Bill Text: IA HSB655 | 2015-2016 | 86th General Assembly | Introduced
Bill Title: A study bill for modifying the state sales tax rebate to the owner or operator of a baseball and softball tournament facility and movie site.
Spectrum: Unknown
Status: (Introduced - Dead) 2016-04-19 - Voted - Ways and Means. [HSB655 Detail]
Download: Iowa-2015-HSB655-Introduced.html
House
Study
Bill
655
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
WAYS
AND
MEANS
BILL
BY
CHAIRPERSON
SANDS)
(COMPANION
TO
SF
2212)
A
BILL
FOR
An
Act
modifying
the
state
sales
tax
rebate
to
the
owner
or
1
operator
of
a
baseball
and
softball
tournament
facility
and
2
movie
site.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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Section
1.
Section
423.2,
subsection
11,
paragraph
a,
1
subparagraph
(2),
Code
2016,
is
amended
to
read
as
follows:
2
(2)
Subsequent
to
the
deposit
into
the
general
fund
of
3
the
state,
the
director
shall
credit
an
amount
equal
to
the
4
product
of
the
sales
tax
rate
imposed
in
this
section
times
5
the
sales
price
of
the
tangible
personal
property
or
services
6
furnished
to
purchasers
at
a
baseball
and
softball
tournament
7
facility
and
movie
site
complex
meeting
the
qualifications
of
8
section
423.4,
subsection
10
,
into
the
baseball
and
softball
9
tournament
facility
and
movie
site
complex
sales
tax
rebate
10
fund
created
under
section
423.4,
subsection
10
,
paragraph
“e”
.
11
The
director
shall
credit
the
moneys
beginning
the
first
day
of
12
the
quarter
following
July
1,
2012
2016
.
This
subparagraph
is
13
repealed
June
30,
2024,
or
thirty
days
following
the
date
on
14
which
sixteen
million
five
hundred
thousand
dollars
in
total
15
rebates
have
been
provided
under
section
423.4,
subsection
16
10
,
or
thirty
days
following
the
date
on
which
rebates
cease
17
as
provided
in
section
423.4,
subsection
10
,
paragraph
“c”
,
18
subparagraph
(4),
whichever
is
earliest
.
19
Sec.
2.
Section
423.2,
subsection
11,
paragraph
b,
20
subparagraph
(4),
Code
2016,
is
amended
to
read
as
follows:
21
(4)
Transfer
to
the
baseball
and
softball
tournament
22
facility
and
movie
site
complex
sales
tax
rebate
fund
that
23
portion
of
the
sales
tax
receipts
described
in
paragraph
“a”
,
24
subparagraph
(2),
remaining
after
the
transfers
required
25
under
subparagraphs
(1),
(2),
and
(3)
of
this
paragraph
“b”
.
26
This
subparagraph
is
repealed
June
30,
2024,
or
thirty
days
27
following
the
date
on
which
sixteen
million
five
hundred
28
thousand
dollars
in
total
rebates
have
been
provided
under
29
section
423.4,
subsection
10
,
or
thirty
days
following
the
date
30
on
which
rebates
cease
as
provided
in
section
423.4,
subsection
31
10
,
paragraph
“c
”,
subparagraph
(4),
whichever
is
earliest
.
32
Sec.
3.
Section
423.4,
subsection
10,
Code
2016,
is
amended
33
to
read
as
follows:
34
10.
a.
For
purposes
of
this
subsection
:
35
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(1)
“Baseball
and
softball
tournament
facility
and
movie
1
site”
means
a
baseball
and
softball
tournament
complex
and
2
tourist
destination,
which
facility
is
located
on
a
maximum
of
3
two
hundred
seventy-nine
acres,
located
inside
or
within
three
4
miles
of
the
city
limits
of
a
city
with
a
population
of
at
least
5
four
thousand
but
not
more
than
five
thousand
five
hundred
6
residents,
which
city
is
located
in
a
county
with
a
population
7
of
at
least
ninety-three
thousand
but
not
more
than
one
hundred
8
thousand
residents
and
where
the
construction
on
the
baseball
9
and
softball
tournament
facility
commenced
not
later
than
July
10
1,
2013,
and
the
cost
of
the
construction
upon
completion
was
11
at
least
thirty-eight
million
dollars.
“Baseball
and
softball
12
complex”
means
a
baseball
and
softball
complex
located
in
this
13
state
that
has
a
project
completion
date
that
is
after
July
1,
14
2016,
and
that
has
a
cost
of
construction
upon
completion
that
15
is
at
least
ten
million
dollars.
16
(2)
“Change
of
control”
means
any
of
the
following:
17
(a)
Any
change
in
the
ownership
of
the
original
or
any
18
subsequent
legal
entity
that
is
the
owner
or
operator
of
the
19
baseball
and
softball
tournament
facility
and
movie
site
20
complex
such
that
more
than
fifty-one
percent
of
the
equity
21
interests
or
voting
interest
in
the
legal
entity
cease
ceases
22
to
be
owned
by
individuals
who
are
residents
of
Iowa,
an
Iowa
23
corporation,
or
combination
of
both.
24
(b)
The
original
owners
of
the
legal
entity
that
is
the
25
owner
or
operator
of
the
baseball
and
softball
tournament
26
facility
and
movie
site
complex
shall
collectively
cease
to
27
own
or
control
more
than
fifty
percent
of
the
voting
equity
28
interests
or
voting
interest
of
such
legal
entity
or
shall
29
otherwise
cease
to
have
effective
control
of
such
legal
entity.
30
(3)
“Iowa
corporation”
means
a
corporation
incorporated
31
under
the
laws
of
Iowa
where
more
than
fifty-one
percent
of
the
32
corporation’s
equity
interests
or
voting
interest
are
owned
or
33
controlled
by
individuals
who
are
residents
of
Iowa.
34
(4)
“Owner
or
operator”
means
a
for-profit
legal
entity
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where
more
than
fifty-one
percent
of
its
equity
interests
are
1
or
voting
interest
is
owned
or
controlled
by
individuals
who
2
are
residents
of
Iowa,
an
Iowa
corporation,
or
combination
3
of
both
and
that
is
the
owner
or
operator
of
a
baseball
and
4
softball
tournament
facility
and
movie
site
complex
and
is
5
primarily
a
promoter
of
baseball
and
or
softball
tournaments
,
6
or
both
.
7
(5)
“Population”
means
the
population
based
upon
the
2010
8
certified
federal
census.
“Project
completion
date”
means
the
9
date
on
which
a
baseball
and
softball
complex
is
placed
into
10
service.
11
b.
The
owner
or
operator
of
a
baseball
and
softball
12
tournament
facility
and
movie
site
complex
may
apply
to
the
13
department
for
a
rebate
of
sales
tax
imposed
and
collected
14
by
retailers
upon
sales
of
any
goods,
wares,
merchandise,
15
admission
tickets,
or
services
furnished
to
purchasers
at
16
the
baseball
and
softball
tournament
facility
and
movie
site
17
complex
.
18
c.
The
rebate
may
be
obtained
only
in
the
following
amounts
19
and
manner
and
only
under
the
following
conditions:
20
(1)
On
forms
furnished
by
the
department
within
the
time
21
period
provided
by
the
department
by
rule,
which
time
period
22
shall
not
be
longer
than
quarterly.
23
(2)
The
owner
or
operator
shall
provide
information
as
24
deemed
necessary
by
the
department.
25
(3)
The
transactions
for
which
sales
tax
was
collected
and
26
the
rebate
is
sought
occurred
on
or
after
January
1,
2014,
but
27
before
January
1,
2024
the
baseball
and
softball
complex’s
28
project
completion
date
but
before
the
date
which
is
ten
years
29
after
that
project
completion
date
.
However,
not
more
than
30
two
million
five
hundred
thousand
dollars
in
rebates
shall
be
31
provided
to
any
one
baseball
and
softball
complex,
and
not
more
32
than
sixteen
million
five
hundred
thousand
dollars
in
total
33
rebates
shall
be
provided
pursuant
to
this
subsection
.
34
(4)
Notwithstanding
subparagraph
(3),
the
rebate
of
35
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sales
tax
to
a
baseball
and
softball
complex
shall
cease
for
1
transactions
occurring
on
or
after
the
date
of
the
change
of
2
control
of
the
baseball
and
softball
tournament
facility
and
3
movie
site
complex
.
4
d.
To
assist
the
department
in
determining
the
amount
of
the
5
rebate,
the
owner
or
operator
shall
identify
to
the
department
6
retailers
located
at
the
baseball
and
softball
tournament
7
facility
and
movie
site
complex
who
will
be
collecting
sales
8
tax.
The
department
shall
verify
such
identity
and
ensure
9
that
all
proper
permits
have
been
issued.
For
purposes
of
10
this
subsection
,
advance
ticket
and
admissions
sales
shall
be
11
considered
occurring
at
the
baseball
and
softball
tournament
12
facility
and
movie
site
complex
regardless
of
where
the
13
transactions
actually
occur.
14
e.
There
is
established
within
the
state
treasury
under
15
the
control
of
the
department
a
baseball
and
softball
16
tournament
facility
and
movie
site
complex
sales
tax
rebate
17
fund
consisting
of
the
amount
of
state
sales
tax
revenues
18
transferred
pursuant
to
section
423.2,
subsection
11
,
paragraph
19
“b”
,
subparagraph
(4).
An
account
is
created
within
the
fund
20
for
each
baseball
and
softball
tournament
facility
and
movie
21
site
complex
meeting
the
qualifications
of
this
subsection
.
22
Moneys
in
the
fund
shall
only
be
used
to
provide
rebates
of
23
state
sales
tax
pursuant
to
this
subsection
,
and
only
the
state
24
sales
tax
revenues
in
the
baseball
and
softball
tournament
25
facility
and
movie
site
complex
rebate
fund
are
subject
to
26
rebate
under
this
subsection
.
Not
more
than
two
million
five
27
hundred
thousand
dollars
in
total
rebates
shall
be
paid
from
28
each
baseball
and
softball
complex’s
account
within
the
fund,
29
and
not
more
than
sixteen
million
five
hundred
thousand
dollars
30
in
total
rebates
shall
be
paid
from
the
fund.
Any
moneys
in
31
the
fund
which
represent
state
sales
tax
revenue
for
which
the
32
time
period
in
paragraph
“c”
for
receiving
a
rebate
has
expired,
33
or
which
otherwise
represent
state
sales
tax
revenue
that
has
34
become
ineligible
for
rebate
pursuant
to
this
subsection
,
shall
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immediately
revert
to
the
general
fund
of
this
state.
1
f.
Upon
determining
that
the
conditions
and
requirements
2
of
this
subsection
and
the
department
are
met,
the
department
3
shall
issue
a
warrant
from
the
applicable
account
within
the
4
baseball
and
softball
tournament
facility
and
movie
site
5
complex
rebate
fund
to
the
owner
or
operator
in
the
amount
6
equal
to
the
amount
claimed
and
verified
by
the
department.
7
g.
This
subsection
is
repealed
June
30,
2024,
or
thirty
8
days
following
the
date
on
which
sixteen
million
five
hundred
9
thousand
dollars
in
total
rebates
have
been
provided
,
or
thirty
10
days
following
the
date
on
which
rebates
cease
as
provided
in
11
paragraph
“c”
,
subparagraph
(4),
whichever
is
the
earliest
.
12
The
director
of
revenue
shall
notify
the
Iowa
Code
editor
upon
13
occurrence
of
this
condition.
14
EXPLANATION
15
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
16
the
explanation’s
substance
by
the
members
of
the
general
assembly.
17
This
bill
modifies
the
rebate
of
state
sales
tax
to
the
owner
18
or
operator
of
a
baseball
and
softball
tournament
facility
and
19
movie
site.
20
BACKGROUND.
2012
Iowa
Acts,
chapter
1098,
enacted
a
sales
21
tax
rebate
to
the
owner
or
operator
of
a
baseball
and
softball
22
tournament
facility
and
movie
site
(facility).
In
order
to
23
be
eligible
for
the
rebate,
the
facility
must
be
located
on
a
24
maximum
of
279
acres
and
located
inside
or
within
three
miles
25
of
the
city
limits
of
a
city
with
a
population
between
4,000
26
and
5,500,
which
is
located
in
a
county
with
a
population
27
between
93,000
and
100,000.
Construction
on
the
facility
28
must
commence
not
later
than
July
1,
2013,
and
the
cost
of
29
construction
must
be
at
least
$38
million.
30
The
rebate
only
applies
to
state
sales
tax
collected
at
31
the
facility
between
January
1,
2014,
and
December
31,
2023.
32
The
rebate
ceases
if
control
of
the
facility
changes.
The
33
rebate
provision
is
repealed
June
30,
2024,
or
30
days
after
a
34
total
of
$16.5
million
has
been
rebated,
or
30
days
following
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the
change
of
control
causing
the
rebates
to
cease,
whichever
1
occurs
earlier.
2
CHANGES
IN
BILL.
The
bill
changes
the
name
of
the
qualifying
3
“baseball
and
softball
tournament
facility
and
movie
site”
4
to
a
“baseball
and
softball
complex”
(complex)
and
changes
5
the
requirements
to
qualify
for
the
rebate.
A
complex
will
6
qualify
for
the
rebate
if
it
is
located
in
this
state,
has
7
a
project
completion
date
that
is
after
July
1,
2016,
and
8
has
construction
costs
of
at
least
$10
million.
“Project
9
completion
date”
is
defined
in
the
bill
to
mean
the
date
on
10
which
the
complex
is
placed
into
service.
11
The
bill
removes
the
requirement
that
the
legal
entity
12
that
is
the
owner
or
operator
of
the
complex
be
a
for-profit
13
legal
entity,
and
further
modifies
the
percentage-of-ownership
14
requirements
for
qualification
as
an
owner
or
operator
and
15
for
the
occurrence
of
a
change
of
control
to
specify
that
the
16
percentage
is
calculated
using
the
equity
interests
or
voting
17
interest
owned
or
controlled
by
Iowa
residents.
Under
current
18
law,
the
calculation
only
considers
equity
interests
owned
by
19
Iowa
residents.
20
The
bill
changes
the
availability
of
the
rebate
for
each
21
complex
to
specify
that
the
rebate
only
applies
to
sales
tax
22
collected
for
the
10-year
period
beginning
on
or
after
the
23
complex’s
project
completion
date.
24
The
bill
specifies
that
any
one
complex
cannot
receive
more
25
than
$2.5
million
in
total
rebates.
The
bill
changes
the
26
repeal
date
of
the
rebate
provision
to
provide
that
the
rebate
27
is
repealed
30
days
after
a
total
of
$16.5
million
has
been
28
rebated.
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