House Study Bill 225 - IntroducedA Bill ForAn Act 1establishing a fair as a designated exempt entity and
2allowing for refunds of state sales tax in the performance
3of certain written contracts and including effective date
4and retroactive applicability provisions.
1   Section 1.  Section 423.4, subsection 1, paragraph a, Code
22023, is amended by adding the following new subparagraph:
3   NEW SUBPARAGRAPH.  (10)  A fair as defined in section 174.1.
4   Sec. 2.  REFUNDS.  Refunds of taxes, interest, or penalties
5which arise from claims resulting from the enactment of section
6423.4, subsection 1, paragraph “a”, subparagraph (10), in this
7Act, occurring between January 1, 2021, and the effective date
8of this Act shall be limited to twenty-five thousand dollars in
9the aggregate, and shall not be allowed unless refund claims
10are filed by October 1, 2023, notwithstanding any other law to
11the contrary. If the amount of the claims totals more than
12twenty-five thousand dollars in the aggregate, the department
13of revenue shall prorate the twenty-five thousand dollars
14in the aggregate among all the claimants in relation to the
15amounts of the claimants’ valid claims.
16   Sec. 3.  EFFECTIVE DATE.  This Act, being deemed of immediate
17importance, takes effect upon enactment.
18   Sec. 4.  RETROACTIVE APPLICABILITY.  This Act applies
19retroactively to January 1, 2021.
21The inclusion of this explanation does not constitute agreement with
22the explanation’s substance by the members of the general assembly.
   23Currently, a “designated exempt entity” may apply to the
24department of revenue, under certain circumstances, for the
25refund of sales or use tax upon the sales price of all sales
26of building materials, supplies, equipment, or from services
27furnished to a contractor, used in the performance of a written
28contract with the designated exempt entity.
   29This bill also makes a county or district fair a designated
30exempt entity. This provision takes effect upon enactment and
31applies retroactively to January 1, 2021. The bill allows for
32refunds of taxes, interest, or penalties arising from claims
33resulting from the enactment of the bill. The bill limits the
34refund amount to $25,000 in the aggregate.