Bill Text: IA SF512 | 2015-2016 | 86th General Assembly | Introduced

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Bill Title: A bill for an act relating to state revenue and finance laws by exempting certain all-terrain vehicles and off-road utility vehicles from the sales and use tax, modifying the flood mitigation program, and providing an individual income tax exemption for certain payments made to nonresident utility workers, and including effective date and retroactive applicability provisions. (Formerly SSB 1291.)

Sponsorship: Committee Bill

Status: (Engrossed - Dead) 2015-06-04 - Read first time, referred to Ways & Means. H.J. 1135. [SF512 Detail]

Download: Iowa-2015-SF512-Introduced.html

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Senate File 512 - Introduced




                                 SENATE FILE       
                                 BY  COMMITTEE ON WAYS AND
                                     MEANS

                                 (SUCCESSOR TO SSB
                                     1291)

                                      A BILL FOR

  1 An Act relating to state revenue and finance laws by exempting
  2    certain all=terrain vehicles and off=road utility vehicles
  3    from the sales and use tax, modifying the flood mitigation
  4    program, and providing an individual income tax exemption
  5    for certain payments made to nonresident utility workers,
  6    and including effective date and retroactive applicability
  7    provisions.
  8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN



  1  1                           DIVISION I
  1  2                       SALES AND USE TAXES
  1  3    Section 1.  Section 423.3, subsection 8, paragraph d, Code
  1  4 2015, is amended to read as follows:
  1  5    d.  (1)  For purposes of this subsection, the following
  1  6 items are exempt under paragraph "a" when used primarily in
  1  7 agricultural production:
  1  8    (a)  A diesel fuel trailer, regardless of the vehicle to
  1  9 which it is to be attached.
  1 10    (b)  A seed tender, regardless of the vehicle to which it is
  1 11 to be attached.
  1 12    (c)  An all=terrain vehicle.
  1 13    (d)  An off=road utility vehicle.
  1 14    (2)  For purposes of this paragraph:
  1 15    (a)  "All=terrain vehicle" means the same as defined in
  1 16 section 321I.1.
  1 17    (a)  (b)  "Fuel trailer" means a trailer that holds dyed
  1 18 diesel fuel or diesel exhaust fluid and that is used to
  1 19 transport such fuel or fluid to a self=propelled implement of
  1 20 husbandry.
  1 21    (c)  "Off=road utility vehicle" means the same as defined in
  1 22 section 321I.1.
  1 23    (b)  (d)  "Seed tender" means a trailer that holds seed and
  1 24 that is used to transport seed to an implement of husbandry and
  1 25 load seed into an implement of husbandry.
  1 26                           DIVISION II
  1 27                    FLOOD MITIGATION PROGRAM
  1 28    Sec. 2.  Section 418.5, subsections 1 and 6, Code 2015, are
  1 29 amended to read as follows:
  1 30    1.  The flood mitigation board is established consisting
  1 31 of nine voting members and four five ex officio, nonvoting
  1 32 members, and is located for administrative purposes within
  1 33 the department. The director of the department shall provide
  1 34 office space, staff assistance, and necessary supplies and
  1 35 equipment for the board. The director shall budget funds to
  2  1 pay the necessary expenses of the board. In performing its
  2  2 functions, the board is performing a public function on behalf
  2  3 of the state and is a public instrumentality of the state.
  2  4    6.  The board's ex officio membership shall include be
  2  5 comprised of the following:
  2  6    a.  four Four members of the general assembly with one
  2  7 each appointed by the majority leader of the senate, the
  2  8 minority leader of the senate, the speaker of the house of
  2  9 representatives, and the minority leader of the house of
  2 10 representatives. A legislative member serves for a term as
  2 11 provided in section 69.16B in an ex officio, nonvoting capacity
  2 12 and is eligible for per diem and expenses as provided in
  2 13 section 2.10.
  2 14    b.  The director of revenue or the director's designee.
  2 15                          DIVISION III
  2 16    INDIVIDUAL INCOME TAX EXEMPTION FOR CERTAIN PAYMENTS MADE
  2 17             TO NONRESIDENT ELECTRIC UTILITY WORKERS
  2 18    Sec. 3.  Section 422.7, Code 2015, is amended by adding the
  2 19 following new subsection:
  2 20    NEW SUBSECTION.  57.  a.  Subtract, to the extent included,
  2 21 payments received by an individual from an electric utility for
  2 22 the following:
  2 23    (1)  Emergency response work performed in this state for the
  2 24 electric utility pursuant to a mutual aid agreement between
  2 25 this state and any other state if such emergency response work
  2 26 is performed while the individual is a nonresident.
  2 27    (2)  Training received in this state from the electric
  2 28 utility if such training is received while the individual is
  2 29 a nonresident.
  2 30    b.  For purposes of this subsection, "electric utility" means
  2 31 the same as defined in section 476.22.
  2 32    Sec. 4.  Section 422.16, subsection 1, Code 2015, is amended
  2 33 by adding the following new paragraph:
  2 34    NEW PARAGRAPH.  f.  Nonresidents engaged in emergency
  2 35 response work or training meeting the requirements of section
  3  1 422.7, subsection 57, are not subject to withholding by the
  3  2 applicable electric utility for which such emergency response
  3  3 work or training is being performed if the electric utility has
  3  4 applied to the department for exemption from the withholding
  3  5 requirement and the department has determined that the payments
  3  6 received by the nonresidents would be exempt from taxation
  3  7 pursuant to section 422.7, subsection 57.
  3  8    Sec. 5.  EFFECTIVE UPON ENACTMENT.  This division of this
  3  9 Act, being deemed of immediate importance, takes effect upon
  3 10 enactment.
  3 11    Sec. 6.  RETROACTIVE APPLICABILITY.  This division of this
  3 12 Act applies retroactively to January 1, 2015, for tax years
  3 13 beginning on or after that date.
  3 14                           EXPLANATION
  3 15 The inclusion of this explanation does not constitute agreement with
  3 16 the explanation's substance by the members of the general assembly.
  3 17    This bill relates to state revenue and finance laws,
  3 18 including the sales and use tax, flood mitigation program, and
  3 19 individual income tax.
  3 20    DIVISION I ==== SALES AND USE TAXES.  Division I exempts
  3 21 the sales price of all=terrain vehicles and off=road utility
  3 22 vehicles used primarily in agricultural production from the
  3 23 sales and use tax. Under current law, such vehicles are not
  3 24 exempt from sales and use tax unless they are directly and
  3 25 primarily used in production of agricultural products.
  3 26    "All=terrain vehicle" means a motorized vehicle with not
  3 27 less than three and not more than six nonhighway tires that
  3 28 is limited in engine displacement to less than 1,000 cubic
  3 29 centimeters and in total dry weight to less than 1,200 pounds
  3 30 and that has a seat or saddle designed to be straddled by the
  3 31 operator and handlebars for steering control.
  3 32    "Off=road utility vehicle" means a motorized vehicle with
  3 33 not less than four and not more than eight nonhighway tires or
  3 34 rubberized tracks that has a seat that is of bucket or bench
  3 35 design, not intended to be straddled by the operator, and a
  4  1 steering wheel or control levers for control.
  4  2    By operation of Code section 423.6, an item exempt from the
  4  3 imposition of the sales tax is also exempt from the use tax
  4  4 imposed in Code section 423.5.
  4  5    DIVISION II ==== FLOOD MITIGATION PROGRAM.  Division II adds
  4  6 the director of revenue, or a designee of the director, as an
  4  7 ex officio, nonvoting member of the flood mitigation board
  4  8 created in Code chapter 418.  The flood mitigation board is
  4  9 currently composed of nine voting members and four ex officio,
  4 10 nonvoting members who are members of the general assembly, and
  4 11 is responsible for overseeing the flood mitigation program
  4 12 administered by the department of homeland security and
  4 13 emergency management.
  4 14    DIVISION III ==== INDIVIDUAL INCOME TAX.  Division III
  4 15 provides an individual income tax exemption for payments
  4 16 received by a nonresident from an electric utility for
  4 17 emergency response work performed in Iowa for the electric
  4 18 utility pursuant to a mutual aid agreement or for training
  4 19 received in Iowa from the electric utility.  The division
  4 20 also provides that nonresidents engaged in such emergency
  4 21 response work or training are not subject to individual
  4 22 income tax withholding requirements for the exempt payments if
  4 23 the electric utility for which such emergency response work
  4 24 or training is being performed applies for and receives a
  4 25 withholding exemption from the department of revenue.  Division
  4 26 III takes effect upon enactment and applies retroactively to
  4 27 tax years beginning on or after January 1, 2015.
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