Bill Text: IA HSB156 | 2021-2022 | 89th General Assembly | Introduced

---

Bill Title: A bill for an act relating to state taxation and related laws of the state including the collection of tax, tax credits, the assessment and classification of property, taxes on electricity providers, fees for registration of vehicles, sales and use tax, and the authority of the director of revenue, and providing penalties, and including effective date and retroactive applicability provisions.

Spectrum: Committee Bill

Status: (Introduced - Dead) 2021-01-27 - Subcommittee: Bloomingdale, Gjerde and Nordman. H.J. 223. [HSB156 Detail]

Download: Iowa-2021-HSB156-Introduced.html

---

House Study Bill 156 - Introduced
SENATE/HOUSE FILE _____
BY (PROPOSED DEPARTMENT OF
REVENUE BILL)
A BILL FOR
An Act relating to state taxation and related laws of the state
including the collection of tax, tax credits, the assessment
and classification of property, taxes on electricity
providers, fees for registration of vehicles, sales and
use tax, and the authority of the director of revenue,
and providing penalties, and including effective date and
retroactive applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
TLSB 1405XD (11) 89
jm/jh

S.F. _____ H.F. _____
DIVISION I
TAX CREDITS FOR CERTAIN SALES TAXES PAID BY THIRD-PARTY
DEVELOPERS
Section 1. Section 15.331C, Code 2021, is amended to read
as follows:
15.331C Corporate tax credit for certain sales taxes paid by
third-party developer Third-party developer tax credit .
1. An eligible business may claim a corporate tax credit
in an amount equal to the sales and use taxes paid by a
third-party developer under chapter 423 for gas, electricity,
water, or sewer utility services, goods, wares, or merchandise,
or on services rendered, furnished, or performed to or for a
contractor or subcontractor and used in the fulfillment of a
written contract relating to the construction or equipping of
a facility of the eligible business. Taxes attributable to
intangible property and furniture and furnishings shall not
be included, but taxes attributable to racks, shelving, and
conveyor equipment to be used in a warehouse or distribution
center shall be included. Any credit in excess of the tax
liability for the tax year may be credited to the tax liability
for the following seven years or until depleted, whichever
occurs earlier. An eligible business may elect to receive a
refund of all or a portion of an unused tax credit.
2. A third-party developer shall state under oath, on
forms provided by the department of revenue, the amount of
taxes paid as described in subsection 1 and shall submit such
forms to the department of revenue. The taxes paid shall be
itemized to allow identification of the taxes attributable
to racks, shelving, and conveyor equipment to be used in a
warehouse or distribution center. After receiving the form
from the third-party developer, the department of revenue shall
issue a tax credit certificate to the eligible business equal
to the sales and use taxes paid by a third-party developer
under chapter 423 for gas, electricity, water, or sewer
utility services, goods, wares, or merchandise, or on services
-1-
LSB 1405XD (11) 89
jm/jh 1/ 45

S.F. _____ H.F. _____
rendered, furnished, or performed to or for a contractor or
subcontractor and used in the fulfillment of a written contract
relating to the construction or equipping of a facility.
The department of revenue shall also issue a tax credit
certificate to the eligible business equal to the taxes paid
and attributable to racks, shelving, and conveyor equipment to
be used in a warehouse or distribution center. The aggregate
combined total amount of tax refunds under section 15.331A for
taxes attributable to racks, shelving, and conveyor equipment
to be used in a warehouse or distribution center and of tax
credit certificates issued by the department of revenue for the
taxes paid and attributable to racks, shelving, and conveyor
equipment to be used in a warehouse or distribution center
shall not exceed five hundred thousand dollars in a fiscal
year. If an applicant for a tax credit certificate does not
receive a certificate for the taxes paid and attributable
to racks, shelving, and conveyor equipment to be used in a
warehouse or distribution center, the application shall be
considered in succeeding fiscal years. The eligible business
shall not claim a tax credit under this section unless a tax
credit certificate issued by the department of revenue is
included with the taxpayer’s tax return for the tax year for
which the tax credit is claimed. A tax credit certificate
shall contain the eligible business’s name, address, tax
identification number, the amount of the tax credit, and other
information deemed necessary by the department of revenue.
3. An individual may claim a tax credit under this section
of a partnership, limited liability company, S corporation,
estate, or trust electing to have income taxed directly to
the individual. The amount claimed by the individual shall
be based upon the pro rata share of the individual’s earnings
from the partnership, limited liability company, S corporation,
estate, or trust.
Sec. 2. Section 15.335A, subsection 2, paragraph d, Code
2021, is amended to read as follows:
-2-
LSB 1405XD (11) 89
jm/jh 2/ 45

S.F. _____ H.F. _____
d. “Sales tax refund” means the sales and use tax refund as
provided under section 15.331A or the corporate tax credit for
certain sales taxes paid by third-party developers developer
tax credit as provided under section 15.331C .
Sec. 3. NEW SECTION . 422.11T Third-party developer tax
credit.
The taxes imposed under this subchapter, less the credits
allowed under section 422.12, shall be reduced by the
third-party developer tax credit authorized pursuant to
section 15.331C for certain sales taxes paid by a third-party
developer.
Sec. 4. Section 422.33, subsection 19, Code 2021, is amended
to read as follows:
19. The taxes imposed under this subchapter shall be reduced
by a corporate third-party developer tax credit authorized
pursuant to section 15.331C for certain sales taxes paid by a
third-party developer.
Sec. 5. Section 422.60, subsection 8, Code 2021, is amended
to read as follows:
8. The taxes imposed under this subchapter shall be reduced
by a corporate third-party developer tax credit authorized
pursuant to section 15.331C for certain sales taxes paid by a
third-party developer.
Sec. 6. EFFECTIVE DATE. This division of this Act, being
deemed of immediate importance, takes effect upon enactment.
Sec. 7. RETROACTIVE APPLICABILITY. This division of this
Act applies retroactively to January 1, 2020, for tax years
beginning on or after that date.
DIVISION II
GEOTHERMAL HEAT PUMP INSTALLATION TAX CREDIT
Sec. 8. Section 422.12N, subsection 3, Code 2021, is amended
to read as follows:
3. a. A taxpayer must submit an application with the
department for each geothermal heat pump installation. The
application must be approved by the department prior to
-3-
LSB 1405XD (11) 89
jm/jh 3/ 45

S.F. _____ H.F. _____
claiming the credit, and the application must be filed by May 1
following the year of installation of the geothermal heat pump.
b. The department shall accept and approve applications
on a first-come, first-served basis until the maximum amount
of tax credits that may be claimed pursuant to subsection 4
is reached. If for a tax year the aggregate amount of tax
credits applied for exceeds the amount specified in subsection
4 , the department shall establish a wait list for tax credits.
Valid applications filed by the taxpayer by May 1 following the
year of the installation but not approved by the department
shall be placed on a wait list in the order the applications
were received and those applicants shall be given priority
for having their applications approved in succeeding years.
Placement on a wait list pursuant to this subsection shall not
constitute a promise binding the state. The availability of a
tax credit and approval of a tax credit application pursuant
to this section in a future year is contingent upon the
availability of tax credits in that particular year.
Sec. 9. LEGISLATIVE INTENT. It is the intent of the general
assembly that the section of this division amending section
422.12N is a conforming amendment consistent with current state
law, and the amendment does not change the application of the
current law but instead reflects current law both before and
after enactment of this division of this Act.
Sec. 10. EFFECTIVE DATE. This division of this Act, being
deemed of immediate importance, takes effect upon enactment.
Sec. 11. RETROACTIVE APPLICABILITY. This division of this
Act applies retroactively to January 1, 2019, for tax years
beginning on or after that date.
DIVISION III
TAXES ON ELECTRICITY PROVIDERS
Sec. 12. Section 437A.3, subsection 18, paragraph a,
subparagraph (2), Code 2021, is amended to read as follows:
(2) (a) An electric power generating plant , except a solar
energy conversion facility, where the acquisition cost of all
-4-
LSB 1405XD (11) 89
jm/jh 4/ 45

S.F. _____ H.F. _____
interests acquired exceeds ten million dollars.
(b) A solar energy conversion facility where the
acquisition cost of all interests exceeds one million dollars.
(c) For purposes of this subparagraph , “electric power
generating plant” :
(i) “Electric power generating plant” means each nameplate
rated electric power generating plant owned solely or jointly
by any person or electric power facility financed under the
provisions of chapter 28F or 476A in which electrical energy is
produced from other forms of energy, including all equipment
used in the production of such energy through its step-up
transformer.
(ii) “Solar energy conversion facility” means the same as
defined in section 476C.1.
DIVISION IV
FEE FOR NEW REGISTRATION —— VEHICLES
Sec. 13. Section 321.105A, subsection 2, paragraph a, Code
2021, is amended to read as follows:
a. For purposes of this subsection , “purchase price”
applies to the measure subject to the fee for new registration.
“Purchase price” shall be determined in the same manner as
“sales price” is determined for purposes of computing the tax
imposed upon the sales price of tangible personal property
under chapter 423 , pursuant to the definition of sales price
in section 423.1 , subject to the following exemptions . The
following are exempt from the fee for new registration imposed
by this subsection :
(1) Exempted from the purchase price of any vehicle subject
to registration is the The amount of any cash rebate which is
provided by a motor vehicle manufacturer to the purchaser of
the vehicle subject to registration so long as the rebate is
applied to the purchase price of the vehicle.
(2) (a) In transactions, except those subject to
subparagraph division (b), in which a vehicle subject to
registration is traded toward the purchase price of another
-5-
LSB 1405XD (11) 89
jm/jh 5/ 45

S.F. _____ H.F. _____
vehicle subject to registration, the purchase price is only
that portion of the purchase price which is not valued in
money, whether received in money or not, if the following
conditions are met:
(i) The vehicle traded to the retailer is the type of
vehicle normally sold in the regular course of the retailer’s
business.
(ii) The vehicle traded to the retailer is intended by the
retailer to be ultimately sold at retail or is intended to be
used by the retailer or another in the remanufacturing of a
like vehicle.
(b) In a transaction between persons, neither of which is
a retailer of vehicles subject to registration, in which a
vehicle subject to registration is traded toward the purchase
price of another vehicle subject to registration, the amount
of the trade-in value allowed on the vehicle subject to
registration traded is exempted from the purchase price .
(c) In order for the trade-in value to be excluded from
the purchase price, the name or names The person listed on the
title and registration of the newly acquired vehicle being
purchased must be the same name or names person listed on the
title and registration of the traded vehicle being traded in
order to exclude the trade-in value from the purchase price .
The Additionally, the following trades qualify under this
subparagraph division (c):
(i) A trade involving between spouses, if the traded vehicle
and the acquired vehicle are titled in the name of one or both
of the spouses, with no outside party named on the title.
(ii) A trade involving a grandparent, parent, or child
between lineal family members , including adopted and step
relationships, if the name of one of the family members from
the title of the traded vehicle is also on the title of the
newly acquired vehicle.
(iii) A trade involving a business an entity , if one of the
owners listed on the title of the traded vehicle is a business,
-6-
LSB 1405XD (11) 89
jm/jh 6/ 45

S.F. _____ H.F. _____
and an entity. If multiple names are on the names on the title
are must be separated by “or”. For purposes of trades under
this subparagraph subdivision, a sole proprietorship shall not
be distinguished from an individual owner.
(iv) A trade in which the vehicle being purchased is titled
in the name of an individual other than the owner of the traded
vehicle due to the cosigning requirements of a financial
institution.
(3) Exempted from the purchase price The fair market
value of a replacement motor vehicle owned by a motor vehicle
dealer licensed under chapter 322 which is being registered
by that dealer and is not otherwise exempt from the fee for
new registration , is the fair market value of a replaced motor
vehicle if all of the following conditions are met:
(a) The motor vehicle being registered is being placed in
service as a replacement motor vehicle for a motor vehicle
registered by the motor vehicle dealer.
(b) The motor vehicle being registered is taken from the
motor vehicle dealer’s inventory.
(c) Use tax or the fee for new registration on the motor
vehicle being replaced was paid by the motor vehicle dealer
when that motor vehicle was registered.
(d) The replaced motor vehicle is returned to the motor
vehicle dealer’s inventory for sale.
(e) The application for registration and title of the motor
vehicle being registered is filed with the county treasurer
within two weeks of the date the replaced motor vehicle is
returned to the motor vehicle dealer’s inventory.
(f) The motor vehicle being registered is placed in the same
or substantially similar service as the replaced motor vehicle.
Sec. 14. Section 321.105A, subsection 2, paragraph c,
subparagraph (1), Code 2021, is amended to read as follows:
(1) Entities listed in section 423.3, subsections 17, 18,
19, 20, 21, 22, 26, 27, 28, 31, and 79 , to the extent that
those entities are exempt from the tax imposed on the sale of
-7-
LSB 1405XD (11) 89
jm/jh 7/ 45

S.F. _____ H.F. _____
tangible personal property , consisting of goods, wares, or
merchandise, sold at retail in the state to consumers or users.
Sec. 15. Section 321.105A, subsection 2, paragraph c,
subparagraph (3), subparagraph divisions (a) and (c), Code
2021, are amended to read as follows:
(a) Vehicles subject to registration which are transferred
from a business or individual conducting a business within
this state as a sole proprietorship, partnership, or limited
liability company to a corporation formed by the sole
proprietorship, partnership, or limited liability company for
the purpose of continuing the business when all of the stock
of the corporation so formed is owned by the sole proprietor
and the sole proprietor’s spouse, by all the partners in the
case of a partnership, or by all the members in the case of a
limited liability company. This exemption is equally available
where the vehicles subject to registration are transferred from
a corporation to a sole proprietorship, partnership, or limited
liability company formed by that corporation for the purpose of
continuing the business when all of the incidents of ownership
are owned by the same person or persons who were stockholders
of the corporation. an entity doing business within this state
to another entity doing business within this state if all of
the following apply:
(i) The receiving entity was formed by the transferring
entity for the purpose of continuing the business.
(ii) (A) All ownership remains the same and in the
same proportions as the previous ownership with no fewer or
additional owners or replacement owners.
(B) In the case of a sole proprietorship, the spouse of the
sole proprietor may stand in place of the sole proprietor.
(c) This exemption applies to corporations that For an
exemption under this subparagraph, a receiving entity shall
have been in existence for not longer than twenty-four months.
Sec. 16. Section 321.105A, subsection 2, paragraph c,
subparagraphs (7), (8), (15), (18), and (19), Code 2021, are
-8-
LSB 1405XD (11) 89
jm/jh 8/ 45

S.F. _____ H.F. _____
amended to read as follows:
(7) Vehicles subject to registration in this state for
which the applicant for registration has paid to another state
a state sales, use, or occupational tax , or paid the equivalent
sales or excise tax of another country to that country .
However, if the tax paid to another state or country is less
than the fee for new registration calculated for the vehicle,
the difference shall be the amount to be collected as the fee
for new registration.
(8) A vehicle subject to registration in this state which is
owned by a person who has moved from another state or country
with the intention of changing residency to Iowa, provided that
the vehicle was purchased for use in the state or country from
which the applicant moved and was not, at or near the time of
purchase, purchased for use in Iowa.
(15) Vehicles purchased by a licensed wholesaler of new
motor vehicles licensed under section 322.27A for resale by the
same wholesaler .
(18) A vehicle delivered to a resident Native American
Indian on the a reservation.
(19) A vehicle transferred from one individual to another
individual as a gift in a transaction in which no consideration
is present.
Sec. 17. Section 321.105A, subsection 2, paragraph c,
subparagraph 25, unnumbered paragraph 1, Code 2021, is amended
to read as follows:
Vehicles subject to registration under this chapter with
a gross vehicle weight rating of less than sixteen thousand
pounds when purchased for lease and titled by the lessor
licensed pursuant to chapter 321F and actually leased for a
period of twelve six months or more if the lease of the vehicle
is subject to the fee for new registration under subsection
3 or exempt from the fee for new registration pursuant to
subsection 3 , paragraph “f” .
Sec. 18. Section 321.105A, subsection 3, paragraphs a and e,
-9-
LSB 1405XD (11) 89
jm/jh 9/ 45

S.F. _____ H.F. _____
Code 2021, are amended to read as follows:
a. A fee for new registration is imposed in an amount equal
to five percent of the leased price for each vehicle subject to
registration with a gross vehicle weight rating of less than
sixteen thousand pounds which is leased by a lessor licensed
pursuant to chapter 321F for a period of twelve six months
or more. The fee for new registration shall be paid by the
owner of the vehicle to the county treasurer from whom the
registration receipt or certificate of title is obtained. A
registration receipt for a vehicle subject to registration or
issuance of a certificate of title shall not be issued until
the fee for new registration is paid in the initial instance.
e. If the lease is terminated or voided prior to the
termination date contained in the lease agreement, no refund
shall be allowed for a fee for new registration previously paid
under this section , except as provided in section 322G.4 .
Sec. 19. Section 321.105A, subsection 7, Code 2021, is
amended to read as follows:
7. Penalty for false statement or evasion of fee Penalties .
a. False statement. A person who willfully makes a false
statement in regard to the purchase price of a vehicle subject
to a fee for new registration or willfully attempts in any
manner to evade payment of the fee required by this section
is guilty of a fraudulent practice. A person who willfully
makes a false statement in regard to the purchase price of
such a vehicle with the intent to evade payment of the fee for
new registration or willfully attempts in any manner to evade
payment of the fee required by this section shall be assessed
a penalty of seventy-five percent of the amount of the fee
unpaid and required to be paid on the actual purchase price
less trade-in allowance.
b. Evasion fee. An Iowa resident found to be in control
of a vehicle which is owned by a shell business and for which
the fee for new registration has not been paid, as provided
in section 321.55, subsection 2 , is guilty of a fraudulent
-10-
LSB 1405XD (11) 89
jm/jh 10/ 45

S.F. _____ H.F. _____
practice. An Iowa resident found to be in control of a vehicle
which is owned by a shell business and for which the fee for new
registration has not been paid, as provided in section 321.55,
subsection 2 , shall be assessed a penalty of seventy-five
percent of the amount of the fee unpaid and required to be paid
on the actual purchase price less trade-in allowance.
c. Failure to file. If a person required by this chapter to
file an application for certificate of title or registration
with the county treasurer fails to file such application or
registration on or before the due date for such application or
registration, a penalty in the amount of ten percent of the fee
for new registration due shall be added to the fee.
d. Underpayment. If a person required by this chapter to
file an application for certificate of title or registration
with the county treasurer files such application or
registration with any inaccurate information that results in
the person paying less than the full amount of the fee for new
registration, penalties, or interest that was due at the time
of application, a penalty in the amount of five percent of the
fee for new registration due shall be added to the fee.
DIVISION V
PENALTIES —— IMPUTED IOWA LIABILITY
Sec. 20. Section 421.27, subsection 9, paragraph a, Code
2021, is amended to read as follows:
a. “Imputed Iowa liability” means any of the following:
(1) In the case of corporations other than corporations
described in section 422.34 or section 422.36, subsection 5 ,
the corporation’s Iowa net income after the application of the
Iowa business activity ratio, if applicable, multiplied by the
top income tax rate imposed under section 422.33 for the tax
year , less any Iowa tax credits available to the corporation .
(2) In the case of financial institutions as defined in
section 422.61 , the financial institution’s Iowa net income
after the application of the Iowa business activity ratio, if
applicable, multiplied by the franchise tax rate imposed under
-11-
LSB 1405XD (11) 89
jm/jh 11/ 45

S.F. _____ H.F. _____
section 422.63 for the tax year , less any Iowa tax credits
available to the financial institution .
(3) In this case of all other entities, including
corporations described in section 422.36, subsection 5 , and all
other entities required to file an information return under
section 422.15, subsection 2 , the entity’s Iowa net income
after the application of the Iowa business activity ratio, if
applicable, multiplied by the top income tax rate imposed under
section 422.5A for the tax year , less any Iowa tax credits
available to the entity .
DIVISION VI
PARTNERSHIP AND PASS-THROUGH ENTITY AUDITS AND REPORTING
Sec. 21. Section 422.7, subsection 59, Code 2021, is amended
to read as follows:
59. Any income adjustment subtracted from federal taxable
income for an adjustment year pursuant to section 6225 of the
Internal Revenue Code and the regulations thereunder shall be
added back in computing net income of the partnership and the
partners for state tax purposes for the adjustment year.
Sec. 22. Section 422.25A, subsection 1, paragraph k,
subparagraph (1), Code 2021, is amended to read as follows:
(1) In the case of a federal partnership adjustment that
arises from a partnership level audit, the first day on which
no federal adjustments arising from that audit remain to
be finally determined, whether by internal revenue service
decision with respect to which all rights of appeal have
been waived or exhausted, by agreement, or, if appealed or
contested, by a final decision with respect to which all rights
of appeal have been waived or exhausted. For agreements
required to be signed by the internal revenue service and the
audited partnership, the final determination date is the date
on which the last party signed the agreement.
Sec. 23. Section 422.25A, subsection 4, Code 2021, is
amended to read as follows:
4. Reporting and payment requirements for audited
-12-
LSB 1405XD (11) 89
jm/jh 12/ 45

S.F. _____ H.F. _____
partnerships and their partners subject to final federal
partnership adjustments.
a. Unless an audited partnership makes the election in
subsection 5 , the audited a partnership shall do all of the
following for all final federal partnership adjustments no
later than ninety days after the final determination date of
the audited partnership :
(1) File a completed federal adjustments report.
(2) Notify each direct partner of such partner’s
distributive share of the adjustments in the manner and form
prescribed by the department by rule.
(3) File an amended composite return under section 422.13
if one was originally filed, and if applicable for withholding
from partners, file an amended withholding report under
section 422.16 , and pay the additional amount under this title
that would have been due had the final federal partnership
adjustments been reported properly as required, including any
applicable interest and penalties.
b. Unless an audited partnership paid an amount on behalf
of the direct partners of the audited partnership pursuant to
subsection 5 , all direct partners of the audited partnership
shall do all of the following no later than one hundred
eighty days after the final determination date of the audited
partnership :
(1) File a completed federal adjustments report reporting
the direct partner’s distributive share of the adjustments
required to be reported to such partners under paragraph “a” .
(2) If the direct partner is a tiered partner, notify all
partners that hold an interest directly in the tiered partner
of such partner’s distributive share of the adjustments in the
manner and form prescribed by the department by rule.
(3) If the direct partner is a tiered partner and subject to
section 422.13 , file an amended composite return under section
422.13 if such return was originally filed, and if applicable
for withholding from partners file an amended withholding
-13-
LSB 1405XD (11) 89
jm/jh 13/ 45

S.F. _____ H.F. _____
report under section 422.16 if one was originally required to
be filed.
(4) Pay any additional amount under this title that would
have been due had the final federal partnership adjustments
been reported properly as required, including any applicable
penalty and interest.
c. Unless a partnership or tiered partner paid an amount on
behalf of the partners pursuant to subsection 5 , each indirect
partner shall do all of the following:
(1) Within ninety days after the time for filing and
furnishing statements to tiered partners and their partners
as established by section 6226 of the Internal Revenue Code
and the regulations thereunder, file a completed federal
adjustments report.
(2) If the indirect partner is a tiered partner, within
ninety days after the time for filing and furnishing statements
to tiered partners and their partners as established by
section 6226 of the Internal Revenue Code and the regulations
thereunder but within sufficient time for all indirect partners
to also complete the requirements of this subsection , notify
all of the partners that hold an interest directly in the
tiered partner of such partner’s distributive share of the
adjustments in the manner and form prescribed by the department
by rule.
(3) Within ninety days after the time for filing and
furnishing statements to tiered partners and their partners
as established by section 6226 of the Internal Revenue Code
and the regulations thereunder, if the indirect partner
is a tiered partner and subject to section 422.13 , file an
amended composite return under section 422.13 if such return
was originally filed, and if applicable for withholding from
partners, file an amended withholding report under section
422.16 if one was originally required to be filed.
(4) Within ninety days after the time for filing and
furnishing statements to tiered partners and the partners of
-14-
LSB 1405XD (11) 89
jm/jh 14/ 45

S.F. _____ H.F. _____
the tiered partners as established by section 6226 of the
Internal Revenue Code and the regulations thereunder, pay any
additional amount due under this title , including any penalty
and interest that would have been due had the final federal
partnership adjustments been reported properly as required.
Sec. 24. Section 422.25A, subsection 5, paragraph a, Code
2021, is amended to read as follows:
a. An audited partnership, or a tiered partner of an audited
partnership that receives a notification of a final federal
partnership adjustment under subsection 4 of a final federal
partnership adjustment arising from a partnership level audit ,
may make an election to pay as provided under this subsection .
Sec. 25. Section 422.25A, subsection 5, paragraph b,
unnumbered paragraph 1, Code 2021, is amended to read as
follows:
An audited partnership or tiered partner makes shall make an
election to pay under this subsection by filing in the manner
and form prescribed by the department. The audited partnership
or tiered partner making an election to pay shall file a
completed federal adjustments report, notifying the department
in the manner and form prescribed by the department that it is
making the election under this subsection , notifying notify
each of the direct partners of such partner’s distributive
share of the adjustments, and paying pay on behalf of its
partners an amount calculated in paragraph “c” , including any
applicable penalty and interest. These requirements shall all
be fulfilled within one of the following time periods:
Sec. 26. Section 422.25A, subsection 5, paragraph c,
subparagraph (6), Code 2021, is amended to read as follows:
(6) (a) Total the amounts computed pursuant to
subparagraphs (2) through (5) and calculate any interest and
penalty as provided under this title . Notwithstanding any
provision of law to the contrary, interest and penalties on the
amount due by the audited partnership or tiered partner shall
be computed from the day after the due date of the reviewed
-15-
LSB 1405XD (11) 89
jm/jh 15/ 45

S.F. _____ H.F. _____
year return without extension, and shall be imposed as if the
audited partnership or tiered partner was required to pay tax
or show tax due on the original return for the reviewed year.
(b) The director may establish rules providing for the
calculation of amounts due under this subsection for federal
partnership adjustments that affect state tax owed but that do
not fit within the calculation in subparagraphs (2) through
(5), such as tax credit changes. The director may establish
rules that include changes related to state-specific issues
following a state partnership audit in the election to pay and
calculation of amounts due under this subsection, including
but not limited to allocation and apportionment. Interest and
penalty shall be computed in the same manner as described in
subparagraph division (a).
Sec. 27. Section 422.25A, subsection 7, paragraph d, Code
2021, is amended to read as follows:
d. Nothing in this section shall prohibit the department
from assessing direct partners and indirect partners for taxes
they owe in the event that an audited a partnership or tiered
partner fails to timely make any report or payment required by
this section for any reason.
Sec. 28. Section 422.25A, subsection 8, paragraph a, Code
2021, is amended to read as follows:
a. The department shall assess additional Iowa income
tax, interest, and penalties arising from final federal
partnership adjustments in the same manner as provided in
this title unless a different treatment is provided by this
subsection . Since final federal partnership adjustments are
determined at the audited partnership level, any assessment
issued to partners shall not be appealable by the partner.
The department may assess any taxes, including on-behalf-of
amounts, interest, and penalties arising from the final federal
partnership adjustments if it issues a notice of assessment to
the audited partnership, tiered partner, or other direct or
indirect partner on or before the expiration of the applicable
-16-
LSB 1405XD (11) 89
jm/jh 16/ 45

S.F. _____ H.F. _____
limitations period specified in section 422.25 .
Sec. 29. Section 422.25C, subsection 4, Code 2021, is
amended to read as follows:
4. If the department, the partnership or pass-through
entity, and owners representing a majority of the ownership
interests in the partnership or pass-through entity owners
agree, the provisions of this section may be applied to tax
years beginning before January 1, 2020.
Sec. 30. Section 422.35, subsection 26, Code 2021, is
amended to read as follows:
26. Any income adjustment subtracted from federal taxable
income for an adjustment year pursuant to section 6225 of the
Internal Revenue Code and the regulations thereunder shall be
added back in computing net income of the partnership and the
partners for state tax purposes for the adjustment year.
Sec. 31. EFFECTIVE DATE. This division of this Act, being
deemed of immediate importance, takes effect upon enactment.
Sec. 32. RETROACTIVE APPLICABILITY. This division of this
Act applies retroactively to July 1, 2020, and applies to
federal adjustments and federal partnership adjustments that
have a final determination date after July 1, 2020.
DIVISION VII
VEHICLE REGISTRATION RENEWALS AND COLLECTIONS BY COUNTY
TREASURERS —— CENTRALIZED COLLECTION UNIT —— DEPARTMENT OF
REVENUE
Sec. 33. Section 321.40, subsection 6, paragraph b, Code
2021, is amended to read as follows:
b. The A county treasurer of the county of the person’s
residence and in which the person’s vehicle is registered ,
in cooperation with the department of revenue, may collect
from a person applying for renewal of a vehicle registration
delinquent taxes , including penalties and interest owed to
the state from a person applying for renewal of a vehicle
registration , and nontax liabilities being collected by
the central collection unit of the department of revenue
-17-
LSB 1405XD (11) 89
jm/jh 17/ 45

S.F. _____ H.F. _____
pursuant to section 421.17, subsection 27 . The applicant
may remit full payment of the taxes balance owed including
applicable penalties and interest, along with a processing
fee of five dollars, to the county treasurer at the time of
registration renewal. Upon full payment of the required taxes
balance owed including applicable penalties and interest, the
processing fee, and the vehicle registration fee, the county
treasurer shall issue the registration to the person. A county
treasurer collecting on behalf of the department of revenue
shall update the vehicle registration records through the
distributed teleprocessing network on a daily basis for all
persons who have paid taxes or other balances owed pursuant to
this subsection . A county treasurer shall forward all funds
collected for the department of revenue to the department of
revenue.
Sec. 34. Section 421.17, subsection 27, paragraph k, Code
2021, is amended to read as follows:
k. A Pursuant to section 321.40, subsection 6, and rules
adopted pursuant to this paragraph, a county treasurer may
collect delinquent taxes, including penalties and interest,
administered by the department in conjunction with renewal
of a vehicle registration as provided in section 321.40,
subsection 6 , paragraph “b” , and rules adopted pursuant to
this paragraph and nontax liabilities being collected by
the central collection unit of the department of revenue .
County treasurers shall be given access to information
required for the collection of delinquent taxes, including
penalties and interest, as necessary to accomplish the
purposes of section 321.40, subsection 6 , paragraph “b” . The
confidentiality provisions of sections 422.20 and 422.72 do not
apply to information provided by the department to a county
treasurer pursuant to this paragraph. A county treasurer
collecting taxes, penalties, and interest administered by
the department is subject to the requirements and penalties
of the confidentiality laws of this state regarding tax or
-18-
LSB 1405XD (11) 89
jm/jh 18/ 45

S.F. _____ H.F. _____
indebtedness information. The director shall adopt rules to
implement the collection of tax debt as collections authorized
in section 321.40 and this paragraph.
DIVISION VIII
GARNISHMENT
Sec. 35. Section 626.31, Code 2021, is amended to read as
follows:
626.31 Return of garnishment —— action docketed —— distress
action.
Where parties have been garnished under a distress
warrant issued by the director of revenue or the director of
inspections and appeals, the officer shall make return thereof
to the court in the county where the garnishee lives, if the
garnishee lives in Iowa, otherwise in the county where the
taxpayer resides, if the taxpayer lives in Iowa; and if neither
the garnishee nor the taxpayer lives in Iowa, then to the
district court in Polk county, Iowa; the officer shall make
return in the same manner as a return is made on a garnishment
made under a writ of execution so far as they relate to
garnishments, and the clerk of the district court shall docket
an action thereon without fee the same as if a judgment had
been recovered against the taxpayer in the county where the
return is made, an execution issued thereon, and garnishment
made thereunder, and thereafter the proceedings shall conform
to proceedings in garnishment under attachments as nearly as
may be. The warrant shall be considered in all respects as a
final judgment.
DIVISION IX
SNOWMOBILES, ALL-TERRAIN VEHICLES, AND VESSELS —— PURCHASES ——
PAYMENT OF SALES OR USE TAX
Sec. 36. Section 321G.4, subsection 2, paragraph b, Code
2021, is amended to read as follows:
b. If the owner of the snowmobile is unable to present
satisfactory evidence that the sales or use tax has been paid,
the county recorder shall collect the tax. On or before the
-19-
LSB 1405XD (11) 89
jm/jh 19/ 45

S.F. _____ H.F. _____
tenth day of each month, the county recorder shall remit to
the department of revenue the amount of the taxes collected
during the preceding month, together with an itemized statement
on forms furnished by the department of revenue showing the
name of each taxpayer, the make and purchase price of each
snowmobile, the amount of tax paid, and such other information
as the department of revenue requires in a manner prescribed
by the department .
Sec. 37. Section 321I.4, subsection 2, paragraph b, Code
2021, is amended to read as follows:
b. If the owner of the all-terrain vehicle is unable to
present satisfactory evidence that the sales or use tax has
been paid, the county recorder shall collect the tax. On or
before the tenth day of each month, the county recorder shall
remit to the department of revenue the amount of the taxes
collected during the preceding month, together with an itemized
statement on forms furnished by the department of revenue
showing the name of each taxpayer, the make and purchase price
of each all-terrain vehicle, the amount of tax paid, and such
other information as the department of revenue requires in a
manner prescribed by the department .
Sec. 38. Section 462A.55, Code 2021, is amended to read as
follows:
462A.55 Sales or use tax to be paid before registration.
No vessel shall be registered by the county recorder until
there has been presented to the recorder receipts, bills of
sale, or other satisfactory evidence that the sales or use tax
has been paid for the purchase of the vessel. If the owner
of the vessel is unable to present satisfactory evidence that
the sales or use tax has been paid, the county recorder shall
collect the tax. On or before the tenth day of each month, the
county recorder shall remit to the department of revenue the
amount of the taxes so collected during the preceding month,
together with an itemized statement on forms furnished by the
department of revenue showing the name of each taxpayer, the
-20-
LSB 1405XD (11) 89
jm/jh 20/ 45

S.F. _____ H.F. _____
make and purchase price of each vessel and motor, the amount
of tax paid, and such other information as the department of
revenue shall require in a manner prescribed by the department .
DIVISION X
TANGIBLE PERSONAL PROPERTY —— RENTALS —— SALES AND USE TAX
Sec. 39. Section 9C.1, subsection 1, Code 2021, is amended
to read as follows:
1. As used in this chapter , the term “transient merchant”
shall mean and include every merchant, whether an individual
person, a firm, corporation, partnership, or association, and
whether owner, agent, bailee, consignee, or employee, who shall
bring or cause to be brought within the state of Iowa any
goods, wares, or merchandise tangible personal property of any
kind, nature, or description, with the intention of temporarily
or intermittently selling or offering to sell at retail such
goods, wares, or merchandise tangible personal property within
the state of Iowa. The term “transient merchant” shall also
mean and include every merchant, whether an individual person,
a firm, corporation, partnership, or an association, who shall
by itself, or by agent, consignee, or employee , temporarily or
intermittently engage in or conduct at one or more locations a
business within the state of Iowa for the sale at retail of any
goods, wares, or merchandise tangible personal property of any
nature or description.
Sec. 40. Section 9C.2, Code 2021, is amended to read as
follows:
9C.2 License required.
It shall be unlawful for any transient merchant to sell,
dispose of, or offer for sale any goods, wares or merchandise
tangible personal property of any kind, nature or description,
at any time or place within the state of Iowa, outside the
limits of any city in the state of Iowa, or within the limits
of any city in the state of Iowa that has not by ordinance
provided for the licensing of transient merchants, unless such
transient merchant has a valid license as provided in this
-21-
LSB 1405XD (11) 89
jm/jh 21/ 45

S.F. _____ H.F. _____
chapter and has complied with the regulations set forth in this
chapter .
Sec. 41. Section 9C.3, unnumbered paragraph 1, Code 2021,
is amended to read as follows:
Any transient merchant desiring a transient merchant’s
license shall at least ten days prior to the first day any sale
is made, file with the secretary of state of the state of Iowa
an application in writing duly verified by the person, firm,
corporation, partnership, or association proposing to sell
or offer to sell at retail any goods, wares, or merchandise
tangible personal property , or to engage in or conduct a
temporary or intermittent business for the sale at retail of
any goods, wares, or merchandise tangible personal property .
The application shall state the following facts:
Sec. 42. Section 9C.3, subsections 2, 5, 6, and 7, Code
2021, are amended to read as follows:
2. If the application be made by an agent, bailee,
consignee, or employee, the application shall so state and set
out the name and address of such agent, bailee, consignee, or
employee and shall also set out the name and address of the
owner of the goods, wares, and merchandise tangible personal
property to be sold or offered for sale.
5. The value of the goods tangible personal property to be
sold or offered for sale or the average inventory to be carried
by any such transient merchant engaging in or conducting an
intermittent or temporary business as the case may be.
6. The date or dates upon which said goods, wares, or
merchandise tangible personal property shall be sold or offered
for sale, or the date or dates upon which it is the intention
of the applicant to engage in or conduct a temporary or
intermittent business.
7. The location and address where such goods, wares, or
merchandise tangible personal property shall be sold or offered
for sale, or such business engaged in or conducted.
Sec. 43. Section 9C.4, subsection 1, Code 2021, is amended
-22-
LSB 1405XD (11) 89
jm/jh 22/ 45

S.F. _____ H.F. _____
to read as follows:
1. At the time and as part of filing the application, the
applicant shall file with the secretary of state a bond, with
sureties to be approved by the secretary of state, in a penal
sum two times the value of the goods, wares or merchandise
tangible personal property to be sold or offered for sale or
the average inventory to be carried by such transient merchant
engaged in or conducting an intermittent or temporary business
as the case may be as shown by the application, running to the
state of Iowa, for the use and benefit of any purchaser of any
merchandise tangible personal property from such transient
merchant who might have a cause of action of any nature arising
from or out of such sale against the applicant or the owner of
such merchandise property if other than the applicant. The
bond shall be conditioned on the payment by the applicant of
all taxes that may be payable by, or due from, the applicant
to the state of Iowa or any subdivision thereof, and shall
be further conditioned for the payment of any fines that may
be assessed by any court against the applicant for violation
of the provision of this chapter , as well as for the payment
and satisfaction of any and all causes of action against the
applicant commenced within one year from the date of sale
thereof, and arising from such sale. However, the aggregate
liability of the surety for all such taxes, fines, and causes
of action shall in no event exceed the principal sum of such
bond.
Sec. 44. Section 9C.6, Code 2021, is amended to read as
follows:
9C.6 License fee.
Prior to issuing the said transient merchant’s license,
the secretary of state shall collect for the state of Iowa a
license fee in the sum of twenty-five dollars for each day the
applicant, as shown by the application, shall propose to sell
or offer for sale any goods, wares or merchandise tangible
personal property , or for each day the applicant, as shown by
-23-
LSB 1405XD (11) 89
jm/jh 23/ 45

S.F. _____ H.F. _____
the application, proposes to engage in and conduct a business
as a transient merchant as the case may be.
Sec. 45. Section 9C.7, Code 2021, is amended to read as
follows:
9C.7 Misrepresentation.
It shall be unlawful for any transient merchant making sales
or engaging in or conducting a business under a transient
merchant’s license to make any false or misleading statements
or representation regarding any article sold or offered for
sale by such transient merchant as to condition, quality,
original cost, or cost to such transient merchant of any
article sold or offered for sale or to sell or offer for
sale goods, wares or merchandise tangible personal property
of a value in excess of the value thereof as shown by said
application, or to sell or offer for sale at retail any goods,
wares or merchandise tangible personal property , or to engage
in or conduct an intermittent or temporary business on any days
or at any place other than those shown by such license.
Sec. 46. Section 15.331A, subsection 1, Code 2021, is
amended to read as follows:
1. The eligible business shall be entitled to a refund
of the sales and use taxes paid under chapter 423 for gas,
electricity, water, or sewer utility services, goods, wares,
or merchandise tangible personal property , or on services
rendered, furnished, or performed to or for a contractor or
subcontractor and used in the fulfillment of a written contract
relating to the construction or equipping of a facility that is
part of a project of the eligible business. Taxes attributable
to intangible property and furniture and furnishings shall not
be refunded. However, an eligible business shall be entitled
to a refund for taxes attributable to racks, shelving, and
conveyor equipment to be used in a warehouse or distribution
center subject to section 15.331C .
Sec. 47. Section 15.331A, subsection 2, paragraphs a and b,
Code 2021, are amended to read as follows:
-24-
LSB 1405XD (11) 89
jm/jh 24/ 45

S.F. _____ H.F. _____
a. The contractor or subcontractor shall state under
oath, on forms provided by the department of revenue, the
amount of the sales of goods, wares, or merchandise tangible
personal property or services rendered, furnished, or performed
including water, sewer, gas, and electric utility services
upon which sales or use tax has been paid prior to the project
completion, and shall file the forms with the eligible business
before final settlement is made.
b. The eligible business shall, not more than one year
after project completion, make application to the department
of revenue for any refund of the amount of the sales and use
taxes paid pursuant to chapter 423 upon any goods, wares, or
merchandise tangible personal property , or services rendered,
furnished, or performed, including water, sewer, gas, and
electric utility services. The application shall be made in
the manner and upon forms to be provided by the department of
revenue, and the department of revenue shall audit the claim
and, if approved, issue a warrant to the eligible business in
the amount of the sales or use tax which has been paid to the
state of Iowa under a contract. A claim filed by the eligible
business in accordance with this section shall not be denied
by reason of a limitation provision set forth in chapter 421
or 423 .
Sec. 48. Section 15.331C, Code 2021, is amended to read as
follows:
15.331C Corporate tax credit for certain sales taxes paid by
third-party developer.
1. An eligible business may claim a corporate tax credit
in an amount equal to the sales and use taxes paid by a
third-party developer under chapter 423 for gas, electricity,
water, or sewer utility services, goods, wares, or merchandise
tangible personal property , or on services rendered, furnished,
or performed to or for a contractor or subcontractor and
used in the fulfillment of a written contract relating to
the construction or equipping of a facility of the eligible
-25-
LSB 1405XD (11) 89
jm/jh 25/ 45

S.F. _____ H.F. _____
business. Taxes attributable to intangible property and
furniture and furnishings shall not be included, but taxes
attributable to racks, shelving, and conveyor equipment to be
used in a warehouse or distribution center shall be included.
Any credit in excess of the tax liability for the tax year
may be credited to the tax liability for the following seven
years or until depleted, whichever occurs earlier. An eligible
business may elect to receive a refund of all or a portion of an
unused tax credit.
2. A third-party developer shall state under oath, on forms
provided by the department of revenue, the amount of taxes paid
as described in subsection 1 and shall submit such forms to
the department of revenue. The taxes paid shall be itemized
to allow identification of the taxes attributable to racks,
shelving, and conveyor equipment to be used in a warehouse
or distribution center. After receiving the form from the
third-party developer, the department of revenue shall issue
a tax credit certificate to the eligible business equal to
the sales and use taxes paid by a third-party developer under
chapter 423 for gas, electricity, water, or sewer utility
services, goods, wares, or merchandise tangible personal
property , or on services rendered, furnished, or performed
to or for a contractor or subcontractor and used in the
fulfillment of a written contract relating to the construction
or equipping of a facility. The department of revenue
shall also issue a tax credit certificate to the eligible
business equal to the taxes paid and attributable to racks,
shelving, and conveyor equipment to be used in a warehouse
or distribution center. The aggregate combined total amount
of tax refunds under section 15.331A for taxes attributable
to racks, shelving, and conveyor equipment to be used in a
warehouse or distribution center and of tax credit certificates
issued by the department of revenue for the taxes paid and
attributable to racks, shelving, and conveyor equipment
to be used in a warehouse or distribution center shall not
-26-
LSB 1405XD (11) 89
jm/jh 26/ 45

S.F. _____ H.F. _____
exceed five hundred thousand dollars in a fiscal year. If
an applicant for a tax credit certificate does not receive
a certificate for the taxes paid and attributable to racks,
shelving, and conveyor equipment to be used in a warehouse
or distribution center, the application shall be considered
in succeeding fiscal years. The eligible business shall not
claim a tax credit under this section unless a tax credit
certificate issued by the department of revenue is included
with the taxpayer’s tax return for the tax year for which the
tax credit is claimed. A tax credit certificate shall contain
the eligible business’s name, address, tax identification
number, the amount of the tax credit, and other information
deemed necessary by the department of revenue.
Sec. 49. Section 321.105A, subsection 3, paragraph f,
subparagraph (1), Code 2021, is amended to read as follows:
(1) Vehicles leased to entities listed in section 423.3,
subsections 17, 18, 19, 20, 21, 22, 26, 27, 28, 31, and 79 , to
the extent that those entities are exempt from the tax imposed
on the sale of tangible personal property , consisting of goods,
wares, or merchandise, sold at retail in the state to consumers
or users.
Sec. 50. Section 423.1, subsection 21, Code 2021, is amended
by striking the subsection.
Sec. 51. Section 423.1, subsection 50, Code 2021, is amended
to read as follows:
50. a. “Sales” or “sale” means any transfer, exchange, or
barter, conditional or otherwise, in any manner or by any means
whatsoever, for consideration, including but not limited to any
such transfer, exchange, or barter on a subscription basis.
b. “Sales” or “sale” includes a rental.
Sec. 52. Section 423.2, subsection 1, unnumbered paragraph
1, Code 2021, is amended to read as follows:
There is imposed a tax of six percent upon the sales price of
all sales of tangible personal property, consisting of goods,
wares, or merchandise, sold at retail in the state to consumers
-27-
LSB 1405XD (11) 89
jm/jh 27/ 45

S.F. _____ H.F. _____
or users except as otherwise provided in this subchapter .
Sec. 53. Section 423.3, subsections 13, 46, 47A, 75, and 76,
Code 2021, are amended to read as follows:
13. The sales price from the sale or rental of irrigation
equipment, whether installed above or below ground, to a
contractor or farmer if the equipment will be primarily used in
agricultural operations.
46. The sales price from sales or rentals to a printer or
publisher of the following: acetate; anti-halation backing;
antistatic spray; back lining; base material used as a carrier
for light sensitive emulsions; blankets; blow-ups; bronze
powder; carbon tissue; codas; color filters; color separations;
contacts; continuous tone separations; creative art; custom
dies and die cutting materials; dampener sleeves; dampening
solution; design and styling; diazo coating; dot etching; dot
etching solutions; drawings; drawsheets; driers; duplicate
films or prints; electronically digitized images; electrotypes;
end product of image modulation; engravings; etch solutions;
film; finished art or final art; fix; fixative spray; flats;
flying pasters; foils; goldenrod paper; gum; halftones;
illustrations; ink; ink paste; keylines; lacquer; lasering
images; layouts; lettering; line negatives and positives;
linotypes; lithographic offset plates; magnesium and zinc
etchings; masking paper; masks; masters; mats; mat service;
metal toner; models and modeling; mylar; negatives; nonoffset
spray; opaque film process paper; opaquing; padding compound;
paper stock; photographic materials: acids, plastic film,
desensitizer emulsion, exposure chemicals, fix, developers,
and paper; photography, day rate; photopolymer coating;
photographs; photostats; photo-display tape; phototypesetter
materials; pH-indicator sticks; positives; press pack; printing
cylinders; printing plates, all types; process lettering;
proof paper; proofs and proof processes, all types; pumice
powder; purchased author alterations; purchased composition;
purchased phototypesetting; purchased stripping and pasteups;
-28-
LSB 1405XD (11) 89
jm/jh 28/ 45

S.F. _____ H.F. _____
red litho tape; reducers; roller covering; screen tints;
sketches; stepped plates; stereotypes; strip types; substrate;
tints; tissue overlays; toners; transparencies; tympan;
typesetting; typography; varnishes; veloxes; wood mounts; and
any other items used in a like capacity to any of the above
enumerated items by the printer or publisher to complete a
finished product for sale at retail. Expendable tools and
supplies which are not enumerated in this subsection are
excluded from the exemption. “Printer” means that portion of a
person’s business engaged in printing that completes a finished
product for ultimate sale at retail or means that portion of a
person’s business used to complete a finished printed packaging
material used to package a product for ultimate sale at retail.
“Printer” does not mean an in-house printer who prints or
copyrights its own materials.
47A. The sales price from the sale or rental of central
office equipment or transmission equipment primarily used
by local exchange carriers and competitive local exchange
service providers as defined in section 476.96 , Code 2017;
by franchised cable television operators, mutual companies,
municipal utilities, cooperatives, and companies furnishing
communications services that are not subject to rate regulation
as provided in chapter 476 ; by long distance companies as
defined in section 477.10 ; or for a commercial mobile radio
service as defined in 47 C.F.R. §20.3 in the furnishing of
telecommunications services on a commercial basis. For the
purposes of this subsection , “central office equipment” means
equipment utilized in the initiating, processing, amplifying,
switching, or monitoring of telecommunications services.
“Transmission equipment” means equipment utilized in the process
of sending information from one location to another location.
“Central office equipment” and “transmission equipment” also
include ancillary equipment and apparatus which support,
regulate, control, repair, test, or enable such equipment to
accomplish its function.
-29-
LSB 1405XD (11) 89
jm/jh 29/ 45

S.F. _____ H.F. _____
75. The sales price from the sale or rental of aircraft;
the sale or rental of tangible personal property permanently
affixed or attached as a component part of the aircraft,
including but not limited to repair or replacement materials
or parts; and the sales price of all services used for
aircraft repair, remodeling, and maintenance services when
such services are performed on aircraft, aircraft engines, or
aircraft component materials or parts. For the purposes of
this exemption, “aircraft” means aircraft used in a scheduled
interstate federal aviation administration certificated air
carrier operation.
76. The sales price from the sale or rental of tangible
personal property permanently affixed or attached as a
component part of the aircraft, including but not limited
to repair or replacement materials or parts; and the sales
price of all services used for aircraft repair, remodeling,
and maintenance services when such services are performed on
aircraft, aircraft engines, or aircraft component materials or
parts. For the purposes of this exemption, “aircraft” means
aircraft used in nonscheduled interstate federal aviation
administration certificated air carrier operation operating
under 14 C.F.R. ch. 1, pt. 135 .
Sec. 54. Section 423.3, subsection 47, paragraph a,
unnumbered paragraph 1, Code 2021, is amended to read as
follows:
The sales price from the sale or rental of computers,
computer peripherals, machinery, equipment, replacement parts,
supplies, and materials used to construct or self-construct
computers, computer peripherals, machinery, equipment,
replacement parts, and supplies, if such items are any of the
following:
Sec. 55. Section 423.3, subsection 47, paragraph c,
unnumbered paragraph 1, Code 2021, is amended to read as
follows:
The sales price from the sale or rental of the following
-30-
LSB 1405XD (11) 89
jm/jh 30/ 45

S.F. _____ H.F. _____
shall not be exempt from the tax imposed by this subchapter :
Sec. 56. Section 423.3, subsection 60, unnumbered paragraph
1, Code 2021, is amended to read as follows:
The sales price from the sale or rental of prescription
drugs, durable medical equipment, mobility enhancing equipment,
prosthetic devices, and other medical devices intended for
human use or consumption. For the purposes of this subsection :
Sec. 57. Section 423.3, subsection 78, paragraphs a and c,
Code 2021, are amended to read as follows:
a. The sales price from the sale of tangible personal
property, specified digital products, or services rendered by
any entity where the profits from the sale of the tangible
personal property, specified digital products, or services
rendered, are used by or donated to a nonprofit entity that
is exempt from federal income taxation pursuant to section
501(c)(3) of the Internal Revenue Code, a government entity,
or a nonprofit private educational institution, and where the
entire proceeds from the sale or services profits are expended
for any of the following purposes:
(1) Educational.
(2) Religious.
(3) Charitable. A charitable act is an act done out of
goodwill, benevolence, and a desire to add to or to improve
the good of humankind in general or any class or portion of
humankind, with no pecuniary profit inuring to the person
performing the service or giving the gift.
c. Except as otherwise provided in subsection 97 , this
exemption does not apply to the sales price from games of
skill, games of chance, raffles, and bingo games as defined
in chapter 99B . This exemption is disallowed on the amount
of the sales price only to the extent the profits from the
sales, rental, or services are not used by or donated to the
appropriate entity and expended for educational, religious, or
charitable purposes.
Sec. 58. Section 423.3, subsection 82, paragraph a, Code
-31-
LSB 1405XD (11) 89
jm/jh 31/ 45

S.F. _____ H.F. _____
2021, is amended to read as follows:
a. The sales price from the sale or rental of core-making,
mold-making, and sand-handling machinery and equipment,
including replacement parts, directly and primarily used in the
mold-making process by a foundry.
Sec. 59. Section 423.3, subsection 88, Code 2021, is amended
to read as follows:
88. The sales price from the sale of building materials,
supplies, goods, wares, or merchandise tangible personal
property sold to a nonprofit Iowa affiliate of a nonprofit
international organization whose primary activity is the
promotion of the construction, remodeling, or rehabilitation
of one-family or two-family dwellings for use by low-income
families and where the building materials, supplies, goods,
wares, or merchandise or tangible personal property are used
in the construction, remodeling, or rehabilitation of such
dwellings.
Sec. 60. Section 423.3, subsection 89, paragraphs a and b,
Code 2021, are amended to read as follows:
a. The sales price of all goods, wares, or merchandise
tangible personal property sold, or of services furnished,
which are used in the fulfillment of a written construction
contract for the original construction of a building or
structure to be used as a collaborative educational facility.
b. The sales price of all goods, wares, or merchandise
tangible personal property sold, or of services furnished,
which are used in the fulfillment of a written construction
contract for the construction of additions or modifications
to a building or structure used as part of a collaborative
educational facility.
Sec. 61. Section 423.3, subsection 92, paragraph a,
subparagraph (1), Code 2021, is amended to read as follows:
(1) The sales price from the sale or rental of computers
and equipment that are necessary for the maintenance and
operation of a web search portal and property whether directly
-32-
LSB 1405XD (11) 89
jm/jh 32/ 45

S.F. _____ H.F. _____
or indirectly connected to the computers, including but
not limited to cooling systems, cooling towers, and other
temperature control infrastructure; power infrastructure for
transformation, distribution, or management of electricity used
for the maintenance and operation of the web search portal,
including but not limited to exterior dedicated business-owned
substations, backup power generation systems, battery systems,
and related infrastructure; and racking systems, cabling, and
trays, which are necessary for the maintenance and operation of
the web search portal.
Sec. 62. Section 423.3, subsection 92, paragraph b,
subparagraph (1), Code 2021, is amended to read as follows:
(1) The business of the purchaser or renter shall be as a
provider of a web search portal.
Sec. 63. Section 423.3, subsection 92, paragraph d, Code
2021, is amended to read as follows:
d. Failure to meet eighty percent of the minimum investment
amount requirement specified in paragraph “b” within the first
six years of operation from the date the web search portal
business initiates site preparation activities will result in
the web search portal business losing the right to claim this
exemption and the web search portal business shall pay all
sales or use tax that would have been due on the purchase or
rental or use of the items listed in this exemption, plus any
applicable penalty and interest imposed by statute.
Sec. 64. Section 423.3, subsection 93, paragraph a,
subparagraph (1), Code 2021, is amended to read as follows:
(1) The sales price from the sale or rental of computers
and equipment that are necessary for the maintenance and
operation of a web search portal business and property whether
directly or indirectly connected to the computers, including
but not limited to cooling systems, cooling towers, and other
temperature control infrastructure; power infrastructure for
transformation, distribution, or management of electricity used
for the maintenance and operation of the web search portal
-33-
LSB 1405XD (11) 89
jm/jh 33/ 45

S.F. _____ H.F. _____
business, including but not limited to exterior dedicated
business-owned substations, backup power generation systems,
battery systems, and related infrastructure; and racking
systems, cabling, and trays, which are necessary for the
maintenance and operation of the web search portal business.
Sec. 65. Section 423.3, subsection 93, paragraph b,
subparagraph (1), Code 2021, is amended to read as follows:
(1) The purchaser or renter shall be a web search portal
business.
Sec. 66. Section 423.3, subsection 93, paragraph d, Code
2021, is amended to read as follows:
d. Failure to meet eighty percent of the minimum investment
amount requirement specified in paragraph “b” within the first
six years of operation from the date the web search portal
business initiates site preparation activities will result in
the web search portal business losing the right to claim this
web search portal business exemption and the web search portal
business shall pay all sales or use tax that would have been
due on the purchase or rental or use of the items listed in this
exemption, plus any applicable penalty and interest imposed by
statute.
Sec. 67. Section 423.3, subsection 95, paragraph a,
subparagraph (1), Code 2021, is amended to read as follows:
(1) The sales price from the sale or rental of computers
and equipment that are necessary for the maintenance and
operation of a data center business and property whether
directly or indirectly connected to the computers, including
but not limited to cooling systems, cooling towers, and other
temperature control infrastructure; power infrastructure for
transformation, distribution, or management of electricity used
for the maintenance and operation of the data center business,
including but not limited to exterior dedicated business-owned
substations, backup power generation systems, battery systems,
and related infrastructure; and racking systems, cabling, and
trays, which are necessary for the maintenance and operation of
-34-
LSB 1405XD (11) 89
jm/jh 34/ 45

S.F. _____ H.F. _____
the data center business.
Sec. 68. Section 423.3, subsection 95, paragraph b,
subparagraph (1), Code 2021, is amended to read as follows:
(1) The purchaser or renter shall be a data center business.
Sec. 69. Section 423.3, subsection 95, paragraph d, Code
2021, is amended to read as follows:
d. Failure to meet eighty percent of the minimum investment
amount requirement specified in paragraph “b” within the first
six years of operation from the date the data center business
initiates site preparation activities will result in the data
center business losing the right to claim this data center
business exemption and the data center business shall pay all
sales or use tax that would have been due on the purchase or
rental or use of the items listed in this exemption, plus any
applicable penalty and interest imposed by statute.
Sec. 70. Section 423.4, subsection 1, paragraph b,
subparagraph (3), Code 2021, is amended to read as follows:
(3) The building materials, supplies, equipment, or
services furnished are not used in the performance of any
contract in connection with the operation of any municipal
utility engaged in selling gas, electricity, or heat to
the general public or in connection with the operation of
a municipal pay television system; and are not used in the
performance of a contract for a “project” “project” under
chapter 419 as defined in that chapter other than goods, wares,
or merchandise building materials, supplies, or equipment used
in the performance of a contract for a “project” “project”
under chapter 419 for which a bond issue was approved by
a municipality prior to July 1, 1968, or for which the
goods, wares, or merchandise building materials, supplies,
or equipment becomes an integral part of the project under
contract and at the completion of the project becomes public
property or is devoted to educational uses.
Sec. 71. Section 423.4, subsection 1, paragraph c, Code
2021, is amended to read as follows:
-35-
LSB 1405XD (11) 89
jm/jh 35/ 45

S.F. _____ H.F. _____
c. A contractor shall state under oath, on forms provided
by the department, the amount of such sales of goods, wares,
or merchandise building materials, supplies, or equipment ,
or services furnished and used in the performance of such
contract, and upon which sales or use tax has been paid,
and shall file such forms with the designated exempt entity
which has made any written contract for performance by the
contractor. The forms shall be filed by the contractor with
the designated exempt entity before final settlement is made.
Sec. 72. Section 423.31, subsection 4, Code 2021, is amended
to read as follows:
4. Every retailer at the time of making any return required
by this section shall compute and pay to the department the tax
due for the preceding period. The tax on sales prices from the
sale or rental of tangible personal property under a consumer
rental purchase agreement as defined in section 537.3604,
subsection 8 , is payable in the tax period of receipt.
Sec. 73. Section 423B.8, subsection 1, Code 2021, is amended
to read as follows:
1. Construction contractors may make application to the
department for a refund of the additional local sales and
services tax paid under this chapter by reason of taxes paid on
goods, wares, or merchandise building materials, supplies, or
equipment under the following conditions:
a. The goods, wares, or merchandise building materials,
supplies, or equipment are incorporated into an improvement to
real estate in fulfillment of a written contract fully executed
prior to the date of the imposition of a local sales and
services tax under this chapter . The refund shall not apply to
equipment transferred in fulfillment of a mixed construction
contract.
b. The contractor has paid to the department or to a
retailer the full amount of the state and local tax.
c. The claim is filed on forms provided by the department
and is filed within one year of the date the tax is paid.
-36-
LSB 1405XD (11) 89
jm/jh 36/ 45

S.F. _____ H.F. _____
DIVISION XI
INTEREST RATE SET BY DIRECTOR OF REVENUE
Sec. 74. Section 421.7, subsection 6, Code 2021, is amended
to read as follows:
6. In October November of each year the director shall cause
an advisory notice to be published in the Iowa administrative
bulletin and in a newspaper of general circulation in this
state, stating the rate of interest to be in effect on or
after January 1 of the following year, as established by this
section . The calculation and publication of the rate of
interest by the director is exempt from chapter 17A .
DIVISION XII
DUTIES OF ASSESSORS
Sec. 75. Section 441.17, subsection 2, Code 2021, is amended
to read as follows:
2. Cause to be assessed, in accordance with section 441.21 ,
all the property in the assessor’s county or city, except
property exempt from taxation, or the assessment of which is
otherwise provided for by law. However, an assessor or deputy
assessor shall not personally assess a property if the person
or a member of the person’s immediate family owns the property,
has a financial interest in the property, or has a financial
interest in the entity that owns the property. The director of
revenue shall adopt rules pursuant to chapter 17A to implement
and administer this subsection .
DIVISION XIII
CONFIDENTIAL INFORMATION —— DEPARTMENT OF REVENUE
Sec. 76. Section 422.20, subsection 5, paragraph a, Code
2021, is amended by adding the following new subparagraph:
NEW SUBPARAGRAPH . (7) A return as defined in section 421.6.
Sec. 77. Section 422.20, subsection 5, paragraph c, Code
2021, is amended to read as follows:
c. Notwithstanding paragraph “a” , when making final orders,
decisions, or opinions available for public inspection, the
department may disclose the items in paragraph “a” if the
-37-
LSB 1405XD (11) 89
jm/jh 37/ 45

S.F. _____ H.F. _____
department determines such information is relevant or necessary
to the resolution or decision of the appeal or case.
Sec. 78. Section 422.72, subsection 8, paragraph a, Code
2021, is amended by adding the following new subparagraph:
NEW SUBPARAGRAPH . (7) A return as defined in section 421.6.
Sec. 79. Section 422.72, subsection 8, paragraph c, Code
2021, is amended to read as follows:
c. Notwithstanding paragraph “a” , when making final orders,
decisions, or opinions available for public inspection, the
department may disclose the items in paragraph “a” if the
department determines such information is relevant or necessary
to the resolution or decision of the appeal or case.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
This bill relates to state taxation and related laws of
the state including the collection of tax, tax credits, the
assessment, valuation, and classification of property, fees
for registration of vehicles, sales and use tax, and the
authority of the director of revenue. The bill is organized
into divisions.
TAX CREDIT FOR CERTAIN SALES TAXES PAID BY THIRD-PARTY
DEVELOPERS. Currently, an eligible business may claim a
corporate tax credit in an amount equal to the sales and use
taxes paid by a third-party developer under Code chapter 423
for the construction or equipping of a facility of an eligible
business. An “eligible business” is defined under Code section
15.329 and means in part a business making an investment of $10
million or more in a community.
The bill allows an individual to claim the tax credit on an
individual return for certain sales tax paid by a third-party
developer, if a partnership, limited liability company, S
corporation, estate, or trust elects to have income taxed
directly to the individual.
Additionally, the bill changes the name of the corporate
-38-
LSB 1405XD (11) 89
jm/jh 38/ 45

S.F. _____ H.F. _____
tax credit to third-party developer tax credit because the tax
credit is now available against the individual income tax.
This division takes effect upon enactment and applies
retroactively January 1, 2020, for tax years beginning on or
after that date.
GEOTHERMAL HEAT PUMP INSTALLATION TAX CREDIT. The bill
requires an applicant for a geothermal heat pump tax credit
to file an application for the credit with the department of
revenue for each geothermal heat pump installation. The bill
requires the application to be filed by May 1 following the
year of installation.
This division takes effect upon enactment and applies
retroactively to January 1, 2019, for tax years beginning on
or after that date.
TAXES ON ELECTRICITY PROVIDERS. Under the current
replacement tax, the proportional tax revenue from a major
addition is allocated to the local jurisdiction where a major
addition is located. The bill lowers the threshold for the
classification of “major additions” of solar energy conversion
property under the replacement tax from $10 million to $1
million. The modified threshold allows a local jurisdiction
to receive tax revenue generated by a solar energy conversion
facility for major additions that exceed $1 million but does
not change the amount of tax due on solar energy conversion
facilities.
FEE FOR NEW REGISTRATION —— VEHICLES. The bill makes
numerous organizational, technical, and substantive changes to
Code section 321.105A.
The bill specifies that to be exempt from the fee for
new registration, the person listed on the title of a newly
acquired vehicle must be the same person listed on the title
and registration of the traded vehicle.
The bill specifies that in order to be exempt from the fee
for new registration, a trade must be between spouses rather
than involve spouses.
-39-
LSB 1405XD (11) 89
jm/jh 39/ 45

S.F. _____ H.F. _____
The bill exempts trades between lineal family members from
the fee for new vehicle registration. Currently, trades
between a grandparent, parent, child, or stepchild are exempt.
The bill specifies a sole proprietorship shall not be
distinguished from an individual owner for purposes of
calculating the new vehicle registration fee when exempting the
trade-in value from the purchase price.
The bill specifies that the fair market value of a
replacement motor vehicle owned by a motor vehicle dealer
is exempt from the new vehicle registration fee if certain
conditions are met under Code section 321.105A(2)(a)(3).
The bill specifies that a vehicle is not subject to the new
registration fee if the vehicle is transferred from an entity
doing business within the state to another entity in the state
and all of the following apply: the receiving entity was
formed by the transferring entity within the previous 24 months
for the purpose of continuing the business and all ownership
remains the same, except in the case of a sole proprietorship,
the spouse of the sole proprietor may stand in place of the
sole proprietor.
The bill provides that a vehicle subject to registration in
this state is exempt from the fee for new vehicle registration
to the extent the equivalent sales or excise tax of another
country has been paid to that country. Currently, a vehicle
subject to registration is exempt from the fee for new vehicle
registration to the extent state sales, use, or occupational
tax has been paid to another state.
The bill provides that a vehicle subject to registration in
this state which is owned by a person in another country is
exempt from the fee for new vehicle registration provided the
vehicle was purchased for use in the country from which the
owner moved, and was not purchased for use in Iowa. Currently,
a vehicle subject to registration is exempt from the fee for
new vehicle registration if the vehicle is owned by a person
in another state provided the vehicle was purchased for use in
-40-
LSB 1405XD (11) 89
jm/jh 40/ 45

S.F. _____ H.F. _____
the state from which the owner moved, and was not purchased for
use in Iowa.
The bill specifies that a vehicle purchased by a licensed
wholesaler of new motor vehicles under Code section 322.27A for
resale by the same wholesaler is exempt from the fee for new
registration.
The bill provides that a vehicle transferred from one
individual to another individual as a gift is exempt from the
fee for new vehicle registration.
The bill provides that a vehicle subject to registration
is subject to the fee for new registration if the vehicle is
leased for at least six months. Currently, a vehicle with
a gross weight rating of less than 16,000 pounds which is
leased for at least 12 months is subject to the fee for new
registration.
The bill specifies if a lease is voided prior to the
termination date contained in the lease agreement, no refund
is permitted for the fee for new registration previously paid,
except under certain circumstances. Currently, no refund of
such a fee is permitted if the lease is terminated prior to the
termination date except under certain circumstances.
The bill creates a new penalty for persons who fail to file
an application for certificate of title or registration on or
before the due date in the amount of 10 percent of the fee for
new registration due.
The bill creates a new penalty for persons who file an
application for certificate of title or registration with
inaccurate information that results in the person paying less
than the full amount of the fee for new registration. The
penalty equals 5 percent of the fee for new registration due.
PENALTIES —— IMPUTED IOWA LIABILITY. Currently, in
determining the amount of penalty to assess under Code section
421.27, the department of revenue assesses a percentage of the
imputed Iowa liability of a business who fails to file a return
or deposit form. The bill adjusts the formula to calculate
-41-
LSB 1405XD (11) 89
jm/jh 41/ 45

S.F. _____ H.F. _____
“imputed Iowa liability” by allowing the taxpayer to include
any tax credits available to the taxpayer prior to calculating
the penalty amount when using “imputed Iowa liability”.
PARTNERSHIP AND PASS-THROUGH ENTITY AUDITS AND REPORTING.
The bill makes numerous technical changes to partnership and
pass-through entity audits and reporting requirements enacted
in 2020 Iowa Acts, chapter 1118.
The bill allows the director of revenue to establish rules
for the calculation of amounts due for federal partnership
adjustments that affect state tax owed that do not fit within
the calculations provided by Code section 422.5A(5)(c).
The bill also allows the director of revenue to establish
rules that include state-specific issues following a state
partnership audit in the election to pay and calculation of
amounts due.
Currently, if the department of revenue, the partnership
or pass-through entity, and the partnership or pass-through
entity owners agree, the provisions of Code section 422.25C
may be applied to tax years beginning before January 1, 2020.
The bill allows the department of revenue, the partnership or
pass-through entity, and owners representing a majority of the
ownership interests in the partnership or pass-through entity
to enter into an agreement to allow the provisions of Code
section 422.25C to apply to tax years beginning before January
1, 2020.
This division takes effect upon enactment and applies
retroactively to July 1, 2020, and applies to federal
adjustments and federal partnership adjustments that have a
final determination date after July 1, 2020.
COUNTY TREASURER —— CENTRALIZED COLLECTION UNIT OF THE
DEPARTMENT OF REVENUE. Currently, a county treasurer may
collect delinquent tax revenue owed the state. The bill allows
a county treasurer to also collect nontax liabilities being
collected by the centralized collection unit of the department
of revenue.
-42-
LSB 1405XD (11) 89
jm/jh 42/ 45

S.F. _____ H.F. _____
GARNISHMENT. The bill specifies that a distress warrant
issued by the director of revenue or the director of
inspections and appeals shall be considered a final judgment.
A distress warrant generally directs the sheriff to seize,
garnish, or levy upon, and sell, any real or personal property
belonging to the taxpayer to satisfy the amount of any
delinquency.
SNOWMOBILES, ALL-TERRAIN VEHICLES, AND VESSELS —— PURCHASES
—— PAYMENT OF SALES OR USE TAX. Currently, if the owner of
a vessel (watercraft), snowmobile, or all-terrain vehicle is
unable to present satisfactory evidence that the sales or use
tax on the purchase has been paid, the county recorder is
required to collect the sales or use tax, and remit the amount
of taxes along with an itemized statement by the 10th day of
each month showing detailed information about the collection of
the tax. The bill strikes the requirement the county recorder
prepare and send such an itemized statement to the department
of revenue, but does require the county recorder to remit the
tax in a manner prescribed by the department.
TANGIBLE PERSONAL PROPERTY. 2020 Iowa Acts, chapter 1118,
struck numerous instances of the phrase “goods, wares, or
merchandise” in order to update the language used in the
Code. The bill changes additional instances of the phrase
“goods, wares, or merchandise” to “tangible personal property”
in Code sections 15.331A (sales and use tax refund), 15.331C
(third-party developer tax credit as changed in the bill),
and 321.105A (fee for new registration) and Code chapters 9C
(transient merchants) and 423 (streamlined sales and use tax).
CONSTRUCTION MATERIALS —— SALES AND USE TAX. The bill
changes other instances of the phrase “goods, wares, or
merchandise” to “building materials, supplies, or equipment” in
Code sections 423.4(1) (refunds) and 423B.8(1) (construction
contractor refunds).
NONPROFIT ORGANIZATIONS —— SALES AND USE TAX EXEMPTION.
Currently, a sales and use tax exemption is allowed on the sale
-43-
LSB 1405XD (11) 89
jm/jh 43/ 45

S.F. _____ H.F. _____
of tangible personal property, specified digital products,
or services rendered where the profits from the sale or
services rendered are used by or donated to a nonprofit, and
the entire proceeds from the sale or services are expended for
educational, religious, or charitable purposes.
The bill enhances the readability of the sales and use tax
exemption by specifying that the sales and use tax exemption
applies when the entire profits from the sales or services
rendered are used by or donated to a nonprofit, and the entire
profits are expended for educational, religious, or charitable
purposes.
RENTALS —— SALES AND USE TAX EXEMPTION. The bill includes
the term “rental” in the definition of “sale” or “sales” in
Code chapter 423 (streamlined sales and use tax), and strikes
the term “rental” when it appears with the phrase “sale or
rental” in Code sections 423.3 (exemptions) and 423.31(4)
(filing of sales tax returns and payment of sales tax). The
change has the effect of making more rental transactions exempt
from the sales or use tax in Code section 423.3.
INTEREST RATE SET BY DIRECTOR OF REVENUE. Currently, in
October of each year the director of revenue sets the rate of
interest to be used on interest-bearing obligations arising
under certain Code chapters to be in effect on or after January
1 of the following year. The bill changes the month the rate is
set by the director from October to November.
DUTIES OF ASSESSORS. The bill strikes a provision
prohibiting an assessor or deputy assessor from personally
assessing a property owned by an immediate family member of the
assessor or deputy assessor.
CONFIDENTIAL INFORMATION —— DEPARTMENT OF REVENUE.
Currently, the department of revenue redacts certain
information from the record in an appeal or contested case
pursuant to Code sections 422.20 (individual tax cases) and
422.72 (other tax cases). The bill adds a tax return to the
list of confidential information to be redacted in an appeal or
-44-
LSB 1405XD (11) 89
jm/jh 44/ 45

S.F. _____ H.F. _____
contested case under Code sections 422.20 and 422.72.
The director currently has the authority to disclose
confidential information when making final orders, decisions,
or opinions available for public inspection, if it is necessary
to the resolution or decision of the appeal or case. The bill
expands the authority of the director of revenue to disclose
confidential information to include when it is relevant or
necessary to the resolution or decision of the appeal or case.
-45-
LSB 1405XD (11) 89
jm/jh 45/ 45