Bill Text: IA HF621 | 2015-2016 | 86th General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: A bill for an act relating to the administration of the streamlined sales and use tax agreement by the department of revenue. Effective 7-1-15.

Sponsorship: Committee Bill

Status: (Passed) 2015-05-01 - Signed by Governor. H.J. 976. [HF621 Detail]

Download: Iowa-2015-HF621-Introduced.html

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House File 621 - Introduced




                                 HOUSE FILE       
                                 BY  COMMITTEE ON WAYS AND
                                     MEANS

                                 (SUCCESSOR TO HSB 218)

                                      A BILL FOR

  1 An Act relating to the administration of the streamlined sales
  2    and use tax agreement by the department of revenue.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN



  1  1    Section 1.  Section 423.3, subsection 57, paragraph f,
  1  2 subparagraph (3), Code 2015, is amended by adding the following
  1  3 new subparagraph division:
  1  4    NEW SUBPARAGRAPH DIVISION.  (e)  Food sold that ordinarily
  1  5 requires additional cooking by the consumer prior to
  1  6 consumption.
  1  7    Sec. 2.  Section 423.52, Code 2015, is amended by adding the
  1  8 following new subsection:
  1  9    NEW SUBSECTION.  3.  a.  Sellers and certified service
  1 10 providers are relieved from liability to this state or its
  1 11 local taxing jurisdictions for having charged and collected
  1 12 the incorrect amount of sales or use tax resulting from the
  1 13 seller or certified service provider relying on erroneous data
  1 14 provided in the state's taxability matrix.
  1 15    b.  Sellers and certified service providers that rely
  1 16 upon a prior version of the state's taxability matrix shall
  1 17 be relieved of liability to the state and its local taxing
  1 18 jurisdictions until the first day of the calendar month that
  1 19 is at least 30 days after notice of a change to the taxability
  1 20 matrix is submitted by the state to the governing board.
  1 21                           EXPLANATION
  1 22 The inclusion of this explanation does not constitute agreement with
  1 23 the explanation's substance by the members of the general assembly.
  1 24    This bill relates to the administration of the sales and
  1 25 use taxes under the streamlined sales and use tax agreement
  1 26 (agreement).
  1 27    Iowa is a member of the agreement, which is an effort to
  1 28 administer state sales and use taxes in all participating
  1 29 states according to the same simplified system.  Under
  1 30 the agreement, Iowa must periodically make changes in the
  1 31 administration of the sales and use taxes in order to remain
  1 32 in compliance.
  1 33    Under current law, prepared food is subject to the sales and
  1 34 use tax.  The bill amends the definition of "prepared food" to
  1 35 exclude food that ordinarily requires additional cooking by the
  2  1 consumer prior to consumption.
  2  2    The bill also provides liability relief to sellers and
  2  3 certified service providers that rely on erroneous or outdated
  2  4 information in the state's taxability matrix.  A taxability
  2  5 matrix is a comprehensive list of items subject to and exempt
  2  6 from the sales and use tax that is required to be maintained by
  2  7 each member state of the agreement.  The bill provides that if
  2  8 Iowa amends an existing provision of its taxability matrix, a
  2  9 seller or certified service provider is relieved from liability
  2 10 to the state and its local taxing jurisdictions for having
  2 11 charged and collected the incorrect amount of sales or use tax
  2 12 according to the prior version of the taxability matrix.  The
  2 13 liability relief extends until the first day of the calendar
  2 14 month that is at least 30 days after the state submits to the
  2 15 governing board of the agreement the notice of change to the
  2 16 taxability matrix.
  2 17    The bill also provides that sellers and certified service
  2 18 providers are relieved from liability to the state or its local
  2 19 taxing jurisdictions for having charged and collected the
  2 20 incorrect amount of sales or use tax after relying on erroneous
  2 21 data provided in the state's taxability matrix.
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