Bill Text: IA HSB694 | 2023-2024 | 90th General Assembly | Introduced
Bill Title: A bill for an act relating to the administration of state taxation, the lottery, and alcoholic beverages under the purview of the department of revenue, making appropriations, and including effective date and retroactive applicability provisions.
Spectrum: Committee Bill
Status: (Introduced - Dead) 2024-02-14 - Subcommittee recommends passage. Vote Total: 2-0. [HSB694 Detail]
Download: Iowa-2023-HSB694-Introduced.html
House
Study
Bill
694
-
Introduced
SENATE/HOUSE
FILE
_____
BY
(PROPOSED
DEPARTMENT
OF
REVENUE
BILL)
A
BILL
FOR
An
Act
relating
to
the
administration
of
state
taxation,
the
1
lottery,
and
alcoholic
beverages
under
the
purview
of
the
2
department
of
revenue,
making
appropriations,
and
including
3
effective
date
and
retroactive
applicability
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
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DIVISION
I
1
DISCLOSURE
OF
TAX
INFORMATION
2
Section
1.
Section
421.19,
subsection
2,
Code
2024,
is
3
amended
by
striking
the
subsection
and
inserting
in
lieu
4
thereof
the
following:
5
2.
The
department
may
notify
federal,
state,
or
local
6
law
enforcement
agencies,
and
may
disclose
state
returns,
7
state
return
information,
state
investigative
information
or
8
audit
information,
or
any
other
state
information,
to
such
law
9
enforcement
agencies,
if
the
department
has
information
that
10
indicates
any
of
the
following:
11
a.
A
person
intentionally
filed
a
false
claim,
affidavit,
12
return,
or
other
information
with
intent
to
evade
tax
or
obtain
13
a
refund,
credit,
or
other
benefit
from
the
department.
14
b.
A
person
failed
to
file
a
return
with
intent
to
evade
a
15
tax
or
filing
requirement.
16
c.
A
person
failed
to
pay
with
the
intent
to
evade
tax.
17
d.
A
person
committed
any
act
or
omission
that
is
a
criminal
18
offense
under
a
provision
of
this
title
administered
by
the
19
department.
20
Sec.
2.
Section
421.19,
subsection
3,
Code
2024,
is
amended
21
to
read
as
follows:
22
3.
Notwithstanding
sections
422.20
and
422.72
,
the
23
department
may
disclose
state
returns,
state
return
24
information,
state
investigative
or
audit
information,
or
any
25
other
state
information
as
provided
under
this
section
.
26
Sec.
3.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
27
deemed
of
immediate
importance,
takes
effect
upon
enactment.
28
DIVISION
II
29
ANNUAL
REPORTING
30
Sec.
4.
Section
421.60,
subsection
2,
paragraph
k,
Code
31
2024,
is
amended
by
striking
the
paragraph.
32
Sec.
5.
Section
422.75,
Code
2024,
is
amended
to
read
as
33
follows:
34
422.75
Statistics
——
publication.
35
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The
department
shall
prepare
and
publish
an
annual
report
1
which
shall
include
statistics
reasonably
available,
with
2
respect
to
the
operation
of
this
chapter
,
including
amounts
3
collected,
classification
of
taxpayers,
and
such
other
facts
4
as
are
deemed
pertinent
and
valuable.
The
annual
report
shall
5
also
include
the
reports
and
information
required
pursuant
to
6
section
421.60,
subsection
2
,
paragraph
“k”
.
7
DIVISION
III
8
PROPERTY
TAX
——
EXTENSIONS
9
Sec.
6.
Section
425.20,
subsection
3,
Code
2024,
is
amended
10
to
read
as
follows:
11
3.
In
case
of
sickness,
absence,
or
other
disability
of
12
the
claimant
or
if,
in
the
judgment
of
the
director
of
revenue
13
or
the
director
of
health
and
human
services
,
as
applicable,
14
good
cause
exists
and
the
claimant
requests
an
extension,
the
15
director
of
health
and
human
services
may
extend
the
time
for
16
filing
a
claim
for
reimbursement
and
the
director
of
revenue
17
may
extend
the
time
for
filing
a
claim
for
credit
.
However,
18
any
further
time
granted
shall
not
extend
beyond
December
31
19
of
the
year
following
the
year
in
which
the
claim
was
required
20
to
be
filed.
Claims
filed
as
a
result
of
this
subsection
shall
21
be
filed
with
the
director
of
health
and
human
services
or
the
22
director
of
revenue,
as
applicable,
who
shall
provide
for
the
23
reimbursement
of
the
claim
to
the
claimant.
24
DIVISION
IV
25
FARM
TENANCY
INCOME
TAX
EXCLUSION
26
Sec.
7.
Section
422.7,
subsection
14,
paragraph
a,
Code
27
2024,
is
amended
to
read
as
follows:
28
a.
Subtract,
to
the
extent
included,
net
income
received
29
by
an
eligible
individual
pursuant
to
a
farm
tenancy
agreement
30
covering
real
property
held
by
the
eligible
individual
for
31
ten
or
more
years,
if
the
eligible
individual
materially
32
participated
in
a
farming
business
for
ten
or
more
years
in
the
33
aggregate
.
34
Sec.
8.
Section
422.7,
subsection
14,
paragraph
f,
Code
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2024,
is
amended
by
adding
the
following
new
subparagraph:
1
NEW
SUBPARAGRAPH
.
(04)
“Held”
shall
be
determined
with
2
reference
to
the
holding
period
provisions
of
section
1223
of
3
the
Internal
Revenue
Code
and
the
federal
regulations
pursuant
4
thereto.
5
DIVISION
V
6
PASS-THROUGH
ENTITIES
7
Sec.
9.
Section
422.25C,
subsection
2,
Code
2024,
is
amended
8
to
read
as
follows:
9
2.
For
tax
years
beginning
on
or
after
January
1,
2020,
any
10
adjustments
to
a
partnership’s
or
pass-through
entity’s
items
11
of
income,
gain,
loss,
expense,
or
credit,
or
an
adjustment
to
12
such
items
allocated
to
a
partner
that
holds
an
interest
in
a
13
partnership
or
pass-through
entity
for
the
reviewed
year
by
14
the
department
as
a
result
of
a
state
partnership
audit,
shall
15
be
determined
at
the
partnership
level
or
pass-through
entity
16
level
in
the
same
manner
as
provided
by
section
6221(a)
of
the
17
Internal
Revenue
Code
and
the
regulations
thereunder
unless
a
18
different
treatment
is
specifically
provided
in
this
title
.
19
The
provisions
of
sections
6222,
6223,
and
6227
of
the
Internal
20
Revenue
Code
and
the
regulations
thereunder
shall
also
apply
to
21
a
partnership
or
pass-through
entity
and
its
direct
or
indirect
22
partners
in
the
same
manner
as
provided
in
such
sections
unless
23
a
different
treatment
is
specifically
provided
in
this
title
.
24
For
purposes
of
applying
such
sections,
due
account
shall
be
25
made
for
differences
in
federal
and
Iowa
terminology.
The
26
adjustment
provided
by
section
6221(a)
of
the
Internal
Revenue
27
Code
shall
be
determined
as
provided
in
such
section
but
shall
28
be
based
on
Iowa
taxable
income
or
other
tax
attributes
of
29
the
partnership
or
pass-through
entity
as
determined
pursuant
30
to
this
chapter
for
the
reviewed
year.
The
department
shall
31
issue
a
notice
of
adjustment
to
the
partnership
or
pass-through
32
entity.
Such
notice
shall
be
treated
as
an
assessment
for
the
33
purposes
of
section
422.25
,
and
the
notice
shall
be
appealable
,
34
except
as
provided
in
section
422.25,
by
the
partnership
or
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pass-through
entity
pursuant
to
sections
422.28
and
422.29
and
1
shall
be
issued
within
the
time
period
provided
by
section
2
422.25
.
Once
the
adjustments
to
partnership-related
or
3
pass-through
entity-related
items
or
reallocations
of
income,
4
gains,
losses,
expenses,
credits,
and
other
attributes
among
5
such
partners
for
the
reviewed
year
are
finally
determined,
6
the
partnership
or
pass-through
entity
and
any
direct
partners
7
or
indirect
partners
shall
then
be
subject
to
the
provisions
8
of
section
422.25,
subsection
1
,
paragraph
“e”
,
and
section
9
422.25A
in
the
same
manner
as
if
the
state
partnership
audit
10
were
a
federal
partnership
level
audit,
and
as
if
the
final
11
state
partnership
audit
adjustment
were
a
final
federal
12
partnership
adjustment.
The
penalty
exceptions
in
section
13
421.27,
subsection
2
,
paragraphs
“b”
and
“c”
,
shall
not
apply
14
to
a
state
partnership
audit.
15
Sec.
10.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
16
deemed
of
immediate
importance,
takes
effect
upon
enactment.
17
Sec.
11.
RETROACTIVE
APPLICABILITY.
This
division
of
this
18
Act
applies
retroactively
to
January
1,
2024.
19
DIVISION
VI
20
SALES
TAX
CHANGES
21
Sec.
12.
Section
423.36,
subsection
9,
paragraph
a,
Code
22
2024,
is
amended
to
read
as
follows:
23
a.
Except
as
provided
in
paragraph
“b”
,
purchasers,
users,
24
and
consumers
of
tangible
personal
property,
specified
digital
25
products,
or
enumerated
services
taxed
pursuant
to
subchapter
26
II
or
III
of
this
chapter
or
chapter
423B
may
be
authorized,
27
pursuant
to
rules
adopted
by
the
director,
to
remit
tax
owed
28
directly
to
the
department
instead
of
the
tax
being
collected
29
and
paid
by
the
seller.
To
qualify
for
a
direct
pay
tax
permit,
30
the
purchaser,
user,
or
consumer
must
accrue
a
tax
liability
of
31
more
than
four
eight
thousand
dollars
in
tax
under
subchapters
32
II
and
III
in
a
semimonthly
monthly
period
and
make
deposits
33
and
file
returns
pursuant
to
section
423.31
.
This
authority
34
shall
not
be
granted
or
exercised
except
upon
application
to
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the
director
and
then
only
after
issuance
by
the
director
of
a
1
direct
pay
tax
permit.
2
Sec.
13.
Section
423.37,
subsection
1,
paragraph
a,
Code
3
2024,
is
amended
to
read
as
follows:
4
a.
As
soon
as
practicable
after
a
return
is
filed
and
5
within
three
years
after
the
return
is
filed,
the
department
6
may
examine
the
return,
assess
and
determine
the
tax
due
if
7
the
return
is
found
to
be
incorrect,
and
give
notice
to
the
8
person
liable
for
the
tax
of
the
assessment
and
determination
9
as
provided
in
paragraph
“b”
.
If
a
return,
when
filed,
is
10
incorrect
or
insufficient,
the
department
shall
determine
11
the
amount
of
tax
due
from
information
or
knowledge
the
12
department
is
able
to
obtain.
The
determination
may
be
made
13
using
any
generally
recognized
valid
and
reliable
sampling
14
technique,
whether
or
not
the
person
being
audited
has
complete
15
records
,
and
if
mutually
agreed
upon
by
the
department
and
16
the
person
being
audited
.
The
period
for
the
examination
and
17
determination
of
the
correct
amount
of
tax
is
unlimited
in
the
18
case
of
a
false
or
fraudulent
return
made
with
the
intent
to
19
evade
tax.
20
DIVISION
VII
21
MOTOR
FUEL
TAXES
22
Sec.
14.
Section
452A.3,
subsection
1,
paragraph
b,
23
unnumbered
paragraph
1,
Code
2024,
is
amended
to
read
as
24
follows:
25
On
and
after
July
1,
2026,
an
excise
tax
of
thirty
cents
is
26
imposed
on
each
gallon
of
ethanol
blended
gasoline
classified
27
as
E-15
or
higher.
Before
July
1,
2026,
the
rate
of
the
28
excise
tax
on
ethanol
blended
gasoline
classified
as
E-15
or
29
higher
shall
be
based
on
the
number
of
gallons
of
ethanol
30
blended
gasoline
classified
as
E-15
or
higher
that
are
31
distributed
in
this
state
as
expressed
as
a
percentage
of
the
32
number
of
gallons
of
motor
fuel
distributed
in
this
state,
33
which
is
referred
to
as
the
distribution
percentage.
For
34
purposes
of
this
paragraph,
only
ethanol
blended
gasoline
and
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nonblended
gasoline,
not
including
aviation
gasoline,
shall
1
be
used
in
determining
the
percentage
basis
for
the
excise
2
tax.
The
department
shall
determine
the
percentage
basis
3
for
each
determination
period
beginning
January
1
and
ending
4
December
31
based
on
data
from
the
reports
filed
pursuant
to
5
section
452A.33
.
Before
June
1,
the
department
may
amend
the
6
distribution
percentage
due
to
a
mistake,
if
there
is
a
late
7
report
filed
by
a
retail
dealer
to
the
department
under
section
8
452A.33,
subsection
1,
or
if
the
distribution
percentage
is
9
not
accurate.
The
rate
for
the
excise
tax
shall
apply
for
the
10
period
beginning
July
1
and
ending
June
30
following
the
end
11
of
the
determination
period.
Before
July
1,
2026,
the
rate
12
of
the
excise
tax
on
each
gallon
of
ethanol
blended
gasoline
13
classified
as
E-15
or
higher
shall
be
as
follows:
14
Sec.
15.
Section
452A.3,
subsection
3,
paragraph
a,
15
subparagraph
(2),
unnumbered
paragraph
1,
Code
2024,
is
amended
16
to
read
as
follows:
17
Except
as
otherwise
provided
in
this
section
and
in
this
18
subchapter
,
this
subparagraph
shall
apply
to
the
excise
tax
19
imposed
on
each
gallon
of
biodiesel
blended
fuel
classified
20
as
B-11
or
higher
used
for
any
purpose
for
the
privilege
of
21
operating
motor
vehicles
in
this
state.
On
and
after
July
1,
22
2026,
the
rate
of
the
excise
tax
on
each
gallon
of
biodiesel
23
blended
fuel
classified
as
B-11
or
higher
is
thirty-two
24
and
five-tenths
cents.
Before
July
1,
2026,
the
rate
of
25
the
excise
tax
shall
be
based
on
the
number
of
gallons
of
26
biodiesel
blended
fuel
classified
as
B-11
or
higher
that
are
27
distributed
in
this
state
as
expressed
as
a
percentage
of
28
the
number
of
gallons
of
special
fuel
for
diesel
engines
of
29
motor
vehicles
distributed
in
this
state,
which
is
referred
30
to
as
the
distribution
percentage.
The
department
shall
31
determine
the
percentage
basis
for
each
determination
period
32
beginning
January
1
and
ending
December
31
based
on
data
from
33
the
reports
filed
pursuant
to
section
452A.33
.
Before
June
34
1,
the
department
may
amend
the
distribution
percentage
due
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to
a
mistake,
if
there
is
a
late
report
filed
by
a
retail
1
dealer
to
the
department
under
section
452A.33,
subsection
1,
2
or
the
distribution
percentage
is
not
accurate.
The
rate
of
3
the
excise
tax
shall
apply
for
the
period
beginning
July
1
and
4
ending
June
30
following
the
end
of
the
determination
period.
5
Before
July
1,
2026,
the
rate
of
the
excise
tax
on
each
gallon
6
of
biodiesel
blended
fuel
classified
as
B-11
or
higher
shall
7
be
as
follows:
8
Sec.
16.
Section
452A.15,
subsection
5,
Code
2024,
is
9
amended
to
read
as
follows:
10
5.
The
director
may
impose
a
civil
penalty
against
any
11
person
who
fails
to
timely
file
the
reports
or
keep
the
records
12
required
under
this
section
.
The
penalty
shall
be
one
hundred
13
dollars
for
the
first
violation
and
shall
increase
by
one
14
hundred
dollars
for
each
additional
violation
occurring
in
the
15
calendar
year
in
which
the
first
violation
occurred.
16
Sec.
17.
Section
452A.33,
subsection
2,
unnumbered
17
paragraph
1,
Code
2024,
is
amended
to
read
as
follows:
18
On
or
before
April
1
the
department
shall
deliver
a
report
19
to
the
governor
and
the
legislative
services
agency.
Before
20
June
1,
the
department
may
amend
the
report
due
to
a
mistake,
21
if
there
is
a
late
report
by
a
retail
dealer
under
subsection
22
1,
or
if
the
report
is
not
accurate.
The
report
shall
compile
23
information
reported
by
retail
dealers
to
the
department
as
24
provided
in
this
section
and
shall
at
least
include
all
of
the
25
following:
26
Sec.
18.
Section
452A.41,
subsection
5,
paragraph
a,
Code
27
2024,
is
amended
to
read
as
follows:
28
a.
For
the
purpose
of
determining
the
amount
of
liability
29
for
the
electric
fuel
tax,
each
dealer
and
user
shall
file
with
30
the
department
not
later
than
July
31
for
the
period
beginning
31
January
1
and
ending
June
30,
and
not
later
than
January
30
32
31
for
the
period
beginning
July
1
and
ending
December
30
31
,
33
a
biannual
tax
return
certified
under
penalties
for
false
34
certification.
The
return
shall
show,
with
reference
to
each
35
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26
S.F.
_____
H.F.
_____
location
at
which
fuel
is
delivered
or
placed
by
the
dealer
or
1
user
into
the
battery
or
other
energy
storage
device
of
any
2
electric
motor
vehicle
during
the
next
preceding
six
calendar
3
months,
information
as
required
by
the
department.
On
and
4
after
January
1,
2026,
the
department
may
require
by
rule
that
5
such
tax
returns
be
filed
quarterly.
6
Sec.
19.
Section
452A.44,
Code
2024,
is
amended
by
adding
7
the
following
new
subsection:
8
NEW
SUBSECTION
.
4.
If
electric
fuel
is
sold
or
dispensed
9
for
a
nontaxable
purpose,
the
purchaser
may
complete
and
10
provide
an
exemption
certificate
produced
by
the
department
to
11
the
license
holder.
12
DIVISION
VIII
13
VETERANS
TRUST
FUND
AND
LOTTERY
14
Sec.
20.
Section
99G.3,
Code
2024,
is
amended
by
adding
the
15
following
new
subsection:
16
NEW
SUBSECTION
.
17A.
“Setoff
program”
means
the
program
17
administered
pursuant
to
section
421.65.
18
Sec.
21.
Section
99G.7,
subsection
1,
paragraph
e,
Code
19
2024,
is
amended
by
striking
the
paragraph.
20
Sec.
22.
Section
99G.39,
subsection
3,
Code
2024,
is
amended
21
to
read
as
follows:
22
3.
Two
million
five
hundred
thousand
dollars
in
lottery
23
revenues
shall
be
transferred
each
fiscal
year
to
the
veterans
24
trust
fund
established
pursuant
to
section
35A.13
prior
to
25
deposit
of
the
lottery
revenues
in
the
general
fund
pursuant
26
to
section
99G.40
.
However,
if
the
balance
of
the
veterans
27
trust
fund
is
fifty
million
dollars
or
more
on
both
July
1
of
28
the
current
fiscal
year
and
July
1
of
the
preceding
fiscal
29
year
,
the
moneys
shall
be
appropriated
to
the
department
for
30
distribution
to
county
directors
of
veteran
affairs,
with
fifty
31
percent
of
the
moneys
to
be
distributed
equally
to
each
county
32
and
fifty
percent
of
the
moneys
to
be
distributed
to
each
33
county
based
upon
the
population
of
veterans
in
the
county,
34
so
long
as
the
moneys
distributed
to
a
county
do
not
supplant
35
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26
S.F.
_____
H.F.
_____
moneys
appropriated
by
that
county
for
the
county
director
of
1
veteran
affairs.
2
Sec.
23.
Section
99G.41,
subsections
1,
2,
3,
and
4,
Code
3
2024,
are
amended
to
read
as
follows:
4
1.
Any
claimant
agency
may
submit
to
the
department
a
5
list
of
the
names
of
all
persons
indebted
to
such
claimant
6
agency
or
to
persons
on
whose
behalf
the
claimant
agency
is
7
acting.
The
A
lottery
prize
payment
awarded
as
cash
or
cash
8
equivalents
is
subject
to
the
setoff
program.
Additionally,
a
9
debtor
and
the
full
amount
of
the
debt
shall
be
compiled
in
a
10
list,
and
collectible
from
any
lottery
winnings
prize
payment
11
awarded
as
cash
or
cash
equivalents
due
the
debtor
without
12
regard
to
limitations
on
the
amounts
that
may
be
collectible
in
13
increments
through
garnishment
or
other
proceedings.
Such
list
14
shall
constitute
a
valid
lien
upon
and
claim
of
lien
against
15
the
lottery
winnings
prize
payment
of
any
debtor
named
in
such
16
list.
The
list
shall
contain
the
names
of
the
debtors,
their
17
social
security
numbers
if
available,
and
any
other
information
18
that
assists
the
department
in
identifying
the
debtors
named
in
19
the
list.
The
list
shall
be
treated
the
same
as
setoff
program
20
information
under
section
421.65,
subsection
2,
paragraph
“a”
.
21
2.
The
department
is
authorized
and
directed
to
withhold
22
any
winnings
paid
out
directly
by
the
department
subject
to
the
23
lien
created
by
this
section
,
and
send
notice
to
the
winner
or
24
send
notice
as
directed
by
the
setoff
program
.
However,
if
the
25
winner
appears
and
claims
winnings
in
person,
the
department
26
shall
notify
the
winner
at
that
time
by
hand
delivery
of
such
27
action.
The
department
shall
pay
the
funds
over
to
the
agency
28
administering
the
offset
to
the
setoff
program.
29
3.
Notwithstanding
the
provisions
of
section
99G.34
which
30
prohibit
disclosure
by
the
department
of
certain
portions
31
of
the
contents
of
prize
winner
records
or
information,
32
and
notwithstanding
any
other
confidentiality
statute,
33
the
department
may
provide
to
a
claimant
agency
the
setoff
34
program
and
public
agency,
as
defined
in
section
421.65,
all
35
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S.F.
_____
H.F.
_____
information
necessary
to
accomplish
and
effectuate
the
intent
1
of
this
section
.
2
4.
The
information
obtained
by
a
claimant
agency
from
the
3
department
in
accordance
with
this
section
shall
retain
its
4
confidentiality
and
shall
only
be
used
by
a
claimant
agency
5
in
the
pursuit
of
its
debt
collection
duties
and
practices.
6
Any
employee
or
prior
employee
of
any
claimant
agency
who
7
unlawfully
discloses
any
such
information
for
any
other
8
purpose,
except
as
otherwise
specifically
authorized
by
law,
9
shall
be
subject
to
the
same
penalties
specified
by
law
for
10
unauthorized
disclosure
of
confidential
information
by
an
agent
11
or
employee
of
the
department
under
this
chapter
.
12
DIVISION
IX
13
ALCOHOLIC
BEVERAGES
14
Sec.
24.
Section
123.3,
Code
2024,
is
amended
by
adding
the
15
following
new
subsection:
16
NEW
SUBSECTION
.
36A.
“Operating
still”
means
a
still
that
17
is
registered
with
the
federal
alcohol
and
tobacco
tax
and
18
trade
bureau
of
the
United
States
department
of
the
treasury
19
and
is
actively
used
to
manufacture
spirits.
20
Sec.
25.
Section
123.30,
subsection
4,
Code
2024,
is
amended
21
to
read
as
follows:
22
4.
Notwithstanding
any
provision
of
this
chapter
to
the
23
contrary,
a
person
holding
a
retail
alcohol
license
to
sell
24
alcoholic
beverages
for
consumption
on
the
licensed
premises
25
may
permit
a
customer
to
remove
one
unsealed
bottle
of
wine
26
for
consumption
off
the
premises
if
the
customer
has
purchased
27
and
consumed
a
portion
of
the
bottle
of
wine
on
the
licensed
28
premises.
The
licensee
or
the
licensee’s
agent
shall
securely
29
reseal
such
bottle
in
a
bag
designed
so
that
it
is
visibly
30
apparent
that
the
resealed
bottle
of
wine
has
not
been
tampered
31
with
and
provide
a
dated
receipt
for
the
resealed
bottle
of
32
wine
to
the
customer.
A
wine
bottle
resealed
pursuant
to
the
33
requirements
of
this
subsection
is
subject
to
the
requirements
34
of
sections
321.284
and
321.284A
.
A
person
holding
a
retail
35
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10/
26
S.F.
_____
H.F.
_____
alcohol
license
to
sell
alcoholic
beverages
for
consumption
on
1
the
licensed
premises
may
permit
a
customer
to
carry
an
open
2
container
of
wine
from
the
person’s
licensed
premises
into
3
another
immediately
adjacent
licensed
premises
that
is
covered
4
by
a
license
or
permit
that
authorizes
the
consumption
of
wine,
5
a
temporarily
closed
public
right-of-way,
or
a
private
place.
6
Sec.
26.
Section
123.30,
Code
2024,
is
amended
by
adding
the
7
following
new
subsection:
8
NEW
SUBSECTION
.
5.
A
person
holding
a
retail
alcohol
9
license
to
sell
alcoholic
beverages
for
consumption
on
the
10
licensed
premises
may
permit
a
customer
to
carry
an
open
11
container
of
wine
or
beer
from
the
person’s
licensed
premises
12
to
one
of
the
following
immediately
adjacent
locations:
13
a.
Another
licensed
premises
that
authorizes
the
consumption
14
of
beer
or
wine.
15
b.
A
temporarily
closed
public
right-of-way.
16
c.
A
private
place.
17
Sec.
27.
Section
123.43A,
subsection
6,
Code
2024,
is
18
amended
to
read
as
follows:
19
6.
Notwithstanding
any
provision
of
this
chapter
to
the
20
contrary
or
the
fact
that
a
person
is
the
holder
of
a
class
21
“A”
native
distilled
spirits
license,
a
native
distillery
may
22
be
granted
a
class
“C”
retail
alcohol
license
as
defined
in
23
section
123.30
for
the
same
premises
licensed
under
a
class
“A”
24
native
distilled
spirits
license
where
the
manufacturing
of
25
native
distilled
spirits
occurs
.
A
native
distillery
may
be
26
granted
not
more
than
two
class
“C”
retail
alcohol
licenses.
27
A
manufacturer
of
native
distilled
spirits
distillery
may
be
28
issued
a
class
“C”
retail
alcohol
license
regardless
of
whether
29
the
manufacturer
is
also
a
manufacturer
of
beer
pursuant
to
a
30
class
“A”
beer
permit
or
a
manufacturer
of
native
wine
pursuant
31
to
a
class
“A”
wine
permit.
32
Sec.
28.
Section
123.45,
subsection
3,
Code
2024,
is
amended
33
to
read
as
follows:
34
3.
A
person
engaged
in
the
wholesaling
of
beer
or
wine
35
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26
S.F.
_____
H.F.
_____
may
sell
only
disposable
glassware,
which
is
constructed
of
1
paper,
paper
laminated,
or
plastic
materials
and
designed
2
primarily
for
personal
consumption
on
a
one-time
usage
3
basis,
to
retailers
for
use
within
the
premises
of
licensed
4
establishments,
for
an
amount
which
is
greater
than
or
equal
5
to
an
amount
which
represents
the
greater
of
either
the
amount
6
paid
for
the
disposable
glassware
by
the
supplier
or
the
amount
7
paid
for
the
disposable
glassware
by
the
wholesaler.
Also,
8
notwithstanding
any
other
provision
of
this
chapter
or
the
9
fact
that
a
person
is
the
holder
of
a
class
“A”
beer
permit,
10
a
native
brewery
may
be
granted
not
more
than
two
a
class
“C”
11
retail
alcohol
licenses
license
or
not
more
than
two
a
special
12
class
“C”
retail
alcohol
licenses
license
,
both
as
defined
in
13
section
123.30
,
for
the
same
premises
licensed
under
a
class
14
“A”
beer
permit
where
the
manufacturing
of
beer
occurs.
A
15
native
brewery
may
be
granted
not
more
than
two
class
“C”
16
retail
alcohol
licenses
or
two
special
class
“C”
retail
alcohol
17
licenses.
A
native
brewery
may
be
issued
a
class
“C”
retail
18
alcohol
license
or
a
special
class
“C”
retail
alcohol
license,
19
regardless
of
whether
that
person
is
also
a
manufacturer
20
of
native
distilled
spirits
pursuant
to
a
class
“A”
native
21
distilled
spirits
license
or
a
manufacturer
of
native
wine
22
pursuant
to
a
class
“A”
wine
permit.
23
Sec.
29.
Section
123.176,
subsection
5,
Code
2024,
is
24
amended
to
read
as
follows:
25
5.
Notwithstanding
any
other
provision
of
this
chapter
26
or
the
fact
that
a
person
is
the
holder
of
a
class
“A”
wine
27
permit
,
a
person
engaged
in
the
business
of
manufacturing
28
native
wine
may
be
granted
a
class
“C”
retail
alcohol
license
29
or
special
class
“C”
retail
native
wine
license
as
defined
in
30
section
123.30
,
for
the
same
premises
licensed
under
a
class
31
“A”
wine
permit
where
the
manufacturing
of
native
wine
occurs
.
32
A
manufacturer
of
native
wine
may
be
granted
not
more
than
33
two
class
“C”
retail
alcohol
licenses
or
special
class
“C”
34
retail
native
wine
licenses.
A
manufacturer
of
native
wine
35
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90
jm/jh
12/
26
S.F.
_____
H.F.
_____
may
be
issued
a
class
“C”
retail
alcohol
license
or
special
1
class
“C”
retail
native
wine
license
regardless
of
whether
the
2
manufacturer
is
also
a
manufacturer
of
beer
pursuant
to
a
class
3
“A”
beer
permit
or
a
manufacturer
of
native
distilled
spirits
4
pursuant
to
a
class
“A”
native
distilled
spirits
license.
5
DIVISION
X
6
INHERITANCE
TAX
——
FUTURE
CODE
CHANGES
DUE
TO
REPEAL
7
Sec.
30.
Section
12D.9,
subsection
3,
Code
2024,
is
amended
8
to
read
as
follows:
9
3.
State
For
a
death
occurring
before
January
1,
2025,
state
10
inheritance
tax
treatment
of
interests
in
Iowa
educational
11
savings
plans
shall
be
as
provided
in
section
450.4,
subsection
12
8
.
This
subsection
shall
apply
to
all
Iowa
educational
savings
13
plans
existing
on
or
after
July
1,
1998.
14
Sec.
31.
Section
12I.8,
subsection
3,
Code
2024,
is
amended
15
to
read
as
follows:
16
3.
State
For
a
death
occurring
before
January
1,
2025,
state
17
inheritance
tax
treatment
of
interests
in
Iowa
ABLE
savings
18
plans
shall
be
as
provided
in
section
450.4,
subsection
9
.
19
Sec.
32.
Section
12I.10,
subsection
3,
Code
2024,
is
amended
20
to
read
as
follows:
21
3.
State
For
a
death
occurring
before
January
1,
2025,
state
22
inheritance
tax
treatment
of
interests
in
the
qualified
ABLE
23
program
with
which
the
state
has
contracted
pursuant
to
this
24
section
shall
be
as
provided
in
section
450.4,
subsection
9
.
25
Sec.
33.
Section
16.177,
subsection
8,
Code
2024,
is
amended
26
to
read
as
follows:
27
8.
Bonds
issued
under
this
section
are
declared
to
be
issued
28
for
an
essential
public
and
governmental
purpose
and
all
bonds
29
issued
under
this
section
shall
be
exempt
from
taxation
by
the
30
state
of
Iowa
and
the
interest
on
the
bonds
shall
be
exempt
31
from
the
state
income
tax
and
the
any
state
inheritance
tax.
32
Sec.
34.
Section
321.47,
subsection
2,
paragraph
a,
Code
33
2024,
is
amended
to
read
as
follows:
34
a.
The
persons
entitled
under
the
laws
of
descent
and
35
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distribution
to
the
possession
and
ownership
of
a
vehicle
owned
1
in
whole
or
in
part
by
a
decedent
who
died
intestate,
upon
2
filing
an
affidavit
stating
the
name
and
date
of
death
of
the
3
decedent,
the
right
to
possession
and
ownership
of
the
persons
4
filing
the
affidavit,
and
that
there
has
been
no
administration
5
of
the
decedent’s
estate,
which
instrument
must
also
contain
6
an
agreement
by
the
affiant
to
indemnify
creditors
of
the
7
decedent
who
would
be
entitled
to
levy
execution
upon
the
motor
8
vehicle
to
the
extent
of
the
value
of
the
motor
vehicle,
shall,
9
upon
complying
with
the
other
title
transfer
requirements
of
10
this
chapter
,
be
issued
a
registration
card
for
the
decedent’s
11
interest
in
the
vehicle
and
a
certificate
of
title
to
the
12
vehicle.
If
a
decedent
died
testate,
and
either
the
will
is
13
not
probated
or
is
admitted
to
probate
without
administration,
14
the
persons
entitled
to
the
possession
and
ownership
of
15
a
vehicle
owned
in
whole
or
in
part
by
the
decedent
may
16
file
an
affidavit
and,
upon
complying
with
the
other
title
17
transfer
requirements
of
this
chapter
,
shall
be
issued
a
18
registration
card
for
the
decedent’s
interest
in
the
vehicle
19
and
a
certificate
of
title
to
the
vehicle.
The
affidavit
20
must
contain
the
same
information
and
indemnity
agreement
21
as
is
required
in
cases
of
intestacy
under
this
subsection
.
22
Chapter
450
is
not
For
a
death
occurring
before
January
1,
23
2025,
a
requirement
of
chapter
450
shall
not
be
considered
24
satisfied
by
the
filing
of
the
affidavit
provided
for
in
this
25
subsection
.
If,
from
the
records
in
the
office
of
the
county
26
treasurer,
there
appear
to
be
any
liens
on
the
vehicle,
the
27
certificate
of
title
must
contain
a
statement
of
the
liens
28
unless
the
application
is
accompanied
by
proper
evidence
of
29
the
satisfaction
or
extinction
of
such
liens.
Evidence
of
30
extinction
includes
but
is
not
limited
to
an
affidavit
of
the
31
applicant
stating
that
a
security
interest
was
foreclosed
as
32
provided
in
chapter
554,
article
9,
part
6
.
The
department
33
shall
waive
the
certificate
of
title
fee
and
surcharge
required
34
under
sections
321.20
,
321.20A
,
321.23
,
321.46
,
321.52
,
and
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321.52A
if
the
person
entitled
to
possession
and
ownership
of
1
a
vehicle,
as
provided
in
this
subsection
,
is
the
surviving
2
spouse
of
a
decedent.
3
Sec.
35.
Section
331.602,
subsection
23,
Code
2024,
is
4
amended
to
read
as
follows:
5
23.
Forward
For
deaths
occurring
before
January
1,
2025,
6
forward
to
the
director
of
revenue
a
copy
of
any
deed,
bill
of
7
sale,
or
other
transfer
which
shows
that
it
is
made
or
intended
8
to
take
effect
at
or
after
the
death
of
the
person
executing
9
the
instrument
as
provided
in
section
450.81
.
10
Sec.
36.
Section
331.756,
subsection
57,
Code
2024,
is
11
amended
to
read
as
follows:
12
57.
Represent
For
a
death
occurring
before
January
1,
2025,
13
represent
the
state
in
litigation
relating
to
the
inheritance
14
tax
if
requested
by
the
department
of
revenue
as
provided
in
15
section
450.1
.
16
Sec.
37.
Section
421.27,
subsection
1,
paragraph
d,
17
subparagraph
(13),
Code
2024,
is
amended
to
read
as
follows:
18
(13)
That
For
a
death
occurring
before
January
1,
2025,
19
that
an
Iowa
inheritance
tax
return
is
filed
for
an
estate
20
within
the
later
of
nine
months
from
the
date
of
death
or
sixty
21
days
from
the
filing
of
a
disclaimer
by
the
beneficiary
of
the
22
estate
refusing
to
take
the
property
or
right
or
interest
in
23
the
property.
24
Sec.
38.
Section
421.60,
subsection
2,
paragraph
c,
25
subparagraph
(1),
Code
2024,
is
amended
to
read
as
follows:
26
(1)
If
the
notice
of
assessment
or
denial
of
a
claim
for
27
refund
relates
to
a
tax
return
filed
pursuant
to
section
28
422.14
,
or
pursuant
to
chapter
450
for
a
death
occurring
before
29
January
1,
2025,
by
the
taxpayer
which
designates
an
individual
30
as
an
authorized
representative
of
the
taxpayer
with
respect
to
31
that
return,
or
if
a
power
of
attorney
has
been
filed
with
the
32
department
by
the
taxpayer
which
designates
an
individual
as
33
an
authorized
representative
of
the
taxpayer
with
respect
to
34
any
tax
that
is
included
in
the
notice
of
assessment
or
denial
35
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of
a
claim
for
refund,
a
copy
of
the
notice
together
with
any
1
additional
information
required
to
be
sent
to
the
taxpayer
2
shall
be
sent
to
the
authorized
representative
as
well.
3
Sec.
39.
Section
422.27,
subsection
1,
Code
2024,
is
amended
4
to
read
as
follows:
5
1.
A
final
account
of
a
personal
representative
,
as
defined
6
in
section
450.1
,
shall
not
be
allowed
by
any
court
unless
the
7
account
shows,
and
the
judge
of
the
court
finds,
that
all
taxes
8
imposed
by
this
subchapter
upon
the
personal
representative,
9
which
have
become
payable,
have
been
paid,
and
that
all
taxes
10
which
may
become
due
are
secured
by
bond
or
deposit,
or
are
11
otherwise
secured.
The
certificate
of
acquittances
of
the
12
department
of
revenue
is
conclusive
as
to
the
payment
of
the
13
tax
to
the
extent
of
the
acquittance.
This
subsection
does
14
not
apply
if
all
property
in
the
estate
of
a
decedent
is
15
held
in
joint
tenancy
with
right
of
survivorship
by
husband
16
and
wife
alone.
For
purposes
of
this
subsection,
“personal
17
representative”
means
an
administrator,
executor,
or
trustee
as
18
each
is
defined
in
section
633.3.
19
Sec.
40.
Section
455G.6,
subsection
14,
Code
2024,
is
20
amended
to
read
as
follows:
21
14.
Bonds
issued
under
the
provisions
of
this
section
are
22
declared
to
be
issued
for
an
essential
public
and
governmental
23
purpose
and
all
bonds
issued
under
this
subchapter
shall
be
24
exempt
from
taxation
by
the
state
of
Iowa
and
the
interest
on
25
the
bonds
shall
be
exempt
from
the
state
income
tax
and
the
any
26
state
inheritance
tax.
27
Sec.
41.
Section
496C.14,
subsection
6,
paragraph
h,
Code
28
2024,
is
amended
to
read
as
follows:
29
h.
Notwithstanding
the
provisions
of
this
section
,
30
payment
of
any
part
of
the
purchase
price
for
shares
of
a
31
deceased
shareholder
shall
not
be
required
until
the
executor
32
or
administrator
of
the
deceased
shareholder
provides
33
any
indemnity,
release,
or
other
document
from
any
taxing
34
authority,
which
is
reasonably
necessary
to
protect
the
35
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corporation
against
liability
for
any
estate
,
inheritance,
and
1
death
taxes
tax,
or
any
inheritance
tax
for
a
death
occurring
2
before
January
1,
2025
.
3
Sec.
42.
Section
524.805,
subsection
8,
Code
2024,
is
4
amended
to
read
as
follows:
5
8.
A
state
bank
may
receive
deposits
from
one
or
more
6
persons
with
the
provision
that
upon
the
death
of
the
7
depositors
the
deposit
account
shall
be
the
property
of
the
8
person
or
persons
designated
by
the
deceased
depositors
as
9
shown
on
the
deposit
account
records
of
the
state
bank.
After
10
payment
by
the
state
bank,
the
proceeds
shall
remain
subject
11
to
the
any
debts
of
the
decedent
and
the
any
payment
of
Iowa
12
inheritance
tax
,
if
any
for
a
death
occurring
prior
to
January
13
1,
2025
.
A
state
bank
paying
the
person
or
persons
designated
14
shall
not
be
liable
as
a
result
of
that
action
for
any
debts
15
of
the
decedent
or
for
any
estate,
inheritance,
or
succession
16
taxes
which
may
be
due
this
state.
17
Sec.
43.
Section
541A.2,
subsection
6,
unnumbered
paragraph
18
1,
Code
2024,
is
amended
to
read
as
follows:
19
An
individual
development
account
closed
in
accordance
20
with
this
subsection
is
not
subject
to
the
limitations
and
21
benefits
provided
by
this
chapter
but
is
subject
to
state
tax
22
in
accordance
with
the
provisions
of
section
422.7,
subsection
23
17
,
and
in
accordance
with
the
provisions
of
section
450.4,
24
subsection
6
,
for
a
death
occurring
before
January
1,
2025
.
An
25
individual
development
account
may
be
closed
for
any
of
the
26
following
reasons:
27
Sec.
44.
Section
602.8102,
subsection
63,
Code
2024,
is
28
amended
to
read
as
follows:
29
63.
Carry
out
duties
relating
to
the
inheritance
tax
as
30
provided
in
chapter
450
for
deaths
occurring
before
January
1,
31
2025
.
32
Sec.
45.
Section
633.21,
Code
2024,
is
amended
to
read
as
33
follows:
34
633.21
Appraisers’
fees
and
referees’
fees
fixed
by
rule.
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The
district
judges
of
each
judicial
district
shall
by
rule
1
fix
the
fees
of
probate
referees,
and
also
provide,
insofar
as
2
practicable,
a
uniform
schedule
of
compensation
for
inheritance
3
tax
appraisers,
other
appraisers,
brokers,
and
agents
employed
4
at
estate
expense.
5
Sec.
46.
Section
633.31,
subsection
2,
paragraph
a,
Code
6
2024,
is
amended
to
read
as
follows:
7
a.
For
services
performed
in
short
form
probates
8
pursuant
to
sections
450.22
and
450.44
for
deaths
occurring
9
before
January
1,
2025
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
$
15.00
10
Sec.
47.
Section
633.356,
subsection
1,
unnumbered
11
paragraph
1,
Code
2024,
is
amended
to
read
as
follows:
12
When
the
gross
value
of
the
decedent’s
personal
property
13
that
would
otherwise
be
distributed
by
will
or
intestate
14
succession
is
or
has
been,
at
any
time
since
the
decedent’s
15
death,
fifty
thousand
dollars
or
less
and
there
is
no
real
16
property
,
or
for
deaths
occurring
before
January
1,
2025,
the
17
real
property
passes
to
persons
exempt
from
inheritance
tax
18
as
joint
tenants
with
full
rights
of
survivorship
pursuant
to
19
chapter
450
,
and
if
forty
days
have
elapsed
since
the
death
of
20
the
decedent,
a
successor
as
defined
in
subsection
2
may,
by
21
furnishing
an
affidavit
prepared
pursuant
to
subsection
3
or
22
8
,
and
without
procuring
letters
of
appointment,
do
any
of
the
23
following
with
respect
to
one
or
more
items
of
such
personal
24
property:
25
Sec.
48.
Section
633.356,
subsection
3,
paragraph
a,
26
subparagraph
(3),
Code
2024,
is
amended
to
read
as
follows:
27
(3)
That
the
gross
value
of
the
decedent’s
personal
property
28
that
would
otherwise
be
distributed
by
will
or
intestate
29
succession
is,
or
has
been
at
any
time
since
the
decedent’s
30
death,
fifty
thousand
dollars
or
less
and
there
is
no
real
31
property
,
or
for
deaths
occurring
before
January
1,
2025,
the
32
real
property
passes
to
persons
exempt
from
inheritance
tax
33
as
joint
tenants
with
full
rights
of
survivorship
pursuant
to
34
chapter
450
.
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Sec.
49.
Section
633.356,
subsection
3,
paragraph
a,
1
subparagraph
(10),
Code
2024,
is
amended
to
read
as
follows:
2
(10)
That
no
inheritance
or
other
taxes
are
owed
to
the
3
department
of
revenue
for
a
death
occurring
prior
to
January
1,
4
2025
,
or
if
taxes
are
owed,
that
the
taxes
will
be
paid
to
the
5
extent
of
funds
received
pursuant
to
the
affidavit.
6
Sec.
50.
Section
633.356,
subsection
9,
Code
2024,
is
7
amended
to
read
as
follows:
8
9.
Upon
receipt
of
an
affidavit
under
subsection
3
and
9
reasonable
proof
under
subsection
5
of
the
identity
of
each
10
successor
seeking
distribution
by
virtue
of
the
affidavit,
11
the
holder
of
the
property
shall
disclose
to
the
affiant
12
whether
the
value
of
the
property
held
by
the
holder
is,
or
has
13
been
at
any
time
since
the
decedent’s
death,
fifty
thousand
14
dollars
or
less.
An
affidavit
furnished
for
the
purpose
of
15
determining
whether
the
value
of
the
property
is,
or
has
16
been
at
any
time
since
the
decedent’s
death,
fifty
thousand
17
dollars
or
less
need
not
contain
the
language
required
under
18
subsection
3
,
paragraph
“a”
,
subparagraph
(3),
but
shall
state
19
that
the
affiant
reasonably
believes
that
the
gross
value
20
of
the
decedent’s
personal
property
that
would
otherwise
be
21
distributed
by
will
or
intestate
succession
is,
or
has
been
at
22
any
time
since
the
decedent’s
death,
fifty
thousand
dollars
23
or
less
and
there
is
no
real
property
or
for
deaths
occurring
24
before
January
1,
2025,
the
real
property
passes
to
persons
25
exempt
from
inheritance
tax
as
joint
tenants
with
full
rights
26
of
survivorship
pursuant
to
chapter
450
.
27
Sec.
51.
Section
633.361,
subsection
12,
Code
2024,
is
28
amended
to
read
as
follows:
29
12.
A
listing
of
all
other
items,
with
estimated
values,
30
which
are
subject
to
Iowa
inheritance
tax
for
deaths
occurring
31
before
January
1,
2025,
or
federal
estate
tax.
32
Sec.
52.
Section
633.365,
Code
2024,
is
amended
to
read
as
33
follows:
34
633.365
Appraisement.
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_____
Property
belonging
to
the
estate
need
not
be
appraised
1
unless
required
for
inheritance
tax
purposes
for
deaths
2
occurring
before
January
1,
2025
,
under
the
provisions
of
this
3
probate
code,
or
by
order
of
court.
4
Sec.
53.
Section
633.399,
Code
2024,
is
amended
to
read
as
5
follows:
6
633.399
Report
for
approval.
7
After
making
any
such
sale,
mortgage,
exchange
or
lease
8
of
real
property,
the
personal
representative
shall
make
9
a
verified
report
thereof
to
the
court.
The
court
shall
10
examine
said
report,
and
if
satisfied
that
the
sale,
mortgage,
11
exchange,
or
lease
has
been
at
a
price
and
upon
terms
12
advantageous
to
the
estate,
and,
in
all
respects,
made
in
13
conformity
with
law,
and
that
it
ought
to
be
confirmed,
shall
14
confirm
the
same
and
order
the
personal
representative
to
15
deliver
a
deed,
mortgage,
lease
or
other
proper
instruments
16
to
the
persons
entitled
thereto;
provided,
however,
that
in
17
the
event
said
real
property
has
been
sold
at
private
sale
18
without
an
appraisal
for
inheritance
tax
purposes
for
a
death
19
occurring
before
January
1,
2025,
or
for
purpose
of
such
sale,
20
or,
if
it
has
been
so
appraised
and
has
been
sold
at
private
21
sale
for
less
than
the
appraised
value
thereof,
then,
upon
the
22
filing
of
such
report,
the
court
may
enter
an
order
fixing
a
23
time
and
place
for
hearing
thereon
and
prescribe
a
notice
of
24
such
hearing
to
be
served
upon
all
interested
persons,
any
one
25
of
whom,
prior
to
the
time
fixed
for
such
hearing,
may
file
26
written
objections
to
the
entry
of
an
order
approving
said
27
sale.
If
not
satisfied
that
the
sale,
mortgage,
exchange,
or
28
lease
has
been
made
in
conformity
with
law
and
that
it
is
to
the
29
best
interests
of
the
estate,
the
court
may
reject
the
sale,
30
mortgage,
exchange,
or
lease,
and
enter
such
orders
as
the
31
court
may
deem
advisable.
32
Sec.
54.
Section
633.477,
subsection
10,
Code
2024,
is
33
amended
to
read
as
follows:
34
10.
A
statement
as
to
whether
or
not
all
statutory
35
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requirements
pertaining
to
taxes
have
been
complied
with
1
including
whether
the
federal
estate
tax
due
has
been
paid,
2
whether
a
lien
continues
to
exist
for
any
federal
estate
tax,
3
and
whether
inheritance
tax
was
paid
or
a
return
was
filed
in
4
this
state
for
a
death
occurring
before
January
1,
2025
.
5
Sec.
55.
Section
633.479,
subsection
2,
paragraph
a,
6
subparagraph
(5),
Code
2024,
is
amended
to
read
as
follows:
7
(5)
Compliance
with
sections
section
422.27
,
and
section
8
450.58
for
deaths
occurring
before
January
1,
2025,
have
been
9
fulfilled.
10
Sec.
56.
Section
633.481,
Code
2024,
is
amended
to
read
as
11
follows:
12
633.481
Certificate
to
county
recorder
for
tax
purposes
13
without
administration.
14
When
an
inventory
or
report
is
filed
under
section
450.22
for
15
deaths
occurring
before
January
1,
2025
,
without
administration
16
of
the
estate
of
the
decedent,
the
heir
or
heir’s
attorney
17
shall
prepare
and
deliver
to
the
county
recorder
of
the
county
18
in
which
the
real
estate
is
situated
a
certificate
pertaining
19
to
each
parcel
of
real
estate
described
in
the
inventory
or
20
report.
Any
fees
for
certificates
or
recording
fees
required
21
by
this
section
or
section
633.480
shall
be
assessed
as
costs
22
of
administration.
The
fees
for
recording
and
indexing
the
23
instrument
shall
be
as
provided
in
section
331.604
.
The
county
24
recorder
shall
deliver
the
certificates
to
the
county
auditor
25
as
provided
in
section
558.58
.
26
Sec.
57.
Section
635.7,
subsection
1,
Code
2024,
is
amended
27
to
read
as
follows:
28
1.
The
personal
representative
is
required
to
file
the
29
report
and
inventory
for
which
provision
is
made
in
section
30
633.361
,
including
all
probate
and
nonprobate
assets.
This
31
chapter
does
not
exempt
the
personal
representative
from
32
complying
with
the
requirements
of
section
422.27
,
450.22
,
33
450.58
,
633.480
,
or
633.481
,
and
the
administration
of
an
34
estate
whether
converted
to
or
from
a
small
estate
shall
be
35
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considered
one
proceeding
pursuant
to
section
633.330
.
For
1
a
death
occurring
before
January
1,
2025,
this
chapter
does
2
not
exempt
the
personal
representative
from
complying
with
the
3
requirements
of
section
450.22
or
450.58.
4
Sec.
58.
Section
635.8,
subsection
1,
paragraph
e,
Code
5
2024,
is
amended
to
read
as
follows:
6
e.
A
statement
that
all
statutory
requirements
pertaining
to
7
taxes
have
been
complied
with,
including
whether
federal
estate
8
tax
due
has
been
paid,
whether
a
lien
continues
to
exist
for
9
any
federal
estate
tax,
and
whether
inheritance
tax
was
paid
10
or
a
tax
return
was
filed
in
this
state
for
a
death
occurring
11
before
January
1,
2025
.
12
Sec.
59.
Section
654.16,
subsection
2,
Code
2024,
is
amended
13
to
read
as
follows:
14
2.
If
a
homestead
is
designated,
the
court
shall
determine
15
the
fair
market
value
of
the
designated
homestead
before
16
the
sheriff’s
sale.
The
court
may
consult
with
the
county
17
appraisers
appointed
pursuant
to
section
450.24
for
deaths
18
occurring
before
January
1,
2025
,
or
with
one
or
more
19
independent
appraisers,
to
determine
the
fair
market
value
of
20
the
designated
homestead.
21
Sec.
60.
EFFECTIVE
DATE.
This
division
of
this
Act
takes
22
effect
January
1,
2025.
23
Sec.
61.
APPLICABILITY.
This
division
of
this
Act
applies
24
to
the
estates
of
decedents
dying
on
or
after
January
1,
2025.
25
EXPLANATION
26
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
27
the
explanation’s
substance
by
the
members
of
the
general
assembly.
28
This
bill
relates
to
the
administration
of
state
taxation,
29
the
lottery,
and
alcoholic
beverages
under
the
purview
of
the
30
department
of
revenue.
31
DIVISION
I
——
DISCLOSURE
OF
TAX
INFORMATION.
The
bill
32
specifies
and
updates
the
circumstances
the
department
of
33
revenue
(department)
may
disclose
state
tax
return
and
audit
34
information
to
law
enforcement.
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The
division
takes
effect
upon
enactment.
1
DIVISION
II
——
ANNUAL
REPORTING.
The
bill
strikes
the
2
requirement
that
the
department
annually
report
to
the
general
3
assembly
the
areas
of
recurrent
taxpayer
noncompliance
with
the
4
rules
of
the
department
including
any
recommendations
relating
5
to
the
noncompliance.
6
DIVISION
III
——
PROPERTY
TAX
——
EXTENSIONS.
Under
current
7
law,
a
claimant
may
ask
the
director
of
the
department,
the
8
county
treasurer,
or
the
director
of
the
department
of
health
9
and
human
services
for
an
extension
to
claim
a
reimbursement
10
for
rent
constituting
property
taxes
in
case
of
sickness,
11
absence,
or
disability.
The
bill
strikes
the
director
of
the
12
department
from
involvement
in
the
extension
request
by
the
13
claimant.
14
DIVISION
IV
——
FARM
TENANCY
INCOME
TAX
EXCLUSION.
15
Currently,
an
eligible
individual
may
exclude
income
received
16
by
the
individual
pursuant
to
a
farm
tenancy
covering
real
17
property
held
by
the
individual
for
10
or
more
years,
if
the
18
individual
materially
participated
in
a
farming
business
for
19
10
or
more
years.
The
bill
allows
the
eligible
individual
to
20
exclude
such
income
under
such
circumstances,
if
the
individual
21
materially
participated
in
a
farming
business
for
10
or
more
22
years
in
the
aggregate.
The
bill
further
specifies
the
term
23
“held”
is
to
be
determined
by
the
holding
period
provisions
of
24
section
1223
of
the
Internal
Revenue
Code
and
other
federal
25
regulations
which
is
identical
to
the
use
of
the
term
“held”
26
under
the
farming
business
exclusion
in
Code
section
422.7(13).
27
DIVISION
V
——
PASS-THROUGH
ENTITIES.
Under
current
law,
28
the
department
may
issue
a
notice
of
adjustment
(adjustment
of
29
tax)
to
a
partnership
or
pass-through
entity
pursuant
to
Code
30
section
422.25C,
and
specifies
that
the
notice
of
adjustment
31
is
appealable
pursuant
to
Code
sections
422.28
and
422.29.
32
The
bill
specifies
the
notice
of
adjustment
is
not
always
33
appealable
under
the
circumstances
provided
in
Code
section
34
422.25.
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The
division
takes
effect
upon
enactment
and
applies
1
retroactively
to
January
1,
2024.
2
DIVISION
VI
——
SALES
TAX
CHANGES.
Under
current
law,
a
3
purchaser,
user,
and
consumer
of
taxable
property
or
services
4
may
be
authorized
to
remit
tax
owed
directly
to
the
department
5
instead
of
the
tax
being
collected
and
paid
by
the
seller.
The
6
bill
specifies
that
in
order
to
qualify
for
the
direct
pay
tax
7
permit
such
a
taxpayer
must
accrue
a
tax
liability
of
more
than
8
$8,000
on
a
monthly
basis.
Currently,
such
a
taxpayer
must
9
accrue
a
tax
liability
of
$4,000
on
a
semimonthly
basis
in
10
order
to
qualify
for
the
direct
pay
tax
permit.
11
Currently,
if
the
department
determines
a
sales
tax
return
12
is
incorrect,
the
department
may
determine
the
amount
of
tax
13
due
from
information
or
knowledge
the
department
is
able
to
14
obtain,
including
using
any
mutually
agreed
upon
valid
and
15
reliable
sampling
technique.
The
bill
strikes
the
provision
16
requiring
the
sampling
technique
be
mutually
agreed
upon
by
the
17
taxpayer
and
the
department,
and
allows
the
department
to
use
18
such
a
sampling
technique
without
mutual
agreement
from
the
19
taxpayer.
20
DIVISION
VII
——
MOTOR
FUEL
TAXES.
Under
current
law
and
21
before
July
1,
2026,
the
department
determines
the
rate
of
22
excise
tax
imposed
on
each
gallon
of
ethanol
blended
gasoline
23
based
upon
the
distribution
percentage
calculated
in
Code
24
section
452A.3(1)(b),
and
the
excise
tax
rate
imposed
on
each
25
gallon
of
biodiesel
blended
fuel
based
on
the
distribution
26
percentage
calculated
in
Code
section
453A.3(3)(a)(2).
The
27
department
determines
the
distribution
percentage
based
upon
28
data
from
reports
filed
pursuant
to
Code
section
452A.33.
The
29
bill
allows
the
department
to
amend
the
initial
distribution
30
percentage
due
to
a
mistake,
or
if
there
is
a
late
report
filed
31
by
a
retail
dealer
to
the
department,
or
the
distribution
32
percentage
is
not
accurate.
33
The
bill
changes
the
due
date
of
a
biannual
tax
return
34
relating
to
electric
fuel
tax
due
in
January
by
one
day,
and
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modifies
the
biannual
tax
period
by
one
day.
1
The
bill
allows
a
person
who
uses
electric
fuel
for
a
2
nontaxable
purpose
to
provide
an
exemption
certificate
to
3
the
license
holder
selling
or
dispensing
the
fuel,
if
the
4
certificate
is
produced
by
the
department.
5
DIVISION
VIII
——
VETERANS
TRUST
FUND
AND
LOTTERY.
The
bill
6
strikes
the
requirement
that
the
department
report
semiannually
7
to
the
general
assembly’s
standing
committees
on
government
8
oversight
regarding
the
operations
of
the
lottery.
9
The
bill
establishes
new
criteria
triggering
distributions
10
from
the
veterans
trust
fund
when
the
balance
of
the
fund
11
equals
or
exceeds
$50
million.
Under
the
bill,
if
the
balance
12
of
the
veterans
trust
fund
is
$50
million
or
more
on
both
13
July
1
of
the
current
fiscal
year
and
July
1
of
the
preceding
14
fiscal
year,
the
moneys
from
the
veterans
trust
fund
shall
15
be
appropriated
to
the
department
for
distribution
to
county
16
directors
of
veteran
affairs
as
provided
in
current
law
in
Code
17
section
99G.39(3).
18
The
bill
establishes
new
setoff
program
procedures
(debt
19
collection)
for
a
debtor’s
lottery
prize
payment
awarded
as
20
cash
or
cash
equivalent.
The
bill
defines
“setoff
program”
to
21
mean
the
program
administered
by
the
department
pursuant
to
22
Code
section
421.65.
23
DIVISION
IX
——
ALCOHOLIC
BEVERAGES.
The
bill
defines
24
“operating
still”
to
mean
a
still
that
is
registered
with
the
25
federal
alcohol
and
tobacco
tax
and
trade
bureau
of
the
United
26
States
department
of
the
treasury
and
is
actively
used
to
27
manufacture
spirits.
The
term
“operating
still”
is
used
in
the
28
definition
of
“native
distillery”
in
Code
section
123.3(35).
29
The
bill
moves
portions
of
Code
section
123.30(4)
to
new
Code
30
section
123.30(5)
and
allows
a
person
holding
a
retail
alcohol
31
license
to
permit
a
customer
to
carry
an
open
container
of
beer
32
from
the
person’s
licensed
premises
into
another
immediately
33
adjacent
licensed
premises
that
is
covered
by
a
license
or
34
permit
that
authorizes
the
consumption
of
beer.
Current
law
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allows
a
person
to
carry
an
open
container
of
wine
under
such
1
circumstances
but
not
beer.
2
The
bill
allows
a
person
who
is
the
holder
of
a
class
3
“A”
native
distilled
spirits
license
to
be
granted
a
class
4
“C”
retail
alcohol
license
for
the
same
premises
licensed
5
under
the
class
“A”
native
distilled
spirit
license
where
the
6
manufacturing
of
native
distilled
spirits
occurs.
7
The
bill
provides
a
native
brewery
may
be
granted
a
class
“C”
8
retail
alcohol
license
or
a
special
class
“C”
retail
alcohol
9
license
for
the
premises
licensed
under
a
class
“A”
beer
permit
10
where
the
manufacturing
of
beer
occurs.
The
bill
provides
11
that
a
native
brewery
may
be
granted
not
more
than
two
class
12
“C”
retail
alcohol
licenses
or
granted
two
special
class
“C”
13
alcohol
licenses.
Under
the
bill,
a
native
brewery
may
be
14
issued
a
class
“C”
retail
alcohol
license
or
a
special
class
15
“C”
alcohol
license,
regardless
of
whether
the
person
is
a
16
manufacturer
of
native
distilled
spirits
pursuant
to
a
class
17
“A”
native
distilled
spirits
license
or
a
manufacturer
of
18
native
wine
pursuant
to
a
class
“A”
wine
permit.
19
The
bill
allows
a
person
who
is
the
holder
of
a
class
“A”
20
wine
permit
to
be
granted
a
class
“C”
retail
alcohol
license
21
or
a
special
class
“C”
retail
native
wine
license
for
the
same
22
premises
licensed
under
the
class
“A”
wine
permit
where
the
23
manufacturing
of
native
wine
occurs.
24
DIVISION
X
——
INHERITANCE
TAX
——
FUTURE
CODE
CHANGES
DUE
TO
25
REPEAL.
The
bill
changes
numerous
Code
sections
to
reflect
the
26
future
repeal
of
the
inheritance
tax
beginning
for
the
estates
27
of
decedents
dying
on
or
after
January
1,
2025.
However,
other
28
provisions
of
Code
chapter
450
relating
to
the
inheritance
tax
29
have
not
been
repealed.
The
division
takes
effect
January
1,
30
2025,
and
applies
to
the
estates
of
decedents
dying
on
or
after
31
that
date.
32
-26-
LSB
5331XD
(6)
90
jm/jh
26/
26
