Bill Text: IA HF2419 | 2013-2014 | 85th General Assembly | Introduced
Bill Title: A bill for an act relating to the apportionment of certain gross receipts of a broadcaster for purposes of Iowa income tax, and including effective date and applicability provisions.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2014-03-24 - Subcommittee, Windschitl, Kelley, and Sands. H.J. 566. [HF2419 Detail]
Download: Iowa-2013-HF2419-Introduced.html
House
File
2419
-
Introduced
HOUSE
FILE
2419
BY
COWNIE
(COMPANION
TO
LSB
5885SS
BY
DOTZLER)
A
BILL
FOR
An
Act
relating
to
the
apportionment
of
certain
gross
receipts
1
of
a
broadcaster
for
purposes
of
Iowa
income
tax,
and
2
including
effective
date
and
applicability
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
TLSB
5885HH
(3)
85
mm/sc
H.F.
2419
Section
1.
Section
422.33,
subsection
2,
paragraph
b,
Code
1
2014,
is
amended
by
adding
the
following
new
subparagraph:
2
NEW
SUBPARAGRAPH
.
(05)
(a)
Notwithstanding
subparagraph
3
(3),
where
income
is
derived
by
a
broadcaster
from
4
broadcasting,
the
part
attributable
to
business
within
the
5
state
shall
be
in
the
proportion
that
the
gross
receipts
from
6
broadcasting
derived
from
customers
whose
commercial
domicile
7
is
in
this
state
bears
to
the
total
gross
receipts
from
8
broadcasting.
9
(b)
For
purposes
of
this
subparagraph:
10
(i)
“Broadcaster”
means
a
taxpayer
who
is
engaged
in
the
11
business
of
broadcasting.
“Broadcaster”
includes
but
is
not
12
limited
to
a
television
or
radio
network,
a
cable
program
13
network,
a
television
or
radio
station,
and
a
television
or
14
radio
distribution
company.
“Broadcaster”
does
not
include
a
15
cable
system
operator
or
a
direct
broadcast
satellite
system
16
operator.
17
(ii)
“Broadcasting”
means
the
transmission
of
film
or
radio
18
programming
by
an
electronic
or
other
signal
conducted
by
radio
19
waves,
microwaves,
wires,
lines,
coaxial
cables,
wave
guides,
20
fiber
optics,
satellite
transmissions,
or
through
any
other
21
means
of
communication
directly
or
indirectly
to
viewers
and
22
listeners.
23
(iii)
“Customer”
means
a
person
who
has
a
direct
contractual
24
relationship
with
a
broadcaster
from
whom
the
broadcaster
25
derives
gross
receipts.
“Customer”
includes
but
is
not
limited
26
to
an
advertiser
or
licensee.
27
(iv)
“Gross
receipts
from
broadcasting”
means
gross
receipts
28
of
a
broadcaster
from
transactions
and
activities
in
the
29
regular
course
of
its
business,
including
but
not
limited
to
30
advertising,
licensing,
and
distribution,
but
excluding
gross
31
receipts
from
the
sale
of
real
property
or
tangible
personal
32
property.
33
Sec.
2.
Section
422.33,
subsection
2,
paragraph
b,
34
subparagraph
(5),
Code
2014,
is
amended
to
read
as
follows:
35
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5885HH
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3
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2419
(5)
Where
income
consists
of
more
than
one
class
of
income
1
as
provided
in
subparagraphs
(1)
to
(4)
through
(05)
of
this
2
paragraph,
it
shall
be
reasonably
apportioned
by
the
business
3
activity
ratio
provided
in
rules
adopted
by
the
director.
4
Sec.
3.
EFFECTIVE
DATE.
This
Act
takes
effect
January
1,
5
2015.
6
Sec.
4.
APPLICABILITY.
This
Act
applies
to
tax
years
7
beginning
on
or
after
January
1,
2015.
8
EXPLANATION
9
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
10
the
explanation’s
substance
by
the
members
of
the
general
assembly.
11
This
bill
relates
to
the
apportionment
of
income
of
a
12
broadcaster
for
purposes
of
Iowa
corporate
income
tax.
13
A
corporation
doing
business
both
within
and
without
Iowa
is
14
required
to
apportion
its
business
income
among
Iowa
and
the
15
other
states
in
which
it
does
business.
The
amount
of
business
16
income
apportioned
to
Iowa
is
generally
in
the
same
percentage
17
as
the
business’s
gross
sales
made
within
Iowa
if
the
business
18
involves
the
manufacture
or
sale
of
goods
and
products,
or
in
19
the
same
percentage
as
the
business’s
gross
receipts
earned
20
within
Iowa
if
the
business
involves
something
other
than
the
21
manufacture
or
sale
of
goods
and
products.
22
Under
current
law
pursuant
to
Iowa
Administrative
Code
23
701-57.7(5),
a
radio
or
television
company
doing
business
24
within
and
without
Iowa
is
required
to
apportion
its
business
25
income
to
Iowa
in
the
same
proportion
that
the
Iowa
population
26
served
by
its
broadcasting
bears
to
the
total
population
27
served
by
its
broadcasting.
The
calculation
is
made
using
all
28
residents
of
the
applicable
broadcasting
area,
regardless
of
29
whether
or
not
the
residents
individually
elect
to
receive
the
30
broadcasts.
31
The
bill
specifies
that
when
income
is
derived
by
a
32
broadcaster
from
broadcasting,
the
business
income
apportioned
33
to
Iowa
shall
be
in
the
same
proportion
that
the
broadcaster’s
34
gross
receipts
from
broadcasting
derived
from
customers
whose
35
-2-
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5885HH
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85
mm/sc
2/
3
H.F.
2419
commercial
domicile
is
in
Iowa
bears
to
the
broadcaster’s
total
1
gross
receipts
from
broadcasting.
2
“Broadcaster”
is
defined
in
the
bill
as
a
taxpayer
who
3
is
engaged
in
the
business
of
broadcasting.
A
broadcaster
4
includes
but
is
not
limited
to
a
television
or
radio
network,
5
a
cable
program
network,
a
television
or
radio
station,
and
6
a
television
or
radio
distribution
company.
A
broadcaster
7
does
not
include
a
cable
system
operator
or
a
direct
broadcast
8
satellite
system
operator.
9
“Broadcasting”
is
defined
in
the
bill
as
the
transmission
10
of
film
or
radio
programming
by
an
electronic
or
other
signal
11
conducted
by
radio
waves,
microwaves,
wires,
lines,
coaxial
12
cables,
wave
guides,
fiber
optics,
satellite
transmissions,
or
13
through
any
other
means
of
communication
directly
or
indirectly
14
to
viewers
and
listeners.
15
“Customer”
is
defined
in
the
bill
as
a
person
who
has
a
16
direct
contractual
relationship
with
a
broadcaster
from
whom
17
the
broadcaster
derives
gross
receipts.
18
By
operation
of
law,
the
method
of
apportioning
gross
19
receipts
from
broadcasting
provided
in
the
bill
will
also
20
apply
for
purposes
of
the
individual
income
tax
to
a
resident
21
individual
who
is
an
owner
of
a
broadcaster
organized
for
22
federal
tax
purposes
as
an
S
corporation,
and
for
a
nonresident
23
individual
who
is
an
owner
of
a
broadcaster
organized
for
24
federal
tax
purposes
as
an
S
corporation
or
a
partnership.
25
The
bill
takes
effect
January
1,
2015,
and
applies
to
tax
26
years
beginning
on
or
after
that
date.
27
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