Iowa-2021-HSB272-Introduced

H.F. _____ Section 1. Section 421.27, Code 2021, is amended to read as 1 follows: 2 421.27 Penalties. 3 1. Failure to timely file a return or deposit form . 4 a. If a person fails to file a return with the department 5 on or before the due date a return or deposit form , there shall 6 be added to the tax shown due or required to be shown due 7 remaining unpaid by the due date a penalty of ten five percent 8 of the remaining unpaid tax shown due or required to be shown 9 due . 10 b. In the case of a specified business with no tax shown 11 due or required to be shown due that fails to timely file an 12 income return, the specified business shall pay the greater of 13 the following penalty amounts: 14 (1) Two hundred dollars. 15 (2) An amount equal to ten five percent of the imputed Iowa 16 liability of the specified business, not to exceed twenty-five 17 thousand dollars. 18 c. The penalty, if assessed pursuant to paragraph “a” or 19 “b” , shall be in addition to any other penalty provided by law. 20 d. The penalty, if assessed pursuant to paragraph “a” or 21 “b” , shall be waived by the department upon a showing by the 22 taxpayer of any of the following conditions: 23 (1) An amount of tax greater than zero is required to be 24 shown due and at least ninety percent of the tax required to be 25 shown due has been paid by the due date of the tax. 26 (2) (a) Those taxpayers who are A taxpayer who is 27 required to file a monthly or quarterly returns, or monthly or 28 semimonthly deposit forms return may have one late return or 29 deposit form one late payment within a three-year period. 30 (b) If the taxpayer receives a waiver of a penalty under 31 this subparagraph, the taxpayer must make timely filings 32 and payments for three years prior to being eligible for 33 receiving another waiver under this subparagraph. If the 34 taxpayer receives a waiver under this subparagraph, the waiver 35 -1- LSB 2795YC (1) 89 jm/jh 1/ 15

H.F. _____ shall apply to penalties assessed under this subsection and 1 subsection 2. 2 (c) The use of any other penalty exception will shall 3 not count as a late return or deposit form late payment for 4 purposes of this exception receiving a waiver by the taxpayer 5 under this subparagraph . 6 (3) The death of a taxpayer, death of a member of the 7 immediate family of the taxpayer, or death of the person 8 directly responsible for filing the return and paying the tax, 9 when the death interferes with timely filing of a return or 10 timely payment of tax . 11 (4) The onset of serious, long-term illness or 12 hospitalization of the taxpayer, of a member of the immediate 13 family of the taxpayer, or of the person directly responsible 14 for filing the return and paying the tax when such illness or 15 hospitalization interferes with the timely filing of a return 16 or timely payment of tax . 17 (5) Destruction of records by fire, flood, or other act of 18 God when the destruction interferes with the timely filing of a 19 return or timely payment of tax . 20 (6) The taxpayer presents proof that the taxpayer relied 21 upon applicable, documented, written advice specifically 22 made to the taxpayer, to the taxpayer’s preparer, or to an 23 association representative of the taxpayer from the department, 24 state department of transportation, county treasurer, or 25 federal internal revenue service, whichever is appropriate, 26 that the reliance was the direct cause of the failure to file 27 or failure to pay, and that the advice has not been superseded 28 by a court decision, ruling by a quasi-judicial body, or the 29 adoption, amendment, or repeal of a rule or law. 30 (7) Reliance upon results in a previous audit was a direct 31 cause for the failure to file or the failure to pay where the 32 previous audit expressly and clearly addressed the issue and 33 the previous audit results have not been superseded by a court 34 decision, or the adoption, amendment, or repeal of a rule or 35 -2- LSB 2795YC (1) 89 jm/jh 2/ 15

H.F. _____ law. 1 (8) Under rules prescribed by the director, the taxpayer 2 presents documented proof of substantial authority to rely 3 upon a particular position or upon proof that all facts and 4 circumstances are disclosed on a return or deposit form . 5 (9) The return , deposit form, or payment is timely, but 6 erroneously, mailed with adequate postage to the internal 7 revenue service, another state agency, or a local government 8 agency and the taxpayer provides proof of timely mailing with 9 adequate postage. 10 (10) The tax has been paid by the wrong licensee and the 11 payments were timely remitted to the department for one or more 12 tax periods prior to notification by the department. 13 (11) The failure to file was discovered through a sanctioned 14 self-audit program conducted by the department. 15 (12) If the availability of funds in payment of tax required 16 to be made through electronic funds transfer is delayed and the 17 delay of availability is due to reasons beyond the control of 18 the taxpayer. “Electronic funds transfer” means any transfer 19 of funds, other than a transaction originated by check, draft, 20 or similar paper instrument, that is initiated through an 21 electronic terminal telephone, computer, magnetic tape, or 22 similar device for the purpose of ordering, instructing, or 23 authorizing a financial institution to debit or credit an 24 account. 25 (13) The failure to file a timely inheritance tax return 26 resulting solely from a disclaimer that required the personal 27 representative to file an inheritance tax return. The penalty 28 shall be waived if such return is filed and any tax due is paid 29 within the later of nine months from the date of death or sixty 30 days from the delivery or filing of the disclaimer pursuant to 31 section 633E.12 . 32 (14) That an Iowa inheritance tax return is filed for 33 an estate within the later of nine months from the date of 34 death or sixty days from the filing of a disclaimer by the 35 -3- LSB 2795YC (1) 89 jm/jh 3/ 15

H.F. _____ beneficiary of the estate refusing to take the property or 1 right or interest in the property. 2 2. Failure to timely pay the tax shown due , or the tax 3 required to be shown due, with the filing of a return or deposit 4 form . If a person fails to pay the tax shown due or required 5 to be shown due, on a return or deposit form on or before the 6 due date , there shall be added to the tax shown due or required 7 to be shown due remaining unpaid by the due date a penalty of 8 five percent of the unpaid tax due . The penalty shall be in 9 addition to any other penalty provided by law. The penalty, if 10 assessed, shall be waived by the department upon a showing by 11 the taxpayer of any of the following conditions: 12 a. At least ninety percent of the tax required to be 13 shown due has been paid by the due date of the tax Any reason 14 listed under subsection 1, paragraph “d” , except subsection 1, 15 paragraph “d” , subparagraph (11) . 16 b. The taxpayer voluntarily files an amended return and pays 17 all tax shown to be due on the return prior to any contact by 18 the department, except under a sanctioned self-audit program 19 conducted by the department. 20 c. (1) Except in the case of a final federal partnership 21 adjustment governed by subparagraph (2), the taxpayer 22 voluntarily files an amended return which includes a copy of 23 the federal document showing the final disposition or final 24 federal adjustments and pays any additional Iowa tax due within 25 one hundred eighty days of the final determination date of the 26 federal government’s audit. For purposes of this subparagraph, 27 “final determination date” means the same as defined in section 28 422.25 . 29 (2) (a) In the case of a final federal partnership 30 adjustment arising from a partnership level audit, with respect 31 to the audited partnership or a direct partner or indirect 32 partner of the audited partnership, the audited partnership, 33 direct partner, or indirect partner voluntarily and timely 34 complies with its reporting and payment requirements under 35 -4- LSB 2795YC (1) 89 jm/jh 4/ 15

H.F. _____ section 422.25A, subsection 4 or 5 . 1 (b) As used in this subparagraph, all words and phrases 2 defined in section 422.25A shall have the same meaning given 3 them by that section. 4 d. The taxpayer presents proof that the taxpayer relied 5 upon applicable, documented, written advice specifically 6 made to the taxpayer, to the taxpayer’s preparer, or to an 7 association representative of the taxpayer from the department, 8 state department of transportation, county treasurer, or 9 federal internal revenue service, whichever is appropriate, 10 that has not been superseded by a court decision, ruling by a 11 quasi-judicial body, or the adoption, amendment, or repeal of 12 a rule or law. 13 e. Reliance upon results in a previous audit was a direct 14 cause for the failure to pay the tax required to be shown due 15 where the previous audit expressly and clearly addressed the 16 issue and the previous audit results have not been superseded 17 by a court decision, or the adoption, amendment, or repeal of 18 a rule or law. 19 f. Under rules prescribed by the director, the taxpayer 20 presents documented proof of substantial authority to rely 21 upon a particular position or upon proof that all facts and 22 circumstances are disclosed on a return or deposit form. 23 g. The return, deposit form, or payment is timely, but 24 erroneously, mailed with adequate postage to the internal 25 revenue service, another state agency, or a local government 26 agency and the taxpayer provides proof of timely mailing with 27 adequate postage. 28 h. The tax has been paid by the wrong licensee and the 29 payments were timely remitted to the department for one or more 30 tax periods prior to notification by the department. 31 i. That an Iowa inheritance tax return is filed for an 32 estate within the later of nine months from the date of 33 death or sixty days from the filing of a disclaimer by the 34 beneficiary of the estate refusing to take the property or 35 -5- LSB 2795YC (1) 89 jm/jh 5/ 15

H.F. _____ right or interest in the property. 1 3. Audit and examination deficiencies. If any person 2 fails to pay the tax required to be shown due with the filing 3 of a return or deposit and the department discovers the 4 underpayment, there shall be added to the tax required to be 5 shown due a penalty of five percent of the unpaid tax required 6 to be shown due , which shall be in lieu of the penalty in 7 subsection 2 . The penalty, if assessed, shall be waived by 8 the department upon a showing by the taxpayer of any of the 9 following conditions: 10 a. At least ninety percent of the tax required to be shown 11 due has been paid by the due date. 12 b. The taxpayer presents proof that the taxpayer relied upon 13 applicable, documented, written advice specifically made to 14 the taxpayer, to the taxpayer’s preparer, or to an association 15 representative of the taxpayer from the department, state 16 department of transportation, county treasurer, or federal 17 internal revenue service, whichever is appropriate, that the 18 reliance was the direct cause for the failure to pay, and that 19 the advice has not been superseded by a court decision, ruling 20 by a quasi-judicial body, or the adoption, amendment, or repeal 21 of a rule or law. 22 c. Reliance upon results in a previous audit was a direct 23 cause for the failure to pay the tax shown due or required to 24 be shown due where the previous audit expressly and clearly 25 addressed the issue and the previous audit results have 26 not been superseded by a court decision, or the adoption, 27 amendment, or repeal of a rule or law. 28 d. Under rules prescribed by the director, the taxpayer 29 presents documented proof of substantial authority to rely 30 upon a particular position or upon proof that all facts and 31 circumstances are disclosed on a return or deposit form . 32 4. Willful failure to file or deposit pay . 33 a. (1) In case of willful failure to file a return 34 or deposit form with the intent to evade tax or a filing 35 -6- LSB 2795YC (1) 89 jm/jh 6/ 15

H.F. _____ requirement, willful failure to pay with the intent to evade 1 tax, or in case of willfully filing a false return or deposit 2 form with the intent to evade tax, in lieu of the penalties 3 otherwise provided in this section , there shall be added to the 4 tax remaining unpaid by the due date a penalty of seventy-five 5 percent shall be added to the amount shown due or required to 6 be shown as tax on the return or deposit form of the unpaid tax . 7 (2) In case of a willful failure by a specified business to 8 file an income return with no tax shown due or required to be 9 shown due with intent to evade a filing requirement, or in case 10 of willfully filing a false income return with no tax shown due 11 or required to be shown due with the intent to evade reporting 12 of Iowa-source income, the penalty imposed shall be the greater 13 of the following amounts: 14 (a) One thousand five hundred dollars. 15 (b) An amount equal to seventy-five percent of the imputed 16 Iowa liability of the specified business. 17 (3) If penalties are applicable for failure to file a 18 return or deposit form and failure to pay the tax shown due or 19 required to be shown due on the return or deposit form, the 20 penalty provision for failure to file shall be in lieu of the 21 penalty provisions for failure to pay the tax shown due or 22 required to be shown due on the return or deposit form, except 23 in the case of willful failure to file a return or deposit form 24 or willfully filing a false return or deposit form with intent 25 to evade tax. 26 b. The penalties imposed under this subsection are not 27 subject to waiver. 28 5. Failure to remit on extension. If a person fails to 29 remit at least ninety percent of the tax required to be shown 30 due by the time an extension for further time to file a return 31 is made, there shall be added to the tax shown due or required 32 to be shown due a penalty of ten percent of the unpaid tax due . 33 6. Liability —— fraudulent practice. A person who makes 34 an erroneous application for refund, credit, reimbursement, 35 -7- LSB 2795YC (1) 89 jm/jh 7/ 15

H.F. _____ rebate, or other payment shall be liable for any overpayment 1 received or tax liability reduced plus interest at the rate in 2 effect under section 421.7 . 3 a. In addition, a person commits a fraudulent practice and 4 is liable for a penalty equal to seventy-five percent of the 5 refund, credit, exemption, reimbursement, rebate, or other 6 payment or benefit being claimed if the person does any of the 7 following: 8 (1) Willfully makes a false or frivolous application for 9 refund, credit, exemption, reimbursement, rebate, or other 10 payment or benefit with intent to evade tax or with intent to 11 receive a refund, credit, exemption, reimbursement, rebate, or 12 other payment or benefit, to which the person is not entitled. 13 (2) Willfully submits any false information, document, 14 or document containing false information in support of an 15 application for refund, credit, exemption, reimbursement, 16 rebate, or other payment or benefit with the intent to evade 17 tax or with intent to receive a refund, credit exemption, 18 reimbursement, rebate, or other payment or benefit, to which 19 the person is not entitled . 20 (3) Willfully submits with any false information, document, 21 or document containing false information in support of an 22 application for refund with the intent to evade tax or with 23 intent to receive a refund, credit, exemption, reimbursement, 24 rebate, or other payment benefit, to which the person is not 25 entitled. 26 b. Payments, penalties, and interest due under this 27 subsection may be collected and enforced in the same manner as 28 the tax imposed. 29 c. Penalties imposed under this subsection are not subject 30 to waiver. 31 7. Failure to use required form or manner . If a person fails 32 to remit payment of taxes in the form or manner required by the 33 rules of the director, there shall be added to the amount of 34 the tax a penalty of five percent of the amount of tax shown 35 -8- LSB 2795YC (1) 89 jm/jh 8/ 15

H.F. _____ due or required to be shown due the payment remitted in the 1 incorrect form or manner not to exceed five hundred dollars 2 per instance of incorrect form or manner of payment . The 3 penalty shall be in addition to any other penalty provided by 4 law. The penalty imposed by this subsection shall be waived if 5 the taxpayer did not receive notification of the requirement 6 to remit tax payments electronically or if the electronic 7 transmission of the payment was not in a format or by means 8 specified by the director and the payment was made before the 9 taxpayer was notified of the requirement to remit tax payments 10 electronically. 11 8. Additional penalty. In addition to the penalties imposed 12 by this section , if a taxpayer fails to file a return within 13 ninety days of written notice demand issued by the department 14 pursuant to the rules implementing this subsection that the 15 taxpayer is required to do so, there shall be added to the 16 amount shown due or required to be shown due a penalty in the 17 amount of one thousand dollars. The penalty shall be waived by 18 the department upon a showing of good reason as defined by the 19 department by rule. 20 9. Definitions. As used in this section : 21 a. “Imputed Iowa liability” means any of the following: 22 (1) In the case of corporations other than corporations 23 described in section 422.34 or section 422.36, subsection 5 , 24 the corporation’s Iowa net income after the application of the 25 Iowa business activity ratio, if applicable, multiplied by the 26 top income tax rate imposed under section 422.33 for the tax 27 year. 28 (2) In the case of financial institutions as defined in 29 section 422.61 , the financial institution’s Iowa net income 30 after the application of the Iowa business activity ratio, if 31 applicable, multiplied by the franchise tax rate imposed under 32 section 422.63 for the tax year. 33 (3) In this case of all other entities, including 34 corporations described in section 422.36, subsection 5 , and all 35 -9- LSB 2795YC (1) 89 jm/jh 9/ 15

H.F. _____ other entities required to file an information return under 1 section 422.15, subsection 2 , the entity’s Iowa net income 2 after the application of the Iowa business activity ratio, if 3 applicable, multiplied by the top income tax rate imposed under 4 section 422.5A for the tax year. 5 b. “Income return” means an income tax return or information 6 return required under section 422.15, subsection 2 , or section 7 422.36 , 422.37 , or 422.62 . 8 c. “Specified business” means a partnership or other entity 9 required to file an information return under section 422.15, 10 subsection 2 , a corporation required to file a return under 11 section 422.36 or 422.37 , or a financial institution required 12 to file a return under section 422.62 . 13 Sec. 2. Section 421.60, subsection 2, paragraph d, Code 14 2021, is amended to read as follows: 15 d. (1) A taxpayer is permitted to designate in writing 16 the type of tax and tax periods to which any voluntary payment 17 relates, provided that separate written instructions accompany 18 the payment. This paragraph does not apply to jeopardy 19 assessments and does not apply if the department has to enforce 20 collection of the payment. 21 (2) As used in this paragraph, “tax period” means a period 22 of time for which a return is required. 23 Sec. 3. Section 422.25, subsection 4, Code 2021, is amended 24 to read as follows: 25 4. a. All payments received must be credited first, to 26 the penalty and interest accrued, and then to the tax due. If 27 payments in multiple tax periods are unpaid, payments received 28 shall be credited first to the penalty and interest accrued and 29 then tax due for the earliest period, and then credited to each 30 following tax period in chronological order from the earliest 31 tax period to the latest tax period. Payments required to be 32 made within a tax period must be credited first to the earliest 33 deposit period within the tax period. For purposes of this 34 subsection , the department shall not reapply prior payments 35 -10- LSB 2795YC (1) 89 jm/jh 10/ 15

H.F. _____ made on or before the due date of the original return by the 1 taxpayer to penalty or interest determined to be due after the 2 date of those prior payments, except that the taxpayer and the 3 department may agree to apply payments in accordance with rules 4 adopted by the director when there are both agreed and unagreed 5 to items as a result of an examination. 6 b. As used in this subsection, “tax period” means a period 7 of time for which a return is required. 8 Sec. 4. Section 423.14, subsection 2, paragraph b, Code 9 2021, is amended to read as follows: 10 b. The tax upon the use of all tangible personal property 11 and specified digital products other than that enumerated in 12 paragraph “a” , which is sold by a seller who is a retailer or 13 its agent that is not otherwise required to collect sales tax 14 under the provisions of this chapter , shall may be collected by 15 the retailer or agent and remitted to the department, pursuant 16 to the provisions of paragraph “e” , and sections 423.24 , 423.29 , 17 423.30 , 423.32 , and 423.33 . 18 Sec. 5. 1980 Iowa Acts, chapter 1156, section 32, is amended 19 to read as follows: 20 SEC. 32. The general assembly of the state of Iowa 21 hereby declares and states that it does not want any of the 22 provisions of Public Law No. 96-221 (94 stat. 132), section 23 501, subsection (a), paragraph (1), to apply with respect to 24 loans, mortgages, credit sales, and advances made in this 25 state; and that it does not want any of the provisions of 26 Public Law No. 96-221 (94 stat. 132), Part B (section 511, 27 subsections (a) and (b)), to apply with respect to loans made 28 in this state; and that it does not want any of the provisions 29 of any of the amendments contained in Public Law No. 96-221 (94 30 stat. 132), sections 521, 522 and 523 to apply with respect to 31 loans made in this state; and that it does not want any of the 32 provisions of Public Law No. 96-221 (94 stat. 132), section 524 33 to apply with respect to loans made in this state. It is the 34 intent of the general assembly of the state of Iowa in enacting 35 -11- LSB 2795YC (1) 89 jm/jh 11/ 15

H.F. _____ this section to exercise all authority granted by Congress 1 and to satisfy all requirements imposed by congress in Public 2 Law No. 96-221 (94 stat. 132), section 501 subsection (b), 3 paragraph (2), and section 512, and section 524 subsection (i), 4 paragraph (3), and section 525, for the purpose of rendering 5 the provisions of Public Law No. 96-221 (94 stat. 132), Title 6 V, inapplicable in this state. 7 Sec. 6. CANCELLATION OF UNUSED PERMITS. Notwithstanding 8 any other provision of law to the contrary, from July 1, 2021, 9 through December 31, 2021, the department of revenue shall have 10 authority to cancel withholding tax permits, sales tax permits, 11 or use tax permits that the department of revenue has verified 12 are no longer in use. 13 EXPLANATION 14 The inclusion of this explanation does not constitute agreement with 15 the explanation’s substance by the members of the general assembly. 16 This bill relates to tax collection and penalties, tax 17 permits, and loans made by state-chartered banks. 18 The bill updates language in Code section 421.27 (penalties) 19 to enhance the readability of the Code section. 20 The bill specifies that the taxpayer has the burden to prove 21 any of the conditions necessary to waive a penalty under Code 22 section 421.27. 23 The bill reduces the penalty for the failure of a person to 24 file a return from 10 percent of the tax shown due or required 25 to be shown due to 5 percent of the unpaid tax. 26 Currently, if a business fails to file a return, the business 27 pays a penalty of $200 or an amount equal to 10 percent of the 28 imputed Iowa liability, not to exceed $25,000, whichever is 29 greater. The bill modifies the penalty provision to specify 30 the business pays a penalty of $200 or an amount equal to 5 31 percent of the imputed Iowa liability, not to exceed $25,000, 32 whichever is greater. 33 The bill specifies the penalties for failure to timely file a 34 return are in addition to any other penalty provided by law. 35 -12- LSB 2795YC (1) 89 jm/jh 12/ 15

H.F. _____ The bill specifies that a taxpayer who is required to file a 1 quarterly or monthly return may have one late return or payment 2 over a three-year period before being ineligible to receive a 3 waiver of a penalty for failing to file a return. 4 Currently, there are 14 conditions a taxpayer may raise 5 in order to be eligible to receive the waiver of a penalty 6 for failing to file a return. The bill strikes one of these 7 conditions relating to the failure to file an inheritance tax 8 return that resulted from a disclaimer, so in such a situation 9 the penalty is not waivable. 10 The penalty for failing to timely pay tax due is modified by 11 the bill by assessing a 5 percent penalty against the unpaid 12 tax due rather than 5 percent of the tax. 13 The bill allows most conditions a taxpayer may raise in order 14 to be eligible to receive a waiver of a penalty for failing to 15 file a return to apply to the waiver of the penalty for failing 16 to timely pay a tax due. 17 If any person fails to pay the tax due and the department 18 of revenue discovers the underpayment, the bill modifies the 19 penalty from 5 percent of the tax to 5 percent of the unpaid 20 tax. The bill specifies such a penalty is in lieu of the 21 penalty for failing to timely pay a tax due. 22 The bill modifies the penalty for willful failure to file a 23 return or pay a tax from 75 percent of the tax required to be 24 shown or shown due to 75 percent of the unpaid tax. 25 The bill strikes a provision specifying which penalties are 26 applicable if a person fails to file a return or fails to pay 27 the tax, and willfully fails to file a return or willfully 28 files a false return. 29 The bill modifies the criminal offense of fraudulent 30 practice relating to state taxes to include actions of a 31 taxpayer who willfully submits any false information in support 32 of the taxpayer’s taxes with the intent to receive a refund, 33 credit exemption, reimbursement, rebate, or other payment or 34 benefit, to which the tax person is not entitled. 35 -13- LSB 2795YC (1) 89 jm/jh 13/ 15

H.F. _____ The bill modifies the criminal offense of fraudulent 1 practice relating to state taxes to include actions of a 2 taxpayer who willfully submits false information in support of 3 an application for a refund with the intent to evade tax or 4 receive a refund. 5 The bill provides that the criminal offense of fraudulent 6 practice is not waivable by the department of revenue. 7 The penalties for fraudulent practice range from a simple 8 misdemeanor to a class “C” felony depending upon the amount of 9 money or value of property involved. 10 The bill modifies the penalty for failure to use a required 11 tax form to include failure to use the required manner to remit 12 taxes. The penalty is modified from 5 percent of the amount of 13 tax due or required to be shown due to 5 percent of the amount 14 remitted in the incorrect form or manner not to exceed $500 per 15 instance of incorrect form or manner. The bill specifies the 16 penalty is in addition to any other penalty provided by law. 17 Currently, in addition to any other tax penalty, if a 18 taxpayer fails to file a return within 90 days of written 19 notice by the department of revenue, a $1,000 penalty is added 20 to the amount of tax shown due or required to be shown due. 21 The bill modifies the penalty by requiring the department of 22 revenue to send a written demand to file a tax return, and if 23 the taxpayer fails to file the return under rules adopted by 24 the department, a $1,000 penalty is assessed against the amount 25 due. 26 The bill specifies the order in which a payment will be 27 applied if a taxpayer has multiple unpaid tax periods. 28 The bill amends Code section 423.14(2)(b) by specifying 29 that a seller of tangible personal property and specified 30 digital products who is not otherwise required to collect sales 31 tax may, but is not required to, collect and remit use tax. 32 Current law requires the seller to collect and remit the use 33 tax for such sales. 34 The bill strikes a provision from 1980 Iowa Acts, chapter 35 -14- LSB 2795YC (1) 89 jm/jh 14/ 15

H.F. _____ 1156, section 32, restricting the ability of a state-chartered 1 bank to use interest or fees on loans authorized by the 2 chartering state in the issuance of loans in another state. 3 The bill allows the department of revenue to cancel 4 withholding tax, sales tax, or use tax permits the department 5 has verified are no longer in use. The department may cancel 6 the permits from July 1, 2021, through December 31, 2021. 7 -15- LSB 2795YC (1) 89 jm/jh 15/ 15