Bill Text: IA SF459 | 2017-2018 | 87th General Assembly | Introduced
Bill Title: A bill for an act relating to state taxation by creating an excise tax on the sale and use of bottled water, providing for the transfer of the excise tax revenues, and making appropriations.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2017-03-07 - Subcommittee: Feenstra, Brown, and Dotzler. S.J. 509. [SF459 Detail]
Download: Iowa-2017-SF459-Introduced.html
Senate File 459 - Introduced SENATE FILE BY DVORSKY A BILL FOR 1 An Act relating to state taxation by creating an excise 2 tax on the sale and use of bottled water, providing for 3 the transfer of the excise tax revenues, and making 4 appropriations. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 2405XS (2) 87 mm/sc/rj PAG LIN 1 1 Section 1. NEW SECTION. 423G.1 Definitions. 1 2 1. For purposes of this chapter, "bottled water" means 1 3 carbonated or noncarbonated water that is placed in a sealed 1 4 bottle or other container for the purpose of sale to the public 1 5 for human consumption. "Bottled water" does not include soft 1 6 drinks as defined in section 423.3, subsection 57, paragraph 1 7 "g". 1 8 2. All other words and phrases used in this chapter and 1 9 defined in section 423.1 have the meaning given them by section 1 10 423.1 for purposes of this chapter. 1 11 Sec. 2. NEW SECTION. 423G.2 Tax imposed. 1 12 1. A tax of six percent is imposed on the following: 1 13 a. The sales price of bottled water sold in the state of 1 14 Iowa. 1 15 b. The purchase price of bottled water used in the state of 1 16 Iowa. 1 17 2. This tax shall be collected and paid over to the 1 18 department by any retailer, retailer maintaining a place of 1 19 business in this state, or user who would be responsible for 1 20 collection and payment of the tax if it were a sales or use tax 1 21 imposed under chapter 423. 1 22 Sec. 3. NEW SECTION. 423G.3 Exemptions. 1 23 1. The sales price or purchase price from transactions 1 24 exempt from state sales tax under section 423.3, except section 1 25 423.3, subsections 57 and 58, is also exempt from the tax 1 26 imposed by this chapter. 1 27 2. There is exempted from the computation of the amount 1 28 of tax imposed on the use of bottled water in section 423G.2, 1 29 subsection 1, paragraph "b", bottled water the sale of which 1 30 is required to be included in the measure of the tax imposed 1 31 on the sale of bottled water in section 423G.2, subsection 1, 1 32 paragraph "a", if the tax has been paid to the department or 1 33 the retailer. 1 34 Sec. 4. NEW SECTION. 423G.4 Taxation in another state. 1 35 If any person who causes bottled water to be brought into 2 1 this state or who uses bottled water in this state has already 2 2 paid a tax in another state in respect to the sale or use of 2 3 the bottled water, or an occupation tax in respect to the 2 4 bottled water, in an amount less than the tax imposed by this 2 5 chapter, the provisions of this chapter shall apply, but at a 2 6 rate measured by the difference only between the rate fixed by 2 7 this chapter and the rate by which the previous tax on the sale 2 8 or use, or the occupation tax, was computed. A tax is not due 2 9 in this state on the bottled water if the tax imposed and paid 2 10 in the other state is equal to or more than the tax imposed by 2 11 this chapter. 2 12 Sec. 5. NEW SECTION. 423G.5 Administration by director. 2 13 1. The director of revenue shall administer the excise tax 2 14 on the sale and use of bottled water as nearly as possible in 2 15 conjunction with the administration of the state sales and use 2 16 tax law, except that portion of the law that implements the 2 17 streamlined sales and use tax agreement. The director shall 2 18 provide appropriate forms, or provide on the regular state tax 2 19 forms, for reporting bottled water tax liability. 2 20 2. The director may require all persons who are engaged 2 21 in the business of deriving any sales price or purchase 2 22 price subject to tax under this chapter to register with 2 23 the department. The director may also require a tax permit 2 24 applicable only to this chapter for any retailer not 2 25 collecting, or any user not paying, taxes under chapter 423. 2 26 3. Section 422.25, subsection 4, sections 422.30, 422.67, 2 27 and 422.68, section 422.69, subsection 1, sections 422.70, 2 28 422.71, 422.72, 422.74, and 422.75, section 423.14, subsection 2 29 1, and sections 423.23, 423.24, 423.25, 423.31 through 2 30 423.35, 423.37 through 423.42, and 423.47, consistent with the 2 31 provisions of this chapter, shall apply with respect to the 2 32 tax authorized under this chapter, in the same manner and with 2 33 the same effect as if the excise taxes on the sale or use of 2 34 bottled water were retail sales taxes within the meaning of 2 35 those statutes. Notwithstanding this subsection, the director 3 1 shall provide for quarterly filing of returns and for other 3 2 than quarterly filing of returns both as prescribed in section 3 3 423.31. All taxes collected under this chapter by a retailer 3 4 or any user are deemed to be held in trust for the state of 3 5 Iowa. 3 6 Sec. 6. NEW SECTION. 423G.6 Deposit of revenues. 3 7 1. All moneys received and all refunds shall be deposited in 3 8 or withdrawn from the general fund of the state. 3 9 2. Subsequent to the deposit in the general fund of the 3 10 state, the department shall transfer the revenues collected 3 11 under this chapter to the water quality initiative fund created 3 12 in section 466B.45. 3 13 Sec. 7. NEW SECTION. 423G.7 Future repeal. 3 14 This chapter is repealed upon the occurrence of one of the 3 15 following, whichever is earlier: 3 16 1. The enactment date that the tax rate for the sales 3 17 tax imposed upon the retail sales price of tangible personal 3 18 property and the furnishing of enumerated services sold in this 3 19 state in effect on July 1, 2016, is increased. 3 20 2. July 1, 2029. 3 21 Sec. 8. Section 466B.45, subsection 2, Code 2017, is amended 3 22 to read as follows: 3 23 2. The fund shall include moneys transferred to the fund 3 24 by law or appropriated by the general assembly. The fund may 3 25 include other moneys available to and obtained or accepted by 3 26 the division, including moneys from public or private sources. 3 27 EXPLANATION 3 28 The inclusion of this explanation does not constitute agreement with 3 29 the explanation's substance by the members of the general assembly. 3 30 This bill relates to state taxation by creating an excise tax 3 31 on the sale or use of bottled water, providing for the transfer 3 32 of the excise tax revenues, and making appropriations. 3 33 The bill creates an excise tax at the rate of 6 percent on 3 34 the sales price or purchase price of bottled water sold or used 3 35 in Iowa. "Bottled water" is defined in the bill. The director 4 1 of revenue is required to administer the excise tax as nearly 4 2 as possible in conjunction with the administration of the state 4 3 sales and use tax laws, and, to that end, the bill incorporates 4 4 by reference numerous Code sections that relate to general tax 4 5 administration and the sales and use tax laws. 4 6 The bill exempts from the excise tax any transaction that 4 7 would be exempt from the state sales tax under Code section 4 8 423.3 (sales tax exemptions), except for the exemptions for 4 9 food and food ingredients in Code section 423.3(57) and for 4 10 items purchased with food stamps and other similar federal 4 11 benefits in Code section 423.3(58). The bill also exempts the 4 12 use of bottled water from the tax if the excise tax has already 4 13 been paid on the purchase of the bottled water. Finally, the 4 14 bill provides a credit equal to the amount of similar tax paid 4 15 in another state by the same taxpayer relating to the bottled 4 16 water subject to the excise tax in Iowa. However, the credit 4 17 cannot exceed the amount of excise tax due in Iowa on the 4 18 bottled water. 4 19 Bottled water excise tax revenues are deposited in the 4 20 general fund of the state, and the bill then requires all 4 21 excise tax revenues to be transferred to the water quality 4 22 initiative fund created in Code section 466B.45. 4 23 The bottled water excise tax is repealed on the enactment 4 24 date that the state sales tax rate in effect on July 1, 2016, is 4 25 increased or on July 1, 2029, whichever occurs earlier. LSB 2405XS (2) 87 mm/rj
