Bill Text: IA SF2310 | 2015-2016 | 86th General Assembly | Introduced

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Bill Title: A bill for an act modifying the rebate of sales and use tax to the owner or operator of a raceway facility. (Formerly SSB 3178.)

Spectrum: Committee Bill

Status: (Introduced - Dead) 2016-04-29 - Motions to reconsider vote failed. S.J. 0. [SF2310 Detail]

Download: Iowa-2015-SF2310-Introduced.html

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Senate File 2310 - Introduced




                                 SENATE FILE       
                                 BY  COMMITTEE ON WAYS AND
                                     MEANS

                                 (SUCCESSOR TO SSB
                                     3178)

                                      A BILL FOR

  1 An Act modifying the rebate of sales and use tax to the owner or
  2    operator of a raceway facility.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN



  1  1    Section 1.  Section 423.4, subsection 11, paragraph c,
  1  2 subparagraph (4), subparagraph division (a), Code 2016, is
  1  3 amended to read as follows:
  1  4    (a)  Twenty=five percent of the The total project costs, as
  1  5 determined by the department, if such a project is undertaken
  1  6 by the owner or operator. For purposes of this subparagraph
  1  7 division, "project costs" means costs incurred by the owner or
  1  8 operator in connection with the planning, design, construction,
  1  9 and installation of property that becomes an integral part
  1 10 of the project under contract which project upon completion
  1 11 becomes part of the raceway facility, and other costs incurred
  1 12 by the owner or operator in connection with the project that
  1 13 are customarily associated with the renovation, remodeling,
  1 14 reconstruction, expansion, equipping, or improvement of
  1 15 real property. Project costs shall be determined after the
  1 16 department receives notification of completion of the project
  1 17 pursuant to paragraph "b", subparagraph (2), subparagraph
  1 18 division (b). However, if rebates cease because of a change of
  1 19 control of the raceway facility as provided in paragraph "c",
  1 20 subparagraph (5), project costs shall be determined as of the
  1 21 date the change of control occurs.
  1 22                           EXPLANATION
  1 23 The inclusion of this explanation does not constitute agreement with
  1 24 the explanation's substance by the members of the general assembly.
  1 25    This bill modifies the rebate of sales and use tax to
  1 26 the owner or operator of a raceway facility.  The rebate
  1 27 is available for sales tax collected on purchases made at
  1 28 the raceway facility, and for sales and use tax paid by a
  1 29 contractor in completion of a project at the raceway facility,
  1 30 provided the sales tax was collected or paid between January 1,
  1 31 2015, and January 1, 2025.  Under current law, the total rebate
  1 32 is limited to the lesser of $2 million or 25 percent of the
  1 33 project costs, if such a project is undertaken at the raceway
  1 34 facility. The bill amends this cap to provide that the total
  1 35 rebate is limited to the lesser of $2 million or the total
  2  1 project costs, if such a project is undertaken at the raceway
  2  2 facility.
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