Bill Text: IA SF366 | 2021-2022 | 89th General Assembly | Enrolled
Bill Title: A bill for an act relating to state taxation and related laws of the state including the collection of tax, tax credits, the assessment and classification of property, taxes on electricity providers, fees for registration of vehicles, sales and use tax, and the authority of the director of revenue, and providing penalties, and including effective date and retroactive applicability provisions. (Formerly SSB 1122.) Effective date: Enactment, 07/01/2021. Applicability date: Enactment, 01/01/2019, 07/01/2020, 01/01/2020.
Spectrum: Committee Bill
Status: (Passed) 2021-05-10 - Signed by Governor. S.J. 1054. [SF366 Detail]
Download: Iowa-2021-SF366-Enrolled.html
Senate
File
366
-
Enrolled
Senate
File
366
AN
ACT
RELATING
TO
STATE
TAXATION
AND
RELATED
LAWS
OF
THE
STATE
INCLUDING
THE
COLLECTION
OF
TAX,
TAX
CREDITS,
THE
ASSESSMENT
AND
CLASSIFICATION
OF
PROPERTY,
TAXES
ON
ELECTRICITY
PROVIDERS,
FEES
FOR
REGISTRATION
OF
VEHICLES,
SALES
AND
USE
TAX,
AND
THE
AUTHORITY
OF
THE
DIRECTOR
OF
REVENUE,
AND
PROVIDING
PENALTIES,
AND
INCLUDING
EFFECTIVE
DATE
AND
RETROACTIVE
APPLICABILITY
PROVISIONS.
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
DIVISION
I
TAX
CREDITS
FOR
CERTAIN
SALES
TAXES
PAID
BY
THIRD-PARTY
DEVELOPERS
Section
1.
Section
15.331C,
Code
2021,
is
amended
to
read
as
follows:
15.331C
Corporate
tax
credit
for
certain
sales
taxes
paid
by
third-party
developer
Third-party
developer
tax
credit
.
1.
An
eligible
business
may
claim
a
corporate
tax
credit
in
an
amount
equal
to
the
sales
and
use
taxes
paid
by
a
third-party
developer
under
chapter
423
for
gas,
electricity,
water,
or
sewer
utility
services,
goods,
wares,
or
merchandise,
or
on
services
rendered,
furnished,
or
performed
to
or
for
a
contractor
or
subcontractor
and
used
in
the
fulfillment
of
a
written
contract
relating
to
the
construction
or
equipping
of
a
facility
of
the
eligible
business.
Taxes
attributable
to
intangible
property
and
furniture
and
furnishings
shall
not
be
included,
but
taxes
attributable
to
racks,
shelving,
and
Senate
File
366,
p.
2
conveyor
equipment
to
be
used
in
a
warehouse
or
distribution
center
shall
be
included.
Any
credit
in
excess
of
the
tax
liability
for
the
tax
year
may
be
credited
to
the
tax
liability
for
the
following
seven
years
or
until
depleted,
whichever
occurs
earlier.
An
eligible
business
may
elect
to
receive
a
refund
of
all
or
a
portion
of
an
unused
tax
credit.
2.
A
third-party
developer
shall
state
under
oath,
on
forms
provided
by
the
department
of
revenue,
the
amount
of
taxes
paid
as
described
in
subsection
1
and
shall
submit
such
forms
to
the
department
of
revenue.
The
taxes
paid
shall
be
itemized
to
allow
identification
of
the
taxes
attributable
to
racks,
shelving,
and
conveyor
equipment
to
be
used
in
a
warehouse
or
distribution
center.
After
receiving
the
form
from
the
third-party
developer,
the
department
of
revenue
shall
issue
a
tax
credit
certificate
to
the
eligible
business
equal
to
the
sales
and
use
taxes
paid
by
a
third-party
developer
under
chapter
423
for
gas,
electricity,
water,
or
sewer
utility
services,
goods,
wares,
or
merchandise,
or
on
services
rendered,
furnished,
or
performed
to
or
for
a
contractor
or
subcontractor
and
used
in
the
fulfillment
of
a
written
contract
relating
to
the
construction
or
equipping
of
a
facility.
The
department
of
revenue
shall
also
issue
a
tax
credit
certificate
to
the
eligible
business
equal
to
the
taxes
paid
and
attributable
to
racks,
shelving,
and
conveyor
equipment
to
be
used
in
a
warehouse
or
distribution
center.
The
aggregate
combined
total
amount
of
tax
refunds
under
section
15.331A
for
taxes
attributable
to
racks,
shelving,
and
conveyor
equipment
to
be
used
in
a
warehouse
or
distribution
center
and
of
tax
credit
certificates
issued
by
the
department
of
revenue
for
the
taxes
paid
and
attributable
to
racks,
shelving,
and
conveyor
equipment
to
be
used
in
a
warehouse
or
distribution
center
shall
not
exceed
five
hundred
thousand
dollars
in
a
fiscal
year.
If
an
applicant
for
a
tax
credit
certificate
does
not
receive
a
certificate
for
the
taxes
paid
and
attributable
to
racks,
shelving,
and
conveyor
equipment
to
be
used
in
a
warehouse
or
distribution
center,
the
application
shall
be
considered
in
succeeding
fiscal
years.
The
eligible
business
shall
not
claim
a
tax
credit
under
this
section
unless
a
tax
credit
certificate
issued
by
the
department
of
revenue
is
Senate
File
366,
p.
3
included
with
the
taxpayer’s
tax
return
for
the
tax
year
for
which
the
tax
credit
is
claimed.
A
tax
credit
certificate
shall
contain
the
eligible
business’s
name,
address,
tax
identification
number,
the
amount
of
the
tax
credit,
and
other
information
deemed
necessary
by
the
department
of
revenue.
3.
An
individual
may
claim
a
tax
credit
under
this
section
of
a
partnership,
limited
liability
company,
S
corporation,
estate,
or
trust
electing
to
have
income
taxed
directly
to
the
individual.
The
amount
claimed
by
the
individual
shall
be
based
upon
the
pro
rata
share
of
the
individual’s
earnings
from
the
partnership,
limited
liability
company,
S
corporation,
estate,
or
trust.
Sec.
2.
Section
15.335A,
subsection
2,
paragraph
d,
Code
2021,
is
amended
to
read
as
follows:
d.
“Sales
tax
refund”
means
the
sales
and
use
tax
refund
as
provided
under
section
15.331A
or
the
corporate
tax
credit
for
certain
sales
taxes
paid
by
third-party
developers
developer
tax
credit
as
provided
under
section
15.331C
.
Sec.
3.
NEW
SECTION
.
422.11T
Third-party
developer
tax
credit.
The
taxes
imposed
under
this
subchapter,
less
the
credits
allowed
under
section
422.12,
shall
be
reduced
by
the
third-party
developer
tax
credit
authorized
pursuant
to
section
15.331C
for
certain
sales
taxes
paid
by
a
third-party
developer.
Sec.
4.
Section
422.33,
subsection
19,
Code
2021,
is
amended
to
read
as
follows:
19.
The
taxes
imposed
under
this
subchapter
shall
be
reduced
by
a
corporate
third-party
developer
tax
credit
authorized
pursuant
to
section
15.331C
for
certain
sales
taxes
paid
by
a
third-party
developer.
Sec.
5.
Section
422.60,
subsection
8,
Code
2021,
is
amended
to
read
as
follows:
8.
The
taxes
imposed
under
this
subchapter
shall
be
reduced
by
a
corporate
third-party
developer
tax
credit
authorized
pursuant
to
section
15.331C
for
certain
sales
taxes
paid
by
a
third-party
developer.
Sec.
6.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
enactment.
Senate
File
366,
p.
4
Sec.
7.
RETROACTIVE
APPLICABILITY.
This
division
of
this
Act
applies
retroactively
to
January
1,
2020,
for
tax
years
beginning
on
or
after
that
date.
DIVISION
II
GEOTHERMAL
HEAT
PUMP
INSTALLATION
TAX
CREDIT
Sec.
8.
Section
422.12N,
subsection
3,
Code
2021,
is
amended
to
read
as
follows:
3.
a.
A
taxpayer
must
submit
an
application
with
the
department
for
each
geothermal
heat
pump
installation.
The
application
must
be
approved
by
the
department
prior
to
claiming
the
credit,
and
the
application
must
be
filed
by
May
1
following
the
year
of
installation
of
the
geothermal
heat
pump.
b.
The
department
shall
accept
and
approve
applications
on
a
first-come,
first-served
basis
until
the
maximum
amount
of
tax
credits
that
may
be
claimed
pursuant
to
subsection
4
is
reached.
If
for
a
tax
year
the
aggregate
amount
of
tax
credits
applied
for
exceeds
the
amount
specified
in
subsection
4
,
the
department
shall
establish
a
wait
list
for
tax
credits.
Valid
applications
filed
by
the
taxpayer
by
May
1
following
the
year
of
the
installation
but
not
approved
by
the
department
shall
be
placed
on
a
wait
list
in
the
order
the
applications
were
received
and
those
applicants
shall
be
given
priority
for
having
their
applications
approved
in
succeeding
years.
Placement
on
a
wait
list
pursuant
to
this
subsection
shall
not
constitute
a
promise
binding
the
state.
The
availability
of
a
tax
credit
and
approval
of
a
tax
credit
application
pursuant
to
this
section
in
a
future
year
is
contingent
upon
the
availability
of
tax
credits
in
that
particular
year.
Sec.
9.
LEGISLATIVE
INTENT.
It
is
the
intent
of
the
general
assembly
that
the
section
of
this
division
amending
section
422.12N
is
a
conforming
amendment
consistent
with
current
state
law,
and
the
amendment
does
not
change
the
application
of
the
current
law
but
instead
reflects
current
law
both
before
and
after
enactment
of
this
division
of
this
Act.
Sec.
10.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
enactment.
Sec.
11.
RETROACTIVE
APPLICABILITY.
This
division
of
this
Act
applies
retroactively
to
January
1,
2019,
for
tax
years
beginning
on
or
after
that
date.
Senate
File
366,
p.
5
DIVISION
III
TAXES
ON
ELECTRICITY
PROVIDERS
Sec.
12.
Section
437A.3,
subsection
18,
paragraph
a,
subparagraph
(2),
Code
2021,
is
amended
to
read
as
follows:
(2)
(a)
An
electric
power
generating
plant
,
except
a
solar
energy
conversion
facility,
where
the
acquisition
cost
of
all
interests
acquired
exceeds
ten
million
dollars.
(b)
A
solar
energy
conversion
facility
where
the
acquisition
cost
of
all
interests
exceeds
one
million
dollars.
(c)
For
purposes
of
this
subparagraph
,
“electric
power
generating
plant”
:
(i)
“Electric
power
generating
plant”
means
each
nameplate
rated
electric
power
generating
plant
owned
solely
or
jointly
by
any
person
or
electric
power
facility
financed
under
the
provisions
of
chapter
28F
or
476A
in
which
electrical
energy
is
produced
from
other
forms
of
energy,
including
all
equipment
used
in
the
production
of
such
energy
through
its
step-up
transformer.
(ii)
“Solar
energy
conversion
facility”
means
the
same
as
defined
in
section
476C.1.
DIVISION
IV
FEE
FOR
NEW
REGISTRATION
——
VEHICLES
Sec.
13.
Section
321.105A,
subsection
2,
paragraph
a,
Code
2021,
is
amended
to
read
as
follows:
a.
For
purposes
of
this
subsection
,
“purchase
price”
applies
to
the
measure
subject
to
the
fee
for
new
registration.
“Purchase
price”
shall
be
determined
in
the
same
manner
as
“sales
price”
is
determined
for
purposes
of
computing
the
tax
imposed
upon
the
sales
price
of
tangible
personal
property
under
chapter
423
,
pursuant
to
the
definition
of
sales
price
in
section
423.1
,
subject
to
the
following
exemptions
.
The
following
are
exempt
from
the
fee
for
new
registration
imposed
by
this
subsection
:
(1)
Exempted
from
the
purchase
price
of
any
vehicle
subject
to
registration
is
the
The
amount
of
any
cash
rebate
which
is
provided
by
a
motor
vehicle
manufacturer
to
the
purchaser
of
the
vehicle
subject
to
registration
so
long
as
the
rebate
is
applied
to
the
purchase
price
of
the
vehicle.
(2)
(a)
In
transactions,
except
those
subject
to
Senate
File
366,
p.
6
subparagraph
division
(b),
in
which
a
vehicle
subject
to
registration
is
traded
toward
the
purchase
price
of
another
vehicle
subject
to
registration,
the
purchase
price
is
only
that
portion
of
the
purchase
price
which
is
not
valued
in
money,
whether
received
in
money
or
not,
if
the
following
conditions
are
met:
(i)
The
vehicle
traded
to
the
retailer
is
the
type
of
vehicle
normally
sold
in
the
regular
course
of
the
retailer’s
business.
(ii)
The
vehicle
traded
to
the
retailer
is
intended
by
the
retailer
to
be
ultimately
sold
at
retail
or
is
intended
to
be
used
by
the
retailer
or
another
in
the
remanufacturing
of
a
like
vehicle.
(b)
In
a
transaction
between
persons,
neither
of
which
is
a
retailer
of
vehicles
subject
to
registration,
in
which
a
vehicle
subject
to
registration
is
traded
toward
the
purchase
price
of
another
vehicle
subject
to
registration,
the
amount
of
the
trade-in
value
allowed
on
the
vehicle
subject
to
registration
traded
is
exempted
from
the
purchase
price
.
(c)
In
order
for
the
trade-in
value
to
be
excluded
from
the
purchase
price,
the
name
or
names
The
person
listed
on
the
title
and
registration
of
the
newly
acquired
vehicle
being
purchased
must
be
the
same
name
or
names
person
listed
on
the
title
and
registration
of
the
traded
vehicle
being
traded
in
order
to
exclude
the
trade-in
value
from
the
purchase
price
.
The
Additionally,
the
following
trades
qualify
under
this
subparagraph
division
(c):
(i)
A
trade
involving
between
spouses,
if
the
traded
vehicle
and
the
acquired
vehicle
are
titled
in
the
name
of
one
or
both
of
the
spouses,
with
no
outside
party
named
on
the
title.
(ii)
A
trade
involving
a
grandparent,
parent,
or
child
between
lineal
family
members
,
including
adopted
and
step
relationships,
if
the
name
of
one
of
the
family
members
from
the
title
of
the
traded
vehicle
is
also
on
the
title
of
the
newly
acquired
vehicle.
(iii)
A
trade
involving
a
business
an
entity
,
if
one
of
the
owners
listed
on
the
title
of
the
traded
vehicle
is
a
business,
and
an
entity.
If
multiple
names
are
on
the
names
on
the
title
are
must
be
separated
by
“or”.
For
purposes
of
trades
under
Senate
File
366,
p.
7
this
subparagraph
subdivision,
a
sole
proprietorship
shall
not
be
distinguished
from
an
individual
owner.
(iv)
A
trade
in
which
the
vehicle
being
purchased
is
titled
in
the
name
of
an
individual
other
than
the
owner
of
the
traded
vehicle
due
to
the
cosigning
requirements
of
a
financial
institution.
(3)
Exempted
from
the
purchase
price
The
fair
market
value
of
a
replacement
motor
vehicle
owned
by
a
motor
vehicle
dealer
licensed
under
chapter
322
which
is
being
registered
by
that
dealer
and
is
not
otherwise
exempt
from
the
fee
for
new
registration
,
is
the
fair
market
value
of
a
replaced
motor
vehicle
if
all
of
the
following
conditions
are
met:
(a)
The
motor
vehicle
being
registered
is
being
placed
in
service
as
a
replacement
motor
vehicle
for
a
motor
vehicle
registered
by
the
motor
vehicle
dealer.
(b)
The
motor
vehicle
being
registered
is
taken
from
the
motor
vehicle
dealer’s
inventory.
(c)
Use
tax
or
the
fee
for
new
registration
on
the
motor
vehicle
being
replaced
was
paid
by
the
motor
vehicle
dealer
when
that
motor
vehicle
was
registered.
(d)
The
replaced
motor
vehicle
is
returned
to
the
motor
vehicle
dealer’s
inventory
for
sale.
(e)
The
application
for
registration
and
title
of
the
motor
vehicle
being
registered
is
filed
with
the
county
treasurer
within
two
weeks
of
the
date
the
replaced
motor
vehicle
is
returned
to
the
motor
vehicle
dealer’s
inventory.
(f)
The
motor
vehicle
being
registered
is
placed
in
the
same
or
substantially
similar
service
as
the
replaced
motor
vehicle.
Sec.
14.
Section
321.105A,
subsection
2,
paragraph
c,
subparagraph
(1),
Code
2021,
is
amended
to
read
as
follows:
(1)
Entities
listed
in
section
423.3,
subsections
17,
18,
19,
20,
21,
22,
26,
27,
28,
31,
and
79
,
to
the
extent
that
those
entities
are
exempt
from
the
tax
imposed
on
the
sale
of
tangible
personal
property
,
consisting
of
goods,
wares,
or
merchandise,
sold
at
retail
in
the
state
to
consumers
or
users.
Sec.
15.
Section
321.105A,
subsection
2,
paragraph
c,
subparagraph
(3),
subparagraph
divisions
(a)
and
(c),
Code
2021,
are
amended
to
read
as
follows:
(a)
Vehicles
subject
to
registration
which
are
transferred
Senate
File
366,
p.
8
from
a
business
or
individual
conducting
a
business
within
this
state
as
a
sole
proprietorship,
partnership,
or
limited
liability
company
to
a
corporation
formed
by
the
sole
proprietorship,
partnership,
or
limited
liability
company
for
the
purpose
of
continuing
the
business
when
all
of
the
stock
of
the
corporation
so
formed
is
owned
by
the
sole
proprietor
and
the
sole
proprietor’s
spouse,
by
all
the
partners
in
the
case
of
a
partnership,
or
by
all
the
members
in
the
case
of
a
limited
liability
company.
This
exemption
is
equally
available
where
the
vehicles
subject
to
registration
are
transferred
from
a
corporation
to
a
sole
proprietorship,
partnership,
or
limited
liability
company
formed
by
that
corporation
for
the
purpose
of
continuing
the
business
when
all
of
the
incidents
of
ownership
are
owned
by
the
same
person
or
persons
who
were
stockholders
of
the
corporation.
an
entity
doing
business
within
this
state
to
another
entity
doing
business
within
this
state
if
all
of
the
following
apply:
(i)
The
receiving
entity
was
formed
by
the
transferring
entity
for
the
purpose
of
continuing
the
business.
(ii)
(A)
All
ownership
remains
the
same
and
in
the
same
proportions
as
the
previous
ownership
with
no
fewer
or
additional
owners
or
replacement
owners.
(B)
In
the
case
of
a
sole
proprietorship,
the
spouse
of
the
sole
proprietor
may
stand
in
place
of
the
sole
proprietor.
(c)
This
exemption
applies
to
corporations
that
For
an
exemption
under
this
subparagraph,
a
receiving
entity
shall
have
been
in
existence
for
not
longer
than
twenty-four
months.
Sec.
16.
Section
321.105A,
subsection
2,
paragraph
c,
subparagraphs
(7),
(8),
(15),
(18),
and
(19),
Code
2021,
are
amended
to
read
as
follows:
(7)
Vehicles
subject
to
registration
in
this
state
for
which
the
applicant
for
registration
has
paid
to
another
state
a
state
sales,
use,
or
occupational
tax
,
or
paid
the
equivalent
sales
or
excise
tax
of
another
country
to
that
country
.
However,
if
the
tax
paid
to
another
state
or
country
is
less
than
the
fee
for
new
registration
calculated
for
the
vehicle,
the
difference
shall
be
the
amount
to
be
collected
as
the
fee
for
new
registration.
(8)
A
vehicle
subject
to
registration
in
this
state
which
is
Senate
File
366,
p.
9
owned
by
a
person
who
has
moved
from
another
state
or
country
with
the
intention
of
changing
residency
to
Iowa,
provided
that
the
vehicle
was
purchased
for
use
in
the
state
or
country
from
which
the
applicant
moved
and
was
not,
at
or
near
the
time
of
purchase,
purchased
for
use
in
Iowa.
(15)
Vehicles
purchased
by
a
licensed
wholesaler
of
new
motor
vehicles
licensed
under
section
322.27A
for
resale
by
the
same
wholesaler
.
(18)
A
vehicle
delivered
to
a
resident
Native
American
Indian
on
the
a
reservation.
(19)
A
vehicle
transferred
from
one
individual
to
another
individual
as
a
gift
in
a
transaction
in
which
no
consideration
is
present.
Sec.
17.
Section
321.105A,
subsection
2,
paragraph
c,
subparagraph
(25),
unnumbered
paragraph
1,
Code
2021,
is
amended
to
read
as
follows:
Vehicles
subject
to
registration
under
this
chapter
with
a
gross
vehicle
weight
rating
of
less
than
sixteen
thousand
pounds
when
purchased
for
lease
and
titled
by
the
lessor
licensed
pursuant
to
chapter
321F
and
actually
leased
for
a
period
of
twelve
six
months
or
more
if
the
lease
of
the
vehicle
is
subject
to
the
fee
for
new
registration
under
subsection
3
or
exempt
from
the
fee
for
new
registration
pursuant
to
subsection
3
,
paragraph
“f”
.
Sec.
18.
Section
321.105A,
subsection
3,
paragraphs
a
and
e,
Code
2021,
are
amended
to
read
as
follows:
a.
A
fee
for
new
registration
is
imposed
in
an
amount
equal
to
five
percent
of
the
leased
price
for
each
vehicle
subject
to
registration
with
a
gross
vehicle
weight
rating
of
less
than
sixteen
thousand
pounds
which
is
leased
by
a
lessor
licensed
pursuant
to
chapter
321F
for
a
period
of
twelve
six
months
or
more.
The
fee
for
new
registration
shall
be
paid
by
the
owner
of
the
vehicle
to
the
county
treasurer
from
whom
the
registration
receipt
or
certificate
of
title
is
obtained.
A
registration
receipt
for
a
vehicle
subject
to
registration
or
issuance
of
a
certificate
of
title
shall
not
be
issued
until
the
fee
for
new
registration
is
paid
in
the
initial
instance.
e.
If
the
lease
is
terminated
or
voided
prior
to
the
termination
date
contained
in
the
lease
agreement,
no
refund
Senate
File
366,
p.
10
shall
be
allowed
for
a
fee
for
new
registration
previously
paid
under
this
section
,
except
as
provided
in
section
322G.4
.
Sec.
19.
Section
321.105A,
subsection
7,
Code
2021,
is
amended
to
read
as
follows:
7.
Penalty
for
false
statement
or
evasion
of
fee
Penalties
.
a.
False
statement.
A
person
who
willfully
makes
a
false
statement
in
regard
to
the
purchase
price
of
a
vehicle
subject
to
a
fee
for
new
registration
or
willfully
attempts
in
any
manner
to
evade
payment
of
the
fee
required
by
this
section
is
guilty
of
a
fraudulent
practice.
A
person
who
willfully
makes
a
false
statement
in
regard
to
the
purchase
price
of
such
a
vehicle
with
the
intent
to
evade
payment
of
the
fee
for
new
registration
or
willfully
attempts
in
any
manner
to
evade
payment
of
the
fee
required
by
this
section
shall
be
assessed
a
penalty
of
seventy-five
percent
of
the
amount
of
the
fee
unpaid
and
required
to
be
paid
on
the
actual
purchase
price
less
trade-in
allowance.
b.
Evasion
fee.
An
Iowa
resident
found
to
be
in
control
of
a
vehicle
which
is
owned
by
a
shell
business
and
for
which
the
fee
for
new
registration
has
not
been
paid,
as
provided
in
section
321.55,
subsection
2
,
is
guilty
of
a
fraudulent
practice.
An
Iowa
resident
found
to
be
in
control
of
a
vehicle
which
is
owned
by
a
shell
business
and
for
which
the
fee
for
new
registration
has
not
been
paid,
as
provided
in
section
321.55,
subsection
2
,
shall
be
assessed
a
penalty
of
seventy-five
percent
of
the
amount
of
the
fee
unpaid
and
required
to
be
paid
on
the
actual
purchase
price
less
trade-in
allowance.
c.
Failure
to
file.
If
a
person
required
by
this
chapter
to
file
an
application
for
certificate
of
title
or
registration
with
the
county
treasurer
fails
to
file
such
application
or
registration
on
or
before
the
due
date
for
such
application
or
registration,
a
penalty
in
the
amount
of
ten
percent
of
the
fee
for
new
registration
due
shall
be
added
to
the
fee.
d.
Underpayment.
If
a
person
required
by
this
chapter
to
file
an
application
for
certificate
of
title
or
registration
with
the
county
treasurer
files
such
application
or
registration
with
any
inaccurate
information
that
results
in
the
person
paying
less
than
the
full
amount
of
the
fee
for
new
registration,
penalties,
or
interest
that
was
due
at
the
time
Senate
File
366,
p.
11
of
application,
a
penalty
in
the
amount
of
five
percent
of
the
fee
for
new
registration
due
shall
be
added
to
the
fee.
DIVISION
V
PENALTIES
——
IMPUTED
IOWA
LIABILITY
Sec.
20.
Section
421.27,
subsection
9,
paragraph
a,
Code
2021,
is
amended
to
read
as
follows:
a.
“Imputed
Iowa
liability”
means
any
of
the
following:
(1)
In
the
case
of
corporations
other
than
corporations
described
in
section
422.34
or
section
422.36,
subsection
5
,
the
corporation’s
Iowa
net
income
after
the
application
of
the
Iowa
business
activity
ratio,
if
applicable,
multiplied
by
the
top
income
tax
rate
imposed
under
section
422.33
for
the
tax
year
,
less
any
Iowa
tax
credits
available
to
the
corporation
.
(2)
In
the
case
of
financial
institutions
as
defined
in
section
422.61
,
the
financial
institution’s
Iowa
net
income
after
the
application
of
the
Iowa
business
activity
ratio,
if
applicable,
multiplied
by
the
franchise
tax
rate
imposed
under
section
422.63
for
the
tax
year
,
less
any
Iowa
tax
credits
available
to
the
financial
institution
.
(3)
In
this
case
of
all
other
entities,
including
corporations
described
in
section
422.36,
subsection
5
,
and
all
other
entities
required
to
file
an
information
return
under
section
422.15,
subsection
2
,
the
entity’s
Iowa
net
income
after
the
application
of
the
Iowa
business
activity
ratio,
if
applicable,
multiplied
by
the
top
income
tax
rate
imposed
under
section
422.5A
for
the
tax
year
,
less
any
Iowa
tax
credits
available
to
the
entity
.
DIVISION
VI
PARTNERSHIP
AND
PASS-THROUGH
ENTITY
AUDITS
AND
REPORTING
Sec.
21.
Section
422.7,
subsection
59,
Code
2021,
is
amended
to
read
as
follows:
59.
Any
income
adjustment
subtracted
from
federal
taxable
income
for
an
adjustment
year
pursuant
to
section
6225
of
the
Internal
Revenue
Code
and
the
regulations
thereunder
shall
be
added
back
in
computing
net
income
of
the
partnership
and
the
partners
for
state
tax
purposes
for
the
adjustment
year.
Sec.
22.
Section
422.25A,
subsection
1,
paragraph
k,
subparagraph
(1),
Code
2021,
is
amended
to
read
as
follows:
(1)
In
the
case
of
a
federal
partnership
adjustment
that
Senate
File
366,
p.
12
arises
from
a
partnership
level
audit,
the
first
day
on
which
no
federal
adjustments
arising
from
that
audit
remain
to
be
finally
determined,
whether
by
internal
revenue
service
decision
with
respect
to
which
all
rights
of
appeal
have
been
waived
or
exhausted,
by
agreement,
or,
if
appealed
or
contested,
by
a
final
decision
with
respect
to
which
all
rights
of
appeal
have
been
waived
or
exhausted.
For
agreements
required
to
be
signed
by
the
internal
revenue
service
and
the
audited
partnership,
the
final
determination
date
is
the
date
on
which
the
last
party
signed
the
agreement.
Sec.
23.
Section
422.25A,
subsection
4,
Code
2021,
is
amended
to
read
as
follows:
4.
Reporting
and
payment
requirements
for
audited
partnerships
and
their
partners
subject
to
final
federal
partnership
adjustments.
a.
Unless
an
audited
partnership
makes
the
election
in
subsection
5
,
the
audited
a
partnership
shall
do
all
of
the
following
for
all
final
federal
partnership
adjustments
no
later
than
ninety
days
after
the
final
determination
date
of
the
audited
partnership
:
(1)
File
a
completed
federal
adjustments
report.
(2)
Notify
each
direct
partner
of
such
partner’s
distributive
share
of
the
adjustments
in
the
manner
and
form
prescribed
by
the
department
by
rule.
(3)
File
an
amended
composite
return
under
section
422.13
if
one
was
originally
filed,
and
if
applicable
for
withholding
from
partners,
file
an
amended
withholding
report
under
section
422.16
,
and
pay
the
additional
amount
under
this
title
that
would
have
been
due
had
the
final
federal
partnership
adjustments
been
reported
properly
as
required,
including
any
applicable
interest
and
penalties.
b.
Unless
an
audited
partnership
paid
an
amount
on
behalf
of
the
direct
partners
of
the
audited
partnership
pursuant
to
subsection
5
,
all
direct
partners
of
the
audited
partnership
shall
do
all
of
the
following
no
later
than
one
hundred
eighty
days
after
the
final
determination
date
of
the
audited
partnership
:
(1)
File
a
completed
federal
adjustments
report
reporting
the
direct
partner’s
distributive
share
of
the
adjustments
Senate
File
366,
p.
13
required
to
be
reported
to
such
partners
under
paragraph
“a”
.
(2)
If
the
direct
partner
is
a
tiered
partner,
notify
all
partners
that
hold
an
interest
directly
in
the
tiered
partner
of
such
partner’s
distributive
share
of
the
adjustments
in
the
manner
and
form
prescribed
by
the
department
by
rule.
(3)
If
the
direct
partner
is
a
tiered
partner
and
subject
to
section
422.13
,
file
an
amended
composite
return
under
section
422.13
if
such
return
was
originally
filed,
and
if
applicable
for
withholding
from
partners
file
an
amended
withholding
report
under
section
422.16
if
one
was
originally
required
to
be
filed.
(4)
Pay
any
additional
amount
under
this
title
that
would
have
been
due
had
the
final
federal
partnership
adjustments
been
reported
properly
as
required,
including
any
applicable
penalty
and
interest.
c.
Unless
a
partnership
or
tiered
partner
paid
an
amount
on
behalf
of
the
partners
pursuant
to
subsection
5
,
each
indirect
partner
shall
do
all
of
the
following:
(1)
Within
ninety
days
after
the
time
for
filing
and
furnishing
statements
to
tiered
partners
and
their
partners
as
established
by
section
6226
of
the
Internal
Revenue
Code
and
the
regulations
thereunder,
file
a
completed
federal
adjustments
report.
(2)
If
the
indirect
partner
is
a
tiered
partner,
within
ninety
days
after
the
time
for
filing
and
furnishing
statements
to
tiered
partners
and
their
partners
as
established
by
section
6226
of
the
Internal
Revenue
Code
and
the
regulations
thereunder
but
within
sufficient
time
for
all
indirect
partners
to
also
complete
the
requirements
of
this
subsection
,
notify
all
of
the
partners
that
hold
an
interest
directly
in
the
tiered
partner
of
such
partner’s
distributive
share
of
the
adjustments
in
the
manner
and
form
prescribed
by
the
department
by
rule.
(3)
Within
ninety
days
after
the
time
for
filing
and
furnishing
statements
to
tiered
partners
and
their
partners
as
established
by
section
6226
of
the
Internal
Revenue
Code
and
the
regulations
thereunder,
if
the
indirect
partner
is
a
tiered
partner
and
subject
to
section
422.13
,
file
an
amended
composite
return
under
section
422.13
if
such
return
Senate
File
366,
p.
14
was
originally
filed,
and
if
applicable
for
withholding
from
partners,
file
an
amended
withholding
report
under
section
422.16
if
one
was
originally
required
to
be
filed.
(4)
Within
ninety
days
after
the
time
for
filing
and
furnishing
statements
to
tiered
partners
and
the
partners
of
the
tiered
partners
as
established
by
section
6226
of
the
Internal
Revenue
Code
and
the
regulations
thereunder,
pay
any
additional
amount
due
under
this
title
,
including
any
penalty
and
interest
that
would
have
been
due
had
the
final
federal
partnership
adjustments
been
reported
properly
as
required.
Sec.
24.
Section
422.25A,
subsection
5,
paragraph
a,
Code
2021,
is
amended
to
read
as
follows:
a.
An
audited
partnership,
or
a
tiered
partner
of
an
audited
partnership
that
receives
a
notification
of
a
final
federal
partnership
adjustment
under
subsection
4
of
a
final
federal
partnership
adjustment
arising
from
a
partnership
level
audit
,
may
make
an
election
to
pay
as
provided
under
this
subsection
.
Sec.
25.
Section
422.25A,
subsection
5,
paragraph
b,
unnumbered
paragraph
1,
Code
2021,
is
amended
to
read
as
follows:
An
audited
partnership
or
tiered
partner
makes
shall
make
an
election
to
pay
under
this
subsection
by
filing
in
the
manner
and
form
prescribed
by
the
department.
The
audited
partnership
or
tiered
partner
making
an
election
to
pay
shall
file
a
completed
federal
adjustments
report,
notifying
the
department
in
the
manner
and
form
prescribed
by
the
department
that
it
is
making
the
election
under
this
subsection
,
notifying
notify
each
of
the
direct
partners
of
such
partner’s
distributive
share
of
the
adjustments,
and
paying
pay
on
behalf
of
its
partners
an
amount
calculated
in
paragraph
“c”
,
including
any
applicable
penalty
and
interest.
These
requirements
shall
all
be
fulfilled
within
one
of
the
following
time
periods:
Sec.
26.
Section
422.25A,
subsection
5,
paragraph
c,
subparagraph
(6),
Code
2021,
is
amended
to
read
as
follows:
(6)
(a)
Total
the
amounts
computed
pursuant
to
subparagraphs
(2)
through
(5)
and
calculate
any
interest
and
penalty
as
provided
under
this
title
.
Notwithstanding
any
provision
of
law
to
the
contrary,
interest
and
penalties
on
the
amount
due
by
the
audited
partnership
or
tiered
partner
shall
Senate
File
366,
p.
15
be
computed
from
the
day
after
the
due
date
of
the
reviewed
year
return
without
extension,
and
shall
be
imposed
as
if
the
audited
partnership
or
tiered
partner
was
required
to
pay
tax
or
show
tax
due
on
the
original
return
for
the
reviewed
year.
(b)
The
director
may
establish
rules
providing
for
the
calculation
of
amounts
due
under
this
subsection
for
federal
partnership
adjustments
that
affect
state
tax
owed
but
that
do
not
fit
within
the
calculation
in
subparagraphs
(2)
through
(5),
such
as
tax
credit
changes.
The
director
may
establish
rules
that
include
changes
related
to
state-specific
issues
following
a
state
partnership
audit
in
the
election
to
pay
and
calculation
of
amounts
due
under
this
subsection,
including
but
not
limited
to
allocation
and
apportionment.
Interest
and
penalty
shall
be
computed
in
the
same
manner
as
described
in
subparagraph
division
(a).
Sec.
27.
Section
422.25A,
subsection
7,
paragraph
d,
Code
2021,
is
amended
to
read
as
follows:
d.
Nothing
in
this
section
shall
prohibit
the
department
from
assessing
direct
partners
and
indirect
partners
for
taxes
they
owe
in
the
event
that
an
audited
a
partnership
or
tiered
partner
fails
to
timely
make
any
report
or
payment
required
by
this
section
for
any
reason.
Sec.
28.
Section
422.25A,
subsection
8,
paragraph
a,
Code
2021,
is
amended
to
read
as
follows:
a.
The
department
shall
assess
additional
Iowa
income
tax,
interest,
and
penalties
arising
from
final
federal
partnership
adjustments
in
the
same
manner
as
provided
in
this
title
unless
a
different
treatment
is
provided
by
this
subsection
.
Since
final
federal
partnership
adjustments
are
determined
at
the
audited
partnership
level,
any
assessment
issued
to
partners
shall
not
be
appealable
by
the
partner.
The
department
may
assess
any
taxes,
including
on-behalf-of
amounts,
interest,
and
penalties
arising
from
the
final
federal
partnership
adjustments
if
it
issues
a
notice
of
assessment
to
the
audited
partnership,
tiered
partner,
or
other
direct
or
indirect
partner
on
or
before
the
expiration
of
the
applicable
limitations
period
specified
in
section
422.25
.
Sec.
29.
Section
422.25C,
subsection
4,
Code
2021,
is
amended
to
read
as
follows:
Senate
File
366,
p.
16
4.
If
the
department,
the
partnership
or
pass-through
entity,
and
owners
representing
a
majority
of
the
ownership
interests
in
the
partnership
or
pass-through
entity
owners
agree,
the
provisions
of
this
section
may
be
applied
to
tax
years
beginning
before
January
1,
2020.
Sec.
30.
Section
422.35,
subsection
26,
Code
2021,
is
amended
to
read
as
follows:
26.
Any
income
adjustment
subtracted
from
federal
taxable
income
for
an
adjustment
year
pursuant
to
section
6225
of
the
Internal
Revenue
Code
and
the
regulations
thereunder
shall
be
added
back
in
computing
net
income
of
the
partnership
and
the
partners
for
state
tax
purposes
for
the
adjustment
year.
Sec.
31.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
enactment.
Sec.
32.
RETROACTIVE
APPLICABILITY.
This
division
of
this
Act
applies
retroactively
to
July
1,
2020,
and
applies
to
federal
adjustments
and
federal
partnership
adjustments
that
have
a
final
determination
date
after
July
1,
2020.
DIVISION
VII
VEHICLE
REGISTRATION
RENEWALS
AND
COLLECTIONS
BY
COUNTY
TREASURERS
——
CENTRALIZED
COLLECTION
UNIT
——
DEPARTMENT
OF
REVENUE
Sec.
33.
Section
321.40,
subsection
6,
paragraph
b,
Code
2021,
is
amended
to
read
as
follows:
b.
The
A
county
treasurer
of
the
county
of
the
person’s
residence
and
in
which
the
person’s
vehicle
is
registered
,
in
cooperation
with
the
department
of
revenue,
may
collect
from
a
person
applying
for
renewal
of
a
vehicle
registration
delinquent
taxes
,
including
penalties
and
interest
owed
to
the
state
from
a
person
applying
for
renewal
of
a
vehicle
registration
,
and
nontax
liabilities
being
collected
by
the
central
collection
unit
of
the
department
of
revenue
pursuant
to
section
421.17,
subsection
27
.
The
applicant
may
remit
full
payment
of
the
taxes
balance
owed
including
applicable
penalties
and
interest,
along
with
a
processing
fee
of
five
dollars,
to
the
county
treasurer
at
the
time
of
registration
renewal.
Upon
full
payment
of
the
required
taxes
balance
owed
including
applicable
penalties
and
interest,
the
processing
fee,
and
the
vehicle
registration
fee,
the
county
Senate
File
366,
p.
17
treasurer
shall
issue
the
registration
to
the
person.
A
county
treasurer
collecting
on
behalf
of
the
department
of
revenue
shall
update
the
vehicle
registration
records
through
the
distributed
teleprocessing
network
on
a
daily
basis
for
all
persons
who
have
paid
taxes
or
other
balances
owed
pursuant
to
this
subsection
.
A
county
treasurer
shall
forward
all
funds
collected
for
the
department
of
revenue
to
the
department
of
revenue.
Sec.
34.
Section
421.17,
subsection
27,
paragraph
k,
Code
2021,
is
amended
to
read
as
follows:
k.
A
Pursuant
to
section
321.40,
subsection
6,
and
rules
adopted
pursuant
to
this
paragraph,
a
county
treasurer
may
collect
delinquent
taxes,
including
penalties
and
interest,
administered
by
the
department
in
conjunction
with
renewal
of
a
vehicle
registration
as
provided
in
section
321.40,
subsection
6
,
paragraph
“b”
,
and
rules
adopted
pursuant
to
this
paragraph
and
nontax
liabilities
being
collected
by
the
central
collection
unit
of
the
department
of
revenue
.
County
treasurers
shall
be
given
access
to
information
required
for
the
collection
of
delinquent
taxes,
including
penalties
and
interest,
as
necessary
to
accomplish
the
purposes
of
section
321.40,
subsection
6
,
paragraph
“b”
.
The
confidentiality
provisions
of
sections
422.20
and
422.72
do
not
apply
to
information
provided
by
the
department
to
a
county
treasurer
pursuant
to
this
paragraph.
A
county
treasurer
collecting
taxes,
penalties,
and
interest
administered
by
the
department
is
subject
to
the
requirements
and
penalties
of
the
confidentiality
laws
of
this
state
regarding
tax
or
indebtedness
information.
The
director
shall
adopt
rules
to
implement
the
collection
of
tax
debt
as
collections
authorized
in
section
321.40
and
this
paragraph.
DIVISION
VIII
GARNISHMENT
Sec.
35.
Section
626.31,
Code
2021,
is
amended
to
read
as
follows:
626.31
Return
of
garnishment
——
action
docketed
——
distress
action.
Where
parties
have
been
garnished
under
a
distress
warrant
issued
by
the
director
of
revenue
or
the
director
of
Senate
File
366,
p.
18
inspections
and
appeals,
the
officer
shall
make
return
thereof
to
the
court
in
the
county
where
the
garnishee
lives,
if
the
garnishee
lives
in
Iowa,
otherwise
in
the
county
where
the
taxpayer
resides,
if
the
taxpayer
lives
in
Iowa;
and
if
neither
the
garnishee
nor
the
taxpayer
lives
in
Iowa,
then
to
the
district
court
in
Polk
county,
Iowa;
the
officer
shall
make
return
in
the
same
manner
as
a
return
is
made
on
a
garnishment
made
under
a
writ
of
execution
so
far
as
they
relate
to
garnishments,
and
the
clerk
of
the
district
court
shall
docket
an
action
thereon
without
fee
the
same
as
if
a
judgment
had
been
recovered
against
the
taxpayer
in
the
county
where
the
return
is
made,
an
execution
issued
thereon,
and
garnishment
made
thereunder,
and
thereafter
the
proceedings
shall
conform
to
proceedings
in
garnishment
under
attachments
as
nearly
as
may
be.
The
warrant
shall
be
considered
in
all
respects
as
a
final
judgment.
DIVISION
IX
SNOWMOBILES,
ALL-TERRAIN
VEHICLES,
AND
VESSELS
——
PURCHASES
——
PAYMENT
OF
SALES
OR
USE
TAX
Sec.
36.
Section
321G.4,
subsection
2,
paragraph
b,
Code
2021,
is
amended
to
read
as
follows:
b.
If
the
owner
of
the
snowmobile
is
unable
to
present
satisfactory
evidence
that
the
sales
or
use
tax
has
been
paid,
the
county
recorder
shall
collect
the
tax.
On
or
before
the
tenth
day
of
each
month,
the
county
recorder
shall
remit
to
the
department
of
revenue
the
amount
of
the
taxes
collected
during
the
preceding
month,
together
with
an
itemized
statement
on
forms
furnished
by
the
department
of
revenue
showing
the
name
of
each
taxpayer,
the
make
and
purchase
price
of
each
snowmobile,
the
amount
of
tax
paid,
and
such
other
information
as
the
department
of
revenue
requires
in
a
manner
prescribed
by
the
department
.
Sec.
37.
Section
321I.4,
subsection
2,
paragraph
b,
Code
2021,
is
amended
to
read
as
follows:
b.
If
the
owner
of
the
all-terrain
vehicle
is
unable
to
present
satisfactory
evidence
that
the
sales
or
use
tax
has
been
paid,
the
county
recorder
shall
collect
the
tax.
On
or
before
the
tenth
day
of
each
month,
the
county
recorder
shall
remit
to
the
department
of
revenue
the
amount
of
the
taxes
Senate
File
366,
p.
19
collected
during
the
preceding
month,
together
with
an
itemized
statement
on
forms
furnished
by
the
department
of
revenue
showing
the
name
of
each
taxpayer,
the
make
and
purchase
price
of
each
all-terrain
vehicle,
the
amount
of
tax
paid,
and
such
other
information
as
the
department
of
revenue
requires
in
a
manner
prescribed
by
the
department
.
Sec.
38.
Section
462A.55,
Code
2021,
is
amended
to
read
as
follows:
462A.55
Sales
or
use
tax
to
be
paid
before
registration.
No
vessel
shall
be
registered
by
the
county
recorder
until
there
has
been
presented
to
the
recorder
receipts,
bills
of
sale,
or
other
satisfactory
evidence
that
the
sales
or
use
tax
has
been
paid
for
the
purchase
of
the
vessel.
If
the
owner
of
the
vessel
is
unable
to
present
satisfactory
evidence
that
the
sales
or
use
tax
has
been
paid,
the
county
recorder
shall
collect
the
tax.
On
or
before
the
tenth
day
of
each
month,
the
county
recorder
shall
remit
to
the
department
of
revenue
the
amount
of
the
taxes
so
collected
during
the
preceding
month,
together
with
an
itemized
statement
on
forms
furnished
by
the
department
of
revenue
showing
the
name
of
each
taxpayer,
the
make
and
purchase
price
of
each
vessel
and
motor,
the
amount
of
tax
paid,
and
such
other
information
as
the
department
of
revenue
shall
require
in
a
manner
prescribed
by
the
department
.
DIVISION
X
TANGIBLE
PERSONAL
PROPERTY
——
RENTALS
——
SALES
AND
USE
TAX
Sec.
39.
Section
9C.1,
subsection
1,
Code
2021,
is
amended
to
read
as
follows:
1.
As
used
in
this
chapter
,
the
term
“transient
merchant”
shall
mean
and
include
every
merchant,
whether
an
individual
person,
a
firm,
corporation,
partnership,
or
association,
and
whether
owner,
agent,
bailee,
consignee,
or
employee,
who
shall
bring
or
cause
to
be
brought
within
the
state
of
Iowa
any
goods,
wares,
or
merchandise
tangible
personal
property
of
any
kind,
nature,
or
description,
with
the
intention
of
temporarily
or
intermittently
selling
or
offering
to
sell
at
retail
such
goods,
wares,
or
merchandise
tangible
personal
property
within
the
state
of
Iowa.
The
term
“transient
merchant”
shall
also
mean
and
include
every
merchant,
whether
an
individual
person,
a
firm,
corporation,
partnership,
or
an
association,
who
shall
Senate
File
366,
p.
20
by
itself,
or
by
agent,
consignee,
or
employee
,
temporarily
or
intermittently
engage
in
or
conduct
at
one
or
more
locations
a
business
within
the
state
of
Iowa
for
the
sale
at
retail
of
any
goods,
wares,
or
merchandise
tangible
personal
property
of
any
nature
or
description.
Sec.
40.
Section
9C.2,
Code
2021,
is
amended
to
read
as
follows:
9C.2
License
required.
It
shall
be
unlawful
for
any
transient
merchant
to
sell,
dispose
of,
or
offer
for
sale
any
goods,
wares
or
merchandise
tangible
personal
property
of
any
kind,
nature
or
description,
at
any
time
or
place
within
the
state
of
Iowa,
outside
the
limits
of
any
city
in
the
state
of
Iowa,
or
within
the
limits
of
any
city
in
the
state
of
Iowa
that
has
not
by
ordinance
provided
for
the
licensing
of
transient
merchants,
unless
such
transient
merchant
has
a
valid
license
as
provided
in
this
chapter
and
has
complied
with
the
regulations
set
forth
in
this
chapter
.
Sec.
41.
Section
9C.3,
unnumbered
paragraph
1,
Code
2021,
is
amended
to
read
as
follows:
Any
transient
merchant
desiring
a
transient
merchant’s
license
shall
at
least
ten
days
prior
to
the
first
day
any
sale
is
made,
file
with
the
secretary
of
state
of
the
state
of
Iowa
an
application
in
writing
duly
verified
by
the
person,
firm,
corporation,
partnership,
or
association
proposing
to
sell
or
offer
to
sell
at
retail
any
goods,
wares,
or
merchandise
tangible
personal
property
,
or
to
engage
in
or
conduct
a
temporary
or
intermittent
business
for
the
sale
at
retail
of
any
goods,
wares,
or
merchandise
tangible
personal
property
.
The
application
shall
state
the
following
facts:
Sec.
42.
Section
9C.3,
subsections
2,
5,
6,
and
7,
Code
2021,
are
amended
to
read
as
follows:
2.
If
the
application
be
made
by
an
agent,
bailee,
consignee,
or
employee,
the
application
shall
so
state
and
set
out
the
name
and
address
of
such
agent,
bailee,
consignee,
or
employee
and
shall
also
set
out
the
name
and
address
of
the
owner
of
the
goods,
wares,
and
merchandise
tangible
personal
property
to
be
sold
or
offered
for
sale.
5.
The
value
of
the
goods
tangible
personal
property
to
be
Senate
File
366,
p.
21
sold
or
offered
for
sale
or
the
average
inventory
to
be
carried
by
any
such
transient
merchant
engaging
in
or
conducting
an
intermittent
or
temporary
business
as
the
case
may
be.
6.
The
date
or
dates
upon
which
said
goods,
wares,
or
merchandise
tangible
personal
property
shall
be
sold
or
offered
for
sale,
or
the
date
or
dates
upon
which
it
is
the
intention
of
the
applicant
to
engage
in
or
conduct
a
temporary
or
intermittent
business.
7.
The
location
and
address
where
such
goods,
wares,
or
merchandise
tangible
personal
property
shall
be
sold
or
offered
for
sale,
or
such
business
engaged
in
or
conducted.
Sec.
43.
Section
9C.4,
subsection
1,
Code
2021,
is
amended
to
read
as
follows:
1.
At
the
time
and
as
part
of
filing
the
application,
the
applicant
shall
file
with
the
secretary
of
state
a
bond,
with
sureties
to
be
approved
by
the
secretary
of
state,
in
a
penal
sum
two
times
the
value
of
the
goods,
wares
or
merchandise
tangible
personal
property
to
be
sold
or
offered
for
sale
or
the
average
inventory
to
be
carried
by
such
transient
merchant
engaged
in
or
conducting
an
intermittent
or
temporary
business
as
the
case
may
be
as
shown
by
the
application,
running
to
the
state
of
Iowa,
for
the
use
and
benefit
of
any
purchaser
of
any
merchandise
tangible
personal
property
from
such
transient
merchant
who
might
have
a
cause
of
action
of
any
nature
arising
from
or
out
of
such
sale
against
the
applicant
or
the
owner
of
such
merchandise
property
if
other
than
the
applicant.
The
bond
shall
be
conditioned
on
the
payment
by
the
applicant
of
all
taxes
that
may
be
payable
by,
or
due
from,
the
applicant
to
the
state
of
Iowa
or
any
subdivision
thereof,
and
shall
be
further
conditioned
for
the
payment
of
any
fines
that
may
be
assessed
by
any
court
against
the
applicant
for
violation
of
the
provision
of
this
chapter
,
as
well
as
for
the
payment
and
satisfaction
of
any
and
all
causes
of
action
against
the
applicant
commenced
within
one
year
from
the
date
of
sale
thereof,
and
arising
from
such
sale.
However,
the
aggregate
liability
of
the
surety
for
all
such
taxes,
fines,
and
causes
of
action
shall
in
no
event
exceed
the
principal
sum
of
such
bond.
Sec.
44.
Section
9C.6,
Code
2021,
is
amended
to
read
as
Senate
File
366,
p.
22
follows:
9C.6
License
fee.
Prior
to
issuing
the
said
transient
merchant’s
license,
the
secretary
of
state
shall
collect
for
the
state
of
Iowa
a
license
fee
in
the
sum
of
twenty-five
dollars
for
each
day
the
applicant,
as
shown
by
the
application,
shall
propose
to
sell
or
offer
for
sale
any
goods,
wares
or
merchandise
tangible
personal
property
,
or
for
each
day
the
applicant,
as
shown
by
the
application,
proposes
to
engage
in
and
conduct
a
business
as
a
transient
merchant
as
the
case
may
be.
Sec.
45.
Section
9C.7,
Code
2021,
is
amended
to
read
as
follows:
9C.7
Misrepresentation.
It
shall
be
unlawful
for
any
transient
merchant
making
sales
or
engaging
in
or
conducting
a
business
under
a
transient
merchant’s
license
to
make
any
false
or
misleading
statements
or
representation
regarding
any
article
sold
or
offered
for
sale
by
such
transient
merchant
as
to
condition,
quality,
original
cost,
or
cost
to
such
transient
merchant
of
any
article
sold
or
offered
for
sale
or
to
sell
or
offer
for
sale
goods,
wares
or
merchandise
tangible
personal
property
of
a
value
in
excess
of
the
value
thereof
as
shown
by
said
application,
or
to
sell
or
offer
for
sale
at
retail
any
goods,
wares
or
merchandise
tangible
personal
property
,
or
to
engage
in
or
conduct
an
intermittent
or
temporary
business
on
any
days
or
at
any
place
other
than
those
shown
by
such
license.
Sec.
46.
Section
15.331A,
subsection
1,
Code
2021,
is
amended
to
read
as
follows:
1.
The
eligible
business
shall
be
entitled
to
a
refund
of
the
sales
and
use
taxes
paid
under
chapter
423
for
gas,
electricity,
water,
or
sewer
utility
services,
goods,
wares,
or
merchandise
tangible
personal
property
,
or
on
services
rendered,
furnished,
or
performed
to
or
for
a
contractor
or
subcontractor
and
used
in
the
fulfillment
of
a
written
contract
relating
to
the
construction
or
equipping
of
a
facility
that
is
part
of
a
project
of
the
eligible
business.
Taxes
attributable
to
intangible
property
and
furniture
and
furnishings
shall
not
be
refunded.
However,
an
eligible
business
shall
be
entitled
to
a
refund
for
taxes
attributable
to
racks,
shelving,
and
Senate
File
366,
p.
23
conveyor
equipment
to
be
used
in
a
warehouse
or
distribution
center
subject
to
section
15.331C
.
Sec.
47.
Section
15.331A,
subsection
2,
paragraphs
a
and
b,
Code
2021,
are
amended
to
read
as
follows:
a.
The
contractor
or
subcontractor
shall
state
under
oath,
on
forms
provided
by
the
department
of
revenue,
the
amount
of
the
sales
of
goods,
wares,
or
merchandise
tangible
personal
property
or
services
rendered,
furnished,
or
performed
including
water,
sewer,
gas,
and
electric
utility
services
upon
which
sales
or
use
tax
has
been
paid
prior
to
the
project
completion,
and
shall
file
the
forms
with
the
eligible
business
before
final
settlement
is
made.
b.
The
eligible
business
shall,
not
more
than
one
year
after
project
completion,
make
application
to
the
department
of
revenue
for
any
refund
of
the
amount
of
the
sales
and
use
taxes
paid
pursuant
to
chapter
423
upon
any
goods,
wares,
or
merchandise
tangible
personal
property
,
or
services
rendered,
furnished,
or
performed,
including
water,
sewer,
gas,
and
electric
utility
services.
The
application
shall
be
made
in
the
manner
and
upon
forms
to
be
provided
by
the
department
of
revenue,
and
the
department
of
revenue
shall
audit
the
claim
and,
if
approved,
issue
a
warrant
to
the
eligible
business
in
the
amount
of
the
sales
or
use
tax
which
has
been
paid
to
the
state
of
Iowa
under
a
contract.
A
claim
filed
by
the
eligible
business
in
accordance
with
this
section
shall
not
be
denied
by
reason
of
a
limitation
provision
set
forth
in
chapter
421
or
423
.
Sec.
48.
Section
15.331C,
Code
2021,
is
amended
to
read
as
follows:
15.331C
Corporate
tax
credit
for
certain
sales
taxes
paid
by
third-party
developer.
1.
An
eligible
business
may
claim
a
corporate
tax
credit
in
an
amount
equal
to
the
sales
and
use
taxes
paid
by
a
third-party
developer
under
chapter
423
for
gas,
electricity,
water,
or
sewer
utility
services,
goods,
wares,
or
merchandise
tangible
personal
property
,
or
on
services
rendered,
furnished,
or
performed
to
or
for
a
contractor
or
subcontractor
and
used
in
the
fulfillment
of
a
written
contract
relating
to
the
construction
or
equipping
of
a
facility
of
the
eligible
Senate
File
366,
p.
24
business.
Taxes
attributable
to
intangible
property
and
furniture
and
furnishings
shall
not
be
included,
but
taxes
attributable
to
racks,
shelving,
and
conveyor
equipment
to
be
used
in
a
warehouse
or
distribution
center
shall
be
included.
Any
credit
in
excess
of
the
tax
liability
for
the
tax
year
may
be
credited
to
the
tax
liability
for
the
following
seven
years
or
until
depleted,
whichever
occurs
earlier.
An
eligible
business
may
elect
to
receive
a
refund
of
all
or
a
portion
of
an
unused
tax
credit.
2.
A
third-party
developer
shall
state
under
oath,
on
forms
provided
by
the
department
of
revenue,
the
amount
of
taxes
paid
as
described
in
subsection
1
and
shall
submit
such
forms
to
the
department
of
revenue.
The
taxes
paid
shall
be
itemized
to
allow
identification
of
the
taxes
attributable
to
racks,
shelving,
and
conveyor
equipment
to
be
used
in
a
warehouse
or
distribution
center.
After
receiving
the
form
from
the
third-party
developer,
the
department
of
revenue
shall
issue
a
tax
credit
certificate
to
the
eligible
business
equal
to
the
sales
and
use
taxes
paid
by
a
third-party
developer
under
chapter
423
for
gas,
electricity,
water,
or
sewer
utility
services,
goods,
wares,
or
merchandise
tangible
personal
property
,
or
on
services
rendered,
furnished,
or
performed
to
or
for
a
contractor
or
subcontractor
and
used
in
the
fulfillment
of
a
written
contract
relating
to
the
construction
or
equipping
of
a
facility.
The
department
of
revenue
shall
also
issue
a
tax
credit
certificate
to
the
eligible
business
equal
to
the
taxes
paid
and
attributable
to
racks,
shelving,
and
conveyor
equipment
to
be
used
in
a
warehouse
or
distribution
center.
The
aggregate
combined
total
amount
of
tax
refunds
under
section
15.331A
for
taxes
attributable
to
racks,
shelving,
and
conveyor
equipment
to
be
used
in
a
warehouse
or
distribution
center
and
of
tax
credit
certificates
issued
by
the
department
of
revenue
for
the
taxes
paid
and
attributable
to
racks,
shelving,
and
conveyor
equipment
to
be
used
in
a
warehouse
or
distribution
center
shall
not
exceed
five
hundred
thousand
dollars
in
a
fiscal
year.
If
an
applicant
for
a
tax
credit
certificate
does
not
receive
a
certificate
for
the
taxes
paid
and
attributable
to
racks,
shelving,
and
conveyor
equipment
to
be
used
in
a
warehouse
Senate
File
366,
p.
25
or
distribution
center,
the
application
shall
be
considered
in
succeeding
fiscal
years.
The
eligible
business
shall
not
claim
a
tax
credit
under
this
section
unless
a
tax
credit
certificate
issued
by
the
department
of
revenue
is
included
with
the
taxpayer’s
tax
return
for
the
tax
year
for
which
the
tax
credit
is
claimed.
A
tax
credit
certificate
shall
contain
the
eligible
business’s
name,
address,
tax
identification
number,
the
amount
of
the
tax
credit,
and
other
information
deemed
necessary
by
the
department
of
revenue.
Sec.
49.
Section
321.105A,
subsection
3,
paragraph
f,
subparagraph
(1),
Code
2021,
is
amended
to
read
as
follows:
(1)
Vehicles
leased
to
entities
listed
in
section
423.3,
subsections
17,
18,
19,
20,
21,
22,
26,
27,
28,
31,
and
79
,
to
the
extent
that
those
entities
are
exempt
from
the
tax
imposed
on
the
sale
of
tangible
personal
property
,
consisting
of
goods,
wares,
or
merchandise,
sold
at
retail
in
the
state
to
consumers
or
users.
Sec.
50.
Section
423.1,
subsection
21,
Code
2021,
is
amended
by
striking
the
subsection.
Sec.
51.
Section
423.1,
subsection
50,
Code
2021,
is
amended
to
read
as
follows:
50.
a.
“Sales”
or
“sale”
means
any
transfer,
exchange,
or
barter,
conditional
or
otherwise,
in
any
manner
or
by
any
means
whatsoever,
for
consideration,
including
but
not
limited
to
any
such
transfer,
exchange,
or
barter
on
a
subscription
basis.
b.
“Sales”
or
“sale”
includes
a
rental.
Sec.
52.
Section
423.2,
subsection
1,
unnumbered
paragraph
1,
Code
2021,
is
amended
to
read
as
follows:
There
is
imposed
a
tax
of
six
percent
upon
the
sales
price
of
all
sales
of
tangible
personal
property,
consisting
of
goods,
wares,
or
merchandise,
sold
at
retail
in
the
state
to
consumers
or
users
except
as
otherwise
provided
in
this
subchapter
.
Sec.
53.
Section
423.3,
subsections
13,
46,
47A,
75,
and
76,
Code
2021,
are
amended
to
read
as
follows:
13.
The
sales
price
from
the
sale
or
rental
of
irrigation
equipment,
whether
installed
above
or
below
ground,
to
a
contractor
or
farmer
if
the
equipment
will
be
primarily
used
in
agricultural
operations.
46.
The
sales
price
from
sales
or
rentals
to
a
printer
or
Senate
File
366,
p.
26
publisher
of
the
following:
acetate;
anti-halation
backing;
antistatic
spray;
back
lining;
base
material
used
as
a
carrier
for
light
sensitive
emulsions;
blankets;
blow-ups;
bronze
powder;
carbon
tissue;
codas;
color
filters;
color
separations;
contacts;
continuous
tone
separations;
creative
art;
custom
dies
and
die
cutting
materials;
dampener
sleeves;
dampening
solution;
design
and
styling;
diazo
coating;
dot
etching;
dot
etching
solutions;
drawings;
drawsheets;
driers;
duplicate
films
or
prints;
electronically
digitized
images;
electrotypes;
end
product
of
image
modulation;
engravings;
etch
solutions;
film;
finished
art
or
final
art;
fix;
fixative
spray;
flats;
flying
pasters;
foils;
goldenrod
paper;
gum;
halftones;
illustrations;
ink;
ink
paste;
keylines;
lacquer;
lasering
images;
layouts;
lettering;
line
negatives
and
positives;
linotypes;
lithographic
offset
plates;
magnesium
and
zinc
etchings;
masking
paper;
masks;
masters;
mats;
mat
service;
metal
toner;
models
and
modeling;
mylar;
negatives;
nonoffset
spray;
opaque
film
process
paper;
opaquing;
padding
compound;
paper
stock;
photographic
materials:
acids,
plastic
film,
desensitizer
emulsion,
exposure
chemicals,
fix,
developers,
and
paper;
photography,
day
rate;
photopolymer
coating;
photographs;
photostats;
photo-display
tape;
phototypesetter
materials;
pH-indicator
sticks;
positives;
press
pack;
printing
cylinders;
printing
plates,
all
types;
process
lettering;
proof
paper;
proofs
and
proof
processes,
all
types;
pumice
powder;
purchased
author
alterations;
purchased
composition;
purchased
phototypesetting;
purchased
stripping
and
pasteups;
red
litho
tape;
reducers;
roller
covering;
screen
tints;
sketches;
stepped
plates;
stereotypes;
strip
types;
substrate;
tints;
tissue
overlays;
toners;
transparencies;
tympan;
typesetting;
typography;
varnishes;
veloxes;
wood
mounts;
and
any
other
items
used
in
a
like
capacity
to
any
of
the
above
enumerated
items
by
the
printer
or
publisher
to
complete
a
finished
product
for
sale
at
retail.
Expendable
tools
and
supplies
which
are
not
enumerated
in
this
subsection
are
excluded
from
the
exemption.
“Printer”
means
that
portion
of
a
person’s
business
engaged
in
printing
that
completes
a
finished
product
for
ultimate
sale
at
retail
or
means
that
portion
of
a
person’s
business
used
to
complete
a
finished
printed
packaging
Senate
File
366,
p.
27
material
used
to
package
a
product
for
ultimate
sale
at
retail.
“Printer”
does
not
mean
an
in-house
printer
who
prints
or
copyrights
its
own
materials.
47A.
The
sales
price
from
the
sale
or
rental
of
central
office
equipment
or
transmission
equipment
primarily
used
by
local
exchange
carriers
and
competitive
local
exchange
service
providers
as
defined
in
section
476.96
,
Code
2017;
by
franchised
cable
television
operators,
mutual
companies,
municipal
utilities,
cooperatives,
and
companies
furnishing
communications
services
that
are
not
subject
to
rate
regulation
as
provided
in
chapter
476
;
by
long
distance
companies
as
defined
in
section
477.10
;
or
for
a
commercial
mobile
radio
service
as
defined
in
47
C.F.R.
§20.3
in
the
furnishing
of
telecommunications
services
on
a
commercial
basis.
For
the
purposes
of
this
subsection
,
“central
office
equipment”
means
equipment
utilized
in
the
initiating,
processing,
amplifying,
switching,
or
monitoring
of
telecommunications
services.
“Transmission
equipment”
means
equipment
utilized
in
the
process
of
sending
information
from
one
location
to
another
location.
“Central
office
equipment”
and
“transmission
equipment”
also
include
ancillary
equipment
and
apparatus
which
support,
regulate,
control,
repair,
test,
or
enable
such
equipment
to
accomplish
its
function.
75.
The
sales
price
from
the
sale
or
rental
of
aircraft;
the
sale
or
rental
of
tangible
personal
property
permanently
affixed
or
attached
as
a
component
part
of
the
aircraft,
including
but
not
limited
to
repair
or
replacement
materials
or
parts;
and
the
sales
price
of
all
services
used
for
aircraft
repair,
remodeling,
and
maintenance
services
when
such
services
are
performed
on
aircraft,
aircraft
engines,
or
aircraft
component
materials
or
parts.
For
the
purposes
of
this
exemption,
“aircraft”
means
aircraft
used
in
a
scheduled
interstate
federal
aviation
administration
certificated
air
carrier
operation.
76.
The
sales
price
from
the
sale
or
rental
of
tangible
personal
property
permanently
affixed
or
attached
as
a
component
part
of
the
aircraft,
including
but
not
limited
to
repair
or
replacement
materials
or
parts;
and
the
sales
price
of
all
services
used
for
aircraft
repair,
remodeling,
Senate
File
366,
p.
28
and
maintenance
services
when
such
services
are
performed
on
aircraft,
aircraft
engines,
or
aircraft
component
materials
or
parts.
For
the
purposes
of
this
exemption,
“aircraft”
means
aircraft
used
in
nonscheduled
interstate
federal
aviation
administration
certificated
air
carrier
operation
operating
under
14
C.F.R.
ch.
1,
pt.
135
.
Sec.
54.
Section
423.3,
subsection
47,
paragraph
a,
unnumbered
paragraph
1,
Code
2021,
is
amended
to
read
as
follows:
The
sales
price
from
the
sale
or
rental
of
computers,
computer
peripherals,
machinery,
equipment,
replacement
parts,
supplies,
and
materials
used
to
construct
or
self-construct
computers,
computer
peripherals,
machinery,
equipment,
replacement
parts,
and
supplies,
if
such
items
are
any
of
the
following:
Sec.
55.
Section
423.3,
subsection
47,
paragraph
c,
unnumbered
paragraph
1,
Code
2021,
is
amended
to
read
as
follows:
The
sales
price
from
the
sale
or
rental
of
the
following
shall
not
be
exempt
from
the
tax
imposed
by
this
subchapter
:
Sec.
56.
Section
423.3,
subsection
60,
unnumbered
paragraph
1,
Code
2021,
is
amended
to
read
as
follows:
The
sales
price
from
the
sale
or
rental
of
prescription
drugs,
durable
medical
equipment,
mobility
enhancing
equipment,
prosthetic
devices,
and
other
medical
devices
intended
for
human
use
or
consumption.
For
the
purposes
of
this
subsection
:
Sec.
57.
Section
423.3,
subsection
78,
paragraphs
a
and
c,
Code
2021,
are
amended
to
read
as
follows:
a.
The
sales
price
from
the
sale
of
tangible
personal
property,
specified
digital
products,
or
services
rendered
by
any
entity
where
the
profits
from
the
sale
of
the
tangible
personal
property,
specified
digital
products,
or
services
rendered,
are
used
by
or
donated
to
a
nonprofit
entity
that
is
exempt
from
federal
income
taxation
pursuant
to
section
501(c)(3)
of
the
Internal
Revenue
Code,
a
government
entity,
or
a
nonprofit
private
educational
institution,
and
where
the
entire
proceeds
from
the
sale
or
services
profits
are
expended
for
any
of
the
following
purposes:
(1)
Educational.
Senate
File
366,
p.
29
(2)
Religious.
(3)
Charitable.
A
charitable
act
is
an
act
done
out
of
goodwill,
benevolence,
and
a
desire
to
add
to
or
to
improve
the
good
of
humankind
in
general
or
any
class
or
portion
of
humankind,
with
no
pecuniary
profit
inuring
to
the
person
performing
the
service
or
giving
the
gift.
c.
Except
as
otherwise
provided
in
subsection
97
,
this
exemption
does
not
apply
to
the
sales
price
from
games
of
skill,
games
of
chance,
raffles,
and
bingo
games
as
defined
in
chapter
99B
.
This
exemption
is
disallowed
on
the
amount
of
the
sales
price
only
to
the
extent
the
profits
from
the
sales,
rental,
or
services
are
not
used
by
or
donated
to
the
appropriate
entity
and
expended
for
educational,
religious,
or
charitable
purposes.
Sec.
58.
Section
423.3,
subsection
82,
paragraph
a,
Code
2021,
is
amended
to
read
as
follows:
a.
The
sales
price
from
the
sale
or
rental
of
core-making,
mold-making,
and
sand-handling
machinery
and
equipment,
including
replacement
parts,
directly
and
primarily
used
in
the
mold-making
process
by
a
foundry.
Sec.
59.
Section
423.3,
subsection
88,
Code
2021,
is
amended
to
read
as
follows:
88.
The
sales
price
from
the
sale
of
building
materials,
supplies,
goods,
wares,
or
merchandise
tangible
personal
property
sold
to
a
nonprofit
Iowa
affiliate
of
a
nonprofit
international
organization
whose
primary
activity
is
the
promotion
of
the
construction,
remodeling,
or
rehabilitation
of
one-family
or
two-family
dwellings
for
use
by
low-income
families
and
where
the
building
materials,
supplies,
goods,
wares,
or
merchandise
or
tangible
personal
property
are
used
in
the
construction,
remodeling,
or
rehabilitation
of
such
dwellings.
Sec.
60.
Section
423.3,
subsection
89,
paragraphs
a
and
b,
Code
2021,
are
amended
to
read
as
follows:
a.
The
sales
price
of
all
goods,
wares,
or
merchandise
tangible
personal
property
sold,
or
of
services
furnished,
which
are
used
in
the
fulfillment
of
a
written
construction
contract
for
the
original
construction
of
a
building
or
structure
to
be
used
as
a
collaborative
educational
facility.
Senate
File
366,
p.
30
b.
The
sales
price
of
all
goods,
wares,
or
merchandise
tangible
personal
property
sold,
or
of
services
furnished,
which
are
used
in
the
fulfillment
of
a
written
construction
contract
for
the
construction
of
additions
or
modifications
to
a
building
or
structure
used
as
part
of
a
collaborative
educational
facility.
Sec.
61.
Section
423.3,
subsection
92,
paragraph
a,
subparagraph
(1),
Code
2021,
is
amended
to
read
as
follows:
(1)
The
sales
price
from
the
sale
or
rental
of
computers
and
equipment
that
are
necessary
for
the
maintenance
and
operation
of
a
web
search
portal
and
property
whether
directly
or
indirectly
connected
to
the
computers,
including
but
not
limited
to
cooling
systems,
cooling
towers,
and
other
temperature
control
infrastructure;
power
infrastructure
for
transformation,
distribution,
or
management
of
electricity
used
for
the
maintenance
and
operation
of
the
web
search
portal,
including
but
not
limited
to
exterior
dedicated
business-owned
substations,
backup
power
generation
systems,
battery
systems,
and
related
infrastructure;
and
racking
systems,
cabling,
and
trays,
which
are
necessary
for
the
maintenance
and
operation
of
the
web
search
portal.
Sec.
62.
Section
423.3,
subsection
92,
paragraph
b,
subparagraph
(1),
Code
2021,
is
amended
to
read
as
follows:
(1)
The
business
of
the
purchaser
or
renter
shall
be
as
a
provider
of
a
web
search
portal.
Sec.
63.
Section
423.3,
subsection
92,
paragraph
d,
Code
2021,
is
amended
to
read
as
follows:
d.
Failure
to
meet
eighty
percent
of
the
minimum
investment
amount
requirement
specified
in
paragraph
“b”
within
the
first
six
years
of
operation
from
the
date
the
web
search
portal
business
initiates
site
preparation
activities
will
result
in
the
web
search
portal
business
losing
the
right
to
claim
this
exemption
and
the
web
search
portal
business
shall
pay
all
sales
or
use
tax
that
would
have
been
due
on
the
purchase
or
rental
or
use
of
the
items
listed
in
this
exemption,
plus
any
applicable
penalty
and
interest
imposed
by
statute.
Sec.
64.
Section
423.3,
subsection
93,
paragraph
a,
subparagraph
(1),
Code
2021,
is
amended
to
read
as
follows:
(1)
The
sales
price
from
the
sale
or
rental
of
computers
Senate
File
366,
p.
31
and
equipment
that
are
necessary
for
the
maintenance
and
operation
of
a
web
search
portal
business
and
property
whether
directly
or
indirectly
connected
to
the
computers,
including
but
not
limited
to
cooling
systems,
cooling
towers,
and
other
temperature
control
infrastructure;
power
infrastructure
for
transformation,
distribution,
or
management
of
electricity
used
for
the
maintenance
and
operation
of
the
web
search
portal
business,
including
but
not
limited
to
exterior
dedicated
business-owned
substations,
backup
power
generation
systems,
battery
systems,
and
related
infrastructure;
and
racking
systems,
cabling,
and
trays,
which
are
necessary
for
the
maintenance
and
operation
of
the
web
search
portal
business.
Sec.
65.
Section
423.3,
subsection
93,
paragraph
b,
subparagraph
(1),
Code
2021,
is
amended
to
read
as
follows:
(1)
The
purchaser
or
renter
shall
be
a
web
search
portal
business.
Sec.
66.
Section
423.3,
subsection
93,
paragraph
d,
Code
2021,
is
amended
to
read
as
follows:
d.
Failure
to
meet
eighty
percent
of
the
minimum
investment
amount
requirement
specified
in
paragraph
“b”
within
the
first
six
years
of
operation
from
the
date
the
web
search
portal
business
initiates
site
preparation
activities
will
result
in
the
web
search
portal
business
losing
the
right
to
claim
this
web
search
portal
business
exemption
and
the
web
search
portal
business
shall
pay
all
sales
or
use
tax
that
would
have
been
due
on
the
purchase
or
rental
or
use
of
the
items
listed
in
this
exemption,
plus
any
applicable
penalty
and
interest
imposed
by
statute.
Sec.
67.
Section
423.3,
subsection
95,
paragraph
a,
subparagraph
(1),
Code
2021,
is
amended
to
read
as
follows:
(1)
The
sales
price
from
the
sale
or
rental
of
computers
and
equipment
that
are
necessary
for
the
maintenance
and
operation
of
a
data
center
business
and
property
whether
directly
or
indirectly
connected
to
the
computers,
including
but
not
limited
to
cooling
systems,
cooling
towers,
and
other
temperature
control
infrastructure;
power
infrastructure
for
transformation,
distribution,
or
management
of
electricity
used
for
the
maintenance
and
operation
of
the
data
center
business,
including
but
not
limited
to
exterior
dedicated
business-owned
Senate
File
366,
p.
32
substations,
backup
power
generation
systems,
battery
systems,
and
related
infrastructure;
and
racking
systems,
cabling,
and
trays,
which
are
necessary
for
the
maintenance
and
operation
of
the
data
center
business.
Sec.
68.
Section
423.3,
subsection
95,
paragraph
b,
subparagraph
(1),
Code
2021,
is
amended
to
read
as
follows:
(1)
The
purchaser
or
renter
shall
be
a
data
center
business.
Sec.
69.
Section
423.3,
subsection
95,
paragraph
d,
Code
2021,
is
amended
to
read
as
follows:
d.
Failure
to
meet
eighty
percent
of
the
minimum
investment
amount
requirement
specified
in
paragraph
“b”
within
the
first
six
years
of
operation
from
the
date
the
data
center
business
initiates
site
preparation
activities
will
result
in
the
data
center
business
losing
the
right
to
claim
this
data
center
business
exemption
and
the
data
center
business
shall
pay
all
sales
or
use
tax
that
would
have
been
due
on
the
purchase
or
rental
or
use
of
the
items
listed
in
this
exemption,
plus
any
applicable
penalty
and
interest
imposed
by
statute.
Sec.
70.
Section
423.4,
subsection
1,
paragraph
b,
subparagraph
(3),
Code
2021,
is
amended
to
read
as
follows:
(3)
The
building
materials,
supplies,
equipment,
or
services
furnished
are
not
used
in
the
performance
of
any
contract
in
connection
with
the
operation
of
any
municipal
utility
engaged
in
selling
gas,
electricity,
or
heat
to
the
general
public
or
in
connection
with
the
operation
of
a
municipal
pay
television
system;
and
are
not
used
in
the
performance
of
a
contract
for
a
“project”
“project”
under
chapter
419
as
defined
in
that
chapter
other
than
goods,
wares,
or
merchandise
building
materials,
supplies,
or
equipment
used
in
the
performance
of
a
contract
for
a
“project”
“project”
under
chapter
419
for
which
a
bond
issue
was
approved
by
a
municipality
prior
to
July
1,
1968,
or
for
which
the
goods,
wares,
or
merchandise
building
materials,
supplies,
or
equipment
becomes
an
integral
part
of
the
project
under
contract
and
at
the
completion
of
the
project
becomes
public
property
or
is
devoted
to
educational
uses.
Sec.
71.
Section
423.4,
subsection
1,
paragraph
c,
Code
2021,
is
amended
to
read
as
follows:
c.
A
contractor
shall
state
under
oath,
on
forms
provided
Senate
File
366,
p.
33
by
the
department,
the
amount
of
such
sales
of
goods,
wares,
or
merchandise
building
materials,
supplies,
or
equipment
,
or
services
furnished
and
used
in
the
performance
of
such
contract,
and
upon
which
sales
or
use
tax
has
been
paid,
and
shall
file
such
forms
with
the
designated
exempt
entity
which
has
made
any
written
contract
for
performance
by
the
contractor.
The
forms
shall
be
filed
by
the
contractor
with
the
designated
exempt
entity
before
final
settlement
is
made.
Sec.
72.
Section
423.31,
subsection
4,
Code
2021,
is
amended
to
read
as
follows:
4.
Every
retailer
at
the
time
of
making
any
return
required
by
this
section
shall
compute
and
pay
to
the
department
the
tax
due
for
the
preceding
period.
The
tax
on
sales
prices
from
the
sale
or
rental
of
tangible
personal
property
under
a
consumer
rental
purchase
agreement
as
defined
in
section
537.3604,
subsection
8
,
is
payable
in
the
tax
period
of
receipt.
Sec.
73.
Section
423B.8,
subsection
1,
Code
2021,
is
amended
to
read
as
follows:
1.
Construction
contractors
may
make
application
to
the
department
for
a
refund
of
the
additional
local
sales
and
services
tax
paid
under
this
chapter
by
reason
of
taxes
paid
on
goods,
wares,
or
merchandise
building
materials,
supplies,
or
equipment
under
the
following
conditions:
a.
The
goods,
wares,
or
merchandise
building
materials,
supplies,
or
equipment
are
incorporated
into
an
improvement
to
real
estate
in
fulfillment
of
a
written
contract
fully
executed
prior
to
the
date
of
the
imposition
of
a
local
sales
and
services
tax
under
this
chapter
.
The
refund
shall
not
apply
to
equipment
transferred
in
fulfillment
of
a
mixed
construction
contract.
b.
The
contractor
has
paid
to
the
department
or
to
a
retailer
the
full
amount
of
the
state
and
local
tax.
c.
The
claim
is
filed
on
forms
provided
by
the
department
and
is
filed
within
one
year
of
the
date
the
tax
is
paid.
DIVISION
XI
INTEREST
RATE
SET
BY
DIRECTOR
OF
REVENUE
Sec.
74.
Section
421.7,
subsection
6,
Code
2021,
is
amended
to
read
as
follows:
6.
In
October
November
of
each
year
the
director
shall
cause
Senate
File
366,
p.
34
an
advisory
notice
to
be
published
in
the
Iowa
administrative
bulletin
and
in
a
newspaper
of
general
circulation
in
this
state,
stating
the
rate
of
interest
to
be
in
effect
on
or
after
January
1
of
the
following
year,
as
established
by
this
section
.
The
calculation
and
publication
of
the
rate
of
interest
by
the
director
is
exempt
from
chapter
17A
.
DIVISION
XII
ASSESSORS
Sec.
75.
Section
441.6,
subsection
3,
Code
2021,
is
amended
to
read
as
follows:
3.
The
appointee
selected
by
the
conference
board
under
subsection
2
or
appointed
to
a
succeeding
term
under
section
441.8,
subsection
1,
shall
not
assume
the
office
of
city
or
county
assessor
until
such
appointment
is
confirmed
by
the
director
of
revenue.
If
the
director
of
revenue
rejects
the
appointment,
the
examining
board
shall
conduct
a
new
examination
and
submit
a
new
report
to
the
conference
board
under
subsection
1
.
The
director
of
revenue
shall
adopt
rules
pursuant
to
chapter
17A
to
implement
and
administer
this
subsection
.
Sec.
76.
Section
441.17,
subsection
2,
Code
2021,
is
amended
to
read
as
follows:
2.
Cause
to
be
assessed,
in
accordance
with
section
441.21
,
all
the
property
in
the
assessor’s
county
or
city,
except
property
exempt
from
taxation,
or
the
assessment
of
which
is
otherwise
provided
for
by
law.
However,
an
assessor
or
deputy
assessor
shall
not
personally
assess
a
property
if
the
person
or
a
member
of
the
person’s
immediate
family
owns
the
property,
has
a
financial
interest
in
the
property,
or
has
a
financial
interest
in
the
entity
that
owns
the
property.
The
director
of
revenue
shall
adopt
rules
pursuant
to
chapter
17A
to
implement
and
administer
this
subsection
.
Sec.
77.
Section
441.41,
Code
2021,
is
amended
to
read
as
follows:
441.41
Legal
counsel.
1.
In
the
case
of
cities
having
an
assessor,
the
city
legal
department
shall
represent
the
assessor
and
board
of
review
in
all
litigation
dealing
with
assessments.
In
the
case
of
counties,
the
county
attorney
shall
represent
the
assessor
and
Senate
File
366,
p.
35
board
of
review
in
all
litigation
dealing
with
assessments.
Any
taxing
district
interested
in
the
taxes
received
from
such
assessments
may
be
represented
by
an
attorney
and
shall
be
required
to
appear
by
attorney
upon
written
request
of
the
assessor
to
the
presiding
officer
of
any
such
taxing
district.
Subject
to
review
and
prior
approval
by
either
the
city
legal
department
in
the
case
of
a
city
or
the
county
attorney
in
the
case
of
a
county,
the
conference
board
may
employ
special
counsel
to
assist
the
city
legal
department
or
county
attorney
as
the
case
may
be.
2.
a.
Upon
the
employment
of
special
counsel
described
in
subsection
1,
the
assessor
shall
provide
a
report
to
the
department
of
revenue
relating
to
the
special
counsel
including
but
not
limited
to
the
following:
(1)
The
date
the
employment
started.
(2)
Justification
for
the
employment.
(3)
The
name
and
hourly
rate
of
the
special
counsel.
(4)
Any
other
information
the
department
may
require.
b.
An
assessor
shall
report
annually
to
the
director
of
revenue
on
the
cost
of
litigation
for
all
matters
dealing
with
assessments
in
which
special
counsel
assisted
the
city
legal
department
or
county
attorney
as
described
in
subsection
1.
c.
The
director
of
revenue
shall
adopt
rules
pursuant
to
chapter
17A
to
administer
this
section.
DIVISION
XIII
CONFIDENTIAL
INFORMATION
——
DEPARTMENT
OF
REVENUE
Sec.
78.
Section
422.20,
subsection
5,
paragraph
a,
Code
2021,
is
amended
by
adding
the
following
new
subparagraph:
NEW
SUBPARAGRAPH
.
(7)
A
return
as
defined
in
section
421.6.
Sec.
79.
Section
422.20,
subsection
5,
paragraph
c,
Code
2021,
is
amended
to
read
as
follows:
c.
Notwithstanding
paragraph
“a”
,
when
making
final
orders,
decisions,
or
opinions
available
for
public
inspection,
the
department
may
disclose
the
items
in
paragraph
“a”
if
the
department
determines
such
information
is
relevant
or
necessary
to
the
resolution
or
decision
of
the
appeal
or
case.
Sec.
80.
Section
422.72,
subsection
8,
paragraph
a,
Code
2021,
is
amended
by
adding
the
following
new
subparagraph:
NEW
SUBPARAGRAPH
.
(7)
A
return
as
defined
in
section
421.6.
Senate
File
366,
p.
36
Sec.
81.
Section
422.72,
subsection
8,
paragraph
c,
Code
2021,
is
amended
to
read
as
follows:
c.
Notwithstanding
paragraph
“a”
,
when
making
final
orders,
decisions,
or
opinions
available
for
public
inspection,
the
department
may
disclose
the
items
in
paragraph
“a”
if
the
department
determines
such
information
is
relevant
or
necessary
to
the
resolution
or
decision
of
the
appeal
or
case.
DIVISION
XIV
POWER
OF
ATTORNEY
——
DEPARTMENT
OF
REVENUE
Sec.
82.
Section
421.59,
subsections
2
and
3,
Code
2021,
are
amended
to
read
as
follows:
2.
The
Unless
otherwise
prohibited
by
law,
the
department
may
authorize
the
following
persons
to
act
and
receive
information
on
behalf
of
and
exercise
all
of
the
rights
of
a
taxpayer,
regardless
of
whether
a
power
of
attorney
has
been
filed
pursuant
to
subsection
1
:
a.
A
guardian,
conservator,
or
custodian
appointed
by
a
court,
if
a
taxpayer
has
been
deemed
legally
incompetent
by
a
court.
The
authority
of
the
appointee
to
act
on
behalf
of
the
taxpayer
shall
be
limited
to
the
extent
specifically
stated
in
the
order
of
appointment.
(1)
Upon
request,
a
guardian,
conservator,
or
custodian
of
a
taxpayer
shall
submit
to
the
department
a
copy
of
the
court
order
appointing
the
guardian,
conservator,
or
custodian.
(2)
The
department
may
has
standing
to
petition
the
court
that
appointed
the
guardian,
conservator,
or
custodian
to
verify
the
appointment
or
to
determine
the
scope
of
the
appointment.
b.
A
receiver
appointed
pursuant
to
chapter
680
.
An
appointed
receiver
shall
be
limited
to
act
on
behalf
of
the
taxpayer
by
the
authority
stated
in
the
order
of
appointment.
(1)
Upon
the
request
of
the
department,
a
receiver
shall
submit
to
the
department
a
copy
of
the
court
order
appointing
the
receiver.
(2)
The
department
may
has
standing
to
petition
the
court
that
appointed
the
receiver
to
verify
the
appointment
or
to
determine
the
scope
of
the
appointment.
c.
An
individual
who
has
been
named
as
an
authorized
representative
on
a
fiduciary
return
of
income
filed
under
Senate
File
366,
p.
37
section
422.14
or
a
tax
return
filed
under
chapter
450
.
d.
(1)
An
individual
holding
the
following
title
or
position
within
a
corporation,
association,
partnership,
or
other
business
entity:
(a)
A
president
or
chief
executive
officer,
or
any
other
officer
of
the
corporation
or
association
if
the
president
or
chief
executive
officer
certifies
that
the
officer
has
the
authority
to
legally
bind
the
corporation
or
association.
(b)
A
designated
partner
duly
authorized
to
act
on
behalf
of
the
partnership.
(c)
A
person
authorized
to
act
on
behalf
of
a
limited
liability
company
in
tax
matters
pursuant
to
a
valid
statement
of
authority.
(2)
An
individual
seeking
to
act
on
behalf
of
a
taxpayer
pursuant
to
this
paragraph
shall
file
an
affidavit
with
the
department
attesting
to
the
identity
and
qualifications
of
the
individual
and
any
necessary
certifications
required
under
this
paragraph
affirm
the
authority
of
the
individual
to
act
on
behalf
of
the
corporation,
association,
partnership,
or
other
entity
in
a
manner
designated
by
the
department
.
The
department
may
require
any
documents
or
other
evidence
to
demonstrate
the
individual
has
authority
to
act
on
behalf
of
the
taxpayer
corporation,
association,
partnership,
or
other
entity
before
the
department.
e.
A
licensed
attorney
who
has
appeared
on
behalf
of
the
taxpayer
or
the
taxpayer’s
probate
estate
in
a
court
proceeding.
Authorization
under
this
paragraph
is
limited
to
those
matters
within
the
scope
of
the
representation.
f.
A
parent
or
guardian
of
a
taxpayer
who
has
not
reached
the
age
of
majority
where
the
same
parent
or
guardian
has
signed
the
taxpayer’s
return
on
behalf
of
the
taxpayer.
Authorization
under
this
paragraph
is
limited
to
those
matters
relating
to
the
return
signed
by
the
parent
or
guardian.
Authorization
under
this
paragraph
automatically
terminates
when
the
taxpayer
reaches
the
age
of
majority
pursuant
to
section
599.1
.
g.
A
representative
of
a
government
entity.
An
individual
seeking
to
act
on
behalf
of
a
government
entity
pursuant
to
this
paragraph
shall
affirm
the
authority
of
the
individual
to
Senate
File
366,
p.
38
act
on
behalf
of
the
government
entity
in
a
manner
designated
by
the
department.
The
department
may
require
evidence
to
demonstrate
the
individual
has
authority
to
act
on
behalf
of
the
government
entity.
h.
An
executor
or
personal
representative
of
an
estate.
(1)
Upon
request,
the
executor
or
personal
representative
shall
submit
to
the
department
a
copy
of
the
will
or
court
order
appointing
the
executor
or
personal
representative.
(2)
The
department
has
standing
to
petition
the
court
that
appointed
the
executor
or
personal
representative
to
verify
the
appointment
or
to
determine
the
scope
of
the
appointment.
3.
a.
In
lieu
of
executing
a
power
of
attorney
pursuant
to
subsection
1
,
the
department
may
enter
into
a
memorandum
of
understanding
with
the
allow
a
taxpayer
for
each
employee,
officer,
or
member
of
a
third-party
to
designate
an
entity
engaged
with
or
otherwise
hired
by
a
taxpayer
to
manage
the
tax
matters
of
the
taxpayer,
to
permit
the
disclosure
of
confidential
tax
information
to
the
third-party
entity
and
the
authority
to
act
on
behalf
of
the
taxpayer.
An
entity
so
designated
may
appoint
or
remove
its
own
employees
to
carry
out
acts
authorized
by
the
taxpayer
on
the
entity’s
behalf.
The
memorandum
of
understanding
shall
adhere
to
requirements
as
established
by
the
director
department
may
designate
the
methods
by
which
such
designation
and
appointments
may
occur
.
b.
The
memorandum
of
understanding
shall
be
signed
by
the
director,
the
taxpayer,
and
the
third-party
entity
or
an
authorized
representative
of
the
third-party
entity.
c.
At
any
time,
a
taxpayer
may
unilaterally
revoke
a
memorandum
of
understanding
entered
into
designation
pursuant
to
this
subsection
by
filing
a
notice
of
revocation
with
the
department.
Upon
the
filing
of
such
a
revocation
by
the
taxpayer,
the
department
shall
cease
honoring
the
memorandum
of
understanding
designation
.
DIVISION
XV
SALES
AND
USE
TAX
REFUNDS
Sec.
83.
Section
15.331A,
subsection
2,
paragraph
c,
Code
2021,
is
amended
to
read
as
follows:
c.
The
eligible
business
shall
inform
the
department
of
revenue
in
writing
within
two
weeks
of
after
project
Senate
File
366,
p.
39
completion.
For
purposes
of
this
section
,
“project
completion”
means
the
first
date
upon
which
the
average
annualized
production
of
finished
product
for
the
preceding
ninety-day
period
at
the
manufacturing
facility
operated
by
the
eligible
business
is
at
least
fifty
percent
of
the
initial
design
capacity
of
the
facility.
Sec.
84.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
enactment.
Sec.
85.
APPLICABILITY.
This
division
of
this
Act
applies
to
refund
claims
filed
on
or
after
the
effective
date
of
this
division
of
this
Act.
______________________________
JAKE
CHAPMAN
President
of
the
Senate
______________________________
PAT
GRASSLEY
Speaker
of
the
House
I
hereby
certify
that
this
bill
originated
in
the
Senate
and
is
known
as
Senate
File
366,
Eighty-ninth
General
Assembly.
______________________________
W.
CHARLES
SMITHSON
Secretary
of
the
Senate
Approved
_______________,
2021
______________________________
KIM
REYNOLDS
Governor