Bill Text: IA HSB678 | 2013-2014 | 85th General Assembly | Introduced
Bill Title: A study bill for providing for the rebate of state sales and use tax to the owner or operator of a raceway facility, and providing penalties.
Spectrum: Unknown
Status: (N/A - Dead) 2014-03-20 - In Ways and Means [HSB678 Detail]
Download: Iowa-2013-HSB678-Introduced.html
House
Study
Bill
678
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
WAYS
AND
MEANS
BILL
BY
CHAIRPERSON
SANDS)
A
BILL
FOR
An
Act
providing
for
the
rebate
of
state
sales
and
use
tax
to
1
the
owner
or
operator
of
a
raceway
facility,
and
providing
2
penalties.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
TLSB
6184YC
(1)
85
mm/sc
H.F.
_____
Section
1.
Section
423.2,
subsection
11,
paragraph
b,
Code
1
2014,
is
amended
by
adding
the
following
new
subparagraph:
2
NEW
SUBPARAGRAPH
.
(7)
Beginning
the
first
day
of
the
3
quarter
following
the
effective
date
of
this
Act,
transfer
4
to
the
raceway
facility
tax
rebate
fund
created
in
section
5
423.4,
subsection
11,
paragraph
“e”
,
that
portion
of
the
6
sales
tax
receipts
collected
and
remitted
upon
sales
of
7
tangible
personal
property
or
services
furnished
by
retailers
8
at
a
raceway
facility
meeting
the
qualifications
of
section
9
423.4,
subsection
11,
that
remains
after
the
transfers
10
required
in
subparagraphs
(1)
through
(6)
of
this
paragraph
11
“b”
.
This
subparagraph
is
repealed
June
30,
2025,
or
thirty
12
days
following
the
date
on
which
an
amount
of
total
rebates
13
specified
in
section
423.4,
subsection
11,
paragraph
“c”
,
14
subparagraph
(4),
subparagraph
division
(a)
or
(b),
whichever
15
is
applicable,
has
been
provided
or
thirty
days
following
the
16
date
on
which
rebates
cease
as
provided
in
section
423.4,
17
subsection
11,
paragraph
“c”
,
subparagraph
(5),
whichever
is
18
earliest.
19
Sec.
2.
Section
423.4,
Code
2014,
is
amended
by
adding
the
20
following
new
subsection:
21
NEW
SUBSECTION
.
11.
a.
For
purposes
of
this
subsection:
22
(1)
“Change
of
control”
means
a
change
in
ownership
such
23
that
the
fair
that
was
the
owner
or
operator
on
the
effective
24
date
of
this
Act
ceases
to
own
a
majority
of
the
equity
25
interests
in
the
raceway
facility.
26
(2)
“Fair”
means
the
same
as
defined
in
section
174.1.
27
(3)
“Owner
or
operator”
means
a
fair
that
is
the
owner
or
28
operator
of
a
raceway
facility
and
is
a
promoter
of
races.
29
(4)
“Population”
means
the
population
based
upon
the
2010
30
certified
federal
census.
31
(5)
“Raceway
facility”
means
a
raceway
facility
located
32
as
part
of
a
racetrack
and
entertainment
complex
and
located
33
on
fairgrounds,
as
defined
in
section
174.1,
in
a
city
with
a
34
population
of
at
least
seven
thousand
but
not
more
than
seven
35
-1-
LSB
6184YC
(1)
85
mm/sc
1/
8
H.F.
_____
thousand
five
hundred
residents,
which
city
is
located
in
a
1
county
with
a
population
of
at
least
thirty-three
thousand
2
but
not
more
than
thirty-three
thousand
four
hundred
fifty
3
residents,
and
which
facility
was
placed
in
service
before
the
4
effective
date
of
this
Act.
5
b.
The
owner
or
operator
of
a
raceway
facility
may
apply
to
6
the
department
for
a
rebate
of
the
following:
7
(1)
Sales
tax
imposed
and
collected
by
retailers
upon
8
sales
of
tangible
personal
property
or
services
furnished
to
9
purchasers
at
the
raceway
facility.
Notwithstanding
the
state
10
sales
tax
imposed
in
section
423.2,
a
sales
tax
rebate
issued
11
pursuant
to
this
subparagraph
shall
not
exceed
the
amounts
12
transferred
to
the
raceway
facility
tax
rebate
fund
pursuant
to
13
section
423.2,
subsection
11,
paragraph
“b”
,
subparagraph
(7).
14
(2)
(a)
Sales
or
use
tax
upon
the
sales
price
of
all
15
tangible
personal
property,
or
from
services
furnished
to
a
16
contractor,
used
in
the
fulfillment
of
a
written
contract
with
17
the
owner
or
operator
if
the
property
becomes
an
integral
part
18
of
the
project
under
contract
and
at
the
completion
of
the
19
project
becomes
part
of
the
raceway
facility.
20
(b)
The
rebate
available
under
this
subparagraph
shall
be
21
limited
to
one
project
per
raceway
facility.
If
such
a
project
22
is
undertaken,
the
owner
or
operator
of
the
raceway
facility
23
shall
notify
the
department
upon
completion
of
the
project.
24
(c)
Notwithstanding
the
state
sales
tax
imposed
in
section
25
423.2,
a
sales
tax
rebate
issued
pursuant
to
this
subparagraph
26
shall
not
exceed
the
amounts
remaining
after
the
transfers
27
required
under
section
423.2,
subsection
11,
paragraph
“b”
,
28
subparagraphs
(1)
through
(6),
have
been
made
from
the
total
29
amount
of
sales
tax
for
which
the
rebate
is
requested.
30
(d)
Notwithstanding
the
state
use
tax
imposed
in
section
31
423.5,
a
use
tax
rebate
issued
pursuant
to
this
subparagraph
32
shall
not
exceed
the
amounts
remaining
after
the
transfers
33
required
under
section
423.43,
subsection
1,
have
been
made
34
from
the
total
amount
of
use
tax
for
which
the
rebate
is
35
-2-
LSB
6184YC
(1)
85
mm/sc
2/
8
H.F.
_____
requested.
1
c.
The
rebate
may
be
obtained
only
in
the
following
amounts
2
and
manner
and
only
under
the
following
conditions:
3
(1)
For
rebates
pursuant
to
paragraph
“b”
,
subparagraph
(1),
4
on
forms
furnished
by
the
department
within
the
time
period
5
provided
by
the
department
by
rule,
which
time
period
shall
not
6
be
longer
than
quarterly.
7
(2)
For
rebates
pursuant
to
paragraph
“b”
,
subparagraph
(2),
8
on
forms
furnished
by
the
department
within
the
time
period
9
provided
by
the
department
by
rule,
but
not
more
than
one
year
10
after
the
final
settlement
has
been
made.
11
(3)
The
owner
or
operator
shall
provide
information
as
12
deemed
necessary
by
the
department.
13
(4)
The
transactions
for
which
sales
or
use
tax
was
14
collected
and
the
rebate
is
sought
occurred
on
or
after
January
15
1,
2015,
but
before
January
1,
2025.
However,
the
total
amount
16
of
rebates
provided
pursuant
to
this
subsection
shall
not
17
exceed
the
lesser
of
the
following
amounts:
18
(a)
Twenty-five
percent
of
the
project
costs,
as
determined
19
by
the
department,
if
such
a
project
is
undertaken
by
the
owner
20
or
operator.
For
purposes
of
this
subparagraph
division,
21
“project
costs”
means
costs
incurred
by
the
owner
or
operator
22
in
connection
with
the
planning,
design,
construction,
and
23
installation
of
property
that
becomes
an
integral
part
of
the
24
project
under
contract
which
project
upon
completion
becomes
25
part
of
the
raceway
facility,
and
other
costs
incurred
by
26
the
owner
or
operator
in
connection
with
the
project
that
27
are
customarily
associated
with
the
renovation,
remodeling,
28
reconstruction,
expansion,
equipping,
or
improvement
of
29
real
property.
Project
costs
shall
be
determined
after
the
30
department
receives
notification
of
completion
of
the
project
31
pursuant
to
paragraph
“b”
,
subparagraph
(2),
subparagraph
32
division
(b).
However,
if
rebates
cease
because
of
a
change
of
33
control
of
the
raceway
facility
as
provided
in
paragraph
“c”
,
34
subparagraph
(5),
project
costs
shall
be
determined
as
of
the
35
-3-
LSB
6184YC
(1)
85
mm/sc
3/
8
H.F.
_____
date
the
change
of
control
occurs.
1
(b)
Two
million
dollars.
2
(5)
Notwithstanding
subparagraph
(4),
the
rebate
of
sales
3
or
use
tax
shall
cease
for
transactions
occurring
on
or
after
4
the
date
of
the
change
of
control
of
the
raceway
facility.
5
(6)
The
raceway
facility
has
not
received
or
shall
not
6
receive
any
grants
under
the
community
attraction
and
tourism
7
program
pursuant
to
chapter
15F,
subchapter
II,
or
the
vision
8
Iowa
program
pursuant
to
chapter
15F,
subchapter
III.
9
d.
To
assist
the
department
in
determining
the
amount
of
the
10
rebate,
the
following
shall
occur:
11
(1)
For
rebates
pursuant
to
paragraph
“b”
,
subparagraph
12
(1),
the
owner
or
operator
shall
identify
to
the
department
13
retailers
located
at
the
raceway
facility
who
will
be
14
collecting
sales
tax.
The
department
shall
verify
such
15
identity
and
ensure
that
all
proper
permits
have
been
issued.
16
For
purposes
of
this
subsection,
advance
ticket
and
admissions
17
sales
shall
be
considered
occurring
at
the
raceway
facility
18
regardless
of
where
the
transactions
actually
occur.
19
(2)
For
rebates
pursuant
to
paragraph
“b”
,
subparagraph
(2),
20
the
contractor
shall
state
under
oath,
on
forms
provided
by
21
the
department,
the
amount
of
such
sales
of
tangible
personal
22
property,
or
services
furnished
and
used
in
the
performance
23
of
a
contract,
and
upon
which
sales
or
use
tax
has
been
paid,
24
and
shall
file
such
forms
with
the
owner
or
operator
which
has
25
made
any
written
contract
for
performance
by
the
contractor.
26
The
forms
shall
be
filed
by
the
contractor
with
the
owner
or
27
operator
before
final
settlement
is
made.
Any
contractor
who
28
willfully
makes
a
false
report
of
tax
paid
under
the
provisions
29
of
this
subsection
is
guilty
of
a
simple
misdemeanor
and
in
30
addition
shall
be
liable
for
the
payment
of
the
tax
and
any
31
applicable
penalty
and
interest.
32
e.
There
is
established
within
the
state
treasury
under
33
the
control
of
the
department
a
raceway
facility
tax
rebate
34
fund
consisting
of
the
amount
of
state
sales
tax
revenues
35
-4-
LSB
6184YC
(1)
85
mm/sc
4/
8
H.F.
_____
transferred
pursuant
to
section
423.2,
subsection
11,
paragraph
1
“b”
,
subparagraph
(7).
An
account
is
created
within
the
2
fund
for
each
raceway
facility
meeting
the
qualifications
of
3
this
subsection.
Moneys
in
the
fund
shall
only
be
used
to
4
provide
rebates
of
state
sales
tax
pursuant
to
paragraph
“b”
,
5
subparagraph
(1).
The
total
amount
of
rebates
paid
from
the
6
fund
shall
not
exceed
the
amount
specified
in
paragraph
“c”
,
7
subparagraph
(4),
subparagraph
division
(a)
or
(b),
whichever
8
is
applicable.
Any
moneys
in
the
fund
which
represent
state
9
sales
tax
revenue
for
which
the
time
period
in
paragraph
“c”
for
10
receiving
a
rebate
has
expired,
or
which
otherwise
represent
11
state
sales
tax
revenue
that
has
become
ineligible
for
rebate
12
pursuant
to
this
subsection
shall
immediately
revert
to
the
13
general
fund
of
the
state.
14
f.
Upon
determining
that
the
conditions
and
requirements
15
of
this
subsection
and
the
department
are
met,
the
department
16
shall
issue
a
warrant
to
the
owner
or
operator
in
the
amount
17
equal
to
the
amount
claimed
and
verified
by
the
department.
18
g.
This
subsection
is
repealed
June
30,
2025,
or
thirty
19
days
following
the
date
on
which
an
amount
of
total
rebates
20
specified
in
paragraph
“c”
,
subparagraph
(4),
subparagraph
21
division
(a)
or
(b),
whichever
is
applicable,
has
been
provided
22
and
no
overpayment
of
rebates
exists,
or
thirty
days
following
23
the
date
on
which
rebates
cease
as
provided
in
paragraph
24
“c”
,
subparagraph
(5),
and
no
overpayment
of
rebates
exists,
25
whichever
is
earliest.
26
h.
If
the
amount
of
rebates
issued
to
an
owner
or
operator
27
under
this
subsection
exceeds
the
amount
allowed
under
this
28
subsection,
the
department
shall
seek
repayment
of
such
excess
29
amount.
The
repayment
of
rebates
pursuant
to
this
paragraph
30
shall
be
considered
a
tax
payment
due
and
payable
to
the
31
department
by
any
person
who
has
received
such
rebates,
and
32
the
failure
to
make
such
a
repayment
may
be
treated
by
the
33
department
in
the
same
manner
as
a
failure
to
pay
the
tax
shown
34
due
or
required
to
be
shown
due
with
the
filing
of
a
return
35
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85
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8
H.F.
_____
or
deposit
form.
In
addition,
the
amount
of
rebates
required
1
to
be
repaid
shall
constitute
a
lien
upon
the
real
property
2
that
comprises
the
raceway
facility
that
was
the
subject
of
3
the
rebate
regardless
of
the
identity
of
the
owner
or
operator
4
of
said
raceway
facility,
and
the
liability
shall
be
collected
5
in
the
same
manner
as
provided
in
section
422.26.
Amounts
6
required
to
be
repaid
pursuant
to
this
paragraph
shall
accrue
7
interest
at
the
rate
in
effect
under
section
421.7
from
the
8
date
of
the
warrant
issued
under
paragraph
“f”
.
9
i.
The
director
shall
adopt
rules
for
the
administration
of
10
this
subsection.
11
EXPLANATION
12
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
13
the
explanation’s
substance
by
the
members
of
the
general
assembly.
14
This
bill
authorizes
the
department
of
revenue
to
rebate
15
sales
and
use
tax
for
certain
transactions
related
to
a
16
raceway
facility.
To
be
eligible
for
the
rebate
the
raceway
17
facility
must
be
located
on
fairgrounds,
and
must
be
located
18
in
a
city
with
a
population
between
7,000
and
7,500,
which
19
city
is
located
in
a
county
with
a
population
between
33,000
20
and
33,450.
In
addition,
the
raceway
facility
must
have
been
21
placed
in
service
before
the
effective
date
of
the
bill.
22
The
person
eligible
to
receive
the
rebate
is
the
owner
or
23
operator
of
the
raceway
facility.
“Owner
or
operator”
means
24
a
fair
that
is
the
owner
or
operator
of
a
raceway
facility
and
25
is
the
promoter
of
races.
“Fair”
means
the
same
as
defined
26
in
Code
section
174.1
and
generally
means
an
organization
27
incorporated
under
the
laws
of
Iowa
that
holds
fair
events
and
28
meets
certain
property
ownership
requirements.
29
The
rebate
applies
to
two
types
of
transactions.
One,
the
30
state
sales
tax
collected
upon
tangible
personal
property
or
31
services
furnished
to
purchasers
at
the
raceway
facility.
Two,
32
the
state
sales
or
use
tax
paid
in
fulfillment
of
a
written
33
contract
with
the
owner
or
operator
if
the
property
becomes
an
34
integral
part
of
the
project
under
contract
and
upon
completion
35
-6-
LSB
6184YC
(1)
85
mm/sc
6/
8
H.F.
_____
of
the
project
becomes
part
of
the
raceway
facility.
This
1
rebate
is
limited
to
one
project
per
raceway
facility.
The
2
rebates
only
apply
to
transactions
occurring
on
or
after
3
January
1,
2015,
but
before
January
1,
2025,
and
are
limited
4
to
a
maximum
of
$2
million
or
an
amount
equal
to
25
percent
of
5
the
project
costs
if
such
a
project
is
undertaken,
whichever
is
6
less.
“Project
costs”
is
defined
in
the
bill.
7
With
regard
to
the
rebate
of
sales
tax
revenues
collected
8
upon
tangible
personal
property
or
services
furnished
to
9
purchasers
at
the
raceway
facility,
the
bill
creates
a
raceway
10
facility
tax
rebate
fund
consisting
of
the
remaining
amount
11
of
state
sales
tax
revenue
from
these
transactions
after
12
subtracting
the
local
option
sales
tax
under
Code
chapter
423B,
13
the
natural
resources
and
outdoor
recreation
trust
transfer
14
pursuant
to
Article
VII,
section
10,
of
the
Constitution
of
15
the
State
of
Iowa
if
applicable,
the
secure
an
advanced
vision
16
for
education
fund
transfer
pursuant
to
Code
section
423F.2,
17
and
any
transfers
required,
if
applicable,
to
a
baseball
and
18
softball
tournament
facility
and
movie
site
sales
tax
rebate
19
fund,
flood
mitigation
sales
tax
increment
fund,
or
Iowa
20
reinvestment
Act
sales
tax
increment
fund.
Rebates
from
these
21
transactions
are
paid
only
from
this
rebate
fund,
are
limited
22
to
the
amounts
in
the
fund,
and
are
made
on
forms
furnished
by
23
the
department
of
revenue.
24
With
regard
to
the
rebate
of
sales
or
use
tax
paid
in
25
fulfillment
of
a
written
contract
with
the
owner
or
operator,
26
the
bill
specifies
that
the
rebate
of
sales
tax
shall
not
27
exceed
the
amount
remaining
after
the
transfers
listed
above
28
have
been
subtracted
from
the
total
amount
of
the
sales
tax
29
rebate
requested,
as
applicable.
The
bill
also
specifies
that
30
the
rebate
of
use
tax
shall
not
exceed
the
amount
remaining
31
after
subtracting
the
local
option
taxes
under
Code
chapter
32
423B
and
the
secure
an
advanced
vision
for
education
fund
33
transfer
pursuant
to
Code
section
423F.2.
A
contractor
34
that
has
a
written
contract
with
the
owner
or
operator
is
35
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required
to
provide
information
under
oath
to
the
owner
or
1
operator
regarding
the
amount
of
property
or
services
used
in
2
performance
of
the
contract
upon
which
sales
or
use
tax
has
3
been
paid.
A
contractor
who
willfully
makes
a
false
report
is
4
guilty
of
a
simple
misdemeanor
and
is
liable
for
the
payment
5
of
the
tax
and
any
applicable
penalty
and
interest.
A
simple
6
misdemeanor
is
punishable
by
confinement
for
no
more
than
7
30
days
or
a
fine
of
at
least
$65
but
not
more
than
$625
or
8
by
both.
Rebates
from
these
transactions
are
made
on
forms
9
furnished
by
the
department
of
revenue.
10
The
rebate
ceases
if
control
of
the
facility
changes.
A
11
change
in
control
will
occur
when
the
fair
that
is
the
owner
12
or
operator
on
the
effective
date
of
the
bill
ceases
to
own
a
13
majority
of
the
equity
interests
in
the
raceway
facility.
The
14
rebate
provision
is
repealed
June
30,
2025,
or
30
days
after
15
a
total
of
$2
million
or
an
amount
equal
to
25
percent
of
the
16
project
costs
if
such
a
project
is
undertaken,
whichever
is
17
less,
have
been
rebated,
or
30
days
following
the
change
of
18
control
causing
the
rebates
to
cease,
whichever
occurs
earlier.
19
If
the
amount
of
rebates
issued
exceed
the
amount
of
20
rebates
allowed
under
the
bill,
the
department
of
revenue
21
shall
seek
repayment
from
the
person
who
received
the
excess
22
rebates
in
the
same
manner
as
it
does
other
tax
payments.
The
23
excess
rebates
shall
also
be
a
lien
on
the
real
property
that
24
comprises
the
raceway
facility,
regardless
of
the
identity
of
25
the
owner
or
operator.
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