Bill Text: IA SF102 | 2019-2020 | 88th General Assembly | Introduced


Bill Title: A bill for an act relating to the liability of a sponsor of an event to collect sales tax, and providing penalties.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2019-01-29 - Subcommittee: Dawson, Dotzler, and R. Smith. S.J. 187. [SF102 Detail]

Download: Iowa-2019-SF102-Introduced.html
Senate File 102 - Introduced SENATE FILE 102 BY GREENE A BILL FOR An Act relating to the liability of a sponsor of an event to 1 collect sales tax, and providing penalties. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1387XS (3) 88 jm/jh
S.F. 102 Section 1. Section 423.33, subsection 3, Code 2019, is 1 amended to read as follows: 2 3. a. (1) Event sponsor’s liability for sales tax sponsor 3 —— daily log —— penalty . A person sponsoring a sponsor of an 4 event including a flea market or a craft, antique, coin, or 5 stamp show or similar event shall obtain from keep a daily log 6 of every retailer selling tangible personal property, specified 7 digital products, or taxable services at the event proof that 8 the retailer possesses a valid sales tax permit or secure from 9 the retailer a statement, taken in good faith, that tangible 10 personal property, specified digital products, or services 11 offered for sale are not subject to sales tax . Failure to do so 12 renders a sponsor of the event liable for payment of any sales 13 tax, interest, and penalty due and owing from any retailer 14 selling property or services at the event. Sections 423.31 , 15 423.32 , 423.37 , 423.38 , 423.39 , 423.40 , 423.41 , and 423.42 16 apply to the sponsors. 17 (2) The daily log shall include the name and sales tax 18 permit number of the retailer. However, if a retailer does not 19 have a sales tax permit number, the sponsor shall keep in the 20 daily log the retailer’s address and driver’s license number or 21 the equivalent of such an identifying number if the retailer 22 does not have a driver’s license number. The daily log shall 23 be kept on forms provided by the department. 24 (3) The sponsor shall electronically submit to the 25 department, within thirty days of the completion of an event, 26 the daily log of every retailer selling tangible personal 27 property, specified digital products, or taxable services at 28 the event on forms provided by the department. 29 b. The sponsor shall require each retailer to register as a 30 retailer with the sponsor and shall require that a certificate 31 of registration be prominently displayed by each retailer at 32 the event. 33 c. (1) If the sponsor does not comply with the requirements 34 of paragraph “a” , subparagraph (3), the sponsor shall be subject 35 -1- LSB 1387XS (3) 88 jm/jh 1/ 3
S.F. 102 to a civil penalty in the amount of one thousand dollars plus 1 fifty dollars per day for each day the violation continues up 2 to a maximum civil penalty of ten thousand dollars. 3 (2) For any other violation of this subsection, the sponsor 4 shall be subject to a civil penalty in the amount of one 5 thousand dollars. 6 d. The penalty collected pursuant to this subsection shall 7 be paid to the department and deposited into the general fund 8 of the state. Unpaid penalties and interest may be enforced in 9 the same manner as the taxes imposed by this chapter. 10 e. For purposes of this subsection , a “person sponsoring a 11 flea market or a craft, antique, coin, or stamp show or similar 12 event” “sponsor” means a person sponsoring a flea market or a 13 craft, antique, coin, or stamp show or similar event but does 14 not include an organization which sponsors a person sponsoring 15 an event determined to qualify as an event involving casual 16 sales pursuant to section 423.3, subsection 39 , or the state 17 fair or a fair as defined in section 174.1 . 18 EXPLANATION 19 The inclusion of this explanation does not constitute agreement with 20 the explanation’s substance by the members of the general assembly. 21 This bill relates to the liability of a sponsor of an event 22 to collect sales tax. 23 The bill provides that a person sponsoring a flea market or 24 a craft, antique, coin, or stamp show or similar event shall be 25 required to keep a daily log of every retailer selling tangible 26 personal property, specified digital products, or taxable 27 services at the event. 28 The bill specifies that the daily log shall include the name 29 and sales tax permit number of the retailer. If a retailer 30 does not have a sales tax permit number, the bill also requires 31 the sponsor to keep in the daily log the retailer’s address 32 and driver’s license number or the equivalent of such an 33 identifying number if the retailer does not have a driver’s 34 license number. 35 -2- LSB 1387XS (3) 88 jm/jh 2/ 3
S.F. 102 The bill requires the sponsor to electronically submit to 1 the department of revenue, within 30 days of the completion of 2 the event, the daily log of every retailer selling tangible 3 personal property, specified digital products, or taxable 4 services at the event. 5 The bill requires a sponsor to require each retailer to 6 register with the sponsor and also requires each certificate of 7 registration to be prominently displayed at the event. 8 If the sponsor does not electronically submit to the 9 department of revenue, within 30 days of the completion of an 10 event, the daily log of every retailer selling at the event, 11 the sponsor shall be subject to a civil penalty in the amount 12 of $1,000 plus $50 per day for each day the violation continues 13 up to a maximum civil penalty of $10,000. For any other 14 violation of the bill by the sponsor, the sponsor shall be 15 subject to a civil penalty in the amount of $1,000. 16 Currently, a person sponsoring a flea market or a craft, 17 antique, coin, or stamp show or similar event must obtain from 18 every retailer at the event proof that the retailer possesses a 19 valid sales tax permit or secure from the retailer a statement 20 that the property or taxable services offered for sale are 21 not subject to sales tax. Additionally under current law, 22 failure to obtain proof that the retailer possesses a valid 23 sales tax permit or to secure from the retailer a statement 24 that the property or services offered for sale are not subject 25 to sales tax renders a sponsor of the event liable for payment 26 of any sales tax, interest, and penalty due and owing from any 27 retailer selling property or services at the event. 28 -3- LSB 1387XS (3) 88 jm/jh 3/ 3
feedback