trust agreement.
3The bill specifies DOR may authorize a person named as
4general or durable power of attorney to act on behalf of
5a taxpayer if the person is named in a document which is
6currently in force.
7The bill requires a person acting on behalf of a taxpayer
8must certify that the person possesses actual authority to act
9on behalf of the entity in tax matters.
10The bill allows DOR to require any documents or other
11evidence to demonstrate an individual has authority to act on
12behalf of the taxpayer before DOR.
13DIVISION VI — ELECTRONIC COMMUNICATION. Under the
14bill, DOR may permit a person to elect to receive a notice,
15correspondence, or other communication electronically.
16If a person makes an election to receive an electronic
17communication, the posting of the electronic communication
18to the electronic portal of DOR satisfies any requirement of
19mailing or personal service in title X (financial resources),
20Code chapter 272D (debt owed state or local government), or
21Code sections 321.105A (fee for new registration) and 533.329
22(taxation of credit unions).
23The bill allows DOR to send any notice, correspondence, or
24other communication by mail to a person who has elected to
25receive an electronic communication.
26DIVISION VII — INCOME STATEMENTS TO BE PROVIDED TO
27THE DEPARTMENT. The bill updates and amends Code section
28422.16(10)(a) relating to the penalties for willful violations
29of the following: failure to furnish an employee with an
30income statement; furnishing a false or fraudulent income
31statement to an employee; failure to file an income statement
32with DOR; filing a false or fraudulent income statement with
33DOR; failure to file an annual reporting of taxes withheld with
34DOR; and filing a false or fraudulent annual reporting of taxes
35withheld with DOR. Under the bill and in current law, each
-40-1violation is punishable by a $500 civil penalty.
2The bill amends Code section 422.16(10)(b) to specify that a
3person, withholding agent, or other person required to file a
4withholding return shall be subject to the penalties provided
5in Code section 421.27 in addition to the tax or additional tax
6due.
7The bill provides that the director may allow additional
8time for the filing of documents required by section 422.16
9(withholding income tax) in the case of illness, disability,
10absence, or if good cause is shown.
11DIVISION VIII — REMITTANCES OF TRANSFER TAX. Currently,
12the county recorder remits the real estate transfer tax to
13the treasurer of state. The bill changes the remittances
14of the transfer tax by the county recorder and requires the
15remittances of the transfer tax by the county recorder be made
16to the department of revenue.
17DIVISION IX — BOARD OF REVIEW ELIGIBILITY. The bill amends
18Code section 441.32 relating to the removal of a member of a
19board of review by specifying that if a board member is removed
20under that Code section, the board member shall not be eligible
21for appointment to a board of review in this state for six
22years following the date of the removal.
23DIVISION X — EQUALIZATION ADJUSTMENTS — APPEALS. The
24bill amends Code section 441.48 to provide that, in addition
25to the board of supervisors or the city council, a city or
26county attorney or other official of the county or assessing
27jurisdiction may provide written notice of intent to appeal
28an equalization to the department of revenue. The bill also
29requires the written notice of appeal to be provided within
3010 days of the notice provided by the department of revenue.
31Upon receiving a timely notice of intent to appeal, the bill
32requires the department to schedule a hearing on the proposed
33adjustment with the county or assessing jurisdiction and
34specifies the allowable formats for the hearing or written
35presentation of the appeal. The bill specifies that appeals of
-41-1a proposed adjustment are not subject to Code chapter 17A.
2DIVISION XI — BUSINESS PROPERTY TAX CREDIT AND ASSESSMENT
3LIMITATION. Code chapter 426C provides a business property tax
4credit for commercial, industrial, and railway property for
5property taxes due and payable in fiscal years beginning on or
6after July 1, 2014. The business property tax credit is funded
7from an annual standing appropriation of $125 million.
8The bill eliminates the annual appropriation for the
9business property tax credit under Code section 426C.2 for
10fiscal years beginning on or after July 1, 2023, and provides
11that moneys remaining in the business property tax credit fund
12at the end of the fiscal year beginning July 1, 2022, shall be
13transferred by the department of revenue for deposit in the
14general fund of the state. The bill also establishes a future
15repeal date for Code chapter 426C of July 1, 2024.
16Current Code section 441.21 imposes an assessment limitation
17(rollback) on commercial property, industrial property,
18and property valued by the department of revenue under Code
19chapter 434 (railway company property) of 90 percent for
20assessment years beginning on or after January 1, 2014. The
21bill modifies the amount and methodology for calculating the
22assessment limitation for property units, as defined in the
23bill, within those classifications of property. Instead of a
24uniform percentage of value, for valuations established for the
25assessment year beginning January 1, 2022, and each assessment
26year thereafter, the portion of actual value at which each
27property unit of commercial property shall be assessed shall be
28the sum of the following: (1) an amount equal to the product of
29the assessment limitation percentage applicable to residential
30property multiplied by the actual value of the property that
31exceeds $0 but does not exceed $150,000; and (2) an amount
32equal to 90 percent of the actual value of the property
33for that assessment year that exceeds $150,000. The bill
34establishes a similar provision for industrial property and
35provides that the assessed value of railway company property
-42-1shall be determined in the same manner as commercial property.
2The bill also establishes an annual payment to local
3governments based on the modified assessment limitations
4imposed on that portion of the value of commercial and
5industrial properties that does not exceed $150,000. For
6each fiscal year beginning on or after July 1, 2023, there
7is appropriated from the general fund of the state to the
8department of revenue the sum of $125 million to be used for
9such payments. If an amount appropriated for a fiscal year
10is insufficient to make all payments, the director of revenue
11shall prorate the payments to the county treasurers.
12DIVISION XII — WAGE ASSIGNMENT NOTICE. The bill modifies
13Code section 421.17B (administrative wage assignment
14cooperative agreement). Under the bill, the centralized
15debt collection facility (facility) within the department of
16revenue may proceed against an obligor if a 20 days’ notice
17of intent has been sent to the obligor notifying the obligor
18the facility intends to begin a wage assignment action. The
19bill specifies the 20 days’ notice period does not apply if the
20facility determines the collection of past due amounts would
21be in jeopardy. After the 20 days’ notice period has run,
22the bill requires the facility to notify the obligor of the
23initiation of the wage assignment action within two working
24days of sending the notice to the obligor’s employer, and the
25facility may obtain multiple wage assignments, if the obligor
26has multiple employers.
27DIVISION XIII — OUT-OF-STATE RECIPROCAL COLLECTIONS. The
28bill modifies provisions related to out-of-state reciprocal
29debt collections. Currently, the provisions are limited to
30the collection of out-of-state tax debt. The bill expands
31the types of debt the director is able to collect, and allows
32the director to enter into an agreement with a department in
33another state to collect the debts being collected by DOR. The
34bill allows the director to enter into agreements to collect
35the debts of another state through DOR. The bill requires the
-43-1out-of-state debt being collected by DOR to be delinquent and
2not subject to litigation prior to accepting the collection on
3such debt.
4The bill establishes procedures to collect out-of-state debt
5including procedures for challenging the collection of such
6debt. The bill allows DOR to collect a fee from the amount of
7out-of-state debt collected.
8The bill specifies the DOR may release taxpayer information
9that otherwise would be confidential when working with an
10out-of-state department or agency, provided the out-of-state
11department or agency complies with Iowa confidentiality law.
12DIVISION XIV — PASS-THROUGH ENTITY TAXATION. The bill
13changes the term “state partnership representative” to “state
14pass-through representative” numerous times.
15The bill permits a pass-through entity filing a composite
16return that has a nonrefundable income tax credit carryforward
17amount attributable to the composite return following the
18close of the entity’s composite return for the tax year that
19began during the 2021 calendar year to allocate those income
20tax credit carryforward amounts to the pass-through entity’s
21partners, members, beneficiaries, or shareholders in the
22pass-through entity’s tax year that begins during the 2022
23calendar year.
24DIVISION XV — INHERITANCE TAX — UNKNOWN HEIRS. Currently,
25if an heir entitled to an estate interest cannot be found,
26a tax of 5 percent is paid to the state, until the heir is
27found, and at such time the correct amount of inheritance tax
28is recomputed and paid to the state. The bill reduces the
29inheritance tax on an unknown heir on the same percentage basis
30the inheritance tax is being reduced in Code section 450.10.
31The inheritance tax is set to be repealed for decedents dying
32on or after January 1, 2025.
33The division applies retroactively to January 1, 2021.
34DIVISION XVI — NOTICE REQUIREMENTS FOR PUBLICATION OF
35INTEREST RATES. The bill strikes a provision requiring the
-44-1director to publish the rate of interest in a newspaper, and
2substitutes this requirement by allowing for the publication of
3interest rates on the internet site of DOR.
4DIVISION XVII — PROPERTY ASSESSMENT APPEAL BOARD —
5SALARIES. The general assembly periodically establishes salary
6ranges for certain appointed state officers and authorizes a
7person (generally the governor) to establish the salaries of
8those state officers. In 2013, the general assembly amended
9the most recent salary range legislation (2008 Iowa Acts,
10chapter 1191) to add members of the property assessment appeal
11board to salary range 5 ($73,250 to $112,070). The bill moves
12members of the property assessment appeal board to salary range
136 ($84,240 to $128,890) with the pay period beginning June 24,
142022.
-45-jm/jh
2procedures of the department of revenue by providing for
3electronic filing, communications, and records, modifying
4transfer tax remittances, the assessment of property,
5the collection of debt, and the taxation of pass-through
6entities, reducing inheritance taxes for unknown heirs,
7establishing salaries, providing for a fee, making
8appropriations, and providing penalties, and including
9effective date, applicability, and retroactive applicability
10provisions.
11BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2Record retention
3 Section 1. Section 422.68, subsections 3 and 4, Code 2022,
4are amended to read as follows:
53. a. The director may shall destroy useless records and
6returns, reports, and communications records of any taxpayer
7filed with or kept by the department after those returns,
8records, reports, or communications have been in the custody
9of the department for a period of not less than three years or
10such time as the director prescribes by rule. However, after
11the accounts of a person have been examined by the director and
12the amount of tax and penalty due have been finally determined,
13the director may order the destruction of any records
14previously filed by that taxpayer, notwithstanding the fact
15that those records have been in the custody of the department
16for a period less than three years. These records and
17documents shall be destroyed in the manner prescribed by the
18director by the end of the calendar year following the year in
19which the record is determined by the department to be useless.
20b. (1) A taxpayer or the department may request that a
21specific record be retained beyond the useful life of the
22record.
23(2) The director shall have the discretion to approve or
24deny a request made pursuant to subparagraph (1).
25c. Notwithstanding paragraph “a”, the department may retain
26any of the following:
27(1) A record that no longer contains personally
28identifiable information of a specific taxpayer.
29(2) A record described in section 17A.3, subsection 1,
30paragraph “d” or “e”.
31d. The department shall adopt rules pursuant to chapter 17A
32to administer this subsection.
334. The department may make photostat, microfilm,
34electronic, or other electronic or photographic copies of
35records, reports, and other papers either filed by the taxpayer
-1-1or prepared by the department, or make such copies by other
2methods. In addition, the department may create and or use
3any system of recordkeeping reasonably calculated to preserve
4its records for any time period required by law. When these
5photostat, electronic, microfilm, or other copies have been a
6copy is made, the department may destroy the original records
7 record which are the served as the basis for the copies copy
8 in any manner prescribed by the director. These photostat,
9electronic, microfilm, or other types of copies, when no longer
10of use, may be destroyed A copy shall be subject to destruction
11 as provided in subsection 3. These photostat, microfilm,
12electronic, or other records A copy shall be admissible in
13evidence when duly certified and authenticated by the officer
14having custody and control of them the record.
15 Sec. 2. EFFECTIVE DATE. This division of this Act takes
16effect January 1, 2025.
17DIVISION II
18ELECTRONIC FILING — FIDUCIARIES — BUSINESS ENTITIES
19 Sec. 3. Section 422.14, subsection 1, Code 2022, is amended
20to read as follows:
211. a. A fiduciary subject to taxation under this
22subchapter, as provided in section 422.6, shall make a return,
23signed in accordance with forms and rules prescribed by the
24director, for the individual, estate, or trust for whom or for
25which the fiduciary acts, if the taxable income thereof amounts
26to six hundred dollars or more. A nonresident fiduciary shall
27file a copy of the federal income tax return for the current
28tax year with the return required by this section.
29b. (1) A fiduciary required to file a return under
30paragraph “a”, shall file the return in an electronic format as
31specified by the department in a tax year in which any of the
32following circumstances apply:
33(a) The individual, estate, or trust for whom or which the
34fiduciary acts has two hundred fifty thousand dollars or more
35in gross receipts, as defined by rule by the department.
-2- 1(b) The fiduciary is required to provide ten or more
2schedules K-1 to the beneficiaries.
3(c) The fiduciary reports twenty-five thousand dollars or
4more of Iowa tax credits on the return.
5(2) This paragraph “b” applies to any form or schedule
6supporting a return required to be electronically filed or
7any amended return if the amended return meets any of the
8circumstances requiring electronic filing in this paragraph.
9c. (1) Notwithstanding paragraph “b”, the department may
10provide an exception to the electronic filing requirement.
11(2) A return subject to the electronic filing requirement in
12paragraph “b” that is filed in a manner other than an electronic
13format specified by the department shall not be considered
14a valid return unless the department provides an exception
15pursuant to this paragraph.
16d. The department shall adopt rules to implement this
17subsection.
18 Sec. 4. Section 422.15, subsection 2, Code 2022, is amended
19to read as follows:
202. a. Every partnership, including limited partnerships,
21doing business in this state, or deriving income from sources
22within this state as defined in section 422.32, subsection 1,
23paragraph “g”, shall make a return, stating specifically the
24net income and capital gains or losses reported on the federal
25partnership return, the names and addresses of the partners,
26and their respective shares in said amounts.
27b. (1) A partnership required to file a return under
28paragraph “a”, shall file the return in an electronic format
29specified by the department in a tax year in which any of the
30following circumstances apply:
31(a) The partnership has two hundred fifty thousand dollars
32or more in total gross receipts, as defined by rule by the
33department.
34(b) The partnership is required to provide ten or more Iowa
35schedules K-1 to the partners.
-3- 1(c) The partnership reports twenty-five thousand dollars or
2more of Iowa tax credits on the return.
3(2) This paragraph “b” applies to any form or schedule
4supporting a return required to be electronically filed or
5any amended return if the amended return meets any of the
6circumstances requiring electronic filing in this paragraph.
7c. (1) Notwithstanding paragraph “b”, the department may
8provide an exception to the electronic filing requirement.
9(2) A return subject to the electronic filing requirement in
10paragraph “b” that is filed in a manner other than an electronic
11format specified by the department shall not be considered
12a valid return unless the department provides an exception
13pursuant to this paragraph.
14d. The department shall adopt rules to implement this
15subsection.
16 Sec. 5. Section 422.16B, subsection 8, Code 2022, is amended
17to read as follows:
188. a. For the efficient administration of this chapter, the
19director may require or provide for the composite return on the
20same form as or combined with a pass-through entity’s annual
21return required under section 422.14, 422.15, or 422.36, but in
22such case the composite return shall be considered a separate
23return for purposes of this chapter and section 421.27.
24b. (1) If a pass-through entity is required to file its
25annual return under section 422.14, 422.15, or 422.36 in an
26electronic format, the pass-through entity shall file its
27composite return for the same taxable year in an electronic
28format specified by the department.
29(2) This paragraph applies to any form or schedule
30supporting a return required to be electronically filed or
31any amended return if the amended return meets any of the
32circumstances requiring electronic filing in this paragraph.
33c. A return subject to the electronic filing requirement in
34paragraph “b” that is filed in a manner other than an electronic
35format specified by the department shall not be considered a
-4-1valid return.
2d. The department shall adopt rules to implement this
3subsection.
4 Sec. 6. Section 422.36, Code 2022, is amended by adding the
5following new subsection:
6 NEW SUBSECTION. 8. a. A corporation shall file a return
7required under this section in an electronic format specified
8by the department for any tax year if any of the following
9circumstances apply:
10(1) The corporation has gross receipts of two hundred fifty
11thousand dollars or more, as defined by rule by the department.
12(2) The corporation reports twenty-five thousand dollars or
13more of Iowa tax credits on the return.
14b. A corporation described in subsection 5 shall file all
15returns required under this section in an electronic format
16specified by the department for any tax year if any of the
17following circumstances apply:
18(1) The corporation has gross receipts of two hundred fifty
19thousand dollars or more, as defined by rule by the department.
20(2) The corporation is required to provide ten or more Iowa
21schedules K-1 to shareholders.
22(3) The corporation reports twenty-five thousand dollars or
23more of Iowa tax credits on the return.
24c. This subsection applies to any form or schedule
25supporting a return required to be electronically filed or
26any amended return if the amended return meets any of the
27circumstances requiring electronic filing in this subsection.
28d. (1) Notwithstanding paragraphs “a” and “b”, the
29department may provide an exception to the requirement to file
30a return in an electronic format.
31(2) A return subject to the electronic filing requirement
32in this subsection that is filed in a manner other than in an
33electronic format specified by the department shall not be
34considered a valid return unless the department provides an
35exception pursuant to this paragraph.
-5- 1e. The department shall adopt rules to implement this
2subsection.
3 Sec. 7. Section 422.37, Code 2022, is amended by adding the
4following new subsection:
5 NEW SUBSECTION. 8. a. (1) The affiliated group shall
6file a return under this section for each taxable year in an
7electronic format specified by the department, regardless of
8the total gross receipts of or amount of credits reported by
9the affiliated group.
10(2) For purposes of the electronic filing requirement, a
11return of an affiliated group includes any form or schedule
12supporting the return or any amended return of the affiliated
13group.
14(3) The financial institution is a corporation subject
15to the electronic filing requirement under section 422.36,
16subsection 8, paragraph “b”.
17b. (1) Notwithstanding paragraph “a”, the department may
18provide an exception to file a return in an electronic format.
19(2) A return subject to the electronic filing requirement
20in paragraph “a” that is filed in a manner other than in an
21electronic format specified by the department shall not be
22considered a valid return unless the department provides an
23exception pursuant to this paragraph.
24c. The department shall adopt rules to implement this
25subsection.
26 Sec. 8. Section 422.62, Code 2022, is amended to read as
27follows:
28422.62 Due and delinquent dates.
291. The franchise tax is due and payable on the first
30day following the end of the taxable year of each financial
31institution, and is delinquent after the last day of the fourth
32month following the due date or forty-five days after the due
33date of the federal tax return, excluding extensions of time
34to file, whichever is the later. Every financial institution
35shall file a return as prescribed by the director on or before
-6-1the delinquency date.
22. a. (1) A financial institution shall file a return
3required under this section in an electronic format specified
4by the department for any tax year if any of the following
5circumstances apply:
6(a) The financial institution has two hundred fifty
7thousand dollars or more in gross receipts, as defined by rule
8by the department.
9(b) The financial institution reports twenty-five thousand
10dollars or more of Iowa tax credits on the return.
11(c) The financial institution is a corporation subject
12to the electronic filing requirement under section 422.36,
13subsection 8, paragraph “b”.
14(2) This paragraph “a” applies to any form or schedule
15supporting a return required to be electronically filed or
16any amended return if the amended return meets any of the
17circumstances requiring electronic filing in this paragraph.
18b. (1) Notwithstanding paragraph “a”, the department may
19provide an exception to the requirement to file a return in an
20electronic format.
21(2) A return subject to the electronic filing requirement
22in paragraph “a” that is filed in a manner other than in an
23electronic format specified by the department shall not be
24considered a valid return unless the department provides an
25exception pursuant to this paragraph.
26c. The department shall adopt rules to implement this
27subsection.
28 Sec. 9. APPLICABILITY.
291. Except as provided in subsection 2, this division of this
30Act applies to tax years ending on or after December 31, 2022,
31or for tax years ending on or after December 31 of the calendar
32year in which the department implements a system for receiving
33the electronic returns required by this division of this Act,
34whichever is later.
352. The section of this division of this Act amending section
-7-1422.14, subsection 1, applies to tax years ending on or after
2December 31, 2023, or for tax years ending on or after December
331 of the calendar year in which the department implements a
4system for receiving the electronic fiduciary returns required
5by this division of this Act, whichever is later.
63. The department of revenue shall notify the Code editor by
7December 1 of the calendar year the department has implemented
8a system for receiving the electronic returns or electronic
9fiduciary returns required by this division of this Act.
10DIVISION III
11ELECTRONIC FILING — CREDIT UNIONS
12 Sec. 10. Section 533.329, subsection 3, Code 2022, is
13amended to read as follows:
143. a. Returns shall be in the form the director of
15revenue prescribes, and shall be filed with the department of
16revenue on or before the last day of the fourth month after
17the expiration of the tax year. The moneys and credits tax is
18due and payable on the last day of the fourth month after the
19expiration of the tax year.
20b. A credit union shall file a return required under this
21section in an electronic format specified by the department for
22each tax year.
23c. (1) Notwithstanding paragraph “b”, the department may
24provide an exception to file a return in an electronic format.
25(2) A return subject to the electronic filing requirement
26in paragraph “b” that is filed in a manner other than in an
27electronic format specified by the department shall not be
28considered a valid return unless the department provides an
29exception pursuant to this paragraph.
30d. The department shall adopt rules to implement this
31subsection.
32 Sec. 11. APPLICABILITY.
331. This division of this Act applies to tax years ending
34on or after December 31, 2024, or for tax years ending on or
35after December 31 of the calendar year in which the department
-8-1implements a system for receiving the electronic returns
2required by this division of this Act, whichever is later.
32. The department of revenue shall notify the Code editor by
4December 1 of the calendar year the department has implemented
5a system for receiving electronic returns required by this
6division of this Act.
7DIVISION IV
8AUTHORITY TO CHARGE FEES
9 Sec. 12. Section 421.17, Code 2022, is amended by adding the
10following new subsection:
11 NEW SUBSECTION. 37. To establish a fee, by rule, and charge
12a person for a copy of a return. The fee shall be retained by
13the department of revenue.
14 Sec. 13. LEGISLATIVE INTENT. This division of this Act
15shall not be construed to prohibit the department of revenue
16from charging a fee for a copy of a return prior to the
17enactment of this division of this Act pursuant to another
18authority of the department.
19It is the intent of the general assembly that this division
20of this Act is a conforming amendment consistent with current
21state law, and the amendment does not change the application of
22the current law but instead reflects current law both before
23and after enactment of this division of this Act.
24DIVISION V
25AUTHORITY TO ACT ON BEHALF OF TAXPAYER
26 Sec. 14. Section 421.59, subsection 2, unnumbered paragraph
271, Code 2022, is amended to read as follows:
28Unless otherwise prohibited by law, the department may
29authorize the following persons to act and receive information
30on behalf of and exercise all of the rights of a taxpayer,
31regardless of whether a power of attorney has been filed
32pursuant to subsection 1:
33 Sec. 15. Section 421.59, subsection 2, paragraph d, Code
342022, is amended by striking the paragraph and inserting in
35lieu thereof the following:
-9- 1d. An individual holding the following title or position
2within a corporation, association, partnership, or other
3business entity:
4(1) An officer or employee of the corporation or association
5who is authorized to act on behalf of the corporation or
6association in tax matters.
7(2) A designated partner or employee of the partnership
8who is authorized to act on behalf of the partnership in tax
9matters.
10(3) A person authorized to act on behalf of the limited
11liability company in tax matters pursuant to a valid statement
12of authority or employee of the company who is authorized to
13act on behalf of the company in tax matters.
14 Sec. 16. Section 421.59, subsection 2, Code 2022, is amended
15by adding the following new paragraphs:
16 NEW PARAGRAPH. i. A trustee.
17(1) Upon request, the trustee shall submit to the department
18a certification of the trust, copy of the trust documents, or
19court order appointing the trustee.
20(2) The department has standing to petition the court that
21appointed the trustee to verify the appointment or to determine
22the scope of the appointment.
23 NEW PARAGRAPH. j. A person named as general or durable
24power of attorney on a document which is currently in force
25and such document has not been prescribed by the department of
26revenue.
27 Sec. 17. Section 421.59, Code 2022, is amended by adding the
28following new subsections:
29 NEW SUBSECTION. 3A. An individual acting on behalf of
30a taxpayer pursuant to subsection 2 must certify that the
31individual possesses actual authority to act on behalf of the
32taxpayer in tax matters.
33 NEW SUBSECTION. 3B. In addition to documents required under
34subsection 2, the department shall require any documents or
35other evidence to demonstrate an individual has authority to
-10-1act on behalf of the taxpayer before the department.
2DIVISION VI
3ELECTRONIC COMMUNICATION
4 Sec. 18. Section 421.60, subsection 11, Code 2022, is
5amended by striking the subsection and inserting in lieu
6thereof the following:
711. Electronic communication.
8a. As used in this subsection, “electronic communication”
9means a notice, correspondence, or other communication provided
10electronically.
11b. The department of revenue, by rule, may permit a person
12to elect to receive an electronic communication from the
13department.
14c. (1) Notwithstanding any provision of law to the
15contrary, when an electronic communication is posted to the
16department’s electronic portal for a person who has made such
17an election, the posting of the electronic communication shall
18satisfy any requirement of mailing or personal service in this
19title, chapter 272D, or sections 321.105A and 533.329.
20(2) The department may send any notice, correspondence,
21or other communication by mail to a person who has elected to
22receive an electronic communication from the department.
23(3) If the department sends a notice, correspondence,
24or other communication by both mail and by electronic
25communication, service occurs upon the earlier of when the
26communication is posted to the department’s electronic portal
27or mailed.
28d. The director of revenue may adopt rules and establish
29procedures under this subsection.
30DIVISION VII
31INCOME STATEMENTS TO BE PROVIDED TO THE DEPARTMENT
32 Sec. 19. Section 422.16, subsection 2, paragraphs b and c,
33Code 2022, are amended to read as follows:
34b. Every withholding agent on or before the end fifteenth
35day of the second month following the close of the calendar
-11-1year in which the withholding occurs shall make an annual
2reporting of taxes withheld and other information prescribed
3by the director and send to the department copies of wage and
4tax statements with the return income statements required
5by subsection 7. At the discretion of the director, the
6withholding agent shall not be required to send wage statements
7and tax income statements with the annual reporting return
8form report if the information is available from the internal
9revenue service or other state or federal agencies.
10c. If the director has reason to believe that the collection
11of the tax provided for in subsections 1 and 12 is in jeopardy,
12the director may require the employer or withholding agent to
13make the report file a return as required in subsection 2,
14paragraph “a”, and pay the tax at any time, in accordance with
15section 422.30. The director may authorize incorporated banks,
16trust companies, or other depositories authorized by law which
17are depositories or financial agents of the United States or of
18this state, to receive any tax imposed under this chapter, in
19the manner, at the times, and under the conditions the director
20prescribes. The director shall also prescribe the manner,
21times, and conditions under which the receipt of the tax by
22those depositories is to be treated as payment of the tax to
23the department.
24 Sec. 20. Section 422.16, subsection 7, Code 2022, is amended
25to read as follows:
267. a. Every withholding agent required to deduct and
27withhold a tax under subsections 1 and 12 of this section
28shall furnish to such employee, nonresident, or other person
29in respect of the remuneration income paid by such employer
30or withholding agent to such employee, nonresident, or other
31person during the calendar year, on or before January 31 of
32the succeeding year, or, in the case of employees, if the
33employee’s employment is terminated before the close of such
34calendar year, within thirty days from the day on which the
35last payment of wages or other taxable income is made, if
-12-1requested by such employee, but not later than January 31 of
2the following year, a written an income statement showing the
3following:
4(1) The name and address of such employer or withholding
5agent, and the taxpayer identification number of such employer
6or withholding agent.
7(2) The name of the employee, nonresident, or other person
8and that person’s federal social security account taxpayer
9identification number, together with the last known address of
10such employee, nonresident, or other person to whom wages have
11 or other taxable income has been paid during such period.
12(3) The gross amount of wages, or other taxable income, paid
13to the employee, nonresident, or other person.
14(4) The total amount deducted and withheld as tax under the
15provisions of subsections 1 and 12 of this section.
16(5) The total amount of federal income tax withheld.
17b. The income statements required to be furnished by this
18subsection in respect of any wages or other taxable Iowa income
19or any additional information required to be displayed on the
20income statement shall be in such form or forms as the director
21may, by regulation rule, prescribe.
22 Sec. 21. Section 422.16, subsection 10, paragraphs a and b,
23Code 2022, are amended to read as follows:
24a. An In addition to any other penalty provided by law,
25an employer or withholding agent required under this chapter
26 to furnish a statement required by this chapter who willfully
27furnishes a false or fraudulent statement, or who willfully
28fails to furnish the statement is, for each failure, subject
29to a civil penalty of five hundred dollars, the penalty to be
30in addition to any criminal penalty otherwise provided by the
31Code. to furnish or file an income statement required by this
32statement is subject to a civil penalty of five hundred dollars
33for each occurrence of the following:
34(1) Willful failure to furnish an employee, nonresident, or
35other person with an income statement.
-13- 1(2) Willfully furnishing an employee, nonresident, or other
2person with a false or fraudulent income statement.
3(3) Willful failure to file an income statement with the
4department.
5(4) Willfully filing a false or fraudulent income statement
6with the department.
7b. In addition to the tax or additional tax, any A person,
8 or withholding agent shall pay a, or other person required by
9this section to file a return is subject to the penalty as
10provided in section 421.27. Any penalty assessed under section
11421.27 shall be in addition to the tax or additional tax due.
12 The taxpayer shall also pay interest on the tax or additional
13tax at the rate in effect under section 421.7, for each month
14counting each fraction of a month as an entire month, computed
15from the date the semimonthly, monthly, or quarterly deposit
16form was required to be filed. The penalty and interest become
17a part of the tax due from the withholding agent.
18 Sec. 22. Section 422.16, Code 2022, is amended by adding the
19following new subsection:
20 NEW SUBSECTION. 15. The director may allow additional
21time for filing documents required under this section with the
22department in the case of illness, disability, absence, or if
23good cause is shown.
24DIVISION VIII
25REMITTANCES OF TRANSFER TAX
26 Sec. 23. Section 428A.8, subsection 1, paragraphs a and c,
27Code 2022, are amended to read as follows:
28a. On or before the tenth day of each month the county
29recorder shall determine and pay remit to the treasurer of
30state department of revenue eighty-two and three-fourths
31percent of the receipts from the real estate transfer tax
32collected during the preceding month and the treasurer of state
33 department of revenue shall deposit and transfer the receipts
34as provided in subsection 2.
35c. Any tax or additional tax found to be due shall be
-14-1collected by the county recorder. If the county recorder
2is unable to collect the tax, the director of revenue shall
3collect the tax in the same manner as taxes are collected in
4chapter 422, subchapter III. If collected by the director
5of revenue, the director shall pay remit to the county its
6proportionate share of the tax. Section 422.25, subsections
71, 2, 3, and 4, and sections 422.26, 422.28 through 422.30,
8and 422.73, consistent with this chapter, apply with respect
9to the collection of any tax or additional tax found to be due,
10in the same manner and with the same effect as if the deed,
11instrument, or writing were an income tax return within the
12meaning of those statutes.
13 Sec. 24. Section 428A.8, subsection 2, unnumbered paragraph
141, Code 2022, is amended to read as follows:
15The treasurer of state department of revenue shall deposit
16or transfer the receipts paid remitted to the treasurer of
17state department of revenue pursuant to subsection 1 to either
18the general fund of the state, the housing trust fund created
19in section 16.181, or the shelter assistance fund created in
20section 16.41 as follows:
21 Sec. 25. Section 428A.9, Code 2022, is amended to read as
22follows:
23428A.9 Refund of tax.
24To receive a refund from the state the taxpayer shall
25petition the state appeal board for a refund of the amount of
26overpayment of the tax paid remitted to the treasurer of state
27 department of revenue. To receive a refund from the county
28the taxpayer shall petition the board of supervisors for a
29refund of the remaining portion of the overpayment paid to that
30county.
31DIVISION IX
32BOARD OF REVIEW ELIGIBILITY
33 Sec. 26. Section 441.32, Code 2022, is amended by adding the
34following new subsection:
35 NEW SUBSECTION. 3. If a board member is removed under this
-15-1section, the board member shall not be eligible for appointment
2to a board of review in this state for six years following the
3date of the removal.
4DIVISION X
5EQUALIZATION ADJUSTMENTS — appeals
6 Sec. 27. Section 441.48, Code 2022, is amended to read as
7follows:
8441.48 Notice of adjustment — protest appeal — final
9action.
101. Before the department of revenue shall adjust the
11valuation of any class of property any such percentage, the
12department shall first serve ten days’ notice by mail, on the
13county auditor of the county whose valuation is proposed to be
14adjusted.
152. If the county or assessing jurisdiction intends
16to protest appeal the proposed adjustment, the board of
17supervisors or city council, city or county attorney, or
18other official of the county or assessing jurisdiction, as
19applicable, shall provide the department with written notice of
20intent to protest prior to expiration of the ten days’ notice
21 appeal within ten days of the notice provided by the department
22of revenue under subsection 1.
233. After expiration of the ten days’ notice, the county
24or assessing jurisdiction may appear by its city council or
25board of supervisors, city or county attorney, or city or
26county officials, and make written or oral protest against such
27proposed adjustment. Upon receiving a timely notice of intent
28to appeal under subsection 2, the department shall schedule a
29hearing on the proposed adjustment with the county or assessing
30jurisdiction. A county or assessing jurisdiction may submit
31an oral presentation at the hearing supported by written
32documentation or may submit a written presentation in lieu
33of making an oral presentation at a hearing. The county or
34assessing jurisdiction shall submit all written documentation
35to the department prior to the date of the hearing or, if the
-16-1county or assessing jurisdiction elects a written presentation,
2not later than the date the written presentation is submitted.
34. The protest appeal shall consist simply of a statement
4of the error, or errors, complained of with such facts and
5documentation as may lead to their correction of such errors.
65. Appeals of the proposed adjustment under this section
7are not subject to Code chapter 17A.After written protest is
8received, or an oral protest is heard the hearing is held or
9the written presentation is submitted, the final action may be
10taken in reference to the proposed adjustment.
11DIVISION XI
12BUSINESS PROPERTY TAX CREDIT AND ASSESSMENT LIMITATIONS
13 Sec. 28. Section 2.48, subsection 3, paragraph f,
14subparagraph (5), Code 2022, is amended by striking the
15subparagraph.
16 Sec. 29. Section 331.512, subsection 5, Code 2022, is
17amended by striking the subsection.
18 Sec. 30. Section 331.559, subsection 15, Code 2022, is
19amended by striking the subsection.
20 Sec. 31. Section 357H.9, subsection 1, paragraph d,
21subparagraph (2), Code 2022, is amended to read as follows:
22(2) The difference between the actual value of the property
23as determined by the assessor each year and the percentage
24of adjustment certified for that year by the director of
25revenue on or before November 1 assessed value of the property
26following application of the assessment limitations pursuant to
27section 441.21, subsection 9, multiplied by the actual value of
28the property as determined by the assessor, shall be subtracted
29from the actual value of the property as determined pursuant to
30section 403.19, subsection 1.
31 Sec. 32. Section 357H.9, subsection 1, paragraph f,
32subparagraph (1), Code 2022, is amended to read as follows:
33(1) “Base year taxable value” means the actual value of
34the property as determined in section 403.19, subsection 1,
35multiplied by the percentage of adjustment certified for the
-17-1assessment year specified in section 403.19, subsection 1,
2by the director of revenue on or before November 1 following
3application of the assessment limitations pursuant to section
4441.21, subsection 9.
5 Sec. 33. Section 403.20, Code 2022, is amended to read as
6follows:
7403.20 Percentage of adjustment considered in value
8assessment.
9In determining the assessed value of property within an
10urban renewal area which is subject to a division of tax
11revenues pursuant to section 403.19, the difference between the
12actual value of the property as determined by the assessor each
13year and the percentage of adjustment certified for that year
14by the director of revenue on or before November 1 pursuant
15to section 441.21, subsection 9, multiplied by the actual
16value of the property as determined by the assessor following
17application of the assessment limitations under section 441.21,
18subsection 9, shall be subtracted from the actual value of the
19property as determined pursuant to section 403.19, subsection
201. If the assessed value of the property as determined
21pursuant to section 403.19, subsection 1, is reduced to zero,
22the additional valuation reduction shall be subtracted from the
23actual value of the property as determined by the assessor.
24 Sec. 34. Section 426C.2, Code 2022, is amended to read as
25follows:
26426C.2 Business property tax credit fund — appropriation.
271. A business property tax credit fund is created in the
28state treasury under the authority of the department. For the
29fiscal year beginning July 1, 2014, there is appropriated from
30the general fund of the state to the department to be credited
31to the fund, the sum of fifty million dollars to be used for
32business property tax credits authorized in this chapter. For
33the fiscal year beginning July 1, 2015, there is appropriated
34from the general fund of the state to the department to be
35credited to the fund, the sum of one hundred million dollars
-18-1to be used for business property tax credits authorized in
2this chapter. For the fiscal year beginning July 1, 2016, and
3each fiscal year thereafter beginning before July 1, 2023,
4there is appropriated from the general fund of the state to the
5department to be credited to the fund, the sum of one hundred
6twenty-five million dollars to be used for business property
7tax credits authorized in this chapter.
82. Notwithstanding section 12C.7, subsection 2, interest or
9earnings on moneys deposited in the fund shall be credited to
10the fund. Moneys in the fund are not subject to the provisions
11of section 8.33 and shall not be transferred, used, obligated,
12appropriated, or otherwise encumbered except as provided in
13this chapter. However, moneys remaining in the fund at the end
14of the fiscal year beginning July 1, 2022, shall be transferred
15by the department for deposit in the general fund of the state.
16 Sec. 35. NEW SECTION. 426C.10 Future repeal.
17This chapter is repealed July 1, 2024.
18 Sec. 36. Section 441.21, subsection 5, Code 2022, is amended
19to read as follows:
205. a. For valuations established as of January 1, 1979,
21property valued by the department of revenue pursuant to
22chapters 428, 433, 437, and 438 shall be considered as one
23class of property and shall be assessed as a percentage of
24its actual value. The percentage shall be determined by the
25director of revenue in accordance with the provisions of this
26section. For valuations established as of January 1, 1979, the
27percentage shall be the quotient of the dividend and divisor
28as defined in this section. The dividend shall be the total
29actual valuation established for 1978 by the department of
30revenue, plus ten percent of the amount so determined. The
31divisor for property valued by the department of revenue
32pursuant to chapters 428, 433, 437, and 438 shall be the
33valuation established for 1978, plus the amount of value added
34to the total actual value by the revaluation of the property
35by the department of revenue as of January 1, 1979. For
-19-1valuations established as of January 1, 1980, property valued
2by the department of revenue pursuant to chapters 428, 433,
3437, and 438 shall be assessed at a percentage of its actual
4value. The percentage shall be determined by the director of
5revenue in accordance with the provisions of this section. For
6valuations established as of January 1, 1980, the percentage
7shall be the quotient of the dividend and divisor as defined in
8this section. The dividend shall be the total actual valuation
9established for 1979 by the department of revenue, plus eight
10percent of the amount so determined. The divisor for property
11valued by the department of revenue pursuant to chapters 428,
12433, 437, and 438 shall be the valuation established for 1979,
13plus the amount of value added to the total actual value by the
14revaluation of the property by the department of revenue as of
15January 1, 1980. For valuations established as of January 1,
161981, and each year thereafter, the percentage of actual value
17at which property valued by the department of revenue pursuant
18to chapters 428, 433, 437, and 438 shall be assessed shall be
19calculated in accordance with the methods provided herein,
20except that any references to ten percent in this subsection
21shall be eight percent. For valuations established on or after
22January 1, 2013, property valued by the department of revenue
23pursuant to chapter 434 shall be assessed at a percentage
24 portion of its actual value equal to the percentage of actual
25value determined in the same manner at which property assessed
26as commercial property is assessed under paragraph “b” for the
27same assessment year.
28b. For valuations established on or after January 1, 2013,
29commercial property, excluding properties referred to in
30section 427A.1, subsection 9, shall be assessed at a percentage
31 portion of its actual value, as determined in this paragraph
32“b”.
33(1) For valuations established for the assessment year
34beginning January 1, 2013, the percentage of actual value
35as equalized by the department of revenue as provided in
-20-1section 441.49 at which commercial property shall be assessed
2shall be ninety-five percent. For valuations established
3for the assessment year beginning January 1, 2014, and each
4assessment year thereafter beginning before January 1, 2022,
5the percentage of actual value as equalized by the department
6of revenue as provided in section 441.49 at which commercial
7property shall be assessed shall be ninety percent.
8(2) For valuations established for the assessment year
9beginning January 1, 2022, and each assessment year thereafter,
10the portion of actual value at which each property unit of
11commercial property shall be assessed shall be the sum of the
12following:
13(a) An amount equal to the product of the assessment
14limitation percentage applicable to residential property under
15subsection 4 for that assessment year multiplied by the actual
16value of the property that exceeds zero dollars but does not
17exceed one hundred fifty thousand dollars.
18(b) An amount equal to ninety percent of the actual value of
19the property for that assessment year that exceeds one hundred
20fifty thousand dollars.
21c. For valuations established on or after January 1, 2013,
22industrial property, excluding properties referred to in
23section 427A.1, subsection 9, shall be assessed at a percentage
24 portion of its actual value, as determined in this paragraph
25“c”.
26(1) For valuations established for the assessment year
27beginning January 1, 2013, the percentage of actual value
28as equalized by the department of revenue as provided in
29section 441.49 at which industrial property shall be assessed
30shall be ninety-five percent. For valuations established
31for the assessment year beginning January 1, 2014, and each
32assessment year thereafter beginning before January 1, 2022,
33the percentage of actual value as equalized by the department
34of revenue as provided in section 441.49 at which industrial
35property shall be assessed shall be ninety percent.
-21- 1(2) For valuations established for the assessment year
2beginning January 1, 2022, and each assessment year thereafter,
3the portion of actual value at which each property unit of
4industrial property shall be assessed shall be the sum of the
5following:
6(a) An amount equal to the product of the assessment
7limitation percentage applicable to residential property under
8subsection 4 for that assessment year multiplied by the actual
9value of the property that exceeds zero dollars but does not
10exceed one hundred fifty thousand dollars.
11(b) An amount equal to ninety percent of the actual value of
12the property for that assessment year that exceeds one hundred
13fifty thousand dollars.
14d. For valuations established for the assessment year
15beginning January 1, 2019, and each assessment year thereafter,
16the percentages or portions of actual value at which property
17is assessed, as determined under this subsection, shall not be
18applied to the value of wind energy conversion property valued
19under section 427B.26 the construction of which is approved by
20the Iowa utilities board on or after July 1, 2018.
21e. (1) For each fiscal year beginning on or after July 1,
222023, there is appropriated from the general fund of the state
23to the department of revenue the sum of one hundred twenty-five
24million dollars to be used for payments under this paragraph
25calculated as a result of the assessment limitations imposed
26under paragraph “b”, subparagraph (2), subparagraph division
27(a), and paragraph “c”, subparagraph (2), subparagraph division
28(a).
29(2) For fiscal years beginning on or after July 1, 2023,
30each county treasurer shall be paid by the department of
31revenue an amount calculated under subparagraph (4). If an
32amount appropriated for the fiscal year is insufficient to make
33all payments as calculated under subparagraph (4), the director
34of revenue shall prorate the payments to the county treasurers
35and shall notify the county auditors of the pro rata percentage
-22-1on or before September 30.
2(3) On or before July 1 of each fiscal year, the assessor
3shall report to the county auditor that portion of the total
4actual value of all commercial property and industrial property
5in the county that is subject to the assessment limitations
6imposed under paragraph “b”, subparagraph (2), subparagraph
7division (a), and paragraph “c”, subparagraph (2), subparagraph
8division (a), for the assessment year used to calculate the
9taxes due and payable in that fiscal year.
10(4) On or before September 1 of each fiscal year, the county
11auditor shall prepare a statement, based on the report received
12in subparagraph (3) and information transmitted to the county
13auditor under chapter 434, listing for each taxing district in
14the county:
15(a) The product of the portion of the total actual value
16of all commercial property, industrial property, and property
17valued by the department under chapter 434 in the county
18that is subject to the assessment limitations imposed under
19paragraph “b”, subparagraph (2), subparagraph division (a), and
20paragraph “c”, subparagraph (2), subparagraph division (a), for
21the applicable assessment year used to calculate taxes which
22are due and payable in the applicable fiscal year multiplied
23by the difference, stated as a percentage, between ninety
24percent and the assessment limitation percentage applicable
25to residential property under subsection 4 for the applicable
26assessment year.
27(b) The tax levy rate per one thousand dollars of assessed
28value for each taxing district for the applicable fiscal year.
29(c) The amount of the payment for each county is equal to
30the amount determined pursuant to subparagraph division (a),
31multiplied by the tax rate specified in subparagraph division
32(b), and then divided by one thousand dollars.
33(5) The county auditor shall certify and forward one copy of
34the statement described in subparagraph (4) to the department
35of revenue not later than September 1 of each fiscal year.
-23- 1(6) The amounts determined under this paragraph shall
2be paid by the department to the county treasurers in equal
3installments in September and March of each year. The county
4treasurer shall apportion the payments among the eligible
5taxing districts in the county and the amounts received by each
6taxing authority shall be treated the same as property taxes
7paid.
8f. For the purposes of this subsection, unless the context
9otherwise requires:
10(1) “Contiguous parcels” means any of the following:
11(a) Parcels that share a common boundary.
12(b) Parcels within the same building or structure
13regardless of whether the parcels share a common boundary.
14(c) Permanent improvements to the land that are situated
15on one or more parcels of land that are assessed and taxed
16separately from the permanent improvements if the parcels of
17land upon which the permanent improvements are situated share
18a common boundary.
19(2) “Parcel” means the same as defined in section 445.1.
20“Parcel” also means that portion of a parcel assigned a
21classification of commercial property or industrial property
22pursuant to section 441.21, subsection 14, paragraph “b”.
23(3) “Property unit” means a parcel or contiguous parcels
24all of which are located within the same county, with the same
25property tax classification, are owned by the same person, and
26are operated by that person for a common use and purpose.
27 Sec. 37. Section 441.21, subsections 9 and 10, Code 2022,
28are amended to read as follows:
299. Not later than November 1, 1979, and November 1 of
30each subsequent year, the director shall certify to the
31county auditor of each county the percentages of actual
32value at which residential property, agricultural property,
33commercial property, industrial property, property valued by
34the department of revenue pursuant to chapter 434, and property
35valued by the department of revenue pursuant to chapters 428,
-24-1433, 437, and 438 in each assessing jurisdiction in the county
2shall be assessed for taxation, including for assessment years
3beginning on or after January 1, 2022, the percentages used to
4apply the assessment limitations under subsection 5, paragraphs
5“b” and “c”. The county auditor shall proceed to determine
6the assessed values of agricultural property, residential
7property, commercial property, industrial property, property
8valued by the department of revenue pursuant to chapter 434,
9and property valued by the department of revenue pursuant to
10chapters 428, 433, 437, and 438 by applying such percentages
11to the current actual value of such property, as reported to
12the county auditor by the assessor, and the assessed values so
13determined shall be the taxable values of such properties upon
14which the levy shall be made.
1510. The percentage percentages of actual value computed
16by the department of revenue for agricultural property,
17residential property, commercial property, industrial property,
18property valued by the department of revenue pursuant to
19chapter 434, and property valued by the department of revenue
20pursuant to chapters 428, 433, 437, and 438, including for
21assessment years beginning on or after January 1, 2022, the
22percentages used to apply the assessment limitations under
23subsection 5, paragraphs “b” and “c”, and used to determine
24assessed values of those classes of property does do not
25constitute a rule as defined in section 17A.2, subsection 11.
26 Sec. 38. RETROACTIVE APPLICABILITY. This division of this
27Act applies retroactively to assessment years beginning on or
28after January 1, 2022.
29DIVISION XII
30WAGE ASSIGNMENT NOTICE
31 Sec. 39. Section 421.17B, subsection 3, paragraph a, Code
322022, is amended to read as follows:
33a. (1) The facility may proceed under this section only if
34twenty days’ notice of intent has been provided sent by regular
35mail to the last known address of the obligor, notifying
-25-1the obligor that the obligor is subject to this section and
2the facility intends to use the process established in this
3section. If the facility determines that collection of the
4debt may be in jeopardy, the facility may request that the
5employer deliver notice of the wage assignment simultaneously
6with the remainder of or in lieu of the obligor’s compensation
7due from the employer. The twenty days’ notice period shall
8not be required if the facility determines that the collection
9of past due amounts would be jeopardized.
10(2) The facility may obtain one or more wage assignments
11of an obligor who is subject to this section. If the obligor
12has more than one employer, the facility may receive wage
13assignments from one or more of the employers until the full
14debt obligation of the obligor is satisfied. If an obligor has
15more than one employer, the facility shall give notice to all
16employers from whom an assignment is sought.
17 Sec. 40. Section 421.17B, subsection 3, paragraph b,
18unnumbered paragraph 1, Code 2022, is amended to read as
19follows:
20 The facility shall notify an obligor subject to this section
21of the initiation of the wage assignment action.The notice of
22initiation from the facility to the obligor shall be sent by
23regular mail within two working days of sending the notice to
24the employer pursuant to subsection 6, paragraph “b”, and shall
25 contain all of the following:
26 Sec. 41. Section 421.17B, subsection 4, Code 2022, is
27amended by adding the following new paragraph:
28 NEW PARAGRAPH. c. The facility may obtain multiple wage
29assignments of an obligor who is subject to this section. If
30the obligor has multiple employers, the facility may receive
31wage assignments from each employer until the full debt
32obligation of the obligor is satisfied. The facility shall
33give notice to each employer when the facility is seeking a
34wage assignment.
35 Sec. 42. Section 421.17B, subsection 6, paragraph b, Code
-26-12022, is amended to read as follows:
2b. The To initiate a wage assignment, the facility shall
3send a notice to the employer within fourteen days of sending
4 more than twenty days after the notice of the wage assignment
5 intent to use the levy process is sent to the obligor pursuant
6to subsection 3, paragraph “a”. The notice shall inform the
7employer of the amount to be assigned to the facility from each
8wage, salary, or payment period that is due the obligor. The
9facility may receive assignment of up to one hundred percent
10of the obligor’s disposable income, salary, or payment for any
11given period until the full obligation to the facility is paid
12in full.
13 Sec. 43. Section 421.17B, subsection 9, paragraph a,
14unnumbered paragraph 1, Code 2022, is amended to read as
15follows:
16A notice of wage assignment given sent to the obligor under
17this section is effective without the serving of another notice
18until the earliest of either earlier of the following:
19DIVISION XIII
20OUT-OF-STATE RECIPROCAL COLLECTIONS
21 Sec. 44. Section 421.24, Code 2022, is amended by striking
22the section and inserting in lieu thereof the following:
23421.24 Reciprocal interstate enforcement.
241. For the purposes of this section, the terms “tax” and
25“taxes” include interest and penalties due under any taxing
26statute, and liability for interest or penalties, or both,
27due under a taxing statute of another state or a political
28subdivision of another state, and shall be recognized and
29enforced by the courts of this state to the same extent that
30the laws of the other state permit the enforcement of liability
31for interest or penalties, or both, due under a taxing statute
32of this state or a political subdivision of this state.
332. a. The director of revenue shall have the authority
34to enter into an agreement with a department or agency of any
35other state for the department or agency of the other state to
-27-1collect delinquent accounts, charges, fees, loans, taxes, or
2other indebtedness owed to, placed with, or being collected
3by the central debt collection facility of the department of
4revenue. The department may retain from the amounts collected
5a fee established by agreement with the department or agency
6of the other state.
7b. The director of revenue shall have the authority to
8enter into an agreement with a department or agency of any
9other state for the centralized debt collection facility to
10collect delinquent accounts, charges, fees, loans, taxes, or
11other indebtedness owed to, placed with, or being collected
12by the other state. The obligations or indebtedness of the
13other state referred to the facility must be delinquent and not
14subject to litigation, claim, appeal, or review pursuant to the
15appropriate remedies of the state. The department may retain
16from the amounts collected a fee established by agreement with
17the department or agency of the other state.
18c. Upon referral of a delinquent balance from the department
19or agency of another state pursuant to paragraph “b”, the
20department shall send written notification to the obligor by
21regular mail to the obligor’s last known mailing address. The
22notification shall contain an explanation of the balance owed,
23the department or agency to which the balance is owed, that the
24department has entered into an agreement to collect the balance
25owed, and the obligor’s opportunity to give written notice of
26intent to contest the department’s right to collect the amount
27owed.
283. a. Challenges under this section may be initiated
29only by an obligor. The department’s review of its right to
30reciprocal collection is not subject to chapter 17A.
31b. The obligor challenging the reciprocal collection shall
32submit a written challenge in the manner provided in the notice
33described in subsection 2, paragraph “c”, within fifteen days of
34the date of the notice.
35c. The department, upon receipt of a written challenge,
-28-1shall provide written notice of the challenge to the referring
2department or agency. The department shall review the
3information provided by the referring department or agency and
4shall obtain additional information if necessary to establish
5that the liability is delinquent and not subject to appeal, or
6to verify the identity of the obligor or the amount owed. The
7department shall set a time to occur within ten days of receipt
8of the challenge to review the relevant facts of the challenge
9with the obligor. An alternative time may be set at the
10request of the obligor. If the obligor does not participate in
11the review at the scheduled time and an alternative time is not
12requested and approved, the review shall take place without the
13obligor being present. Only a determination that the referred
14liability is not delinquent or is subject to challenge or a
15mistake of fact, including a mistake in the identity of the
16obligor, or a mistake in the amount owed, shall be considered
17as a reason to reject the referred liability.
18d. If the department determines that a mistake of fact
19has occurred or that the liability is not delinquent or is
20subject to challenge, the department shall reject referral of
21the liability and shall take no further action to collect the
22liability.
23e. If the department finds no mistake of fact and that
24the liability is delinquent and not subject to challenge,
25the department shall deny the challenge and provide a notice
26of that effect to the obligor and may proceed to collect the
27balance owed.
284. a. At the request of the director the attorney general
29may bring suit in the name of this state, in the appropriate
30court of any other state to collect any tax legally due in
31this state, and any political subdivision of this state or the
32appropriate officer, acting in its behalf, may bring suit in
33the appropriate court of any other state to collect any tax
34legally due to such political subdivision.
35b. The courts of this state shall recognize and enforce
-29-1liabilities for taxes lawfully imposed by any other state, or
2any political subdivision of the other state, which extends
3a like comity to this state, and the duly authorized officer
4of any such state or a political subdivision of such state may
5sue for the collection of such tax in the courts of this state.
6A certificate by the secretary of state of such other state
7that an officer suing for the collection of such a tax is duly
8authorized to collect the same shall be conclusive proof of
9such authority.
10c. The courts of this state shall not enforce interest
11rates or penalties on taxes of any other state which exceed the
12interest rates and penalties imposed by the state of Iowa for
13the same or a similar tax.
145. Thirty days following the mailing of notice pursuant
15to subsection 2, paragraph “c”, if no written challenge is
16received, or upon the department providing notice of denial
17of a challenge pursuant to subsection 3, paragraph “e”, any
18tax amount referred to the facility under subsection 2 shall
19be treated as the equivalent of individual income tax that is
20final, due and payable, and may be collected in any manner
21authorized under the law for collection of a delinquent tax
22liability, including but not limited to the recording of a
23notice of state tax lien or issuance of a distress warrant.
246. The department may release information otherwise
25confidential under section 422.20 or 422.72 to the department
26or agency of the other state, provided the department or agency
27of the other state agrees to keep such information confidential
28as defined by Iowa law. An employee or contractor of the
29department or agency of the other state shall not be required
30to complete the confidentiality training or acknowledgment
31requirements of the department.
32DIVISION XIV
33PASS-THROUGH ENTITY TAXATION
34 Sec. 45. Section 422.25A, subsection 3, Code 2022, is
35amended to read as follows:
-30- 13. State partnership pass-through representative.
2Notwithstanding any other law to the contrary, the state
3partnership pass-through representative for the reviewed
4year shall have the sole authority to act on behalf of
5the partnership or pass-through entity with respect to an
6action required or permitted to be taken by a partnership or
7pass-through entity under this section or section 422.28 or
8422.29 with respect to final federal partnership adjustments
9arising from a partnership level audit or an administrative
10adjustment request, and its direct partners and indirect
11partners shall be bound by those actions.
12 Sec. 46. Section 422.25A, subsection 4, paragraph a,
13subparagraph (3), Code 2022, is amended to read as follows:
14(3) File an amended composite return under section 422.13,
15Code 2021, or under section 422.16B, as applicable, if one
16was originally required to be filed, and if applicable for
17withholding from partners, file an amended withholding report
18under section 422.16, Code 2021, and pay the additional amount
19under this title that would have been due had the final federal
20partnership adjustments been reported properly as required,
21including any applicable interest and penalties.
22 Sec. 47. Section 422.25A, subsection 4, paragraph b,
23subparagraph (3), Code 2022, is amended to read as follows:
24(3) If the direct partner is a tiered partner and subject to
25section 422.13, Code 2021, or section 422.16B, file an amended
26composite return under section 422.13, Code 2021, or under
27section 422.16B, as applicable, if such return was originally
28required to be filed, and if applicable for withholding from
29partners file an amended withholding report under section
30422.16, Code 2021, if one was originally required to be filed.
31 Sec. 48. Section 422.25A, subsection 4, paragraph c,
32subparagraph (3), Code 2022, is amended to read as follows:
33(3) Within ninety days after the time for filing and
34furnishing statements to tiered partners and their partners as
35established by section 6226 of the Internal Revenue Code and
-31-1the regulations thereunder, if the indirect partner is a tiered
2partner and subject to section 422.13, Code 2021, or section
3422.16B, file an amended composite return under section 422.13,
4Code 2021, or under section 422.16B, as applicable, if such
5return was originally required to be filed, and if applicable
6for withholding from partners, file an amended withholding
7report under section 422.16, Code 2021, if one was originally
8required to be filed.
9 Sec. 49. Section 422.25B, Code 2022, is amended to read as
10follows:
11422.25B State partnership pass-through representative.
121. As used in this section, all words and phrases defined
13in section 422.25A shall have the same meaning given them by
14that section.
152. The state partnership pass-through representative for
16the reviewed year for a partnership shall be the partnership’s
17federal partnership representative with respect to an action
18required or permitted to be taken by a state partnership
19 pass-through representative under this chapter for a reviewed
20year, unless the partnership designates in writing another
21person as the state partnership pass-through representative as
22provided in subsection 3. The state partnership pass-through
23 representative for the reviewed year for a pass-through entity
24is the person designated in subsection 3.
253. The department may establish reasonable qualifications
26for a person to be a state partnership pass-through
27 representative. If a partnership desires to designate a
28person other than the federal partnership representative, the
29partnership shall designate such person in the manner and
30form prescribed by the department. A pass-through entity
31shall designate a person as the state partnership pass-through
32 representative in the manner and form prescribed by the
33department. A partnership or pass-through entity shall be
34allowed to change such designation by notifying the department
35at the time the change occurs in the manner and form prescribed
-32-1by the department.
24. The department may adopt any rules pursuant to chapter
317A to implement this section.
4 Sec. 50. Section 422.25C, subsections 2 and 3, Code 2022,
5are amended to read as follows:
62. For tax years beginning on or after January 1, 2020, any
7adjustments to a partnership’s or pass-through entity’s items
8of income, gain, loss, expense, or credit, or an adjustment to
9such items allocated to a partner that holds an interest in a
10partnership or pass-through entity for the reviewed year by
11the department as a result of a state partnership audit, shall
12be determined at the partnership level or pass-through entity
13level in the same manner as provided by section 6221(a) of the
14Internal Revenue Code and the regulations thereunder unless a
15different treatment is specifically provided in this title.
16The provisions of sections 6222, 6223, and 6227 of the Internal
17Revenue Code and the regulations thereunder shall also apply to
18a partnership or pass-through entity and its direct or indirect
19partners in the same manner as provided in such sections unless
20a different treatment is specifically provided in this title.
21For purposes of applying such sections, due account shall be
22made for differences in federal and Iowa terminology. The
23adjustment provided by section 6221(a) of the Internal Revenue
24Code shall be determined as provided in such section but shall
25be based on Iowa taxable income or other tax attributes of
26the partnership or pass-through entity as determined pursuant
27to this chapter for the reviewed year. The department shall
28issue a notice of adjustment to the partnership or pass-through
29entity. Such notice shall be treated as an assessment for
30the purposes of section 422.25, and the notice shall be
31appealable by the partnership or pass-through entity pursuant
32to sections 422.28 and 422.29 and shall be issued within the
33time period provided by section 422.25. Once the adjustments
34to partnership-related or pass-through entity-related items or
35reallocations of income, gains, losses, expenses, credits, and
-33-1other attributes among such partners for the reviewed year are
2finally determined, the partnership or pass-through entity and
3any direct partners or indirect partners shall then be subject
4to the provisions of section 422.25, subsection 1, paragraph
5“e”, and section 422.25A in the same manner as if the state
6partnership audit were a federal partnership level audit, and
7as if the final state partnership audit adjustment were a final
8federal partnership adjustment. The penalty exceptions in
9section 421.27, subsection 2, paragraphs “b” and “c”, shall not
10apply to a state partnership audit.
113. The state partnership pass-through representative for
12the reviewed year as determined under section 422.25B shall
13have the sole authority to act on behalf of the partnership
14or pass-through entity with respect to an action required or
15permitted to be taken by a partnership or pass-through entity
16under this section, including proceedings under section 422.28
17or 422.29, and the partnership’s or pass-through entity’s
18direct partners and indirect partners shall be bound by those
19actions.
20 Sec. 51. COMPOSITE RETURN UNUSED TAX CREDIT CARRYFORWARDS
21FROM TAX YEAR 2021. Notwithstanding any other provision
22of law to the contrary, if a pass-through entity filing
23composite returns under section 422.13, subsection 5, Code
242021, has a nonrefundable income tax credit carryforward amount
25attributable to the composite return following the close of
26the entity’s composite return tax year that began during the
272021 calendar year, the pass-through entity may allocate those
28income tax credit carryforward amounts to the pass-through
29entity’s partners, members, beneficiaries, or shareholders in
30the pass-through entity’s tax year that begins during the 2022
31calendar year, in the amount designated by the pass-through
32entity and in the manner and form prescribed by the department
33of revenue. The income tax credit shall be the same in the
34hands of the partner, member, beneficiary, or shareholder as in
35the pass-through entity, and may be claimed for any tax year
-34-1that the pass-through entity could have claimed the tax credit.
2DIVISION XV
3INHERITANCE TAX — UNKNOWN HEIRS
4 Sec. 52. Section 450.93, Code 2022, is amended to read as
5follows:
6450.93 Unknown heirs.
71. Whenever For a decedent dying before January 1, 2021,
8whenever the heirs or persons entitled to any estate or any
9interest therein are unknown or their place of residence
10cannot with reasonable certainty be ascertained, a tax of five
11percent shall be paid to the department of revenue upon all
12such estates or interests, subject to refund as provided herein
13in other cases; provided, however, that if it be afterwards
14determined that any estate or interest passes to aliens, there
15shall be paid within sixty days after such determination and
16before delivery of such estate or property, an amount equal to
17the difference between five percent, the amount paid, and the
18amount which such person should pay under the provisions of
19this chapter.
202. a. For a decedent dying on or after January 1, 2021,
21but before January 1, 2022, the tax imposed in subsection 1
22shall be reduced by twenty percent, and rounded to the nearest
23one-hundredth of one percent.
24b. For a decedent dying on or after January 1, 2022,
25but before January 1, 2023, the tax imposed in subsection 1
26shall be reduced by forty percent, and rounded to the nearest
27one-hundredth of one percent.
28c. For a decedent dying on or after January 1, 2023,
29but before January 1, 2024, the tax imposed in subsection 1
30shall be reduced by sixty percent, and rounded to the nearest
31one-hundredth of one percent.
32d. For a decedent dying on or after January 1, 2024, but
33before January 1, 2025, the tax imposed in subsection 1 shall
34be reduced by eighty percent, and rounded to the nearest
35one-hundredth of one percent.
-35- 13. For a decedent dying on or after January 1, 2025, the tax
2in subsection 1 shall not be imposed.
3 Sec. 53. RETROACTIVE APPLICABILITY. This division of this
4Act applies retroactively to January 1, 2021.
5DIVISION XVI
6NOTICE REQUIREMENTS FOR PUBLICATION OF INTEREST RATES
7 Sec. 54. Section 421.7, subsection 6, Code 2022, is amended
8to read as follows:
96. In November of each year the director shall cause an
10advisory notice to be published in the Iowa administrative
11bulletin and in a newspaper of general circulation in this
12state on the internet site of the department, stating the
13rate of interest to be in effect on or after January 1 of
14the following year, as established by this section. The
15calculation and publication of the rate of interest by the
16director is exempt from chapter 17A.
17DIVISION XVII
18PROPERTY ASSESSMENT APPEAL BOARD — SALARIES
19 Sec. 55. 2008 Iowa Acts, chapter 1191, section 14,
20subsection 5, as amended by 2013 Iowa Acts, chapter 123,
21section 63, 2018 Iowa Acts, chapter 1163, section 8, and 2018
22Iowa Acts, chapter 1165, section 81, is amended to read as
23follows:
245. The following are range 5 positions: administrator of
25the division of homeland security and emergency management of
26the department of public defense, state public defender, drug
27policy coordinator, labor commissioner, workers’ compensation
28commissioner, executive director of the college student aid
29commission, director of the department of cultural affairs,
30director of the department of elder affairs, director of the
31law enforcement academy, members of the property assessment
32appeal board, executive director of the department of veterans
33affairs, and administrator of the historical division of the
34department of cultural affairs.
35 Sec. 56. 2008 Iowa Acts, chapter 1191, section 14,
-36-1subsection 6, is amended to read as follows:
26. The following are range 6 positions: director of the
3office of energy independence, superintendent of banking,
4superintendent of credit unions, administrator of the alcoholic
5beverages division of the department of commerce, director of
6the department of inspections and appeals, commandant of the
7Iowa veterans home, commissioner of public safety, commissioner
8of insurance, executive director of the Iowa finance authority,
9director of the department of natural resources, consumer
10advocate, members of the property assessment appeal board, and
11chairperson of the utilities board. The other members of the
12utilities board shall receive an annual salary within a range
13of not less than 90 percent but not more than 95 percent of the
14annual salary of the chairperson of the utilities board.
15 Sec. 57. APPLICABILITY. This division of this Act applies
16to fiscal years beginning on or after July 1, 2022, effective
17with the pay period beginning June 24, 2022, and subsequent pay
18periods.
19EXPLANATION
20The inclusion of this explanation does not constitute agreement with
21the explanation’s substance by the members of the general assembly.
22This bill relates to state and local finances and the duties
23and procedures of the department of revenue by providing for
24electronic filing, communications, and records, modifying
25transfer tax remittances, the assessment of property, the
26collection of debt, and the taxation of pass-through entities,
27reducing inheritance taxes for unknown heirs, and establishing
28salaries.
29DIVISION I — RECORD RETENTION. Currently, the director of
30the department of revenue (DOR) may destroy useless records of
31any taxpayer filed with or kept by the department. The bill
32specifies that the director of revenue (director) shall destroy
33useless records by the end of the calendar year following the
34year in which the records are determined to be useless. The
35bill permits a taxpayer or the DOR to request the director
-37-1retain a useless record under certain circumstances. The
2bill also permits DOR to retain some records if personally
3identifiable information has been removed, or the records are
4related to a rule, statement of law or policy, or a final
5order, decision, or opinion.
6The bill allows DOR to make electronic copies of records or
7use other methods to make such copies.
8The division takes effect January 1, 2025.
9DIVISION II — ELECTRONIC FILING — FIDUCIARIES — BUSINESS
10ENTITIES. The bill requires a fiduciary to file an electronic
11return under any of the following certain circumstances: the
12individual, estate, or trust has gross receipts of $250,000 or
13more; the fiduciary is required to provide 10 or more schedules
14K-1 to the beneficiaries; or the fiduciary reports $25,000 or
15more of Iowa tax credits.
16The bill requires a partnership to file an electronic return
17under any of the following circumstances: the partnership has
18gross receipts of $250,000 or more; the partnership is required
19to provide 10 or more schedules K-1 to the partners; or the
20partnership reports $25,000 or more of Iowa tax credits.
21If a pass-through entity that is required to file a composite
22return is required to file an electronic return under section
23422.14, 422.15, or 422.36, the bill requires the pass-through
24entity to file the composite return of the pass-through entity
25in an electronic format for the same taxable year. A composite
26return generally is a return filed by a pass-through entity
27that reports the state income of all nonresident owners.
28The bill requires a corporation to file an electronic return
29if the corporation has gross receipts of $250,000 or more, or
30the corporation reports $25,000 or more of Iowa tax credits, or
31in the case of an S corporation, the corporation is required to
32issue 10 or more schedules K-1 to the shareholders.
33The bill requires an affiliated group of corporations to
34file an electronic return regardless of the amount of gross
35receipts of the affiliated group or Iowa tax credits claimed.
-38- 1The bill requires a financial institution (bank) to file an
2electronic return under any of the following circumstances:
3the financial institution has gross receipts of $250,000 or
4more; the financial institution reports $25,000 or more of Iowa
5tax credits, or in the case of an S corporation, the financial
6institution is required to issue 10 or more schedules K-1 to
7the shareholders.
8The division applies to tax years ending on or after December
931, 2022, for a partnership, pass-through entity, corporation,
10and financial institution, and applies to tax years ending on
11or after December 31, 2023, for a fiduciary, or for tax years
12ending on or after December 31 of the calendar year in which
13the department implements a system for receiving the electronic
14returns required by the division.
15DIVISION III — ELECTRONIC FILING — CREDIT UNIONS. The
16bill requires a credit union to file a return in an electronic
17format specified by DOR.
18The division applies to tax years ending on or after December
1931, 2024, or for tax years ending on or after December 31 of the
20calendar year in which the department implements a system for
21receiving the electronic returns required by the division.
22DIVISION IV — AUTHORITY TO CHARGE FEES. The bill specifies
23DOR may charge a fee for a copy of a return. The fee may be
24established by rule.
25The bill also specifies that this division shall not be
26construed to prohibit DOR from charging a fee for a copy of
27a return prior to the enactment of the division pursuant to
28another authority of DOR.
29DIVISION V — AUTHORITY TO ACT ON BEHALF OF TAXPAYER. The
30bill strikes and replaces provisions relating to the authority
31to act on behalf of a business entity, and specifies that such
32a person must be designated to act on behalf of the business
33entity in tax matters.
34The bill specifies DOR may authorize a trustee to have
35authority to act on behalf of a taxpayer, if the trustee
-39-1complies with certain conditions requested by DOR including but
2not limited to providing a copy of the trust agreement.
3The bill specifies DOR may authorize a person named as
4general or durable power of attorney to act on behalf of
5a taxpayer if the person is named in a document which is
6currently in force.
7The bill requires a person acting on behalf of a taxpayer
8must certify that the person possesses actual authority to act
9on behalf of the entity in tax matters.
10The bill allows DOR to require any documents or other
11evidence to demonstrate an individual has authority to act on
12behalf of the taxpayer before DOR.
13DIVISION VI — ELECTRONIC COMMUNICATION. Under the
14bill, DOR may permit a person to elect to receive a notice,
15correspondence, or other communication electronically.
16If a person makes an election to receive an electronic
17communication, the posting of the electronic communication
18to the electronic portal of DOR satisfies any requirement of
19mailing or personal service in title X (financial resources),
20Code chapter 272D (debt owed state or local government), or
21Code sections 321.105A (fee for new registration) and 533.329
22(taxation of credit unions).
23The bill allows DOR to send any notice, correspondence, or
24other communication by mail to a person who has elected to
25receive an electronic communication.
26DIVISION VII — INCOME STATEMENTS TO BE PROVIDED TO
27THE DEPARTMENT. The bill updates and amends Code section
28422.16(10)(a) relating to the penalties for willful violations
29of the following: failure to furnish an employee with an
30income statement; furnishing a false or fraudulent income
31statement to an employee; failure to file an income statement
32with DOR; filing a false or fraudulent income statement with
33DOR; failure to file an annual reporting of taxes withheld with
34DOR; and filing a false or fraudulent annual reporting of taxes
35withheld with DOR. Under the bill and in current law, each
-40-1violation is punishable by a $500 civil penalty.
2The bill amends Code section 422.16(10)(b) to specify that a
3person, withholding agent, or other person required to file a
4withholding return shall be subject to the penalties provided
5in Code section 421.27 in addition to the tax or additional tax
6due.
7The bill provides that the director may allow additional
8time for the filing of documents required by section 422.16
9(withholding income tax) in the case of illness, disability,
10absence, or if good cause is shown.
11DIVISION VIII — REMITTANCES OF TRANSFER TAX. Currently,
12the county recorder remits the real estate transfer tax to
13the treasurer of state. The bill changes the remittances
14of the transfer tax by the county recorder and requires the
15remittances of the transfer tax by the county recorder be made
16to the department of revenue.
17DIVISION IX — BOARD OF REVIEW ELIGIBILITY. The bill amends
18Code section 441.32 relating to the removal of a member of a
19board of review by specifying that if a board member is removed
20under that Code section, the board member shall not be eligible
21for appointment to a board of review in this state for six
22years following the date of the removal.
23DIVISION X — EQUALIZATION ADJUSTMENTS — APPEALS. The
24bill amends Code section 441.48 to provide that, in addition
25to the board of supervisors or the city council, a city or
26county attorney or other official of the county or assessing
27jurisdiction may provide written notice of intent to appeal
28an equalization to the department of revenue. The bill also
29requires the written notice of appeal to be provided within
3010 days of the notice provided by the department of revenue.
31Upon receiving a timely notice of intent to appeal, the bill
32requires the department to schedule a hearing on the proposed
33adjustment with the county or assessing jurisdiction and
34specifies the allowable formats for the hearing or written
35presentation of the appeal. The bill specifies that appeals of
-41-1a proposed adjustment are not subject to Code chapter 17A.
2DIVISION XI — BUSINESS PROPERTY TAX CREDIT AND ASSESSMENT
3LIMITATION. Code chapter 426C provides a business property tax
4credit for commercial, industrial, and railway property for
5property taxes due and payable in fiscal years beginning on or
6after July 1, 2014. The business property tax credit is funded
7from an annual standing appropriation of $125 million.
8The bill eliminates the annual appropriation for the
9business property tax credit under Code section 426C.2 for
10fiscal years beginning on or after July 1, 2023, and provides
11that moneys remaining in the business property tax credit fund
12at the end of the fiscal year beginning July 1, 2022, shall be
13transferred by the department of revenue for deposit in the
14general fund of the state. The bill also establishes a future
15repeal date for Code chapter 426C of July 1, 2024.
16Current Code section 441.21 imposes an assessment limitation
17(rollback) on commercial property, industrial property,
18and property valued by the department of revenue under Code
19chapter 434 (railway company property) of 90 percent for
20assessment years beginning on or after January 1, 2014. The
21bill modifies the amount and methodology for calculating the
22assessment limitation for property units, as defined in the
23bill, within those classifications of property. Instead of a
24uniform percentage of value, for valuations established for the
25assessment year beginning January 1, 2022, and each assessment
26year thereafter, the portion of actual value at which each
27property unit of commercial property shall be assessed shall be
28the sum of the following: (1) an amount equal to the product of
29the assessment limitation percentage applicable to residential
30property multiplied by the actual value of the property that
31exceeds $0 but does not exceed $150,000; and (2) an amount
32equal to 90 percent of the actual value of the property
33for that assessment year that exceeds $150,000. The bill
34establishes a similar provision for industrial property and
35provides that the assessed value of railway company property
-42-1shall be determined in the same manner as commercial property.
2The bill also establishes an annual payment to local
3governments based on the modified assessment limitations
4imposed on that portion of the value of commercial and
5industrial properties that does not exceed $150,000. For
6each fiscal year beginning on or after July 1, 2023, there
7is appropriated from the general fund of the state to the
8department of revenue the sum of $125 million to be used for
9such payments. If an amount appropriated for a fiscal year
10is insufficient to make all payments, the director of revenue
11shall prorate the payments to the county treasurers.
12DIVISION XII — WAGE ASSIGNMENT NOTICE. The bill modifies
13Code section 421.17B (administrative wage assignment
14cooperative agreement). Under the bill, the centralized
15debt collection facility (facility) within the department of
16revenue may proceed against an obligor if a 20 days’ notice
17of intent has been sent to the obligor notifying the obligor
18the facility intends to begin a wage assignment action. The
19bill specifies the 20 days’ notice period does not apply if the
20facility determines the collection of past due amounts would
21be in jeopardy. After the 20 days’ notice period has run,
22the bill requires the facility to notify the obligor of the
23initiation of the wage assignment action within two working
24days of sending the notice to the obligor’s employer, and the
25facility may obtain multiple wage assignments, if the obligor
26has multiple employers.
27DIVISION XIII — OUT-OF-STATE RECIPROCAL COLLECTIONS. The
28bill modifies provisions related to out-of-state reciprocal
29debt collections. Currently, the provisions are limited to
30the collection of out-of-state tax debt. The bill expands
31the types of debt the director is able to collect, and allows
32the director to enter into an agreement with a department in
33another state to collect the debts being collected by DOR. The
34bill allows the director to enter into agreements to collect
35the debts of another state through DOR. The bill requires the
-43-1out-of-state debt being collected by DOR to be delinquent and
2not subject to litigation prior to accepting the collection on
3such debt.
4The bill establishes procedures to collect out-of-state debt
5including procedures for challenging the collection of such
6debt. The bill allows DOR to collect a fee from the amount of
7out-of-state debt collected.
8The bill specifies the DOR may release taxpayer information
9that otherwise would be confidential when working with an
10out-of-state department or agency, provided the out-of-state
11department or agency complies with Iowa confidentiality law.
12DIVISION XIV — PASS-THROUGH ENTITY TAXATION. The bill
13changes the term “state partnership representative” to “state
14pass-through representative” numerous times.
15The bill permits a pass-through entity filing a composite
16return that has a nonrefundable income tax credit carryforward
17amount attributable to the composite return following the
18close of the entity’s composite return for the tax year that
19began during the 2021 calendar year to allocate those income
20tax credit carryforward amounts to the pass-through entity’s
21partners, members, beneficiaries, or shareholders in the
22pass-through entity’s tax year that begins during the 2022
23calendar year.
24DIVISION XV — INHERITANCE TAX — UNKNOWN HEIRS. Currently,
25if an heir entitled to an estate interest cannot be found,
26a tax of 5 percent is paid to the state, until the heir is
27found, and at such time the correct amount of inheritance tax
28is recomputed and paid to the state. The bill reduces the
29inheritance tax on an unknown heir on the same percentage basis
30the inheritance tax is being reduced in Code section 450.10.
31The inheritance tax is set to be repealed for decedents dying
32on or after January 1, 2025.
33The division applies retroactively to January 1, 2021.
34DIVISION XVI — NOTICE REQUIREMENTS FOR PUBLICATION OF
35INTEREST RATES. The bill strikes a provision requiring the
-44-1director to publish the rate of interest in a newspaper, and
2substitutes this requirement by allowing for the publication of
3interest rates on the internet site of DOR.
4DIVISION XVII — PROPERTY ASSESSMENT APPEAL BOARD —
5SALARIES. The general assembly periodically establishes salary
6ranges for certain appointed state officers and authorizes a
7person (generally the governor) to establish the salaries of
8those state officers. In 2013, the general assembly amended
9the most recent salary range legislation (2008 Iowa Acts,
10chapter 1191) to add members of the property assessment appeal
11board to salary range 5 ($73,250 to $112,070). The bill moves
12members of the property assessment appeal board to salary range
136 ($84,240 to $128,890) with the pay period beginning June 24,
142022.
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