Senate File 2371 - 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, the
5collection of debt, the refunds of certain fuel taxes, and
6the taxation of pass-through entities, reducing inheritance
7taxes for unknown heirs, establishing salaries, providing
8for a fee, making appropriations, and providing penalties,
9and including effective date, applicability, and retroactive
10applicability provisions.
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 a trustee shall submit a certification of
18trust, or in the absence of a certification of trust a copy of
19the court order appointing the trustee if one has been issued,
20or a copy of the trust.
   21(2)  The department has standing to petition the court that
22appointed the trustee to verify the appointment or to determine
23the scope of the appointment.
24   NEW PARAGRAPH.  j.  A person named as an agent in a general
25or durable power of attorney document that is currently
26in force and such document has not been prescribed by the
27department of revenue.
28   NEW PARAGRAPH.  k.  A successor as defined in section
29633.356, subsection 2, of a very small estate.
30   Sec. 17.  Section 421.59, Code 2022, is amended by adding the
31following new subsections:
32   NEW SUBSECTION.  3A.  An individual acting on behalf of
33a taxpayer pursuant to subsection 2 must certify that the
34individual possesses actual authority to act on behalf of the
35taxpayer in tax matters.
-10-
1   NEW SUBSECTION.  3B.  In addition to documents required under
2subsection 2, the department shall require any documents or
3other evidence to demonstrate an individual has authority to
4act on behalf of the taxpayer before the department.
5DIVISION VI
6ELECTRONIC COMMUNICATION
7   Sec. 18.  Section 421.60, subsection 11, Code 2022, is
8amended by striking the subsection and inserting in lieu
9thereof the following:
   1011.  Electronic communication.
   11a.  As used in this subsection, “electronic communication”
12means a notice, correspondence, or other communication provided
13electronically.
   14b.  The department of revenue, by rule, may permit a person
15to elect to receive an electronic communication from the
16department.
   17c.  (1)  Notwithstanding any provision of law to the
18contrary, when an electronic communication is posted to the
19department’s electronic portal for a person who has made such
20an election, the posting of the electronic communication shall
21satisfy any requirement of mailing or personal service in this
22title, chapter 272D, or sections 321.105A and 533.329.
   23(2)  The department may send any notice, correspondence,
24or other communication by mail to a person who has elected to
25receive an electronic communication from the department.
   26(3)  If the department sends a notice, correspondence,
27or other communication by both mail and by electronic
28communication, service occurs upon the earlier of when the
29communication is posted to the department’s electronic portal
30or mailed.
   31d.  The director of revenue may adopt rules and establish
32procedures under this subsection.
33DIVISION VII
34INCOME STATEMENTS TO BE PROVIDED TO THE DEPARTMENT
35   Sec. 19.  Section 422.16, subsection 2, paragraphs b and c,
-11-1Code 2022, are amended to read as follows:
   2b.  Every withholding agent on or before the end fifteenth
3day
of the second month following the close of the calendar
4year in which the withholding occurs shall make an annual
5reporting of taxes withheld and other information prescribed
6by the director and send to the department copies of wage and
7tax statements with the return
 income statements required
8by subsection 7
. At the discretion of the director, the
9withholding agent shall not be required to send wage statements
10and tax
 income statements with the annual reporting return
11form
 report if the information is available from the internal
12revenue service or other state or federal agencies.
   13c.  If the director has reason to believe that the collection
14of the tax provided for in subsections 1 and 12 is in jeopardy,
15the director may require the employer or withholding agent to
16make the report file a return as required in subsection 2,
17paragraph “a”,
and pay the tax at any time, in accordance with
18section 422.30. The director may authorize incorporated banks,
19trust companies, or other depositories authorized by law which
20are depositories or financial agents of the United States or of
21this state, to receive any tax imposed under this chapter, in
22the manner, at the times, and under the conditions the director
23prescribes. The director shall also prescribe the manner,
24times, and conditions under which the receipt of the tax by
25those depositories is to be treated as payment of the tax to
26the department.
27   Sec. 20.  Section 422.16, subsection 7, Code 2022, is amended
28to read as follows:
   297.  a.  Every withholding agent required to deduct and
30withhold a tax under subsections 1 and 12 of this section
31shall furnish to such employee, nonresident, or other person
32in respect of the remuneration income paid by such employer
33or withholding agent to such employee, nonresident, or other
34person during the calendar year, on or before January 31 of
35the succeeding year, or, in the case of employees, if the
-12-1employee’s employment is terminated before the close of such
2calendar year, within thirty days from the day on which the
3last payment of wages or other taxable income is made, if
4requested by such employee, but not later than January 31 of
5the following year, a written an income statement showing the
6following:
   7(1)  The name and address of such employer or withholding
8agent, and the taxpayer identification number of such employer
9or withholding agent.
   10(2)  The name of the employee, nonresident, or other person
11and that person’s federal social security account taxpayer
12identification
number, together with the last known address of
13such employee, nonresident, or other person to whom wages have
14
 or other taxable income has been paid during such period.
   15(3)  The gross amount of wages, or other taxable income, paid
16to the employee, nonresident, or other person.
   17(4)  The total amount deducted and withheld as tax under the
18provisions of subsections 1 and 12 of this section.
   19(5)  The total amount of federal income tax withheld.
   20b.  The income statements required to be furnished by this
21subsection in respect of any wages or other taxable Iowa income
 22or any additional information required to be displayed on the
23income statement
shall be in such form or forms as the director
24may, by regulation rule, prescribe.
25   Sec. 21.  Section 422.16, subsection 10, paragraphs a and b,
26Code 2022, are amended to read as follows:
   27a.  An In addition to any other penalty provided by law,
28an
employer or withholding agent required under this chapter
29 to furnish a statement required by this chapter who willfully
30furnishes a false or fraudulent statement, or who willfully
31fails to furnish the statement is, for each failure, subject
32to a civil penalty of five hundred dollars, the penalty to be
33in addition to any criminal penalty otherwise provided by the
34Code.
 to furnish or file an income statement required by this
35statement is subject to a civil penalty of five hundred dollars
-13-1for each occurrence of the following:

   2(1)  Willful failure to furnish an employee, nonresident, or
3other person with an income statement.
   4(2)  Willfully furnishing an employee, nonresident, or other
5person with a false or fraudulent income statement.
   6(3)  Willful failure to file an income statement with the
7department.
   8(4)  Willfully filing a false or fraudulent income statement
9with the department.
   10b.  In addition to the tax or additional tax, any A person,
11 or withholding agent shall pay a, or other person required by
12this section to file a return is subject to the
penalty as
13provided in section 421.27. Any penalty assessed under section
14421.27 shall be in addition to the tax or additional tax due.

15 The taxpayer shall also pay interest on the tax or additional
16tax at the rate in effect under section 421.7, for each month
17counting each fraction of a month as an entire month, computed
18from the date the semimonthly, monthly, or quarterly deposit
19form was required to be filed. The penalty and interest become
20a part of the tax due from the withholding agent.
21   Sec. 22.  Section 422.16, Code 2022, is amended by adding the
22following new subsection:
23   NEW SUBSECTION.  15.  The director may allow additional
24time for filing documents required under this section with the
25department in the case of illness, disability, absence, or if
26good cause is shown.
27DIVISION VIII
28REMITTANCES OF TRANSFER TAX
29   Sec. 23.  Section 428A.8, subsection 1, paragraphs a and c,
30Code 2022, are amended to read as follows:
   31a.  On or before the tenth day of each month the county
32recorder shall determine and pay remit to the treasurer of
33state
 department of revenue eighty-two and three-fourths
34percent of the receipts from the real estate transfer tax
35collected during the preceding month and the treasurer of state
-14-1
 department of revenue shall deposit and transfer the receipts
2as provided in subsection 2.
   3c.  Any tax or additional tax found to be due shall be
4collected by the county recorder. If the county recorder
5is unable to collect the tax, the director of revenue shall
6collect the tax in the same manner as taxes are collected in
7chapter 422, subchapter III. If collected by the director
8of revenue, the director shall pay remit to the county its
9proportionate share of the tax. Section 422.25, subsections
101, 2, 3, and 4, and sections 422.26, 422.28 through 422.30,
11and 422.73, consistent with this chapter, apply with respect
12to the collection of any tax or additional tax found to be due,
13in the same manner and with the same effect as if the deed,
14instrument, or writing were an income tax return within the
15meaning of those statutes.
16   Sec. 24.  Section 428A.8, subsection 2, unnumbered paragraph
171, Code 2022, is amended to read as follows:
   18The treasurer of state department of revenue shall deposit
19or transfer the receipts paid remitted to the treasurer of
20state
 department of revenue pursuant to subsection 1 to either
21the general fund of the state, the housing trust fund created
22in section 16.181, or the shelter assistance fund created in
23section 16.41 as follows:
24   Sec. 25.  Section 428A.9, Code 2022, is amended to read as
25follows:
   26428A.9  Refund of tax.
   27To receive a refund from the state the taxpayer shall
28petition the state appeal board for a refund of the amount of
29overpayment of the tax paid remitted to the treasurer of state
30
 department of revenue. To receive a refund from the county
31the taxpayer shall petition the board of supervisors for a
32refund of the remaining portion of the overpayment paid to that
33county.
34DIVISION IX
35BOARD OF REVIEW ELIGIBILITY
-15-
1   Sec. 26.  Section 441.32, Code 2022, is amended by adding the
2following new subsection:
3   NEW SUBSECTION.  3.  If a board member is removed under this
4section, the board member shall not be eligible for appointment
5to a board of review in this state for six years following the
6date of the removal.
7DIVISION X
8EQUALIZATION ADJUSTMENTS — appeals
9   Sec. 27.  Section 441.48, Code 2022, is amended to read as
10follows:
   11441.48  Notice of adjustment — protest appeal — final
12action.
   131.  Before the department of revenue shall adjust the
14valuation of any class of property any such percentage, the
15department shall first serve ten days’ notice by mail, on the
16county auditor of the county whose valuation is proposed to be
17adjusted.
   182.  If the county or assessing jurisdiction intends
19to protest appeal the proposed adjustment, the board of
20supervisors or city council, city or county attorney, or
21other official of the county or assessing jurisdiction,
as
22applicable, shall provide the department with written notice of
23intent to protest prior to expiration of the ten days’ notice
24
 appeal within ten days of the notice provided by the department
25of revenue under subsection 1
.
   263.  After expiration of the ten days’ notice, the county
27or assessing jurisdiction may appear by its city council or
28board of supervisors, city or county attorney, or city or
29county officials, and make written or oral protest against such
30proposed adjustment.
 Upon receiving a timely notice of intent
31to appeal under subsection 2, the department shall schedule a
32hearing on the proposed adjustment with the county or assessing
33jurisdiction. A county or assessing jurisdiction may submit
34an oral presentation at the hearing supported by written
35documentation or may submit a written presentation in lieu
-16-1of making an oral presentation at a hearing. The county or
2assessing jurisdiction shall submit all written documentation
3to the department prior to the date of the hearing or, if the
4county or assessing jurisdiction elects a written presentation,
5not later than the date the written presentation is submitted.

   64.  The protest appeal shall consist simply of a statement
7of the error, or errors, complained of with such facts and
8documentation
as may lead to their correction of such errors.
   95.   Appeals of the proposed adjustment under this section
10are not subject to Code chapter 17A.
After written protest is
11received, or an oral protest is heard
 the hearing is held or
12the written presentation is submitted
, the final action may be
13taken in reference to the proposed adjustment.
14DIVISION XI
15BUSINESS PROPERTY TAX CREDIT AND ASSESSMENT LIMITATIONS
16   Sec. 28.  Section 2.48, subsection 3, paragraph f,
17subparagraph (5), Code 2022, is amended by striking the
18subparagraph.
19   Sec. 29.  Section 331.512, subsection 5, Code 2022, is
20amended by striking the subsection.
21   Sec. 30.  Section 331.559, subsection 15, Code 2022, is
22amended by striking the subsection.
23   Sec. 31.  Section 357H.9, subsection 1, paragraph d,
24subparagraph (2), Code 2022, is amended to read as follows:
   25(2)  The difference between the actual value of the property
26as determined by the assessor each year and the percentage
27of adjustment certified for that year by the director of
28revenue on or before November 1
 assessed value of the property
29following application of the assessment limitations
pursuant to
30section 441.21, subsection 9, multiplied by the actual value of
31the property as determined by the assessor,
shall be subtracted
32from the actual value of the property as determined pursuant to
33section 403.19, subsection 1.
34   Sec. 32.  Section 357H.9, subsection 1, paragraph f,
35subparagraph (1), Code 2022, is amended to read as follows:
-17-   1(1)  “Base year taxable value” means the actual value of
2the property as determined in section 403.19, subsection 1,
3multiplied by the percentage of adjustment certified for the
4assessment year specified in section 403.19, subsection 1,
5by the director of revenue on or before November 1
 following
6application of the assessment limitations
pursuant to section
7441.21, subsection 9.
8   Sec. 33.  Section 403.20, Code 2022, is amended to read as
9follows:
   10403.20  Percentage of adjustment considered in value
11assessment.
   12In determining the assessed value of property within an
13urban renewal area which is subject to a division of tax
14revenues pursuant to section 403.19, the difference between the
15actual value of the property as determined by the assessor each
16year and the percentage of adjustment certified for that year
17by the director of revenue on or before November 1 pursuant
18to section 441.21, subsection 9, multiplied by
the actual
19value of the property as determined by the assessor following
20application of the assessment limitations under section 441.21,
21subsection 9
, shall be subtracted from the actual value of the
22property as determined pursuant to section 403.19, subsection
231. If the assessed value of the property as determined
24pursuant to section 403.19, subsection 1, is reduced to zero,
25the additional valuation reduction shall be subtracted from the
26actual value of the property as determined by the assessor.
27   Sec. 34.  Section 426C.2, Code 2022, is amended to read as
28follows:
   29426C.2  Business property tax credit fund — appropriation.
   301.  A business property tax credit fund is created in the
31state treasury under the authority of the department. For the
32fiscal year beginning July 1, 2014, there is appropriated from
33the general fund of the state to the department to be credited
34to the fund, the sum of fifty million dollars to be used for
35business property tax credits authorized in this chapter. For
-18-1the fiscal year beginning July 1, 2015, there is appropriated
2from the general fund of the state to the department to be
3credited to the fund, the sum of one hundred million dollars
4to be used for business property tax credits authorized in
5this chapter. For the fiscal year beginning July 1, 2016, and
6each fiscal year thereafter beginning before July 1, 2023,
7there is appropriated from the general fund of the state to the
8department to be credited to the fund, the sum of one hundred
9twenty-five million dollars to be used for business property
10tax credits authorized in this chapter.
   112.  Notwithstanding section 12C.7, subsection 2, interest or
12earnings on moneys deposited in the fund shall be credited to
13the fund. Moneys in the fund are not subject to the provisions
14of section 8.33 and shall not be transferred, used, obligated,
15appropriated, or otherwise encumbered except as provided in
16this chapter. However, moneys remaining in the fund at the end
17of the fiscal year beginning July 1, 2022, shall be transferred
18by the department for deposit in the general fund of the state.

19   Sec. 35.  NEW SECTION.  426C.10  Future repeal.
   20This chapter is repealed July 1, 2024.
21   Sec. 36.  Section 441.21, subsection 5, Code 2022, is amended
22to read as follows:
   235.  a.  For valuations established as of January 1, 1979,
24property valued by the department of revenue pursuant to
25chapters 428, 433, 437, and 438 shall be considered as one
26class of property and shall be assessed as a percentage of
27its actual value. The percentage shall be determined by the
28director of revenue in accordance with the provisions of this
29section. For valuations established as of January 1, 1979, the
30percentage shall be the quotient of the dividend and divisor
31as defined in this section. The dividend shall be the total
32actual valuation established for 1978 by the department of
33revenue, plus ten percent of the amount so determined. The
34divisor for property valued by the department of revenue
35pursuant to chapters 428, 433, 437, and 438 shall be the
-19-1valuation established for 1978, plus the amount of value added
2to the total actual value by the revaluation of the property
3by the department of revenue as of January 1, 1979. For
4valuations established as of January 1, 1980, property valued
5by the department of revenue pursuant to chapters 428, 433,
6437, and 438 shall be assessed at a percentage of its actual
7value. The percentage shall be determined by the director of
8revenue in accordance with the provisions of this section. For
9valuations established as of January 1, 1980, the percentage
10shall be the quotient of the dividend and divisor as defined in
11this section. The dividend shall be the total actual valuation
12established for 1979 by the department of revenue, plus eight
13percent of the amount so determined. The divisor for property
14valued by the department of revenue pursuant to chapters 428,
15433, 437, and 438 shall be the valuation established for 1979,
16plus the amount of value added to the total actual value by the
17revaluation of the property by the department of revenue as of
18January 1, 1980. For valuations established as of January 1,
191981, and each year thereafter, the percentage of actual value
20at which property valued by the department of revenue pursuant
21to chapters 428, 433, 437, and 438 shall be assessed shall be
22calculated in accordance with the methods provided herein,
23except that any references to ten percent in this subsection
24shall be eight percent. For valuations established on or after
25January 1, 2013, property valued by the department of revenue
26pursuant to chapter 434 shall be assessed at a percentage
27
 portion of its actual value equal to the percentage of actual
28value
 determined in the same manner at which property assessed
29as commercial property is assessed under paragraph “b” for the
30same assessment year.
   31b.  For valuations established on or after January 1, 2013,
32commercial property, excluding properties referred to in
33section 427A.1, subsection 9, shall be assessed at a percentage
34
 portion of its actual value, as determined in this paragraph
35“b”.
-20-
   1(1)  For valuations established for the assessment year
2beginning January 1, 2013, the percentage of actual value
3as equalized by the department of revenue as provided in
4section 441.49 at which commercial property shall be assessed
5shall be ninety-five percent. For valuations established
6for the assessment year beginning January 1, 2014, and each
7assessment year thereafter beginning before January 1, 2022,
8the percentage of actual value as equalized by the department
9of revenue as provided in section 441.49 at which commercial
10property shall be assessed shall be ninety percent.
   11(2)  For valuations established for the assessment year
12beginning January 1, 2022, and each assessment year thereafter,
13the portion of actual value at which each property unit of
14commercial property shall be assessed shall be the sum of the
15following:
   16(a)  An amount equal to the product of the assessment
17limitation percentage applicable to residential property under
18subsection 4 for that assessment year multiplied by the actual
19value of the property that exceeds zero dollars but does not
20exceed one hundred fifty thousand dollars.
   21(b)  An amount equal to ninety percent of the actual value of
22the property for that assessment year that exceeds one hundred
23fifty thousand dollars.
   24c.  For valuations established on or after January 1, 2013,
25industrial property, excluding properties referred to in
26section 427A.1, subsection 9, shall be assessed at a percentage
27
 portion of its actual value, as determined in this paragraph
28“c”.
   29(1)  For valuations established for the assessment year
30beginning January 1, 2013, the percentage of actual value
31as equalized by the department of revenue as provided in
32section 441.49 at which industrial property shall be assessed
33shall be ninety-five percent. For valuations established
34for the assessment year beginning January 1, 2014, and each
35assessment year thereafter beginning before January 1, 2022,
-21-1the percentage of actual value as equalized by the department
2of revenue as provided in section 441.49 at which industrial
3property shall be assessed shall be ninety percent.
   4(2)  For valuations established for the assessment year
5beginning January 1, 2022, and each assessment year thereafter,
6the portion of actual value at which each property unit of
7industrial property shall be assessed shall be the sum of the
8following:
   9(a)  An amount equal to the product of the assessment
10limitation percentage applicable to residential property under
11subsection 4 for that assessment year multiplied by the actual
12value of the property that exceeds zero dollars but does not
13exceed one hundred fifty thousand dollars.
   14(b)  An amount equal to ninety percent of the actual value of
15the property for that assessment year that exceeds one hundred
16fifty thousand dollars.
   17d.  For valuations established for the assessment year
18beginning January 1, 2019, and each assessment year thereafter,
19the percentages or portions of actual value at which property
20is assessed, as determined under this subsection, shall not be
21applied to the value of wind energy conversion property valued
22under section 427B.26 the construction of which is approved by
23the Iowa utilities board on or after July 1, 2018.
    24e.  (1)  For each fiscal year beginning on or after July 1,
252023, there is appropriated from the general fund of the state
26to the department of revenue the sum of one hundred twenty-five
27million dollars to be used for payments under this paragraph
28calculated as a result of the assessment limitations imposed
29under paragraph “b”, subparagraph (2), subparagraph division
30(a), and paragraph “c”, subparagraph (2), subparagraph division
31(a).
   32(2)  For fiscal years beginning on or after July 1, 2023,
33each county treasurer shall be paid by the department of
34revenue an amount calculated under subparagraph (4). If an
35amount appropriated for the fiscal year is insufficient to make
-22-1all payments as calculated under subparagraph (4), the director
2of revenue shall prorate the payments to the county treasurers
3and shall notify the county auditors of the pro rata percentage
4on or before September 30.
   5(3)  On or before July 1 of each fiscal year, the assessor
6shall report to the county auditor that portion of the total
7actual value of all commercial property and industrial property
8in the county that is subject to the assessment limitations
9imposed under paragraph “b”, subparagraph (2), subparagraph
10division (a), and paragraph “c”, subparagraph (2), subparagraph
11division (a), for the assessment year used to calculate the
12taxes due and payable in that fiscal year.
   13(4)  On or before September 1 of each fiscal year, the county
14auditor shall prepare a statement, based on the report received
15in subparagraph (3) and information transmitted to the county
16auditor under chapter 434, listing for each taxing district in
17the county:
   18(a)  The product of the portion of the total actual value
19of all commercial property, industrial property, and property
20valued by the department under chapter 434 in the county
21that is subject to the assessment limitations imposed under
22paragraph “b”, subparagraph (2), subparagraph division (a), and
23paragraph “c”, subparagraph (2), subparagraph division (a), for
24the applicable assessment year used to calculate taxes which
25are due and payable in the applicable fiscal year multiplied
26by the difference, stated as a percentage, between ninety
27percent and the assessment limitation percentage applicable
28to residential property under subsection 4 for the applicable
29assessment year.
   30(b)  The tax levy rate per one thousand dollars of assessed
31value for each taxing district for the applicable fiscal year.
   32(c)  The amount of the payment for each county is equal to
33the amount determined pursuant to subparagraph division (a),
34multiplied by the tax rate specified in subparagraph division
35(b), and then divided by one thousand dollars.
-23-
   1(5)  The county auditor shall certify and forward one copy of
2the statement described in subparagraph (4) to the department
3of revenue not later than September 1 of each fiscal year.
   4(6)  The amounts determined under this paragraph shall
5be paid by the department to the county treasurers in equal
6installments in September and March of each year. The county
7treasurer shall apportion the payments among the eligible
8taxing districts in the county and the amounts received by each
9taxing authority shall be treated the same as property taxes
10paid.
   11f.  For the purposes of this subsection, unless the context
12otherwise requires:
   13(1)  “Contiguous parcels” means any of the following:
   14(a)  Parcels that share a common boundary.
   15(b)  Parcels within the same building or structure
16regardless of whether the parcels share a common boundary.
   17(c)  Permanent improvements to the land that are situated
18on one or more parcels of land that are assessed and taxed
19separately from the permanent improvements if the parcels of
20land upon which the permanent improvements are situated share
21a common boundary.
   22(2)  “Parcel” means the same as defined in section 445.1.
23“Parcel” also means that portion of a parcel assigned a
24classification of commercial property or industrial property
25pursuant to section 441.21, subsection 14, paragraph “b”.
   26(3)  “Property unit” means a parcel or contiguous parcels
27all of which are located within the same county, with the same
28property tax classification, are owned by the same person, and
29are operated by that person for a common use and purpose.
30   Sec. 37.  Section 441.21, subsections 9 and 10, Code 2022,
31are amended to read as follows:
   329.  Not later than November 1, 1979, and November 1 of
33each subsequent year, the director shall certify to the
34county auditor of each county the percentages of actual
35value at which residential property, agricultural property,
-24-1commercial property, industrial property, property valued by
2the department of revenue pursuant to chapter 434, and property
3valued by the department of revenue pursuant to chapters 428,
4433, 437, and 438 in each assessing jurisdiction in the county
5shall be assessed for taxation, including for assessment years
6beginning on or after January 1, 2022, the percentages used to
7apply the assessment limitations under subsection 5, paragraphs
8“b” and “c”
. The county auditor shall proceed to determine
9the assessed values of agricultural property, residential
10property, commercial property, industrial property, property
11valued by the department of revenue pursuant to chapter 434,
12and property valued by the department of revenue pursuant to
13chapters 428, 433, 437, and 438 by applying such percentages
14to the current actual value of such property, as reported to
15the county auditor by the assessor, and the assessed values so
16determined shall be the taxable values of such properties upon
17which the levy shall be made.
   1810.  The percentage percentages of actual value computed
19by the department of revenue for agricultural property,
20residential property, commercial property, industrial property,
21property valued by the department of revenue pursuant to
22chapter 434, and property valued by the department of revenue
23pursuant to chapters 428, 433, 437, and 438, including for
24assessment years beginning on or after January 1, 2022, the
25percentages used to apply the assessment limitations under
26subsection 5, paragraphs “b” and “c”,
and used to determine
27assessed values of those classes of property does do not
28constitute a rule as defined in section 17A.2, subsection 11.
29   Sec. 38.  RETROACTIVE APPLICABILITY.  This division of this
30Act applies retroactively to assessment years beginning on or
31after January 1, 2022.
32DIVISION XII
33WAGE ASSIGNMENT NOTICE
34   Sec. 39.  Section 421.17B, subsection 3, paragraph a, Code
352022, is amended to read as follows:
-25-   1a.  (1)  The facility may proceed under this section only if
2twenty days’ notice of intent has been provided sent by regular
3mail to the last known address of the obligor, notifying
4the obligor that the obligor is subject to this section and
5the facility intends to use the process established in this
6section
. If the facility determines that collection of the
7debt may be in jeopardy, the facility may request that the
8employer deliver notice of the wage assignment simultaneously
9with the remainder of or in lieu of the obligor’s compensation
10due from the employer.
 The twenty days’ notice period shall
11not be required if the facility determines that the collection
12of past due amounts would be jeopardized.

   13(2)  The facility may obtain one or more wage assignments
14of an obligor who is subject to this section. If the obligor
15has more than one employer, the facility may receive wage
16assignments from one or more of the employers until the full
17debt obligation of the obligor is satisfied. If an obligor has
18more than one employer, the facility shall give notice to all
19employers from whom an assignment is sought.
20   Sec. 40.  Section 421.17B, subsection 3, paragraph b,
21unnumbered paragraph 1, Code 2022, is amended to read as
22follows:
   23 The facility shall notify an obligor subject to this section
24of the initiation of the wage assignment action.
The notice of
25initiation
from the facility to the obligor shall be sent by
26regular mail within two working days of sending the notice to
27the employer pursuant to subsection 6, paragraph “b”, and shall

28 contain all of the following:
29   Sec. 41.  Section 421.17B, subsection 4, Code 2022, is
30amended by adding the following new paragraph:
31   NEW PARAGRAPH.  c.  The facility may obtain multiple wage
32assignments of an obligor who is subject to this section. If
33the obligor has multiple employers, the facility may receive
34wage assignments from each employer until the full debt
35obligation of the obligor is satisfied. The facility shall
-26-1give notice to each employer when the facility is seeking a
2wage assignment.
3   Sec. 42.  Section 421.17B, subsection 6, paragraph b, Code
42022, is amended to read as follows:
   5b.  The To initiate a wage assignment, the facility shall
6send a notice to the employer within fourteen days of sending
7
 more than twenty days after the notice of the wage assignment
8
 intent to use the levy process is sent to the obligor pursuant
9to subsection 3, paragraph “a”
. The notice shall inform the
10employer of the amount to be assigned to the facility from each
11wage, salary, or payment period that is due the obligor. The
12facility may receive assignment of up to one hundred percent
13of the obligor’s disposable income, salary, or payment for any
14given period until the full obligation to the facility is paid
15in full.
16   Sec. 43.  Section 421.17B, subsection 9, paragraph a,
17unnumbered paragraph 1, Code 2022, is amended to read as
18follows:
   19A notice of wage assignment given sent to the obligor under
20this section
is effective without the serving of another notice
21until the earliest of either earlier of the following:
22DIVISION XIII
23OUT-OF-STATE RECIPROCAL COLLECTIONS
24   Sec. 44.  Section 421.24, Code 2022, is amended by striking
25the section and inserting in lieu thereof the following:
   26421.24  Reciprocal interstate enforcement.
   271.  For the purposes of this section, the terms “tax” and
28“taxes” include interest and penalties due under any taxing
29statute, and liability for interest or penalties, or both,
30due under a taxing statute of another state or a political
31subdivision of another state, and shall be recognized and
32enforced by the courts of this state to the same extent that
33the laws of the other state permit the enforcement of liability
34for interest or penalties, or both, due under a taxing statute
35of this state or a political subdivision of this state.
-27-
   12.  a.  The director of revenue shall have the authority
2to enter into an agreement with a department or agency of any
3other state for the department or agency of the other state to
4collect delinquent accounts, charges, fees, loans, taxes, or
5other indebtedness owed to, placed with, or being collected
6by the central debt collection facility of the department of
7revenue. The department may retain from the amounts collected
8a fee established by agreement with the department or agency
9of the other state.
   10b.  The director of revenue shall have the authority to
11enter into an agreement with a department or agency of any
12other state for the centralized debt collection facility to
13collect delinquent accounts, charges, fees, loans, taxes, or
14other indebtedness owed to, placed with, or being collected
15by the other state. The obligations or indebtedness of the
16other state referred to the facility must be delinquent and not
17subject to litigation, claim, appeal, or review pursuant to the
18appropriate remedies of the state. The department may retain
19from the amounts collected a fee established by agreement with
20the department or agency of the other state.
   21c.  Upon referral of a delinquent balance from the department
22or agency of another state pursuant to paragraph “b”, the
23department shall send written notification to the obligor by
24regular mail to the obligor’s last known mailing address. The
25notification shall contain an explanation of the balance owed,
26the department or agency to which the balance is owed, that the
27department has entered into an agreement to collect the balance
28owed, and the obligor’s opportunity to give written notice of
29intent to contest the department’s right to collect the amount
30owed.
   313.  a.  Challenges under this section may be initiated
32only by an obligor. The department’s review of its right to
33reciprocal collection is not subject to chapter 17A.
   34b.  The obligor challenging the reciprocal collection shall
35submit a written challenge in the manner provided in the notice
-28-1described in subsection 2, paragraph “c”, within fifteen days of
2the date of the notice.
   3c.  The department, upon receipt of a written challenge,
4shall provide written notice of the challenge to the referring
5department or agency. The department shall review the
6information provided by the referring department or agency and
7shall obtain additional information if necessary to establish
8that the liability is delinquent and not subject to appeal, or
9to verify the identity of the obligor or the amount owed. The
10department shall set a time to occur within ten days of receipt
11of the challenge to review the relevant facts of the challenge
12with the obligor. An alternative time may be set at the
13request of the obligor. If the obligor does not participate in
14the review at the scheduled time and an alternative time is not
15requested and approved, the review shall take place without the
16obligor being present. Only a determination that the referred
17liability is not delinquent or is subject to challenge or a
18mistake of fact, including a mistake in the identity of the
19obligor, or a mistake in the amount owed, shall be considered
20as a reason to reject the referred liability.
   21d.  If the department determines that a mistake of fact
22has occurred or that the liability is not delinquent or is
23subject to challenge, the department shall reject referral of
24the liability and shall take no further action to collect the
25liability.
   26e.  If the department finds no mistake of fact and that
27the liability is delinquent and not subject to challenge,
28the department shall deny the challenge and provide a notice
29of that effect to the obligor and may proceed to collect the
30balance owed.
   314.  a.  At the request of the director the attorney general
32may bring suit in the name of this state, in the appropriate
33court of any other state to collect any tax legally due in
34this state, and any political subdivision of this state or the
35appropriate officer, acting in its behalf, may bring suit in
-29-1the appropriate court of any other state to collect any tax
2legally due to such political subdivision.
   3b.  The courts of this state shall recognize and enforce
4liabilities for taxes lawfully imposed by any other state, or
5any political subdivision of the other state, which extends
6a like comity to this state, and the duly authorized officer
7of any such state or a political subdivision of such state may
8sue for the collection of such tax in the courts of this state.
9A certificate by the secretary of state of such other state
10that an officer suing for the collection of such a tax is duly
11authorized to collect the same shall be conclusive proof of
12such authority.
   13c.  The courts of this state shall not enforce interest
14rates or penalties on taxes of any other state which exceed the
15interest rates and penalties imposed by the state of Iowa for
16the same or a similar tax.
   175.  Thirty days following the mailing of notice pursuant
18to subsection 2, paragraph “c”, if no written challenge is
19received, or upon the department providing notice of denial
20of a challenge pursuant to subsection 3, paragraph “e”, any
21tax amount referred to the facility under subsection 2 shall
22be treated as the equivalent of individual income tax that is
23final, due and payable, and may be collected in any manner
24authorized under the law for collection of a delinquent tax
25liability, including but not limited to the recording of a
26notice of state tax lien or issuance of a distress warrant.
   276.  The department may release information otherwise
28confidential under section 422.20 or 422.72 to the department
29or agency of the other state, provided the department or agency
30of the other state agrees to keep such information confidential
31as defined by Iowa law. An employee or contractor of the
32department or agency of the other state shall not be required
33to complete the confidentiality training or acknowledgment
34requirements of the department.
35DIVISION XIV
-30-1PASS-THROUGH ENTITY TAXATION
2   Sec. 45.  Section 422.25A, subsection 3, Code 2022, is
3amended to read as follows:
   43.  State partnership pass-through representative.
  5Notwithstanding any other law to the contrary, the state
6partnership pass-through representative for the reviewed
7year shall have the sole authority to act on behalf of
8the partnership or pass-through entity with respect to an
9action required or permitted to be taken by a partnership or
10pass-through entity under this section or section 422.28 or
11422.29 with respect to final federal partnership adjustments
12arising from a partnership level audit or an administrative
13adjustment request, and its direct partners and indirect
14partners shall be bound by those actions.
15   Sec. 46.  Section 422.25A, subsection 4, paragraph a,
16subparagraph (3), Code 2022, is amended to read as follows:
   17(3)  File an amended composite return under section 422.13,
18Code 2021, or under section 422.16B, as applicable,
if one
19was originally required to be filed, and if applicable for
20withholding from partners, file an amended withholding report
21under section 422.16, Code 2021, and pay the additional amount
22under this title that would have been due had the final federal
23partnership adjustments been reported properly as required,
24including any applicable interest and penalties.
25   Sec. 47.  Section 422.25A, subsection 4, paragraph b,
26subparagraph (3), Code 2022, is amended to read as follows:
   27(3)  If the direct partner is a tiered partner and subject to
28section 422.13, Code 2021, or section 422.16B, file an amended
29composite return under section 422.13, Code 2021, or under
30section 422.16B, as applicable,
if such return was originally
 31required to be filed, and if applicable for withholding from
32partners file an amended withholding report under section
33422.16, Code 2021, if one was originally required to be filed.
34   Sec. 48.  Section 422.25A, subsection 4, paragraph c,
35subparagraph (3), Code 2022, is amended to read as follows:
-31-   1(3)  Within ninety days after the time for filing and
2furnishing statements to tiered partners and their partners as
3established by section 6226 of the Internal Revenue Code and
4the regulations thereunder, if the indirect partner is a tiered
5partner and subject to section 422.13, Code 2021, or section
6422.16B
, file an amended composite return under section 422.13,
7Code 2021, or under section 422.16B, as applicable,
if such
8return was originally required to be filed, and if applicable
9for withholding from partners, file an amended withholding
10report under section 422.16, Code 2021, if one was originally
11required to be filed.
12   Sec. 49.  Section 422.25A, subsection 5, paragraph c,
13subparagraph (6), subparagraph division (a), Code 2022, is
14amended to read as follows:
   15(a)  Total the amounts computed pursuant to subparagraphs
16(2) through (5) and calculate any interest and penalty as
17provided under this title. Notwithstanding any provision of
18law to the contrary, interest and penalties on the amount due
19by the audited partnership or tiered partner shall be computed
20from the day after the due date of the reviewed year return
21without extension, and shall be imposed as if the audited
22partnership or tiered partner was required to pay tax or show
23tax due on the original return for the reviewed year, except
24that a specified business subject to the penalty in section
25421.27, subsection 1, paragraph “b”, for the reviewed year
26shall not also be subject to the penalty in section 421.27,
27subsection 1, paragraph “a”, on the amount due for that reviewed
28year pursuant to the election to pay
.
29   Sec. 50.  Section 422.25B, Code 2022, is amended to read as
30follows:
   31422.25B  State partnership pass-through representative.
   321.  As used in this section, all words and phrases defined
33in section 422.25A shall have the same meaning given them by
34that section.
   352.  The state partnership pass-through representative for
-32-1the reviewed year for a partnership shall be the partnership’s
2federal partnership representative with respect to an action
3required or permitted to be taken by a state partnership
4
 pass-through representative under this chapter for a reviewed
5year, unless the partnership designates in writing another
6person as the state partnership pass-through representative as
7provided in subsection 3. The state partnership pass-through
8 representative for the reviewed year for a pass-through entity
9is the person designated in subsection 3.
   103.  The department may establish reasonable qualifications
11for a person to be a state partnership pass-through
12 representative. If a partnership desires to designate a
13person other than the federal partnership representative, the
14partnership shall designate such person in the manner and
15form prescribed by the department. A pass-through entity
16shall designate a person as the state partnership pass-through
17 representative in the manner and form prescribed by the
18department. A partnership or pass-through entity shall be
19allowed to change such designation by notifying the department
20at the time the change occurs in the manner and form prescribed
21by the department.
   224.  The department may adopt any rules pursuant to chapter
2317A to implement this section.
24   Sec. 51.  Section 422.25C, subsections 2 and 3, Code 2022,
25are amended to read as follows:
   262.  For tax years beginning on or after January 1, 2020, any
27adjustments to a partnership’s or pass-through entity’s items
28of income, gain, loss, expense, or credit, or an adjustment to
29such items allocated to a partner that holds an interest in a
30partnership or pass-through entity for the reviewed year by
31the department as a result of a state partnership audit, shall
32be determined at the partnership level or pass-through entity
33level in the same manner as provided by section 6221(a) of the
34Internal Revenue Code and the regulations thereunder unless a
35different treatment is specifically provided in this title.
-33-1The provisions of sections 6222, 6223, and 6227 of the Internal
2Revenue Code and the regulations thereunder shall also apply to
3a partnership or pass-through entity and its direct or indirect
4partners in the same manner as provided in such sections unless
5a different treatment is specifically provided in this title.
6For purposes of applying such sections, due account shall be
7made for differences in federal and Iowa terminology. The
8adjustment provided by section 6221(a) of the Internal Revenue
9Code shall be determined as provided in such section but shall
10be based on Iowa taxable income or other tax attributes of
11the partnership or pass-through entity as determined pursuant
12to this chapter for the reviewed year. The department shall
13issue a notice of adjustment to the partnership or pass-through
14entity. Such notice shall be treated as an assessment for
15the purposes of section 422.25, and the notice shall be
16appealable by the partnership or pass-through entity pursuant
17to sections 422.28 and 422.29 and shall be issued within the
18time period provided by section 422.25. Once the adjustments
19to partnership-related or pass-through entity-related items or
20reallocations of income, gains, losses, expenses, credits, and
21other attributes among such partners for the reviewed year are
22finally determined, the partnership or pass-through entity and
23any direct partners or indirect partners shall then be subject
24to the provisions of section 422.25, subsection 1, paragraph
25“e”, and section 422.25A in the same manner as if the state
26partnership audit were a federal partnership level audit, and
27as if the final state partnership audit adjustment were a final
28federal partnership adjustment. The penalty exceptions in
29section 421.27, subsection 2, paragraphs “b” and “c”, shall not
30apply to a state partnership audit.
   313.  The state partnership pass-through representative for
32the reviewed year as determined under section 422.25B shall
33have the sole authority to act on behalf of the partnership
34or pass-through entity with respect to an action required or
35permitted to be taken by a partnership or pass-through entity
-34-1under this section, including proceedings under section 422.28
2or 422.29, and the partnership’s or pass-through entity’s
3direct partners and indirect partners shall be bound by those
4actions.
5   Sec. 52.  COMPOSITE RETURN UNUSED TAX CREDIT CARRYFORWARDS
6FROM TAX YEAR 2021.
  Notwithstanding any other provision
7of law to the contrary, if a pass-through entity filing
8composite returns under section 422.13, subsection 5, Code
92021, has a nonrefundable income tax credit carryforward amount
10attributable to the composite return following the close of
11the entity’s composite return tax year that began during the
122021 calendar year, the pass-through entity may allocate those
13income tax credit carryforward amounts to the pass-through
14entity’s partners, members, beneficiaries, or shareholders in
15the pass-through entity’s tax year that begins during the 2022
16calendar year, in the amount designated by the pass-through
17entity and in the manner and form prescribed by the department
18of revenue. The income tax credit shall be the same in the
19hands of the partner, member, beneficiary, or shareholder as in
20the pass-through entity, and may be claimed for any tax year
21that the pass-through entity could have claimed the tax credit.
22   Sec. 53.  EFFECTIVE DATE.  The following, being deemed of
23immediate importance, takes effect upon enactment:
   24The section of this division of this Act amending section
25425.25A, subsection 5, paragraph “c”, subparagraph (6),
26subparagraph division (a).
27   Sec. 54.  RETROACTIVE APPLICABILITY.  The following applies
28retroactively to January 1, 2022, for tax years beginning on
29or after that date:
   30The section of this division of this Act amending section
31425.25A, subsection 5, paragraph “c”, subparagraph (6),
32subparagraph division (a).
33DIVISION XV
34INHERITANCE TAX — UNKNOWN HEIRS
35   Sec. 55.  Section 450.93, Code 2022, is amended to read as
-35-1follows:
   2450.93  Unknown heirs.
   31.  Whenever For a decedent dying before January 1, 2021,
4whenever
the heirs or persons entitled to any estate or any
5interest therein are unknown or their place of residence
6cannot with reasonable certainty be ascertained, a tax of five
7percent shall be paid to the department of revenue upon all
8such estates or interests, subject to refund as provided herein
9in other cases; provided, however, that if it be afterwards
10determined that any estate or interest passes to aliens, there
11shall be paid within sixty days after such determination and
12before delivery of such estate or property, an amount equal to
13the difference between five percent, the amount paid, and the
14amount which such person should pay under the provisions of
15this chapter.
   162.  a.  For a decedent dying on or after January 1, 2021,
17but before January 1, 2022, the tax imposed in subsection 1
18shall be reduced by twenty percent, and rounded to the nearest
19one-hundredth of one percent.
   20b.  For a decedent dying on or after January 1, 2022,
21but before January 1, 2023, the tax imposed in subsection 1
22shall be reduced by forty percent, and rounded to the nearest
23one-hundredth of one percent.
   24c.  For a decedent dying on or after January 1, 2023,
25but before January 1, 2024, the tax imposed in subsection 1
26shall be reduced by sixty percent, and rounded to the nearest
27one-hundredth of one percent.
   28d.  For a decedent dying on or after January 1, 2024, but
29before January 1, 2025, the tax imposed in subsection 1 shall
30be reduced by eighty percent, and rounded to the nearest
31one-hundredth of one percent.
   323.  For a decedent dying on or after January 1, 2025, the tax
33in subsection 1 shall not be imposed.
34   Sec. 56.  RETROACTIVE APPLICABILITY.  This division of this
35Act applies retroactively to January 1, 2021.
-36-
1DIVISION XVI
2NOTICE REQUIREMENTS FOR PUBLICATION OF INTEREST RATES
3   Sec. 57.  Section 421.7, subsection 6, Code 2022, is amended
4to read as follows:
   56.  In November of each year the director shall cause an
6advisory notice to be published in the Iowa administrative
7bulletin and in a newspaper of general circulation in this
8state
 on the internet site of the department, stating the
9rate of interest to be in effect on or after January 1 of
10the following year, as established by this section. The
11calculation and publication of the rate of interest by the
12director is exempt from chapter 17A.
13DIVISION XVII
14PROPERTY ASSESSMENT APPEAL BOARD — SALARIES
15   Sec. 58.  Section 421.1A, subsection 6, Code 2022, is amended
16to read as follows:
   176.  The members of the property assessment appeal board shall
18receive a salary set by the governor within a range established
19by the general assembly
 and commensurate with the salary of an
20administrative law judge
. The members of the board shall be
21considered state employees for purposes of salary and benefits.
22The members of the board and any employees of the board, when
23required to travel in the discharge of official duties, shall
24be paid their actual and necessary expenses incurred in the
25performance of duties.
26   Sec. 59.  2008 Iowa Acts, chapter 1191, section 14,
27subsection 5, as amended by 2013 Iowa Acts, chapter 123,
28section 63, 2018 Iowa Acts, chapter 1163, section 8, and 2018
29Iowa Acts, chapter 1165, section 81, is amended to read as
30follows:
   315.  The following are range 5 positions: administrator of
32the division of homeland security and emergency management of
33the department of public defense, state public defender, drug
34policy coordinator, labor commissioner, workers’ compensation
35commissioner, director of the department of cultural affairs,
-37-1director of the department of elder affairs, director of the
2law enforcement academy, members of the property assessment
3appeal board,
executive director of the department of veterans
4affairs, and administrator of the historical division of the
5department of cultural affairs.
6   Sec. 60.  APPLICABILITY.  This division of this Act applies
7to fiscal years beginning on or after July 1, 2022, effective
8with the pay period beginning June 24, 2022, and subsequent pay
9periods.
10DIVISION XVIII
11DUE DATES — HOLIDAYS
12   Sec. 61.  Section 421.9, subsection 2, Code 2022, is amended
13to read as follows:
   142.  The office of the department shall be maintained at the
15seat of government in this state. The department shall be
16deemed to be in continuous session and open for the transaction
17of business except Saturdays, Sundays, and legal holidays
18
 Saturday, Sunday, and a holiday. The director of revenue may
19hold sessions in conducting investigations any place within the
20state when necessary to facilitate and render more thorough
21the performance of the director’s duties. As used in this
22section, “holiday” means the same as defined in section 421.9A,
23subsection 1, paragraph “b”, or a date when the office is
24otherwise closed pursuant to section 4.1, subsection 34.

25   Sec. 62.  NEW SECTION.  421.9A  Due dates and holidays.
   261.  As used in this section, “holiday” means any of the
27following:
   28a.  A legal public holiday as described in section 1C.l.
   29b.  A paid holiday as described in section 1C.2, subsection
301, and subsection 2, paragraph “b”.
   31c.  A federal holiday observed by the United States postal
32service.
   33d.  A banking holiday observed by the federal reserve.
   34e.  A date when the office of the department is otherwise
35closed pursuant to section 4.1, subsection 34.
-38-
   12.  When the due date for filing a return or other document
2with the department or the due date for the department to take
3any action falls on a Saturday, Sunday, or any holiday, the act
4is considered to be performed timely if the act is performed
5on or before the first business day following the Saturday,
6Sunday, or holiday.
7   Sec. 63.  Section 421.17A, subsection 1, paragraph g, Code
82022, is amended to read as follows:
   9g.  “Working days” means Monday through Friday, excluding the
10holidays specified in section 1C.2, subsection 1
 a holiday as
11defined in section 421.9A
.
12   Sec. 64.  Section 423.50, subsections 4 and 5, Code 2022, are
13amended by striking the subsections.
14   Sec. 65.  Section 452A.61, subsection 1, Code 2022, is
15amended to read as follows:
   161.  The reports, returns, and remittances required under
17this chapter shall be deemed filed within the required time
18if postpaid, properly addressed, and postmarked on or before
19midnight of the day on which due and payable. If the final
20filing date falls on a Saturday, Sunday, or legal holiday the
21next secular or business day shall be the final filing date.
22   Sec. 66.  Section 452A.61, Code 2022, is amended by adding
23the following new subsection:
24   NEW SUBSECTION.  3.  As used in this section, “holiday” means
25the same as defined in section 421.9A.
26   Sec. 67.  Section 453A.10, Code 2022, is amended to read as
27follows:
   28453A.10  Affixing of stamps by distributors.
   29Except as provided in section 453A.17, every distributor
30holding an Iowa permit shall cause to be affixed, within or
31without the state of Iowa, upon every individual package of
32cigarettes received by the distributor in this state or for
33distribution in this state, upon which no sufficient tax
34stamp is already affixed, a stamp or stamps of an amount
35equal to the tax due thereon. Such stamps shall be affixed
-39-1within forty-eight hours, exclusive of Sundays and legal
2holidays
 a Sunday or a holiday, from the hour the cigarettes
3were received, and shall be affixed before such distributor
4sells, offers for sale, consumes, or otherwise distributes or
5transports the same. It shall be unlawful for any person,
6other than a distributing agent or distributor, bonded pursuant
7to section 453A.14, or common carrier to receive or accept
8delivery of any cigarettes without stamps affixed to evidence
9the payment of the tax, or without having in possession the
10requisite amount or number of stamps necessary to stamp such
11cigarettes, and the possession of any unstamped cigarettes,
12without the possession of the requisite amount or number of
13stamps, shall be prima facie evidence of the violation of this
14provision. As used in this section, “holiday” means the same
15as defined in section 421.9A.

16   Sec. 68.  Section 453A.14, subsection 3, Code 2022, is
17amended to read as follows:
   183.  An additional bond or a new bond may be required by the
19director at any time an existing bond becomes insufficient or
20the surety thereon becomes unsatisfactory, which additional
21bond, or new bond, shall be supplied within ten days after
22demand. On failure to supply a new bond or additional bond
23within ten days after demand, the director may cancel any
24existing bond made and secured by and for the person. If the
25bond is canceled the person shall within forty-eight hours
26after receiving cigarettes or forty-eight hours after the
27cancellation, excluding Sundays and legal holidays a Sunday
28or a holiday
, cause any cigarettes in the person’s possession
29to have the requisite amount of stamps affixed to represent
30the tax. As used in this section, “holiday” means the same as
31defined in section 421.9A.

32DIVISION XIX
33AVIATION FUEL AND MOTOR FUEL REFUNDS
34   Sec. 69.  Section 452A.82, Code 2022, is amended to read as
35follows:
-40-   1452A.82  Aviation fuel tax fund.
   2The portion of the moneys collected under this chapter
3received on account of aviation gasoline and special fuel
4used in aircraft, less refunds issued on account of aviation
5gasoline and special fuel used in aircraft,
shall be deposited
6in a separate fund to be maintained by the treasurer. All
7moneys remaining in the separate fund after the cost of
8administering the fund has been paid shall be credited to the
9state aviation fund created in section 328.56.
10   Sec. 70.  Section 452A.84, subsections 1 and 2, Code 2022,
11are amended to read as follows:
   121.  Determine monthly the total amount of motor fuel tax
13collected under this chapter, less refunds for motor fuel tax,
14 and multiply the amount by nine-tenths of one percent.
   152.  Subtract from the figure computed pursuant to
16subsection 1 of this section three percent of the figure for
17administrative costs and further subtract from the figure the
18amounts refunded to commercial fishers pursuant to section
19452A.17, subsection 1, paragraph “a”, subparagraph (7). All
20moneys remaining after claims for refund and the cost of
21administration have been made
shall be transferred to the
22marine fuel tax fund.
23DIVISION XX
24INHERITANCE TAX REPEAL — SUBMISSION OF PROPOSED CODE CHANGES
25   Sec. 71.  2021 Iowa Acts, chapter 177, section 14, is amended
26to read as follows:
   27SEC. 14.  DEPARTMENT OF REVENUE.  The department of revenue
28is directed to review references to Code chapters 450 and 450B
29and submit proposed corrections to such references in bill form
30to the general assembly by the 2022 2024 regular session of the
31eighty-ninth ninetieth general assembly.
32EXPLANATION
33The inclusion of this explanation does not constitute agreement with
34the explanation’s substance by the members of the general assembly.
   35This bill relates to state and local finances and the duties
-41-1and procedures of the department of revenue by providing for
2electronic filing, communications, and records, modifying
3transfer tax remittances, the assessment of property, the
4collection of debt, and the taxation of pass-through entities,
5reducing inheritance taxes for unknown heirs, and establishing
6salaries.
   7DIVISION I — RECORD RETENTION. Currently, the director of
8the department of revenue (DOR) may destroy useless records of
9any taxpayer filed with or kept by the department. The bill
10specifies that the director of revenue (director) shall destroy
11useless records by the end of the calendar year following the
12year in which the records are determined to be useless. The
13bill permits a taxpayer or the DOR to request the director
14retain a useless record under certain circumstances. The
15bill also permits DOR to retain some records if personally
16identifiable information has been removed, or the records are
17related to a rule, statement of law or policy, or a final
18order, decision, or opinion.
   19The bill allows DOR to make electronic copies of records or
20use other methods to make such copies.
   21The division takes effect January 1, 2025.
   22DIVISION II — ELECTRONIC FILING — FIDUCIARIES — BUSINESS
23ENTITIES. The bill requires a fiduciary to file an electronic
24return under any of the following certain circumstances: the
25individual, estate, or trust has gross receipts of $250,000 or
26more; the fiduciary is required to provide 10 or more schedules
27K-1 to the beneficiaries; or the fiduciary reports $25,000 or
28more of Iowa tax credits.
   29The bill requires a partnership to file an electronic return
30under any of the following circumstances: the partnership has
31gross receipts of $250,000 or more; the partnership is required
32to provide 10 or more schedules K-1 to the partners; or the
33partnership reports $25,000 or more of Iowa tax credits.
   34If a pass-through entity that is required to file a composite
35return is required to file an electronic return under section
-42-1422.14, 422.15, or 422.36, the bill requires the pass-through
2entity to file the composite return of the pass-through entity
3in an electronic format for the same taxable year. A composite
4return generally is a return filed by a pass-through entity
5that reports the state income of all nonresident owners.
   6The bill requires a corporation to file an electronic return
7if the corporation has gross receipts of $250,000 or more, or
8the corporation reports $25,000 or more of Iowa tax credits, or
9in the case of an S corporation, the corporation is required to
10issue 10 or more schedules K-1 to the shareholders.
   11The bill requires an affiliated group of corporations to
12file an electronic return regardless of the amount of gross
13receipts of the affiliated group or Iowa tax credits claimed.
   14The bill requires a financial institution (bank) to file an
15electronic return under any of the following circumstances:
16the financial institution has gross receipts of $250,000 or
17more; the financial institution reports $25,000 or more of Iowa
18tax credits, or in the case of an S corporation, the financial
19institution is required to issue 10 or more schedules K-1 to
20the shareholders.
   21The division applies to tax years ending on or after December
2231, 2022, for a partnership, pass-through entity, corporation,
23and financial institution, and applies to tax years ending on
24or after December 31, 2023, for a fiduciary, or for tax years
25ending on or after December 31 of the calendar year in which
26the department implements a system for receiving the electronic
27returns required by the division.
   28DIVISION III — ELECTRONIC FILING — CREDIT UNIONS. The
29bill requires a credit union to file a return in an electronic
30format specified by DOR.
   31The division applies to tax years ending on or after December
3231, 2024, or for tax years ending on or after December 31 of the
33calendar year in which the department implements a system for
34receiving the electronic returns required by the division.
   35DIVISION IV — AUTHORITY TO CHARGE FEES. The bill specifies
-43-1DOR may charge a fee for a copy of a return. The fee may be
2established by rule.
   3The bill also specifies that this division shall not be
4construed to prohibit DOR from charging a fee for a copy of
5a return prior to the enactment of the division pursuant to
6another authority of DOR.
   7DIVISION V — AUTHORITY TO ACT ON BEHALF OF TAXPAYER. The
8bill strikes and replaces provisions relating to the authority
9to act on behalf of a business entity, and specifies that such
10a person must be designated to act on behalf of the business
11entity in tax matters.
   12The bill specifies DOR may authorize a trustee to have
13authority to act on behalf of a taxpayer, if the trustee
14complies with certain conditions requested by DOR including but
15not limited to providing a certification of trust or providing
16a copy of the trust agreement.
   17The bill specifies DOR may authorize a person named as an
18agent in a general or durable power of attorney document that
19is currently in force.
   20The bill specifies DOR may authorize a person named as a
21successor, as defined in Code section 633.256, of a very small
22estate to act on behalf of the taxpayer.
   23The bill requires a person acting on behalf of a taxpayer to
24certify that the person possesses actual authority to act on
25behalf of the entity in tax matters.
   26The bill allows DOR to require any documents or other
27evidence to demonstrate an individual has authority to act on
28behalf of the taxpayer before DOR.
   29DIVISION VI — ELECTRONIC COMMUNICATION. Under the
30bill, DOR may permit a person to elect to receive a notice,
31correspondence, or other communication electronically.
   32If a person makes an election to receive an electronic
33communication, the posting of the electronic communication
34to the electronic portal of DOR satisfies any requirement of
35mailing or personal service in title X (financial resources),
-44-1Code chapter 272D (debt owed state or local government), or
2Code sections 321.105A (fee for new registration) and 533.329
3(taxation of credit unions).
   4The bill allows DOR to send any notice, correspondence, or
5other communication by mail to a person who has elected to
6receive an electronic communication.
   7DIVISION VII — INCOME STATEMENTS TO BE PROVIDED TO
8THE DEPARTMENT. The bill updates and amends Code section
9422.16(10)(a) relating to the penalties for willful violations
10of the following: failure to furnish an employee with an
11income statement; furnishing a false or fraudulent income
12statement to an employee; failure to file an income statement
13with DOR; filing a false or fraudulent income statement with
14DOR; failure to file an annual reporting of taxes withheld with
15DOR; and filing a false or fraudulent annual reporting of taxes
16withheld with DOR. Under the bill and in current law, each
17violation is punishable by a $500 civil penalty.
   18The bill amends Code section 422.16(10)(b) to specify that a
19person, withholding agent, or other person required to file a
20withholding return shall be subject to the penalties provided
21in Code section 421.27 in addition to the tax or additional tax
22due.
   23The bill provides that the director may allow additional
24time for the filing of documents required by section 422.16
25(withholding income tax) in the case of illness, disability,
26absence, or if good cause is shown.
   27DIVISION VIII — REMITTANCES OF TRANSFER TAX. Currently,
28the county recorder remits the real estate transfer tax to
29the treasurer of state. The bill changes the remittances
30of the transfer tax by the county recorder and requires the
31remittances of the transfer tax by the county recorder be made
32to the department of revenue.
   33DIVISION IX — BOARD OF REVIEW ELIGIBILITY. The bill amends
34Code section 441.32 relating to the removal of a member of a
35board of review by specifying that if a board member is removed
-45-1under that Code section, the board member shall not be eligible
2for appointment to a board of review in this state for six
3years following the date of the removal.
   4DIVISION X — EQUALIZATION ADJUSTMENTS — APPEALS. The
5bill amends Code section 441.48 to provide that, in addition
6to the board of supervisors or the city council, a city or
7county attorney or other official of the county or assessing
8jurisdiction may provide written notice of intent to appeal
9an equalization to the department of revenue. The bill also
10requires the written notice of appeal to be provided within
1110 days of the notice provided by the department of revenue.
12Upon receiving a timely notice of intent to appeal, the bill
13requires the department to schedule a hearing on the proposed
14adjustment with the county or assessing jurisdiction and
15specifies the allowable formats for the hearing or written
16presentation of the appeal. The bill specifies that appeals of
17a proposed adjustment are not subject to Code chapter 17A.
   18DIVISION XI — BUSINESS PROPERTY TAX CREDIT AND ASSESSMENT
19LIMITATION. Code chapter 426C provides a business property tax
20credit for commercial, industrial, and railway property for
21property taxes due and payable in fiscal years beginning on or
22after July 1, 2014. The business property tax credit is funded
23from an annual standing appropriation of $125 million.
   24The bill eliminates the annual appropriation for the
25business property tax credit under Code section 426C.2 for
26fiscal years beginning on or after July 1, 2023, and provides
27that moneys remaining in the business property tax credit fund
28at the end of the fiscal year beginning July 1, 2022, shall be
29transferred by the department of revenue for deposit in the
30general fund of the state. The bill also establishes a future
31repeal date for Code chapter 426C of July 1, 2024.
   32Current Code section 441.21 imposes an assessment limitation
33(rollback) on commercial property, industrial property,
34and property valued by the department of revenue under Code
35chapter 434 (railway company property) of 90 percent for
-46-1assessment years beginning on or after January 1, 2014. The
2bill modifies the amount and methodology for calculating the
3assessment limitation for property units, as defined in the
4bill, within those classifications of property. Instead of a
5uniform percentage of value, for valuations established for the
6assessment year beginning January 1, 2022, and each assessment
7year thereafter, the portion of actual value at which each
8property unit of commercial property shall be assessed shall be
9the sum of the following: (1) an amount equal to the product of
10the assessment limitation percentage applicable to residential
11property multiplied by the actual value of the property that
12exceeds $0 but does not exceed $150,000; and (2) an amount
13equal to 90 percent of the actual value of the property
14for that assessment year that exceeds $150,000. The bill
15establishes a similar provision for industrial property and
16provides that the assessed value of railway company property
17shall be determined in the same manner as commercial property.
   18The bill also establishes an annual payment to local
19governments based on the modified assessment limitations
20imposed on that portion of the value of commercial and
21industrial properties that does not exceed $150,000. For
22each fiscal year beginning on or after July 1, 2023, there
23is appropriated from the general fund of the state to the
24department of revenue the sum of $125 million to be used for
25such payments. If an amount appropriated for a fiscal year
26is insufficient to make all payments, the director of revenue
27shall prorate the payments to the county treasurers.
   28DIVISION XII — WAGE ASSIGNMENT NOTICE. The bill modifies
29Code section 421.17B (administrative wage assignment
30cooperative agreement). Under the bill, the centralized
31debt collection facility (facility) within the department of
32revenue may proceed against an obligor if a 20 days’ notice
33of intent has been sent to the obligor notifying the obligor
34the facility intends to begin a wage assignment action. The
35bill specifies the 20 days’ notice period does not apply if the
-47-1facility determines the collection of past due amounts would
2be in jeopardy. After the 20 days’ notice period has run,
3the bill requires the facility to notify the obligor of the
4initiation of the wage assignment action within two working
5days of sending the notice to the obligor’s employer, and the
6facility may obtain multiple wage assignments, if the obligor
7has multiple employers.
   8DIVISION XIII — OUT-OF-STATE RECIPROCAL COLLECTIONS. The
9bill modifies provisions related to out-of-state reciprocal
10debt collections. Currently, the provisions are limited to
11the collection of out-of-state tax debt. The bill expands
12the types of debt the director is able to collect, and allows
13the director to enter into an agreement with a department in
14another state to collect the debts being collected by DOR. The
15bill allows the director to enter into agreements to collect
16the debts of another state through DOR. The bill requires the
17out-of-state debt being collected by DOR to be delinquent and
18not subject to litigation prior to accepting the collection on
19such debt.
   20The bill establishes procedures to collect out-of-state debt
21including procedures for challenging the collection of such
22debt. The bill allows DOR to collect a fee from the amount of
23out-of-state debt collected.
   24The bill specifies the DOR may release taxpayer information
25that otherwise would be confidential when working with an
26out-of-state department or agency, provided the out-of-state
27department or agency complies with Iowa confidentiality law.
   28DIVISION XIV — PASS-THROUGH ENTITY TAXATION. The bill
29changes the term “state partnership representative” to “state
30pass-through representative” numerous times.
   31The bill modifies certain penalties for pass-through
32entities that fail to timely file an income return. The
33provision takes effect upon enactment and applies retroactively
34to tax years beginning on or after January 1, 2022.
   35The bill permits a pass-through entity filing a composite
-48-1return that has a nonrefundable income tax credit carryforward
2amount attributable to the composite return following the
3close of the entity’s composite return for the tax year that
4began during the 2021 calendar year to allocate those income
5tax credit carryforward amounts to the pass-through entity’s
6partners, members, beneficiaries, or shareholders in the
7pass-through entity’s tax year that begins during the 2022
8calendar year.
   9DIVISION XV — INHERITANCE TAX — UNKNOWN HEIRS. Currently,
10if an heir entitled to an estate interest cannot be found,
11a tax of 5 percent is paid to the state, until the heir is
12found, and at such time the correct amount of inheritance tax
13is recomputed and paid to the state. The bill reduces the
14inheritance tax on an unknown heir on the same percentage basis
15the inheritance tax is being reduced in Code section 450.10.
16The inheritance tax is set to be repealed for decedents dying
17on or after January 1, 2025.
   18The division applies retroactively to January 1, 2021.
   19DIVISION XVI — NOTICE REQUIREMENTS FOR PUBLICATION OF
20INTEREST RATES. The bill strikes a provision requiring the
21director to publish the rate of interest in a newspaper, and
22substitutes this requirement by allowing for the publication of
23interest rates on the internet site of DOR.
   24DIVISION XVII — PROPERTY ASSESSMENT APPEAL BOARD —
25SALARIES. The general assembly periodically establishes salary
26ranges for certain appointed state officers and authorizes a
27person (generally the governor) to establish the salaries of
28those state officers. In 2013, the general assembly amended
29the most recent salary range legislation (2008 Iowa Acts,
30chapter 1191) to add members of the property assessment appeal
31board to salary range 5 ($73,250 to $112,070). The bill
32removes members of the property assessment appeal board from
33the most recent salary range and provides that the salaries of
34such members shall be set by the governor and be commensurate
35with the salary of an administrative law judge.
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   1DIVISION XVIII — DUE DATES — HOLIDAYS. The bill creates
2new Code section 421.9A that establishes more uniformity for
3references to due dates and holidays of DOR and makes related
4conforming changes.
   5DIVISION XIX — AVIATION AND MARINE FUEL — CALCULATIONS.
6 The bill specifies the calculations to be used to calculate
7the amounts to be deposited into the aviation and marine fuel
8funds.
   9DIVISION XX — INHERITANCE TAX REPEAL — SUBMISSION OF
10PROPOSED CODE CHANGES. The bill delays by two years the due
11date of the proposed bill DOR must submit to the general
12assembly for Code updates relating to the inheritance tax
13repeal. The bill is now required to be submitted to the
14general assembly by the 2024 regular session of the 90th
15general assembly.
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