Bill Text: IA SF88 | 2011-2012 | 84th General Assembly | Introduced
Bill Title: A bill for an act relating to tax revenues by increasing sales and use tax rates, by diverting a certain amount from the revenues generated from the increased rates to the natural resources and outdoor recreation trust fund and by using the balance of the revenues to provide a commercial property tax credit and including applicability provisions.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2011-12-31 - END OF 2011 ACTIONS [SF88 Detail]
Download: Iowa-2011-SF88-Introduced.html
Senate
File
88
-
Introduced
SENATE
FILE
88
BY
KIBBIE
A
BILL
FOR
An
Act
relating
to
tax
revenues
by
increasing
sales
and
use
1
tax
rates,
by
diverting
a
certain
amount
from
the
revenues
2
generated
from
the
increased
rates
to
the
natural
resources
3
and
outdoor
recreation
trust
fund
and
by
using
the
balance
4
of
the
revenues
to
provide
a
commercial
property
tax
credit
5
and
including
applicability
provisions.
6
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
7
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DIVISION
I
1
SALES
AND
USE
TAXES
2
Section
1.
Section
423.2,
subsection
1,
unnumbered
3
paragraph
1,
Code
2011,
is
amended
to
read
as
follows:
4
There
is
imposed
a
tax
of
six
seven
percent
upon
the
sales
5
price
of
all
sales
of
tangible
personal
property,
consisting
6
of
goods,
wares,
or
merchandise,
sold
at
retail
in
the
state
7
to
consumers
or
users
except
as
otherwise
provided
in
this
8
subchapter
.
9
Sec.
2.
Section
423.2,
subsections
2
and
3,
Code
2011,
are
10
amended
to
read
as
follows:
11
2.
A
tax
of
six
seven
percent
is
imposed
upon
the
sales
12
price
of
the
sale
or
furnishing
of
gas,
electricity,
water,
13
heat,
pay
television
service,
and
communication
service,
14
including
the
sales
price
from
such
sales
by
any
municipal
15
corporation
or
joint
water
utility
furnishing
gas,
electricity,
16
water,
heat,
pay
television
service,
and
communication
service
17
to
the
public
in
its
proprietary
capacity,
except
as
otherwise
18
provided
in
this
subchapter
,
when
sold
at
retail
in
the
state
19
to
consumers
or
users.
20
3.
A
tax
of
six
seven
percent
is
imposed
upon
the
sales
21
price
of
all
sales
of
tickets
or
admissions
to
places
of
22
amusement,
fairs,
and
athletic
events
except
those
of
23
elementary
and
secondary
educational
institutions.
A
tax
24
of
six
seven
percent
is
imposed
on
the
sales
price
of
an
25
entry
fee
or
like
charge
imposed
solely
for
the
privilege
of
26
participating
in
an
activity
at
a
place
of
amusement,
fair,
or
27
athletic
event
unless
the
sales
price
of
tickets
or
admissions
28
charges
for
observing
the
same
activity
are
taxable
under
this
29
subchapter
.
A
tax
of
six
seven
percent
is
imposed
upon
that
30
part
of
private
club
membership
fees
or
charges
paid
for
the
31
privilege
of
participating
in
any
athletic
sports
provided
club
32
members.
33
Sec.
3.
Section
423.2,
subsection
4,
paragraph
a,
Code
2011,
34
is
amended
to
read
as
follows:
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a.
A
tax
of
six
seven
percent
is
imposed
upon
the
sales
1
price
derived
from
the
operation
of
all
forms
of
amusement
2
devices
and
games
of
skill,
games
of
chance,
raffles,
and
bingo
3
games
as
defined
in
chapter
99B
,
and
card
game
tournaments
4
conducted
under
section
99B.7B
,
that
are
operated
or
conducted
5
within
the
state,
the
tax
to
be
collected
from
the
operator
in
6
the
same
manner
as
for
the
collection
of
taxes
upon
the
sales
7
price
of
tickets
or
admission
as
provided
in
this
section
.
8
Nothing
in
this
subsection
shall
legalize
any
games
of
skill
9
or
chance
or
slot-operated
devices
which
are
now
prohibited
by
10
law.
11
Sec.
4.
Section
423.2,
subsection
5,
Code
2011,
is
amended
12
to
read
as
follows:
13
5.
There
is
imposed
a
tax
of
six
seven
percent
upon
the
14
sales
price
from
the
furnishing
of
services
as
defined
in
15
section
423.1
.
16
Sec.
5.
Section
423.2,
subsection
7,
paragraph
a,
17
unnumbered
paragraph
1,
Code
2011,
is
amended
to
read
as
18
follows:
19
A
tax
of
six
seven
percent
is
imposed
upon
the
sales
20
price
from
the
sales,
furnishing,
or
service
of
solid
waste
21
collection
and
disposal
service.
22
Sec.
6.
Section
423.2,
subsection
8,
paragraph
a,
Code
2011,
23
is
amended
to
read
as
follows:
24
a.
A
tax
of
six
seven
percent
is
imposed
on
the
sales
25
price
from
sales
of
bundled
transactions.
For
the
purposes
of
26
this
subsection
,
a
“bundled
transaction”
is
the
retail
sale
of
27
two
or
more
distinct
and
identifiable
products,
except
real
28
property
and
services
to
real
property,
which
are
sold
for
one
29
nonitemized
price.
A
“bundled
transaction”
does
not
include
30
the
sale
of
any
products
in
which
the
sales
price
varies,
or
31
is
negotiable,
based
on
the
selection
by
the
purchaser
of
the
32
products
included
in
the
transaction.
33
Sec.
7.
Section
423.2,
subsection
9,
Code
2011,
is
amended
34
to
read
as
follows:
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9.
A
tax
of
six
seven
percent
is
imposed
upon
the
sales
1
price
from
any
mobile
telecommunications
service
which
this
2
state
is
allowed
to
tax
by
the
provisions
of
the
federal
Mobile
3
Telecommunications
Sourcing
Act,
Pub.
L.
No.
106-252,
4
U.S.C.
4
§
116
et
seq.
For
purposes
of
this
subsection
,
taxes
on
mobile
5
telecommunications
service,
as
defined
under
the
federal
Mobile
6
Telecommunications
Sourcing
Act
that
are
deemed
to
be
provided
7
by
the
customer’s
home
service
provider,
shall
be
paid
to
8
the
taxing
jurisdiction
whose
territorial
limits
encompass
9
the
customer’s
place
of
primary
use,
regardless
of
where
the
10
mobile
telecommunications
service
originates,
terminates,
11
or
passes
through
and
shall
in
all
other
respects
be
taxed
12
in
conformity
with
the
federal
Mobile
Telecommunications
13
Sourcing
Act.
All
other
provisions
of
the
federal
Mobile
14
Telecommunications
Sourcing
Act
are
adopted
by
the
state
of
15
Iowa
and
incorporated
into
this
subsection
by
reference.
With
16
respect
to
mobile
telecommunications
service
under
the
federal
17
Mobile
Telecommunications
Sourcing
Act,
the
director
shall,
if
18
requested,
enter
into
agreements
consistent
with
the
provisions
19
of
the
federal
Act.
20
Sec.
8.
Section
423.2,
subsection
11,
paragraph
b,
Code
21
2011,
is
amended
to
read
as
follows:
22
b.
Subsequent
to
the
deposit
into
the
general
fund
of
the
23
state
and
after
the
transfer
of
such
pursuant
to
paragraph
“a”
,
24
the
department
shall
do
the
following
in
the
order
prescribed:
25
(1)
Transfer
the
revenues
collected
under
chapter
423B
,
the
26
department
shall
transfer
one-sixth
of
such
.
27
(2)
Transfer
one-seventh
of
the
remaining
revenues
to
the
28
secure
an
advanced
vision
for
education
fund
created
in
section
29
423F.2
.
This
paragraph
subparagraph
is
repealed
December
31,
30
2029.
31
(3)
Transfer
one-seventh
of
the
remaining
revenues
in
the
32
following
manner:
33
(a)
To
the
natural
resources
and
outdoor
recreation
34
fund
created
pursuant
to
Article
VII,
sec.
10,
of
the
Iowa
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Constitution,
an
amount
equal
to
the
amount
generated
by
a
1
sales
tax
rate
equal
to
three-eights
of
one
percent.
2
(b)
To
the
commercial
property
tax
relief
fund
created
3
pursuant
to
section
426C.2,
the
remaining
revenues
after
4
transfer
of
the
revenues
pursuant
to
subparagraph
division
(a).
5
(c)
The
amount
transferred
under
this
subparagraph
(3)
6
shall
be
reduced
to
one-sixth
of
such
remaining
revenues
on
7
January
1,
2030.
8
Sec.
9.
Section
423.2,
subsection
13,
Code
2011,
is
amended
9
to
read
as
follows:
10
13.
The
sales
tax
rate
of
six
seven
percent
is
reduced
to
11
five
six
percent
on
January
1,
2030.
12
Sec.
10.
Section
423.5,
unnumbered
paragraph
1,
Code
2011,
13
is
amended
to
read
as
follows:
14
Except
as
provided
in
subsection
3
,
an
excise
tax
at
the
15
rate
of
six
seven
percent
of
the
purchase
price
or
installed
16
purchase
price
is
imposed
on
the
following:
17
Sec.
11.
Section
423.5,
subsection
9,
Code
2011,
is
amended
18
to
read
as
follows:
19
9.
The
use
tax
rate
of
six
seven
percent
is
reduced
to
five
20
six
percent
on
January
1,
2030.
21
Sec.
12.
Section
423.43,
subsection
1,
paragraph
b,
Code
22
2011,
is
amended
to
read
as
follows:
23
b.
Subsequent
to
the
deposit
into
the
general
fund
of
the
24
state
and
after
the
transfer
of
such
pursuant
to
paragraph
“a”
,
25
the
department
shall
do
the
following
in
the
order
prescribed:
26
(1)
Transfer
the
revenues
collected
under
chapter
423B
,
the
27
department
shall
transfer
one-sixth
of
such
.
28
(2)
Transfer
one-seventh
of
the
remaining
revenues
to
the
29
secure
an
advanced
vision
for
education
fund
created
in
section
30
423F.2
.
This
paragraph
subparagraph
is
repealed
December
31,
31
2029.
32
(3)
Transfer
one-seventh
of
the
remaining
revenues
to
the
33
commercial
property
tax
relief
fund
created
pursuant
to
section
34
426C.2.
The
amount
transferred
under
this
subparagraph
(3)
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shall
be
reduced
to
one-sixth
of
such
remaining
revenues
on
1
January
1,
2030.
2
DIVISION
II
3
COMMERCIAL
PROPERTY
TAX
RELIEF
4
Sec.
13.
NEW
SECTION
.
426C.1
Definitions.
5
For
purposes
of
this
chapter,
unless
the
context
otherwise
6
requires:
7
1.
“Department”
means
the
department
of
revenue.
8
2.
“Eligible
taxpayer”
means
a
taxpayer
meeting
the
9
requirements
of
section
426C.3.
10
3.
“Fund”
means
the
commercial
property
tax
relief
fund
11
created
in
section
426C.2.
12
Sec.
14.
NEW
SECTION
.
426C.2
Commercial
property
tax
relief
13
fund.
14
1.
A
commercial
property
tax
relief
fund
is
created
in
15
the
state
treasury.
The
fund
shall
consist
of
the
moneys
16
transferred
pursuant
to
section
423.2,
subsection
11,
paragraph
17
“b”
,
subparagraph
(3),
subparagraph
division
(b)
and
section
18
423.43,
subsection
1,
paragraph
“b”
,
subparagraph
(3).
19
2.
Moneys
in
the
fund
are
appropriated
to
the
department
for
20
purposes
of
providing
a
commercial
property
tax
credit
pursuant
21
to
this
chapter.
22
3.
Notwithstanding
section
12C.7,
subsection
2,
interest
or
23
earnings
on
moneys
in
the
fund
shall
be
credited
to
the
fund.
24
Notwithstanding
section
8.33,
moneys
remaining
in
the
fund
at
25
the
end
of
a
fiscal
year
shall
not
revert
to
the
general
fund
26
of
the
state.
27
Sec.
15.
NEW
SECTION
.
426C.3
Eligibility
——
annual
claims.
28
1.
A
taxpayer
who
is
liable
for
the
payment
of
property
tax
29
on
property
assessed
as
commercial
property
pursuant
to
section
30
441.21
shall
be
eligible
for
a
credit
toward
property
taxes
due
31
in
an
amount
not
to
exceed
the
taxpayer’s
annual
property
tax
32
liability.
33
2.
The
taxpayer
shall
annually
file
a
claim
for
the
credit.
34
The
claim
shall
be
filed
not
later
than
March
1
immediately
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preceding
the
fiscal
year
during
which
the
property
taxes
are
1
due.
2
Sec.
16.
NEW
SECTION
.
426C.4
Computation
of
taxes
——
3
certification
to
the
department.
4
On
or
before
April
1
of
each
year,
the
county
auditor
shall
5
compute
the
total
amount
of
property
taxes
to
be
levied
on,
or
6
estimated
to
be
levied
on,
all
commercial
property
eligible
7
for
a
credit
pursuant
to
this
chapter,
and
which
are
due
and
8
payable
in
the
ensuing
fiscal
year,
and
on
or
before
April
9
1
the
county
auditor
shall
certify
the
total
amount
to
the
10
department
of
revenue.
11
Sec.
17.
NEW
SECTION
.
426C.5
Apportionment
of
fund
moneys
12
——
issuance
of
warrants.
13
1.
The
moneys
in
the
fund
shall
be
apportioned
each
year
to
14
provide
a
property
tax
credit
to
commercial
property
taxpayers
15
as
follows:
16
a.
If
the
moneys
in
the
fund
equal
or
exceed
the
combined
17
property
tax
liability
of
all
eligible
taxpayers,
each
eligible
18
taxpayer
shall
receive
a
credit
in
an
amount
equal
to
the
19
taxpayer’s
property
tax
liability.
20
b.
If
the
moneys
in
the
fund
are
insufficient
to
cover
the
21
combined
property
tax
liability
of
the
eligible
businesses,
the
22
moneys
in
the
fund
shall
be
apportioned
in
a
pro
rata
amount
to
23
each
eligible
taxpayer.
The
department
shall
notify
the
county
24
auditors
of
the
pro
rata
percentage
on
or
before
June
15
of
25
each
year.
26
2.
Upon
receipt
of
the
pro
rata
percentage
from
the
director
27
of
revenue,
the
county
auditor
shall
determine
the
amount
to
be
28
credited
to
each
eligible
taxpayer
and
shall
enter
the
amount
29
upon
the
tax
lists
as
a
credit
against
the
tax
levied
on
each
30
eligible
business
on
which
there
has
been
made
an
allowance
of
31
credit
before
delivering
the
tax
lists
to
the
county
treasurer.
32
3.
After
receiving
the
certified
amounts
from
the
county
33
auditors
pursuant
to
section
426C.4,
the
director
of
revenue
34
shall
authorize
the
department
of
administrative
services
to
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issue
warrants
on
the
fund
payable
to
the
county
treasurers
1
in
the
amount
certified
by
the
county
auditor
of
each
county
2
or
the
pro
rata
amount,
as
applicable.
The
department
of
3
administrative
services
shall
mail
the
warrants
to
the
county
4
auditors
on
July
15
of
each
year.
5
4.
The
county
treasurer,
pursuant
to
section
445.5,
6
subsection
1,
shall
show
on
each
tax
statement
the
amount
of
7
tax
credit
received
by
the
eligible
taxpayer.
8
Sec.
18.
NEW
SECTION
.
426C.6
Rules.
9
The
director
of
revenue
shall
prescribe
forms
and
adopt
10
rules
as
necessary
to
carry
out
the
purposes
of
this
chapter.
11
Sec.
19.
APPLICABILITY
DATE.
This
division
of
this
Act
12
applies
to
property
taxes
due
and
payable
in
fiscal
years
13
beginning
on
or
after
July
1,
2012.
14
EXPLANATION
15
This
bill
increases
the
sales
and
use
taxes
and
uses
the
16
increased
revenues
to
fund
the
natural
resources
and
outdoor
17
recreation
trust
fund
and
to
provide
a
commercial
property
tax
18
credit.
19
Currently,
the
sales
and
use
taxes
are
imposed
at
the
rate
20
of
6
percent.
Division
I
of
the
bill
amends
the
several
21
provisions
imposing
these
taxes
by
increasing
the
rate
to
7
22
percent.
23
In
November
2010,
Iowa
voters
ratified
an
amendment
to
the
24
Iowa
Constitution.
The
amendment
creates
a
natural
resources
25
and
outdoor
recreation
trust
fund
in
the
state
treasury
for
26
purposes
of
funding
certain
environmental
and
natural
resource
27
programs
and
diverts
an
amount
equal
to
a
sales
tax
rate
28
of
three-eighths
of
1
percent
into
the
fund.
Moneys
are
29
not
credited
to
the
fund
until
the
state
sales
tax
rate
is
30
increased.
The
amendment
also
directs
the
general
assembly
to
31
provide
for
the
implementation
of
the
fund.
32
Since
division
I
increases
the
state
sales
tax
rate,
the
33
division
provides
for
the
required
transfer
of
moneys
into
34
the
fund.
However,
the
division
increases
the
sales
tax
rate
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by
more
than
the
amount
required
to
be
transferred,
so
the
1
division
also
provides
for
the
transfer
of
the
balance
of
the
2
revenues
plus
the
moneys
from
the
increased
use
tax
into
a
3
commercial
property
tax
relief
fund.
4
Division
II
of
the
bill
creates
the
commercial
property
tax
5
relief
fund
and
provides
a
tax
credit
for
commercial
property
6
taxpayers.
7
The
property
tax
relief
fund
is
created
in
the
state
treasury
8
consisting
of
the
moneys
from
the
increased
sales
and
use
taxes
9
not
transferred
to
the
natural
resources
and
outdoor
recreation
10
trust
fund.
Moneys
in
the
fund
are
appropriated
to
the
11
department
of
revenue
for
purposes
of
providing
a
commercial
12
property
tax
credit.
Interest
and
earnings
on
moneys
in
the
13
fund
are
credited
to
the
fund,
and
moneys
in
the
fund
do
not
14
revert
to
the
general
fund
of
the
state.
15
The
division
provides
that
all
commercial
property
taxpayers
16
are
eligible
for
a
tax
credit
in
an
amount
not
to
exceed
their
17
annual
property
tax
liability
and
requires
each
taxpayer
18
to
file
a
claim
for
credit
annually
by
March
1
immediately
19
preceding
the
fiscal
year
during
which
the
property
taxes
are
20
due.
21
The
division
provides
that
on
or
before
April
1
of
each
22
year,
the
county
auditors
must
provide
to
the
department
of
23
revenue
a
report
of
the
total
amount
of
taxes
levied
or
to
be
24
levied
on
the
taxpayers
eligible
for
a
credit.
The
department
25
determines
whether
there
are
sufficient
moneys
in
the
fund
to
26
cover
the
combined
tax
liability
of
all
the
eligible
taxpayers
27
and
apportions
the
moneys
accordingly.
If
the
moneys
in
the
28
fund
are
sufficient,
each
eligible
business
receives
an
amount
29
equal
to
its
tax
liability.
If
the
moneys
in
the
fund
are
not
30
sufficient,
each
eligible
taxpayer
receives
a
pro
rata
share
of
31
the
moneys
in
the
fund.
32
The
division
directs
the
director
of
revenue
to
authorize
33
the
department
of
administrative
services
to
issue
warrants
34
on
the
fund
payable
to
the
county
treasurers
in
the
amount
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certified
as
the
amount
of
credits
to
which
businesses
in
that
1
county
are
entitled.
The
county
auditor
determines
the
amount
2
to
be
credited
to
each
eligible
taxpayer.
The
county
treasurer
3
must
show
on
the
tax
statement
the
amount
of
tax
credit
for
the
4
eligible
taxpayer.
5
Division
II
of
the
bill
applies
to
property
taxes
due
and
6
payable
in
fiscal
years
beginning
on
or
after
July
1,
2012.
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