Bill Text: IA SSB3186 | 2023-2024 | 90th General Assembly | Introduced
Bill Title: A bill for an act establishing an excise tax on the sales price of consumable hemp products sold or purchased.(See SF 2417.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2024-03-20 - Committee report approving bill, renumbered as SF 2417. [SSB3186 Detail]
Download: Iowa-2023-SSB3186-Introduced.html
Senate
Study
Bill
3186
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
WAYS
AND
MEANS
BILL
BY
CHAIRPERSON
DAWSON)
A
BILL
FOR
An
Act
establishing
an
excise
tax
on
the
sales
price
of
1
consumable
hemp
products
sold
or
purchased.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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Section
1.
Section
423.3,
Code
2024,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
110.
The
sales
price
from
the
sale
or
3
purchase
of
consumable
hemp
products
as
defined
in
section
4
204.2.
5
Sec.
2.
NEW
SECTION
.
423H.1
Definitions.
6
1.
For
the
purposes
of
this
chapter,
unless
the
context
7
otherwise
requires:
8
a.
“Consumable
hemp
product”
means
the
same
as
defined
in
9
section
204.2.
10
b.
“Department”
means
the
department
of
revenue.
11
c.
“Sales
price”
or
“purchase
price”
means
the
same
as
12
defined
in
section
423.1.
13
2.
All
other
words
and
phrases
used
in
this
chapter
and
14
defined
in
section
423.1
have
the
meaning
given
them
by
section
15
423.1
for
the
purposes
of
this
chapter.
16
Sec.
3.
NEW
SECTION
.
423H.2
Tax
imposed.
17
A
tax
of
twenty-five
percent
is
imposed
on
the
sales
price
18
or
purchase
price
of
all
consumable
hemp
products
sold
or
used
19
in
the
state
of
Iowa.
This
tax
shall
be
collected
and
paid
to
20
the
department
by
any
retailer,
retailer
maintaining
a
place
of
21
business
in
this
state,
or
user
who
would
be
responsible
for
22
collection
and
payment
of
the
tax
if
it
were
a
sales
or
use
tax
23
imposed
under
chapter
423.
24
Sec.
4.
NEW
SECTION
.
423H.3
Exemptions.
25
There
is
exempted
from
tax
imposed
by
this
chapter
the
26
following:
27
1.
The
sales
price
from
the
sales
of
consumable
hemp
28
products
that
this
state
is
prohibited
from
taxing
under
the
29
Constitution
of
the
United
States
or
the
Constitution
of
the
30
State
of
Iowa.
31
2.
The
sales
price
or
purchase
price
of
sales
for
resale
of
32
consumable
hemp
products.
33
Sec.
5.
NEW
SECTION
.
423H.4
Administration
by
director.
34
1.
The
director
of
revenue
shall
administer
the
excise
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tax
on
consumable
hemp
products
as
nearly
as
possible
in
1
conjunction
with
the
administration
of
the
state
sales
and
use
2
tax
law,
except
that
portion
of
the
law
which
implements
the
3
streamlined
sales
and
use
tax
agreement.
The
director
shall
4
provide
appropriate
forms,
or
provide
on
the
regular
state
5
tax
forms,
for
reporting
the
sale
and
use
of
consumable
hemp
6
products
excise
tax
liability.
All
moneys
received
and
all
7
refunds
shall
be
deposited
in
or
withdrawn
from
the
general
8
fund
of
the
state.
9
2.
The
director
may
require
all
persons
who
are
engaged
10
in
the
business
of
deriving
any
sales
price
or
purchase
11
price
subject
to
tax
under
this
chapter
to
register
with
12
the
department.
The
director
may
also
require
a
tax
permit
13
applicable
only
to
this
chapter
for
any
retailer
not
14
collecting,
or
any
user
not
paying,
taxes
under
chapter
423.
15
3.
Section
422.25,
subsection
4,
sections
422.30,
422.67,
16
and
422.68,
section
422.69,
subsection
1,
sections
422.70,
17
422.71,
422.72,
422.74,
and
422.75,
section
423.14,
subsection
18
1,
and
sections
423.23,
423.24,
423.25,
423.31
through
19
423.35,
423.37
through
423.42,
and
423.47,
consistent
with
20
the
provisions
of
this
chapter,
apply
with
respect
to
the
tax
21
authorized
under
this
chapter,
in
the
same
manner
and
with
the
22
same
effect
as
if
the
excise
taxes
on
consumable
hemp
product
23
sales
or
use
were
retail
sales
taxes
within
the
meaning
of
24
those
statutes.
Notwithstanding
this
subsection,
the
director
25
shall
provide
for
monthly
filing
of
returns
and
for
other
than
26
monthly
filing
of
returns
both
as
prescribed
in
section
423.31.
27
All
taxes
collected
under
this
chapter
by
a
retailer
or
any
28
user
are
deemed
to
be
held
in
trust
for
the
state
of
Iowa.
29
EXPLANATION
30
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
31
the
explanation’s
substance
by
the
members
of
the
general
assembly.
32
This
bill
establishes
an
excise
tax
on
the
sales
price
of
33
consumable
hemp
products
sold
or
purchased
in
this
state.
34
The
bill
defines
“consumable
hemp
product”
to
mean
the
same
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as
defined
in
Code
section
204.2.
1
The
bill
imposes
an
excise
tax
of
25
percent
on
the
sales
2
price
of
consumable
hemp
products,
but
exempts
the
sales
price
3
of
consumable
hemp
products
from
the
sales
tax.
4
The
department
of
revenue
(DOR)
is
required
to
administer
5
the
excise
tax.
The
bill
requires
DOR
to
administer
the
6
excise
tax
as
nearly
as
possible
in
conjunction
with
the
7
administration
of
the
state
sales
and
use
tax
laws.
8
The
moneys
collected
from
the
excise
tax
imposed
in
the
bill
9
are
deposited
into
the
general
fund
of
the
state.
10
By
operation
of
Code
section
423.6,
an
item
exempt
from
the
11
imposition
of
the
sales
tax
is
also
exempt
from
the
use
tax
12
imposed
in
Code
section
423.5.
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