Bill Text: IA HF2464 | 2013-2014 | 85th General Assembly | Enrolled
Bill Title: A bill for an act providing for the rebate of state sales and use tax to the owner or operator of a raceway facility, and providing penalties. Effective 7-1-14.
Spectrum: Committee Bill
Status: (Passed) 2014-05-13 - Signed by Governor. H.J. 897. [HF2464 Detail]
Download: Iowa-2013-HF2464-Enrolled.html
House
File
2464
AN
ACT
PROVIDING
FOR
THE
REBATE
OF
STATE
SALES
AND
USE
TAX
TO
THE
OWNER
OR
OPERATOR
OF
A
RACEWAY
FACILITY,
AND
PROVIDING
PENALTIES.
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
Section
1.
Section
423.2,
subsection
11,
paragraph
b,
Code
2014,
is
amended
by
adding
the
following
new
subparagraph:
NEW
SUBPARAGRAPH
.
(7)
Beginning
the
first
day
of
the
quarter
following
the
effective
date
of
this
Act,
transfer
to
the
raceway
facility
tax
rebate
fund
created
in
section
423.4,
subsection
11,
paragraph
“e”
,
that
portion
of
the
sales
tax
receipts
collected
and
remitted
upon
sales
of
tangible
personal
property
or
services
furnished
by
retailers
at
a
raceway
facility
meeting
the
qualifications
of
section
423.4,
subsection
11,
that
remains
after
the
transfers
required
in
subparagraphs
(1)
through
(6)
of
this
paragraph
“b”
.
This
subparagraph
is
repealed
June
30,
2025,
or
thirty
days
House
File
2464,
p.
2
following
the
date
on
which
an
amount
of
total
rebates
specified
in
section
423.4,
subsection
11,
paragraph
“c”
,
subparagraph
(4),
subparagraph
division
(a)
or
(b),
whichever
is
applicable,
has
been
provided
or
thirty
days
following
the
date
on
which
rebates
cease
as
provided
in
section
423.4,
subsection
11,
paragraph
“c”
,
subparagraph
(5),
whichever
is
earliest.
Sec.
2.
Section
423.4,
Code
2014,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
11.
a.
For
purposes
of
this
subsection:
(1)
“Change
of
control”
means
a
change
in
ownership
such
that
the
fair
that
was
the
owner
or
operator
on
the
effective
date
of
this
Act
ceases
to
own
a
majority
of
the
equity
interests
in
the
raceway
facility.
(2)
“Fair”
means
the
same
as
defined
in
section
174.1.
(3)
“Owner
or
operator”
means
a
fair
that
is
the
owner
or
operator
of
a
raceway
facility
and
is
a
promoter
of
races.
(4)
“Population”
means
the
population
based
upon
the
2010
certified
federal
census.
(5)
“Raceway
facility”
means
a
raceway
facility
located
as
part
of
a
racetrack
and
entertainment
complex
and
located
on
fairgrounds,
as
defined
in
section
174.1,
in
a
city
with
a
population
of
at
least
seven
thousand
but
not
more
than
seven
thousand
five
hundred
residents,
which
city
is
located
in
a
county
with
a
population
of
at
least
thirty-three
thousand
but
not
more
than
thirty-three
thousand
four
hundred
fifty
residents,
and
which
facility
was
placed
in
service
before
the
effective
date
of
this
Act.
b.
The
owner
or
operator
of
a
raceway
facility
may
apply
to
the
department
for
a
rebate
of
the
following:
(1)
Sales
tax
imposed
and
collected
by
retailers
upon
sales
of
tangible
personal
property
or
services
furnished
to
purchasers
at
the
raceway
facility.
Notwithstanding
the
state
sales
tax
imposed
in
section
423.2,
a
sales
tax
rebate
issued
pursuant
to
this
subparagraph
shall
not
exceed
the
amounts
transferred
to
the
raceway
facility
tax
rebate
fund
pursuant
to
section
423.2,
subsection
11,
paragraph
“b”
,
subparagraph
(7).
(2)
(a)
Sales
or
use
tax
upon
the
sales
price
of
all
tangible
personal
property,
or
from
services
furnished
to
a
contractor,
used
in
the
fulfillment
of
a
written
contract
with
the
owner
or
operator
if
the
property
becomes
an
integral
part
of
the
project
under
contract
and
at
the
completion
of
the
project
becomes
part
of
the
raceway
facility.
House
File
2464,
p.
3
(b)
The
rebate
available
under
this
subparagraph
shall
be
limited
to
one
project
per
raceway
facility.
If
such
a
project
is
undertaken,
the
owner
or
operator
of
the
raceway
facility
shall
notify
the
department
upon
completion
of
the
project.
(c)
Notwithstanding
the
state
sales
tax
imposed
in
section
423.2,
a
sales
tax
rebate
issued
pursuant
to
this
subparagraph
shall
not
exceed
the
amounts
remaining
after
the
transfers
required
under
section
423.2,
subsection
11,
paragraph
“b”
,
subparagraphs
(1)
through
(6),
have
been
made
from
the
total
amount
of
sales
tax
for
which
the
rebate
is
requested.
(d)
Notwithstanding
the
state
use
tax
imposed
in
section
423.5,
a
use
tax
rebate
issued
pursuant
to
this
subparagraph
shall
not
exceed
the
amounts
remaining
after
the
transfers
required
under
section
423.43,
subsection
1,
have
been
made
from
the
total
amount
of
use
tax
for
which
the
rebate
is
requested.
c.
The
rebate
may
be
obtained
only
in
the
following
amounts
and
manner
and
only
under
the
following
conditions:
(1)
For
rebates
pursuant
to
paragraph
“b”
,
subparagraph
(1),
on
forms
furnished
by
the
department
within
the
time
period
provided
by
the
department
by
rule,
which
time
period
shall
not
be
longer
than
quarterly.
(2)
For
rebates
pursuant
to
paragraph
“b”
,
subparagraph
(2),
on
forms
furnished
by
the
department
within
the
time
period
provided
by
the
department
by
rule,
but
not
more
than
one
year
after
the
final
settlement
has
been
made.
(3)
The
owner
or
operator
shall
provide
information
as
deemed
necessary
by
the
department.
(4)
The
transactions
for
which
sales
or
use
tax
was
collected
and
the
rebate
is
sought
occurred
on
or
after
January
1,
2015,
but
before
January
1,
2025.
However,
the
total
amount
of
rebates
provided
pursuant
to
this
subsection
shall
not
exceed
the
lesser
of
the
following
amounts:
(a)
Twenty-five
percent
of
the
project
costs,
as
determined
by
the
department,
if
such
a
project
is
undertaken
by
the
owner
or
operator.
For
purposes
of
this
subparagraph
division,
“project
costs”
means
costs
incurred
by
the
owner
or
operator
in
connection
with
the
planning,
design,
construction,
and
installation
of
property
that
becomes
an
integral
part
of
the
project
under
contract
which
project
upon
completion
becomes
part
of
the
raceway
facility,
and
other
costs
incurred
by
the
owner
or
operator
in
connection
with
the
project
that
are
customarily
associated
with
the
renovation,
remodeling,
House
File
2464,
p.
4
reconstruction,
expansion,
equipping,
or
improvement
of
real
property.
Project
costs
shall
be
determined
after
the
department
receives
notification
of
completion
of
the
project
pursuant
to
paragraph
“b”
,
subparagraph
(2),
subparagraph
division
(b).
However,
if
rebates
cease
because
of
a
change
of
control
of
the
raceway
facility
as
provided
in
paragraph
“c”
,
subparagraph
(5),
project
costs
shall
be
determined
as
of
the
date
the
change
of
control
occurs.
(b)
Two
million
dollars.
(5)
Notwithstanding
subparagraph
(4),
the
rebate
of
sales
or
use
tax
shall
cease
for
transactions
occurring
on
or
after
the
date
of
the
change
of
control
of
the
raceway
facility.
(6)
The
raceway
facility
has
not
received
or
shall
not
receive
any
grants
under
the
community
attraction
and
tourism
program
pursuant
to
chapter
15F,
subchapter
II,
or
the
vision
Iowa
program
pursuant
to
chapter
15F,
subchapter
III.
d.
To
assist
the
department
in
determining
the
amount
of
the
rebate,
the
following
shall
occur:
(1)
For
rebates
pursuant
to
paragraph
“b”
,
subparagraph
(1),
the
owner
or
operator
shall
identify
to
the
department
retailers
located
at
the
raceway
facility
who
will
be
collecting
sales
tax.
The
department
shall
verify
such
identity
and
ensure
that
all
proper
permits
have
been
issued.
For
purposes
of
this
subsection,
advance
ticket
and
admissions
sales
shall
be
considered
occurring
at
the
raceway
facility
regardless
of
where
the
transactions
actually
occur.
(2)
For
rebates
pursuant
to
paragraph
“b”
,
subparagraph
(2),
the
contractor
shall
state
under
oath,
on
forms
provided
by
the
department,
the
amount
of
such
sales
of
tangible
personal
property,
or
services
furnished
and
used
in
the
performance
of
a
contract,
and
upon
which
sales
or
use
tax
has
been
paid,
and
shall
file
such
forms
with
the
owner
or
operator
which
has
made
any
written
contract
for
performance
by
the
contractor.
The
forms
shall
be
filed
by
the
contractor
with
the
owner
or
operator
before
final
settlement
is
made.
Any
contractor
who
willfully
makes
a
false
report
of
tax
paid
under
the
provisions
of
this
subsection
is
guilty
of
a
simple
misdemeanor
and
in
addition
shall
be
liable
for
the
payment
of
the
tax
and
any
applicable
penalty
and
interest.
e.
There
is
established
within
the
state
treasury
under
the
control
of
the
department
a
raceway
facility
tax
rebate
fund
consisting
of
the
amount
of
state
sales
tax
revenues
transferred
pursuant
to
section
423.2,
subsection
11,
paragraph
House
File
2464,
p.
5
“b”
,
subparagraph
(7).
An
account
is
created
within
the
fund
for
each
raceway
facility
meeting
the
qualifications
of
this
subsection.
Moneys
in
the
fund
shall
only
be
used
to
provide
rebates
of
state
sales
tax
pursuant
to
paragraph
“b”
,
subparagraph
(1).
The
total
amount
of
rebates
paid
from
the
fund
shall
not
exceed
the
amount
specified
in
paragraph
“c”
,
subparagraph
(4),
subparagraph
division
(a)
or
(b),
whichever
is
applicable.
Any
moneys
in
the
fund
which
represent
state
sales
tax
revenue
for
which
the
time
period
in
paragraph
“c”
for
receiving
a
rebate
has
expired,
or
which
otherwise
represent
state
sales
tax
revenue
that
has
become
ineligible
for
rebate
pursuant
to
this
subsection
shall
immediately
revert
to
the
general
fund
of
the
state.
f.
Upon
determining
that
the
conditions
and
requirements
of
this
subsection
and
the
department
are
met,
the
department
shall
issue
a
warrant
to
the
owner
or
operator
in
the
amount
equal
to
the
amount
claimed
and
verified
by
the
department.
g.
This
subsection
is
repealed
June
30,
2025,
or
thirty
days
following
the
date
on
which
an
amount
of
total
rebates
specified
in
paragraph
“c”
,
subparagraph
(4),
subparagraph
division
(a)
or
(b),
whichever
is
applicable,
has
been
provided
and
no
overpayment
of
rebates
exists,
or
thirty
days
following
the
date
on
which
rebates
cease
as
provided
in
paragraph
“c”
,
subparagraph
(5),
and
no
overpayment
of
rebates
exists,
whichever
is
earliest.
h.
If
the
amount
of
rebates
issued
to
an
owner
or
operator
under
this
subsection
exceeds
the
amount
allowed
under
this
subsection,
the
department
shall
seek
repayment
of
such
excess
amount.
The
repayment
of
rebates
pursuant
to
this
paragraph
shall
be
considered
a
tax
payment
due
and
payable
to
the
department
by
any
person
who
has
received
such
rebates,
and
the
failure
to
make
such
a
repayment
may
be
treated
by
the
department
in
the
same
manner
as
a
failure
to
pay
the
tax
shown
due
or
required
to
be
shown
due
with
the
filing
of
a
return
or
deposit
form.
In
addition,
the
amount
of
rebates
required
to
be
repaid
shall
constitute
a
lien
upon
the
real
property
that
comprises
the
raceway
facility
that
was
the
subject
of
the
rebate
regardless
of
the
identity
of
the
owner
or
operator
of
said
raceway
facility,
and
the
liability
shall
be
collected
in
the
same
manner
as
provided
in
section
422.26.
Amounts
required
to
be
repaid
pursuant
to
this
paragraph
shall
accrue
interest
at
the
rate
in
effect
under
section
421.7
from
the
date
of
the
warrant
issued
under
paragraph
“f”
.
House
File
2464,
p.
6
i.
The
director
shall
adopt
rules
for
the
administration
of
this
subsection.
______________________________
KRAIG
PAULSEN
Speaker
of
the
House
______________________________
PAM
JOCHUM
President
of
the
Senate
I
hereby
certify
that
this
bill
originated
in
the
House
and
is
known
as
House
File
2464,
Eighty-fifth
General
Assembly.
______________________________
CARMINE
BOAL
Chief
Clerk
of
the
House
Approved
_______________,
2014
______________________________
TERRY
E.
BRANSTAD
Governor
