Bill Text: IA HF2463 | 2015-2016 | 86th General Assembly | Introduced

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Bill Title: A bill for an act modifying the state sales tax rebate to the owner or operator of a baseball and softball tournament facility and movie site. (Formerly HSB 655)

Spectrum: Committee Bill

Status: (Introduced - Dead) 2016-04-25 - Withdrawn. H.J. 746. [HF2463 Detail]

Download: Iowa-2015-HF2463-Introduced.html

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House File 2463 - Introduced




                                 HOUSE FILE       
                                 BY  COMMITTEE ON WAYS AND
                                     MEANS

                                 (SUCCESSOR TO HSB 655)

                                      A BILL FOR

  1 An Act modifying the state sales tax rebate to the owner or
  2    operator of a baseball and softball tournament facility and
  3    movie site.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN



  1  1    Section 1.  NEW SECTION.  15F.207  Baseball and softball
  1  2 complex sales tax rebate.
  1  3    1.  Definitions.  As used in this section, unless the context
  1  4 otherwise requires, "baseball and softball complex" and "owner or
  1  5 operator" mean the same as defined in section 423.4, subsection
  1  6 10.
  1  7    2.  Application.  An entity that has made or is making an
  1  8 application under section 15F.202, subsection 2, for financial
  1  9 assistance for a project may make an application for the sales
  1 10 tax rebate provided under section 423.4, subsection 10.  The
  1 11 application shall be made in the same manner and form as
  1 12 provided in section 15F.202, subsection 2, and shall include
  1 13 but not be limited to the same information as required in
  1 14 section 15F.202, subsection 2.
  1 15    3.  Eligibility.
  1 16    a.  The project must satisfy all of the following criteria to
  1 17 be eligible for a sales tax rebate:
  1 18    (1)  The project upon completion will be a baseball and
  1 19 softball complex.
  1 20    (2)  The entity making the application is or will become the
  1 21 owner or operator of the baseball and softball complex.
  1 22    b.  A project shall not be required to be receiving an award
  1 23 of financial assistance under another part of the program
  1 24 in order to be awarded a sales tax rebate pursuant to this
  1 25 section.
  1 26    4.  Application review and award.
  1 27    a.  Applications for the sales tax rebate shall be submitted
  1 28 to the authority.  For those applications that meet the
  1 29 eligibility criteria, the authority shall provide a staff
  1 30 review and evaluation, with recommendation, to the board.
  1 31    b.  When reviewing applications, the authority shall
  1 32 consider, at a minimum, the same factors provided in section
  1 33 15F.203, subsection 3, excluding paragraph "f" of that
  1 34 subsection.
  1 35    c.  Upon review of the recommendation of the authority, the
  2  1 board shall approve, defer, or deny an application.
  2  2    d.  Upon approval of an application for a sales tax rebate,
  2  3 the board shall notify the department of revenue regarding the
  2  4 amount of the sales tax rebate award, a description of the
  2  5 project comprising the baseball and softball complex, and any
  2  6 other information reasonably requested by the department in
  2  7 order to administer the sales tax rebate.
  2  8    5.  Maximum award amount.  The board shall not award more
  2  9 than two million five hundred thousand dollars in sales tax
  2 10 rebates for any one baseball and softball complex, and shall
  2 11 not award more than sixteen million five hundred thousand
  2 12 dollars in total sales tax rebates for all baseball and
  2 13 softball complexes.
  2 14    6.  Future repeal.  This section is repealed thirty days
  2 15 following the date on which sixteen million five hundred
  2 16 thousand dollars in total rebates have been awarded.  The board
  2 17 shall notify the Iowa Code editor upon occurrence of this
  2 18 condition.
  2 19    Sec. 2.  Section 423.2, subsection 11, paragraph a,
  2 20 subparagraph (2), Code 2016, is amended to read as follows:
  2 21    (2)  Subsequent to the deposit into the general fund of
  2 22 the state, the director shall credit an amount equal to the
  2 23 product of the sales tax rate imposed in this section times
  2 24 the sales price of the tangible personal property or services
  2 25 furnished to purchasers at a baseball and softball tournament
  2 26 facility and movie site meeting complex that has received an
  2 27 award under section 15F.207 and that meets the qualifications
  2 28 of section 423.4, subsection 10, into the baseball and softball
  2 29 tournament facility and movie site complex sales tax rebate
  2 30 fund created under section 423.4, subsection 10, paragraph "e".
  2 31 The director shall credit the moneys beginning the first day of
  2 32 the quarter following July 1, 2012 2016. This subparagraph is
  2 33 repealed June 30, 2024, or thirty days following the date on
  2 34 which sixteen million five hundred thousand dollars in total
  2 35 rebates have been provided under section 423.4, subsection
  3  1 10, or thirty days following the date on which rebates cease
  3  2 as provided in section 423.4, subsection 10, paragraph "c",
  3  3 subparagraph (4), whichever is earliest.
  3  4    Sec. 3.  Section 423.2, subsection 11, paragraph b,
  3  5 subparagraph (4), Code 2016, is amended to read as follows:
  3  6    (4)  Transfer to the baseball and softball tournament
  3  7 facility and movie site complex sales tax rebate fund that
  3  8 portion of the sales tax receipts described in paragraph "a",
  3  9 subparagraph (2), remaining after the transfers required
  3 10 under subparagraphs (1), (2), and (3) of this paragraph "b".
  3 11 This subparagraph is repealed June 30, 2024, or thirty days
  3 12 following the date on which sixteen million five hundred
  3 13 thousand dollars in total rebates have been provided under
  3 14 section 423.4, subsection 10, or thirty days following the date
  3 15 on which rebates cease as provided in section 423.4, subsection
  3 16 10, paragraph "c", subparagraph (4), whichever is earliest.
  3 17    Sec. 4.  Section 423.4, subsection 10, Code 2016, is amended
  3 18 to read as follows:
  3 19    10.  a.  For purposes of this subsection:
  3 20    (1)  "Baseball and softball tournament facility and movie
  3 21 site" means a baseball and softball tournament complex and
  3 22 tourist destination, which facility is located on a maximum of
  3 23 two hundred seventy=nine acres, located inside or within three
  3 24 miles of the city limits of a city with a population of at least
  3 25 four thousand but not more than five thousand five hundred
  3 26 residents, which city is located in a county with a population
  3 27 of at least ninety=three thousand but not more than one hundred
  3 28 thousand residents and where the construction on the baseball
  3 29 and softball tournament facility commenced not later than July
  3 30 1, 2013, and the cost of the construction upon completion was
  3 31 at least thirty=eight million dollars. "Baseball and softball
  3 32 complex" means a baseball and softball complex located in this
  3 33 state that has a project completion date that is after July 1,
  3 34 2016, and that has a cost of construction upon completion that
  3 35 is at least ten million dollars.
  4  1    (2)  "Change of control" means any of the following:
  4  2    (a)  Any change in the ownership of the original or any
  4  3 subsequent legal entity that is the owner or operator of the
  4  4 baseball and softball tournament facility and movie site
  4  5  complex such that more than fifty=one percent of the equity
  4  6 interests or voting interest in the legal entity cease ceases
  4  7  to be owned by individuals who are residents of Iowa, an Iowa
  4  8 corporation, or combination of both.
  4  9    (b)  The original owners of the legal entity that is the
  4 10 owner or operator of the baseball and softball tournament
  4 11 facility and movie site complex shall collectively cease to
  4 12 own or control more than fifty percent of the voting equity
  4 13 interests or voting interest of such legal entity or shall
  4 14 otherwise cease to have effective control of such legal entity.
  4 15    (3)  "Iowa corporation" means a corporation incorporated
  4 16 under the laws of Iowa where more than fifty=one percent of the
  4 17 corporation's equity interests or voting interest are owned or
  4 18 controlled by individuals who are residents of Iowa.
  4 19    (4)  "Owner or operator" means a for=profit legal entity
  4 20 where more than fifty=one percent of its equity interests are
  4 21  or voting interest is owned or controlled by individuals who
  4 22 are residents of Iowa, an Iowa corporation, or combination
  4 23 of both and that is the owner or operator of a baseball and
  4 24 softball tournament facility and movie site complex and is
  4 25 primarily a promoter of baseball and or softball tournaments,
  4 26 or both.
  4 27    (5)  "Population" means the population based upon the 2010
  4 28 certified federal census. "Project completion date" means the
  4 29 date on which a baseball and softball complex is placed into
  4 30 service.
  4 31    b.  The owner or operator of a baseball and softball
  4 32 tournament facility and movie site may apply to the department
  4 33 for complex that has received an award under section 15F.207
  4 34 shall be entitled to a rebate of sales tax imposed and
  4 35 collected by retailers upon sales of any goods, wares,
  5  1 merchandise, admission tickets, or services furnished to
  5  2 purchasers at the baseball and softball tournament facility and
  5  3 movie site complex.
  5  4    c.  The rebate may be obtained only in the following amounts
  5  5 and manner and only under the following conditions:
  5  6    (1)  On forms furnished by the department within the time
  5  7 period provided by the department by rule, which time period
  5  8 shall not be longer than quarterly.
  5  9    (2)  The owner or operator shall provide information as
  5 10 deemed necessary by the department.
  5 11    (3)  The transactions for which sales tax was collected and
  5 12 the rebate is sought occurred on or after January 1, 2014, but
  5 13 before January 1, 2024 the baseball and softball complex's
  5 14 project completion date or the date on which the award under
  5 15 section 15F.207 was made, whichever is later, but before the
  5 16 date which is ten years after the project completion date.
  5 17 However, not more than the amount of rebates provided to a
  5 18 baseball and softball complex shall not exceed the amount of
  5 19 the award under section 15F.207, and not more than sixteen
  5 20 million five hundred thousand dollars in total rebates shall be
  5 21 provided pursuant to this subsection.
  5 22    (4)  Notwithstanding subparagraph (3), the rebate of
  5 23 sales tax to a baseball and softball complex shall cease for
  5 24 transactions occurring on or after the date of the change of
  5 25 control of the baseball and softball tournament facility and
  5 26 movie site complex.
  5 27    d.  To assist the department in determining the amount of the
  5 28 rebate, the owner or operator shall identify to the department
  5 29 retailers located at the baseball and softball tournament
  5 30 facility and movie site complex who will be collecting sales
  5 31 tax. The department shall verify such identity and ensure
  5 32 that all proper permits have been issued. For purposes of
  5 33 this subsection, advance ticket and admissions sales shall be
  5 34 considered occurring at the baseball and softball tournament
  5 35 facility and movie site complex regardless of where the
  6  1 transactions actually occur.
  6  2    e.  There is established within the state treasury under
  6  3 the control of the department a baseball and softball
  6  4 tournament facility and movie site complex sales tax rebate
  6  5 fund consisting of the amount of state sales tax revenues
  6  6 transferred pursuant to section 423.2, subsection 11, paragraph
  6  7 "b", subparagraph (4). An account is created within the fund
  6  8 for each baseball and softball tournament facility and movie
  6  9 site complex receiving an award under section 15F.207 and
  6 10  meeting the qualifications of this subsection. Moneys in the
  6 11 fund shall only be used to provide rebates of state sales tax
  6 12 pursuant to this subsection, and only the state sales tax
  6 13 revenues in the baseball and softball tournament facility and
  6 14 movie site complex rebate fund are subject to rebate under this
  6 15 subsection. Not more than The amount of rebates paid from each
  6 16 baseball and softball complex's account within the fund shall
  6 17 not exceed the amount of the award under section 15F.207, and
  6 18 not more than sixteen million five hundred thousand dollars in
  6 19 total rebates shall be paid from the fund. Any moneys in the
  6 20 fund which represent state sales tax revenue for which the time
  6 21 period in paragraph "c" for receiving a rebate has expired,
  6 22 or which otherwise represent state sales tax revenue that has
  6 23 become ineligible for rebate pursuant to this subsection, shall
  6 24 immediately revert to the general fund of this state.
  6 25    f.  Upon determining that the conditions and requirements
  6 26 of this subsection and the department are met, the department
  6 27 shall issue a warrant from the applicable account within the
  6 28 baseball and softball tournament facility and movie site
  6 29  complex rebate fund to the owner or operator in the amount
  6 30 equal to the amount claimed and verified by the department.
  6 31    g.  This subsection is repealed June 30, 2024, or thirty
  6 32 days following the date on which sixteen million five hundred
  6 33 thousand dollars in total rebates have been provided, or thirty
  6 34 days following the date on which rebates cease as provided in
  6 35 paragraph "c", subparagraph (4), whichever is the earliest.
  7  1 The director of revenue shall notify the Iowa Code editor upon
  7  2 occurrence of this condition.
  7  3                           EXPLANATION
  7  4 The inclusion of this explanation does not constitute agreement with
  7  5 the explanation's substance by the members of the general assembly.
  7  6    This bill modifies the rebate of state sales tax to the owner
  7  7 or operator of a baseball and softball tournament facility and
  7  8 movie site and makes the rebate subject to an award by the
  7  9 vision Iowa board.
  7 10    BACKGROUND.  2012 Iowa Acts, chapter 1098, enacted a sales
  7 11 tax rebate to the owner or operator of a baseball and softball
  7 12 tournament facility and movie site (facility).  In order to
  7 13 be eligible for the rebate, the facility must be located on a
  7 14 maximum of 279 acres and located inside or within three miles
  7 15 of the city limits of a city with a population between 4,000
  7 16 and 5,500, which is located in a county with a population
  7 17 between 93,000 and 100,000.  Construction on the facility
  7 18 must commence not later than July 1, 2013, and the cost of
  7 19 construction must be at least $38 million.
  7 20    The rebate only applies to state sales tax collected at
  7 21 the facility between January 1, 2014, and December 31, 2023.
  7 22 The rebate ceases if control of the facility changes.  The
  7 23 rebate provision is repealed June 30, 2024, or 30 days after a
  7 24 total of $16.5 million has been rebated, or 30 days following
  7 25 the change of control causing the rebates to cease, whichever
  7 26 occurs earlier.
  7 27    CHANGES IN BILL.  The bill changes the name of the qualifying
  7 28 "baseball and softball tournament facility and movie site" to a
  7 29 "baseball and softball complex", changes the requirements to
  7 30 qualify for the sales tax rebate, and makes the rebate subject
  7 31 to an award by the vision Iowa board (board).
  7 32    An entity that is or will become the owner or operator of
  7 33 a baseball and softball complex and that has or is making an
  7 34 application to the economic development authority (EDA) for
  7 35 financial assistance under the community attraction and tourism
  8  1 program (CAT program) is eligible to apply for the sales tax
  8  2 rebate in the same manner and form as an application for the
  8  3 CAT program is made.  However, a project for a baseball and
  8  4 softball complex is not required to be receiving financial
  8  5 assistance under another part of the CAT program in order to
  8  6 be awarded a sales tax rebate.  In order to be eligible for a
  8  7 rebate award, the project upon completion will be a baseball
  8  8 and softball complex.  Applications are reviewed by the EDA in
  8  9 the same manner as applications under the CAT program, except
  8 10 that the EDA is not required to consider whether the applicant
  8 11 has received financial assistance under the CAT program for the
  8 12 same project.  Upon review of the application, the EDA makes a
  8 13 recommendation to the board and the board approves, defers, or
  8 14 denies the application.  The board shall not award more than
  8 15 $2.5 million in sales tax rebates for any one baseball and
  8 16 softball complex and shall not award more than $16.5 million
  8 17 in total sales tax rebates for all baseball and softball
  8 18 complexes.  The sales tax rebate award provisions are repealed
  8 19 30 days after the board awards a total of $16.5 million in
  8 20 sales tax rebates. A baseball and softball complex that has
  8 21 received an award qualifies for the sales tax rebate if it is
  8 22 located in this state, has a project completion date that is
  8 23 after July 1, 2016, and has construction costs of at least $10
  8 24 million.  "Project completion date" is defined in the bill to
  8 25 mean the date on which the baseball and softball complex is
  8 26 placed into service.
  8 27    The bill removes the requirement that the legal entity
  8 28 that is the owner or operator of the complex be a for=profit
  8 29 legal entity, and further modifies the percentage=of=ownership
  8 30 requirements for qualification as an owner or operator and
  8 31 for the occurrence of a change of control to specify that the
  8 32 percentage is calculated using the equity interests or voting
  8 33 interest owned or controlled by Iowa residents.  Under current
  8 34 law, the calculation only considers equity interests owned by
  8 35 Iowa residents.
  9  1 The bill changes the availability of the sales tax rebate for
  9  2 each baseball and softball complex that has received an award
  9  3 to specify that the rebate only applies to sales tax collected
  9  4 for the period that begins on the complex's project completion
  9  5 date or the date on which the rebate award was made, whichever
  9  6 is later, and that ends on the date which is 10 years after the
  9  7 complex's project completion date.
  9  8    The bill specifies that the amount of sales tax rebates paid
  9  9 to a baseball and softball complex cannot exceed the amount
  9 10 of the rebate award made by the board.  The bill changes the
  9 11 repeal date of the rebate provision to provide that the rebate
  9 12 is repealed 30 days after a total of $16.5 million has been
  9 13 rebated.
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