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House File 2582 - IntroducedA Bill ForAn Act 1creating a state sales tax rebate to the owner or
2operator of a newly constructed baseball and softball park
3project.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. NEW SECTION. 15F.208 Baseball and softball park
2project sales tax rebate.
31. As used in this section, unless the context otherwise
4requires: “baseball and softball park” and “owner or operator”
5mean the same as defined in section 423.4, subsection 10A.
62. An entity that has made or is making an application
7under section 15F.202, subsection 2, for financial assistance
8for a project may make an application for the sales tax rebate
9provided under section 423.4, subsection 10A. The application
10shall be made in the same manner and form as provided in
11section 15F.202, subsection 2, and shall include but not be
12limited to the same information as required in section 15F.202,
13subsection 2.
143. a. The project must satisfy all of the following
15criteria to be eligible for a sales tax rebate:
16(1) The project upon completion primarily will be a baseball
17and softball park.
18(2) The entity making the application is or will become the
19owner or operator of the baseball and softball park.
20b. A project shall not be required to be receiving an award
21of financial assistance under another part of the program
22in order to be awarded a sales tax rebate pursuant to this
23section.
244. a. Applications for the sales tax rebate shall be
25submitted to the authority. For those applications that meet
26the eligibility criteria, the authority shall provide a staff
27review and evaluation, with recommendation, to the board.
28b. When reviewing applications, the authority shall
29consider, at a minimum, the same factors provided in section
3015F.203, subsection 3, excluding paragraph “f” of that
31subsection.
32c. Upon review of the recommendation of the authority, the
33board shall approve, defer, or deny an application.
34d. Upon approval of an application for a sales tax rebate,
35the board shall notify the department of revenue regarding the
-1-1amount of the sales tax rebate award, a description of the
2project comprising the baseball and softball park, and any
3other information reasonably requested by the department in
4order to administer the sales tax rebate.
55. The board shall not award more than five million dollars
6in sales tax rebates for any one baseball and softball park
7project, and shall not award more than five million dollars
8in total sales tax rebates for all baseball and softball park
9projects.
106. This section is repealed thirty days following the
11date on which five million dollars in total rebates have been
12awarded. The board shall notify the Iowa Code editor upon
13occurrence of this condition.
14 Sec. 2. Section 423.2A, subsection 1, Code 2022, is amended
15by adding the following new paragraph:
16 NEW PARAGRAPH. c. Subsequent to the deposit into the
17general fund of the state, the director shall credit an amount
18equal to the product of the sales tax rate imposed in section
19423.2 times the sales price of the tangible personal property
20or services furnished to purchasers at a baseball and softball
21park that has received an award under section 15F.208, and
22that meets the qualifications of section 423.4, subsection
2310A, into the baseball and softball park sales tax rebate fund
24created under section 423.4, subsection 10A, paragraph “e”. The
25director shall credit the moneys beginning the first day of the
26quarter following July 1, 2023. This paragraph is repealed
27thirty days following the date on which five million dollars
28in total rebates have been provided under section 423.4,
29subsection 10A.
30 Sec. 3. Section 423.2A, subsection 2, Code 2022, is amended
31by adding the following new paragraph:
32 NEW PARAGRAPH. 0e. Transfer to the baseball and softball
33park sales tax rebate fund that portion of the sales tax
34receipts described in subsection 1, paragraph “c”, remaining
35after the transfers required under paragraphs “a”, “b”, “c”,
-2-1“d”, and “e” of this subsection 2. This paragraph is repealed
2thirty days following the date on which five million dollars
3in total rebates have been provided under section 423.4,
4subsection 10A.
5 Sec. 4. Section 423.4, Code 2022, is amended by adding the
6following new subsection:
7 NEW SUBSECTION. 10A. a. For purposes of this subsection:
8(1) “Baseball and softball park” means the construction of a
9new baseball and softball park containing multiple baseball and
10softball fields and including adjacent retail establishments
11being developed in conjunction with the baseball and softball
12park, that has a project completion date that is after July 1,
132023, and has a cost of construction upon completion that is at
14least seventy-five million dollars.
15(2) “Change of control” means any of the following:
16(a) Any change in the ownership of the original or any
17subsequent legal entity that is the owner or operator of the
18baseball and softball park such that more than fifty-one
19percent of the equity interests or voting interest in the legal
20entity ceases to be owned by individuals who are residents of
21Iowa, an Iowa corporation, or combination of both.
22(b) The original owners of the legal entity that is the
23owner or operator of the baseball and softball park shall
24collectively cease to own or control more than fifty percent of
25the voting equity interests or voting interest of such legal
26entity or shall otherwise cease to have effective control of
27such legal entity.
28(3) “Iowa corporation” means a corporation incorporated
29under the laws of Iowa where more than fifty-one percent of the
30corporation’s equity interests or voting interest are owned or
31controlled by individuals who are residents of Iowa.
32(4) “Owner or operator” means a legal entity where more than
33fifty-one percent of its equity interest or voting interest
34is owned or controlled by individuals who are residents of
35Iowa, and Iowa corporation, or combination of both and that is
-3-1the owner or operator of a baseball and softball park and is
2primarily a promoter of baseball or softball tournaments, or
3both.
4(5) “Project completion date” means the date on which
5baseball or softball games are first played at the baseball and
6softball park.
7(6) “Retail establishment” includes a place of lodging,
8restaurants, and other entertainment facilities.
9b. The owner or operator of a baseball and softball
10park that has received an award under section 15F.208 shall
11be entitled to a rebate of sales tax imposed and collected
12by retailers upon sales of any goods, wares, merchandise,
13admission tickets, or services furnished to purchasers at the
14baseball and softball park.
15c. The rebate may be obtained only in the following amounts
16and manner and only under the following conditions:
17(1) On forms furnished by the department within the time
18period provided by the department by rule, which time period
19shall not be longer than quarterly.
20(2) The owner or operator shall provide information as
21deemed necessary by the department.
22(3) The transactions for which sales tax was collected
23and the rebate is sought occurred on or after the project’s
24completion date or the date on which the award under section
2515F.208, was made, whichever is later, but before the date
26which is ten years after the project completion date. However,
27the amount of rebates provided to a baseball and softball park
28shall not exceed the amount of the award under section 15F.208,
29and not more than five million dollars in total rebates shall
30be provided pursuant to this subsection.
31(4) Notwithstanding subparagraph (3), the rebate of
32sales tax to a baseball and softball park shall cease for
33transactions occurring on or after the date of the change of
34control of the baseball and softball park.
35d. To assist the department in determining the amount
-4-1of the rebate, the owner or operator shall identify to the
2department retailers located at the baseball and softball park
3who will be collecting sales tax. The department shall verify
4such identity and ensure that all proper permits have been
5issued. For purposes of this subsection, advance ticket and
6admissions sales shall be considered occurring at the baseball
7and softball park regardless of where the transactions actually
8occur.
9e. There is established within the state treasury under the
10control of the department a baseball and softball park sales
11tax rebate fund consisting of the amount of state sales tax
12revenues transferred pursuant to section 423.2A, subsection 2,
13paragraph “0e”. An account is created within the fund for each
14baseball and softball park receiving an award under section
1515F.208, and meeting the qualifications of this subsection.
16Moneys in the fund shall only be used to provide rebates of
17state sales tax pursuant to this subsection, and only the state
18sales tax revenues in the baseball and softball park rebate
19fund are subject to rebate under this subsection. The amount
20of rebates paid from each baseball and softball park’s account
21within the fund shall not exceed the amount of the award under
22section 15F.208, and not more than five million dollars in
23total rebates shall be paid from the fund. Any moneys in the
24fund which represent state sales tax revenue for which the time
25period in paragraph “c” for receiving a rebate has expired,
26or which otherwise represent state sales tax revenue that has
27become ineligible for rebate pursuant to this subsection, shall
28immediately revert to the general fund of this state.
29f. Upon determining that the conditions and requirements
30of this subsection and the department are met, the department
31shall issue a warrant from the applicable account within the
32baseball and softball park rebate fund to the owner or operator
33in the amount equal to the amount claimed and verified by the
34department.
35g. This subsection is repealed thirty days following the
-5-1date on which five million dollars in total rebates have been
2provided. The director of revenue shall notify the Iowa Code
3editor upon occurrence of this condition.
4EXPLANATION
5The inclusion of this explanation does not constitute agreement with
6the explanation’s substance by the members of the general assembly.
7This bill creates a state sales tax rebate to the owner or
8operator of a newly constructed baseball and softball park and
9makes the rebate subject to an award by the enhance Iowa board
10(board).
11BACKGROUND. 2012 Iowa Acts, chapter 1098, enacted a sales
12tax rebate to the owner or operator of a baseball and softball
13tournament facility and movie site. 2016 Iowa Acts, chapter
141117, modified the sales tax rebate program by eliminating
15the rebate for movie sites and modified the rebate program
16for baseball and softball facilities, and applied the rebate
17program to baseball and softball complexes completed after July
181, 2016, and that had a cost of construction upon completion
19that was at least $10 million.
20The baseball and softball complex sales tax rebate program
21created in 2016 Iowa Acts, chapter 1117, was repealed by its
22own terms after the board awarded sales tax rebates totaling
23$5 million, thus no new baseball and softball complexes are
24eligible to receive a sales tax rebate. Currently, sales tax
25rebates are occurring to the baseball and softball complexes
26awarded sales tax rebates until the total rebate award limit of
27$5 million has been achieved or 10 years after the last project
28completion date, whichever is earlier.
29BASEBALL AND SOFTBALL PARK REBATE PROGRAM. The bill changes
30the name of the qualifying “baseball and softball complex”
31to “baseball and softball park”, to distinguish it from the
32ongoing “baseball and softball complex” rebate program. The
33bill makes the “baseball and softball park” rebate program very
34similar to the “baseball and softball complex” rebate program
35enacted in 2016 Iowa Acts, chapter 1117.
-6- 1The bill requires an owner or operator of a baseball
2and softball park to make an application to the economic
3development authority (EDA) for financial assistance under the
4community attraction and tourism program (CAT program) in the
5same manner and form as an application for the CAT program is
6made. However, a project for a baseball and softball park
7is not required to be receiving financial assistance under
8another part of the CAT program in order to be awarded a sales
9tax rebate. In order to be eligible for a rebate award, the
10project upon completion will be a baseball and softball park.
11The bill defines a “baseball and softball park” to mean the
12construction of a new baseball and softball park containing
13multiple baseball and softball fields which includes adjacent
14retail establishments being developed in conjunction with the
15baseball and softball park, that has a project completion date
16that is after July 1, 2023, and has a cost of construction upon
17completion that is at least $75 million.
18The bill defines “owner or operator” to means a legal
19entity where more than 51 percent of its equity interest or
20voting interest is owned or controlled by individuals who are
21residents of Iowa, an Iowa corporation, or combination of both
22and that is the owner or operator of a baseball and softball
23park and is primarily a promoter of baseball or softball
24tournaments, or both.
25Applications for a rebate are reviewed by the EDA in the
26same manner as applications under the CAT program, except that
27the EDA is not required to consider whether the applicant has
28received financial assistance under the CAT program for the
29same project. Upon review of the application, the EDA makes a
30recommendation to the board and the board approves, defers, or
31denies the application.
32The board shall not award more than $5 million in sales
33tax rebates for any one baseball and softball park and shall
34not award more than $5 million in total sales tax rebates for
35all baseball and softball parks. The sales tax rebate award
-7-1provisions are repealed 30 days after the board awards a total
2of $5 million in sales tax rebates. A baseball and softball
3park that has received an award qualifies for the sales tax
4rebate if it is located in this state, has a project completion
5date that is after July 1, 2023, and has construction costs of
6at least $75 million. “Project completion date” is defined in
7the bill to mean the date on which baseball or softball games
8are first played at the baseball and softball park.
9Under the bill, the availability of the sales tax rebate only
10applies to sales tax collected for the period that begins on
11the complex’s project completion date or the date on which the
12rebate award was made, whichever is later, and ends on the date
13which is 10 years after the complex’s project completion date.
14FUTURE REPEAL. The bill repeals the baseball and softball
15park rebate program 30 days after a total of $5 million has
16been awarded by the board, and repeals the remaining portions
17of the program 30 days after $5 million in sales tax rebates
18have been provided to the baseball and softball parks receiving
19an award under the bill.
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2operator of a newly constructed baseball and softball park
3project.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. NEW SECTION. 15F.208 Baseball and softball park
2project sales tax rebate.
31. As used in this section, unless the context otherwise
4requires: “baseball and softball park” and “owner or operator”
5mean the same as defined in section 423.4, subsection 10A.
62. An entity that has made or is making an application
7under section 15F.202, subsection 2, for financial assistance
8for a project may make an application for the sales tax rebate
9provided under section 423.4, subsection 10A. The application
10shall be made in the same manner and form as provided in
11section 15F.202, subsection 2, and shall include but not be
12limited to the same information as required in section 15F.202,
13subsection 2.
143. a. The project must satisfy all of the following
15criteria to be eligible for a sales tax rebate:
16(1) The project upon completion primarily will be a baseball
17and softball park.
18(2) The entity making the application is or will become the
19owner or operator of the baseball and softball park.
20b. A project shall not be required to be receiving an award
21of financial assistance under another part of the program
22in order to be awarded a sales tax rebate pursuant to this
23section.
244. a. Applications for the sales tax rebate shall be
25submitted to the authority. For those applications that meet
26the eligibility criteria, the authority shall provide a staff
27review and evaluation, with recommendation, to the board.
28b. When reviewing applications, the authority shall
29consider, at a minimum, the same factors provided in section
3015F.203, subsection 3, excluding paragraph “f” of that
31subsection.
32c. Upon review of the recommendation of the authority, the
33board shall approve, defer, or deny an application.
34d. Upon approval of an application for a sales tax rebate,
35the board shall notify the department of revenue regarding the
-1-1amount of the sales tax rebate award, a description of the
2project comprising the baseball and softball park, and any
3other information reasonably requested by the department in
4order to administer the sales tax rebate.
55. The board shall not award more than five million dollars
6in sales tax rebates for any one baseball and softball park
7project, and shall not award more than five million dollars
8in total sales tax rebates for all baseball and softball park
9projects.
106. This section is repealed thirty days following the
11date on which five million dollars in total rebates have been
12awarded. The board shall notify the Iowa Code editor upon
13occurrence of this condition.
14 Sec. 2. Section 423.2A, subsection 1, Code 2022, is amended
15by adding the following new paragraph:
16 NEW PARAGRAPH. c. Subsequent to the deposit into the
17general fund of the state, the director shall credit an amount
18equal to the product of the sales tax rate imposed in section
19423.2 times the sales price of the tangible personal property
20or services furnished to purchasers at a baseball and softball
21park that has received an award under section 15F.208, and
22that meets the qualifications of section 423.4, subsection
2310A, into the baseball and softball park sales tax rebate fund
24created under section 423.4, subsection 10A, paragraph “e”. The
25director shall credit the moneys beginning the first day of the
26quarter following July 1, 2023. This paragraph is repealed
27thirty days following the date on which five million dollars
28in total rebates have been provided under section 423.4,
29subsection 10A.
30 Sec. 3. Section 423.2A, subsection 2, Code 2022, is amended
31by adding the following new paragraph:
32 NEW PARAGRAPH. 0e. Transfer to the baseball and softball
33park sales tax rebate fund that portion of the sales tax
34receipts described in subsection 1, paragraph “c”, remaining
35after the transfers required under paragraphs “a”, “b”, “c”,
-2-1“d”, and “e” of this subsection 2. This paragraph is repealed
2thirty days following the date on which five million dollars
3in total rebates have been provided under section 423.4,
4subsection 10A.
5 Sec. 4. Section 423.4, Code 2022, is amended by adding the
6following new subsection:
7 NEW SUBSECTION. 10A. a. For purposes of this subsection:
8(1) “Baseball and softball park” means the construction of a
9new baseball and softball park containing multiple baseball and
10softball fields and including adjacent retail establishments
11being developed in conjunction with the baseball and softball
12park, that has a project completion date that is after July 1,
132023, and has a cost of construction upon completion that is at
14least seventy-five million dollars.
15(2) “Change of control” means any of the following:
16(a) Any change in the ownership of the original or any
17subsequent legal entity that is the owner or operator of the
18baseball and softball park such that more than fifty-one
19percent of the equity interests or voting interest in the legal
20entity ceases to be owned by individuals who are residents of
21Iowa, an Iowa corporation, or combination of both.
22(b) The original owners of the legal entity that is the
23owner or operator of the baseball and softball park shall
24collectively cease to own or control more than fifty percent of
25the voting equity interests or voting interest of such legal
26entity or shall otherwise cease to have effective control of
27such legal entity.
28(3) “Iowa corporation” means a corporation incorporated
29under the laws of Iowa where more than fifty-one percent of the
30corporation’s equity interests or voting interest are owned or
31controlled by individuals who are residents of Iowa.
32(4) “Owner or operator” means a legal entity where more than
33fifty-one percent of its equity interest or voting interest
34is owned or controlled by individuals who are residents of
35Iowa, and Iowa corporation, or combination of both and that is
-3-1the owner or operator of a baseball and softball park and is
2primarily a promoter of baseball or softball tournaments, or
3both.
4(5) “Project completion date” means the date on which
5baseball or softball games are first played at the baseball and
6softball park.
7(6) “Retail establishment” includes a place of lodging,
8restaurants, and other entertainment facilities.
9b. The owner or operator of a baseball and softball
10park that has received an award under section 15F.208 shall
11be entitled to a rebate of sales tax imposed and collected
12by retailers upon sales of any goods, wares, merchandise,
13admission tickets, or services furnished to purchasers at the
14baseball and softball park.
15c. The rebate may be obtained only in the following amounts
16and manner and only under the following conditions:
17(1) On forms furnished by the department within the time
18period provided by the department by rule, which time period
19shall not be longer than quarterly.
20(2) The owner or operator shall provide information as
21deemed necessary by the department.
22(3) The transactions for which sales tax was collected
23and the rebate is sought occurred on or after the project’s
24completion date or the date on which the award under section
2515F.208, was made, whichever is later, but before the date
26which is ten years after the project completion date. However,
27the amount of rebates provided to a baseball and softball park
28shall not exceed the amount of the award under section 15F.208,
29and not more than five million dollars in total rebates shall
30be provided pursuant to this subsection.
31(4) Notwithstanding subparagraph (3), the rebate of
32sales tax to a baseball and softball park shall cease for
33transactions occurring on or after the date of the change of
34control of the baseball and softball park.
35d. To assist the department in determining the amount
-4-1of the rebate, the owner or operator shall identify to the
2department retailers located at the baseball and softball park
3who will be collecting sales tax. The department shall verify
4such identity and ensure that all proper permits have been
5issued. For purposes of this subsection, advance ticket and
6admissions sales shall be considered occurring at the baseball
7and softball park regardless of where the transactions actually
8occur.
9e. There is established within the state treasury under the
10control of the department a baseball and softball park sales
11tax rebate fund consisting of the amount of state sales tax
12revenues transferred pursuant to section 423.2A, subsection 2,
13paragraph “0e”. An account is created within the fund for each
14baseball and softball park receiving an award under section
1515F.208, and meeting the qualifications of this subsection.
16Moneys in the fund shall only be used to provide rebates of
17state sales tax pursuant to this subsection, and only the state
18sales tax revenues in the baseball and softball park rebate
19fund are subject to rebate under this subsection. The amount
20of rebates paid from each baseball and softball park’s account
21within the fund shall not exceed the amount of the award under
22section 15F.208, and not more than five million dollars in
23total rebates shall be paid from the fund. Any moneys in the
24fund which represent state sales tax revenue for which the time
25period in paragraph “c” for receiving a rebate has expired,
26or which otherwise represent state sales tax revenue that has
27become ineligible for rebate pursuant to this subsection, shall
28immediately revert to the general fund of this state.
29f. Upon determining that the conditions and requirements
30of this subsection and the department are met, the department
31shall issue a warrant from the applicable account within the
32baseball and softball park rebate fund to the owner or operator
33in the amount equal to the amount claimed and verified by the
34department.
35g. This subsection is repealed thirty days following the
-5-1date on which five million dollars in total rebates have been
2provided. The director of revenue shall notify the Iowa Code
3editor upon occurrence of this condition.
4EXPLANATION
5The inclusion of this explanation does not constitute agreement with
6the explanation’s substance by the members of the general assembly.
7This bill creates a state sales tax rebate to the owner or
8operator of a newly constructed baseball and softball park and
9makes the rebate subject to an award by the enhance Iowa board
10(board).
11BACKGROUND. 2012 Iowa Acts, chapter 1098, enacted a sales
12tax rebate to the owner or operator of a baseball and softball
13tournament facility and movie site. 2016 Iowa Acts, chapter
141117, modified the sales tax rebate program by eliminating
15the rebate for movie sites and modified the rebate program
16for baseball and softball facilities, and applied the rebate
17program to baseball and softball complexes completed after July
181, 2016, and that had a cost of construction upon completion
19that was at least $10 million.
20The baseball and softball complex sales tax rebate program
21created in 2016 Iowa Acts, chapter 1117, was repealed by its
22own terms after the board awarded sales tax rebates totaling
23$5 million, thus no new baseball and softball complexes are
24eligible to receive a sales tax rebate. Currently, sales tax
25rebates are occurring to the baseball and softball complexes
26awarded sales tax rebates until the total rebate award limit of
27$5 million has been achieved or 10 years after the last project
28completion date, whichever is earlier.
29BASEBALL AND SOFTBALL PARK REBATE PROGRAM. The bill changes
30the name of the qualifying “baseball and softball complex”
31to “baseball and softball park”, to distinguish it from the
32ongoing “baseball and softball complex” rebate program. The
33bill makes the “baseball and softball park” rebate program very
34similar to the “baseball and softball complex” rebate program
35enacted in 2016 Iowa Acts, chapter 1117.
-6- 1The bill requires an owner or operator of a baseball
2and softball park to make an application to the economic
3development authority (EDA) for financial assistance under the
4community attraction and tourism program (CAT program) in the
5same manner and form as an application for the CAT program is
6made. However, a project for a baseball and softball park
7is not required to be receiving financial assistance under
8another part of the CAT program in order to be awarded a sales
9tax rebate. In order to be eligible for a rebate award, the
10project upon completion will be a baseball and softball park.
11The bill defines a “baseball and softball park” to mean the
12construction of a new baseball and softball park containing
13multiple baseball and softball fields which includes adjacent
14retail establishments being developed in conjunction with the
15baseball and softball park, that has a project completion date
16that is after July 1, 2023, and has a cost of construction upon
17completion that is at least $75 million.
18The bill defines “owner or operator” to means a legal
19entity where more than 51 percent of its equity interest or
20voting interest is owned or controlled by individuals who are
21residents of Iowa, an Iowa corporation, or combination of both
22and that is the owner or operator of a baseball and softball
23park and is primarily a promoter of baseball or softball
24tournaments, or both.
25Applications for a rebate are reviewed by the EDA in the
26same manner as applications under the CAT program, except that
27the EDA is not required to consider whether the applicant has
28received financial assistance under the CAT program for the
29same project. Upon review of the application, the EDA makes a
30recommendation to the board and the board approves, defers, or
31denies the application.
32The board shall not award more than $5 million in sales
33tax rebates for any one baseball and softball park and shall
34not award more than $5 million in total sales tax rebates for
35all baseball and softball parks. The sales tax rebate award
-7-1provisions are repealed 30 days after the board awards a total
2of $5 million in sales tax rebates. A baseball and softball
3park that has received an award qualifies for the sales tax
4rebate if it is located in this state, has a project completion
5date that is after July 1, 2023, and has construction costs of
6at least $75 million. “Project completion date” is defined in
7the bill to mean the date on which baseball or softball games
8are first played at the baseball and softball park.
9Under the bill, the availability of the sales tax rebate only
10applies to sales tax collected for the period that begins on
11the complex’s project completion date or the date on which the
12rebate award was made, whichever is later, and ends on the date
13which is 10 years after the complex’s project completion date.
14FUTURE REPEAL. The bill repeals the baseball and softball
15park rebate program 30 days after a total of $5 million has
16been awarded by the board, and repeals the remaining portions
17of the program 30 days after $5 million in sales tax rebates
18have been provided to the baseball and softball parks receiving
19an award under the bill.
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