Bill Text: IA SF2329 | 2013-2014 | 85th General Assembly | Introduced
Bill Title: A bill for an act relating to the tax imposed on certain natural gas consumed in the state by modifying tax rates, providing for a natural gas consumer tax supplement, making appropriations, and including effective date provisions.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2014-03-04 - Subcommittee, Hogg, Bolkcom, and Feenstra. S.J. 466. [SF2329 Detail]
Download: Iowa-2013-SF2329-Introduced.html
Senate
File
2329
-
Introduced
SENATE
FILE
2329
BY
RAGAN
A
BILL
FOR
An
Act
relating
to
the
tax
imposed
on
certain
natural
gas
1
consumed
in
the
state
by
modifying
tax
rates,
providing
2
for
a
natural
gas
consumer
tax
supplement,
making
3
appropriations,
and
including
effective
date
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
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Section
1.
Section
437A.5,
subsection
2,
Code
2014,
is
1
amended
to
read
as
follows:
2
2.
a.
If
For
tax
years
beginning
on
or
after
January
1,
3
2015,
if
natural
gas
is
consumed
in
this
state
by
a
consumer
4
who
consumed
sixty
million
or
more
therms
of
natural
gas
in
the
5
tax
year
,
whether
such
natural
gas
is
purchased
or
transferred,
6
and
the
delivery,
purchase,
or
transference
of
such
natural
7
gas
is
not
subject
to
the
tax
imposed
under
subsection
1
,
a
8
tax
is
imposed
on
the
consumer
at
the
rates
prescribed
under
9
subsection
1
.
10
b.
(1)
For
the
tax
year
beginning
January
1,
2014,
if
11
natural
gas
is
consumed
in
this
state
by
a
consumer
who
12
consumes
less
than
sixty
million
therms
of
natural
gas
in
the
13
tax
year,
whether
such
natural
gas
is
purchased
or
transferred,
14
and
the
delivery,
purchase,
or
transference
of
such
natural
15
gas
is
not
subject
to
the
tax
imposed
under
subsection
1,
a
16
tax
is
imposed
on
the
consumer
at
fifty
percent
of
the
rates
17
prescribed
under
subsection
1.
18
(2)
For
tax
years
beginning
on
or
after
January
1,
2015,
19
if
natural
gas
is
consumed
in
this
state
by
a
consumer
who
20
consumes
less
than
sixty
million
therms
of
natural
gas
in
the
21
tax
year,
whether
such
natural
gas
is
purchased
or
transferred,
22
and
the
delivery,
purchase,
or
transference
of
such
natural
23
gas
is
not
subject
to
the
tax
imposed
under
subsection
1,
a
24
tax
shall
not
be
imposed
under
this
section
on
the
consumer’s
25
consumption
of
natural
gas.
26
Sec.
2.
Section
437A.5,
subsection
8,
unnumbered
paragraph
27
1,
Code
2014,
is
amended
to
read
as
follows:
28
If,
for
any
tax
year
after
calendar
year
1998,
the
total
29
taxable
therms
of
natural
gas
required
to
be
reported
by
30
taxpayers
pursuant
to
section
437A.8,
subsection
1
,
paragraphs
31
“a”
and
“b”
,
with
respect
to
any
natural
gas
competitive
32
service
area
increases
or
decreases
by
more
than
the
threshold
33
percentage
from
the
average
of
the
base
year
amounts
for
that
34
natural
gas
competitive
service
area
during
the
immediately
35
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preceding
five
calendar
years,
the
tax
rate
imposed
under
1
subsection
1
,
paragraph
“a”
,
and
subsection
2
for
that
tax
year
2
shall
be
recalculated
by
the
director
for
that
natural
gas
3
competitive
service
area
so
that
the
total
of
the
replacement
4
natural
gas
delivery
taxes
required
to
be
reported
pursuant
to
5
section
437A.8,
subsection
1
,
paragraph
“e”
,
for
that
natural
6
gas
competitive
service
area
with
respect
to
the
tax
imposed
7
under
subsection
1
,
paragraph
“a”
,
and
subsection
2
,
and
the
8
natural
gas
consumer
tax
supplement
amount
for
that
natural
gas
9
competitive
service
area
shall
be
as
follows:
10
Sec.
3.
Section
437A.5,
subsection
8,
paragraphs
a
and
b,
11
Code
2014,
are
amended
to
read
as
follows:
12
a.
If
the
number
of
therms
of
natural
gas
required
to
be
13
reported
increased
by
more
than
the
threshold
percentage,
one
14
hundred
two
percent
of
the
sum
of
such
taxes
required
to
be
15
reported
by
taxpayers
for
that
natural
gas
competitive
service
16
area
for
the
immediately
preceding
tax
year
and
the
natural
gas
17
consumer
tax
supplement
amount
for
that
natural
gas
competitive
18
service
area
for
the
immediately
preceding
tax
year
.
19
b.
If
the
number
of
therms
of
natural
gas
required
to
be
20
reported
decreased
by
more
than
the
threshold
percentage,
21
ninety-eight
percent
of
the
sum
of
such
taxes
required
to
be
22
reported
by
taxpayers
for
that
natural
gas
competitive
service
23
area
for
the
immediately
preceding
tax
year
and
the
natural
gas
24
consumer
tax
supplement
amount
for
that
natural
gas
competitive
25
service
area
for
the
immediately
preceding
tax
year
.
26
Sec.
4.
Section
437A.5,
subsection
8,
paragraph
c,
27
subparagraph
(4),
Code
2014,
is
amended
to
read
as
follows:
28
(4)
For
purposes
of
this
subsection
,
“base
year
amount”
29
means
for
calendar
years
prior
to
tax
year
1999,
the
sum
of
the
30
therms
of
natural
gas
delivered
to
consumers
within
a
natural
31
gas
competitive
service
area
by
the
taxpayer
principally
32
serving
such
natural
gas
competitive
service
area
which
would
33
have
been
subject
to
taxation
under
this
section
had
this
34
section
been
in
effect
for
those
years;
and
for
tax
years
35
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after
calendar
year
1998,
the
taxable
therms
of
natural
gas
1
required
to
be
reported
by
taxpayers
pursuant
to
section
2
437A.8,
subsection
1
,
paragraphs
“a”
and
“b”
,
with
respect
to
3
any
natural
gas
competitive
service
area.
4
Sec.
5.
NEW
SECTION
.
437A.5A
Natural
gas
consumer
tax
5
supplement
——
appropriation.
6
1.
a.
For
the
fiscal
year
beginning
July
1,
2015,
there
7
is
appropriated
from
the
general
fund
of
the
state
to
the
8
department
of
revenue
an
amount
equal
to
the
number
of
therms
9
of
natural
gas
subject
to
tax
under
section
437A.5,
subsection
10
2,
paragraph
“b”
,
subparagraph
(1),
for
the
tax
year
beginning
11
January
1,
2014,
multiplied
by
fifty
percent
of
the
rates
12
applicable
to
the
therms
of
natural
gas
as
prescribed
under
13
section
437A.5,
subsection
1,
for
that
tax
year,
to
be
used
as
14
provided
in
subsection
2
of
this
section.
15
b.
For
each
fiscal
year
beginning
on
or
after
July
1,
2016,
16
there
is
appropriated
from
the
general
fund
of
the
state
to
17
the
department
of
revenue
an
amount
equal
to
the
number
of
18
therms
of
natural
gas
exempted
from
tax
under
section
437A.5,
19
subsection
2,
paragraph
“b”
,
subparagraph
(2),
for
the
tax
year
20
beginning
January
1
of
the
calendar
year
preceding
the
fiscal
21
year,
multiplied
by
the
rates
prescribed
under
section
437A.5,
22
subsection
1,
for
that
tax
year,
to
be
used
as
provided
in
23
subsection
2
of
this
section.
24
c.
Moneys
appropriated
by
the
general
assembly
to
the
25
department
under
this
subsection
are
not
subject
to
a
uniform
26
reduction
in
appropriations
in
accordance
with
section
8.31.
27
2.
a.
Moneys
appropriated
to
the
department
under
28
subsection
1
shall
be
used
by
the
department
for
the
payment
29
of
natural
gas
consumer
tax
supplement
amounts
and
shall
be
30
allocated
among
the
local
taxing
districts
according
to
the
31
allocations
of
replacement
taxes
made
by
the
director
and
the
32
department
of
management
pursuant
to
section
437A.15
for
the
33
same
tax
year.
34
b.
Natural
gas
consumer
tax
supplement
amounts
under
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this
section
shall,
following
allocation
to
the
local
taxing
1
districts
by
the
director
and
the
department
of
management,
2
be
remitted
to
the
county
treasurers
each
year
as
provided
in
3
section
437A.8,
subsection
4.
4
Sec.
6.
Section
437A.8,
subsection
1,
paragraph
b,
Code
5
2014,
is
amended
to
read
as
follows:
6
b.
The
total
kilowatt-hours
of
electricity
consumed
by
the
7
taxpayer
within
each
electric
competitive
service
area
during
8
the
tax
year
subject
to
tax
under
section
437A.4,
subsection
2
,
9
and
the
total
therms
of
natural
gas
consumed
by
the
taxpayer
10
within
each
natural
gas
competitive
service
area
during
the
tax
11
year
that
are
subject
to
tax
under
section
437A.5,
subsection
12
2
,
paragraph
“a”
,
subject
to
tax
under
section
437A.5,
13
subsection
2,
paragraph
“b”
,
subparagraph
(1),
or
that
are
14
excluded
from
tax
under
section
437A.5,
subsection
2,
paragraph
15
“b”
,
subparagraph
(2)
.
16
Sec.
7.
Section
437A.8,
subsection
4,
paragraph
a,
Code
17
2014,
is
amended
to
read
as
follows:
18
a.
At
the
time
of
filing
the
return
required
by
subsection
19
1
with
the
director,
the
taxpayer
shall
calculate
the
tentative
20
replacement
tax
due
for
the
tax
year.
The
director
shall
21
compute
any
adjustments
to
the
replacement
tax
required
by
22
subsection
7
and
by
section
437A.4,
subsection
8
,
and
section
23
437A.5,
subsection
8
,
and
notify
the
taxpayer
of
any
such
24
adjustments
in
accordance
with
the
requirements
of
such
25
provisions.
The
director
and
the
department
of
management
26
shall
compute
the
allocation
of
replacement
taxes
and
27
natural
gas
consumer
tax
supplement
amounts
determined
under
28
section
437A.5A
among
local
taxing
districts
and
report
such
29
allocations
to
county
treasurers
pursuant
to
section
437A.15
.
30
Based
on
such
allocations,
the
treasurer
of
each
county
shall
31
notify
each
taxpayer
on
or
before
August
31
following
a
tax
32
year
of
its
replacement
tax
obligation
to
the
county
treasurer.
33
On
or
before
September
30,
2000,
and
on
or
before
September
34
30
of
each
subsequent
year,
the
taxpayer
shall
remit
to
the
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county
treasurer
of
each
county
to
which
such
replacement
tax
1
is
allocated
pursuant
to
section
437A.15
,
one-half
of
the
2
replacement
tax
so
allocated,
and
on
or
before
the
succeeding
3
March
31,
the
taxpayer
shall
remit
to
the
county
treasurers
the
4
remaining
replacement
tax
so
allocated.
On
or
before
September
5
30,
2015,
and
on
or
before
September
30
of
each
subsequent
6
year,
the
department
shall
remit
to
the
county
treasurer
of
7
each
county
to
which
such
natural
gas
consumer
tax
supplement
8
amounts
under
section
437A.5A
are
allocated
pursuant
to
section
9
437A.15,
one-half
of
the
supplement
amount
so
allocated,
and
10
on
or
before
the
succeeding
March
31,
the
department
shall
11
remit
to
the
county
treasurers
the
remaining
supplement
amount
12
so
allocated.
If
notification
of
a
taxpayer’s
replacement
tax
13
obligation
is
not
mailed
by
a
county
treasurer
on
or
before
14
August
31
following
a
tax
year,
such
taxpayer
shall
have
thirty
15
days
from
the
date
the
notification
is
mailed
to
remit
one-half
16
of
the
replacement
tax
otherwise
required
by
this
subsection
17
to
be
remitted
to
such
county
treasurer
on
or
before
September
18
30.
If
a
taxpayer
fails
to
timely
remit
replacement
taxes
19
as
provided
in
this
subsection
,
the
county
treasurer
of
each
20
affected
county
shall
notify
the
director
of
such
failure.
21
Sec.
8.
Section
437A.8,
subsection
6,
Code
2014,
is
amended
22
to
read
as
follows:
23
6.
Notwithstanding
subsections
1
through
5
,
a
taxpayer
24
shall
not
be
required
to
file
a
return
otherwise
required
by
25
this
section
or
remit
any
replacement
tax
for
any
tax
year
26
in
which
the
taxpayer’s
replacement
tax
liability
before
27
credits
is
three
hundred
dollars
or
less,
provided
that
all
28
electric
companies,
electric
cooperatives,
municipal
utilities,
29
consumers
described
in
section
437A.5,
subsection
2,
paragraph
30
“b”
,
and
natural
gas
companies
shall
file
a
return,
regardless
31
of
the
taxpayer’s
replacement
tax
liability.
32
Sec.
9.
Section
437A.15,
subsections
1
and
2,
Code
2014,
are
33
amended
to
read
as
follows:
34
1.
The
director
and
the
department
of
management
shall
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compute
the
allocation
of
all
replacement
tax
revenues
other
1
than
transfer
replacement
tax
revenues
and
natural
gas
consumer
2
tax
supplement
amounts
received
pursuant
to
section
437A.5A
3
among
the
local
taxing
districts
in
accordance
with
this
4
section
and
shall
report
such
allocation
by
local
taxing
5
districts
to
the
county
treasurers
on
or
before
August
15
6
following
a
tax
year.
7
2.
a.
The
director
shall
determine
and
report
to
the
8
department
of
management
the
total
replacement
taxes
to
be
9
collected
from
each
taxpayer
for
the
tax
year
on
or
before
July
10
30
following
such
tax
year.
11
b.
The
director
shall
also
determine
and
report
to
the
12
department
of
management
the
total
natural
gas
consumer
tax
13
supplement
amount
under
section
437A.5A
for
the
tax
year
on
or
14
before
July
30
following
such
tax
year.
Natural
gas
consumer
15
tax
supplement
amounts
provided
under
section
437A.5A
shall,
16
for
the
purposes
of
this
section,
be
considered
replacement
17
taxes
owed
by
a
taxpayer
and
allocated
among
the
local
taxing
18
districts
as
if
the
supplement
amounts
were
replacement
taxes
19
paid
by
the
consumer
of
the
therms
of
natural
gas
under
section
20
437A.5,
subsection
2,
used
to
calculate
the
supplement
amount.
21
Sec.
10.
EFFECTIVE
UPON
ENACTMENT.
This
Act,
being
deemed
22
of
immediate
importance,
takes
effect
upon
enactment.
23
EXPLANATION
24
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
25
the
explanation’s
substance
by
the
members
of
the
general
assembly.
26
This
bill
relates
to
the
tax
imposed
on
certain
natural
gas
27
consumed
in
the
state
by
modifying
tax
rates
and
providing
for
28
a
natural
gas
consumer
tax
supplement.
29
Current
Code
section
437A.5(2)
provides
that
if
natural
30
gas
is
consumed
in
this
state
and
the
delivery,
purchase,
or
31
transference
of
such
natural
gas
is
not
subject
to
the
natural
32
gas
delivery
replacement
tax,
a
tax
is
imposed
on
the
consumer
33
at
the
same
rate
as
the
natural
gas
delivery
replacement
tax
34
for
the
applicable
natural
gas
competitive
service
area.
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The
bill
continues
the
imposition
of
this
tax
rate
on
those
1
consumers
who
consume
60
million
or
more
therms
of
natural
gas
2
in
a
tax
year.
For
the
tax
year
beginning
January
1,
2014,
3
those
consumers
who
consume
less
than
60
million
therms
of
4
natural
gas
in
the
applicable
tax
year
are
subject
to
a
tax
5
rate
that
is
50
percent
of
the
natural
gas
delivery
replacement
6
tax
for
the
applicable
natural
gas
competitive
service
area.
7
In
tax
years
beginning
on
or
after
January
1,
2015,
for
those
8
consumers
who
consume
less
than
60
million
therms
of
natural
9
gas
in
a
tax
year,
the
therms
of
natural
gas
consumed
are
not
10
subject
to
tax.
11
The
bill
establishes
a
natural
gas
consumer
tax
supplement
12
to
replace
tax
revenue
reductions
that
will
result
from
changes
13
in
the
bill
to
the
imposition
of
natural
gas
consumer
tax
rates
14
under
Code
section
437A.5(2),
establishes
the
methodology
15
to
calculate
the
amount
of
the
supplement,
and
for
fiscal
16
years
beginning
on
or
after
July
1,
2015,
appropriates
the
17
necessary
amounts
from
the
general
fund
of
the
state
to
the
18
department
of
revenue.
The
bill
requires
that
the
natural
gas
19
consumer
tax
supplement
amounts
be
allocated
among
the
local
20
taxing
districts
according
to
the
allocations
of
replacement
21
taxes
made
by
the
director
of
revenue
and
the
department
of
22
management
pursuant
to
Code
section
437A.15
for
the
same
23
tax
year.
Following
determination
of
such
allocations,
the
24
natural
gas
consumer
tax
supplement
amounts
are
remitted
by
25
the
department
of
revenue
to
the
appropriate
county
treasurers
26
at
the
same
times
of
the
year
as
replacement
taxes
owed
by
27
taxpayers.
28
The
bill
provides
that
moneys
appropriated
for
the
natural
29
gas
consumer
tax
supplement
are
not
subject
to
a
uniform
30
reduction
in
appropriations
in
accordance
with
Code
section
31
8.31.
32
The
bill
also
makes
changes
to
provisions
in
Code
chapter
33
437A
to
provide
for
the
continued
reporting
by
consumers
on
the
34
amount
of
natural
gas
therms
that
are
consumed
regardless
of
35
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