Bill Text: IA SF2417 | 2023-2024 | 90th General Assembly | Introduced
Bill Title: A bill for an act establishing an excise tax on the sales price of consumable hemp products sold or purchased at bars or restaurants.(Formerly SSB 3186.)
Spectrum: Committee Bill
Status: (Introduced) 2024-03-26 - Fiscal note. [SF2417 Detail]
Download: Iowa-2023-SF2417-Introduced.html
Senate
File
2417
-
Introduced
SENATE
FILE
2417
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
SSB
3186)
A
BILL
FOR
An
Act
establishing
an
excise
tax
on
the
sales
price
of
1
consumable
hemp
products
sold
or
purchased
at
bars
or
2
restaurants.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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Section
1.
Section
423.3,
Code
2024,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
110.
The
sales
price
from
the
sale
or
3
purchase
of
consumable
hemp
products
subject
to
the
excise
tax
4
under
chapter
423H.
5
Sec.
2.
NEW
SECTION
.
423H.1
Definitions.
6
1.
For
the
purposes
of
this
chapter,
unless
the
context
7
otherwise
requires:
8
a.
“Bar”
means
an
establishment
where
one
may
purchase
9
alcoholic
beverages,
as
defined
in
section
123.3,
for
10
consumption
on
the
premises
and
in
which
the
serving
of
food
is
11
only
incidental
to
the
consumption
of
those
beverages.
12
b.
“Consumable
hemp
product”
means
the
same
as
defined
in
13
section
204.2.
14
c.
“Department”
means
the
department
of
revenue.
15
d.
“Restaurant”
means
an
eating
establishment
that
offers
16
food
to
the
public
or
guests,
and
includes
the
bar
area
within
17
a
restaurant.
18
e.
“Retailer”
means
a
bar
or
restaurant.
19
f.
“Sales
price”
or
“purchase
price”
means
the
same
as
20
defined
in
section
423.1.
21
2.
All
other
words
and
phrases
used
in
this
chapter
and
22
defined
in
section
423.1
have
the
meaning
given
them
by
section
23
423.1
for
the
purposes
of
this
chapter.
24
Sec.
3.
NEW
SECTION
.
423H.2
Tax
imposed.
25
A
tax
of
twenty-five
percent
is
imposed
on
the
sales
price
or
26
purchase
price
of
consumable
hemp
products
sold
by
a
retailer
27
in
the
state
of
Iowa.
This
tax
shall
be
collected
and
paid
to
28
the
department
by
the
retailer
who
sells
the
consumable
hemp
29
product.
30
Sec.
4.
NEW
SECTION
.
423H.3
Exemptions.
31
There
is
exempted
from
tax
imposed
by
this
chapter
the
32
following:
33
1.
The
sales
price
from
the
sales
of
consumable
hemp
34
products
that
this
state
is
prohibited
from
taxing
under
the
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Constitution
of
the
United
States
or
the
Constitution
of
the
1
State
of
Iowa.
2
2.
The
sales
price
or
purchase
price
of
sales
for
resale
of
3
consumable
hemp
products.
4
Sec.
5.
NEW
SECTION
.
423H.4
Administration
by
director.
5
1.
The
director
of
revenue
shall
administer
the
excise
6
tax
on
consumable
hemp
products
as
nearly
as
possible
in
7
conjunction
with
the
administration
of
the
state
sales
tax
law,
8
except
that
portion
of
the
law
which
implements
the
streamlined
9
sales
and
use
tax
agreement.
The
director
shall
provide
10
appropriate
forms,
or
provide
on
the
regular
state
tax
forms,
11
for
reporting
the
sale
of
consumable
hemp
products
excise
12
tax
liability.
All
moneys
received
and
all
refunds
shall
be
13
deposited
in
or
withdrawn
from
the
general
fund
of
the
state.
14
2.
The
director
may
require
all
persons
who
are
engaged
15
in
the
business
of
deriving
any
sales
price
or
purchase
16
price
subject
to
tax
under
this
chapter
to
register
with
17
the
department.
The
director
may
also
require
a
tax
permit
18
applicable
only
to
this
chapter
for
any
retailer
not
collecting
19
taxes
under
chapter
423.
20
3.
Section
422.25,
subsection
4,
sections
422.30,
422.67,
21
and
422.68,
section
422.69,
subsection
1,
sections
422.70,
22
422.71,
422.72,
422.74,
and
422.75,
section
423.14,
subsection
23
1,
and
sections
423.23,
423.24,
423.25,
423.31
through
24
423.35,
423.37
through
423.42,
and
423.47,
consistent
with
25
the
provisions
of
this
chapter,
apply
with
respect
to
the
tax
26
authorized
under
this
chapter,
in
the
same
manner
and
with
27
the
same
effect
as
if
the
excise
taxes
on
consumable
hemp
28
product
sales
were
retail
sales
taxes
within
the
meaning
of
29
those
statutes.
Notwithstanding
this
subsection,
the
director
30
shall
provide
for
monthly
filing
of
returns
and
for
other
than
31
monthly
filing
of
returns
both
as
prescribed
in
section
423.31.
32
All
taxes
collected
under
this
chapter
by
a
retailer
are
deemed
33
to
be
held
in
trust
for
the
state
of
Iowa.
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
establishes
an
excise
tax
on
the
sales
price
3
of
consumable
hemp
products
sold
or
purchased
at
bars
and
4
restaurants
in
this
state.
5
The
bill
imposes
an
excise
tax
of
25
percent
on
the
sales
6
price
of
consumable
hemp
products
sold
at
a
bar
or
restaurant,
7
but
exempts
the
sales
price
of
such
consumable
hemp
products
8
from
the
sales
tax.
The
bill
defines
“bar”
and
“restaurant”.
9
The
department
of
revenue
(DOR)
is
required
to
administer
10
the
excise
tax.
The
bill
requires
DOR
to
administer
the
11
excise
tax
as
nearly
as
possible
in
conjunction
with
the
12
administration
of
the
state
sales
and
use
tax
laws.
13
The
moneys
collected
from
the
excise
tax
imposed
in
the
bill
14
are
deposited
into
the
general
fund
of
the
state.
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