Bill Text: IA HF2281 | 2013-2014 | 85th General Assembly | Introduced
Bill Title: A bill for an act authorizing the rebate of state sales and use tax to the owner or operator of a raceway facility, and providing penalties.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2014-04-16 - Withdrawn. H.J. 755. [HF2281 Detail]
Download: Iowa-2013-HF2281-Introduced.html
House
File
2281
-
Introduced
HOUSE
FILE
2281
BY
HEARTSILL
and
LYKAM
A
BILL
FOR
An
Act
authorizing
the
rebate
of
state
sales
and
use
tax
to
1
the
owner
or
operator
of
a
raceway
facility,
and
providing
2
penalties.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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Section
1.
Section
423.2,
subsection
11,
paragraph
b,
Code
1
2014,
is
amended
by
adding
the
following
new
subparagraph:
2
NEW
SUBPARAGRAPH
.
(7)
Beginning
the
first
day
of
the
3
quarter
following
the
effective
date
of
this
Act,
transfer
4
to
the
raceway
facility
tax
rebate
fund
created
in
section
5
423.4,
subsection
11,
paragraph
“e”
,
that
portion
of
the
sales
6
tax
receipts
collected
and
remitted
upon
sales
of
tangible
7
personal
property
or
services
furnished
by
retailers
at
a
8
raceway
facility
meeting
the
qualifications
of
section
423.4,
9
subsection
11,
that
remains
after
the
transfers
required
in
10
subparagraphs
(1)
through
(6)
of
this
paragraph
“b”
.
This
11
subparagraph
is
repealed
June
30,
2025,
or
thirty
days
12
following
the
date
on
which
two
million
dollars
in
total
13
rebates
have
been
provided
under
section
423.4,
subsection
11,
14
or
thirty
days
following
the
date
rebates
cease
as
provided
in
15
section
423.4,
subsection
11,
paragraph
“c”
,
subparagraph
(5),
16
whichever
is
earliest.
17
Sec.
2.
Section
423.4,
Code
2014,
is
amended
by
adding
the
18
following
new
subsection:
19
NEW
SUBSECTION
.
11.
a.
For
purposes
of
this
subsection:
20
(1)
“Change
of
control”
means
a
change
in
ownership
such
21
that
the
fair
that
was
the
owner
or
operator
on
the
effective
22
date
of
this
Act
ceases
to
own
a
majority
of
the
equity
23
interests
in
the
raceway
facility.
24
(2)
“Fair”
means
the
same
as
defined
in
section
174.1.
25
(3)
“Owner
or
operator”
means
a
fair
that
is
the
owner
or
26
operator
of
a
raceway
facility
and
is
a
promoter
of
races.
27
(4)
“Population”
means
the
population
based
upon
the
2010
28
certified
federal
census.
29
(5)
“Raceway
facility”
means
a
raceway
facility
located
30
as
part
of
a
racetrack
and
entertainment
complex
and
located
31
on
fairgrounds,
as
defined
in
section
174.1,
in
a
city
with
a
32
population
of
at
least
seven
thousand
but
not
more
than
seven
33
thousand
five
hundred
residents,
which
city
is
located
in
a
34
county
with
a
population
of
at
least
thirty-three
thousand
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but
not
more
than
thirty-three
thousand
four
hundred
fifty
1
residents,
and
which
facility
was
placed
in
service
before
the
2
effective
date
of
this
Act.
3
b.
The
owner
or
operator
of
a
raceway
facility
may
apply
to
4
the
department
for
a
rebate
of
the
following:
5
(1)
Sales
tax
imposed
and
collected
by
retailers
upon
6
sales
of
tangible
personal
property
or
services
furnished
to
7
purchasers
at
the
raceway
facility.
Notwithstanding
the
state
8
sales
tax
imposed
in
section
423.2,
a
sales
tax
rebate
issued
9
pursuant
to
this
subparagraph
shall
not
exceed
the
amounts
10
transferred
to
the
raceway
facility
tax
rebate
fund
pursuant
to
11
section
423.2,
subsection
11,
paragraph
“b”
,
subparagraph
(7).
12
(2)
(a)
Sales
or
use
tax
upon
the
sales
price
of
all
13
tangible
personal
property,
or
from
services
furnished
to
a
14
contractor,
used
in
the
fulfillment
of
a
written
contract
with
15
the
owner
or
operator
if
the
property
becomes
an
integral
part
16
of
the
project
under
contract
and
at
the
completion
of
the
17
project
becomes
part
of
the
raceway
facility.
18
(b)
Notwithstanding
the
state
sales
tax
imposed
in
section
19
423.2,
a
sales
tax
rebate
issued
pursuant
to
this
subparagraph
20
shall
not
exceed
the
amounts
remaining
after
the
transfers
21
required
under
section
423.2,
subsection
11,
paragraph
“b”
,
22
subparagraphs
(1)
through
(6),
have
been
made
from
the
total
23
amount
of
sales
tax
for
which
the
rebate
is
requested.
24
(c)
Notwithstanding
the
state
use
tax
imposed
in
section
25
423.5,
a
use
tax
rebate
issued
pursuant
to
this
subparagraph
26
shall
not
exceed
the
amounts
remaining
after
the
transfers
27
required
under
section
423.43,
subsection
1,
have
been
made
28
from
the
total
amount
of
use
tax
for
which
the
rebate
is
29
requested.
30
c.
The
rebate
may
be
obtained
only
in
the
following
amounts
31
and
manner
and
only
under
the
following
conditions:
32
(1)
For
rebates
pursuant
to
paragraph
“b”
,
subparagraph
(1),
33
on
forms
furnished
by
the
department
within
the
time
period
34
provided
by
the
department
by
rule,
which
time
period
shall
not
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be
longer
than
quarterly.
1
(2)
For
rebates
pursuant
to
paragraph
“b”
,
subparagraph
(2),
2
on
forms
furnished
by
the
department
within
the
time
period
3
provided
by
the
department
by
rule,
but
not
more
than
one
year
4
after
the
final
settlement
has
been
made.
5
(3)
The
owner
or
operator
shall
provide
information
as
6
deemed
necessary
by
the
department.
7
(4)
The
transactions
for
which
sales
or
use
tax
was
8
collected
and
the
rebate
is
sought
occurred
on
or
after
January
9
1,
2015,
but
before
January
1,
2025.
However,
not
more
than
10
two
million
dollars
in
total
rebates
shall
be
provided
pursuant
11
to
this
subsection.
12
(5)
Notwithstanding
subparagraph
(4),
the
rebate
of
sales
13
or
use
tax
shall
cease
for
transactions
occurring
on
or
after
14
the
date
of
the
change
of
control
of
the
raceway
facility.
15
(6)
The
raceway
facility
has
not
received
or
shall
not
16
receive
any
grants
under
the
community
attraction
and
tourism
17
program
pursuant
to
chapter
15F,
subchapter
II,
or
the
vision
18
Iowa
program
pursuant
to
chapter
15F,
subchapter
III.
19
d.
To
assist
the
department
in
determining
the
amount
of
the
20
rebate,
the
following
shall
occur:
21
(1)
For
rebates
pursuant
to
paragraph
“b”
,
subparagraph
22
(1),
the
owner
or
operator
shall
identify
to
the
department
23
retailers
located
at
the
raceway
facility
who
will
be
24
collecting
sales
tax.
The
department
shall
verify
such
25
identity
and
ensure
that
all
proper
permits
have
been
issued.
26
For
purposes
of
this
subsection,
advance
ticket
and
admissions
27
sales
shall
be
considered
occurring
at
the
raceway
facility
28
regardless
of
where
the
transactions
actually
occur.
29
(2)
For
rebates
pursuant
to
paragraph
“b”
,
subparagraph
(2),
30
the
contractor
shall
state
under
oath,
on
forms
provided
by
31
the
department,
the
amount
of
such
sales
of
tangible
personal
32
property,
or
services
furnished
and
used
in
the
performance
33
of
a
contract,
and
upon
which
sales
or
use
tax
has
been
paid,
34
and
shall
file
such
forms
with
the
owner
or
operator
which
has
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made
any
written
contract
for
performance
by
the
contractor.
1
The
forms
shall
be
filed
by
the
contractor
with
the
owner
or
2
operator
before
final
settlement
is
made.
Any
contractor
who
3
willfully
makes
a
false
report
of
tax
paid
under
the
provisions
4
of
this
subsection
is
guilty
of
a
simple
misdemeanor
and
in
5
addition
shall
be
liable
for
the
payment
of
the
tax
and
any
6
applicable
penalty
and
interest.
7
e.
There
is
established
within
the
state
treasury
under
8
the
control
of
the
department
a
raceway
facility
tax
rebate
9
fund
consisting
of
the
amount
of
state
sales
tax
revenues
10
transferred
pursuant
to
section
423.2,
subsection
11,
paragraph
11
“b”
,
subparagraph
(7).
An
account
is
created
within
the
12
fund
for
each
raceway
facility
meeting
the
qualifications
of
13
this
subsection.
Moneys
in
the
fund
shall
only
be
used
to
14
provide
rebates
of
state
sales
tax
pursuant
to
paragraph
“b”
,
15
subparagraph
(1).
Not
more
than
two
million
dollars
in
total
16
rebates
shall
be
paid
from
the
fund.
Any
moneys
in
the
fund
17
which
represent
state
sales
tax
revenue
for
which
the
time
18
period
in
paragraph
“c”
for
receiving
a
rebate
has
expired,
19
or
which
otherwise
represent
state
sales
tax
revenue
that
has
20
become
ineligible
for
rebate
pursuant
to
this
subsection
shall
21
immediately
revert
to
the
general
fund
of
the
state.
22
f.
Upon
determining
that
the
conditions
and
requirements
23
of
this
subsection
and
the
department
are
met,
the
department
24
shall
issue
a
warrant
to
the
owner
or
operator
in
the
amount
25
equal
to
the
amount
claimed
and
verified
by
the
department.
26
g.
This
subsection
is
repealed
June
30,
2025,
or
thirty
27
days
following
the
date
on
which
two
million
dollars
in
total
28
rebates
have
been
provided,
or
thirty
days
following
the
29
date
on
which
rebates
cease
as
provided
in
paragraph
“c”
,
30
subparagraph
(5),
whichever
is
the
earliest.
31
EXPLANATION
32
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
33
the
explanation’s
substance
by
the
members
of
the
general
assembly.
34
This
bill
authorizes
the
department
of
revenue
to
rebate
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sales
and
use
tax
for
certain
transactions
related
to
a
1
raceway
facility.
To
be
eligible
for
the
rebate
the
raceway
2
facility
must
be
located
on
fairgrounds,
and
must
be
located
3
in
a
city
with
a
population
between
7,000
and
7,500,
which
4
city
is
located
in
a
county
with
a
population
between
33,000
5
and
33,450.
In
addition,
the
raceway
facility
must
have
been
6
placed
in
service
before
the
effective
date
of
the
bill.
7
The
person
eligible
to
receive
the
rebate
is
the
owner
or
8
operator
of
the
raceway
facility.
“Owner
or
operator”
means
9
a
fair
that
is
the
owner
or
operator
of
a
raceway
facility
and
10
is
the
promoter
of
races.
“Fair”
means
the
same
as
defined
11
in
Code
section
174.1
and
generally
means
an
organization
12
incorporated
under
the
laws
of
Iowa
that
holds
fair
events
and
13
meets
certain
property
ownership
requirements.
14
The
rebate
applies
to
two
types
of
transactions.
One,
the
15
state
sales
tax
collected
upon
tangible
personal
property
or
16
services
furnished
to
purchasers
at
the
raceway
facility.
Two,
17
the
state
sales
or
use
tax
paid
in
fulfillment
of
a
written
18
contract
with
the
owner
or
operator
if
the
property
becomes
an
19
integral
part
of
the
project
under
contract
and
upon
completion
20
of
the
project
becomes
part
of
the
raceway
facility.
The
21
rebates
only
apply
to
transactions
occurring
on
or
after
22
January
1,
2015,
but
before
January
1,
2025,
and
are
limited
to
23
a
maximum
of
$2
million.
24
With
regard
to
the
rebate
of
sales
tax
revenues
collected
25
upon
tangible
personal
property
or
services
furnished
to
26
purchasers
at
the
raceway
facility,
the
bill
creates
a
raceway
27
facility
tax
rebate
fund
consisting
of
the
remaining
amount
28
of
state
sales
tax
revenue
from
these
transactions
after
29
subtracting
the
local
option
sales
tax
under
Code
chapter
423B,
30
the
natural
resources
and
outdoor
recreation
trust
transfer
31
pursuant
to
Article
VII,
section
10,
of
the
Constitution
of
32
the
State
of
Iowa
if
applicable,
the
secure
an
advanced
vision
33
for
education
fund
transfer
pursuant
to
Code
section
423F.2,
34
and
any
transfers
required,
if
applicable,
to
a
baseball
and
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softball
tournament
facility
and
movie
site
sales
tax
rebate
1
fund,
flood
mitigation
sales
tax
increment
fund,
or
Iowa
2
reinvestment
Act
sales
tax
increment
fund.
Rebates
from
these
3
transactions
are
paid
only
from
this
rebate
fund,
are
limited
4
to
the
amounts
in
the
fund,
and
are
made
on
forms
furnished
by
5
the
department
of
revenue.
6
With
regard
to
the
rebate
of
sales
or
use
tax
paid
in
7
fulfillment
of
a
written
contract
with
the
owner
or
operator,
8
the
bill
specifies
that
the
rebate
of
sales
tax
shall
not
9
exceed
the
amount
remaining
after
the
transfers
listed
above
10
have
been
subtracted
from
the
total
amount
of
the
sales
tax
11
rebate
requested,
as
applicable.
The
bill
also
specifies
that
12
the
rebate
of
use
tax
shall
not
exceed
the
amount
remaining
13
after
subtracting
the
local
option
taxes
under
Code
chapter
14
423B
and
the
secure
an
advanced
vision
for
education
fund
15
transfer
pursuant
to
Code
section
423F.2.
A
contractor
16
that
has
a
written
contract
with
the
owner
or
operator
is
17
required
to
provide
information
under
oath
to
the
owner
or
18
operator
regarding
the
amount
of
property
or
services
used
in
19
performance
of
the
contract
upon
which
sales
or
use
tax
has
20
been
paid.
A
contractor
who
willfully
makes
a
false
report
is
21
guilty
of
a
simple
misdemeanor
and
is
liable
for
the
payment
22
of
the
tax
and
any
applicable
penalty
and
interest.
A
simple
23
misdemeanor
is
punishable
by
confinement
for
no
more
than
24
30
days
or
a
fine
of
at
least
$65
but
not
more
than
$625
or
25
by
both.
Rebates
from
these
transactions
are
made
on
forms
26
furnished
by
the
department
of
revenue.
27
The
rebate
ceases
if
control
of
the
facility
changes.
A
28
change
in
control
will
occur
when
the
fair
that
is
the
owner
29
or
operator
on
the
effective
date
of
the
bill
ceases
to
own
a
30
majority
of
the
equity
interests
in
the
raceway
facility.
The
31
rebate
provision
is
repealed
June
30,
2025,
or
30
days
after
32
a
total
of
$2
million
has
been
rebated,
or
30
days
following
33
the
change
of
control
causing
the
rebates
to
cease,
whichever
34
occurs
earlier.
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