Bill Text: IA HF2641 | 2019-2020 | 88th General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: A bill for an act relating to state taxation and related laws of the state, including the administration by the department of revenue of certain tax credits and refunds, income taxes, moneys and credits taxes, sales and use taxes, partnership and pass-through entity audits, and by modifying provisions relating to the reinstatement of business entities, the assessment and valuation of property, the Iowa reinvestment Act, short-term rentals, special registration plates, and animals and food, and providing penalties, and including effective date and retroactive applicability provisions. (Formerly HSB 696.) Effective date: 06/29/2020, 07/01/2020. Applicability date: 03/23/2020, 01/01/2019, 07/01/2005, 01/01/2022, 05/30/2014, 06/10/2020, 03/27/2020, 01/01/2020, 07/01/2020.
Spectrum: Committee Bill
Status: (Passed) 2020-06-29 - Signed by Governor. H.J. 792. [HF2641 Detail]
Download: Iowa-2019-HF2641-Introduced.html
Bill Title: A bill for an act relating to state taxation and related laws of the state, including the administration by the department of revenue of certain tax credits and refunds, income taxes, moneys and credits taxes, sales and use taxes, partnership and pass-through entity audits, and by modifying provisions relating to the reinstatement of business entities, the assessment and valuation of property, the Iowa reinvestment Act, short-term rentals, special registration plates, and animals and food, and providing penalties, and including effective date and retroactive applicability provisions. (Formerly HSB 696.) Effective date: 06/29/2020, 07/01/2020. Applicability date: 03/23/2020, 01/01/2019, 07/01/2005, 01/01/2022, 05/30/2014, 06/10/2020, 03/27/2020, 01/01/2020, 07/01/2020.
Spectrum: Committee Bill
Status: (Passed) 2020-06-29 - Signed by Governor. H.J. 792. [HF2641 Detail]
Download: Iowa-2019-HF2641-Introduced.html
House
File
2641
-
Introduced
HOUSE
FILE
2641
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
HSB
696)
A
BILL
FOR
An
Act
relating
to
state
taxation
and
related
laws
of
the
1
state,
including
the
administration
by
the
department
of
2
revenue
of
certain
tax
credits
and
refunds,
income
taxes,
3
moneys
and
credits
taxes,
sales
and
use
taxes,
partnership
4
and
pass-through
entity
audits,
and
by
modifying
provisions
5
relating
to
the
reinstatement
of
business
entities,
the
6
assessment
and
valuation
of
property,
the
Iowa
reinvestment
7
Act,
horse
racing,
and
port
authorities,
and
providing
8
penalties,
and
including
effective
date
and
retroactive
9
applicability
provisions.
10
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
11
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2641
DIVISION
I
1
DEPARTMENT
OF
REVENUE
ADMINISTRATION
AND
PENALTY
PROVISIONS
2
Section
1.
Section
421.6,
Code
2020,
is
amended
to
read
as
3
follows:
4
421.6
Definition
of
return.
5
For
purposes
of
this
title
,
unless
the
context
otherwise
6
requires,
“return”
means
any
tax
or
information
return,
amended
7
return,
declaration
of
estimated
tax,
or
claim
for
refund
8
that
is
required
by,
provided
for,
or
permitted
under,
the
9
provisions
of
this
title
or
section
533.329,
and
which
is
filed
10
with
the
department
by,
on
behalf
of,
or
with
respect
to
any
11
person.
“Return”
includes
any
amendment
or
supplement
to
these
12
items,
including
supporting
schedules,
attachments,
or
lists
13
which
are
supplemental
to
or
part
of
the
filed
return.
14
Sec.
2.
Section
421.17,
Code
2020,
is
amended
by
adding
the
15
following
new
subsection:
16
NEW
SUBSECTION
.
36.
To
enter
into
an
agreement
pursuant
17
to
chapter
28E
with
the
state
fair
organized
under
chapter
173
18
or
with
a
fair
defined
in
section
174.1,
to
collect
and
remit
19
taxes
and
fees
from
sellers
making
sales
at
retail
on
property
20
owned,
controlled,
or
operated
by
a
fair
or
through
events
21
conducted
by
a
fair.
22
Sec.
3.
Section
421.27,
subsection
1,
Code
2020,
is
amended
23
to
read
as
follows:
24
1.
Failure
to
timely
file
a
return
or
deposit
form.
25
a.
If
a
person
fails
to
file
with
the
department
on
or
26
before
the
due
date
a
return
or
deposit
form
there
shall
be
27
added
to
the
tax
shown
due
or
required
to
be
shown
due
a
penalty
28
of
ten
percent
of
the
tax
shown
due
or
required
to
be
shown
due.
29
b.
In
the
case
of
a
specified
business
with
no
tax
shown
30
due
or
required
to
be
shown
due
that
fails
to
timely
file
an
31
income
return,
the
specified
business
shall
pay
the
greater
of
32
the
following
penalty
amounts:
33
(1)
Two
hundred
dollars.
34
(2)
An
amount
equal
to
ten
percent
of
the
imputed
Iowa
35
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2641
liability
of
the
specified
business,
not
to
exceed
twenty-five
1
thousand
dollars.
2
c.
The
penalty,
if
assessed
pursuant
to
paragraph
“a”
or
3
“b”
,
shall
be
waived
by
the
department
upon
a
showing
of
any
of
4
the
following
conditions:
5
a.
(1)
At
An
amount
of
tax
greater
than
zero
is
required
to
6
be
shown
due
and
at
least
ninety
percent
of
the
tax
required
to
7
be
shown
due
has
been
paid
by
the
due
date
of
the
tax.
8
b.
(2)
Those
taxpayers
who
are
required
to
file
quarterly
9
returns,
or
monthly
or
semimonthly
deposit
forms
may
have
one
10
late
return
or
deposit
form
within
a
three-year
period.
The
11
use
of
any
other
penalty
exception
will
not
count
as
a
late
12
return
or
deposit
form
for
purposes
of
this
exception.
13
c.
(3)
The
death
of
a
taxpayer,
death
of
a
member
of
14
the
immediate
family
of
the
taxpayer,
or
death
of
the
person
15
directly
responsible
for
filing
the
return
and
paying
the
tax,
16
when
the
death
interferes
with
timely
filing.
17
d.
(4)
The
onset
of
serious,
long-term
illness
or
18
hospitalization
of
the
taxpayer,
of
a
member
of
the
immediate
19
family
of
the
taxpayer,
or
of
the
person
directly
responsible
20
for
filing
the
return
and
paying
the
tax.
21
e.
(5)
Destruction
of
records
by
fire,
flood,
or
other
act
22
of
God.
23
f.
(6)
The
taxpayer
presents
proof
that
the
taxpayer
24
relied
upon
applicable,
documented,
written
advice
specifically
25
made
to
the
taxpayer,
to
the
taxpayer’s
preparer,
or
to
an
26
association
representative
of
the
taxpayer
from
the
department,
27
state
department
of
transportation,
county
treasurer,
or
28
federal
internal
revenue
service,
whichever
is
appropriate,
29
that
has
not
been
superseded
by
a
court
decision,
ruling
by
a
30
quasi-judicial
body,
or
the
adoption,
amendment,
or
repeal
of
31
a
rule
or
law.
32
g.
(7)
Reliance
upon
results
in
a
previous
audit
was
a
33
direct
cause
for
the
failure
to
file
where
the
previous
audit
34
expressly
and
clearly
addressed
the
issue
and
the
previous
35
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audit
results
have
not
been
superseded
by
a
court
decision,
or
1
the
adoption,
amendment,
or
repeal
of
a
rule
or
law.
2
h.
(8)
Under
rules
prescribed
by
the
director,
the
taxpayer
3
presents
documented
proof
of
substantial
authority
to
rely
4
upon
a
particular
position
or
upon
proof
that
all
facts
and
5
circumstances
are
disclosed
on
a
return
or
deposit
form.
6
i.
(9)
The
return,
deposit
form,
or
payment
is
timely,
7
but
erroneously,
mailed
with
adequate
postage
to
the
internal
8
revenue
service,
another
state
agency,
or
a
local
government
9
agency
and
the
taxpayer
provides
proof
of
timely
mailing
with
10
adequate
postage.
11
j.
(10)
The
tax
has
been
paid
by
the
wrong
licensee
and
the
12
payments
were
timely
remitted
to
the
department
for
one
or
more
13
tax
periods
prior
to
notification
by
the
department.
14
k.
(11)
The
failure
to
file
was
discovered
through
a
15
sanctioned
self-audit
program
conducted
by
the
department.
16
l.
(12)
If
the
availability
of
funds
in
payment
of
tax
17
required
to
be
made
through
electronic
funds
transfer
is
18
delayed
and
the
delay
of
availability
is
due
to
reasons
beyond
19
the
control
of
the
taxpayer.
“Electronic
funds
transfer”
means
20
any
transfer
of
funds,
other
than
a
transaction
originated
21
by
check,
draft,
or
similar
paper
instrument,
that
is
22
initiated
through
an
electronic
terminal
telephone,
computer,
23
magnetic
tape,
or
similar
device
for
the
purpose
of
ordering,
24
instructing,
or
authorizing
a
financial
institution
to
debit
or
25
credit
an
account.
26
m.
(13)
The
failure
to
file
a
timely
inheritance
tax
return
27
resulting
solely
from
a
disclaimer
that
required
the
personal
28
representative
to
file
an
inheritance
tax
return.
The
penalty
29
shall
be
waived
if
such
return
is
filed
and
any
tax
due
is
paid
30
within
the
later
of
nine
months
from
the
date
of
death
or
sixty
31
days
from
the
delivery
or
filing
of
the
disclaimer
pursuant
to
32
section
633E.12
.
33
n.
(14)
That
an
Iowa
inheritance
tax
return
is
filed
for
34
an
estate
within
the
later
of
nine
months
from
the
date
of
35
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death
or
sixty
days
from
the
filing
of
a
disclaimer
by
the
1
beneficiary
of
the
estate
refusing
to
take
the
property
or
2
right
or
interest
in
the
property.
3
Sec.
4.
Section
421.27,
subsections
4
and
6,
Code
2020,
are
4
amended
to
read
as
follows:
5
4.
Willful
failure
to
file
or
deposit.
6
a.
(1)
In
case
of
willful
failure
to
file
a
return
7
or
deposit
form
with
the
intent
to
evade
tax
or
a
filing
8
requirement
,
or
in
case
of
willfully
filing
a
false
return
9
or
deposit
form
with
the
intent
to
evade
tax,
in
lieu
of
the
10
penalties
otherwise
provided
in
this
section
,
a
penalty
of
11
seventy-five
percent
shall
be
added
to
the
amount
shown
due
or
12
required
to
be
shown
as
tax
on
the
return
or
deposit
form.
13
(2)
In
case
of
a
willful
failure
by
a
specified
business
to
14
file
an
income
return
with
no
tax
shown
due
or
required
to
be
15
shown
due
with
intent
to
evade
a
filing
requirement,
or
in
case
16
of
willfully
filing
a
false
income
return
with
no
tax
shown
due
17
or
required
to
be
shown
due
with
the
intent
to
evade
reporting
18
of
Iowa-source
income,
the
penalty
imposed
shall
be
the
greater
19
of
the
following
amounts:
20
(a)
One
thousand
five
hundred
dollars.
21
(b)
An
amount
equal
to
seventy-five
percent
of
the
imputed
22
Iowa
liability
of
the
specified
business.
23
(3)
If
penalties
are
applicable
for
failure
to
file
a
24
return
or
deposit
form
and
failure
to
pay
the
tax
shown
due
or
25
required
to
be
shown
due
on
the
return
or
deposit
form,
the
26
penalty
provision
for
failure
to
file
shall
be
in
lieu
of
the
27
penalty
provisions
for
failure
to
pay
the
tax
shown
due
or
28
required
to
be
shown
due
on
the
return
or
deposit
form,
except
29
in
the
case
of
willful
failure
to
file
a
return
or
deposit
form
30
or
willfully
filing
a
false
return
or
deposit
form
with
intent
31
to
evade
tax.
32
b.
The
penalties
imposed
under
this
subsection
are
not
33
subject
to
waiver.
34
6.
Improper
receipt
of
payments
Liability
——
fraudulent
35
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practice
.
A
person
who
makes
an
erroneous
application
for
1
refund,
credit,
reimbursement,
rebate,
or
other
payment
shall
2
be
liable
for
any
overpayment
received
or
tax
liability
reduced
3
plus
interest
at
the
rate
in
effect
under
section
421.7
.
4
a.
In
addition,
a
person
who
willfully
commits
a
fraudulent
5
practice
and
is
liable
for
a
penalty
equal
to
seventy-five
6
percent
of
the
refund,
credit,
exemption,
reimbursement,
7
rebate,
or
other
payment
or
benefit
being
claimed
if
the
person
8
does
any
of
the
following:
9
(1)
Willfully
makes
a
false
or
frivolous
application
for
10
refund,
credit
,
exemption
,
reimbursement,
rebate,
or
other
11
payment
or
benefit
with
intent
to
evade
tax
or
with
intent
to
12
receive
a
refund,
credit,
exemption,
reimbursement,
rebate,
13
or
other
payment
or
benefit,
to
which
the
person
is
not
14
entitled
is
guilty
of
a
fraudulent
practice
and
is
liable
for
a
15
penalty
equal
to
seventy-five
percent
of
the
refund,
credit,
16
reimbursement,
rebate,
or
other
payment
being
claimed
.
17
(2)
Willfully
submits
any
false
information,
document,
18
or
document
containing
false
information
in
support
of
an
19
application
for
refund,
credit,
exemption,
reimbursement,
20
rebate,
or
other
payment
or
benefit
with
the
intent
to
evade
21
tax.
22
(3)
Willfully
submits
with
any
false
information,
document,
23
or
document
containing
false
information
in
support
of
an
24
application
for
refund
with
the
intent
to
receive
a
refund,
25
credit,
exemption,
reimbursement,
rebate,
or
other
payment
26
benefit,
to
which
the
person
is
not
entitled.
27
b.
Payments,
penalties,
and
interest
due
under
this
28
subsection
may
be
collected
and
enforced
in
the
same
manner
as
29
the
tax
imposed.
30
Sec.
5.
Section
421.27,
Code
2020,
is
amended
by
adding
the
31
following
new
subsections:
32
NEW
SUBSECTION
.
8.
Definitions.
As
used
in
this
section:
33
a.
“Imputed
Iowa
liability”
means
any
of
the
following:
34
(1)
In
the
case
of
corporations
other
than
corporations
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described
in
section
422.34
or
section
422.36,
subsection
5,
1
the
corporation’s
Iowa
net
income
after
the
application
of
the
2
Iowa
business
activity
ratio,
if
applicable,
multiplied
by
the
3
top
income
tax
rate
imposed
under
section
422.33
for
the
tax
4
year.
5
(2)
In
the
case
of
financial
institutions
as
defined
in
6
section
422.61,
the
financial
institution’s
Iowa
net
income
7
after
the
application
of
the
Iowa
business
activity
ratio,
if
8
applicable,
multiplied
by
the
franchise
tax
rate
imposed
under
9
section
422.63
for
the
tax
year.
10
(3)
In
this
case
of
all
other
entities,
including
11
corporations
described
in
section
422.36,
subsection
5,
and
all
12
other
entities
required
to
file
an
information
return
under
13
section
422.15,
subsection
2,
the
entity’s
Iowa
net
income
14
after
the
application
of
the
Iowa
business
activity
ratio,
if
15
applicable,
multiplied
by
the
top
income
tax
rate
imposed
under
16
section
422.5A
for
the
tax
year.
17
b.
“Income
return”
means
an
income
tax
return
or
information
18
return
required
under
section
422.15,
subsection
2,
or
section
19
422.36,
422.37,
or
422.62.
20
c.
“Specified
business”
means
a
partnership
or
other
entity
21
required
to
file
an
information
return
under
section
422.15,
22
subsection
2,
a
corporation
required
to
file
a
return
under
23
section
422.36
or
422.37,
or
a
financial
institution
required
24
to
file
a
return
under
section
422.62.
25
NEW
SUBSECTION
.
9.
Additional
penalty.
In
addition
to
the
26
penalties
imposed
by
this
section,
if
a
taxpayer
fails
to
file
27
a
return
within
ninety
days
of
written
notice
by
the
department
28
that
the
taxpayer
is
required
to
do
so,
there
shall
be
added
to
29
the
amount
shown
due
or
required
to
be
shown
due
a
penalty
in
30
the
amount
of
one
thousand
dollars.
31
Sec.
6.
NEW
SECTION
.
421.27A
Perjury.
32
1.
For
purposes
of
this
title,
a
form,
application,
or
any
33
other
documentation
required
or
requested
by
the
department
34
shall
be
required
to
be
certified
under
penalty
of
perjury
that
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the
information
contained
in
the
form,
application,
or
other
1
documentation
is
true
and
correct.
2
2.
A
person
commits
a
class
“D”
felony
under
any
of
the
3
following
circumstances:
4
a.
The
person
makes
a
form,
application,
or
other
document
5
containing
false
information
in
support
of
an
application
for
6
refund,
credit,
exemption,
reimbursement,
rebate,
or
other
7
payment
or
benefit
with
intent
to
evade
tax.
8
b.
The
person
makes
a
form,
application,
or
other
document
9
containing
false
information
with
intent
to
unlawfully
receive
10
a
refund,
credit,
exemption,
reimbursement,
rebate,
or
other
11
payment
or
benefit,
to
which
the
person
is
not
entitled.
12
c.
The
person
knowingly
makes
any
false
affidavit.
13
d.
The
person
knowingly
swears
or
affirms
falsely
to
any
14
matter
or
thing
required
by
the
terms
of
this
title
to
be
sworn
15
to
or
affirmed.
16
Sec.
7.
NEW
SECTION
.
421.59
Power
of
attorney
——
authority
17
to
act
on
behalf
of
taxpayer.
18
1.
a.
A
taxpayer
may
authorize
an
individual
to
act
on
19
behalf
of
the
taxpayer
by
filing
a
power
of
attorney
with
the
20
department,
on
a
form
prescribed
by
the
department.
21
b.
A
taxpayer
may
at
any
time
revoke
a
power
of
attorney
22
filed
with
the
department
pursuant
to
subsection
1.
Upon
23
processing
of
the
taxpayer’s
revocation
of
a
power
of
attorney,
24
the
department
shall
cease
honoring
the
power
of
attorney.
25
2.
The
department
may
authorize
the
following
persons
to
act
26
and
receive
information
on
behalf
of
and
exercise
all
of
the
27
rights
of
a
taxpayer,
regardless
of
whether
a
power
of
attorney
28
has
been
filed
pursuant
to
subsection
1:
29
a.
A
guardian,
conservator,
or
custodian
appointed
by
a
30
court,
if
a
taxpayer
has
been
deemed
legally
incompetent
by
a
31
court.
The
authority
of
the
appointee
to
act
on
behalf
of
the
32
taxpayer
shall
be
limited
to
the
extent
specifically
stated
in
33
the
order
of
appointment.
34
(1)
Upon
request,
a
guardian,
conservator,
or
custodian
of
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a
taxpayer
shall
submit
to
the
department
a
copy
of
the
court
1
order
appointing
the
guardian,
conservator,
or
custodian.
2
(2)
The
department
may
petition
the
court
that
appointed
the
3
guardian,
conservator,
or
custodian
to
verify
the
appointment
4
or
to
determine
the
scope
of
the
appointment.
5
b.
A
receiver
appointed
pursuant
to
chapter
680.
An
6
appointed
receiver
shall
be
limited
to
act
on
behalf
of
the
7
taxpayer
by
the
authority
stated
in
the
order
of
appointment.
8
(1)
Upon
the
request
of
the
department,
a
receiver
shall
9
submit
to
the
department
a
copy
of
the
court
order
appointing
10
the
receiver.
11
(2)
The
department
may
petition
the
court
that
appointed
the
12
receiver
to
verify
the
appointment
or
to
determine
the
scope
13
of
the
appointment.
14
c.
An
individual
who
has
been
named
as
an
authorized
15
representative
on
a
fiduciary
return
of
income
filed
under
16
section
422.14
or
a
tax
return
filed
under
chapter
450.
17
d.
(1)
An
individual
holding
the
following
title
or
18
position
within
a
corporation,
association,
partnership,
or
19
other
business
entity:
20
(a)
A
president
or
chief
executive
officer,
or
any
other
21
officer
of
the
corporation
or
association
if
the
president
or
22
chief
executive
officer
certifies
that
the
officer
has
the
23
authority
to
legally
bind
the
corporation
or
association.
24
(b)
A
designated
partner
duly
authorized
to
act
on
behalf
25
of
the
partnership.
26
(c)
A
person
authorized
to
act
on
behalf
of
a
limited
27
liability
company
in
tax
matters
pursuant
to
a
valid
statement
28
of
authority.
29
(2)
An
individual
seeking
to
act
on
behalf
of
a
taxpayer
30
pursuant
to
this
paragraph
shall
file
an
affidavit
with
the
31
department
attesting
to
the
identity
and
qualifications
of
the
32
individual
and
any
necessary
certifications
required
under
this
33
paragraph.
The
department
may
require
any
documents
or
other
34
evidence
to
demonstrate
the
individual
has
authority
to
act
on
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behalf
of
the
taxpayer
before
the
department.
1
e.
A
licensed
attorney
who
has
appeared
on
behalf
of
the
2
taxpayer
or
the
taxpayer’s
estate
in
a
court
proceeding.
3
Authorization
under
this
paragraph
is
limited
to
those
matters
4
within
the
scope
of
the
representation.
5
f.
A
parent
or
guardian
of
a
taxpayer
who
has
not
reached
6
the
age
of
majority
where
the
parent
or
guardian
has
signed
the
7
taxpayer’s
return
on
behalf
of
the
taxpayer.
Authorization
8
under
this
paragraph
is
limited
to
those
matters
relating
to
9
the
return
signed
by
the
parent
or
guardian.
Authorization
10
under
this
paragraph
automatically
terminates
when
the
taxpayer
11
reaches
the
age
of
majority
pursuant
to
section
599.1.
12
3.
a.
In
lieu
of
executing
a
power
of
attorney
pursuant
13
to
subsection
1,
the
department
may
enter
into
a
memorandum
of
14
understanding
with
the
taxpayer
for
each
employee,
officer,
15
or
member
of
a
third-party
entity
engaged
with
or
otherwise
16
hired
by
a
taxpayer
to
manage
the
tax
matters
of
the
taxpayer,
17
to
permit
the
disclosure
of
confidential
tax
information
to
18
the
third-party
entity
and
the
authority
to
act
on
behalf
of
19
the
taxpayer.
The
memorandum
of
understanding
shall
adhere
to
20
requirements
as
established
by
the
director.
21
b.
The
memorandum
of
understanding
shall
be
signed
by
22
the
director,
the
taxpayer,
and
the
third-party
entity
or
an
23
authorized
representative
of
the
third-party
entity.
24
c.
At
any
time,
a
taxpayer
may
unilaterally
revoke
25
a
memorandum
of
understanding
entered
into
pursuant
to
26
this
subsection
by
filing
a
notice
of
revocation
with
the
27
department.
Upon
the
filing
of
such
a
revocation
by
the
28
taxpayer,
the
department
shall
cease
honoring
the
memorandum
29
of
understanding.
30
4.
The
department
shall
adopt
rules
pursuant
to
chapter
17A
31
to
administer
this
section.
32
Sec.
8.
Section
421.60,
subsection
2,
paragraph
a,
33
subparagraph
(2),
Code
2020,
is
amended
to
read
as
follows:
34
(2)
The
statement
prepared
in
accordance
with
this
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paragraph
shall
be
available
on
the
department’s
internet
site.
1
The
internet
site
for
this
information
shall
be
distributed
by
2
the
department
to
all
taxpayers
at
the
first
contact
by
the
3
department
with
respect
to
the
determination
or
collection
of
4
any
tax,
except
in
the
case
of
simply
providing
tax
forms.
5
Sec.
9.
Section
421.60,
Code
2020,
is
amended
by
adding
the
6
following
new
subsection:
7
NEW
SUBSECTION
.
11.
Electronic
communication.
8
Notwithstanding
any
provision
of
the
law
to
the
contrary,
for
9
purposes
of
this
title
and
sections
321.105A
and
533.329,
a
10
taxpayer
may
elect
to
receive
any
notices,
correspondence,
11
or
other
communication
electronically
that
the
department
is
12
required
to
send
by
regular
mail.
The
director
may
establish
13
procedures
and
limitations
for
obtaining
this
election
from
the
14
taxpayer.
15
Sec.
10.
Section
421.62,
subsection
1,
Code
2020,
is
amended
16
by
adding
the
following
new
paragraph:
17
NEW
PARAGRAPH
.
0b.
“Income
tax
return
or
claim
for
refund”
18
means
any
tax
return
or
claim
for
refund
under
chapter
422,
19
excluding
withholding
returns
under
section
422.16.
20
Sec.
11.
Section
421.62,
subsection
1,
paragraph
c,
21
subparagraph
(1),
Code
2020,
is
amended
to
read
as
follows:
22
(1)
“Tax
return
preparer”
means
any
individual
who,
for
23
a
fee
or
other
consideration,
prepares
ten
or
more
income
24
tax
returns
or
claims
for
refund
under
chapter
422
during
25
a
calendar
year,
or
who
assumes
final
responsibility
for
26
completed
work
on
such
income
tax
returns
or
claims
for
refund
27
under
chapter
422
on
which
preliminary
work
has
been
done
by
28
another
individual.
29
Sec.
12.
Section
421.62,
subsection
2,
paragraph
a,
Code
30
2020,
is
amended
to
read
as
follows:
31
a.
On
or
after
January
1,
2020,
a
tax
return
preparer
32
is
required
to
include
the
tax
return
preparer’s
PTIN
on
33
any
income
tax
return
or
claim
for
refund
prepared
by
the
34
tax
return
preparer
and
filed
under
chapter
422
with
the
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department
.
1
Sec.
13.
Section
421.64,
subsection
1,
Code
2020,
is
amended
2
to
read
as
follows:
3
1.
For
purposes
of
this
section
,
“tax
return
preparer”
means
4
the
same
as
defined
in
section
421.61
421.62
.
5
Sec.
14.
Section
422.20,
subsections
1
and
2,
Code
2020,
are
6
amended
to
read
as
follows:
7
1.
It
shall
be
unlawful
for
any
present
or
former
officer
8
or
employee
of
the
state
to
willfully
or
recklessly
divulge
or
9
to
make
known
in
any
manner
whatever
not
provided
by
law
to
10
any
person
the
amount
or
source
of
income,
profits,
losses,
11
expenditures,
or
any
particular
thereof,
set
forth
or
disclosed
12
in
any
income
return,
or
to
permit
any
income
return
or
copy
13
thereof
or
any
book
containing
any
abstract
or
particulars
14
thereof
to
be
seen
or
examined
by
any
person
except
as
provided
15
by
law;
and
it
shall
be
unlawful
for
any
person
to
willfully
or
16
recklessly
print
or
publish
in
any
manner
whatever
not
provided
17
by
law
any
income
return,
or
any
part
thereof
or
source
of
18
income,
profits,
losses,
or
expenditures
appearing
in
any
19
income
return;
and
any
person
committing
an
offense
against
the
20
foregoing
provision
shall
be
guilty
of
a
serious
misdemeanor.
21
If
the
offender
is
an
officer
or
employee
of
the
state,
such
22
person
shall
also
be
dismissed
from
office
or
discharged
from
23
employment.
Nothing
herein
shall
prohibit
turning
over
to
duly
24
authorized
officers
of
the
United
States
or
tax
officials
of
25
other
states
state
information
and
income
returns
pursuant
26
to
agreement
between
the
director
and
the
secretary
of
the
27
treasury
of
the
United
States
or
the
secretary’s
delegate
or
28
pursuant
to
a
reciprocal
agreement
with
another
state.
29
2.
It
is
unlawful
for
an
officer,
employee,
or
agent,
or
30
former
officer,
employee,
or
agent
of
the
state
to
willfully
31
or
recklessly
disclose
to
any
person,
except
as
authorized
32
in
subsection
1
of
this
section
,
any
federal
tax
return
33
or
return
information
as
defined
in
section
6103(b)
of
the
34
Internal
Revenue
Code.
It
is
unlawful
for
a
person
to
whom
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any
federal
tax
return
or
return
information,
as
defined
in
1
section
6103(b)
of
the
Internal
Revenue
Code,
is
disclosed
2
in
a
manner
unauthorized
by
subsection
1
of
this
section
3
to
thereafter
willfully
or
recklessly
print
or
publish
in
4
any
manner
not
provided
by
law
any
such
return
or
return
5
information.
A
person
violating
this
provision
is
guilty
of
6
a
serious
misdemeanor.
7
Sec.
15.
Section
422.20,
subsection
3,
paragraph
a,
Code
8
2020,
is
amended
to
read
as
follows:
9
a.
Unless
otherwise
expressly
permitted
by
section
8A.504
,
10
section
8G.4
,
section
11.41
,
section
96.11,
subsection
6
,
11
section
421.17,
subsections
22,
23,
and
26
,
section
421.17,
12
subsection
27
,
paragraph
“k”
,
section
421.17,
subsection
31
,
13
section
252B.9
,
section
321.40,
subsection
6
,
sections
321.120
,
14
421.19
,
421.28
,
421.59,
422.72
,
and
452A.63
,
this
section
,
or
15
another
provision
of
law,
a
tax
return,
return
information,
or
16
investigative
or
audit
information
shall
not
be
divulged
to
any
17
person
or
entity,
other
than
the
taxpayer,
the
department,
or
18
internal
revenue
service
for
use
in
a
matter
unrelated
to
tax
19
administration.
20
Sec.
16.
Section
422.20,
Code
2020,
is
amended
by
adding
the
21
following
new
subsections:
22
NEW
SUBSECTION
.
3A.
The
director
may
disclose
the
tax
23
return
of
a
partnership,
limited
liability
company,
or
S
24
corporation,
any
such
return
information,
or
any
investigative
25
information
related
to
the
return,
to
any
person
who
was
a
26
partner,
shareholder,
or
member
of
such
an
entity
during
any
27
part
of
the
period
covered
by
the
return.
28
NEW
SUBSECTION
.
3B.
a.
Prior
to
being
made
available
for
29
public
inspection,
the
department
shall
redact
from
the
record
30
in
an
appeal
or
contested
case
the
following
information
from
31
any
pleading,
exhibit,
attachment,
motion,
written
evidence,
32
final
order,
decision,
or
opinion:
33
(1)
A
financial
account
number.
34
(2)
An
account
number
generated
by
the
department
to
35
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identify
an
audit
or
examination.
1
(3)
A
social
security
number.
2
(4)
A
federal
employer
identification
number.
3
(5)
The
name
of
a
minor.
4
(6)
A
medical
record
or
other
medical
information.
5
b.
Upon
a
motion
filed
by
the
taxpayer,
the
department
6
may
redact
from
the
record
in
an
appeal
or
contested
case
any
7
other
information
from
a
pleading,
exhibit,
attachment,
motion,
8
or
written
evidence,
if
the
taxpayer
proves
by
clear
and
9
convincing
evidence
that
the
release
of
such
information
would
10
disclose
a
trade
secret
or
be
a
clear,
unwarranted
invasion
of
11
personal
privacy.
12
c.
Notwithstanding
paragraph
“a”
,
when
making
final
orders,
13
decisions,
or
opinions
available
for
public
inspection,
the
14
department
may
disclose
the
items
in
paragraph
“a”
if
the
15
department
determines
such
information
is
necessary
to
the
16
resolution
or
decision
of
the
appeal
or
case.
17
d.
Except
as
described
in
paragraphs
“a”
and
“b”
,
all
18
information
contained
in
a
pleading,
exhibit,
attachment,
19
motion,
written
evidence,
final
order,
decision,
opinion,
20
and
the
record
in
an
appeal
or
contested
case
is
subject
to
21
examination
to
the
extent
provided
by
chapter
22.
22
Sec.
17.
Section
422.25,
subsection
1,
Code
2020,
is
amended
23
by
adding
the
following
new
paragraph:
24
NEW
PARAGRAPH
.
c.
The
period
of
examination
and
25
determination
is
unlimited
under
this
title
in
the
case
of
26
any
action
by
the
department
to
recover
or
rescind
any
tax
27
expenditure
as
defined
by
section
2.48,
subsection
1,
or
any
28
other
incentive
or
assistance,
due
to
a
failure
to
meet
or
29
maintain
the
requirements
of
a
program
administered
by
the
30
economic
development
authority.
31
Sec.
18.
Section
422.69,
subsection
1,
Code
2020,
is
amended
32
to
read
as
follows:
33
1.
All
fees,
taxes,
interest,
and
penalties
imposed
under
34
this
chapter
shall
be
paid
to
the
department
in
the
form
of
35
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remittances
payable
to
the
state
treasurer
department
and
the
1
department
shall
transmit
each
payment
daily
to
the
state
2
treasurer.
3
Sec.
19.
Section
422.72,
subsection
1,
paragraph
a,
4
subparagraph
(1),
Code
2020,
is
amended
to
read
as
follows:
5
(1)
It
is
unlawful
for
the
director,
or
any
person
having
6
an
administrative
duty
under
this
chapter
,
or
any
present
or
7
former
officer
or
other
employee
of
the
state
authorized
by
the
8
director
to
examine
returns,
to
willfully
or
recklessly
divulge
9
in
any
manner
whatever,
the
business
affairs,
operations,
or
10
information
obtained
by
an
investigation
under
this
chapter
of
11
records
and
equipment
of
any
person
visited
or
examined
in
the
12
discharge
of
official
duty,
or
the
amount
or
source
of
income,
13
profits,
losses,
expenditures
or
any
particular
thereof,
set
14
forth
or
disclosed
in
any
return,
or
to
willfully
or
recklessly
15
permit
any
return
or
copy
of
a
return
or
any
book
containing
16
any
abstract
or
particulars
thereof
to
be
seen
or
examined
by
17
any
person
except
as
provided
by
law.
18
Sec.
20.
Section
422.72,
Code
2020,
is
amended
by
adding
the
19
following
new
subsection:
20
NEW
SUBSECTION
.
7A.
a.
Prior
to
being
made
available
for
21
public
inspection,
the
department
shall
redact
from
the
record
22
in
an
appeal
or
contested
case
the
following
information
from
23
any
pleading,
exhibit,
attachment,
motion,
written
evidence,
24
final
order,
decision,
or
opinion:
25
(1)
A
financial
account
number.
26
(2)
An
account
number
generated
by
the
department
to
27
identify
an
audit
or
examination.
28
(3)
A
social
security
number.
29
(4)
A
federal
employer
identification
number.
30
(5)
The
name
of
a
minor.
31
(6)
A
medical
record
or
other
medical
information.
32
b.
Upon
a
motion
filed
by
the
taxpayer,
the
department
33
may
redact
from
the
record
in
an
appeal
or
contested
case
any
34
other
information
from
a
pleading,
exhibit,
attachment,
motion,
35
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or
written
evidence,
if
the
taxpayer
proves
by
clear
and
1
convincing
evidence
that
the
release
of
such
information
would
2
disclose
a
trade
secret
or
be
a
clear,
unwarranted
invasion
of
3
personal
privacy.
4
c.
Notwithstanding
paragraph
“a”
,
when
making
final
orders,
5
decisions,
or
opinions
available
for
public
inspection,
the
6
department
may
disclose
the
items
in
paragraph
“a”
if
the
7
department
determines
such
information
is
necessary
to
the
8
resolution
or
decision
of
the
appeal
or
case.
9
d.
Except
as
described
in
paragraphs
“a”
and
“b”
,
all
10
information
contained
in
a
pleading,
exhibit,
attachment,
11
motion,
written
evidence,
final
order,
decision,
opinion,
12
and
the
record
in
an
appeal
or
contested
case
is
subject
to
13
examination
to
the
extent
provided
by
chapter
22.
14
Sec.
21.
Section
423.37,
Code
2020,
is
amended
by
adding
the
15
following
new
subsection:
16
NEW
SUBSECTION
.
4.
The
period
of
limitation
on
examination
17
and
determination
is
unlimited
under
this
title
in
the
case
18
of
any
action
by
the
department
to
recover
or
rescind
any
tax
19
expenditure
as
defined
by
section
2.48,
subsection
1,
or
any
20
other
incentive
or
assistance,
due
to
a
failure
to
meet
or
21
maintain
the
requirements
of
a
program
administered
by
the
22
economic
development
authority.
23
Sec.
22.
Section
428A.1,
subsection
3,
Code
2020,
is
amended
24
to
read
as
follows:
25
3.
The
declaration
of
value
shall
state
the
full
26
consideration
paid
for
the
real
property
transferred.
If
27
agricultural
land,
as
defined
in
section
9H.1
,
is
purchased
by
28
a
corporation,
limited
partnership,
trust,
alien
or
nonresident
29
alien,
the
declaration
of
value
shall
include
the
name
and
30
address
of
the
buyer,
the
name
and
address
of
the
seller,
a
31
legal
description
of
the
agricultural
land,
and
identify
the
32
buyer
as
a
corporation,
limited
partnership,
trust,
alien,
or
33
nonresident
alien.
The
county
recorder
shall
not
record
the
34
declaration
of
value,
but
shall
enter
on
the
declaration
of
35
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value
information
the
director
of
revenue
requires
for
the
1
production
of
the
sales/assessment
ratio
study
and
transmit
2
all
declarations
of
value
to
the
city
or
county
assessor
in
3
whose
jurisdiction
the
property
is
located.
The
city
or
county
4
assessor
shall
enter
on
the
declaration
of
value
provide
the
5
information
the
director
of
revenue
requires
for
the
production
6
of
the
sales/assessment
ratio
study
and
transmit
one
copy
of
7
each
declaration
of
value
to
the
director
of
revenue,
at
times
8
as
directed
by
the
director
of
revenue.
The
assessor
shall
9
retain
one
copy
of
each
declaration
of
value
for
three
years
10
from
December
31
of
the
year
in
which
the
transfer
of
realty
11
for
which
the
declaration
was
filed
took
place.
The
director
12
of
revenue
shall,
upon
receipt
of
the
information
required
to
13
be
filed
under
this
chapter
by
the
city
or
county
assessor,
14
send
to
the
office
of
the
secretary
of
state
that
part
of
the
15
declaration
of
value
which
identifies
a
corporation,
limited
16
partnership,
trust,
alien,
or
nonresident
alien
as
a
purchaser
17
of
agricultural
land
as
defined
in
section
9H.1
.
18
Sec.
23.
Section
441.48,
Code
2020,
is
amended
to
read
as
19
follows:
20
441.48
Notice
of
adjustment.
21
1.
Before
the
department
of
revenue
shall
adjust
the
22
valuation
of
any
class
of
property
any
such
percentage,
the
23
department
shall
first
serve
ten
days’
notice
by
mail,
on
the
24
county
auditor
of
the
county
whose
valuation
is
proposed
to
be
25
adjusted.
The
department
shall
hold
an
adjourned
meeting
after
26
such
27
2.
If
the
county
or
assessing
jurisdiction
intends
to
28
protest
the
proposed
adjustment,
the
board
of
supervisors
or
29
city
council,
as
applicable,
shall
provide
the
department
with
30
notice
of
intent
to
protest
prior
to
expiration
of
the
ten
31
days’
notice.
32
3.
After
expiration
of
the
ten
days’
notice,
at
which
time
33
the
county
or
assessing
jurisdiction
may
appear
by
its
city
34
council
or
board
of
supervisors,
city
or
county
attorney,
and
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other
assessing
jurisdiction,
or
city
or
county
officials,
and
1
make
written
or
oral
protest
against
such
proposed
adjustment.
2
4.
The
protest
shall
consist
simply
of
a
statement
of
the
3
error,
or
errors,
complained
of
with
such
facts
as
may
lead
to
4
their
correction.
At
the
adjourned
meeting
5
5.
After
written
protest
is
received,
or
an
oral
protest
6
is
heard,
the
final
action
may
be
taken
in
reference
to
the
7
proposed
adjustment.
8
Sec.
24.
Section
489.706,
subsection
2,
Code
2020,
is
9
amended
to
read
as
follows:
10
2.
The
secretary
of
state
shall
refer
the
federal
tax
11
identification
number
contained
in
the
application
for
12
reinstatement
to
the
departments
department
of
revenue
and
13
workforce
development.
The
departments
department
of
revenue
14
and
workforce
development
shall
report
to
the
secretary
of
15
state
the
tax
status
of
the
limited
liability
company.
If
16
either
the
department
reports
to
the
secretary
of
state
that
17
a
filing
delinquency
or
liability
exists
against
the
limited
18
liability
company,
the
secretary
of
state
shall
not
cancel
the
19
declaration
of
dissolution
until
the
filing
delinquency
or
20
liability
is
satisfied.
21
Sec.
25.
Section
490.1422,
subsection
2,
paragraph
a,
Code
22
2020,
is
amended
to
read
as
follows:
23
a.
The
secretary
of
state
shall
refer
the
federal
tax
24
identification
number
contained
in
the
application
for
25
reinstatement
to
the
departments
department
of
revenue
and
26
workforce
development.
The
departments
department
of
revenue
27
and
workforce
development
shall
report
to
the
secretary
28
of
state
the
tax
status
of
the
corporation.
If
either
the
29
department
reports
to
the
secretary
of
state
that
a
filing
30
delinquency
or
liability
exists
against
the
corporation,
31
the
secretary
of
state
shall
not
cancel
the
certificate
of
32
dissolution
until
the
filing
delinquency
or
liability
is
33
satisfied.
34
Sec.
26.
Section
501.813,
subsection
2,
paragraph
a,
Code
35
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2020,
is
amended
to
read
as
follows:
1
a.
The
secretary
of
state
shall
refer
the
federal
tax
2
identification
number
contained
in
the
application
for
3
reinstatement
to
the
departments
department
of
revenue
and
4
workforce
development.
The
departments
department
of
revenue
5
and
workforce
development
shall
report
to
the
secretary
6
of
state
the
tax
status
of
the
cooperative.
If
either
the
7
department
reports
to
the
secretary
of
state
that
a
filing
8
delinquency
or
liability
exists
against
the
cooperative,
9
the
secretary
of
state
shall
not
cancel
the
certificate
of
10
dissolution
until
the
filing
delinquency
or
liability
is
11
satisfied.
12
Sec.
27.
Section
504.1423,
subsection
2,
paragraph
a,
Code
13
2020,
is
amended
to
read
as
follows:
14
a.
The
secretary
of
state
shall
refer
the
federal
tax
15
identification
number
contained
in
the
application
for
16
reinstatement
to
the
departments
department
of
revenue
and
17
workforce
development.
The
departments
department
of
revenue
18
and
workforce
development
shall
report
to
the
secretary
19
of
state
the
tax
status
of
the
corporation.
If
either
the
20
department
reports
to
the
secretary
of
state
that
a
filing
21
delinquency
or
liability
exists
against
the
corporation,
22
the
secretary
of
state
shall
not
cancel
the
certificate
of
23
dissolution
until
the
filing
delinquency
or
liability
is
24
satisfied.
25
Sec.
28.
Section
533.329,
Code
2020,
is
amended
by
adding
26
the
following
new
subsection:
27
NEW
SUBSECTION
.
03.
Returns
shall
be
in
the
form
the
28
director
of
revenue
prescribes,
and
shall
be
filed
with
the
29
department
of
revenue
on
or
before
the
last
day
of
the
fourth
30
month
after
the
expiration
of
the
tax
year.
The
moneys
and
31
credits
tax
is
due
and
payable
on
the
last
day
of
the
fourth
32
month
after
the
expiration
of
the
tax
year.
33
Sec.
29.
Section
533.329,
subsection
3,
Code
2020,
is
34
amended
to
read
as
follows:
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3.
The
department
of
revenue
shall
administer
and
enforce
1
the
provisions
of
this
section
,
and
except
as
explicitly
2
provided
in
this
section
or
another
provision
of
law,
shall
3
apply
all
applicable
penalty,
interest,
and
administrative
4
provisions
of
chapters
421
and
422
as
nearly
as
possible
in
5
administering
and
enforcing
the
moneys
and
credits
tax
imposed
6
by
this
section
.
7
Sec.
30.
LEGISLATIVE
INTENT.
It
is
the
intent
of
the
8
general
assembly
that
the
sections
of
this
division
amending
9
Code
sections
422.25
and
423.37
are
conforming
amendments
10
consistent
with
current
state
law,
and
that
the
amendments
11
do
not
change
the
application
of
current
law
but
instead
12
reflect
current
law
both
before
and
after
the
enactment
of
this
13
division
of
this
Act.
14
Sec.
31.
EFFECTIVE
DATE.
The
following,
being
deemed
of
15
immediate
importance,
take
effect
upon
enactment:
16
1.
The
section
of
this
division
of
this
Act
amending
section
17
422.25.
18
2.
The
section
of
this
division
of
this
Act
amending
section
19
423.37.
20
Sec.
32.
APPLICABILITY.
The
following
applies
to
any
21
return
for
which
a
written
notice
that
the
taxpayer
is
required
22
to
file
such
return
is
issued
by
the
department
on
or
after
23
January
1,
2022:
24
The
portion
of
the
section
of
this
division
of
this
Act
25
enacting
section
421.27,
subsection
9.
26
Sec.
33.
APPLICABILITY.
The
following
apply
to
tax
years
27
beginning
on
or
after
January
1,
2022:
28
1.
The
section
of
this
division
of
this
Act
amending
section
29
421.27,
subsection
1.
30
2.
The
portion
of
the
section
of
this
division
of
this
Act
31
amending
section
421.27,
subsection
4.
32
3.
The
portion
of
the
section
of
this
division
of
this
Act
33
enacting
section
421.27,
subsection
8.
34
DIVISION
II
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SALES
AND
USE
TAX
1
Sec.
34.
Section
321G.4,
subsection
2,
Code
2020,
is
amended
2
to
read
as
follows:
3
2.
a.
The
owner
of
the
snowmobile
shall
file
an
application
4
for
registration
with
the
department
through
the
county
5
recorder
of
the
county
of
residence
in
the
manner
established
6
by
the
commission.
The
application
shall
be
completed
by
the
7
owner
and
shall
be
accompanied
by
a
fee
of
fifteen
dollars
and
8
a
writing
fee
as
provided
in
section
321G.27
.
A
snowmobile
9
shall
not
be
registered
by
the
county
recorder
until
the
10
county
recorder
is
presented
with
receipts,
bills
of
sale,
11
or
other
satisfactory
evidence
that
the
sales
or
use
tax
has
12
been
paid
for
the
purchase
of
the
snowmobile
or
that
the
13
owner
is
exempt
from
paying
the
tax.
A
snowmobile
that
has
14
an
expired
registration
certificate
from
another
state
may
be
15
registered
in
this
state
upon
proper
application,
payment
of
16
all
applicable
registration
and
writing
fees,
and
payment
of
a
17
penalty
of
five
dollars.
18
b.
If
the
owner
of
the
snowmobile
is
unable
to
present
19
satisfactory
evidence
that
the
sales
or
use
tax
has
been
paid,
20
the
county
recorder
shall
collect
the
tax.
On
or
before
the
21
tenth
day
of
each
month,
the
county
recorder
shall
remit
to
22
the
department
of
revenue
the
amount
of
the
taxes
collected
23
during
the
preceding
month,
together
with
an
itemized
statement
24
on
forms
furnished
by
the
department
of
revenue
showing
the
25
name
of
each
taxpayer,
the
make
and
purchase
price
of
each
26
snowmobile,
the
amount
of
tax
paid,
and
such
other
information
27
as
the
department
of
revenue
requires.
28
Sec.
35.
Section
321I.4,
subsection
2,
Code
2020,
is
amended
29
to
read
as
follows:
30
2.
a.
The
owner
of
the
all-terrain
vehicle
shall
file
an
31
application
for
registration
with
the
department
through
the
32
county
recorder
of
the
county
of
residence,
or
in
the
case
33
of
a
nonresident
owner,
in
the
county
of
primary
use,
in
the
34
manner
established
by
the
commission.
The
application
shall
35
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be
completed
by
the
owner
and
shall
be
accompanied
by
a
fee
1
of
fifteen
dollars
and
a
writing
fee
as
provided
in
section
2
321I.29
.
An
all-terrain
vehicle
shall
not
be
registered
by
the
3
county
recorder
until
the
county
recorder
is
presented
with
4
receipts,
bills
of
sale,
or
other
satisfactory
evidence
that
5
the
sales
or
use
tax
has
been
paid
for
the
purchase
of
the
6
all-terrain
vehicle
or
that
the
owner
is
exempt
from
paying
the
7
tax.
An
all-terrain
vehicle
that
has
an
expired
registration
8
certificate
from
another
state
may
be
registered
in
this
state
9
upon
proper
application,
payment
of
all
applicable
registration
10
and
writing
fees,
and
payment
of
a
penalty
of
five
dollars.
11
b.
If
the
owner
of
the
all-terrain
vehicle
is
unable
to
12
present
satisfactory
evidence
that
the
sales
or
use
tax
has
13
been
paid,
the
county
recorder
shall
collect
the
tax.
On
or
14
before
the
tenth
day
of
each
month,
the
county
recorder
shall
15
remit
to
the
department
of
revenue
the
amount
of
the
taxes
16
collected
during
the
preceding
month,
together
with
an
itemized
17
statement
on
forms
furnished
by
the
department
of
revenue
18
showing
the
name
of
each
taxpayer,
the
make
and
purchase
price
19
of
each
all-terrain
vehicle,
the
amount
of
tax
paid,
and
such
20
other
information
as
the
department
of
revenue
requires.
21
Sec.
36.
Section
423.2,
subsection
6,
paragraph
bs,
Code
22
2020,
is
amended
to
read
as
follows:
23
bs.
Services
arising
from
or
related
to
installing,
24
maintaining,
servicing,
repairing,
operating,
upgrading,
or
25
enhancing
either
specified
digital
products
or
software
sold
26
as
tangible
personal
property
.
27
Sec.
37.
Section
423.2,
subsection
8,
paragraph
d,
28
subparagraph
(1),
Code
2020,
is
amended
to
read
as
follows:
29
(1)
The
retail
sale
of
tangible
personal
property
or
30
specified
digital
product
and
a
service
,
where
the
tangible
31
personal
property
or
specified
digital
product
is
essential
32
to
the
use
of
the
service,
and
is
provided
exclusively
in
33
connection
with
the
service,
and
the
true
object
of
the
34
transaction
is
the
service.
35
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Sec.
38.
Section
423.3,
subsection
3A,
Code
2020,
is
amended
1
to
read
as
follows:
2
3A.
The
sales
price
from
the
sale
of
a
commercial
recreation
3
service
offering
the
opportunity
to
hunt
a
preserve
whitetail
4
as
defined
in
section
484C.1
if
the
sale
occurred
between
July
5
1,
2005,
and
December
31,
2015.
6
Sec.
39.
Section
423.3,
subsection
31,
unnumbered
paragraph
7
1,
Code
2020,
is
amended
to
read
as
follows:
8
The
sales
price
of
tangible
personal
property
or
specified
9
digital
products
sold
to
and
of
services
furnished
to
a
tribal
10
government
as
defined
in
216A.161,
or
the
sales
price
of
11
tangible
personal
property
or
specified
digital
products
sold
12
to
and
of
services
furnished
,
and
used
for
public
purposes
13
sold
to
a
tax-certifying
or
tax-levying
body
of
the
state
or
a
14
governmental
subdivision
of
the
state,
including
the
following:
15
regional
transit
systems,
as
defined
in
section
324A.1
,
;
16
the
state
board
of
regents
,
;
department
of
human
services
,
;
17
state
department
of
transportation
,
;
any
municipally
owned
18
solid
waste
facility
which
sells
all
or
part
of
its
processed
19
waste
as
fuel
to
a
municipally
owned
public
utility
,
;
and
all
20
divisions,
boards,
commissions,
agencies,
or
instrumentalities
21
of
state,
federal,
county,
or
municipal
government
,
or
tribal
22
government
which
have
no
earnings
going
to
the
benefit
of
an
23
equity
investor
or
stockholder,
except
any
of
the
following:
24
Sec.
40.
Section
423.3,
Code
2020,
is
amended
by
adding
the
25
following
new
subsection:
26
NEW
SUBSECTION
.
60A.
The
sales
price
from
sales
of
diapers
27
eligible
for
medical
assistance
as
defined
in
section
249A.2.
28
Sec.
41.
Section
423.3,
subsection
80,
paragraphs
b
and
c,
29
Code
2020,
are
amended
to
read
as
follows:
30
b.
Subject
to
the
limitations
in
paragraph
“c”
,
if
a
31
contractor,
subcontractor,
or
builder
is
to
use
building
32
materials,
supplies,
and
equipment
,
or
services
in
the
33
performance
of
a
written
construction
contract
with
a
34
designated
exempt
entity,
the
person
shall
purchase
such
35
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items
of
tangible
personal
property
or
services
without
1
liability
for
the
tax
if
such
property
or
services
will
be
2
used
in
the
performance
of
the
written
construction
contract
3
and
a
purchasing
agent
authorization
letter
and
an
exemption
4
certificate,
issued
by
the
designated
exempt
entity,
are
5
presented
to
the
retailer.
6
c.
(1)
With
regard
to
a
written
construction
contract
7
with
a
designated
exempt
entity
described
in
paragraph
“a”
,
8
subparagraph
(1),
the
sales
price
of
building
materials,
9
supplies,
or
equipment
,
or
services
is
exempt
from
tax
by
this
10
subsection
only
to
the
extent
the
building
materials,
supplies,
11
or
equipment
,
or
services
are
completely
consumed
in
the
12
performance
of
the
construction
contract
with
the
designated
13
exempt
entity
,
and
only
if
the
property
that
is
the
subject
14
of
the
construction
project
becomes
public
property
or
the
15
property
of
the
designated
exempt
entity
.
16
(2)
With
regard
to
a
written
construction
contract
with
17
a
designated
exempt
entity
described
in
paragraph
“a”
,
18
subparagraph
(2),
the
sales
price
of
building
materials,
19
supplies,
or
equipment
,
or
services
is
exempt
from
tax
by
this
20
subsection
only
to
the
extent
the
building
materials,
supplies,
21
or
equipment
,
or
services
are
completely
consumed
in
the
22
performance
of
a
construction
contract
to
construct
a
project,
23
as
defined
in
section
15J.2,
subsection
10
,
which
project
has
24
been
approved
by
the
economic
development
authority
board
in
25
accordance
with
chapter
15J
.
26
Sec.
42.
Section
423.4,
subsection
1,
Code
2020,
is
amended
27
to
read
as
follows:
28
1.
a.
For
purposes
of
this
subsection,
a
“designated
exempt
29
entity”
means
any
of
the
following:
30
(1)
A
private
nonprofit
educational
institution
in
this
31
state
,
.
32
(2)
A
nonprofit
Iowa
affiliate
of
a
nonprofit
international
33
organization
whose
primary
activity
is
the
promotion
of
the
34
construction,
remodeling,
or
rehabilitation
of
one-family
or
35
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two-family
dwellings
for
low-income
families
,
.
1
(3)
A
nonprofit
private
museum
in
this
state
,
.
2
(4)
A
tax-certifying
or
tax-levying
body
or
governmental
3
subdivision
of
the
state,
including
the
state
board
of
regents,
4
state
department
of
human
services,
state
department
of
5
transportation
,
a
.
6
(5)
A
municipally
owned
solid
waste
facility
which
sells
all
7
or
part
of
its
processed
waste
as
fuel
to
a
municipally
owned
8
public
utility
,
and
all
.
9
(6)
The
state
of
Iowa.
10
(7)
Any
political
subdivision
of
the
state.
11
(8)
All
divisions,
boards,
commissions,
agencies,
or
12
instrumentalities
of
state,
federal,
county,
or
municipal
13
government
which
do
not
have
earnings
going
to
the
benefit
of
14
an
equity
investor
or
stockholder
,
.
15
(9)
A
tribal
government
as
defined
in
section
216A.161,
16
and
any
instrumentalities
of
the
tribal
government
which
do
17
not
have
earnings
going
to
the
benefit
of
an
equity
investor
18
or
stockholder.
19
b.
A
designated
exempt
entity
may
make
application
apply
20
to
the
department
for
the
refund
of
the
sales
or
use
tax
upon
21
the
sales
price
of
all
sales
of
goods,
wares,
or
merchandise
22
building
materials,
supplies,
equipment
,
or
from
services
23
furnished
to
a
contractor,
used
in
the
fulfillment
performance
24
of
a
written
contract
with
the
state
of
Iowa,
any
political
25
subdivision
of
the
state,
or
a
division,
board,
commission,
26
agency,
or
instrumentality
of
the
state
or
a
political
27
subdivision,
a
private
nonprofit
educational
institution
in
28
this
state,
a
nonprofit
Iowa
affiliate
described
in
this
29
subsection
,
or
a
nonprofit
private
museum
in
this
state
if
the
30
property
becomes
an
integral
part
of
the
project
under
contract
31
and
at
the
completion
of
the
project
becomes
public
property,
32
is
devoted
to
educational
uses,
becomes
part
of
a
low-income
33
one-family
or
two-family
dwelling
in
the
state,
or
becomes
a
34
nonprofit
private
museum;
except
goods,
wares,
or
merchandise,
35
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designated
exempt
entity
if
all
of
the
following
apply:
1
(1)
The
building
materials,
supplies,
equipment,
or
2
services
are
completely
consumed
in
the
performance
of
a
3
construction
project
with
the
designated
entity.
4
(2)
The
property
that
is
subject
of
the
construction
project
5
becomes
public
property
or
the
property
of
an
exempt
entity.
6
(3)
The
building
materials,
supplies,
equipment,
or
7
services
furnished
which
are
not
used
in
the
performance
of
8
any
contract
in
connection
with
the
operation
of
any
municipal
9
utility
engaged
in
selling
gas,
electricity,
or
heat
to
10
the
general
public
or
in
connection
with
the
operation
of
a
11
municipal
pay
television
system;
and
except
goods,
wares,
and
12
merchandise
are
not
used
in
the
performance
of
a
contract
for
a
13
“project”
under
chapter
419
as
defined
in
that
chapter
other
14
than
goods,
wares,
or
merchandise
used
in
the
performance
of
15
a
contract
for
a
“project”
under
chapter
419
for
which
a
bond
16
issue
was
approved
by
a
municipality
prior
to
July
1,
1968,
or
17
for
which
the
goods,
wares,
or
merchandise
becomes
an
integral
18
part
of
the
project
under
contract
and
at
the
completion
of
the
19
project
becomes
public
property
or
is
devoted
to
educational
20
uses.
21
a.
c.
Such
A
contractor
shall
state
under
oath,
on
forms
22
provided
by
the
department,
the
amount
of
such
sales
of
goods,
23
wares,
or
merchandise,
or
services
furnished
and
used
in
the
24
performance
of
such
contract,
and
upon
which
sales
or
use
tax
25
has
been
paid,
and
shall
file
such
forms
with
the
governmental
26
unit,
private
nonprofit
educational
institution,
nonprofit
Iowa
27
affiliate,
or
nonprofit
private
museum
designated
exempt
entity
28
which
has
made
any
written
contract
for
performance
by
the
29
contractor.
The
forms
shall
be
filed
by
the
contractor
with
30
the
governmental
unit,
educational
institution,
nonprofit
Iowa
31
affiliate,
or
nonprofit
private
museum
designated
exempt
entity
32
before
final
settlement
is
made.
33
b.
d.
Such
governmental
unit,
educational
institution,
34
nonprofit
Iowa
affiliate,
or
nonprofit
private
museum
A
35
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designated
exempt
entity
shall,
not
more
than
one
year
after
1
the
final
settlement
has
been
made,
make
application
apply
2
to
the
department
for
any
refund
of
the
amount
of
the
sales
3
or
use
tax
which
shall
have
been
paid
upon
any
goods,
wares,
4
or
merchandise
building
materials,
supplies,
equipment
,
5
or
services
furnished,
the
application
to
be
made
in
the
6
manner
and
upon
forms
to
be
provided
by
the
department,
7
and
the
department
shall
forthwith
audit
the
claim
and,
if
8
approved,
issue
a
warrant
to
the
governmental
unit,
educational
9
institution,
nonprofit
Iowa
affiliate,
or
nonprofit
private
10
museum
designated
exempt
entity
in
the
amount
of
the
sales
or
11
use
tax
which
has
been
paid
to
the
state
of
Iowa
under
the
12
contract.
13
c.
e.
Refunds
authorized
under
this
subsection
shall
accrue
14
interest
in
accordance
with
section
421.60,
subsection
2
,
15
paragraph
“e”
.
16
d.
f.
Any
contractor
who
willfully
makes
a
false
report
of
17
tax
paid
under
the
provisions
of
this
subsection
is
guilty
of
18
a
simple
misdemeanor
and
in
addition
shall
be
liable
for
the
19
payment
of
the
tax
and
any
applicable
penalty
and
interest.
20
Sec.
43.
Section
423.4,
subsection
2,
paragraphs
a
and
b,
21
Code
2020,
are
amended
to
read
as
follows:
22
a.
A
contractor
awarded
a
contract
for
a
transportation
23
construction
project
is
considered
the
consumer
of
all
building
24
materials,
building
supplies,
and
equipment
,
and
services
and
25
shall
pay
sales
tax
to
the
supplier
or
remit
consumer
use
tax
26
directly
to
the
department.
27
b.
The
contractor
is
not
required
to
file
information
with
28
the
state
department
of
transportation
stating
the
amount
of
29
goods,
wares,
or
merchandise,
or
services
rendered,
furnished,
30
or
performed
and
building
materials,
supplies,
equipment,
or
31
services
used
in
the
performance
of
the
contract
or
the
amount
32
of
sales
or
use
tax
paid.
33
Sec.
44.
Section
423.4,
subsection
6,
paragraph
a,
34
subparagraph
(1),
Code
2020,
is
amended
to
read
as
follows:
35
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(1)
The
owner
of
a
collaborative
educational
facility
1
in
this
state
may
make
application
to
the
department
for
the
2
refund
of
the
sales
or
use
tax
upon
the
sales
price
of
all
sales
3
of
goods,
wares,
or
merchandise
building
materials,
supplies,
4
equipment
,
or
from
services
furnished
to
a
contractor,
used
5
in
the
fulfillment
of
a
written
construction
contract
with
6
the
owner
of
the
collaborative
educational
facility
for
the
7
original
construction,
or
additions
or
modifications
to,
a
8
building
or
structure
to
be
used
as
part
of
the
collaborative
9
educational
facility.
10
Sec.
45.
Section
423.4,
subsection
6,
paragraphs
b
and
c,
11
Code
2020,
are
amended
to
read
as
follows:
12
b.
Such
A
contractor
shall
state
under
oath,
on
forms
13
provided
by
the
department,
the
amount
of
such
sales
of
goods,
14
wares,
or
merchandise
building
materials,
supplies,
equipment
,
15
or
services
furnished
and
used
in
the
performance
of
such
16
contract,
and
upon
which
sales
or
use
tax
has
been
paid,
and
17
shall
file
such
forms
with
the
owner
of
the
collaborative
18
educational
facility
which
has
made
any
written
contract
for
19
performance
by
the
contractor.
20
c.
(1)
The
owner
of
the
collaborative
educational
facility
21
shall,
not
more
than
one
year
after
the
final
settlement
has
22
been
made,
make
application
to
the
department
for
any
refund
23
of
the
amount
of
the
sales
or
use
tax
which
shall
have
been
24
paid
upon
any
goods,
wares,
or
merchandise
building
materials,
25
supplies,
equipment
,
or
services
furnished,
the
application
26
to
be
made
in
the
manner
and
upon
forms
to
be
provided
by
27
the
department,
and
the
department
shall
forthwith
audit
the
28
claim
and,
if
approved,
issue
a
warrant
to
the
owner
of
the
29
collaborative
educational
facility
in
the
amount
of
the
sales
30
or
use
tax
which
has
been
paid
to
the
state
of
Iowa
under
the
31
contract.
32
(2)
Refunds
authorized
under
this
subsection
shall
accrue
33
interest
in
accordance
with
section
421.60,
subsection
2
,
34
paragraph
“e”
.
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Sec.
46.
Section
423.5,
subsection
1,
paragraph
b,
Code
1
2020,
is
amended
by
striking
the
paragraph.
2
Sec.
47.
Section
423.29,
subsection
1,
Code
2020,
is
amended
3
to
read
as
follows:
4
1.
Every
seller
who
is
a
retailer
and
who
is
making
taxable
5
sales
of
tangible
personal
property
or
specified
digital
6
products
in
Iowa
or
who
is
a
retailer
maintaining
a
place
7
of
business
in
this
state
making
taxable
sales
of
tangible
8
personal
property
or
specified
digital
products
shall,
at
9
the
time
of
making
the
sale,
collect
the
sales
tax.
Every
10
seller
who
is
a
retailer
that
is
not
otherwise
required
to
11
collect
sales
tax
under
the
provisions
of
this
chapter
and
who
12
is
selling
tangible
personal
property
or
specified
digital
13
products
for
use
in
Iowa
shall,
at
the
time
of
making
the
sale,
14
whether
within
or
without
the
state,
collect
the
use
tax.
15
Sellers
required
to
collect
sales
or
use
tax
shall
give
to
any
16
purchaser
a
receipt
for
the
tax
collected
in
the
manner
and
17
form
prescribed
by
the
director.
18
Sec.
48.
Section
423.33,
subsection
1,
Code
2020,
is
amended
19
to
read
as
follows:
20
1.
Liability
of
purchaser
for
sales
tax
and
retailer
.
21
a.
If
a
purchaser
fails
to
pay
sales
tax
to
the
retailer
22
required
to
collect
the
tax,
then
in
addition
to
all
of
the
23
rights,
obligations,
and
remedies
provided,
the
a
use
tax
24
is
payable
by
the
purchaser
directly
to
the
department,
and
25
sections
423.31
,
423.32
,
423.37
,
423.38
,
423.39
,
423.40
,
26
423.41
,
and
423.42
apply
to
the
purchaser.
27
b.
For
failure
to
pay
the
sales
or
use
tax
as
described
28
in
paragraph
“a”
,
the
retailer
and
purchaser
are
jointly
29
liable,
unless
the
circumstances
described
in
section
29C.24,
30
subsection
3,
paragraph
“a”
,
subparagraph
(2),
section
421.60,
31
subsection
2
,
paragraph
“m”
,
section
423.34A
,
or
section
32
423.45,
subsection
4
,
paragraph
“b”
or
“e”
,
or
subsection
5
,
33
paragraph
“c”
or
“e”
,
are
applicable.
34
c.
If
the
retailer
fails
to
collect
sales
tax
at
the
time
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of
the
transaction,
the
retailer
shall
thereafter
remit
the
1
applicable
sales
tax,
or
the
purchaser
thereafter
shall
remit
2
the
applicable
use
tax.
If
the
purchaser
remits
all
applicable
3
use
tax,
the
retailer
remains
liable
for
any
local
sales
and
4
services
tax
under
chapter
423B
that
the
retailer
failed
to
5
collect.
6
Sec.
49.
REFUNDS
RELATED
TO
PRESERVE
WHITETAIL
DEER
7
HUNTING.
Refunds
of
taxes,
interest,
or
penalties
that
arise
8
from
claims
resulting
from
the
amendment
of
section
423.3,
9
subsection
3A,
for
sales
occurring
between
July
1,
2005,
10
and
the
effective
date
of
the
amendment
to
section
423.3,
11
subsection
3A,
shall
not
be
allowed,
notwithstanding
any
other
12
law
to
the
contrary.
13
Sec.
50.
LEGISLATIVE
INTENT.
14
1.
It
is
the
intent
of
the
general
assembly
that
the
section
15
of
this
division
of
this
Act
amending
section
423.29
is
a
16
conforming
amendment
consistent
with
current
state
law,
and
17
that
the
amendment
does
not
change
the
application
of
current
18
law
but
instead
reflects
current
law
both
before
and
after
the
19
enactment
of
this
division
of
this
Act.
20
2.
It
is
the
intent
of
the
general
assembly
that
the
21
addition
of
“jointly”
in
the
section
of
this
division
of
22
this
Act
amending
section
423.33
is
a
conforming
amendment
23
consistent
with
current
state
law,
and
that
the
amendment
24
does
not
change
the
application
of
current
law
but
instead
25
reflects
current
law
both
before
and
after
the
enactment
of
26
this
division
of
this
Act.
27
Sec.
51.
EFFECTIVE
DATE.
The
following,
being
deemed
of
28
immediate
importance,
take
effect
upon
enactment:
29
1.
The
section
of
this
division
of
this
Act
amending
section
30
423.3A.
31
2.
The
section
of
this
division
of
this
Act
relating
32
to
refunds
for
commercial
recreation
services
offering
an
33
opportunity
to
hunt
preserve
whitetail
deer.
34
Sec.
52.
RETROACTIVE
APPLICABILITY.
The
following
applies
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retroactively
to
July
1,
2005:
1
The
section
of
this
division
of
this
Act
amending
section
2
423.3A.
3
DIVISION
III
4
INCOME
TAX
5
Sec.
53.
Section
422.9,
subsection
3,
paragraph
c,
Code
6
2020,
is
amended
by
striking
the
paragraph
and
inserting
in
7
lieu
thereof
the
following:
8
c.
A
taxpayer
may
elect
to
waive
the
entire
carryback
period
9
with
respect
to
an
Iowa
net
operating
loss
for
any
taxable
year
10
beginning
on
or
after
January
1,
2020.
The
election
shall
be
11
made
in
the
manner
and
form
prescribed
by
the
department,
and
12
shall
be
made
by
the
due
date
for
filing
the
taxpayer’s
Iowa
13
return,
including
extensions
of
time.
After
the
election
is
14
made
for
any
taxable
year,
the
election
shall
be
irrevocable
15
for
such
taxable
year.
When
an
election
has
been
properly
16
made,
the
Iowa
net
operating
loss
shall
be
carried
forward
17
twenty
taxable
years.
18
Sec.
54.
Section
422.9,
subsection
3,
paragraph
d,
Code
19
2020,
is
amended
to
read
as
follows:
20
d.
Notwithstanding
paragraph
“a”
,
for
a
taxpayer
who
is
21
engaged
in
the
trade
or
business
of
farming
,
which
means
the
22
same
as
a
“farming
business”
as
defined
in
section
263A(e)(4)
of
23
the
Internal
Revenue
Code
,
and
has
a
farming
loss
from
farming
24
as
defined
in
section
172(b)(1)(B)
of
the
Internal
Revenue
Code
25
including
modifications
prescribed
by
rule
by
the
director,
26
the
Iowa
farming
loss
from
the
trade
or
business
of
farming
is
27
a
net
operating
loss
which
may
,
at
the
time
of
the
election
of
28
the
taxpayer,
be
carried
back
five
taxable
years
prior
to
the
29
taxable
year
of
the
loss.
The
election
shall
be
made
in
the
30
manner
and
form
prescribed
by
the
department,
and
shall
be
made
31
by
the
due
date
for
filing
the
taxpayer’s
return,
including
32
extensions
of
time.
After
the
election
is
made
for
any
taxable
33
year,
the
election
shall
be
irrevocable
for
such
taxable
year.
34
Sec.
55.
APPLICABILITY.
This
division
of
this
Act
applies
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to
tax
years
beginning
on
or
after
January
1,
2020.
1
DIVISION
IV
2
SCHOOL
TUITION
TAX
CREDIT
——
FUNDING
3
Sec.
56.
Section
422.11S,
subsection
8,
paragraph
a,
4
subparagraph
(2),
Code
2020,
is
amended
to
read
as
follows:
5
(2)
(a)
“Total
approved
tax
credits”
means
for
the
2006
6
calendar
year,
two
million
five
hundred
thousand
dollars,
for
7
the
2007
calendar
year,
five
million
dollars,
for
calendar
8
years
beginning
on
or
after
January
1,
2008,
but
before
January
9
1,
2012,
seven
million
five
hundred
thousand
dollars,
for
10
calendar
years
beginning
on
or
after
January
1,
2012,
but
11
before
January
1,
2014,
eight
million
seven
hundred
fifty
12
thousand
dollars,
for
calendar
years
beginning
on
or
after
13
January
1,
2014,
but
before
January
1,
2019,
twelve
million
14
dollars,
and
for
calendar
years
beginning
on
or
after
January
15
1,
2019,
but
before
January
1,
2020,
thirteen
million
dollars,
16
and
for
calendar
years
beginning
on
or
after
January
1,
2020,
17
fifteen
million
dollars.
18
(b)
(i)
During
any
calendar
year
beginning
after
January
1,
19
2022,
if
the
amount
of
claimed
tax
credits
from
the
preceding
20
calendar
year
are
equal
to
or
greater
than
ninety
percent
of
21
the
total
approved
tax
credits
for
the
calendar
year,
the
22
total
approved
tax
credits
for
the
calendar
year
shall
equal
23
the
product
of
ten
percent
multiplied
by
the
total
approved
24
tax
credits
for
the
calendar
year
plus
the
total
approved
tax
25
credits
for
the
calendar
year.
26
(ii)
If
total
approved
tax
credits
are
recomputed
pursuant
27
to
subparagraph
subdivision
(i),
the
total
approved
tax
credits
28
shall
equal
the
previous
total
approved
tax
credits
recomputed
29
pursuant
to
subparagraph
subdivision
(i)
for
purposes
of
future
30
recomputations
under
subparagraph
subdivision
(i),
provided
31
that
the
maximum
total
approved
tax
credits
recomputed
pursuant
32
to
this
subparagraph
division
(b)
shall
not
exceed
twenty
33
million
dollars
in
a
calendar
year.
34
DIVISION
V
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RESEARCH
ACTIVITIES
CREDIT
1
Sec.
57.
Section
15.335,
subsection
4,
paragraph
a,
Code
2
2020,
is
amended
to
read
as
follows:
3
a.
In
lieu
of
the
credit
amount
computed
in
subsection
2
,
an
4
eligible
business
may
elect
to
compute
the
credit
amount
for
5
qualified
research
expenses
incurred
in
this
state
in
a
manner
6
consistent
with
the
alternative
simplified
credit
described
in
7
section
41(c)(5)
41(c)(4)
of
the
Internal
Revenue
Code.
The
8
taxpayer
may
make
this
election
regardless
of
the
method
used
9
for
the
taxpayer’s
federal
income
tax.
The
election
made
under
10
this
paragraph
is
for
the
tax
year
and
the
taxpayer
may
use
11
another
or
the
same
method
for
any
subsequent
year.
12
Sec.
58.
Section
15.335,
subsection
4,
paragraph
b,
13
unnumbered
paragraph
1,
Code
2020,
is
amended
to
read
as
14
follows:
15
For
purposes
of
the
alternate
credit
computation
method
in
16
paragraph
“a”
,
the
credit
percentages
applicable
to
qualified
17
research
expenses
described
in
section
41(c)(5)(A)
41(c)(4)(A)
18
and
clause
(ii)
of
section
41(c)(5)(B)
41(c)(4)(B)
of
the
19
Internal
Revenue
Code
are
as
follows:
20
Sec.
59.
Section
422.10,
subsection
1,
paragraphs
c
and
d,
21
Code
2020,
are
amended
to
read
as
follows:
22
c.
In
lieu
of
the
credit
amount
computed
in
paragraph
“b”
,
23
subparagraph
(1),
subparagraph
division
(a),
a
taxpayer
may
24
elect
to
compute
the
credit
amount
for
qualified
research
25
expenses
incurred
in
this
state
in
a
manner
consistent
with
the
26
alternative
simplified
credit
described
in
section
41(c)(5)
27
41(c)(4)
of
the
Internal
Revenue
Code.
The
taxpayer
may
make
28
this
election
regardless
of
the
method
used
for
the
taxpayer’s
29
federal
income
tax.
The
election
made
under
this
paragraph
is
30
for
the
tax
year
and
the
taxpayer
may
use
another
or
the
same
31
method
for
any
subsequent
year.
32
d.
For
purposes
of
the
alternate
credit
computation
33
method
in
paragraph
“c”
,
the
credit
percentages
applicable
to
34
qualified
research
expenses
described
in
section
41(c)(5)(A)
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2641
41(c)(4)(A)
and
clause
(ii)
of
section
41(c)(5)(B)
41(c)(4)(B)
1
of
the
Internal
Revenue
Code
are
four
and
fifty-five
2
hundredths
percent
and
one
and
ninety-five
hundredths
percent,
3
respectively.
4
Sec.
60.
Section
422.33,
subsection
5,
paragraphs
c
and
d,
5
Code
2020,
are
amended
to
read
as
follows:
6
c.
In
lieu
of
the
credit
amount
computed
in
paragraph
7
“a”
,
subparagraph
(1),
a
corporation
may
elect
to
compute
the
8
credit
amount
for
qualified
research
expenses
incurred
in
this
9
state
in
a
manner
consistent
with
the
alternative
simplified
10
credit
described
in
section
41(c)(5)
41(c)(4)
of
the
Internal
11
Revenue
Code.
The
taxpayer
may
make
this
election
regardless
12
of
the
method
used
for
the
taxpayer’s
federal
income
tax.
The
13
election
made
under
this
paragraph
is
for
the
tax
year
and
the
14
taxpayer
may
use
another
or
the
same
method
for
any
subsequent
15
year.
16
d.
For
purposes
of
the
alternate
credit
computation
17
method
in
paragraph
“c”
,
the
credit
percentages
applicable
to
18
qualified
research
expenses
described
in
section
41(c)(5)(A)
19
41(c)(4)(A)
and
clause
(ii)
of
section
41(c)(5)(B)
41(c)(4)(B)
20
of
the
Internal
Revenue
Code
are
four
and
fifty-five
21
hundredths
percent
and
one
and
ninety-five
hundredths
percent,
22
respectively.
23
Sec.
61.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
24
deemed
of
immediate
importance,
takes
effect
upon
enactment.
25
Sec.
62.
RETROACTIVE
APPLICABILITY.
This
division
of
this
26
Act
applies
retroactively
to
January
1,
2019,
for
tax
years
27
beginning
on
or
after
that
date.
28
DIVISION
VI
29
PARTNERSHIP
AND
PASS-THROUGH
ENTITY
AUDITS
AND
REPORTING
OF
30
FEDERAL
ADJUSTMENTS
31
Sec.
63.
Section
421.27,
subsection
2,
paragraph
c,
Code
32
2020,
is
amended
to
read
as
follows:
33
c.
(1)
The
Except
in
the
case
of
a
final
federal
34
partnership
adjustment
governed
by
subparagraph
(2),
the
35
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taxpayer
provides
written
notification
to
the
department
of
a
1
federal
audit
while
it
is
in
progress
and
voluntarily
files
an
2
amended
return
which
includes
a
copy
of
the
federal
document
3
showing
the
final
disposition
or
final
federal
adjustments
4
and
pays
any
additional
Iowa
tax
due
within
sixty
one
hundred
5
eighty
days
of
the
final
disposition
determination
date
of
the
6
federal
government’s
audit.
For
purposes
of
this
subparagraph,
7
“final
determination
date”
means
the
same
as
defined
in
section
8
422.25.
9
(2)
(a)
In
the
case
of
a
final
federal
partnership
10
adjustment
arising
from
a
partnership
level
audit,
with
respect
11
to
the
audited
partnership
or
a
direct
partner
or
indirect
12
partner
of
the
audited
partnership,
the
audited
partnership,
13
direct
partner,
or
indirect
partner
voluntarily
and
timely
14
complies
with
its
reporting
and
payment
requirements
under
15
section
422.25A,
subsection
4
or
5.
16
(b)
As
used
in
this
subparagraph,
all
words
and
phrases
17
defined
in
section
422.25A
shall
have
the
same
meaning
given
18
them
by
that
section.
19
Sec.
64.
Section
422.7,
Code
2020,
is
amended
by
adding
the
20
following
new
subsection:
21
NEW
SUBSECTION
.
59.
Any
income
subtracted
from
federal
22
taxable
income
for
an
adjustment
year
pursuant
to
section
6225
23
of
the
Internal
Revenue
Code
and
the
regulations
thereunder
24
shall
be
added
back
in
computing
net
income
for
state
tax
25
purposes
for
the
adjustment
year.
26
Sec.
65.
Section
422.25,
subsections
1
and
2,
Code
2020,
27
are
amended
by
striking
the
subsections
and
inserting
in
lieu
28
thereof
the
following:
29
1.
a.
For
purposes
of
this
subsection:
30
(1)
“Federal
adjustment”
means
a
change
to
an
item
or
amount
31
required
to
be
determined
under
the
Internal
Revenue
Code
and
32
the
regulations
thereunder
that
is
used
by
the
taxpayer
to
33
compute
state
tax
owed
whether
such
change
results
from
action
34
by
the
internal
revenue
service,
or
the
filing
of
a
timely
35
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amended
federal
return
or
timely
federal
refund
claim.
A
1
federal
adjustment
is
positive
to
the
extent
that
it
increases
2
Iowa
taxable
income
as
determined
under
this
title
and
is
3
negative
to
the
extent
that
it
decreases
Iowa
taxable
income
4
as
determined
under
this
title.
5
(2)
“Federal
adjustments
report”
means
the
method
or
form
6
required
by
the
department
by
rule
to
report
final
federal
7
adjustments
or
final
federal
partnership
adjustments
as
defined
8
in
section
422.25A,
and
in
the
case
of
any
entity
taxed
as
a
9
partnership
or
S
corporation
for
federal
income
tax
purposes,
10
identifies
all
owners
that
hold
an
interest
directly
in
such
11
entity
and
provides
the
effect
of
the
final
federal
adjustments
12
on
such
owner’s
Iowa
income.
13
(3)
“Final
determination
date”
means
the
following:
14
(a)
Except
as
provided
in
subparagraph
divisions
(b)
and
15
(c),
for
federal
adjustments
arising
from
an
internal
revenue
16
service
audit
or
other
action
by
the
internal
revenue
service,
17
the
final
determination
date
is
the
first
day
on
which
no
18
federal
adjustments
arising
from
that
audit
or
other
action
19
remain
to
be
finally
determined,
whether
by
internal
revenue
20
service
decision
with
respect
to
which
all
rights
of
appeal
21
have
been
waived
or
exhausted,
by
agreement,
or,
if
appealed
22
or
contested,
by
a
final
decision
with
respect
to
which
all
23
rights
of
appeal
have
been
waived
or
exhausted.
For
agreements
24
required
to
be
signed
by
the
internal
revenue
service
and
the
25
taxpayer,
the
final
determination
date
is
the
date
on
which
the
26
last
party
signed
the
agreement.
27
(b)
For
federal
adjustments
arising
from
an
internal
28
revenue
service
audit
or
other
action
by
the
internal
revenue
29
service,
if
the
taxpayer
filed
as
a
member
of
a
consolidated
30
return
under
section
422.37,
the
final
determination
date
31
is
the
first
day
on
which
no
related
federal
adjustments
32
arising
from
that
audit
or
other
action
remain
to
be
finally
33
determined,
as
described
in
subparagraph
division
(a),
for
the
34
entire
group.
35
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(c)
For
federal
adjustments
arising
from
a
timely
filed
1
amended
federal
return
or
a
timely
filed
federal
refund
2
claim,
or
if
it
is
a
federal
adjustment
reported
on
a
timely
3
amended
federal
return
or
other
similar
report
filed
pursuant
4
to
section
6225(c)
of
the
Internal
Revenue
Code,
the
final
5
determination
date
is
the
day
on
which
the
amended
return,
6
refund
claim,
or
other
similar
report
was
filed.
7
(4)
“Final
federal
adjustment”
means
a
federal
adjustment
8
after
the
final
determination
date
for
that
federal
adjustment
9
has
passed.
10
b.
Within
three
years
after
the
return
is
filed
or
within
11
three
years
after
the
return
became
due,
including
any
12
extensions
of
time
for
filing,
whichever
time
is
the
later,
13
the
department
shall
examine
the
return
and
determine
the
tax.
14
However,
if
the
taxpayer
omits
from
income
an
amount
which
15
will,
under
the
Internal
Revenue
Code,
extend
the
statute
of
16
limitations
for
assessment
of
federal
tax
to
six
years
under
17
the
federal
law,
the
period
for
examination
and
determination
18
is
six
years.
19
c.
The
period
for
examination
and
determination
of
the
20
correct
amount
of
tax
is
unlimited
in
the
case
of
a
false
or
21
fraudulent
return
made
with
the
intent
to
evade
tax
or
in
the
22
case
of
a
failure
to
file
a
return.
23
d.
In
lieu
of
the
period
of
limitation
for
any
prior
year
24
for
which
an
overpayment
of
tax
or
an
elimination
or
reduction
25
of
an
underpayment
of
tax
due
for
that
prior
year
results
from
26
the
carryback
to
that
prior
year
of
a
net
operating
loss
or
27
net
capital
loss,
the
period
is
the
period
of
limitation
for
28
the
taxable
year
of
the
net
operating
loss
or
net
capital
loss
29
which
results
in
the
carryback.
30
e.
(1)
In
addition
to
the
applicable
period
of
limitation
31
for
examination
and
determination
in
paragraph
“b”
,
“c”
,
or
“d”
,
32
the
department
may
make
an
examination
and
determination
at
any
33
time
within
one
year
from
the
date
of
receipt
by
the
department
34
of
a
federal
adjustments
report
with
respect
to
a
final
35
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federal
adjustment
or
final
federal
partnership
adjustment
1
as
defined
in
section
422.25A
for
a
particular
tax
year.
In
2
order
to
begin
the
running
of
the
one-year
period,
the
federal
3
adjustments
report
related
to
the
final
federal
adjustment
or
4
final
federal
partnership
adjustment
shall
be
transmitted
to
5
the
department
by
the
taxpayer
in
the
form
and
manner
specified
6
by
the
department
by
rule.
7
(2)
The
department
in
its
discretion
may
adopt
rules
to
8
establish
a
de
minimis
amount
for
which
subparagraph
(1)
shall
9
not
apply
and
the
taxpayer
shall
not
be
required
to
file
a
10
federal
adjustments
report.
11
(3)
The
department
may
in
its
discretion
and
when
12
administratively
feasible
adopt
a
process
through
rule
by
13
which
a
taxpayer
may
make
estimated
payments
of
tax
expected
14
to
result
from
a
pending
internal
revenue
service
audit
15
prior
to
the
filing
of
a
federal
adjustments
report
with
the
16
department.
The
process
shall
provide
that
the
estimated
17
tax
payments
shall
be
credited
against
any
tax
liability
18
ultimately
found
to
be
due
to
the
state
from
the
internal
19
revenue
service
audit
and
will
limit
the
accrual
of
further
20
statutory
interest
on
that
liability.
The
process
shall
also
21
provide
that
if
the
estimated
tax
payments
exceed
the
final
22
tax
liability
and
statutory
interest
ultimately
determined
to
23
be
due,
the
taxpayer
is
entitled
to
a
refund
or
credit
for
24
the
excess,
without
interest,
provided
the
taxpayer
files
a
25
federal
adjustments
report,
or
a
claim
for
refund
or
credit
of
26
tax
under
section
422.73,
no
later
than
one
year
following
the
27
final
determination
date.
28
2.
a.
If
the
tax
found
due
under
subsection
1
is
greater
29
than
the
amount
paid,
the
department
shall
compute
the
amount
30
due,
together
with
interest
and
penalties
as
provided
in
31
paragraph
“b”
,
and
shall
mail
a
notice
of
assessment
to
the
32
taxpayer
and,
if
applicable,
to
the
taxpayer’s
authorized
33
representative
of
the
total,
which
shall
be
computed
as
a
sum
34
certain,
with
interest
computed
to
the
last
day
of
the
month
35
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in
which
the
notice
is
dated.
1
b.
In
addition
to
the
tax
or
additional
tax
determined
2
by
the
department
under
subsection
1,
the
taxpayer
shall
pay
3
interest
on
the
tax
or
additional
tax
at
the
rate
in
effect
4
under
section
421.7
for
each
month
counting
each
fraction
of
5
a
month
as
an
entire
month,
computed
from
the
date
the
return
6
was
required
to
be
filed.
In
addition
to
the
tax
or
additional
7
tax,
the
taxpayer
shall
pay
a
penalty
as
provided
in
section
8
421.27.
9
Sec.
66.
NEW
SECTION
.
422.25A
Reporting
and
treatment
of
10
certain
partnership
adjustments.
11
1.
Definitions.
As
used
in
this
section
and
sections
12
422.25B
and
422.25C,
unless
the
context
otherwise
requires:
13
a.
“Administrative
adjustment
request”
means
the
same
as
14
provided
in
section
6227
of
the
Internal
Revenue
Code.
15
b.
“Audited
partnership”
means
a
partnership
subject
16
to
a
final
federal
partnership
adjustment
resulting
from
a
17
partnership
level
audit.
18
c.
“C
corporation”
means
an
entity
that
elects
or
is
19
required
to
be
taxed
as
a
corporation
under
title
26,
chapter
20
1,
subchapter
A,
part
2,
of
the
Internal
Revenue
Code.
21
d.
“Corporate
partner”
means
a
C
corporation
partner
that
is
22
subject
to
tax
pursuant
to
section
422.33.
23
e.
“Direct
partner”
means
a
person
that
holds
an
interest
24
directly
in
a
partnership
or
pass-through
entity.
25
f.
“Exempt
partner”
means
a
partner
that
is
exempt
from
26
taxation
pursuant
to
section
422.34.
27
g.
“Federal
adjustments
report”
means
the
same
as
defined
28
in
section
422.25.
29
h.
“Federal
partnership
adjustment”
means
a
change
to
an
30
item
or
amount
required
to
be
determined
under
the
Internal
31
Revenue
Code
and
the
regulations
thereunder
that
is
used
by
a
32
partnership
and
its
direct
and
indirect
partners
to
compute
33
state
tax
owed
for
the
reviewed
year
where
such
change
results
34
from
a
partnership
level
audit
or
an
administrative
adjustment
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request.
A
federal
partnership
adjustment
is
positive
to
the
1
extent
that
it
increases
Iowa
taxable
income
as
determined
2
under
this
title
and
is
negative
to
the
extent
that
it
3
decreases
Iowa
taxable
income
as
determined
under
this
title.
4
A
federal
adjustment
reported
on
an
amended
federal
return
5
or
other
similar
report
filed
pursuant
to
section
6225(c)
of
6
the
Internal
Revenue
Code
shall
not
be
considered
a
federal
7
partnership
adjustment
for
purposes
of
this
section.
8
i.
“Federal
partnership
representative”
means
the
person
9
the
partnership
designates
for
the
taxable
year
as
the
10
partnership’s
representative,
or
the
person
the
internal
11
revenue
service
has
appointed
to
act
as
the
federal
partnership
12
representative,
pursuant
to
section
6223(a)
of
the
Internal
13
Revenue
Code
and
the
regulations
thereunder.
14
j.
“Fiduciary
partner”
means
a
partner
that
is
a
fiduciary
15
that
is
subject
to
tax
pursuant
to
sections
422.5
and
422.6.
16
k.
“Final
determination
date”
means
any
one
of
the
following
17
dates:
18
(1)
In
the
case
of
a
federal
partnership
adjustment
that
19
arises
from
a
partnership
level
audit,
the
first
day
on
which
20
no
federal
adjustments
arising
from
that
audit
remain
to
be
21
finally
determined,
whether
by
agreement,
or,
if
appealed
22
or
contested,
by
a
final
decision
with
respect
to
which
all
23
rights
of
appeal
have
been
waived
or
exhausted.
For
agreements
24
required
to
be
signed
by
the
internal
revenue
service
and
the
25
audited
partnership,
the
final
determination
date
is
the
date
26
on
which
the
last
party
signed
the
agreement.
27
(2)
In
the
case
of
a
federal
partnership
adjustment
that
28
results
from
a
timely
filed
administrative
adjustment
request,
29
the
day
on
which
the
administrative
adjustment
request
was
30
filed
with
the
internal
revenue
service.
31
l.
“Final
federal
partnership
adjustment”
means
a
federal
32
partnership
adjustment
after
the
final
determination
date
for
33
that
federal
partnership
adjustment
has
passed.
34
m.
“Indirect
partner”
means
a
partner
in
a
partnership
or
35
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pass-through
entity
where
such
partnership
or
pass-through
1
entity
itself
holds
an
interest
directly,
or
through
another
2
indirect
partner,
in
a
partnership
or
pass-through
entity.
3
n.
“Individual
partner”
means
a
partner
who
is
a
natural
4
person
that
is
subject
to
tax
pursuant
to
section
422.5.
5
o.
“Nonresident
partner”
means
a
partner
that
is
not
a
6
resident
partner
as
defined
in
this
subsection.
7
p.
“Partner”
means
a
person
that
holds
an
interest,
directly
8
or
indirectly,
in
a
partnership
or
pass-through
entity.
9
q.
“Partnership”
means
an
entity
subject
to
taxation
10
under
subchapter
K
of
the
Internal
Revenue
Code
and
the
11
regulations
thereunder
and
includes
but
is
not
limited
to
a
12
syndicate,
group,
pool,
joint
venture,
or
other
unincorporated
13
organization
through
or
by
means
of
which
any
business,
14
financial
operation,
or
venture
is
carried
on
and
which
is
15
not,
within
the
meaning
of
this
chapter,
a
trust,
estate,
or
16
corporation.
17
r.
“Partnership
level
audit”
means
an
examination
by
the
18
internal
revenue
service
at
the
partnership
level
pursuant
to
19
subchapter
C,
title
26,
subtitle
F,
chapter
63,
of
the
Internal
20
Revenue
Code,
as
enacted
by
the
Bipartisan
Budget
Act
of
2015,
21
Pub.
L.
No.
114-74,
and
as
amended,
which
results
in
final
22
federal
partnership
adjustments
initiated
and
made
by
the
23
internal
revenue
service.
24
s.
“Pass-through
entity”
means
an
entity,
other
than
25
a
partnership,
that
is
not
subject
to
tax
under
section
26
422.33
for
C
corporations
but
excluding
an
exempt
partner.
27
“Pass-through
entity”
includes
but
is
not
limited
to
S
28
corporations,
estates,
and
trusts
other
than
grantor
trusts.
29
t.
“Reallocation
adjustment”
means
a
final
federal
30
partnership
adjustment
that
changes
the
shares
of
items
of
31
partnership
income,
gain,
loss,
expense,
or
credit
allocated
32
to
a
partner
that
holds
an
interest
directly
in
a
partnership
33
or
pass-through
entity.
A
positive
reallocation
adjustment
34
means
the
portion
of
a
reallocation
adjustment
that
would
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increase
Iowa
taxable
income
for
such
partners,
and
a
negative
1
reallocation
adjustment
means
the
portion
of
a
reallocation
2
adjustment
that
would
decrease
Iowa
taxable
income
for
such
3
partners.
4
u.
“Resident
partner”
means
any
of
the
following:
5
(1)
For
an
individual
partner,
a
“resident”
as
defined
in
6
section
422.4.
7
(2)
For
a
fiduciary
partner,
one
with
situs
in
Iowa.
8
(3)
For
all
other
partners,
a
partner
whose
headquarters
or
9
principal
place
of
business
is
located
in
Iowa.
10
v.
“Reviewed
year”
means
the
taxable
year
of
a
partnership
11
that
is
subject
to
a
partnership
level
audit
from
which
final
12
federal
partnership
adjustments
arise,
or
otherwise
means
the
13
taxable
year
of
the
partnership
or
pass-through
entity
that
is
14
the
subject
of
a
state
partnership
audit.
15
w.
“State
partnership
audit”
means
an
examination
by
the
16
director
at
the
partnership
or
pass-through
entity
level
which
17
results
in
adjustments
to
partnership
or
pass-through
entity
18
related
items
or
reallocations
of
income,
gains,
losses,
19
expenses,
credits,
and
other
attributes
among
such
partners
for
20
the
reviewed
year.
21
x.
“Tiered
partner”
means
any
partner
that
is
a
partnership
22
or
pass-through
entity.
23
y.
“Unrelated
business
income”
means
the
income
which
is
24
defined
in
section
512
of
the
Internal
Revenue
Code
and
the
25
regulations
thereunder.
26
2.
Application.
Partnerships
and
their
direct
partners
27
and
indirect
partners
shall
report
final
federal
partnership
28
adjustments
as
provided
in
this
section.
29
3.
State
partnership
representative.
Notwithstanding
any
30
other
law
to
the
contrary,
the
state
partnership
representative
31
for
the
reviewed
year
shall
have
the
sole
authority
to
act
on
32
behalf
of
the
partnership
or
pass-through
entity
with
respect
33
to
an
action
required
or
permitted
to
be
taken
by
a
partnership
34
or
pass-through
entity
under
this
section
or
section
422.28
or
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422.29
with
respect
to
final
federal
partnership
adjustments
1
arising
from
a
partnership
level
audit
or
an
administrative
2
adjustment
request,
and
its
direct
partners
and
indirect
3
partners
shall
be
bound
by
those
actions.
4
4.
Reporting
and
payment
requirements
for
audited
5
partnerships
and
their
partners
subject
to
final
federal
6
partnership
adjustments.
7
a.
Unless
an
audited
partnership
makes
the
election
in
8
subsection
5,
the
audited
partnership
shall
do
all
of
the
9
following
for
all
final
federal
partnership
adjustments
no
10
later
than
ninety
days
after
the
final
determination
date
of
11
the
audited
partnership:
12
(1)
File
a
completed
federal
adjustments
report.
13
(2)
Notify
each
direct
partner
of
such
partner’s
14
distributive
share
of
the
adjustments
in
the
manner
and
form
15
prescribed
by
the
department
by
rule.
16
(3)
File
an
amended
composite
return
under
section
422.13
17
if
one
was
originally
filed,
and
if
applicable
for
withholding
18
from
partners,
file
an
amended
withholding
report
under
19
section
422.16,
and
pay
the
additional
amount
under
this
title
20
that
would
have
been
due
had
the
final
federal
partnership
21
adjustments
been
reported
properly
as
required,
including
any
22
applicable
interest
and
penalties.
23
b.
Unless
an
audited
partnership
paid
an
amount
on
behalf
24
of
the
direct
partners
of
the
audited
partnership
pursuant
to
25
subsection
5,
all
direct
partners
of
the
audited
partnership
26
shall
do
all
of
the
following
no
later
than
one
hundred
27
eighty
days
after
the
final
determination
date
of
the
audited
28
partnership:
29
(1)
File
a
completed
federal
adjustments
report
reporting
30
the
direct
partner’s
distributive
share
of
the
adjustments
31
required
to
be
reported
to
such
partners
under
paragraph
“a”
.
32
(2)
If
the
direct
partner
is
a
tiered
partner,
notify
all
33
partners
that
hold
an
interest
directly
in
the
tiered
partner
34
of
such
partner’s
distributive
share
of
the
adjustments
in
the
35
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manner
and
form
prescribed
by
the
department
by
rule.
1
(3)
If
the
direct
partner
is
a
tiered
partner
and
subject
to
2
section
422.13,
file
an
amended
composite
return
under
section
3
422.13
if
such
return
was
originally
filed,
and
if
applicable
4
for
withholding
from
partners
file
an
amended
withholding
5
report
under
section
422.16
if
one
was
originally
required
to
6
be
filed.
7
(4)
Pay
any
additional
amount
under
this
title
that
would
8
have
been
due
had
the
final
federal
partnership
adjustments
9
been
reported
properly
as
required,
including
any
applicable
10
penalty
and
interest.
11
c.
Unless
a
partnership
or
tiered
partner
paid
an
amount
on
12
behalf
of
the
partners
pursuant
to
subsection
5,
each
indirect
13
partner
shall
do
all
of
the
following:
14
(1)
Within
ninety
days
after
the
time
for
filing
and
15
furnishing
statements
to
tiered
partners
and
their
partners
16
as
established
by
section
6226
of
the
Internal
Revenue
Code
17
and
the
regulations
thereunder,
file
a
completed
federal
18
adjustments
report.
19
(2)
If
the
indirect
partner
is
a
tiered
partner,
within
20
ninety
days
after
the
time
for
filing
and
furnishing
statements
21
to
tiered
partners
and
their
partners
as
established
by
22
section
6226
of
the
Internal
Revenue
Code
and
the
regulations
23
thereunder
but
within
sufficient
time
for
all
indirect
partners
24
to
also
complete
the
requirements
of
this
subsection,
notify
25
all
of
the
partners
that
hold
an
interest
directly
in
the
26
tiered
partner
of
such
partner’s
distributive
share
of
the
27
adjustments
in
the
manner
and
form
prescribed
by
the
department
28
by
rule.
29
(3)
Within
ninety
days
after
the
time
for
filing
and
30
furnishing
statements
to
tiered
partners
and
their
partners
31
as
established
by
section
6226
of
the
Internal
Revenue
Code
32
and
the
regulations
thereunder,
if
the
indirect
partner
33
is
a
tiered
partner
and
subject
to
section
422.13,
file
an
34
amended
composite
return
under
section
422.13
if
such
return
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was
originally
filed,
and
if
applicable
for
withholding
from
1
partners,
file
an
amended
withholding
report
under
section
2
422.16
if
one
was
originally
required
to
be
filed.
3
(4)
Within
ninety
days
after
the
time
for
filing
and
4
furnishing
statements
to
tiered
partners
and
the
partners
of
5
the
tiered
partners
as
established
by
section
6226
of
the
6
Internal
Revenue
Code
and
the
regulations
thereunder,
pay
any
7
additional
amount
due
under
this
title,
including
any
penalty
8
and
interest
that
would
have
been
due
had
the
final
federal
9
partnership
adjustments
been
reported
properly
as
required.
10
5.
Election
for
partnership
or
tiered
partners
to
pay.
11
a.
An
audited
partnership,
or
a
tiered
partner
that
receives
12
a
notification
of
a
final
federal
partnership
adjustment
under
13
subsection
4,
may
make
an
election
to
pay
as
provided
under
14
this
subsection.
15
b.
An
audited
partnership
or
tiered
partner
makes
an
16
election
to
pay
under
this
subsection
by
filing
a
completed
17
federal
adjustments
report,
notifying
the
department
in
the
18
manner
and
form
prescribed
by
the
department
that
it
is
making
19
the
election
under
this
subsection,
notifying
each
of
the
20
direct
partners
of
such
partner’s
distributive
share
of
the
21
adjustments,
and
paying
on
behalf
of
its
partners
an
amount
22
calculated
in
paragraph
“c”
,
including
any
applicable
penalty
23
and
interest.
These
requirements
shall
all
be
fulfilled
within
24
one
of
the
following
time
periods:
25
(1)
For
the
audited
partnership,
no
later
than
ninety
days
26
after
the
final
determination
date
of
the
audited
partnership.
27
(2)
For
a
direct
tiered
partner,
no
later
than
one
hundred
28
eighty
days
after
the
final
determination
date
of
the
audited
29
partnership.
30
(3)
For
an
indirect
tiered
partner,
within
ninety
days
31
after
the
time
for
filing
and
furnishing
statements
to
a
32
tiered
partner
and
the
partner
of
the
tiered
partner,
as
33
established
by
section
6226
of
the
Internal
Revenue
Code
and
34
the
regulations
thereunder.
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c.
The
amount
due
under
this
subsection
from
an
audited
1
partnership
or
tiered
partner
shall
be
calculated
as
follows:
2
(1)
Exclude
from
final
federal
partnership
adjustments
and
3
any
positive
reallocation
adjustments
the
distributive
share
4
of
such
adjustments
reported
to
an
exempt
partner
that
holds
5
an
interest
directly
in
the
audited
partnership
if
the
audited
6
partnership
is
making
the
election
or
that
holds
an
interest
7
directly
in
the
tiered
partner
if
the
tiered
partner
is
making
8
the
election,
but
only
to
the
extent
the
distributive
share
is
9
not
unrelated
business
income.
10
(2)
Determine
the
total
distributive
share
of
all
final
11
federal
partnership
adjustments
and
positive
reallocation
12
adjustments
as
modified
by
this
title
that
are
reported
to
13
corporate
partners,
and
to
exempt
partners
to
the
extent
the
14
distributive
share
is
unrelated
business
income,
and
allocate
15
and
apportion
such
adjustments
as
provided
in
section
422.33
16
at
the
partnership
or
tiered
partner
level,
and
multiply
the
17
resulting
amount
by
the
maximum
state
corporate
income
tax
rate
18
pursuant
to
section
422.33
for
the
reviewed
year.
19
(3)
Determine
the
total
distributive
share
of
all
final
20
federal
partnership
adjustments
and
positive
reallocation
21
adjustments
as
modified
by
this
title
that
are
reported
to
22
nonresident
individual
partners
and
nonresident
fiduciary
23
partners
and
allocate
and
apportion
such
adjustments
as
24
provided
in
section
422.33
at
the
partnership
or
tiered
25
partner
level,
and
multiply
the
resulting
amount
by
the
maximum
26
individual
income
tax
rate
pursuant
to
section
422.5A
for
the
27
reviewed
year.
28
(4)
For
the
total
distributive
share
of
all
final
federal
29
partnership
adjustments
and
positive
reallocation
adjustments
30
as
modified
by
this
title
that
are
reported
to
tiered
partners:
31
(a)
Determine
the
amount
of
such
adjustments
which
are
of
a
32
type
that
would
be
subject
to
sourcing
to
Iowa
under
section
33
422.8,
subsection
2,
paragraph
“a”
,
as
a
nonresident,
and
then
34
determine
the
portion
of
this
amount
that
would
be
sourced
to
35
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2641
Iowa
under
those
provisions
as
if
the
tiered
partner
were
a
1
nonresident.
2
(b)
Determine
the
amount
of
such
adjustments
which
are
of
3
a
type
that
would
not
be
subject
to
sourcing
to
Iowa
under
4
section
422.8,
subsection
2,
paragraph
“a”
,
as
a
nonresident.
5
(c)
Determine
the
portion
of
the
amount
in
subparagraph
6
division
(b)
that
can
be
established,
as
prescribed
by
the
7
department
by
rule,
to
be
properly
allocable
to
indirect
8
partners
that
are
nonresident
partners
or
other
partners
not
9
subject
to
tax
on
the
adjustments.
10
(d)
Multiply
the
total
of
the
amounts
determined
in
11
subparagraph
divisions
(a)
and
(b),
reduced
by
any
amount
12
determined
in
subparagraph
division
(c),
by
the
highest
13
individual
income
tax
rate
pursuant
to
section
422.5A
for
the
14
reviewed
year.
15
(5)
For
the
total
distributive
share
of
all
final
federal
16
partnership
adjustments
and
positive
reallocation
adjustments
17
as
modified
by
this
title
that
are
reported
to
resident
18
individual
partners
and
resident
fiduciary
partners,
multiply
19
that
amount
by
the
highest
individual
income
tax
rate
pursuant
20
to
section
422.5A
for
the
reviewed
year.
21
(6)
Total
the
amounts
computed
pursuant
to
subparagraphs
22
(2)
through
(5)
and
calculate
any
interest
and
penalty
as
23
provided
under
this
title.
Notwithstanding
any
provision
of
24
law
to
the
contrary,
interest
and
penalties
on
the
amount
due
25
by
the
audited
partnership
or
tiered
partner
shall
be
computed
26
from
the
day
after
the
due
date
of
the
reviewed
year
return
27
without
extension,
and
shall
be
imposed
as
if
the
audited
28
partnership
or
tiered
partner
was
required
to
pay
tax
or
show
29
tax
due
on
the
original
return
for
the
reviewed
year.
30
d.
Adjustments
subject
to
the
election
in
this
subsection
31
do
not
include
any
adjustments
arising
from
an
administrative
32
adjustment
request.
33
e.
An
audited
partnership
or
tiered
partner
not
otherwise
34
subject
to
any
reporting
or
payment
obligation
to
Iowa
that
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makes
an
election
under
this
subsection
consents
to
be
subject
1
to
the
Iowa
laws
related
to
reporting,
assessment,
collection,
2
and
payment
of
Iowa
tax,
interest,
and
penalties
calculated
3
under
the
election.
4
6.
Modified
reporting
and
payment
method.
The
department
may
5
adopt
procedures
for
an
audited
partnership
or
tiered
partner
6
to
enter
into
an
agreement
with
the
department
to
use
an
7
alternative
reporting
and
payment
method,
including
applicable
8
time
requirements
or
any
other
provision
of
this
section.
The
9
audited
partnership
or
tiered
partner
must
demonstrate
that
10
the
requested
method
will
reasonably
provide
for
the
reporting
11
and
payment
of
taxes,
penalties,
and
interest
due
under
the
12
provisions
of
this
section.
Application
for
approval
of
an
13
alternative
reporting
and
payment
method
must
be
made
by
the
14
audited
partnership
or
tiered
partner
within
the
time
for
15
making
an
election
to
pay
under
subsection
5
and
in
the
manner
16
prescribed
by
the
department.
Approval
of
such
an
alternative
17
reporting
and
payment
method
shall
be
at
the
discretion
of
the
18
department.
19
7.
Effect
of
election
by
partnership
or
tiered
partner
and
20
payment
of
amount
due.
21
a.
The
election
made
under
subsection
5
is
irrevocable,
22
unless
in
the
discretion
of
the
director,
the
director
23
determines
otherwise.
24
b.
The
amount
determined
in
subsection
5,
when
properly
25
reported
and
paid
by
the
audited
partnership
or
tiered
partner,
26
shall
be
treated
as
paid
on
behalf
of
the
partners
of
such
27
audited
partnership
or
tiered
partner
on
the
same
final
federal
28
partnership
adjustments,
provided,
however,
that
no
partner
may
29
take
any
deduction
or
credit
for
the
amount,
claim
a
refund
of
30
the
amount,
or
include
the
amount
on
such
partner’s
Iowa
return
31
in
any
manner.
32
c.
In
the
event
another
state
offers
to
an
audited
33
partnership
or
tiered
partner
a
similar
election
to
pay
state
34
tax
resulting
from
final
federal
partnership
adjustments,
35
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nothing
in
this
subsection
shall
prohibit
a
resident
who
holds
1
an
interest
directly
in
that
audited
partnership
or
tiered
2
partner,
as
the
case
may
be,
from
claiming
a
credit
for
taxes
3
paid
by
the
resident
to
another
state
under
section
422.8,
4
subsection
1,
for
any
amounts
paid
by
the
audited
partnership
5
or
tiered
partner
on
such
resident
partner’s
behalf
to
another
6
state,
provided
such
payment
otherwise
meets
the
requirements
7
of
section
422.8,
subsection
1.
8
d.
Nothing
in
this
section
shall
prohibit
the
department
9
from
assessing
direct
partners
and
indirect
partners
for
taxes
10
they
owe
in
the
event
that
an
audited
partnership
or
tiered
11
partner
fails
to
timely
make
any
report
or
payment
required
by
12
this
section
for
any
reason.
13
8.
Assessments
of
additional
Iowa
income
tax,
interest,
and
14
penalties,
and
claims
for
refund,
arising
from
final
federal
15
partnership
adjustments.
16
a.
The
department
shall
assess
additional
Iowa
income
17
tax,
interest,
and
penalties
arising
from
final
federal
18
partnership
adjustments
in
the
same
manner
as
provided
in
19
this
title
unless
a
different
treatment
is
provided
by
this
20
subsection.
Since
final
federal
partnership
adjustments
are
21
determined
at
the
audited
partnership
level,
any
assessment
22
issued
to
partners
shall
not
be
appealable
by
the
partner.
23
The
department
may
assess
any
taxes,
including
on-behalf-of
24
amounts,
interest,
and
penalties
arising
from
the
final
federal
25
partnership
adjustments
if
it
issues
a
notice
of
assessment
to
26
the
audited
partnership,
tiered
partner,
or
other
direct
or
27
indirect
partner
on
or
before
the
expiration
of
the
applicable
28
limitations
period
specified
in
section
422.25.
29
b.
In
addition
to
the
period
for
claiming
a
refund
or
credit
30
provided
in
section
422.73,
subsection
1,
paragraph
“a”
,
and
31
notwithstanding
section
422.73,
subsection
1,
paragraph
“b”
,
32
a
partnership,
tiered
partner,
or
other
direct
or
indirect
33
partner,
as
the
case
may
be,
may
file
a
claim
for
refund
of
34
Iowa
income
tax
arising
directly
or
indirectly
from
a
final
35
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federal
partnership
adjustment
arising
from
a
partnership
level
1
audit
on
or
before
the
date
which
is
one
year
from
the
date
the
2
federal
adjustments
report
for
that
final
federal
partnership
3
adjustment
was
required
to
be
filed
by
such
person
under
this
4
section.
5
9.
Rules.
The
department
may
adopt
any
rules
pursuant
to
6
chapter
17A
to
implement
this
section.
7
Sec.
67.
NEW
SECTION
.
422.25B
State
partnership
8
representative.
9
1.
As
used
in
this
section,
all
words
and
phrases
defined
10
in
section
422.25A
shall
have
the
same
meaning
given
them
by
11
that
section.
12
2.
The
state
partnership
representative
for
the
reviewed
13
year
for
a
partnership
shall
be
the
partnership’s
federal
14
partnership
representative
with
respect
to
an
action
required
15
or
permitted
to
be
taken
by
a
state
partnership
representative
16
under
this
chapter
for
a
reviewed
year,
unless
the
partnership
17
designates
in
writing
another
person
as
the
state
partnership
18
representative
as
provided
in
subsection
3.
The
state
19
partnership
representative
for
the
reviewed
year
for
a
20
pass-through
entity
is
the
person
designated
in
subsection
3.
21
3.
The
department
may
establish
reasonable
qualifications
22
for
a
person
to
be
a
state
partnership
representative.
If
23
a
partnership
desires
to
designate
a
person
other
than
the
24
federal
partnership
representative,
the
partnership
shall
25
designate
such
person
in
the
manner
and
form
prescribed
by
the
26
department.
A
pass-through
entity
shall
designate
a
person
as
27
the
state
partnership
representative
in
the
manner
and
form
28
prescribed
by
the
department.
A
partnership
or
pass-through
29
entity
shall
be
allowed
to
change
such
designation
by
notifying
30
the
department
at
the
time
the
change
occurs
in
the
manner
and
31
form
prescribed
by
the
department.
32
4.
The
department
may
adopt
any
rules
pursuant
to
chapter
33
17A
to
implement
this
section.
34
Sec.
68.
NEW
SECTION
.
422.25C
Partnership
and
pass-through
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entity
audits
and
examinations
——
consistent
treatment
of
1
entity-level
items
——
binding
actions
——
amended
returns.
2
1.
As
used
in
this
section,
all
words
and
phrases
defined
3
in
section
422.25A
shall
have
the
same
meaning
given
them
by
4
that
section.
5
2.
For
tax
years
beginning
on
or
after
January
1,
2020,
any
6
adjustments
to
a
partnership’s
or
pass-through
entity’s
items
7
of
income,
gain,
loss,
expense,
or
credit,
or
an
adjustment
8
to
such
items
allocated
to
a
partner
that
holds
an
interest
9
in
a
partnership
or
pass-through
entity
for
the
reviewed
year
10
by
the
department
as
a
result
of
a
state
partnership
audit,
11
shall
be
determined
at
the
partnership
level
or
pass-through
12
entity
level
in
the
same
manner
as
provided
by
section
6221(a)
13
of
the
Internal
Revenue
Code
and
the
regulations
thereunder
14
unless
a
different
treatment
is
specifically
provided
in
this
15
title.
The
provisions
of
sections
6222,
6223,
and
6227
of
the
16
Internal
Revenue
Code
and
the
regulations
thereunder
shall
also
17
apply
to
a
partnership
or
pass-through
entity
and
its
direct
18
or
indirect
partners
in
the
same
manner
as
provided
in
such
19
sections
unless
a
different
treatment
is
specifically
provided
20
in
this
title.
For
purposes
of
applying
such
sections,
due
21
account
shall
be
made
for
differences
in
federal
and
Iowa
22
terminology.
The
adjustment
provided
by
section
6221(a)
of
23
the
Internal
Revenue
Code
shall
be
determined
as
provided
in
24
such
section
but
shall
be
based
on
Iowa
taxable
income
or
25
other
tax
attributes
of
the
partnership
as
determined
pursuant
26
to
this
chapter
for
the
reviewed
year.
The
department
shall
27
issue
a
notice
of
adjustment
to
the
partnership
or
pass-through
28
entity.
Such
notice
shall
be
treated
as
an
assessment
for
29
the
purposes
of
section
422.25,
and
the
notice
shall
be
30
appealable
by
the
partnership
or
pass-through
entity
pursuant
31
to
sections
422.28
and
422.29
and
shall
be
issued
within
the
32
time
period
provided
by
section
422.25.
Once
the
adjustments
33
to
partnership-related
or
pass-through
entity-related
items
or
34
reallocations
of
income,
gains,
losses,
expenses,
credits,
and
35
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other
attributes
among
such
partners
for
the
reviewed
year
are
1
finally
determined,
the
partnership
or
pass-through
entity
and
2
any
direct
partners
or
indirect
partners
shall
then
be
subject
3
to
the
provisions
of
section
422.25,
subsection
1,
paragraph
4
“e”
,
and
section
422.25A
in
the
same
manner
as
if
the
state
5
partnership
audit
were
a
federal
partnership
level
audit,
and
6
as
if
the
final
state
partnership
audit
adjustment
were
a
final
7
federal
partnership
adjustment.
The
penalty
exceptions
in
8
section
421.27,
subsection
2,
paragraphs
“b”
and
“c”
,
shall
not
9
apply
to
a
state
partnership
audit.
10
3.
The
state
partnership
representative
for
the
reviewed
11
year
as
determined
under
section
422.25B
shall
have
the
sole
12
authority
to
act
on
behalf
of
the
partnership
or
pass-through
13
entity
with
respect
to
an
action
required
or
permitted
to
14
be
taken
by
a
partnership
or
pass-through
entity
under
this
15
section,
including
proceedings
under
section
422.28
or
422.29,
16
and
the
partnership’s
or
pass-through
entity’s
direct
partners
17
and
indirect
partners
shall
be
bound
by
those
actions.
18
4.
If
the
department,
the
partnership
or
pass-through
19
entity,
and
the
partnership
or
pass-through
entity
owners
20
agree,
the
provisions
of
this
section
may
be
applied
to
tax
21
years
beginning
before
January
1,
2020.
22
5.
The
department
may
adopt
rules
pursuant
to
chapter
17A
to
23
implement
this
section.
24
Sec.
69.
Section
422.35,
Code
2020,
is
amended
by
adding
the
25
following
new
subsection:
26
NEW
SUBSECTION
.
26.
Any
income
subtracted
from
federal
27
taxable
income
for
an
adjustment
year
pursuant
to
section
6225
28
of
the
Internal
Revenue
Code
and
the
regulations
thereunder
29
shall
be
added
back
in
computing
net
income
for
state
tax
30
purposes
for
the
adjustment
year.
31
Sec.
70.
Section
422.39,
Code
2020,
is
amended
by
striking
32
the
section
and
inserting
in
lieu
thereof
the
following:
33
422.39
Statutes
applicable
to
corporations
and
corporation
34
tax.
35
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All
the
provisions
of
sections
422.24
through
422.27
1
of
division
II,
respecting
payment,
collection,
reporting,
2
examination,
and
assessment,
shall
apply
in
respect
to
a
3
corporation
subject
to
the
provisions
of
this
division
and
to
4
the
tax
due
and
payable
by
a
corporation
taxable
under
this
5
division.
This
includes
but
is
not
limited
to
a
corporation
6
that
is
a
pass-through
entity
as
defined
in
section
422.25A.
7
Sec.
71.
Section
422.73,
Code
2020,
is
amended
by
adding
the
8
following
new
subsection:
9
NEW
SUBSECTION
.
01.
For
purposes
of
this
section,
“federal
10
adjustment”
,
“final
determination
date”
,
and
“final
federal
11
adjustment”
all
mean
the
same
as
defined
in
section
422.25.
12
Sec.
72.
Section
422.73,
subsections
1
and
3,
Code
2020,
are
13
amended
to
read
as
follows:
14
1.
a.
If
it
appears
that
an
amount
of
tax,
penalty,
or
15
interest
has
been
paid
which
was
not
due
under
division
II
,
16
III
or
V
of
this
chapter
,
then
that
amount
shall
be
credited
17
against
any
tax
due
on
the
books
of
the
department
by
the
18
person
who
made
the
excessive
payment,
or
that
amount
shall
be
19
refunded
to
the
person
or
with
the
person’s
approval,
credited
20
to
tax
to
become
due.
A
claim
for
refund
or
credit
that
has
21
not
been
filed
with
the
department
within
three
years
after
22
the
return
upon
which
a
refund
or
credit
claimed
became
due,
23
or
within
one
year
after
the
payment
of
the
tax
upon
which
a
24
refund
or
credit
is
claimed
was
made,
whichever
time
is
the
25
later,
shall
not
be
allowed
by
the
director.
If,
as
a
result
of
26
a
carryback
of
a
net
operating
loss
or
a
net
capital
loss,
the
27
amount
of
tax
in
a
prior
period
is
reduced
and
an
overpayment
28
results,
the
claim
for
refund
or
credit
of
the
overpayment
29
shall
be
filed
with
the
department
within
the
three
years
after
30
the
return
for
the
taxable
year
of
the
net
operating
loss
or
31
net
capital
loss
became
due.
32
b.
Notwithstanding
the
period
of
limitation
specified
in
33
paragraph
“a”
,
the
taxpayer
shall
have
six
months
one
year
from
34
the
day
of
final
disposition
final
determination
date
of
any
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income
tax
matter
between
the
taxpayer
and
the
internal
revenue
1
service
final
federal
adjustment
arising
from
an
internal
2
revenue
service
audit
or
other
similar
action
by
the
internal
3
revenue
service
with
respect
to
the
particular
tax
year
to
4
claim
an
income
tax
refund
or
credit
arising
from
that
final
5
federal
adjustment
.
6
3.
The
department
shall
enter
into
an
agreement
with
the
7
internal
revenue
service
for
the
transmission
of
federal
income
8
tax
reports
on
individuals
required
to
file
an
Iowa
income
tax
9
return
who
have
been
involved
in
an
income
tax
matter
with
the
10
internal
revenue
service.
After
final
disposition
the
final
11
determination
date
of
the
income
tax
matter
that
involves
a
12
final
federal
adjustment
between
the
taxpayer
and
the
internal
13
revenue
service,
the
department
shall
determine
whether
the
14
individual
is
due
a
state
income
tax
refund
as
a
result
of
that
15
final
disposition
of
federal
adjustment
from
such
income
tax
16
matter.
If
the
individual
is
due
a
state
income
tax
refund,
17
the
department
shall
notify
the
individual
within
thirty
days
18
and
request
the
individual
to
file
a
claim
for
refund
or
credit
19
with
the
department.
20
Sec.
73.
APPLICABILITY.
This
division
of
this
Act
applies
21
to
federal
adjustments
and
federal
partnership
adjustments
that
22
have
a
final
determination
date
after
the
effective
date
of
23
this
division
of
this
Act.
24
DIVISION
VII
25
SETOFF
PROCEDURES
——
RULEMAKING
——
EFFECTIVE
DATE
26
Sec.
74.
RULES.
The
following
applies
to
2020
Iowa
Acts,
27
Senate
file
2328
or
House
File
2565,
if
enacted:
28
The
department
of
revenue
shall
adopt
rules
governing
29
setoffs
that
occur
during
the
transition
from
the
department
of
30
administrative
services
to
the
department
of
revenue.
31
Sec.
75.
2020
Iowa
Acts,
Senate
File
2328,
if
enacted,
is
32
amended
by
adding
the
following
new
section:
33
NEW
SECTION
.
Sec.
28.
EFFECTIVE
DATE.
This
Act
takes
34
effect
on
the
later
of
January
1,
2021,
or
the
effective
date
35
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of
the
rules
adopted
by
the
department
of
revenue
pursuant
1
to
chapter
17A
implementing
this
Act
other
than
transitional
2
rules.
3
Sec.
76.
2020
Iowa
Acts,
House
File
2565,
section
28,
if
4
enacted,
is
amended
to
read
as
follows:
5
SEC.
28.
EFFECTIVE
DATE.
This
Act
takes
effect
on
the
6
later
of
January
1,
2021
,
or
the
effective
date
of
the
rules
7
adopted
by
the
department
of
revenue
pursuant
to
chapter
17A
8
implementing
this
Act
other
than
transitional
rules
.
9
Sec.
77.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
10
deemed
of
immediate
importance,
takes
effect
upon
enactment.
11
Sec.
78.
RETROACTIVE
APPLICABILITY.
This
division
of
this
12
Act
applies
retroactively
to
the
effective
date
of
2020
Iowa
13
Acts,
Senate
File
2328
or
House
File
2565,
if
enacted.
14
DIVISION
VIII
15
BUSINESS
INTEREST
EXPENSE
DEDUCTION
AND
GLOBAL
INTANGIBLE
16
LOW-TAXED
INCOME
17
Sec.
79.
Section
422.7,
Code
2020,
is
amended
by
adding
the
18
following
new
subsection:
19
NEW
SUBSECTION
.
59.
a.
Section
163(j)
of
the
Internal
20
Revenue
Code
does
not
apply
in
computing
net
income
for
state
21
tax
purposes.
If
the
taxpayer’s
federal
adjusted
gross
income
22
for
the
tax
year
was
increased
or
decreased
by
reason
of
the
23
application
of
section
163(j)
of
the
Internal
Revenue
Code,
24
the
taxpayer
shall
recompute
net
income
for
state
tax
purposes
25
under
rules
prescribed
by
the
director.
26
b.
Paragraph
“a”
shall
not
apply
during
any
tax
year
27
in
which
the
additional
first-year
depreciation
allowance
28
authorized
in
section
168(k)
of
the
Internal
Revenue
Code
29
applies
in
computing
net
income
for
state
tax
purposes.
30
c.
For
any
tax
year
in
which
paragraph
“a”
does
not
apply,
31
a
taxpayer
shall
not
be
permitted
to
deduct
any
amount
of
32
interest
expense
paid
or
accrued
in
a
previous
taxable
year
33
that
is
allowed
as
a
deduction
in
the
current
taxable
year
by
34
reason
of
the
carryforward
of
disallowed
business
interest
35
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provisions
of
section
163(j)(2)
of
the
Internal
Revenue
Code,
1
if
either
of
the
following
apply:
2
(1)
The
interest
expense
was
originally
paid
or
accrued
3
during
a
tax
year
in
which
paragraph
“a”
applied.
4
(2)
The
interest
expense
was
originally
paid
or
accrued
5
during
a
tax
year
in
which
the
taxpayer
was
not
required
to
6
file
an
Iowa
return.
7
Sec.
80.
Section
422.35,
Code
2020,
is
amended
by
adding
the
8
following
new
subsections:
9
NEW
SUBSECTION
.
26.
a.
Section
163(j)
of
the
Internal
10
Revenue
Code
does
not
apply
in
computing
net
income
for
state
11
tax
purposes.
If
the
taxpayer’s
federal
taxable
income
for
12
the
tax
year
was
increased
or
decreased
by
reason
of
the
13
application
of
section
163(j)
of
the
Internal
Revenue
Code,
14
the
taxpayer
shall
recompute
net
income
for
state
tax
purposes
15
under
rules
prescribed
by
the
director.
16
b.
Paragraph
“a”
shall
not
apply
during
any
tax
year
17
in
which
the
additional
first-year
depreciation
allowance
18
authorized
in
section
168(k)
of
the
Internal
Revenue
Code
19
applies
in
computing
net
income
for
state
tax
purposes.
20
c.
For
any
tax
year
in
which
paragraph
“a”
does
not
apply,
21
a
taxpayer
shall
not
be
permitted
to
deduct
any
amount
of
22
interest
expense
paid
or
accrued
in
a
previous
taxable
year
23
that
is
allowed
as
a
deduction
in
the
current
taxable
year
by
24
reason
of
the
carryforward
of
disallowed
business
interest
25
provisions
of
section
163(j)(2)
of
the
Internal
Revenue
Code,
26
if
either
of
the
following
apply:
27
(1)
The
interest
expense
was
originally
paid
or
accrued
28
during
a
tax
year
in
which
paragraph
“a”
applied.
29
(2)
The
interest
expense
was
originally
paid
or
accrued
30
during
a
tax
year
in
which
the
taxpayer
was
not
required
to
31
file
an
Iowa
return.
32
NEW
SUBSECTION
.
27.
Subtract,
to
the
extent
included,
33
global
intangible
low-taxed
income
under
section
951A
of
the
34
Internal
Revenue
Code.
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Sec.
81.
RESCISSION
OF
ADMINISTRATIVE
RULES.
1
1.
Contingent
upon
the
enactment
of
the
section
of
this
2
Act
amending
section
422.35,
subsection
27,
the
following
Iowa
3
administrative
rules
are
rescinded:
4
a.
701
Iowa
administrative
code,
rule
54.2,
subrule
3,
5
paragraph
“i”.
6
b.
701
Iowa
administrative
code,
rule
59.28,
subrule
2,
7
paragraph
“p”.
8
2.
As
soon
as
practicable,
the
Iowa
administrative
code
9
editor
shall
remove
the
language
of
the
Iowa
administrative
10
rules
referenced
in
subsection
1
of
this
section
from
the
Iowa
11
administrative
code.
12
Sec.
82.
EFFECTIVE
DATE.
This
Act,
being
deemed
of
13
immediate
importance,
takes
effect
upon
enactment.
14
Sec.
83.
RETROACTIVE
APPLICABILITY.
The
following
applies
15
retroactively
to
January
1,
2019,
for
tax
years
beginning
on
16
or
after
that
date:
17
The
portion
of
the
section
of
this
division
of
this
Act
18
enacting
section
422.35,
subsection
27.
19
Sec.
84.
RETROACTIVE
APPLICABILITY.
The
following
apply
20
retroactively
to
January
1,
2020
for
tax
years
beginning
on
or
21
after
that
date:
22
1.
The
section
of
this
division
of
this
Act
enacting
section
23
422.7,
subsection
59.
24
2.
The
portion
of
the
section
of
this
division
of
this
Act
25
enacting
section
422.35,
subsection
26.
26
DIVISION
IX
27
IOWA
REINVESTMENT
ACT
28
Sec.
85.
Section
15J.2,
subsections
4,
7,
8,
and
9,
Code
29
2020,
are
amended
to
read
as
follows:
30
4.
“District”
means
the
area
within
a
municipality
that
is
31
designated
a
reinvestment
district
pursuant
to
section
15J.4
.
32
7.
“Municipality”
means
a
county
or
an
incorporated
city.
33
any
of
the
following:
34
a.
A
county.
35
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b.
An
incorporated
city.
1
c.
A
joint
board
or
other
legal
entity
established
or
2
designated
in
an
agreement
between
two
or
more
contiguous
3
municipalities
identified
in
paragraph
“a”
or
“b”
pursuant
to
4
chapter
28E.
5
8.
a.
“New
lessor”
means
a
lessor,
as
defined
in
section
6
423A.2
,
operating
a
business
in
the
district
that
was
not
in
7
operation
in
the
area
of
the
district
before
the
effective
8
date
of
the
ordinance
or
resolution
establishing
the
district,
9
regardless
of
ownership.
10
b.
“New
lessor”
also
includes
any
lessor,
defined
in
section
11
423A.2
,
operating
a
business
in
the
district
if
the
place
of
12
business
for
that
business
is
the
subject
of
a
project
that
was
13
approved
by
the
board.
14
9.
a.
“New
retail
establishment”
means
a
business
operated
15
in
the
district
by
a
retailer,
as
defined
in
section
423.1
,
16
that
was
not
in
operation
in
the
area
of
the
district
before
17
the
effective
date
of
the
ordinance
or
resolution
establishing
18
the
district,
regardless
of
ownership.
19
b.
“New
retail
establishment”
also
includes
any
business
20
operated
in
the
district
by
a
retailer,
as
defined
in
section
21
423.1
,
if
the
place
of
business
for
that
retail
establishment
22
is
the
subject
of
a
project
that
was
approved
by
the
board.
23
Sec.
86.
Section
15J.4,
subsection
1,
unnumbered
paragraph
24
1,
Code
2020,
is
amended
to
read
as
follows:
25
A
municipality
that
has
an
area
suitable
for
development
26
within
the
boundaries
of
the
municipality
or
within
the
27
combined
boundaries
of
a
municipality
under
section
15J.2,
28
subsection
7,
paragraph
“c”
,
is
eligible
to
seek
approval
from
29
the
board
to
establish
a
reinvestment
district
under
this
30
section
consisting
of
the
area
suitable
for
development.
To
31
be
designated
a
reinvestment
district,
an
area
shall
meet
the
32
following
requirements:
33
Sec.
87.
Section
15J.4,
subsection
1,
paragraphs
c
and
d,
34
Code
2020,
are
amended
to
read
as
follows:
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c.
The
For
districts
approved
before
July
1,
2018,
the
area
1
consists
of
contiguous
parcels
and
does
not
exceed
twenty-five
2
acres
in
total.
For
districts
approved
on
or
after
July
1,
3
2020,
the
area
consists
of
contiguous
parcels
and
does
not
4
exceed
seventy-five
acres
in
total.
5
d.
For
a
municipality
that
is
a
city
or
for
a
city
that
6
is
party
to
an
agreement
under
section
15J.2,
subsection
7,
7
paragraph
“c”
,
the
area
does
not
include
the
entire
incorporated
8
area
of
the
city.
9
Sec.
88.
Section
15J.4,
subsection
3,
paragraph
a,
Code
10
2020,
is
amended
to
read
as
follows:
11
a.
The
municipality
shall
submit
a
copy
of
the
resolution,
12
the
proposed
district
plan,
and
all
accompanying
materials
13
adopted
pursuant
to
this
section
to
the
board
for
evaluation.
14
The
board
shall
not
approve
a
proposed
district
plan
on
or
15
after
July
1,
2018
2025
.
16
Sec.
89.
Section
15J.4,
subsection
3,
paragraph
b,
17
subparagraph
(6),
Code
2020,
is
amended
to
read
as
follows:
18
(6)
The
amount
of
proposed
capital
investment
within
the
19
proposed
district
related
to
retail
businesses
in
the
proposed
20
district
does
not
exceed
fifty
percent
of
the
total
capital
21
investment
for
all
proposed
projects
in
the
proposed
district
22
plan.
For
the
purposes
of
this
subparagraph,
“retail
business”
23
means
any
business
engaged
in
the
business
of
selling
tangible
24
personal
property
or
taxable
services
at
retail
in
this
state
25
that
is
obligated
to
collect
state
sales
or
use
tax
under
26
chapter
423
.
However,
for
the
purposes
of
this
subparagraph,
27
“retail
business”
does
not
include
a
new
lessor
or
a
business
28
engaged
in
an
activity
subject
to
tax
under
section
423.2,
29
subsection
3
.
30
Sec.
90.
Section
15J.4,
subsection
3,
paragraph
f,
Code
31
2020,
is
amended
to
read
as
follows:
32
f.
(1)
The
total
aggregate
amount
of
state
sales
tax
33
revenues
and
state
hotel
and
motel
tax
revenues
that
may
be
34
approved
by
the
board
for
remittance
to
all
municipalities
and
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that
may
be
transferred
to
the
state
reinvestment
district
1
fund
under
section
423.2A
or
423A.6
,
and
remitted
to
all
2
municipalities
having
a
reinvestment
district
under
this
3
chapter
for
districts
approved
by
the
board
before
July
1,
4
2018,
shall
not
exceed
one
hundred
million
dollars.
5
(2)
The
total
aggregate
amount
of
state
sales
tax
revenues
6
and
state
hotel
and
motel
tax
revenues
that
may
be
approved
by
7
the
board
for
remittance
to
all
municipalities
and
that
may
8
be
transferred
to
the
state
reinvestment
district
fund
under
9
section
423.2A
or
423A.6,
and
remitted
to
all
municipalities
10
having
a
reinvestment
district
under
this
chapter
for
districts
11
approved
on
or
after
July
1,
2020,
but
before
July
1,
2025,
12
shall
not
exceed
one
hundred
million
dollars.
13
Sec.
91.
Section
15J.4,
subsections
4
and
5,
Code
2020,
are
14
amended
to
read
as
follows:
15
4.
a.
Upon
receiving
the
approval
of
the
board,
the
16
municipality
may
shall
adopt
an
ordinance
,
or
in
the
case
of
17
a
municipality
under
section
15J.2,
subsection
7,
paragraph
18
“c”
,
a
resolution,
establishing
the
district
and
shall
notify
19
the
director
of
revenue
of
the
district’s
commencement
date
20
established
by
the
board
and
the
information
required
under
21
paragraph
“b”
no
later
than
thirty
days
after
adoption
of
the
22
ordinance
or
resolution
.
23
b.
For
each
district
approved
by
the
board
on
or
after
July
24
1,
2020,
the
municipality
shall
include
in
the
notification
25
under
paragraph
“a”
and
in
the
statement
required
under
26
paragraph
“c”
all
of
the
following:
27
(1)
For
each
new
retail
establishment
under
section
15J.2,
28
subsection
9,
paragraph
“b”
,
that
was
in
operation
before
29
the
establishment
of
the
district,
the
monthly
amount
of
30
sales
subject
to
the
state
sales
tax
from
the
most
recently
31
available
twelve-month
period
preceding
the
establishment
of
32
the
district.
33
(2)
For
each
new
lessor
under
section
15J.2,
subsection
8,
34
paragraph
“b”
,
that
was
in
operation
before
the
establishment
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of
the
district,
the
monthly
amount
of
sales
subject
to
the
1
state
hotel
and
motel
tax
from
the
most
recently
available
2
twelve-month
period
preceding
the
establishment
of
the
3
district.
4
c.
The
ordinance
or
resolution
adopted
by
the
municipality
5
shall
include
the
district’s
commencement
date
and
a
detailed
6
statement
of
the
manner
in
which
the
approved
projects
to
be
7
undertaken
in
the
district
will
be
financed,
including
but
not
8
limited
to
the
financial
information
included
in
the
project
9
plan
under
subsection
2
,
paragraph
“d”
.
10
d.
Following
establishment
of
the
district,
a
municipality
11
may
use
the
moneys
deposited
in
the
municipality’s
reinvestment
12
project
fund
created
pursuant
to
section
15J.7
to
fund
the
13
development
of
those
projects
included
within
the
district
14
plan.
15
5.
A
municipality
may
amend
the
district
plan
to
add
16
or
modify
projects.
However,
a
proposed
modification
to
a
17
project
and
each
project
proposed
to
be
added
shall
first
be
18
approved
by
the
board
in
the
same
manner
as
provided
for
the
19
original
plan.
In
no
case,
however,
shall
an
amendment
to
the
20
district
plan
result
in
the
extension
of
the
commencement
date
21
established
by
the
board.
If
a
district
plan
is
amended
to
22
add
or
modify
a
project,
the
municipality
shall
,
if
necessary,
23
amend
the
ordinance
or
resolution,
as
applicable
,
if
necessary,
24
to
reflect
any
changes
to
the
financial
information
required
to
25
be
included
under
subsection
4
.
26
Sec.
92.
Section
15J.5,
subsection
1,
paragraph
b,
Code
27
2020,
is
amended
to
read
as
follows:
28
b.
(1)
The
For
districts
established
before
July
1,
29
2020,
the
amount
of
new
state
sales
tax
revenue
for
purposes
30
of
paragraph
“a”
shall
be
the
product
of
the
amount
of
sales
31
subject
to
the
state
sales
tax
in
the
district
during
the
32
quarter
from
new
retail
establishments
times
four
percent.
33
(2)
For
districts
established
on
or
after
July
1,
2020,
the
34
amount
of
new
state
sales
tax
revenue
for
purposes
of
paragraph
35
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“a”
shall
be
the
product
of
four
percent
times
the
remainder
of
1
amount
of
sales
subject
to
the
state
sales
tax
in
the
district
2
during
the
quarter
from
new
retail
establishments
minus
the
sum
3
of
the
sales
from
the
corresponding
quarter
of
the
twelve-month
4
period
determined
under
section
15J.4,
subsection
4,
paragraph
5
“b”
,
subparagraph
(1),
for
new
retail
establishments
identified
6
under
section
15J.4,
subsection
4,
paragraph
“b”
,
subparagraph
7
(1),
that
were
in
operation
at
the
end
of
the
quarter.
8
Sec.
93.
Section
15J.5,
subsection
2,
paragraph
b,
Code
9
2020,
is
amended
to
read
as
follows:
10
b.
(1)
The
For
districts
established
before
July
1,
11
2020,
the
amount
of
new
state
hotel
and
motel
tax
revenue
for
12
purposes
of
paragraph
“a”
shall
be
the
product
of
the
amount
of
13
sales
subject
to
the
state
hotel
and
motel
tax
in
the
district
14
during
the
quarter
from
new
lessors
times
the
state
hotel
and
15
motel
tax
rate
imposed
under
section
423A.3
.
16
(2)
For
districts
established
on
or
after
July
1,
2020,
the
17
amount
of
new
state
hotel
and
motel
tax
revenue
for
purposes
of
18
paragraph
“a”
shall
be
the
product
of
the
state
hotel
and
motel
19
tax
rate
imposed
under
section
423A.3
times
the
remainder
of
20
amount
of
sales
subject
to
the
state
hotel
and
motel
tax
in
the
21
district
during
the
quarter
from
new
lessors
minus
the
sum
of
22
the
sales
from
the
corresponding
quarter
of
the
twelve
month
23
period
determined
under
section
15J.4,
subsection
4,
paragraph
24
“b”
,
subparagraph
(2),
for
new
lessors
identified
under
section
25
15J.4,
subsection
4,
paragraph
“b”
,
subparagraph
(2),
that
were
26
in
operation
at
the
end
of
the
quarter.
27
Sec.
94.
Section
15J.7,
subsection
4,
paragraph
b,
Code
28
2020,
is
amended
to
read
as
follows:
29
b.
For
the
purposes
of
this
subsection
,
“relocation”
30
means
the
closure
or
substantial
reduction
of
an
enterprise’s
31
existing
operations
in
one
area
of
the
state
and
the
initiation
32
of
substantially
the
same
operation
in
the
same
county
or
a
33
contiguous
county
in
the
state.
However,
if
the
initiation
34
of
operations
includes
an
expanded
scope
or
nature
of
the
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enterprise’s
existing
operations,
the
new
operation
shall
1
not
be
considered
to
be
substantially
the
same
operation.
2
“Relocation”
does
not
include
an
enterprise
expanding
its
3
operations
in
another
area
of
the
state
provided
that
existing
4
operations
of
a
similar
nature
are
not
closed
or
substantially
5
reduced.
6
Sec.
95.
Section
15J.7,
subsection
6,
Code
2020,
is
amended
7
to
read
as
follows:
8
6.
Upon
dissolution
of
a
district
pursuant
to
section
15J.8
,
9
moneys
remaining
in
the
reinvestment
project
fund
that
were
10
deposited
pursuant
to
subsection
2
and
all
interest
remaining
11
in
the
fund
that
was
earned
on
such
amounts
shall
be
deposited
12
in
the
general
fund
of
the
municipality
or,
for
a
municipality
13
under
section
15J.2,
subsection
7,
paragraph
“c”
,
the
governing
14
body
shall
allocate
such
amounts
to
the
participating
cities
15
and
counties
for
deposit
in
each
city
or
county
general
fund
16
according
to
the
chapter
28E
agreement
.
17
Sec.
96.
Section
15J.8,
Code
2020,
is
amended
to
read
as
18
follows:
19
15J.8
End
of
deposits
——
district
dissolution.
20
1.
As
of
the
date
twenty
years
after
the
district’s
21
commencement
date,
the
department
shall
cease
to
deposit
state
22
sales
tax
revenues
and
state
hotel
and
motel
tax
revenues
into
23
the
district’s
account
within
the
fund,
unless
the
municipality
24
dissolves
the
district
by
ordinance
or
resolution
prior
to
that
25
date.
Following
the
expiration
of
the
twenty-year
period,
the
26
district
shall
be
dissolved
by
ordinance
or
resolution
of
the
27
municipality
adopted
within
twelve
months
of
the
conclusion
of
28
the
twenty-year
period.
29
2.
If
the
municipality
dissolves
the
district
by
ordinance
30
or
resolution
prior
to
the
expiration
of
the
twenty-year
31
period
specified
in
subsection
1
,
the
municipality
shall
32
notify
the
director
of
revenue
of
the
dissolution
as
soon
as
33
practicable
after
adoption
of
the
ordinance
or
resolution
,
and
34
the
department
shall,
as
of
the
effective
date
of
dissolution,
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cease
to
deposit
state
sales
tax
revenues
and
state
hotel
and
1
motel
tax
revenues
into
the
district’s
account
within
the
fund.
2
3.
Upon
request
of
the
municipality
prior
to
the
dissolution
3
of
the
district,
and
following
a
determination
by
the
board
4
that
the
amounts
of
new
state
sales
tax
revenue
and
new
state
5
hotel
and
motel
tax
revenue
deposited
in
the
municipality’s
6
reinvestment
project
fund
under
section
15J.7
are
substantially
7
lower
than
the
amounts
established
by
the
board
under
section
8
15J.4,
subsection
3,
paragraph
“e”
,
the
board
may
extend
9
the
district’s
twenty-year
period
of
time
for
depositing
and
10
receiving
revenues
under
this
chapter
by
up
to
five
additional
11
years
if
such
an
extension
is
in
the
best
interest
of
the
12
public.
13
DIVISION
X
14
COMPUTER
PERIPHERALS
15
Sec.
97.
Section
423.1,
Code
2020,
is
amended
by
adding
the
16
following
new
subsection:
17
NEW
SUBSECTION
.
10A.
“Computer
peripheral”
means
an
18
ancillary
device
connected
to
the
computer
digitally,
by
19
cable,
or
by
other
medium,
used
to
put
information
into
or
get
20
information
out
of
a
computer.
21
Sec.
98.
Section
423.3,
subsection
47,
Code
2020,
is
amended
22
to
read
as
follows:
23
47.
a.
The
sales
price
from
the
sale
or
rental
of
24
computers,
computer
peripherals,
machinery,
equipment,
25
replacement
parts,
supplies,
and
materials
used
to
construct
26
or
self-construct
computers,
computer
peripherals,
machinery,
27
equipment,
replacement
parts,
and
supplies,
if
such
items
are
28
any
of
the
following:
29
(1)
Directly
and
primarily
used
in
processing
by
a
30
manufacturer.
31
(2)
Directly
and
primarily
used
to
maintain
the
integrity
32
of
the
product
or
to
maintain
unique
environmental
conditions
33
required
for
either
the
product
or
the
computers,
computer
34
peripherals,
machinery,
and
equipment
used
in
processing
by
a
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manufacturer,
including
test
equipment
used
to
control
quality
1
and
specifications
of
the
product.
2
(3)
Directly
and
primarily
used
in
research
and
development
3
of
new
products
or
processes
of
processing.
4
(4)
Computers
and
computer
peripherals
used
in
processing
5
or
storage
of
data
or
information
by
an
insurance
company,
6
financial
institution,
or
commercial
enterprise.
7
(5)
Directly
and
primarily
used
in
recycling
or
8
reprocessing
of
waste
products.
9
(6)
Pollution-control
equipment
used
by
a
manufacturer,
10
including
but
not
limited
to
that
required
or
certified
by
an
11
agency
of
this
state
or
of
the
United
States
government.
12
b.
The
sales
price
from
the
sale
of
fuel
used
in
creating
13
heat,
power,
steam,
or
for
generating
electrical
current,
or
14
from
the
sale
of
electricity,
consumed
by
computers,
computer
15
peripherals,
machinery,
or
equipment
used
in
an
exempt
manner
16
described
in
paragraph
“a”
,
subparagraph
(1),
(2),
(3),
(5),
or
17
(6).
18
c.
The
sales
price
from
the
sale
or
rental
of
the
following
19
shall
not
be
exempt
from
the
tax
imposed
by
this
subchapter
:
20
(1)
Hand
tools.
21
(2)
Point-of-sale
equipment
,
and
computers
,
and
computer
22
peripherals
.
23
(3)
The
following
within
the
scope
of
section
427A.1,
24
subsection
1
,
paragraphs
“h”
and
“i”
:
25
(a)
Computers.
26
(b)
Computer
peripherals.
27
(b)
(c)
Machinery.
28
(c)
(d)
Equipment,
including
pollution
control
equipment.
29
(d)
(e)
Replacement
parts.
30
(e)
(f)
Supplies.
31
(f)
(g)
Materials
used
to
construct
or
self-construct
the
32
following:
33
(i)
Computers.
34
(ii)
Computer
peripherals.
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(ii)
(iii)
Machinery.
1
(iii)
(iv)
Equipment,
including
pollution
control
2
equipment.
3
(iv)
(v)
Replacement
parts.
4
(v)
(vi)
Supplies.
5
(4)
Vehicles
subject
to
registration,
except
vehicles
6
subject
to
registration
which
are
directly
and
primarily
used
7
in
recycling
or
reprocessing
of
waste
products.
8
d.
As
used
in
this
subsection
:
9
(1)
“Commercial
enterprise”
means
businesses
and
10
manufacturers
conducted
for
profit,
for-profit
and
nonprofit
11
insurance
companies,
and
for-profit
and
nonprofit
financial
12
institutions,
but
excludes
other
nonprofits
and
professions
and
13
occupations.
14
(2)
“Financial
institution”
means
as
defined
in
section
15
527.2
.
16
(3)
“Insurance
company”
means
an
insurer
organized
or
17
operating
under
chapter
508
,
514
,
515
,
518
,
518A
,
519
,
or
18
520
,
or
authorized
to
do
business
in
Iowa
as
an
insurer
or
an
19
insurance
producer
under
chapter
522B
.
20
(4)
(a)
“Manufacturer”
means
a
business
that
primarily
21
purchases,
receives,
or
holds
personal
property
of
any
22
description
for
the
purpose
of
adding
to
its
value
by
a
process
23
of
manufacturing
with
a
view
to
selling
the
property
for
gain
24
or
profit.
25
(b)
“Manufacturer”
includes
contract
manufacturers.
A
26
contract
manufacturer
is
a
manufacturer
that
otherwise
falls
27
within
the
definition
of
manufacturer,
except
that
a
contract
28
manufacturer
does
not
sell
the
tangible
personal
property
29
the
contract
manufacturer
processes
on
behalf
of
other
30
manufacturers.
31
(c)
“Manufacturer”
does
not
include
persons
who
are
not
32
commonly
understood
as
manufacturers,
including
but
not
33
limited
to
persons
primarily
engaged
in
any
of
the
following
34
activities:
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(i)
Construction
contracting.
1
(ii)
Repairing
tangible
personal
property
or
real
property.
2
(iii)
Providing
health
care.
3
(iv)
Farming,
including
cultivating
agricultural
products
4
and
raising
livestock.
5
(v)
Transporting
for
hire.
6
(d)
For
purposes
of
this
subparagraph:
7
(i)
“Business”
means
those
businesses
conducted
for
8
profit,
but
excludes
professions
and
occupations
and
nonprofit
9
organizations.
10
(ii)
“Manufacturing”
means
those
activities
commonly
11
understood
within
the
ordinary
meaning
of
the
term,
and
shall
12
include:
13
(A)
Refining.
14
(B)
Purifying.
15
(C)
Combining
of
different
materials.
16
(D)
Packing
of
meats.
17
(E)
Activities
subsequent
to
the
extractive
process
of
18
quarrying
or
mining,
such
as
crushing,
washing,
sizing,
or
19
blending
of
aggregate
materials.
20
(iii)
“Manufacturing”
does
not
include
activities
occurring
21
on
premises
primarily
used
to
make
retail
sales.
22
(5)
“Processing”
means
a
series
of
operations
in
which
23
materials
are
manufactured,
refined,
purified,
created,
24
combined,
or
transformed
by
a
manufacturer,
ultimately
25
into
tangible
personal
property.
Processing
encompasses
26
all
activities
commencing
with
the
receipt
or
producing
of
27
raw
materials
by
the
manufacturer
and
ending
at
the
point
28
products
are
delivered
for
shipment
or
transferred
from
the
29
manufacturer.
Processing
includes
but
is
not
limited
to
30
refinement
or
purification
of
materials;
treatment
of
materials
31
to
change
their
form,
context,
or
condition;
maintenance
32
of
the
quality
or
integrity
of
materials,
components,
or
33
products;
maintenance
of
environmental
conditions
necessary
for
34
materials,
components,
or
products;
quality
control
activities;
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and
construction
of
packaging
and
shipping
devices,
placement
1
into
shipping
containers
or
any
type
of
shipping
devices
or
2
medium,
and
the
movement
of
materials,
components,
or
products
3
until
shipment
from
the
processor.
4
(6)
“Receipt
or
producing
of
raw
materials”
means
activities
5
performed
upon
tangible
personal
property
only.
With
respect
6
to
raw
materials
produced
from
or
upon
real
estate,
the
receipt
7
or
producing
of
raw
materials
is
deemed
to
occur
immediately
8
following
the
severance
of
the
raw
materials
from
the
real
9
estate.
10
(7)
“Replacement
part”
means
tangible
personal
property
11
other
than
computers,
computer
peripherals,
machinery,
12
equipment,
or
supplies,
regardless
of
the
cost
or
useful
life
13
of
the
tangible
personal
property,
that
meets
all
of
the
14
following
conditions:
15
(a)
The
tangible
personal
property
replaces
a
component
of
16
a
computer,
computer
peripheral,
machinery,
or
equipment,
which
17
component
is
capable
of
being
separated
from
the
computer,
18
computer
peripheral,
machinery,
or
equipment.
19
(b)
The
tangible
personal
property
performs
the
same
or
20
similar
function
as
the
component
it
replaced.
21
(c)
The
tangible
personal
property
restores
the
computer,
22
computer
peripheral,
machinery,
or
equipment
to
an
operational
23
condition,
or
upgrades
or
improves
the
efficiency
of
the
24
computer,
computer
peripheral,
machinery,
or
equipment.
25
(8)
“Supplies”
means
tangible
personal
property,
other
26
than
computers,
computer
peripherals,
machinery,
equipment,
or
27
replacement
parts,
that
meets
one
of
the
following
conditions:
28
(a)
The
tangible
personal
property
is
to
be
connected
to
29
a
computer,
computer
peripheral,
machinery,
or
equipment
and
30
requires
regular
replacement
because
the
property
is
consumed
31
or
deteriorates
during
use,
including
but
not
limited
to
saw
32
blades,
drill
bits,
filters,
and
other
similar
items
with
a
33
short
useful
life.
34
(b)
The
tangible
personal
property
is
used
in
conjunction
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with
a
computer,
computer
peripheral,
machinery,
or
equipment
1
and
is
specially
designed
for
use
in
manufacturing
specific
2
products
and
may
be
used
interchangeably
and
intermittently
on
3
a
particular
computer,
computer
peripheral,
machine,
or
piece
4
of
equipment,
including
but
not
limited
to
jigs,
dies,
tools,
5
and
other
similar
items.
6
(c)
The
tangible
personal
property
comes
into
physical
7
contact
with
other
tangible
personal
property
used
in
8
processing
and
is
used
to
assist
with
or
maintain
conditions
9
necessary
for
processing,
including
but
not
limited
to
cutting
10
fluids,
oils,
coolants,
lubricants,
and
other
similar
items
11
with
a
short
useful
life.
12
(d)
The
tangible
personal
property
is
directly
and
13
primarily
used
in
an
activity
described
in
paragraph
“a”
,
14
subparagraphs
(1)
through
(6),
including
but
not
limited
to
15
prototype
materials
and
testing
materials.
16
Sec.
99.
RESCISSION
OF
ADMINISTRATIVE
RULES.
17
1.
The
following
Iowa
administrative
rules
are
rescinded
as
18
of
July
1,
2020:
19
a.
701
Iowa
administrative
code,
rule
18.34,
subrule
1,
20
paragraph
“b”,
subparagraph
(1).
21
b.
701
Iowa
administrative
code,
rule
18.45,
subrule
1,
22
definition
of
“computer”.
23
c.
701
Iowa
administrative
code,
rule
18.58,
subrule
1,
24
definition
of
“computer”.
25
d.
701
Iowa
administrative
code,
rule
230.14,
subrule
2,
26
paragraph
“a”.
27
2.
As
soon
as
practicable
after
July
1,
2020,
the
Iowa
28
administrative
code
editor
shall
remove
the
language
of
the
29
Iowa
administrative
rules
referenced
in
subsection
1
of
this
30
section
from
the
Iowa
administrative
code.
31
DIVISION
XI
32
SCHOOL
TUITION
ORGANIZATION
TAX
CREDIT
——
CORPORATIONS
33
Sec.
100.
Section
422.33,
subsection
28,
Code
2020,
is
34
amended
to
read
as
follows:
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28.
The
taxes
imposed
under
this
division
shall
be
reduced
1
by
a
school
tuition
organization
tax
credit
allowed
under
2
section
422.11S
.
The
maximum
amount
of
tax
credits
that
3
may
be
approved
under
this
subsection
for
a
tax
year
equals
4
twenty-five
percent
of
the
school
tuition
organization’s
tax
5
credits
that
may
be
approved
pursuant
to
section
422.11S,
6
subsection
8
,
for
a
tax
year.
7
DIVISION
XII
8
BROADBAND
INFRASTRUCTURE
TAXATION
9
Sec.
101.
Section
422.7,
Code
2020,
is
amended
by
adding
the
10
following
new
subsection:
11
NEW
SUBSECTION
.
18.
a.
Subtract,
to
the
extent
included,
12
the
amount
of
a
federal,
state,
or
local
grant
provided
to
13
a
communications
service
provider,
if
the
grant
is
used
to
14
install
broadband
infrastructure
that
facilitates
broadband
15
service
in
targeted
service
areas
at
or
above
the
download
and
16
upload
speeds.
17
b.
As
used
in
this
subsection,
“broadband
infrastructure”
,
18
“communications
service
provider”
,
and
“targeted
service
area”
19
mean
the
same
as
defined
in
section
8B.1,
respectively.
20
Sec.
102.
Section
422.35,
Code
2020,
is
amended
by
adding
21
the
following
new
subsection:
22
NEW
SUBSECTION
.
26.
a.
Subtract,
to
the
extent
included,
23
the
amount
of
a
federal,
state,
or
local
grant
provided
to
24
a
communications
service
provider,
if
the
grant
is
used
to
25
install
broadband
infrastructure
that
facilitates
broadband
26
service
in
targeted
service
areas
at
or
above
the
download
and
27
upload
speeds.
28
b.
As
used
in
this
subsection,
“broadband
infrastructure”
,
29
“communications
service
provider”
,
and
“targeted
service
area”
30
mean
the
same
as
defined
in
section
8B.1,
respectively.
31
Sec.
103.
REFUNDS.
Refunds
of
taxes,
interest,
or
penalties
32
that
arise
from
claims
resulting
from
the
enactment
of
this
33
division
of
this
Act,
in
the
tax
year
beginning
January
34
1,
2019,
but
before
January
1,
2020,
shall
not
be
allowed
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unless
refund
claims
are
filed
prior
to
October
1,
2020,
1
notwithstanding
any
other
provision
of
law
to
the
contrary.
2
Sec.
104.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
3
deemed
of
immediate
importance,
takes
effect
upon
enactment.
4
Sec.
105.
RETROACTIVE
APPLICABILITY.
This
division
of
this
5
Act
applies
retroactively
to
January
1,
2019,
and
applies
to
6
tax
years
beginning
on
or
after
that
date.
7
DIVISION
XIII
8
LOCAL
ASSESSORS
9
Sec.
106.
Section
441.6,
subsection
2,
Code
2020,
is
amended
10
to
read
as
follows:
11
2.
Upon
receipt
of
the
report
of
the
examining
board,
the
12
chairperson
of
the
conference
board
shall
by
written
notice
13
call
a
meeting
of
the
conference
board
to
appoint
an
assessor.
14
The
meeting
shall
be
held
not
later
than
seven
days
after
the
15
receipt
of
the
report
of
the
examining
board
by
the
conference
16
board.
At
the
meeting,
the
conference
board
shall
appoint
an
17
assessor
from
the
register
of
eligible
candidates.
However,
18
if
a
special
examination
has
not
been
conducted
previously
for
19
the
same
vacancy,
the
conference
board
may
request
the
director
20
of
revenue
to
hold
a
special
examination
pursuant
to
section
21
441.7
.
The
chairperson
of
the
conference
board
shall
give
22
written
notice
to
the
director
of
revenue
of
the
appointment
23
and
its
effective
date
within
ten
days
of
the
decision
of
the
24
board.
25
Sec.
107.
Section
441.6,
Code
2020,
is
amended
by
adding
the
26
following
new
subsection:
27
NEW
SUBSECTION
.
3.
The
appointee
selected
by
the
conference
28
board
under
subsection
2
shall
not
assume
the
office
of
city
29
or
county
assessor
until
such
appointment
is
confirmed
by
30
the
director
of
revenue.
If
the
director
of
revenue
rejects
31
the
appointment,
the
examining
board
shall
conduct
a
new
32
examination
and
submit
a
new
report
to
the
conference
board
33
under
subsection
1.
The
director
of
revenue
shall
adopt
rules
34
pursuant
to
chapter
17A
to
implement
and
administer
this
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subsection.
1
Sec.
108.
Section
441.17,
subsection
2,
Code
2020,
is
2
amended
to
read
as
follows:
3
2.
Cause
to
be
assessed,
in
accordance
with
section
441.21
,
4
all
the
property
in
the
assessor’s
county
or
city,
except
5
property
exempt
from
taxation,
or
the
assessment
of
which
is
6
otherwise
provided
for
by
law.
However,
an
assessor
or
deputy
7
assessor
shall
not
personally
assess
a
property
if
the
person
8
or
a
member
of
the
person’s
immediate
family
owns
the
property,
9
has
a
financial
interest
in
the
property,
or
has
a
financial
10
interest
in
the
entity
that
owns
the
property.
The
director
of
11
revenue
shall
adopt
rules
pursuant
to
chapter
17A
to
implement
12
and
administer
this
subsection.
13
Sec.
109.
Section
441.41,
Code
2020,
is
amended
to
read
as
14
follows:
15
441.41
Legal
counsel.
16
In
the
case
of
cities
having
an
assessor,
the
city
legal
17
department
shall
represent
the
assessor
and
board
of
review
18
in
all
litigation
dealing
with
assessments.
In
the
case
of
19
counties,
the
county
attorney
shall
represent
the
assessor
and
20
board
of
review
in
all
litigation
dealing
with
assessments.
21
Any
taxing
district
interested
in
the
taxes
received
from
such
22
assessments
may
be
represented
by
an
attorney
and
shall
be
23
required
to
appear
by
attorney
upon
written
request
of
the
24
assessor
to
the
presiding
officer
of
any
such
taxing
district.
25
The
Subject
to
review
and
prior
approval
by
either
the
city
26
legal
department
in
the
case
of
a
city
or
the
county
attorney
27
in
the
case
of
a
county,
the
conference
board
may
employ
28
special
counsel
to
assist
the
city
legal
department
or
county
29
attorney
as
the
case
may
be.
30
DIVISION
XIV
31
PAYCHECK
PROTECTION
PROGRAM
(PPP)
32
Sec.
110.
IOWA
NET
INCOME
EXCLUSION
FOR
FEDERAL
PAYCHECK
33
PROTECTION
PROGRAM
LOAN
FORGIVENESS
FOR
CERTAIN
FISCAL-YEAR
34
FILERS
IN
TAX
YEAR
2019.
Notwithstanding
any
other
provision
35
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of
law
to
the
contrary,
for
any
tax
year
beginning
on
or
after
1
January
1,
2019,
and
ending
after
March
27,
2020,
Pub.
L.
No.
2
116-136,
§1106(i),
applies
in
computing
net
income
for
state
3
tax
purposes
under
section
422.7
or
422.35.
4
Sec.
111.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
5
deemed
of
immediate
importance,
takes
effect
upon
enactment.
6
DIVISION
XV
7
FOOD
BANKS
——
SALES
TAX
EXEMPTION
8
Sec.
112.
Section
423.3,
Code
2020,
is
amended
by
adding
the
9
following
new
subsection:
10
NEW
SUBSECTION
.
107.
The
sales
price
from
the
sale
or
11
rental
of
tangible
personal
property
or
specified
digital
12
products,
or
services
furnished,
to
a
nonprofit
food
bank,
13
which
tangible
personal
property,
specified
digital
products,
14
or
services
are
to
be
used
by
the
nonprofit
food
bank
for
a
15
charitable
purpose.
For
purposes
of
this
subsection,
“nonprofit
16
food
bank”
means
an
organization
organized
under
chapter
504
17
and
qualifying
under
section
501(c)(3)
of
the
Internal
Revenue
18
Code
as
an
organization
exempt
from
federal
income
tax
under
19
section
501(a)
of
the
Internal
Revenue
Code
that
maintains
20
an
established
operation
involving
the
provision
of
food
or
21
edible
commodities
or
the
products
thereof
on
a
regular
basis
22
to
persons
in
need
or
to
food
pantries,
soup
kitchens,
hunger
23
relief
centers,
or
other
food
or
feeding
centers
that,
as
an
24
integral
part
of
their
normal
activities,
provide
meals
or
food
25
on
a
regular
basis
to
persons
in
need.
26
DIVISION
XVI
27
PRO
RATA
SHARE
OF
ENTITY-LEVEL
INCOME
TAX
PAID
BY
SHAREHOLDERS
28
OR
BENEFICIARIES
29
Sec.
113.
Section
422.8,
subsection
1,
Code
2020,
is
amended
30
to
read
as
follows:
31
1.
a.
The
amount
of
income
tax
paid
to
another
state
or
32
foreign
country
by
a
resident
taxpayer
of
this
state
on
income
33
derived
from
sources
outside
of
Iowa
shall
be
allowed
as
a
34
credit
against
the
tax
computed
under
this
chapter
,
except
that
35
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the
credit
shall
not
exceed
what
the
amount
of
the
Iowa
tax
1
would
have
been
on
the
same
income
which
was
taxed
by
the
other
2
state
or
foreign
country.
The
limitation
on
this
credit
shall
3
be
computed
according
to
the
following
formula:
Income
earned
4
outside
of
Iowa
and
taxed
by
another
state
or
foreign
country
5
shall
be
divided
by
the
total
income
of
the
resident
taxpayer
6
of
Iowa.
This
quotient
multiplied
times
by
the
net
Iowa
tax
as
7
determined
on
the
total
income
of
the
taxpayer
as
if
entirely
8
earned
in
Iowa
shall
be
the
maximum
tax
credit
against
the
Iowa
9
net
tax.
10
b.
(1)
For
purposes
of
paragraph
“a”
,
a
resident
partner
11
of
an
entity
taxed
as
a
partnership
for
federal
tax
purposes,
12
a
resident
shareholder
of
an
S
corporation,
or
a
resident
13
beneficiary
of
an
estate
or
trust
shall
be
deemed
to
have
paid
14
the
resident
partner’s,
resident
shareholder’s,
or
resident
15
beneficiary’s
pro
rata
share
of
entity-level
income
tax
paid
16
by
the
partnership,
S
corporation,
estate,
or
trust
to
another
17
state
or
foreign
country
on
income
that
is
also
subject
to
18
tax
under
this
division,
but
only
if
the
entity
provides
the
19
resident
partner,
resident
shareholder,
or
resident
beneficiary
20
a
statement
that
documents
the
resident
partner’s,
resident
21
shareholder’s,
or
resident
beneficiary’s
share
of
the
income
22
derived
in
the
other
state
or
foreign
country,
the
income
tax
23
liability
of
the
entity
in
that
state
or
foreign
country,
and
24
the
income
tax
paid
by
the
entity
to
that
state
or
foreign
25
country.
26
(2)
For
purposes
of
paragraph
“a”
,
a
resident
shareholder
of
27
a
regulated
investment
company
shall
be
deemed
to
have
paid
the
28
shareholder’s
pro
rata
share
of
entity-level
income
tax
paid
by
29
the
regulated
investment
company
to
another
state
or
foreign
30
country
and
treated
as
paid
by
its
shareholders
pursuant
to
31
section
853
of
the
Internal
Revenue
Code,
but
only
if
the
32
regulated
investment
company
provides
the
resident
shareholder
33
a
statement
that
documents
the
resident
shareholder’s
share
of
34
the
income
derived
in
the
other
state
or
foreign
country,
the
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income
tax
liability
of
the
regulated
investment
company
in
1
that
state
or
foreign
country,
and
the
income
tax
paid
by
the
2
regulated
investment
company
to
that
state
or
foreign
country.
3
DIVISION
XVII
4
HORSE
RACING
——
DISASTER
EMERGENCY
PROCLAMATION
5
Sec.
114.
Section
99D.7,
Code
2020,
is
amended
by
adding
the
6
following
new
subsection:
7
NEW
SUBSECTION
.
24A.
To
alter,
amend,
suspend,
or
restrict
8
requirements
related
to
the
duration
of
thoroughbred
and
9
quarter
horse
racing
seasons
and
purse
moneys
designated
for
10
horse
racing
in
the
event
of
the
issuance
of
a
proclamation
of
11
disaster
emergency
by
the
governor
ordering
the
closure
of
a
12
licensed
racetrack
facility
that
conducts
live
horse
racing,
13
notwithstanding
any
provision
of
this
section
or
section
99F.6,
14
subsection
4,
to
the
contrary.
15
DIVISION
XVIII
16
PORT
AUTHORITIES
17
Sec.
115.
Section
28J.1,
subsections
1
and
3,
Code
2020,
are
18
amended
to
read
as
follows:
19
1.
“Authorized
purposes”
means
an
activity
that
enhances,
20
fosters,
aids,
provides,
or
promotes
transportation,
21
infrastructure,
utility
service,
flood
and
erosion
control,
22
economic
development,
housing,
recreation,
education,
23
governmental
operations,
culture,
or
research
within
the
24
jurisdiction
of
a
port
authority.
25
3.
“City”
means
the
same
as
defined
in
section
362.2
,
and
26
also
includes
a
city
enterprise
as
defined
in
section
384.24
.
27
Sec.
116.
Section
28J.1,
subsection
6,
paragraphs
d,
f,
and
28
g,
Code
2020,
are
amended
to
read
as
follows:
29
d.
The
cost
of
machinery,
furnishings,
equipment,
financing
30
charges,
interest
prior
to
and
during
construction
and
for
31
no
more
than
twelve
months
after
completion
of
construction,
32
engineering,
architectural
services,
technical
services,
33
preliminary
reports,
property
valuations,
consequential
34
damages
or
costs,
provisions
for
contingencies,
supervision,
35
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inspection,
testing,
and
expenses
of
research
and
development
1
with
respect
to
a
facility.
2
f.
The
interest
upon
the
revenue
bonds
,
and
pledge
3
orders
,
loan
agreements,
lease
contracts,
and
certificates
of
4
participation
in
or
other
participatory
interests
or
evidences
5
of
any
obligation
under
a
loan
agreement
or
lease
contract,
6
during
the
period
or
estimated
period
of
construction
and
7
for
twelve
months
thereafter,
or
for
twelve
months
after
the
8
acquisition
date,
and
upon
reserve
funds
as
the
port
authority
9
deems
advisable
in
connection
with
a
facility
and
the
issuance
10
of
port
authority
revenue
bonds
,
and
pledge
orders
,
loan
11
agreements,
lease
contracts,
and
certificates
of
participation
12
in
or
other
participatory
interests
or
evidences
of
any
13
obligation
under
a
loan
agreement
or
lease
contract
.
14
g.
The
costs
of
issuance
of
port
authority
revenue
bonds
,
15
and
pledge
orders
,
loan
agreements,
lease
contracts,
and
16
certificates
of
participation
in
or
other
participatory
17
interests
or
evidences
of
any
obligations
under
a
loan
18
agreement
or
lease
contract
.
19
Sec.
117.
Section
28J.1,
subsections
7
and
8,
Code
2020,
are
20
amended
to
read
as
follows:
21
7.
“Facility”
or
“port
authority
facility”
means
any
22
public
works
project,
intermodal
freight
or
transportation
23
facility,
project
for
which
tax-exempt
financing
is
authorized
24
by
the
Internal
Revenue
Code,
and
real
or
personal
property
25
or
improvements
owned,
leased,
constructed,
or
otherwise
26
controlled
or
financed
by
or
for
a
port
authority
and
that
27
is
related
to
or
in
furtherance
of
one
or
more
authorized
28
purposes.
29
8.
“Governmental
agency”
means
a
department,
division,
30
or
other
unit
of
state
government
of
this
state
or
any
other
31
state,
city,
county,
any
political
subdivision,
township,
or
32
other
governmental
subdivision,
or
any
city
utility,
any
other
33
public
corporation
,
special
purpose
district,
authority,
or
34
agency
created
under
the
laws
of
this
state,
any
other
state,
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the
United
States,
or
any
department
or
agency
thereof,
or
any
1
agency,
commission,
or
authority
established
pursuant
to
an
2
interstate
compact
or
agreement
or
combination
thereof.
3
Sec.
118.
Section
28J.1,
Code
2020,
is
amended
by
adding
the
4
following
new
subsection:
5
NEW
SUBSECTION
.
8A.
“Net
revenues”
means
revenues
less
6
operating
expenses.
7
Sec.
119.
Section
28J.1,
subsections
11,
12,
and
14,
Code
8
2020,
are
amended
to
read
as
follows:
9
11.
“Political
subdivision”
means
a
city,
county,
10
city-county
consolidation,
or
multicounty
consolidation,
or
11
combination
thereof
municipality
as
defined
in
section
16.151
.
12
12.
“Political
subdivisions
comprising
the
port
authority”
13
means
the
each
political
subdivisions
subdivision
which
created
14
or
participated
in
the
creation
of
the
port
authority
under
15
section
28J.2
,
or
which
joined
an
existing
port
authority
under
16
section
28J.4
.
17
14.
“Port
authority
revenue
bonds”
or
“revenue
bonds”
means
18
revenue
bonds
and
revenue
refunding
bonds
issued
pursuant
to
19
section
28J.21
.
20
Sec.
120.
Section
28J.1,
Code
2020,
is
amended
by
adding
the
21
following
new
subsection:
22
NEW
SUBSECTION
.
15A.
“Public
works
project”
means
a
23
project
of
a
type
that
a
political
subdivision
is
authorized
24
to
undertake
as
otherwise
provided
by
law,
including
25
but
not
limited
to
public
roads
and
other
transportation
26
infrastructure,
utility
systems
such
as
water
treatment
27
facilities
and
sewage
treatment
facilities,
or
a
project
as
28
defined
in
section
384.80.
29
Sec.
121.
Section
28J.1,
subsection
16,
Code
2020,
is
30
amended
to
read
as
follows:
31
16.
“Revenues”
means
rental
rents,
fees
,
income,
rates,
32
tolls,
receipts,
and
other
charges
or
revenues
received
by
a
33
port
authority
or
derived
from
the
operations
of
a
facility
34
or
for
the
use
or
services
of
a
facility,
a
gift
or
grant
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received
with
respect
to
a
facility,
moneys
received
with
1
respect
to
the
lease,
sublease,
sale,
including
installment
2
sale
or
conditional
sale,
or
other
disposition
of
a
facility,
3
moneys
received
in
repayment
of
and
for
interest
on
any
4
loans
made
by
the
port
authority
to
a
person
or
governmental
5
agency,
proceeds
of
port
authority
revenue
bonds
for
payment
6
of
principal,
premium,
or
interest
on
the
bonds
authorized
7
by
the
port
authority,
proceeds
or
borrowings
under
port
8
authority
loan
agreements
for
payment
of
principal,
premium,
9
or
interest
on
the
port
authority
obligations
thereunder,
10
proceeds
or
borrowings
under
lease
contracts
for
the
payment
of
11
lease
payments
thereunder,
proceeds
under
any
certificates
of
12
participation
in
or
other
participatory
interests
or
evidences
13
of
any
obligations
under
a
loan
agreement
or
lease
contract,
14
proceeds
from
any
insurance,
condemnation,
or
guarantee
15
pertaining
to
the
financing
of
the
facility,
and
income
and
16
profit
from
the
investment
of
the
proceeds
of
port
authority
17
revenue
bonds
,
proceeds,
or
borrowings
under
loan
agreements,
18
lease
contracts,
or
proceeds
of
certificates
of
participation
19
in
or
other
participatory
interests
or
evidences
of
any
20
obligation
under
any
loan
agreement
or
lease
contract
or
of
any
21
revenues.
22
Sec.
122.
Section
28J.2,
subsection
1,
Code
2020,
is
amended
23
to
read
as
follows:
24
1.
Two
One
or
more
political
subdivisions
may
by
resolution
25
create
a
port
authority
under
this
chapter
by
resolution
26
anywhere
in
this
state,
regardless
of
proximity
to
a
body
of
27
water
.
If
a
proposal
to
create
a
port
authority
receives
a
28
favorable
majority
of
the
members
of
the
elected
legislative
29
body
of
each
of
the
political
subdivisions,
the
port
authority
30
is
created
at
the
time
provided
in
the
resolution.
The
31
jurisdiction
of
a
port
authority
includes
the
territory
32
described
in
section
28J.8
.
33
Sec.
123.
Section
28J.2,
Code
2020,
is
amended
by
adding
the
34
following
new
subsection:
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NEW
SUBSECTION
.
5.
A
port
authority
is
an
entity
separate
1
from
the
political
subdivisions
comprising
the
port
authority.
2
The
powers
granted
to
the
port
authority
pursuant
to
this
3
chapter
are
in
addition
to
other
powers,
and
constitute
4
independent
powers
that
may
be
exercised
by
the
port
authority
5
whether
or
not
the
political
subdivisions
comprising
the
6
port
authority
have
or
may
exercise
any
of
those
powers
7
individually.
8
Sec.
124.
Section
28J.3,
subsection
1,
Code
2020,
is
amended
9
to
read
as
follows:
10
1.
The
political
subdivisions
comprising
a
port
authority
11
may
appropriate
and
expend
public
funds
and
make
contributions
12
to
the
port
authority
to
finance
or
subsidize
the
operation
and
13
authorized
purposes
of
the
port
authority
and
pay
the
costs
14
and
expenses
incurred
by
the
port
authority
in
carrying
out
15
any
operations
or
authorized
purposes
of
the
port
authority
.
16
Political
subdivisions
comprising
the
port
authority
may
17
enter
into
agreements
with
each
other
or
the
port
authority
18
providing
for
the
contributions
to
the
port
authority
to
be
19
made
by
each
of
the
political
subdivisions
and
providing
for
20
the
obligations
of
each
of
the
political
subdivisions
to
pay,
21
finance,
or
subsidize
the
costs
and
expenses
incurred
by
the
22
port
authority.
Political
subdivisions
comprising
the
port
23
authority
may,
by
resolution,
authorize
and
appropriate
funds
24
for
any
contribution,
payment,
or
financing
required
to
be
25
made
under
such
agreement
by
the
use
of
any
method
available
26
to
government
agencies
for
providing
funds
or
financing
under
27
section
28J.16.
A
port
authority
shall
control
tax
revenues
28
allocated
to
the
facilities
the
port
authority
administers
and
29
all
revenues
derived
from
the
operation
of
the
port
authority,
30
the
sale
of
its
property,
interest
on
investments,
or
from
any
31
other
source
related
to
the
port
authority.
32
Sec.
125.
Section
28J.5,
subsections
1,
2,
and
5,
Code
2020,
33
are
amended
to
read
as
follows:
34
1.
A
port
authority
created
pursuant
to
section
28J.2
shall
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be
governed
by
a
board
of
directors.
Members
of
a
board
of
1
directors
of
a
port
authority
created
by
two
or
more
political
2
subdivisions
shall
be
divided
among
the
political
subdivisions
3
comprising
the
port
authority
in
such
proportions
as
the
4
political
subdivisions
may
agree
and
shall
be
appointed
by
the
5
respective
political
subdivision’s
elected
legislative
body.
6
Members
of
a
board
of
directors
of
a
port
authority
created
by
7
one
political
subdivision
shall
be
appointed
by
the
political
8
subdivision’s
governing
body.
9
2.
The
number
of
directors
comprising
the
board
of
a
port
10
authority
created
by
two
or
more
political
subdivisions
shall
11
be
determined
by
agreement
between
the
political
subdivisions
12
comprising
the
port
authority
,
and
which
.
The
number
of
13
directors
comprising
the
board
of
directors
of
a
port
authority
14
created
by
one
political
subdivision
shall
consist
of
the
15
number
of
directors
the
political
subdivision
considers
16
necessary.
The
number
may
be
changed
by
resolution
of
each
17
of
the
political
subdivisions
comprising
the
port
authority
18
and
in
accordance
with
any
agreement
between
the
political
19
subdivisions
comprising
the
port
authority
.
20
5.
The
board
may
provide
procedures
for
the
removal
of
a
21
director
who
fails
to
attend
three
consecutive
regular
meetings
22
of
the
board.
If
a
director
is
so
removed,
a
successor
shall
23
be
appointed
for
the
remaining
term
of
the
removed
director
in
24
the
same
manner
provided
for
the
original
appointment.
The
25
appointing
body
Any
political
subdivisions
comprising
the
port
26
authority
may
at
any
time
remove
a
director
appointed
by
it
for
27
misfeasance,
nonfeasance,
or
malfeasance
in
office
and
appoint
28
a
successor
for
the
remaining
term
of
the
removed
director
in
29
the
same
manner
as
provided
for
by
the
original
appointment
.
30
Sec.
126.
Section
28J.8,
subsection
1,
Code
2020,
is
amended
31
to
read
as
follows:
32
1.
The
area
of
jurisdiction
of
a
port
authority
shall
33
include
all
of
the
territory
of
the
port
authority
facility
and
34
of
the
political
subdivisions
comprising
the
port
authority
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and,
if
the
port
authority
owns
or
leases
a
railroad
line
or
1
airport,
the
territory
on
which
the
railroad’s
line,
terminals,
2
and
related
facilities
or
the
airport’s
runways,
terminals,
3
and
related
facilities
are
located,
regardless
of
whether
the
4
territory
is
located
in
the
political
subdivisions
comprising
5
the
port
authority.
6
Sec.
127.
Section
28J.9,
subsections
4,
8,
and
10,
Code
7
2020,
are
amended
to
read
as
follows:
8
4.
Acquire,
construct,
furnish,
equip,
maintain,
repair,
9
sell,
exchange,
lease,
lease
with
an
option
to
purchase,
10
convey
interests
in
real
or
personal
property,
and
operate
any
11
property
of
the
port
authority
within
or
outside
the
territory
12
of
the
political
subdivisions
comprising
the
port
authority
in
13
furtherance
of
any
authorized
purpose,
including
in
connection
14
with
transportation,
recreational,
governmental
operations,
or
15
cultural
activities
in
furtherance
of
an
authorized
purpose
.
16
8.
Issue
port
authority
revenue
bonds
beyond
the
limit
17
of
bonded
indebtedness
provided
by
law,
payable
solely
from
18
revenues
as
provided
in
section
28J.21
,
and
enter
into
loan
19
agreements
and
lease
contracts
as
provided
in
section
28J.21A,
20
for
the
purpose
of
providing
funds
to
pay
the
costs
of
any
21
facility
or
facilities
of
the
port
authority
or
parts
thereof.
22
10.
Enjoy
and
possess
the
same
legislative
and
executive
23
rights,
privileges,
and
powers
granted
cities
under
chapter
24
chapters
28F,
364
,
and
384,
and
counties
under
chapter
331
,
25
including
the
exercise
of
police
power
but
excluding
the
power
26
to
levy
taxes.
27
Sec.
128.
Section
28J.11,
subsection
2,
Code
2020,
is
28
amended
to
read
as
follows:
29
2.
Impair
the
powers
of
a
political
subdivision
to
develop
30
or
improve
a
port
and
terminal
authority
facility
except
as
31
restricted
by
section
28J.15
.
32
Sec.
129.
Section
28J.13,
Code
2020,
is
amended
to
read
as
33
follows:
34
28J.13
Annual
budget
——
use
of
rents
and
charges.
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The
board
shall
annually
prepare
a
budget
for
the
port
1
authority.
Revenues
received
by
the
port
authority
shall
be
2
used
for
the
general
expenses
of
the
port
authority
and
to
3
pay
interest,
amortization,
and
retirement
charges
on
,
and
4
principal
of,
money
borrowed
and
to
make
payments
under
lease
5
contracts
.
Except
as
provided
in
section
28J.26
,
if
there
6
remains,
at
the
end
of
any
fiscal
year,
a
surplus
of
such
funds
7
after
providing
for
the
above
uses,
the
board
shall
pay
such
8
surplus
into
the
general
funds
of
the
political
subdivisions
9
comprising
the
port
authority
as
agreed
to
by
the
subdivisions.
10
Sec.
130.
Section
28J.15,
Code
2020,
is
amended
to
read
as
11
follows:
12
28J.15
Limitation
on
certain
powers
of
political
13
subdivisions.
14
A
political
subdivision
creating
or
participating
in
the
15
creation
of
a
port
authority
in
accordance
with
section
28J.2
16
shall
not,
during
the
time
the
port
authority
is
in
existence,
17
exercise
the
rights
and
powers
provided
in
chapters
28A
,
28K
,
18
and
384
relating
to
the
political
subdivision’s
authority
over
19
a
port,
wharf,
dock,
harbor
,
or
other
facility
substantially
20
similar
to
that
political
subdivision’s
authority
under
a
port
21
authority
granted
under
this
chapter
,
except
as
provided
in
22
section
28J.2
.
23
Sec.
131.
Section
28J.16,
subsection
1,
paragraphs
a
and
c,
24
Code
2020,
are
amended
to
read
as
follows:
25
a.
A
port
authority
may
charge,
alter,
and
collect
rental
26
rents,
fees
,
or
other
charges
or
revenues
for
the
use
or
27
services
of
any
port
authority
facility
and
contract
for
the
28
use
or
services
of
a
facility,
and
fix
the
terms,
conditions,
29
rental
rents,
fees,
or
other
charges
for
the
use
or
services.
30
c.
The
rental
rents,
fees
,
or
other
charges
,
and
other
31
revenues
of
a
port
authority
shall
not
be
subject
to
32
supervision
or
regulation
by
any
other
authority,
commission,
33
board,
bureau,
or
governmental
agency
of
the
state
and
the
34
contract
may
provide
for
acquisition
of
all
or
any
part
of
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the
port
authority
facility
for
such
consideration
payable
1
over
the
period
of
the
contract
or
otherwise
as
the
port
2
authority
determines
to
be
appropriate,
but
subject
to
the
3
provisions
of
any
resolution
authorizing
the
issuance
of
port
4
authority
revenue
bonds
,
loan
agreements,
lease
contracts,
5
or
certificates
of
participation
in
or
other
participatory
6
interests
or
evidences
of
any
obligations
under
a
loan
7
agreement
or
lease
contract,
or
of
any
trust
agreement
securing
8
the
bonds
,
loan
agreements,
lease
contracts,
or
certificates
of
9
participation
in
or
other
participatory
interests
or
evidences
10
of
any
obligation
under
a
loan
agreement
or
lease
contract
.
11
Sec.
132.
Section
28J.16,
subsection
2,
paragraph
a,
Code
12
2020,
is
amended
to
read
as
follows:
13
a.
A
governmental
agency
may
cooperate
with
the
port
14
authority
in
the
acquisition
,
operation,
or
construction
of
a
15
port
authority
facility
and
shall
enter
into
such
agreements
16
with
the
port
authority
as
may
be
appropriate,
which
shall
17
provide
for
contributions
by
the
parties
in
a
proportion
as
may
18
be
agreed
upon
and
other
terms
as
may
be
mutually
satisfactory
19
to
the
parties
including
the
authorization
of
the
construction
20
of
the
facility
by
one
of
the
parties
acting
as
agent
for
all
21
of
the
parties
and
the
ownership
,
operation,
and
control
of
22
the
facility
by
the
port
authority
to
the
extent
necessary
or
23
appropriate.
24
Sec.
133.
Section
28J.17,
subsection
1,
paragraph
a,
Code
25
2020,
is
amended
to
read
as
follows:
26
a.
A
port
authority
may
enter
into
a
contract
or
other
27
arrangement
with
a
person,
railroad,
utility
company,
28
corporation,
governmental
agency
including
sewerage,
drainage,
29
conservation,
conservancy,
or
other
improvement
districts
in
30
this
or
other
states,
or
the
governments
or
agencies
of
foreign
31
countries
as
may
be
necessary
or
convenient
for
the
exercise
32
of
the
powers
granted
by
this
chapter
.
The
port
authority
33
may
purchase,
lease,
or
acquire
land
or
other
property
in
34
any
county
of
this
state
and
in
adjoining
states
for
the
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accomplishment
of
authorized
purposes
of
the
port
authority,
or
1
for
the
improvement
of
the
harbor
and
port
authority
facilities
2
over
which
the
port
authority
may
have
jurisdiction
including
3
development
of
port
authority
facilities
in
adjoining
states.
4
The
authority
granted
in
this
section
to
enter
into
contracts
5
or
other
arrangements
with
the
federal
government
includes
the
6
power
to
enter
into
any
contracts,
arrangements,
or
agreements
7
that
may
be
necessary
to
hold
and
save
harmless
the
United
8
States
from
damages
due
to
the
construction
and
maintenance
by
9
the
United
States
of
work
the
United
States
undertakes.
10
Sec.
134.
Section
28J.19,
Code
2020,
is
amended
to
read
as
11
follows:
12
28J.19
Property
tax
exemption.
13
A
port
authority
shall
be
exempt
from
and
shall
not
be
14
required
to
pay
taxes
on
real
property
that
is
purchased
by
a
15
port
authority
or
real
property
belonging
to
a
port
authority
16
that
is
used
exclusively
for
an
authorized
purpose
,
as
provided
17
in
section
427.1,
subsection
34
.
18
Sec.
135.
NEW
SECTION
.
28J.21A
Loan
agreements
——
lease
19
contracts
——
trust
agreements.
20
1.
Definitions.
As
used
in
this
section,
unless
the
context
21
otherwise
requires:
22
a.
“Lease
contract”
includes
any
certificates
of
23
participation
or
other
participatory
interests
in
the
lease
24
contract
or
obligations
arising
out
of
the
lease
contract.
25
b.
“Loan
agreement”
includes
any
notes,
certificates,
or
any
26
other
participatory
interests
issued
to
evidence
the
parties’
27
obligations
arising
out
of
the
loan
agreement.
28
2.
Loan
agreements.
A
port
authority
may
enter
into
loan
29
agreements
to
borrow
money
to
pay
the
costs
of
any
facility,
or
30
parts
thereof,
or
to
refund
other
obligations
which
are
payable
31
from
the
net
revenues
of
the
port
authority
at
lower,
the
same,
32
or
higher
rates
of
interest
in
accordance
with
the
all
of
the
33
following
terms
and
procedures:
34
a.
A
loan
agreement
entered
into
by
a
port
authority
may
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contain
provisions
similar
to
those
in
loan
agreements
between
1
private
parties,
including
but
not
limited
to
any
of
the
2
following:
3
(1)
The
loan
agreement
may
provide
for
the
issuance
4
of
notes,
certificates
of
participation,
or
any
other
5
participatory
interests
to
evidence
the
parties’
obligations.
6
(2)
The
loan
agreement
may
provide
for
maturity
in
one
or
7
more
installments.
8
(3)
The
loan
agreement
may
be
in
registered
form
and
carry
9
registration
and
conversion
privileges.
10
(4)
The
loan
agreement
may
be
payable
as
to
principal
and
11
interest
at
times
and
places
as
specified.
12
(5)
The
loan
agreement
may
be
subject
to
terms
of
redemption
13
prior
to
maturity
with
or
without
a
premium.
14
(6)
The
loan
agreement
may
be
in
one
or
more
denominations.
15
b.
A
provision
of
a
loan
agreement
which
stipulates
that
16
a
portion
of
the
payments
be
applied
as
interest
is
subject
17
to
chapter
74A
and
such
interest
may
be
at
a
variable
rate
or
18
rates
changing
from
time
to
time
in
accordance
with
a
base
or
19
formula.
Other
laws
relating
to
interest
rates
do
not
apply
20
and
the
provisions
of
chapter
75
are
not
applicable.
21
c.
The
board
may
authorize
a
loan
agreement
to
be
22
payable
solely
from
the
net
revenues
of
a
port
authority
by
23
substantially
following
the
authorization
procedures
of
section
24
28J.21
for
the
issuance
of
revenue
bonds.
The
resolution
25
authorizing
the
loan
agreement
may
also
prescribe
additional
26
provisions,
terms,
conditions,
and
covenants
that
the
port
27
authority
deems
advisable,
consistent
with
this
chapter,
28
including
provisions
for
creating
and
maintaining
reserve
29
funds
and
for
the
authorization
of
additional
loan
agreements
30
ranking
on
a
parity
with
such
loan
agreements
and
additional
31
loan
agreements
junior
and
subordinate
to
such
loan
agreement,
32
and
that
such
loan
agreement
shall
rank
on
a
parity
with
or
33
be
junior
and
subordinate
to
any
loan
agreement
which
may
be
34
then
outstanding.
A
port
authority
loan
agreement
shall
be
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a
contract
between
the
port
authority
and
the
lender
and
the
1
resolution
shall
be
made
part
of
the
contract.
2
d.
A
loan
agreement
to
which
a
port
authority
is
a
party
3
is
an
obligation
of
the
political
subdivisions
comprising
the
4
port
authority
for
the
purposes
of
chapters
502
and
636,
and
5
is
a
lawful
investment
for
any
bank,
trust
company,
savings
6
association,
deposit
guaranty
association,
investment
company,
7
insurance
company,
insurance
association,
executor,
guardian
or
8
trustee,
and
any
fiduciary
responsible
for
the
investment
of
9
funds
or
having
charge
of
the
loan
retirement
funds
or
sinking
10
funds
of
any
port
authority,
governmental
agency,
or
taxing
11
district
of
this
state,
any
pension
and
annuity
retirement
12
system,
the
Iowa
public
employees’
retirement
system,
the
13
police
officers
and
fire
fighters
retirement
systems
under
14
chapters
410
and
411,
or
a
revolving
fund
of
a
governmental
15
agency
of
this
state,
and
are
acceptable
as
security
for
the
16
deposit
of
public
funds
under
chapter
12C.
17
3.
Lease
contracts.
A
port
authority
may
enter
into
lease
18
contracts
for
real
or
personal
property
comprising
a
port
19
authority
facility,
or
parts
thereof,
in
accordance
with
all
of
20
the
following
terms
and
procedures:
21
a.
A
port
authority
shall
lease
property
only
for
a
term
22
which
does
not
exceed
the
economic
life
of
the
property,
as
23
determined
by
the
board.
24
b.
A
lease
contract
entered
into
by
a
port
authority
may
25
contain
provisions
similar
to
those
found
in
lease
contracts
26
between
private
parties,
including
but
not
limited
to
any
of
27
the
following:
28
(1)
The
lease
contract
may
provide
for
the
issuance
of
29
certificates
of
participation
or
other
participatory
interests
30
in
the
lease
contracts
or
any
obligations
thereunder.
31
(2)
The
lease
contract
may
provide
for
the
lessee
to
pay
any
32
of
the
costs
of
operation
or
ownership
of
the
leased
property
33
and
for
the
right
to
purchase
the
leased
property.
34
c.
A
provision
of
a
lease
contract
which
stipulates
that
a
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portion
of
the
rent
or
lease
payments
be
applied
as
interest
1
is
subject
to
the
provisions
of
chapter
74A
and
such
interest
2
may
be
at
a
variable
rate
or
rates
changing
from
time
to
time
3
in
accordance
with
a
base
or
formula.
Other
laws
relating
to
4
interest
rates
shall
not
apply
and
the
provisions
of
chapter
5
75
are
not
applicable.
6
d.
The
board
may
authorize
a
lease
contract
payable
solely
7
from
the
net
revenues
of
a
port
authority
by
substantially
8
following
the
authorization
procedures
set
forth
in
section
9
28J.21
for
the
issuance
of
port
authority
revenue
bonds.
The
10
resolution
authorizing
the
lease
contract
may
also
prescribe
11
additional
provisions,
terms,
conditions,
and
covenants
which
12
the
port
authority
deems
advisable,
consistent
with
this
13
chapter,
including
provisions
for
creating
and
maintaining
14
reserve
funds
and
the
authorization
of
additional
lease
15
contracts
ranking
on
a
parity
with
such
lease
contracts
and
16
additional
lease
contracts
junior
and
subordinate
to
such
lease
17
contracts,
and
that
such
lease
contracts
shall
rank
on
a
parity
18
with
or
be
junior
and
subordinate
to
any
lease
contract
which
19
may
be
then
outstanding.
A
port
authority
lease
contract
shall
20
be
a
contract
between
the
port
authority
and
the
lessor
and
the
21
resolution
shall
be
part
of
the
contract.
22
e.
A
lease
contract
to
which
a
port
authority
is
a
party
23
is
an
obligation
of
the
political
subdivisions
comprising
the
24
port
authority
for
the
purposes
of
chapters
502
and
636,
and
25
is
a
lawful
investment
for
any
bank,
trust
company,
savings
26
association,
deposit
guaranty
association,
investment
company,
27
insurance
company,
insurance
association,
executor,
guardian
or
28
trustee,
and
any
fiduciary
responsible
for
the
investment
of
29
funds
or
having
charge
of
the
lease
retirement
funds
or
sinking
30
funds
of
any
port
authority,
governmental
agency
or
taxing
31
district
of
this
state,
any
pension
and
annuity
retirement
32
system,
the
Iowa
public
employees’
retirement
system,
the
33
police
officers
and
fire
fighters
retirement
systems
under
34
chapters
410
and
411,
or
a
revolving
fund
of
a
governmental
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agency
of
this
state,
and
are
acceptable
as
security
for
the
1
deposit
of
public
funds
under
chapter
12C.
2
f.
A
contract
for
construction
by
a
private
party
of
3
property
to
be
leased
by
a
port
authority
is
not
a
contract
for
4
a
public
improvement
and
shall
not
be
subject
to
the
provisions
5
of
chapter
26
and
section
28J.3,
subsection
3.
This
paragraph
6
applies
to
all
contracts
that
are
subject
to
this
subsection,
7
notwithstanding
section
28J.9,
subsection
18,
or
any
other
8
provision
of
law
that
might
otherwise
apply,
including
a
9
requirement
of
notice,
competitive
bidding
or
selection,
or
10
for
the
provision
of
security.
However,
if
a
contract
is
11
funded
in
advance
by
means
of
the
lessor
depositing
moneys
to
12
be
administered
by
a
port
authority
with
the
port
authority’s
13
obligation
to
make
rent
or
lease
payments
commencing
with
14
its
receipt
of
moneys,
a
contract
for
construction
of
the
15
property
in
question
awarded
by
the
port
authority
is
a
public
16
improvement
and
is
subject
to
the
provisions
of
chapter
26.
17
4.
Trust
agreements.
18
a.
In
the
discretion
of
the
port
authority,
a
loan
agreement
19
or
a
lease
contract
authorized
under
this
section
and
the
port
20
authority’s
obligations
thereunder
may
be
secured
by
a
trust
21
agreement
between
the
port
authority
and
a
corporate
trustee
22
that
may
be
any
trust
company
or
bank
having
the
powers
of
a
23
trust
company
within
this
or
any
other
state.
Subject
to
the
24
other
provisions
of
this
paragraph,
the
corporate
trustee
may
25
also
be
the
lender
under
a
loan
agreement
or
the
lessor
under
a
26
lease
contract
authorized
under
this
section.
27
b.
The
trust
agreement
may
provide
for
the
issuance
of
28
notes
to
evidence
the
port
authority’s
obligations
under
a
loan
29
agreement
to
which
the
port
authority
is
a
party.
The
trust
30
agreement
may
also
provide
for
the
issuance
of
certificates
31
of
participation
or
other
participatory
interests
in
a
lease
32
contract
to
which
a
port
authority
is
a
party.
The
trust
33
agreement,
or
any
resolution
authorizing
the
loan
agreement
or
34
the
lease
contract,
may
pledge
or
assign
revenues
of
the
port
35
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authority
to
be
received
as
payment
of
obligations
under
the
1
loan
agreement
or
the
lease
contract
and
may
contain
provisions
2
for
protecting
and
enforcing
the
rights
and
remedies
of
the
3
lender,
the
lessor,
or
the
holders
of
notes
evidencing
the
4
port
authority’s
obligations
under
the
loan
agreement.
These
5
provisions
may
include
covenants
setting
forth
the
duties
of
6
the
port
authority
in
relation
to
the
acquisition
of
property,
7
the
construction,
improvement,
maintenance,
repair,
operation,
8
and
insurance
of
the
port
authority
facility
in
connection
9
with
which
the
loan
agreement
or
the
lease
contract
is
10
authorized,
the
rentals
or
other
charges
to
be
imposed
for
the
11
use
or
services
of
any
port
authority
facility,
the
custody,
12
safeguarding,
and
application
of
all
moneys,
and
provisions
for
13
the
employment
of
consulting
engineers
in
connection
with
the
14
construction
or
operation
of
any
port
authority
facility.
15
c.
A
bank
or
trust
company
incorporated
under
the
laws
16
of
this
state
that
acts
as
the
depository
of
the
proceeds
or
17
borrowings
provided
under
the
loan
agreement
or
lease
contract
18
or
of
revenues,
shall
furnish
any
indemnifying
bonds
and
may
19
pledge
any
securities
that
are
required
by
the
port
authority.
20
The
trust
agreement
may
set
forth
the
rights
and
remedies
of
21
the
lender,
the
lessor,
or
the
holders
of
notes
evidencing
the
22
port
authority’s
obligations
under
the
loan
agreement
and
may
23
restrict
the
individual
right
of
action
by
the
lender,
the
24
lessor,
or
the
holders
of
notes
evidencing
the
port
authority’s
25
obligations
under
the
loan
agreement
as
is
customary
in
trust
26
agreements
or
trust
indentures
securing
similar
loan
agreements
27
or
lease
contracts.
The
trust
agreement
may
contain
any
other
28
provisions
that
the
port
authority
determines
reasonable
and
29
proper
for
the
security
of
the
lender,
the
lessor,
or
the
30
holders
of
notes
evidencing
the
port
authority’s
obligations
31
under
the
loan
agreement.
All
expenses
incurred
in
carrying
32
out
the
provisions
of
the
trust
agreement
may
be
treated
as
33
a
part
of
the
cost
of
the
operation
of
the
port
authority
34
facility.
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5.
Exclusions.
Port
authority
loan
agreements
and
lease
1
contracts
authorized
under
this
chapter
shall
not
constitute
2
a
debt,
indebtedness,
or
a
pledge
of
the
faith
and
credit
of
3
the
port
authority
or
the
state
or
any
political
subdivision
4
of
the
state,
within
the
meaning
of
any
state
constitutional
5
provision
or
statutory
limitation,
nor
constitute
or
give
rise
6
to
a
pecuniary
liability
of
the
port
authority,
any
political
7
subdivisions
comprising
the
port
authority,
the
state,
or
8
any
political
subdivision
of
the
state,
or
a
charge
against
9
the
general
credit
or
taxing
power
of
the
port
authority.
10
Any
political
subdivisions
comprising
the
port
authority,
11
the
state,
or
any
political
subdivision
of
the
state,
and
12
the
holders
or
owners
of
the
obligations
owed
under
a
loan
13
agreement
or
lease
contract
shall
not
have
taxes
levied
by
the
14
state
or
by
a
taxing
authority
of
a
governmental
agency
of
the
15
state
for
the
payment
of
the
principal
of
or
interest
owed
on
16
such
obligations.
However,
a
loan
agreement
or
lease
contract
17
and
the
obligation
owed
thereunder
are
payable
solely
from
the
18
revenues
and
funds
pledged
for
their
payment
as
authorized
19
by
this
chapter.
All
loan
agreements
and
lease
contracts
20
authorized
under
this
chapter
and
the
evidence
of
obligations
21
owed
under
such
loan
agreements
or
lease
contracts
such
shall
22
contain
a
statement
to
the
effect
that
the
loan
agreement
or
23
lease
contract
authorized
under
this
chapter
and
the
evidence
24
of
obligations
owed
under
the
loan
agreement
or
lease
contract,
25
as
to
both
principal
and
interest,
are
not
debts
of
the
port
26
authority
or
the
state
or
any
political
subdivision
of
the
27
state,
but
are
payable
solely
from
revenues
and
funds
pledged
28
for
their
payment.
29
6.
Judicial
proceedings.
30
a.
The
sole
remedy
for
a
breach
or
default
of
a
term
of
31
any
port
authority
loan
agreement
or
lease
contract
authorized
32
under
this
chapter
is
a
proceeding
in
law
or
in
equity
by
33
suit,
action,
or
mandamus
to
enforce
and
compel
performance
of
34
the
duties
required
by
this
chapter
and
of
the
terms
of
the
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resolution
authorizing
the
loan
agreement
or
lease
contract,
1
or
to
obtain
the
appointment
of
a
receiver
to
take
possession
2
of
and
operate
the
port
authority
and
to
perform
the
duties
3
required
by
this
chapter
and
the
terms
of
the
resolution
4
authorizing
the
loan
agreement
or
lease
contract.
5
b.
An
action
shall
not
be
brought
after
fifteen
days
from
6
the
time
the
loan
agreement
or
lease
contract
is
authorized
by
7
the
port
authority
with
regards
to
any
of
the
following:
8
(1)
The
legality
of
the
port
authority
loan
agreement
or
9
lease
contract.
10
(2)
The
power
of
a
port
authority
to
authorize
the
port
11
authority
loan
agreement
or
lease
contract.
12
(3)
The
effectiveness
of
any
proceedings
relating
to
the
13
authorization
of
the
port
authority
loan
agreement
or
lease
14
contract.
15
Sec.
136.
Section
28J.25,
Code
2020,
is
amended
to
read
as
16
follows:
17
28J.25
Funds
and
property
held
in
trust
——
use
and
deposit
of
18
funds.
19
All
revenues,
funds,
properties,
and
assets
acquired
by
the
20
port
authority
under
this
chapter
,
whether
as
proceeds
from
the
21
sale
of
port
authority
revenue
bonds,
pledge
orders,
borrowings
22
under
a
loan
agreement,
entering
into
a
lease
contract,
23
proceeds
from
the
issuance
of
certificates
of
participation
24
or
any
other
participatory
interests
in
such
loan
agreement
25
or
lease
contract
or
as
revenues,
shall
be
held
in
trust
for
26
the
purposes
of
carrying
out
the
port
authority’s
powers
and
27
duties,
shall
be
used
and
reused
as
provided
in
this
chapter
,
28
and
shall
at
no
time
be
part
of
other
public
funds.
Such
funds,
29
except
as
otherwise
provided
in
a
resolution
authorizing
port
30
authority
revenue
bonds
or
pledge
orders,
the
loan
agreement
or
31
lease
contract,
or
in
a
trust
agreement
securing
the
same,
or
32
except
when
invested
pursuant
to
section
28J.26
,
shall
be
kept
33
in
depositories
selected
by
the
port
authority
in
the
manner
34
provided
in
chapter
12C
,
and
the
deposits
shall
be
secured
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as
provided
in
that
chapter.
The
resolution
authorizing
the
1
issuance
of
revenue
bonds
or
pledge
orders,
the
loan
agreement
2
or
lease
contract,
or
the
trust
agreement
securing
such
bonds
3
or
pledge
orders,
shall
provide
that
any
officer
to
whom,
or
4
any
bank
or
trust
company
to
which,
such
moneys
are
paid
shall
5
act
as
trustee
of
such
moneys
and
hold
and
apply
them
for
the
6
purposes
hereof,
subject
to
such
conditions
as
this
chapter
and
7
such
resolution
or
trust
agreement
provide.
8
Sec.
137.
Section
28J.26,
subsection
1,
Code
2020,
is
9
amended
to
read
as
follows:
10
1.
If
a
port
authority
has
surplus
funds
after
making
all
11
deposits
into
all
funds
required
by
the
terms,
covenants,
12
conditions,
and
provisions
of
outstanding
revenue
bonds,
pledge
13
orders,
loan
agreements,
or
lease
contracts
and
refunding
bonds
14
which
are
payable
from
the
revenues
of
the
port
authority
15
and
after
complying
with
all
of
the
requirements,
terms,
16
covenants,
conditions,
and
provisions
of
the
proceedings
and
17
resolutions
pursuant
to
which
revenue
bonds,
pledge
orders,
18
and
refunding
bonds
are
issued
or
the
loan
agreement
or
lease
19
contract
is
authorized
,
the
board
may
transfer
the
surplus
20
funds
to
any
other
fund
of
the
port
authority
in
accordance
21
with
this
chapter
and
chapter
12C
,
provided
that
a
transfer
22
shall
not
be
made
if
it
conflicts
with
any
of
the
requirements,
23
terms,
covenants,
conditions,
or
provisions
of
a
resolution
24
authorizing
the
issuance
of
revenue
bonds,
pledge
orders,
25
or
other
obligations
which
are
or
loan
agreements
or
lease
26
contracts
payable
from
the
revenues
of
the
port
authority
which
27
are
then
outstanding.
28
Sec.
138.
Section
427.1,
subsection
34,
Code
2020,
is
29
amended
to
read
as
follows:
30
34.
Port
authority
property.
The
property
of
a
port
31
authority
created
pursuant
to
section
28J.2
,
when
devoted
to
32
public
use
and
not
held
for
pecuniary
profit
,
or
property
33
purchased
by
a
port
authority
.
34
EXPLANATION
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The
inclusion
of
this
explanation
does
not
constitute
agreement
with
1
the
explanation’s
substance
by
the
members
of
the
general
assembly.
2
This
bill
relates
to
state
taxation
and
related
laws
of
3
the
state,
including
the
administration
by
the
department
4
of
revenue
(department)
of
certain
tax
credits
and
refunds,
5
income
taxes,
moneys
and
credits
taxes,
sales
and
use
taxes,
6
by
modifying
provisions
relating
to
reinstatement
of
business
7
entities
and
to
the
assessment
and
valuation
of
property,
the
8
Iowa
reinvestment
Act,
horse
racing,
and
port
authorities.
The
9
bill
is
organized
into
divisions.
10
DEPARTMENT
OF
REVENUE
ADMINISTRATION
AND
PENALTY
PROVISIONS.
11
The
amendment
to
Code
section
421.6
enhances
the
readability
of
12
the
Code
section
by
including
in
the
definition
of
“return”
the
13
moneys
and
credits
tax
turn
administered
by
the
department
of
14
revenue
under
Code
section
533.329.
15
The
bill
enacts
new
Code
section
421.17(36)
which
permits
16
the
director
of
revenue
to
enter
into
Code
chapter
28E
17
agreements
with
the
state
fair
or
a
county
or
district
fair
18
to
collect
and
remit
sales
taxes
and
fees
from
sellers
making
19
retail
sales
on
the
grounds
owned
by
the
fair
or
through
events
20
conducted
by
the
fair.
21
The
amendment
to
Code
section
421.27(1)
provides
that
in
22
the
case
of
a
specified
business
with
no
tax
shown
due
or
23
required
to
be
shown
due
that
fails
to
timely
file
their
24
income
tax
return
or
information
return
shall
pay
the
greater
25
of
the
following
penalty
amounts:
$200;
or
an
amount
equal
26
to
10
percent
of
the
imputed
Iowa
liability
of
the
specified
27
business,
not
to
exceed
$25,000.
28
The
amendment
to
Code
section
421.27(1)
provides
that
the
29
penalty
for
individuals
or
specified
businesses
that
fail
to
30
timely
file
a
return
may
be
waived
under
certain
circumstances.
31
The
provision
applies
to
tax
years
beginning
on
or
after
32
January
1,
2022.
33
The
amendment
to
Code
section
421.27(4)
provides
that
the
34
penalty
for
a
specified
business
that
willfully
fails
to
file
a
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return
with
no
tax
shown
due
or
required
to
be
shown
due
with
1
the
intent
to
evade
such
a
filing
requirement
or
reporting
2
Iowa-source
income,
the
penalty
imposed
shall
be
the
greater
3
of
$1,500
or
an
amount
equal
to
75
percent
of
the
imputed
Iowa
4
liability
of
the
specified
business.
The
provision
applies
to
5
tax
years
beginning
on
or
after
January
1,
2022.
6
The
amendment
to
Code
section
421.27(4)
expands
penalty
7
provisions
by
providing
that
a
person
who
willfully
fails
to
8
file
a
return
or
deposit
form
with
intent
to
evade
a
filing
9
requirement
shall
be
subject
to
a
penalty
of
75
percent
of
the
10
tax
added
to
the
amount
of
tax
shown
due
or
required
to
be
shown
11
due,
in
lieu
of
other
penalties.
The
provision
applies
to
tax
12
years
beginning
on
or
after
January
1,
2022.
13
The
amendment
to
Code
section
421.27(6)
makes
numerous
14
changes
to
the
criminal
offense
of
fraudulent
practice
15
by
expanding
the
criminal
offense
to
include
a
person
who
16
willfully
makes
a
false
application
for
an
exemption
or
benefit
17
with
the
intent
to
receive
the
exemption
or
benefit
to
which
18
the
person
is
not
entitled.
19
The
amendment
to
Code
section
421.27(6)
also
expands
the
20
fraudulent
practice
criminal
offense
to
include
when
a
person
21
willfully
submits
any
false
information,
document,
or
document
22
containing
false
information
in
support
of
an
application
23
for
a
refund,
credit,
exemption,
reimbursement,
rebate,
or
24
other
payment
or
benefit
with
the
intent
to
evade
taxes;
25
and
to
include
when
a
person
willfully
submits
any
false
26
information,
document,
or
document
containing
false
information
27
in
support
of
an
application
for
a
refund,
credit,
exemption,
28
reimbursement,
rebate,
or
other
payment
or
benefit
to
which
the
29
person
is
not
entitled.
30
A
person
who
commits
fraudulent
practice
under
Code
section
31
421.76(6),
in
addition
to
the
criminal
penalties,
is
liable
for
32
a
penalty
equal
to
75
percent
of
the
refund,
credit,
exemption,
33
reimbursement,
rebate,
or
other
payment
or
benefit
being
34
fraudulently
claimed.
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The
bill
enacts
new
Code
section
421.27(8)
which
defines
1
“imputed
Iowa
liability”
and
“specified
business”.
The
2
provision
applies
to
tax
years
beginning
on
or
after
January
3
1,
2022.
4
The
bill
enacts
new
Code
section
421.27(9)
by
adding
an
5
additional
penalty
under
Code
section
421.27
in
the
amount
6
of
$1,000
if
a
taxpayer
fails
to
file
a
tax
return
within
90
7
days
of
written
notice
by
the
department
that
the
taxpayer
is
8
required
to
file
such
a
return.
The
provision
applies
to
a
9
return
a
taxpayer
is
required
to
file
on
or
after
January
1,
10
2022.
11
The
bill
enacts
new
Code
section
421.27A
by
creating
a
12
criminal
offense
for
perjury.
Currently,
a
different
perjury
13
criminal
offense
exists
in
Code
section
720.2.
A
person
14
commits
perjury
under
the
following
circumstances
in
the
bill:
15
the
person
makes
a
document
containing
false
information
in
16
support
of
an
application
for
refund,
credit,
exemption,
17
reimbursement,
rebate,
or
other
payment
or
benefit
with
intent
18
to
evade
tax;
the
person
makes
a
document
containing
false
19
information
with
intent
to
unlawfully
receive
a
refund,
credit,
20
exemption,
reimbursement,
rebate,
or
other
payment
or
benefit,
21
to
which
the
person
is
not
entitled;
the
person
knowingly
makes
22
any
false
affidavit;
the
person
knowingly
swears
or
affirms
23
falsely
to
any
matter
or
thing
required
by
the
terms
of
title
X
24
of
the
Code
(financial
resources)
to
be
sworn
to
or
affirmed.
25
A
person
who
commits
the
criminal
offense
of
perjury
under
new
26
Code
section
421.27A
commits
a
class
“D”
felony.
A
class
“D”
27
felony
is
punishable
by
confinement
for
no
more
than
five
years
28
and
a
fine
of
at
least
$750
but
not
more
than
$7,500.
29
The
bill
enacts
new
Code
section
421.59
relating
to
a
30
power
of
attorney
or
other
authority
to
act
on
behalf
of
the
31
taxpayer.
The
bill
formalizes
a
process
for
the
following
32
persons
to
act
and
receive
information
on
behalf
of
and
33
exercise
all
of
the
rights
of
a
taxpayer,
regardless
of
whether
34
a
power
of
attorney
has
been
filed
with
the
department:
a
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guardian,
conservator,
or
custodian
appointed
by
the
court;
a
1
receiver
appointed
pursuant
to
Code
chapter
680;
an
individual
2
who
has
been
named
as
an
authorized
representative
on
a
3
fiduciary
return
filed
under
Code
section
422.14
(fiduciary
4
return)
or
Code
chapter
450
(inheritance
tax);
an
individual
5
holding
a
title
or
position
within
a
corporation,
association,
6
partnership,
or
other
business
entity;
a
licensed
attorney
7
who
has
appeared
on
behalf
of
the
taxpayer
or
the
taxpayer’s
8
estate;
and
a
parent
or
legal
guardian
of
the
taxpayer
who
has
9
not
reached
the
age
of
majority.
10
New
Code
section
421.59
also
authorizes
the
department
to
11
enter
into
a
memorandum
of
understanding
with
the
taxpayer
12
for
each
employee,
officer,
or
member
of
a
third-party
entity
13
engaged
with
or
otherwise
hired
by
a
taxpayer
to
manage
14
the
taxpayer’s
tax
matters,
in
lieu
of
requiring
a
power
of
15
attorney
for
each
person.
16
The
bill
enacts
new
Code
section
421.60(11)
which
allows
a
17
taxpayer
to
elect
to
receive
correspondence
electronically
from
18
the
department
rather
than
by
regular
mail.
19
The
amendments
to
Code
section
421.62
provide
that
the
20
regulations
relating
to
tax
return
preparers
apply
to
an
21
income
tax
return
or
claim
or
refund
under
Code
chapter
422
22
(individual,
corporate,
and
franchise
taxes),
but
do
not
apply
23
to
withholding
returns
under
Code
section
422.16.
24
The
amendment
to
Code
section
421.64
enhances
the
25
readability
of
the
Code
section.
26
The
amendment
to
Code
section
422.20(1)
adds
an
intent
27
element
“willfully
or
recklessly”
to
the
criminal
offense
28
related
to
the
unlawful
disclosure
of
tax
return
information
29
by
state
personnel
or
former
state
personnel.
A
person
who
30
commits
a
violation
under
Code
section
422.20(1)
commits
a
31
serious
misdemeanor.
A
serious
misdemeanor
is
punishable
by
32
confinement
for
no
more
than
one
year
and
a
fine
of
at
least
33
$315
but
not
more
than
$1,875.
34
The
amendment
to
Code
section
422.20(3)
provides
that
tax
35
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return
information
may
be
disclosed
to
authorized
individuals
1
pursuant
to
new
Code
section
421.59
created
in
the
bill.
2
The
bill
enacts
new
Code
section
422.20(3A)
permitting
the
3
director
of
revenue
to
disclose
the
tax
return
information
of
4
a
partnership,
limited
liability
company,
or
S
corporation
to
5
a
person
who
was
a
partner,
shareholder,
or
member
of
such
an
6
entity
during
any
part
of
the
period
covered
by
the
tax
return.
7
The
bill
enacts
new
Code
section
422.20(3B)
specifying
the
8
information
the
department
is
required
to
redact
prior
to
9
the
disclosure
of
the
record
in
an
appeal
or
contested
case.
10
The
bill
specifies
the
department
may
also
redact
other
tax
11
information
from
the
record
in
an
appeal
or
contested
case,
if
12
the
taxpayer
proves
by
clear
and
convincing
evidence
that
the
13
release
of
the
tax
information
would
disclose
a
trade
secret
14
or
be
an
unwarranted
invasion
of
personal
privacy.
The
bill
15
permits
the
department
to
disclose
information
that
is
required
16
to
be
redacted
if
the
department
determines
such
information
is
17
necessary
to
the
resolution
or
decision
of
the
case.
18
The
bill
enacts
new
Code
section
422.25(1)(c)
(income
tax)
19
that
provides
the
period
of
examination
and
determination
is
20
unlimited
under
title
X
(financial
resources)
in
any
action
21
by
the
department
to
recover
or
rescind
a
tax
expenditure
22
as
defined
in
Code
section
2.48,
or
any
other
incentive
or
23
assistance
administered
by
the
economic
development
authority.
24
The
amendment
takes
effect
upon
enactment.
The
bill
also
25
provides
that
it
is
the
intent
of
the
general
assembly
that
the
26
amendment
to
Code
section
422.25(1)
is
a
conforming
amendment
27
consistent
with
current
law,
and
that
the
amendment
does
not
28
change
the
application
of
current
law.
This
provision
takes
29
effect
upon
enactment.
30
The
amendment
to
Code
section
422.69
requires
that
all
31
fees,
taxes,
interest,
and
penalties
under
Code
chapter
422
32
(individual
income,
corporate,
and
franchise
taxes)
shall
33
be
paid
to
the
department
of
revenue
rather
than
the
state
34
treasurer.
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The
amendment
to
Code
section
422.72(1)(a)
adds
the
intent
1
element
of
“willfully
or
recklessly”
to
the
criminal
offense
2
related
to
the
unlawful
disclosure
by
state
personnel
or
3
former
state
personnel
of
the
business
affairs,
operations,
4
or
information
obtained
through
a
tax-related
investigation.
5
A
person
who
unlawfully
discloses
such
information
commits
a
6
serious
misdemeanor
under
Code
section
422.72(4).
A
serious
7
misdemeanor
is
punishable
by
confinement
for
no
more
than
one
8
year
and
a
fine
of
at
least
$315
but
not
more
than
$1,875.
9
The
bill
enacts
new
Code
section
422.72(7A),
a
similar
10
provision
to
new
Code
section
422.20(3B)
in
the
bill.
New
Code
11
section
422.72(7A)
specifies
the
information
the
department
12
is
required
to
redact
prior
to
the
disclosure
to
the
general
13
public
of
the
record
in
an
appeal
or
contested
case.
The
14
bill
specifies
that
the
department
may
also
redact
other
tax
15
information
from
the
record
in
an
appeal
or
contested
case,
if
16
the
taxpayer
proves
by
clear
and
convincing
evidence
that
the
17
release
of
the
tax
information
would
disclose
a
trade
secret
18
or
be
an
unwarranted
invasion
of
personal
privacy.
The
bill
19
permits
the
department
to
disclose
information
that
is
required
20
to
be
redacted
if
the
department
determines
such
information
is
21
necessary
to
the
resolution
or
decision
of
the
case.
22
The
bill
enacts
new
Code
section
423.37(4)
(sales
and
use
23
tax)
that
provides
the
period
of
examination
and
determination
24
is
unlimited
under
title
X
(financial
resources)
in
any
action
25
by
the
department
to
recover
or
rescind
a
tax
expenditure
26
as
defined
in
Code
section
2.48
or
any
other
incentive
or
27
assistance
administered
by
the
economic
development
authority.
28
The
amendment
takes
effect
upon
enactment.
The
bill
also
29
provides
that
it
is
the
intent
of
the
general
assembly
that
the
30
amendment
to
Code
section
423.37(4)
is
a
conforming
amendment
31
consistent
with
current
law,
and
that
the
amendment
does
not
32
change
the
application
of
current
law.
This
provision
takes
33
effect
upon
enactment.
34
The
amendment
to
Code
section
428A.1
(real
estate
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transfer
tax)
provides
that
a
county
recorder
shall
record
1
the
declaration
of
value
but
is
prohibited
from
charging
a
2
recording
fee
for
the
filing.
3
The
amendment
to
Code
section
441.48
enhances
the
4
readability
of
the
Code
section
by
specifying
the
board
of
5
supervisors
or
city
council,
as
applicable,
shall
provide
6
the
department
with
notice
of
intent
to
protest
prior
to
the
7
expiration
of
the
10
days’
notice
to
adjust
the
valuation
of
8
any
class
of
property
issued
by
the
department.
9
The
amendments
to
Code
sections
489.706,
490.1422,
501.813,
10
and
504.1423,
remove
the
role
of
the
department
in
the
11
application
for
reinstatement
by
a
limited
liability
company,
12
corporation,
cooperative,
or
nonprofit
corporation
after
the
13
dissolution
of
such
an
entity.
14
The
bill
enacts
new
Code
section
533.329(03)
by
specifying
15
that
a
money
and
credit
tax
return
prepared
by
a
credit
union
16
shall
be
on
a
form
prepared
by
the
department
of
revenue,
and
17
shall
be
filed
with
the
department
on
or
before
the
last
day
of
18
April.
19
The
bill
amends
Code
section
533.329(3)
relating
to
20
enforcement
of
the
moneys
and
credits
tax
paid
by
credit
21
unions.
22
SALES
AND
USE
TAX.
The
amendments
to
Code
sections
321G.4
23
(snowmobiles)
and
321I.4
(all-terrain
vehicles)
require
the
24
county
recorder
to
collect
sales
or
use
tax
if
an
owner
of
such
25
a
vehicle
is
unable
to
present
satisfactory
evidence
that
the
26
sales
or
use
tax
has
been
paid.
27
The
amendment
to
Code
section
423.2(6)(bs)
specifies
that
28
any
services
arising
from
or
related
to
software
sold
as
29
tangible
personal
property
are
subject
to
the
sales
tax.
30
The
amendment
to
Code
section
423.2(8)(d)(1)
specifies
that
31
the
following
is
not
subject
to
the
sales
tax:
the
retail
32
sale
of
a
specified
digital
product
and
a
service
where
the
33
specified
digital
product
is
essential
and
exclusive
to
the
use
34
of
the
service,
and
the
true
object
of
the
transaction
is
the
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service.
1
The
amendment
to
Code
section
423.3(3A)
provides
that
the
2
sales
price
from
the
sale
of
a
commercial
recreation
service
3
offering
the
opportunity
to
hunt
a
preserve
whitetail
is
4
exempt
from
the
sales
tax
if
the
sale
occurred
between
July
5
1,
2005,
and
December
31,
2015.
This
provision
takes
effect
6
upon
enactment
an
applies
retroactively
to
July
1,
2005.
The
7
bill
prohibits
any
refunds
resulting
from
the
amendment
to
Code
8
section
423.3(3A).
9
The
amendment
to
Code
section
423.3(31)
specifies
that
10
the
sales
price
of
tangible
personal
property
or
specified
11
digital
products
sold
to,
or
of
services
furnished
to
a
12
tribal
government
as
defined
in
Code
section
216A.161,
or
the
13
instrumentalities
of
such
tribal
government
are
exempt
from
the
14
sales
tax
under
most
circumstances.
15
The
bill
enacts
new
Code
section
423.3(60A)
exempting
from
16
the
sales
tax
the
sales
price
from
sales
of
diapers
eligible
17
for
medical
assistance
as
defined
in
Code
section
249A.2.
18
The
amendments
to
Code
section
423.3(80)(b)
and
(c)
specify
19
that
services
performed
pursuant
to
a
written
construction
20
contract
with
a
designated
exempt
entity
as
defined
in
Code
21
section
423.3(80)(a)(1)
are
exempt
from
the
sales
tax.
22
Currently,
the
construction
contract
is
not
required
to
be
a
23
written
contract
and
only
building
materials,
supplies,
and
24
equipment
used
in
such
a
contract
are
exempt
from
the
sales
25
tax.
The
bill
also
provides
that
the
building
materials,
26
supplies,
equipment,
and
services
are
exempt
from
the
sales
27
tax
only
if
the
property
that
is
subject
to
the
construction
28
project
becomes
public
property
or
the
property
of
a
designated
29
exempt
entity,
in
addition
to
the
requirement
that
the
30
exempt
items
be
completely
consumed
in
the
performance
of
the
31
construction
contract.
32
The
amendment
to
Code
section
423.4(1),
relating
to
refunds
33
of
sales
or
use
taxes
to
tax-exempt
entities,
enhances
the
34
readability
of
the
Code
section
by
defining
a
“designated
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exempt
entity”
and
thus
removing
repeated
references
to
each
1
exempt
entity
in
the
Code
section.
The
bill
also
adds
a
tribal
2
government
to
the
definition
of
a
designated
exempt
entity.
3
The
bill
strikes
the
terms
“goods,
wares,
and
merchandise”
and
4
uses
the
terms
“building
materials,
supplies,
and
equipment”
5
for
purposes
of
claiming
the
exemption,
when
a
designated
6
exempt
entity
makes
an
application
to
the
department
for
the
7
refund
of
the
sales
or
use
tax
upon
the
sales
price
of
all
8
sales
or
services
related
to
the
performance
of
a
written
9
construction
contract.
Additionally,
if
the
sales
price
of
10
all
building
materials,
supplies,
equipment,
or
services
11
related
to
the
performance
of
a
written
construction
contract
12
are
to
be
exempt
from
the
sales
or
use
tax
under
the
bill,
13
all
of
the
following
must
apply:
the
building
materials,
14
supplies,
equipment,
or
services
are
completely
consumed
in
the
15
performance
of
a
construction
project;
the
property
that
is
the
16
subject
of
the
construction
project
becomes
public
property
or
17
the
property
of
an
exempt
entity;
and
the
building
materials,
18
supplies,
equipment,
or
services
furnished
are
not
used
in
19
the
performance
of
a
construction
contract
with
a
designated
20
exempt
entity
in
connection
with
the
construction
of
certain
21
facilities.
22
The
amendments
to
Code
section
423.4(2)(a)
and
(b)
relate
23
to
construction
contracts
for
transportation
projects
by
24
specifying
the
contractor
shall
pay
sales
or
use
tax
for
the
25
services
related
to
such
contracts,
and
by
making
terminology
26
more
consistent
in
the
subsection.
27
The
amendments
to
Code
sections
423.4(2)
and
423.4(6)
make
28
the
terminology
more
consistent
with
other
changes
in
the
bill.
29
The
amendment
to
Code
section
423.5(1)(b)
strikes
the
30
imposition
of
a
6
percent
excise
tax
on
the
use
of
manufactured
31
housing,
or
the
purchase
price
if
such
housing
is
sold
in
the
32
form
of
tangible
personal
property,
or
the
installed
purchase
33
price
if
such
housing
is
sold
in
the
form
of
realty.
34
The
amendment
to
Code
section
423.29(1)
provides
that
a
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2641
retailer
maintaining
a
place
of
business
in
this
state
and
1
making
taxable
sales
shall,
at
the
time
of
making
such
sales,
2
collect
the
sales
tax.
The
bill
also
provides
that
it
is
3
the
intent
of
the
general
assembly
that
the
amendment
to
4
Code
section
423.29(1)
is
a
conforming
amendment
consistent
5
with
current
law,
and
that
the
amendment
does
not
change
the
6
application
of
current
law.
7
The
amendment
to
Code
section
423.33(1)
enhances
the
8
readability
of
the
Code
section
by
specifying
that
if
a
9
purchaser
fails
to
pay
sales
tax
to
a
retailer
required
to
10
collect
the
sales
tax,
then
the
purchaser
shall
pay
a
use
11
tax
directly
to
the
department.
The
bill
specifies
that
the
12
retailer
and
purchaser
are
jointly
liable
for
the
failure
13
to
pay
either
the
sales
or
use
tax
in
most
circumstances.
14
Additionally,
the
bill
provides
that
it
is
the
intent
of
the
15
general
assembly
that
the
addition
of
“joint
liability”
is
a
16
conforming
amendment
consistent
with
current
law,
and
that
17
the
amendment
does
not
change
the
application
of
current
law.
18
The
bill
provides
that
if
the
purchaser
pays
the
use
tax,
19
the
retailer
remains
liable
for
any
local
option
sales
and
20
services
tax
under
Code
chapter
423B
that
the
retailer
failed
21
to
collect.
22
INCOME
TAX.
The
bill
strikes
and
replaces
Code
section
23
422.9(3)(c).
The
bill
provides
that
a
taxpayer
may
elect
24
to
waive
the
entire
carryback
period
with
respect
to
an
25
Iowa
net
operating
loss
for
any
taxable
year,
in
the
manner
26
prescribed
by
the
department,
and
by
the
due
date
for
filing
27
the
taxpayer’s
return,
including
extensions
of
time.
After
the
28
election
is
made
for
any
taxable
year,
the
election
shall
be
29
irrevocable
for
such
taxable
year.
If
an
election
has
been
30
properly
made,
the
bill
provides
that
the
Iowa
net
operating
31
loss
shall
be
carried
forward
20
taxable
years.
32
The
amendment
to
Code
section
422.9(3)(d)
modifies
the
33
election
for
an
Iowa
farming
loss,
which
may
be
carried
back
34
for
five
taxable
years
prior
to
the
taxable
year
of
the
loss.
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The
bill
specifies
that
a
farming
business
that
has
an
Iowa
1
farming
loss
may
make
an
election
to
carry
back
the
loss
for
2
five
taxable
years,
in
the
manner
prescribed
by
the
department,
3
and
shall
be
made
by
the
due
date
for
filing
the
taxpayer’s
4
return,
including
extensions
of
time.
After
the
election
is
5
made
for
any
taxable
year,
the
bill
provides
the
election
shall
6
be
irrevocable
for
such
taxable
year.
7
The
division
applies
to
tax
years
beginning
on
or
after
8
January
1,
2020.
9
SCHOOL
TUITION
TAX
CREDIT
——
FUNDING.
Beginning
January
10
1,
2022,
the
bill
allows
the
total
approved
school
tuition
11
tax
credits,
currently
set
at
$15
million
for
calendar
year
12
2020,
to
increase
each
calendar
year,
if
the
amount
of
claimed
13
tax
credits
from
the
preceding
calendar
year
are
equal
to
or
14
greater
than
90
percent
of
the
total
approved
school
tuition
15
tax
credits
for
the
calendar
year,
until
reaching
a
maximum
of
16
amount
of
$20
million
per
calendar
year.
17
RESEARCH
ACTIVITIES
TAX
CREDIT.
The
amendments
to
Code
18
sections
15.335,
422.10,
and
422.33
update
references
to
the
19
Internal
Revenue
Code
relating
to
the
alternative
simplified
20
credit
for
increasing
research
activities.
21
The
division
takes
effect
upon
enactment
and
applies
22
retroactively
to
January
1,
2019,
for
tax
years
beginning
on
23
or
after
that
date.
24
PARTNERSHIP
AND
PASS-THROUGH
ENTITY
AUDITS
AND
REPORTING
25
OF
FEDERAL
ADJUSTMENTS.
The
amendment
to
Code
section
26
421.27(2)(c)
specifies
that
a
taxpayer
is
required
to
pay
27
a
penalty
of
5
percent
of
the
tax
due,
unless
the
taxpayer
28
provides
written
notification
to
the
department
of
a
federal
29
audit
while
it
is
in
progress
and
voluntarily
files
an
amended
30
return
which
includes
the
final
disposition
of
the
audit
31
and
final
federal
adjustments
to
taxes
paid
within
180
days
32
of
the
final
determination
date.
The
bill
defines
“final
33
determination
date”
to
generally
mean
the
first
day
on
which
no
34
federal
adjustments
to
taxes
arising
from
the
audit
or
other
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action
remain
to
be
finally
determined.
In
cases
of
a
final
1
federal
partnership
adjustment
arising
from
a
partnership
2
level
audit,
the
taxpayer
voluntarily
and
timely
complies
with
3
reporting
and
payment
requirements
under
new
Code
section
4
422.25A(4)
and
(5)
created
in
the
bill.
5
The
bill
enacts
new
Code
section
422.7(59)
providing
that
6
any
income
subtracted
from
federal
taxable
income
shall
be
7
added
back
in
computing
net
income
for
state
individual
income
8
tax
purposes
when
federal
adjustments
are
made
to
taxes
in
the
9
adjustment
year.
The
bill
defines
“adjustment
year”
to
mean
10
the
year
in
which
the
final
determination
of
the
adjustment
11
occurs.
12
The
amendment
to
Code
section
422.25
adds
definitions
to
the
13
Code
section
for
“federal
adjustment”,
“federal
adjustments
14
report”,
“final
determination
date”,
and
“final
federal
15
adjustment”.
16
The
bill
enacts
new
Code
section
422.25A
which
creates
a
17
process
for
audited
partnerships
and
their
direct
and
indirect
18
partners
to
report
final
federal
partnership
adjustments
to
19
the
department.
The
bill
provides
that
the
state
partnership
20
representative
for
the
reviewed
year
shall
have
sole
authority
21
to
act
on
behalf
of
the
partnership.
The
bill
creates
22
reporting
and
payment
requirements
for
audited
partnerships
23
and
their
partners
subject
to
final
federal
adjustments.
24
The
bill
permits
an
audited
partnership
or
a
tiered
partner
25
(partner
that
is
a
partnership
or
pass-through
entity)
to
make
26
irrevocable
elections
about
the
payment
of
any
adjustments,
27
and
specifies
the
consequences
of
making
certain
elections.
28
The
bill
permits
an
audited
partnership
or
tiered
partner
to
29
enter
into
an
agreement
with
the
department
to
use
alternative
30
reporting
and
payment
methods.
The
bill
permits
the
department
31
to
assess
additional
Iowa
income
tax,
interest,
and
penalties
32
arising
from
a
federal
partnership
adjustments
in
the
same
33
manner
as
provided
in
other
tax-related
provisions.
34
The
bill
enacts
new
Code
section
422.25B
that
requires
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the
state
partnership
representative
acting
on
behalf
of
the
1
partnership
for
the
reviewed
year
to
be
the
partnership’s
2
federal
partnership
representative
with
respect
to
an
action
3
required
or
permitted
to
be
taken
by
a
state
partnership
4
representative,
unless
the
partnership
designates
in
writing
in
5
the
manner
prescribed
by
the
department
another
person
to
act
6
as
the
state
partnership
representative.
7
The
bill
enacts
new
Code
section
422.25C
relating
to
8
partnership
or
pass-through
entity
audits
and
examinations.
9
The
bill
provides
that
for
tax
years
beginning
on
or
after
10
January
1,
2020,
any
adjustments
to
a
partnership’s
or
11
pass-through
entity’s
taxes
or
an
adjustment
allocated
to
a
12
partner’s
taxes
as
a
result
of
a
department
audit
shall
be
13
determined
at
the
partnership
or
pass-through
entity
level
in
14
the
same
manner
as
provided
by
federal
law.
The
bill
specifies
15
that
the
state
partnership
representative
shall
have
the
sole
16
authority
to
act
on
behalf
of
the
partnership
or
pass-through
17
entity
with
respect
to
any
actions
taken
due
to
the
audit,
18
including
appealing
decisions
to
the
director
of
revenue
or
19
seeking
judicial
review
of
the
director’s
decision.
The
20
provisions
of
new
Code
section
422.25C
may
be
applied
to
tax
21
years
beginning
before
January
1,
2020,
if
the
partnership
or
22
pass-through
entity
and
the
department
agree.
23
The
bill
enacts
new
Code
section
422.35(26)
providing
that
24
any
income
subtracted
from
federal
taxable
income
shall
be
25
added
back
in
computing
net
income
for
state
corporate
income
26
tax
purposes
when
federal
adjustments
are
made
to
taxes
in
the
27
adjustment
year.
The
bill
defines
“adjustment
year”
to
mean
28
the
year
in
which
the
final
determination
of
the
adjustment
29
occurs.
30
The
bill
amends
Code
section
422.39
by
specifying
that
Code
31
sections
relating
to
payments
of
interest,
computation
of
tax,
32
liens,
and
final
reports
of
fiduciaries
apply
to
not
just
33
payments
and
collections
but
to
reporting,
examinations,
and
34
assessments
with
respect
to
corporations
including
pass-through
35
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entities
organized
as
corporations.
1
The
amendment
to
Code
section
422.73
relates
to
credits
2
against
taxes
due
because
of
errors.
The
bill
changes
the
3
period
of
limitation
(statute
of
limitations)
for
a
claim
for
4
a
refund
of
or
a
credit
against
individual
income
tax
by
a
5
taxpayer
to
one
year
from
the
final
determination
date
of
any
6
final
adjustment
with
respect
to
the
particular
tax
year
to
7
claim
an
income
tax
refund
or
credit.
Currently,
a
claim
for
8
a
refund
of
or
a
credit
against
the
individual
income
tax
by
9
a
taxpayer
is
six
months
from
the
final
disposition
of
any
10
income
tax
matter
between
the
taxpayer
and
the
internal
revenue
11
service.
The
bill
makes
other
changes
relating
to
agreements
12
entered
into
by
the
department
and
the
internal
revenue
13
service
for
the
transmission
of
federal
income
tax
reports
on
14
individuals
who
have
been
involved
in
an
income
tax
matter
with
15
the
internal
revenue
service.
16
The
division
applies
to
federal
adjustments
and
federal
17
partnership
adjustments
that
have
a
final
determination
date
18
after
the
effective
date
of
the
division.
19
SETOFF
PROCEDURES
——
RULEMAKING
——
EFFECTIVE
DATE.
The
20
bill
modifies
the
effective
date
of
either
Senate
File
2328
or
21
House
File
2565
(setoff
procedures),
by
providing
that
either
22
Senate
File
2328
or
House
File
2565,
if
enacted,
take
effect
23
on
the
later
of
January
1,
2021,
or
the
effective
date
of
the
24
rules
adopted
by
the
department
of
revenue
implementing
the
25
bill
other
than
the
adopting
of
transitional
rules
by
the
26
department.
This
provision
takes
effect
upon
enactment,
and
27
applies
retroactively
to
the
effective
date
of
either
Act.
28
BUSINESS
INTEREST
EXPENSE
DEDUCTION.
The
federal
Tax
Cuts
29
and
Jobs
Act
(TCJA)
created
a
new
limitation
on
the
deduction
30
of
business
interest
expense
for
tax
years
beginning
on
or
31
after
January
1,
2018.
Currently,
the
state
couples
with
32
federal
law
limiting
the
deduction
of
business
interest
expense
33
for
tax
years
beginning
on
or
after
January
1,
2019.
34
The
bill
decouples,
for
Iowa
individual
and
corporate
income
35
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tax
purposes,
from
the
federal
limitation
on
deduction
of
1
business
interest
expenses
for
tax
years
beginning
on
or
after
2
January
1,
2020.
3
The
decoupling
from
the
federal
limitation
on
deduction
4
of
business
interest
expense
does
not
apply
during
any
tax
5
year
in
which
the
additional
first-year
depreciation
allowance
6
authorized
in
section
168(k)
of
the
Internal
Revenue
Code
7
(bonus
depreciation)
applies
in
computing
net
income
for
state
8
tax
purposes.
9
For
any
tax
year
in
which
a
taxpayer
is
not
permitted
to
10
deduct
any
amount
of
interest
expense
paid
or
accrued
in
a
11
previous
taxable
year
due
to
the
allowance
of
the
additional
12
first-year
depreciation,
the
bill
prohibits
the
deduction
of
13
any
amount
of
interest
expense
paid
or
accrued
in
a
previous
14
taxable
year
in
the
current
taxable
year
by
reason
of
the
15
carryforward
of
disallowed
business
interest
provisions
of
16
section
163(j)(2)
of
the
Internal
Revenue
Code,
if
either
of
17
the
following
apply:
the
interest
expense
was
originally
paid
18
or
accrued
during
a
tax
year
in
which
there
was
a
decoupling
19
from
the
federal
limitation
on
business
expense,
or
the
20
interest
expense
was
originally
paid
or
accrued
during
a
tax
21
year
in
which
the
taxpayer
was
not
required
to
file
an
Iowa
22
return.
23
GLOBAL
INTANGIBLE
LOW-TAXED
INCOME
(GILTI).
Federal
24
law
includes
in
a
taxpayer’s
gross
income
global
intangible
25
low-taxed
income
(GILTI)
as
defined
in
section
951A
of
the
26
Internal
Revenue
Code,
subject
to
a
deduction
equal
to
50
27
percent
of
the
corporation’s
GILTI
under
section
250(a)(1)(B)
28
of
the
Internal
Revenue
Code.
The
bill
enacts
new
Code
section
29
422.35(27)
that
allows
a
corporate
taxpayer
to
deduct
GILTI
30
under
section
951A
of
the
Internal
Revenue
Code.
31
RESCISSION
OF
RULES.
The
division
rescinds
rules
relating
32
to
GILTI
under
section
951A
of
the
Internal
Revenue
Code.
33
The
division
takes
effect
upon
enactment,
and
applies
34
retroactively
to
January
1,
2019,
for
tax
years
beginning
on
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or
after
that
date.
1
IOWA
REINVESTMENT
ACT.
Code
chapter
15J,
the
“Iowa
2
Reinvestment
Act”,
authorizes
municipalities
(a
city
or
3
a
county)
to
establish
reinvestment
districts
and
receive
4
remittances
of
specified
amounts
of
state
sales
tax
and
state
5
hotel
and
motel
tax
revenues
collected
in
those
districts
6
for
use
in
undertaking
projects
in
the
district.
Eligible
7
municipalities
must
seek
approval
from
the
economic
development
8
authority
board
to
establish
a
reinvestment
district.
Code
9
chapter
15J
currently
prohibits
the
board
from
approving
a
10
proposed
district
plan
on
or
after
July
1,
2018,
and
imposes
a
11
$100
million
aggregate
limit
of
state
sales
tax
revenues
and
12
state
hotel
and
motel
tax
revenues
that
may
be
approved
by
the
13
board
for
remittance
to
all
municipalities.
14
The
bill
establishes
an
additional
period
of
time
for
the
15
board
to
approve
reinvestment
districts,
beginning
July
1,
16
2020,
and
ending
July
1,
2025,
and
establishes
an
additional
17
$100
million
aggregate
limit
of
state
sales
tax
revenues
and
18
state
hotel
and
motel
tax
revenues
that
may
be
approved
by
the
19
board
for
remittance
to
all
municipalities
for
those
districts
20
approved
on
or
after
July
1,
2020,
but
before
July
1,
2025.
21
The
bill
also
expands
the
definition
of
“municipality”
22
to
include
a
joint
board
or
other
legal
entity
established
23
or
designated
in
an
agreement
between
two
or
more
contiguous
24
cities
or
counties
pursuant
to
Code
chapter
28E.
The
bill
also
25
makes
corresponding
changes
to
other
provisions
of
Code
chapter
26
15J
to
reflect
such
municipalities’
authority
under
the
Iowa
27
reinvestment
Act.
28
As
part
of
the
criteria
for
establishing
a
district,
current
29
law
requires
the
district
to
consist
of
contiguous
parcels
not
30
to
exceed
25
acres
in
total.
For
districts
approved
under
the
31
bill
on
or
after
July
1,
2020,
the
area
comprising
the
district
32
may
consist
of
contiguous
parcels
not
to
exceed
75
acres
in
33
total.
34
Part
of
the
approval
criteria
for
a
district
includes
the
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requirement
that
the
amount
of
proposed
capital
investment
1
within
the
proposed
district
related
to
retail
businesses
does
2
not
exceed
50
percent
of
the
total
capital
investment
for
all
3
proposed
projects
in
the
proposed
district
plan,
excluding
“new
4
lessors”,
as
defined
in
Code
section
15J.2,
from
the
definition
5
of
“retail
business”.
The
bill
adds
businesses
engaged
in
an
6
activity
subject
to
the
sales
tax
under
Code
section
423.2(3)
7
to
that
exclusion
from
the
definition
of
“retail
business”.
8
The
bill
also
modifies
the
calculation
of
new
state
sales
9
tax
revenue
and
new
hotel
and
motel
tax
revenue
that
are
to
be
10
remitted
to
a
reinvestment
district
established
on
or
after
11
July
1,
2020,
to
subtract
out
specified
amounts
of
sales
based
12
on
sales
data
from
existing
businesses
classified
as
“new
13
retail
establishments”
or
“new
lessors”,
within
the
meaning
of
14
Code
chapter
15J.
15
Code
section
15J.7
prohibits
revenues
received
by
a
16
municipality
from
being
used
for
a
project
that
includes
17
relocation
of
a
commercial
or
industrial
enterprise
not
18
presently
located
within
the
municipality.
“Relocation”
19
is
defined
in
Code
section
15J.7
to
mean
the
closure
or
20
substantial
reduction
of
an
enterprise’s
existing
operations
21
in
one
area
of
the
state
and
the
initiation
of
substantially
22
the
same
operation
in
the
same
county
or
a
contiguous
county
in
23
the
state.
The
bill
provides,
however,
that
if
the
initiation
24
of
operations
includes
an
expanded
scope
or
nature
of
the
25
enterprise’s
existing
operations,
the
new
operation
shall
not
26
be
considered
to
be
“substantially
the
same
operation”.
27
Code
section
15J.8
provides
that
as
of
the
date
20
years
28
after
the
district’s
commencement
date,
the
department
of
29
revenue
shall
cease
to
deposit
state
sales
tax
revenues
and
30
state
hotel
and
motel
tax
revenues
into
the
district’s
account
31
within
the
fund,
unless
the
municipality
dissolves
the
district
32
prior
to
that
date.
The
bill
provides
that,
upon
request
of
33
the
municipality
prior
to
the
dissolution
of
the
district,
34
and
following
a
determination
by
the
economic
development
35
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authority
board
that
the
amounts
of
new
state
sales
tax
revenue
1
and
new
state
hotel
and
motel
tax
revenue
deposited
in
the
2
municipality’s
reinvestment
project
fund
are
substantially
3
lower
than
the
amounts
established
by
the
board
when
the
4
district
was
approved,
the
board
may
extend
the
district’s
5
20-year
period
of
time
for
depositing
and
receiving
revenues
by
6
up
to
five
additional
years
if
such
an
extension
is
in
the
best
7
interest
of
the
public.
8
COMPUTER
PERIPHERALS.
ThE
bill
exempts
from
the
sales
9
and
use
tax
certain
sales
of
computer
peripherals.
The
bill
10
exempts
computer
peripherals
in
the
same
manner
as
computers
11
are
exempted
from
the
sales
and
use
tax,
and
excludes
from
the
12
exemption
certain
computer
peripheral
sales
in
the
same
manner
13
as
computers
are
excluded
from
the
exemption.
14
The
bill
defines
“computer
peripheral”
to
mean
an
ancillary
15
device
connected
to
the
computer
digitally,
by
cable,
or
by
16
other
medium,
used
to
put
information
into
or
get
information
17
out
of
a
computer.
18
The
bill
also
makes
changes
to
Code
section
423.3(47)
to
19
enhance
the
readability
of
the
subsection.
20
By
operation
of
Code
section
423.6,
an
item
exempt
from
the
21
imposition
of
the
sales
tax
is
also
exempt
from
the
use
tax
22
imposed
in
Code
section
423.5.
23
The
bill
also
rescinds
rules
of
the
department
of
24
revenue
relating
to
the
definition
of
computer
in
the
Iowa
25
administrative
code.
26
SCHOOL
TUITION
ORGANIZATION
——
CORPORATIONS.
Currently,
27
the
maximum
amount
of
school
tuition
organization
tax
credits
28
that
may
be
approved
for
corporations
in
the
aggregate,
shall
29
not
exceed
25
percent
of
the
total
amount
of
school
tuition
30
organization
tax
credits
allowable
in
a
calendar
year
in
31
Code
section
422.11S(8).
The
bill
permits
corporations
in
32
the
aggregate
to
be
awarded
more
than
the
25
percent
of
the
33
allowable
school
tuition
organization
tax
credits
in
a
calendar
34
year
by
striking
the
25
percent
limitation.
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BROADBAND
INFRASTRUCTURE
TAXATION.
The
bill
relates
to
1
state
taxation
of
broadband
grants
provided
to
a
communications
2
service
provider.
Under
the
bill,
a
communications
service
3
provider
given
a
federal,
state,
or
local
broadband
grant
may
4
exclude
from
the
computation
of
the
individual
or
corporate
5
state
income
tax,
as
applicable,
the
amount
of
the
grant
to
the
6
extent
the
grant
is
subject
to
federal
individual
or
corporate
7
income
tax
under
section
118(b)(2)
of
the
Internal
Revenue
8
Code,
if
the
grant
is
used
to
install
broadband
infrastructure
9
that
facilitates
broadband
service
in
targeted
service
areas
10
at
or
above
the
download
and
upload
speeds
specified
in
the
11
definition
of
targeted
service
area
in
Code
section
8B.1.
12
The
bill
defines
“broadband
infrastructure”,
“communications
13
service
provider”,
and
“targeted
service
area”.
14
The
bill
permits
refunds
of
taxes,
interest,
or
penalties
15
arising
from
claims
resulting
from
the
enactment
of
the
bill
16
for
broadband
service
grants
that
were
taxable
during
the
tax
17
year
beginning
January
1,
2019,
but
before
January
1,
2020,
and
18
requires
such
claims
to
be
filed
prior
to
October
1,
2020.
19
The
bill
takes
effect
upon
enactment
and
applies
20
retroactively
to
tax
years
beginning
on
or
after
January
1,
21
2019.
22
LOCAL
ASSESSORS.
This
division
of
the
bill
relates
to
the
23
appointment
and
duties
of
local
assessors.
24
Code
section
441.6
establishes
the
process
for
filling
the
25
office
of
county
or
city
assessor.
When
a
vacancy
occurs,
the
26
examining
board
requests
the
director
of
revenue
to
forward
27
a
register
containing
the
names
of
all
individuals
eligible
28
for
appointment
as
assessor.
The
examining
board
then
makes
29
a
written
report
of
the
examination
and
submits
the
report
30
together
with
the
names
of
those
individuals
certified
by
the
31
director
of
revenue
to
the
conference
board.
Upon
receipt
32
of
the
report
of
the
examining
board,
the
conference
board
33
appoints
an
assessor
from
the
register
of
eligible
candidates
34
and
gives
written
notice
to
the
director
of
revenue
of
the
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appointment.
1
Under
the
bill,
the
appointee
selected
by
the
conference
2
board
shall
not
assume
the
office
of
city
or
county
assessor
3
until
the
appointment
is
confirmed
by
the
director
of
revenue.
4
If
the
director
of
revenue
rejects
the
appointment,
the
5
examining
board
must
conduct
a
new
examination
and
submit
a
new
6
report
to
the
conference
board.
7
The
bill
also
provides
that
an
assessor
or
deputy
assessor
8
shall
not
personally
assess
a
property
if
the
person
or
a
9
member
of
the
person’s
immediate
family
owns
the
property,
10
has
a
financial
interest
in
the
property,
or
has
a
financial
11
interest
in
the
entity
that
owns
the
property.
12
Code
section
441.41
authorizes
the
conference
board
to
13
employ
special
counsel
to
assist
the
city
legal
department
or
14
the
county
attorney
in
litigation
dealing
with
assessments.
15
The
bill
provides
that
such
authority
is
subject
to
review
16
and
prior
approval
by
the
city
legal
department
or
the
county
17
attorney,
as
applicable.
18
PAYCHECK
PROTECTION
PROGRAM
(PPP).
The
bill
excludes
from
19
the
calculation
of
Iowa
income
tax
for
certain
fiscal
filers,
20
such
a
taxpayer’s
federal
paycheck
protection
program
loan
21
proceeds
that
were
forgiven
and
excluded
from
federal
gross
22
income.
This
division
takes
effect
upon
enactment.
23
FOOD
BANKS
——
SALES
TAX
EXEMPTION.
The
bill
exempts
from
24
the
sales
tax
the
purchase
price
from
the
sale
or
rental
of
25
tangible
personal
property
or
specified
digital
products,
or
26
services
furnished,
to
a
nonprofit
food
bank
if
the
property
27
or
services
are
to
be
used
by
the
nonprofit
food
bank
for
a
28
charitable
purpose.
“Nonprofit
food
bank”
is
defined
in
the
29
bill.
30
By
operation
of
Code
section
423.6,
an
item
exempt
from
the
31
imposition
of
the
sales
tax
is
also
exempt
from
the
use
tax
32
imposed
in
Code
section
423.5.
33
PRO
RATA
SHARE
OF
ENTITY-LEVEL
INCOME
TAX
PAID
BY
34
SHAREHOLDERS
OR
BENEFICIARIES.
The
bill
provides
that
a
35
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resident
partner
of
an
entity
taxed
as
a
partnership,
a
1
resident
shareholder
of
an
S
corporation,
or
a
resident
2
beneficiary
of
an
estate
or
trust
shall
be
deemed
to
have
paid
3
the
resident
partner’s,
resident
shareholder’s,
or
resident
4
beneficiary’s
pro
rata
share
of
entity-level
income
tax
paid
5
by
the
partnership,
S
corporation,
estate,
or
trust
to
another
6
state
or
foreign
country
on
income
that
is
also
subject
to
7
Iowa
personal
income
tax,
but
only
if
the
entity
provides
the
8
resident
partner,
resident
shareholder,
or
resident
beneficiary
9
a
statement
that
documents
the
resident
partner’s,
resident
10
shareholder’s,
or
resident
beneficiary’s
share
of
the
income
11
derived
in
the
other
state
or
foreign
country,
the
income
tax
12
liability
of
the
entity
in
that
state
or
foreign
country,
and
13
the
income
tax
paid
by
the
entity
to
that
state
or
foreign
14
country.
15
The
bill
also
provides
that
a
resident
shareholder
of
a
16
regulated
investment
company
shall
be
deemed
to
have
paid
the
17
shareholder’s
pro
rata
share
of
entity-level
income
tax
paid
by
18
the
regulated
investment
company
to
another
state
or
foreign
19
country
and
treated
as
paid
by
its
shareholders
pursuant
to
20
section
853
of
the
Internal
Revenue
Code,
but
only
if
the
21
regulated
investment
company
provides
the
resident
shareholder
22
a
statement
that
documents
the
resident
shareholder’s
share
of
23
the
income
derived
in
the
other
state
or
foreign
country,
the
24
income
tax
liability
of
the
regulated
investment
company
in
25
that
state
or
foreign
country,
and
the
income
tax
paid
by
the
26
regulated
investment
company
to
that
state
or
foreign
country.
27
HORSE
RACING
——
DISASTER
EMERGENCY
PROCLAMATION.
Code
28
section
99D.7,
concerning
the
powers
of
the
racing
and
gaming
29
commission,
is
amended
to
grant
the
commission
the
power
to
30
alter
requirements
relating
to
live
horse
racing
seasons
31
and
purse
moneys
in
the
event
of
a
proclamation
of
disaster
32
emergency
by
the
governor
ordering
the
closure
of
the
licensed
33
racetrack
facility
that
conducts
live
horse
racing.
34
PORT
AUTHORITIES.
Under
Code
chapter
28J,
the
bill
modifies
35
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the
defined
terms
“authorized
purposes”,
“city”,
“cost”,
1
“facility”
or
“port
authority
facility”,
“governmental
agency”,
2
“political
subdivision”,
“political
subdivisions
comprising
the
3
port
authority”,
“port
authority
revenue
bonds”
or
“revenue
4
bonds”,
and
“revenues”.
The
bill
creates
and
defines
the
terms
5
“net
revenues”
and
“public
works
project”.
6
The
bill
allows
for
the
creation
of
a
port
authority
by
one
7
or
more
political
subdivisions,
rather
than
by
two
or
more
8
political
subdivisions.
The
bill
provides
for
the
creation
of
9
a
port
authority
anywhere
in
this
state
regardless
of
proximity
10
to
a
body
of
water.
The
bill
also
provides
that
a
port
11
authority
is
an
entity
separate
from
the
political
subdivisions
12
comprising
the
port
authority.
The
powers
granted
to
the
13
port
authority
may
be
exercised
whether
or
not
the
political
14
subdivisions
comprising
the
port
authority
may
exercise
those
15
same
powers.
16
The
bill
provides
that
the
political
subdivisions
17
comprising
the
port
authority
may
make
contributions
to
the
18
port
authority,
in
addition
to
appropriating
or
expending
19
public
funds
as
set
forth
in
current
law,
to
finance
or
20
subsidize
the
operation
and
authorized
purposes
of
the
port
21
authority,
and
pay
the
costs
and
expenses
incurred
by
the
22
port
authority
in
carrying
out
any
operations
or
authorized
23
purposes
of
the
port
authority.
Under
the
bill,
political
24
subdivisions
comprising
the
port
authority
are
allowed
to
25
enter
into
agreements
with
each
other
or
the
port
authority
26
providing
for
the
contributions
to
the
port
authority
to
be
27
made
by
each
of
the
political
subdivisions
and
providing
for
28
the
obligations
of
each
of
the
political
subdivisions
to
pay,
29
finance,
or
subsidize
the
costs
and
expenses
incurred
by
the
30
port
authority.
31
The
bill
makes
conforming
changes
to
Code
section
28J.5
32
relating
to
the
membership
of
the
board
of
directors
of
a
port
33
authority
created
by
one
political
subdivision.
The
bill
34
further
provides
that
any
political
subdivisions
comprising
the
35
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port
authority
may
appoint
a
successor
for
the
remaining
term
1
of
a
removed
director.
2
The
bill
modifies
the
powers
of
a
port
authority
as
it
3
relates
to
its
property
regardless
of
whatever
the
property
is
4
within
or
outside
the
territory
of
the
political
subdivisions
5
comprising
the
port
authority
if
in
furtherance
of
any
6
authorized
purpose.
The
bill
further
allows
a
port
authority
7
to
enter
into
loan
agreements
and
lease
contracts,
as
provided
8
for
in
the
bill,
and
to
exercise
the
same
powers
granted
to
9
cities
under
Code
chapters
28F
(joint
financing
of
public
works
10
and
facilities)
and
384
(city
finance).
11
The
bill
allows
a
port
authority
to
use
its
revenues
for
12
principal
on
borrowed
money
and
payments
under
lease
contracts.
13
The
bill
further
provides
that
a
contract
regarding
rentals
or
14
charges
for
use
of
services
of
a
port
authority
may
provide
15
for
acquisition
of
the
port
authority
facility
subject
to
the
16
provisions
of
any
resolution
authorizing
the
issuance
of
port
17
authority
revenue
bonds,
loan
agreements,
lease
contracts,
or
18
any
trust
agreement
securing
such
bonds,
loan
agreements,
or
19
lease
contracts.
20
The
bill
allows
a
governmental
agency
to
cooperate
with
the
21
port
authority
in
the
operation
of
a
port
authority
facility.
22
The
bill
provides
that
real
property
that
is
purchased
by
a
23
port
authority
is
not
subject
to
certain
property
taxes.
24
Under
the
provisions
of
the
bill,
a
port
authority
may
enter
25
into
certain
loan
agreements
and
lease
contracts.
A
port
26
authority
may
enter
into
loan
agreements
to
borrow
money
to
27
pay
the
costs
of
any
facility,
or
parts
thereof,
or
to
refund
28
other
obligations
which
are
payable
from
the
net
revenues
of
29
the
port
authority
at
lower,
the
same,
or
higher
rates
of
30
interests.
A
port
authority
may
enter
into
lease
contracts
31
for
real
or
personal
property
comprising
a
port
authority
32
facility,
but
can
only
lease
property
for
a
term
that
does
not
33
exceed
the
economic
life
of
the
property.
The
bill
details
34
certain
provisions
similar
to
those
in
loan
agreements
and
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lease
contracts
between
private
parties
that
a
loan
agreement
1
or
lease
contract
entered
into
by
a
port
authority
may
contain.
2
The
bill
provides
certain
conditions
for
when
a
loan
agreement
3
or
lease
contract
stipulates
that
a
portion
of
the
payments
4
be
applied
as
interest.
The
board
of
a
port
authority
can
5
authorize
a
loan
agreement
or
lease
contract,
along
with
6
prescribing
additional
terms
and
provisions,
by
resolution
and
7
such
resolution
becomes
part
of
the
loan
agreement
or
lease
8
contract.
A
loan
agreement
or
lease
contract
in
which
a
port
9
authority
is
a
party
is
an
obligation
of
political
subdivisions
10
comprising
the
port
authority.
A
contract
for
construction
by
11
a
private
party
of
property
to
be
leased
by
a
port
authority
12
is
not
a
contract
for
public
improvement,
except
under
certain
13
conditions.
14
The
bill
authorizes
loan
agreements
or
lease
contracts
to
be
15
secured
by
a
trust
agreement
between
the
port
authority
and
a
16
corporate
trustee,
and
further
provides
how
the
trust
agreement
17
functions.
18
The
bill
provides
that
loan
agreements
and
lease
contracts
19
authorized
by
the
bill
do
not
constitute
a
debt,
indebtedness,
20
or
a
pledge
of
faith
and
credit
of
the
port
authority
or
of
21
the
state
or
any
political
subdivisions
of
the
state
nor
do
22
any
such
agreements
give
rise
to
pecuniary
liability
as
to
23
these
entities
or
act
as
a
charge
against
the
general
credit
24
or
taxing
power
of
the
port
authority.
The
bill
provides
that
25
any
political
subdivisions
comprising
the
port
authority,
the
26
state,
or
any
political
subdivisions
of
the
state,
and
the
27
holders
or
owners
of
obligations
owed
under
a
loan
agreement
28
or
lease
contract
cannot
have
taxes
levied
by
the
state
or
29
by
a
taxing
authority
of
a
governmental
agency
of
the
state
30
for
the
payment
of
the
principal
of
or
interest
owed
on
such
31
obligations.
32
Under
the
bill,
the
sole
remedy
for
a
breach
or
default
of
33
any
port
authority
loan
agreement
or
lease
contract
authorized
34
by
the
bill
is
a
proceeding
in
law
or
in
equity
to
enforce
and
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compel
performance
of
required
duties
and
the
terms
of
the
1
resolution
authorizing
the
loan
agreement
or
lease
contract,
2
or
to
obtain
the
appointment
of
a
receiver
to
take
possession
3
and
operate
the
port
authority
to
perform
the
required
duties
4
and
terms.
An
action
cannot
be
brought
after
15
days
from
the
5
time
the
loan
agreement
or
lease
contract
is
authorized
by
the
6
port
authority
if
the
action
regards
the
legality
of
the
loan
7
agreement
or
lease
contract,
the
power
of
the
port
authority
8
to
authorize
the
loan
agreement
or
lease
contract,
or
the
9
effectiveness
of
any
proceeding
relating
to
the
authorization
10
of
the
loan
agreement
or
lease
contract.
11
The
bill
makes
conforming
changes
to
Code
sections
28J.8,
12
28J.11,
28J.15,
28J.17,
28J.25,
and
28J.26.
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