House File 683 - IntroducedA Bill ForAn Act 1relating to the excise tax imposed on the handling of
2grain, including by providing for transfer of collected
3revenue to the grain depositors and sellers indemnity fund,
4providing for the future elimination of the excise tax,
5and including effective date and retroactive applicability
1   Section 1.  Section 428.35, subsection 6, Code 2023, is
2amended to read as follows:
   36.  Payment of tax.  The tax, when determined, shall be
4entered in the same manner as general property taxes on the tax
5list of the taxing district, and the proceeds of the collection
6of the tax shall be distributed to the same taxing units and
7in the same proportion as the general property tax on the tax
8list of each taxing district
 Excise tax moneys collected on
9grain reported in the statement filing form required to be
10filed sixty days after January 1, 2023, shall be remitted to
11the department of revenue as required by the department. The
12department shall transfer the remitted moneys to the grain
13depositors and sellers indemnity fund created in section
. All provisions of the law relating to the assessment
15and collection of property taxes and the powers and duties of
16the county treasurer, county auditor, and all other officers
17with respect to the assessment, collection, and enforcement
18of property taxes apply to the assessment, collection, and
19enforcement of the excise tax imposed by this section.
20   Sec. 2.  Section 428.35, Code 2023, is amended by adding the
21following new subsections:
22   NEW SUBSECTION.  7.  Section no longer applicable.
  23Notwithstanding any provision of this section to the contrary,
24all of the following apply:
   25a.  Grain handled on or after January 1, 2023, otherwise
26required to be reported on the statement filing form filed
27sixty days after January 1, 2024, as provided in subsection 3
28is not subject to the excise tax imposed by subsection 2.
   29b.  A statement filing form as described in paragraph “a”
30otherwise requiring the reporting of grain handled on or after
31January 1, 2023, is not required to be filed.
32   NEW SUBSECTION.  8.  Section repealed.  This section is
33repealed July 1, 2025.
34   Sec. 3.  Section 445.3, subsection 2, Code 2023, is amended
35to read as follows:
-1-   12.  a.  The commencement of actions for ad valorem taxes
2authorized under this section shall not begin until the
3issuance of a tax sale certificate under the requirements of
4section 446.19. The commencement of actions for all other
5taxes authorized under this section shall not begin until ten
6days after the publication of tax sale under the requirements
7of section 446.9, subsection 2.
   8b.   (1)  This subsection does not apply to the collection of
9ad valorem taxes under section 445.32, and grain handling taxes
10under section 428.35
   11(2)  (a)  This subsection does not apply to the excise tax
12imposed on grain subject to handling under section 428.35.
   13(b)  This subparagraph is repealed July 1, 2025.
14   Sec. 4.  IMPLEMENTATION.  Section 25B.7 shall not apply to
15the property tax exemption enacted in this Act.
16   Sec. 5.  EFFECTIVE DATE.  This Act, being deemed of immediate
17importance, takes effect upon enactment.
18   Sec. 6.  RETROACTIVE APPLICABILITY.  The sections of this Act
19amending section 428.35 apply retroactively to January 1, 2023,
20for the assessment year beginning January 1, 2022.
22The inclusion of this explanation does not constitute agreement with
23the explanation’s substance by the members of the general assembly.
   24BACKGROUND. This bill relates to the grain handling excise
25tax of one-fourth mill per bushel upon all grain handled. For
26purposes of the excise tax, “handling or handled” means the
27receiving of grain at or in each elevator, warehouse, mill,
28processing plant, or other facility in this state in which it
29is received for storage, accumulation, sale, processing, or
30any other purpose. In addition, “grain” means wheat, corn,
31barley, oats, rye, flaxseed, field peas, soybeans, grain
32sorghums, spelts, and such other products as are usually stored
33in grain elevators other than seeds after being processed. The
34amount of excise tax is calculated on the basis of a statement
35filed by the person handling the grain due sixty days after
-2-1the start of the calendar year. The statement records the
2total number of bushels handled by the person during the prior
3calendar year. The excise tax is entered on the tax list of the
4taxing district and revenue collected from the excise tax is
5distributed to the various taxing authorities within the taxing
6district in the same manner as general property taxes.
   7BILL’S PROVISIONS. The bill requires excise tax moneys on
8grain reported in the statement filed 60 days after January
91, 2023, for the prior assessment year to be remitted to the
10department of revenue and transferred to the grain depositors
11and sellers indemnity fund. The excise tax is no longer
12assessable for grain handled on or after January 1, 2023,
13and the statute imposing the tax is repealed July 1, 2025.
14The bill takes effect upon enactment and is retroactively
15applicable to January 1, 2023, for the assessment year
16beginning January 1, 2022.
18dealer or warehouse operator must do business in this state
19under a license issued by the department of agriculture and
20land stewardship. A person selling grain to a licensed grain
21dealer or depositing grain with a licensed warehouse operator
22may be reimbursed for a loss incurred by the failure of the
23licensed grain dealer or licensed warehouse operator to honor
24a contractual obligation regarding the transaction. The
25indemnity fund is supported by several sources, including a
26participation fee paid by those grain dealers and warehouse
27operators applying for or renewing a license and a per-bushel
28fee paid only by grain dealers.