Bill Text: IA HSB213 | 2015-2016 | 86th General Assembly | Introduced
Bill Title: A study bill concerning the apportionment of certain gross receipts of a broadcaster for purposes of Iowa income tax, and including effective date and applicability provisions.
Spectrum: Unknown
Status: (Introduced - Dead) 2015-03-31 - Voted - Ways and Means. [HSB213 Detail]
Download: Iowa-2015-HSB213-Introduced.html
House
Study
Bill
213
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
WAYS
AND
MEANS
BILL
BY
CHAIRPERSON
SANDS)
A
BILL
FOR
An
Act
concerning
the
apportionment
of
certain
gross
receipts
1
of
a
broadcaster
for
purposes
of
Iowa
income
tax,
and
2
including
effective
date
and
applicability
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
TLSB
1952YC
(1)
86
mm/sc
H.F.
_____
Section
1.
Section
422.33,
subsection
2,
paragraph
a,
1
subparagraph
(2),
Code
2015,
is
amended
by
adding
the
following
2
new
subparagraph
division:
3
NEW
SUBPARAGRAPH
DIVISION
.
(0e)
(i)
Notwithstanding
4
subparagraph
division
(c),
where
income
is
derived
by
a
5
broadcaster
from
broadcasting,
the
part
attributable
to
6
business
within
the
state
shall
be
in
the
proportion
that
the
7
gross
receipts
from
broadcasting
derived
from
customers
whose
8
commercial
domicile
is
in
this
state
bears
to
the
total
gross
9
receipts
from
broadcasting.
10
(ii)
Notwithstanding
subparagraph
subdivision
(i)
or
11
subparagraph
division
(c),
where
income
is
derived
by
a
12
broadcaster
from
national
or
local
political
advertising
that
13
is
directed
exclusively
at
one
or
more
markets
in
this
state,
14
all
gross
receipts
from
such
advertising
shall
be
attributable
15
to
business
within
the
state.
16
(iii)
For
purposes
of
this
subparagraph
division:
17
(A)
“Broadcaster”
means
a
taxpayer
who
is
engaged
in
18
the
business
of
broadcasting.
“Broadcaster”
includes
a
19
television
network,
a
cable
program
network,
and
a
television
20
distribution
company.
“Broadcaster”
does
not
include
a
cable
21
system
operator,
a
direct
broadcast
satellite
system
operator,
22
or
a
television
or
radio
station
licensed
by
the
federal
23
communications
commission.
24
(B)
“Broadcasting”
means
the
transmission
of
film
25
programming
by
an
electronic
or
other
signal
conducted
by
26
microwaves,
wires,
lines,
coaxial
cables,
wave
guides,
fiber
27
optics,
satellite
transmissions,
or
through
any
other
means
of
28
communication
directly
or
indirectly
to
viewers
and
listeners.
29
(C)
“Customer”
means
a
person
who
has
a
direct
contractual
30
relationship
with
a
broadcaster
from
whom
the
broadcaster
31
derives
gross
receipts.
“Customer”
includes
but
is
not
limited
32
to
an
advertiser
or
licensee.
33
(D)
“Gross
receipts
from
broadcasting”
means
gross
receipts
34
of
a
broadcaster
from
transactions
and
activities
in
the
35
-1-
LSB
1952YC
(1)
86
mm/sc
1/
4
H.F.
_____
regular
course
of
its
business,
including
but
not
limited
to
1
advertising,
licensing,
and
distribution,
but
excluding
gross
2
receipts
from
the
sale
of
real
property
or
tangible
personal
3
property.
4
Sec.
2.
Section
422.33,
subsection
2,
paragraph
a,
5
subparagraph
(2),
subparagraph
division
(e),
Code
2015,
is
6
amended
to
read
as
follows:
7
(e)
Where
income
consists
of
more
than
one
class
of
income
8
as
provided
in
subparagraph
divisions
(a)
through
(d)
(0e)
9
of
this
subparagraph,
it
shall
be
reasonably
apportioned
by
10
the
business
activity
ratio
provided
in
rules
adopted
by
the
11
director.
12
Sec.
3.
EFFECTIVE
DATE.
This
Act
takes
effect
January
1,
13
2016.
14
Sec.
4.
APPLICABILITY.
This
Act
applies
to
tax
years
15
beginning
on
or
after
January
1,
2016.
16
EXPLANATION
17
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
18
the
explanation’s
substance
by
the
members
of
the
general
assembly.
19
This
bill
relates
to
the
apportionment
of
income
of
a
20
broadcaster
for
purposes
of
Iowa
corporate
income
tax.
21
A
corporation
doing
business
both
within
and
without
Iowa
is
22
required
to
apportion
its
business
income
among
Iowa
and
the
23
other
states
in
which
it
does
business.
The
amount
of
business
24
income
apportioned
to
Iowa
is
generally
in
the
same
percentage
25
as
the
business’s
gross
sales
made
within
Iowa
if
the
business
26
involves
the
manufacture
or
sale
of
goods
and
products,
or
in
27
the
same
percentage
as
the
business’s
gross
receipts
earned
28
within
Iowa
if
the
business
involves
something
other
than
the
29
manufacture
or
sale
of
goods
and
products.
30
Under
current
law
pursuant
to
Iowa
Administrative
Code
31
701-54.7(5),
a
radio
or
television
company
doing
business
32
within
and
without
Iowa
is
required
to
apportion
its
business
33
income
to
Iowa
in
the
same
proportion
that
the
Iowa
population
34
served
by
its
broadcasting
bears
to
the
total
population
35
-2-
LSB
1952YC
(1)
86
mm/sc
2/
4
H.F.
_____
served
by
its
broadcasting.
The
calculation
is
made
using
all
1
residents
of
the
applicable
broadcasting
area,
regardless
of
2
whether
or
not
the
residents
individually
elect
to
receive
the
3
broadcasts.
4
The
bill
specifies
that
when
income
is
derived
by
a
5
broadcaster
from
broadcasting,
the
business
income
apportioned
6
to
Iowa
shall
be
in
the
same
proportion
that
the
broadcaster’s
7
gross
receipts
from
broadcasting
derived
from
customers
whose
8
commercial
domicile
is
in
Iowa
bears
to
the
broadcaster’s
9
total
gross
receipts
from
broadcasting.
However,
where
the
10
income
derived
by
the
broadcaster
is
from
national
or
political
11
advertising
directed
exclusively
at
one
or
more
markets
in
12
the
state,
all
gross
receipts
from
such
advertising
shall
be
13
apportioned
to
Iowa.
14
“Broadcaster”
is
defined
in
the
bill
as
a
taxpayer
who
15
is
engaged
in
the
business
of
broadcasting.
A
broadcaster
16
includes
a
television
network,
a
cable
program
network,
and
17
a
television
distribution
company.
A
broadcaster
does
not
18
include
a
cable
system
operator,
a
direct
broadcast
satellite
19
system
operator,
or
a
television
or
radio
station
licensed
by
20
the
federal
communications
commission.
21
“Broadcasting”
is
defined
in
the
bill
as
the
transmission
of
22
film
programming
by
an
electronic
or
other
signal
conducted
by
23
microwaves,
wires,
lines,
coaxial
cables,
wave
guides,
fiber
24
optics,
satellite
transmissions,
or
through
any
other
means
of
25
communication
directly
or
indirectly
to
viewers
and
listeners.
26
“Customer”
is
defined
in
the
bill
as
a
person
who
has
a
27
direct
contractual
relationship
with
a
broadcaster
from
whom
28
the
broadcaster
derives
gross
receipts.
29
By
operation
of
law,
the
method
of
apportioning
gross
30
receipts
from
broadcasting
provided
in
the
bill
will
also
31
apply
for
purposes
of
the
individual
income
tax
to
a
resident
32
individual
who
is
an
owner
of
a
broadcaster
organized
for
33
federal
tax
purposes
as
an
S
corporation,
and
for
a
nonresident
34
individual
who
is
an
owner
of
a
broadcaster
organized
for
35
-3-
LSB
1952YC
(1)
86
mm/sc
3/
4
