Bill Text: IA SF565 | 2023-2024 | 90th General Assembly | Enrolled
Bill Title: A bill for an act relating to state and local finance and the administration of the tax and related laws by the department of revenue, and including effective date, applicability, and retroactive applicability provisions. (Formerly SSB 1148.) Effective date: 06/01/2023, 07/01/2023, 01/01/2024, 01/01/2026. Applicability date: 01/01/2023, 07/01/2024.
Spectrum: Committee Bill
Status: (Passed) 2023-06-01 - Signed by Governor. S.J. 1088. [SF565 Detail]
Download: Iowa-2023-SF565-Enrolled.html
Senate
File
565
-
Enrolled
Senate
File
565
AN
ACT
RELATING
TO
STATE
AND
LOCAL
FINANCE
AND
THE
ADMINISTRATION
OF
THE
TAX
AND
RELATED
LAWS
BY
THE
DEPARTMENT
OF
REVENUE,
AND
INCLUDING
EFFECTIVE
DATE,
APPLICABILITY,
AND
RETROACTIVE
APPLICABILITY
PROVISIONS.
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
DIVISION
I
IOWA
EDUCATIONAL
SAVINGS
PLAN
AND
FIRST-TIME
HOMEBUYERS
DUE
DATES
Section
1.
Section
422.7,
subsection
22,
paragraph
a,
Code
2023,
is
amended
to
read
as
follows:
a.
Subtract
the
maximum
contribution
that
may
be
deducted
for
Iowa
income
tax
purposes
as
a
participant
in
the
Iowa
educational
savings
plan
trust
pursuant
to
section
12D.3,
subsection
1
.
For
purposes
of
this
paragraph,
a
participant
who
makes
a
contribution
on
or
before
the
date
prescribed
in
section
422.21
for
making
and
filing
an
individual
income
tax
return,
excluding
extensions
,
or
the
date
for
making
and
filing
an
individual
income
tax
return
determined
by
the
director
pursuant
to
an
order
issued
under
section
421.17,
subsection
30
,
may
elect
to
be
deemed
to
have
made
the
contribution
on
the
last
day
of
the
preceding
calendar
year.
The
director,
after
consultation
with
the
treasurer
of
state,
shall
prescribe
by
rule
the
manner
and
method
by
which
a
participant
may
make
an
election
authorized
by
the
preceding
sentence.
Senate
File
565,
p.
2
Sec.
2.
Section
541B.3,
subsection
1,
paragraph
a,
Code
2023,
is
amended
to
read
as
follows:
a.
Beginning
January
1,
2018,
an
An
individual
may
open
an
interest-bearing
savings
account
with
a
financial
institution
and
designate
the
entire
account
as
a
first-time
homebuyer
savings
account
for
the
purpose
of
paying
or
reimbursing
a
designated
beneficiary’s
eligible
home
costs
in
connection
with
a
qualified
home
purchase.
The
first-time
homebuyer
savings
account
designation
shall
be
made
no
later
than
April
30
of
the
year
following
the
tax
year
during
which
the
account
is
opened,
on
forms
provided
by
the
department
and
shall
be
submitted
on
or
before
the
date
prescribed
in
section
422.21
for
making
and
filing
an
individual
income
tax
return,
excluding
extensions,
or
the
date
for
making
and
filing
an
individual
income
tax
return
determined
by
the
director
pursuant
to
an
order
issued
under
section
421.17,
subsection
30,
applicable
to
the
tax
year
in
which
the
account
is
opened
.
Sec.
3.
Section
541B.3,
subsection
2,
paragraph
a,
Code
2023,
is
amended
to
read
as
follows:
a.
The
account
holder
shall
designate
one
individual
as
beneficiary
of
the
first-time
homebuyer
savings
account.
The
designation
shall
be
made
on
forms
provided
by
the
department
and
no
later
than
April
30
of
the
year
following
the
tax
year
during
which
the
account
is
opened
and
shall
be
submitted
on
or
before
the
date
prescribed
in
section
422.21
for
making
and
filing
an
individual
income
tax
return,
excluding
extensions,
or
the
date
for
making
and
filing
an
individual
income
tax
return
determined
by
the
director
pursuant
to
an
order
issued
under
section
421.17,
subsection
30,
applicable
to
the
tax
year
in
which
the
designation
is
made
.
The
account
holder
may
change
the
designated
beneficiary
of
the
first-time
homebuyer
savings
account
at
any
time.
DIVISION
II
BONUS
DEPRECIATION
AND
INCREASED
EXPENSING
——
APPLICABILITY
Sec.
4.
2018
Iowa
Acts,
chapter
1161,
section
134,
is
amended
to
read
as
follows:
SEC.
134.
APPLICABILITY.
1.
This
division
of
this
Act
applies
to
tax
years
beginning
on
or
after
the
effective
date
of
this
division
of
this
Act.
Senate
File
565,
p.
3
2.
The
repeal
of
section
422.7,
subsections
39,
39B,
43,
and
53,
and
section
422.35,
subsections
19,
19B,
20,
and
24,
relating
to
bonus
depreciation
under
section
168
of
the
Internal
Revenue
Code
or
increased
expensing
under
section
179
of
the
Internal
Revenue
Code,
applies
to
property
placed
in
service
on
or
after
the
effective
date
of
this
division
of
this
Act.
Sec.
5.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
enactment.
Sec.
6.
RETROACTIVE
APPLICABILITY.
This
division
of
this
Act
applies
retroactively
to
January
1,
2023,
for
tax
years
beginning
on
or
after
that
date.
DIVISION
III
TAX
FILING
STATUS
MODIFICATIONS
Sec.
7.
Section
422.5,
Code
2023,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
12.
For
tax
years
beginning
on
or
after
January
1,
2023,
a
taxpayer
shall
use
the
same
filing
status
for
Iowa
income
tax
purposes
as
the
taxpayer
used
for
federal
income
tax
purposes.
Sec.
8.
Section
422.7,
subsection
4,
Code
2023,
is
amended
to
read
as
follows:
4.
Individual
taxpayers
and
married
taxpayers
who
file
a
joint
federal
income
tax
return
and
who
elect
to
file
a
joint
return
or
separate
returns
for
Iowa
income
tax
purposes
may
avail
themselves
of
the
disability
income
exclusion
and
shall
compute
the
amount
of
the
disability
income
exclusion
subject
to
the
limitations
for
joint
federal
income
tax
return
filers
provided
by
section
105(d)
of
the
Internal
Revenue
Code.
The
disability
income
exclusion
provided
in
section
105(d)
of
the
Internal
Revenue
Code,
as
amended
up
to
and
including
December
31,
1982,
continues
to
apply
for
state
income
tax
purposes
for
tax
years
beginning
on
or
after
January
1,
1984.
Sec.
9.
Section
422.7,
subsection
5,
paragraph
a,
Code
2023,
is
amended
to
read
as
follows:
a.
For
tax
years
beginning
in
the
2023
calendar
year,
subtract
the
amount
of
federal
income
taxes
paid
during
the
tax
year
to
the
extent
payment
is
for
a
tax
year
beginning
prior
to
January
1,
2023,
and
add
any
federal
income
tax
refunds
Senate
File
565,
p.
4
received
during
the
tax
year
to
the
extent
the
federal
income
tax
was
deducted
for
a
tax
year
beginning
prior
to
January
1,
2023.
Where
married
persons
who
have
filed
a
joint
federal
income
tax
return
file
separately
for
state
tax
purposes,
such
total
shall
be
divided
between
them
according
to
the
portion
of
the
total
paid
by
each.
Federal
income
taxes
paid
for
a
tax
year
in
which
an
Iowa
return
was
not
required
to
be
filed
shall
not
be
subtracted.
Sec.
10.
Section
422.12B,
subsection
2,
Code
2023,
is
amended
to
read
as
follows:
2.
Married
taxpayers
electing
to
file
separate
returns
may
avail
themselves
of
the
earned
income
credit
by
allocating
the
earned
income
credit
to
each
spouse
in
the
proportion
that
each
spouse’s
respective
earned
income
bears
to
the
total
combined
earned
income.
Taxpayers
affected
by
the
allocation
provisions
of
section
422.8
shall
be
permitted
a
deduction
for
the
credit
only
in
the
amount
fairly
and
equitably
allocable
to
Iowa
under
rules
prescribed
by
the
director.
Sec.
11.
Section
422.12C,
subsection
4,
Code
2023,
is
amended
to
read
as
follows:
4.
Married
taxpayers
who
have
filed
joint
federal
returns
electing
to
file
separate
returns
must
determine
the
child
and
dependent
care
credit
under
subsection
1
or
the
early
childhood
development
tax
credit
under
subsection
2
based
upon
their
combined
net
income
and
allocate
the
total
credit
amount
to
each
spouse
in
the
proportion
that
each
spouse’s
respective
net
income
bears
to
the
total
combined
net
income.
Nonresidents
or
part-year
residents
of
Iowa
must
determine
their
Iowa
child
and
dependent
care
credit
in
the
ratio
of
their
Iowa
source
net
income
to
their
all
source
net
income.
Nonresidents
or
part-year
residents
who
are
married
and
elect
to
file
separate
returns
must
allocate
the
Iowa
child
and
dependent
care
credit
between
the
spouses
in
the
ratio
of
each
spouse’s
Iowa
source
net
income
to
the
combined
Iowa
source
net
income
of
the
taxpayers.
Sec.
12.
RETROACTIVE
APPLICABILITY.
This
division
of
this
Act
applies
retroactively
to
January
1,
2023,
for
tax
years
beginning
on
or
after
that
date.
DIVISION
IV
Senate
File
565,
p.
5
WITHHOLDING
Sec.
13.
Section
99B.8,
Code
2023,
is
amended
to
read
as
follows:
99B.8
Tax
on
prizes.
All
prizes
awarded
pursuant
to
a
gambling
activity
under
this
chapter
are
Iowa
earned
income
and
are
subject
to
state
and
federal
income
tax
laws.
A
person
conducting
a
game
of
skill,
game
of
chance,
bingo,
or
a
raffle
shall
deduct
state
income
taxes,
pursuant
to
section
422.16,
subsection
1
2
,
from
a
cash
prize
awarded
to
an
individual.
An
amount
deducted
from
the
prize
for
payment
of
a
state
tax
shall
be
remitted
to
the
department
of
revenue
on
behalf
of
the
prize
winner.
Sec.
14.
Section
99D.16,
Code
2023,
is
amended
to
read
as
follows:
99D.16
Withholding
tax
on
winnings.
All
winnings
provided
in
section
99D.11
are
Iowa
earned
income
and
are
subject
to
state
and
federal
income
tax
laws.
An
amount
deducted
from
winnings
for
payment
of
the
state
tax,
pursuant
to
section
422.16,
subsection
1
2
,
shall
be
remitted
to
the
department
of
revenue
on
behalf
of
the
individual
who
won
the
wager.
Sec.
15.
Section
99F.18,
Code
2023,
is
amended
to
read
as
follows:
99F.18
Tax
on
winnings.
All
winnings
derived
from
slot
machines
operated
pursuant
to
this
chapter
are
Iowa
earned
income
and
are
subject
to
state
and
federal
income
tax
laws.
An
amount
deducted
from
winnings
for
payment
of
the
state
tax,
pursuant
to
section
422.16,
subsection
1
2
,
shall
be
remitted
to
the
department
of
revenue
on
behalf
of
the
winner.
Sec.
16.
Section
99G.31,
subsection
3,
paragraph
i,
Code
2023,
is
amended
to
read
as
follows:
i.
The
proceeds
of
any
lottery
prize
shall
be
subject
to
state
and
federal
income
tax
laws.
An
amount
deducted
from
the
prize
for
payment
of
a
state
tax,
pursuant
to
section
422.16,
subsection
1
2
,
shall
be
transferred
by
the
authority
to
the
department
of
revenue
on
behalf
of
the
prize
winner.
Sec.
17.
Section
422.16,
Code
2023,
is
amended
by
striking
the
section
and
inserting
in
lieu
thereof
the
following:
Senate
File
565,
p.
6
422.16
Withholding
of
income
tax
at
source
——
penalties
——
interest
——
declaration
of
estimated
tax
——
bond.
1.
As
used
in
this
section,
unless
the
context
otherwise
requires,
“withholding
agent”
means
any
individual,
fiduciary,
estate,
trust,
corporation,
partnership
or
association
in
whatever
capacity
acting
and
including
all
officers
and
employees
of
the
state
of
Iowa,
or
any
municipal
corporation
of
the
state
of
Iowa
and
of
any
school
district
or
school
board
of
the
state,
or
of
any
political
subdivision
of
the
state
of
Iowa,
or
any
tax-supported
unit
of
government
that
is
obligated
to
pay
or
has
control
of
paying
or
does
pay
to
any
resident
or
nonresident
of
the
state
of
Iowa
or
the
resident’s
or
nonresident’s
agent
any
wages
that
are
subject
to
the
Iowa
income
tax
in
the
hands
of
such
resident
or
nonresident,
or
any
of
the
above-designated
entities
making
payment
or
having
control
of
making
such
payment
of
any
taxable
Iowa
income
to
any
nonresident.
The
term
“withholding
agent”
shall
also
include
an
officer
or
employee
of
a
corporation
or
association,
or
a
member
or
employee
of
a
partnership,
who
as
such
officer,
employee,
or
member
has
the
responsibility
to
perform
an
act
under
this
section
and
who
subsequently
knowingly
violates
the
provisions
of
this
section.
The
term
“withholding
agent”
shall
also
include
every
employer
as
defined
in
this
subchapter
and
further
defined
in
the
Internal
Revenue
Code.
2.
a.
(1)
Every
withholding
agent
paying
wages
to
an
Iowa
resident,
or
nonresident
working
in
Iowa,
shall
deduct
and
withhold
from
the
wages
an
amount
which
will
approximate
the
annual
tax
liability
of
the
person
on
a
calendar
year
basis,
calculated
on
the
basis
of
tables
to
be
prepared
by
the
department
and
schedules
or
percentage
rates,
based
on
the
wages,
to
be
prescribed
by
the
department.
(2)
Every
employee
or
other
person
shall
declare
to
the
withholding
agent
the
amount
of
the
employee’s
or
other
person’s
withholding
allowance
to
be
used
in
applying
the
tables
and
schedules
or
percentage
rates.
However,
the
amount
of
withholding
allowance
declared
shall
not
exceed
the
amount
to
which
the
employee
or
other
person
is
entitled
except
as
allowed
under
sections
3402(m)(1)
and
3402(m)(3)
of
the
Internal
Revenue
Code
and
as
allowed
by
rules
prescribed
by
the
Senate
File
565,
p.
7
director.
The
claiming
of
an
amount
of
withholding
allowance
in
excess
of
entitlement
is
a
serious
misdemeanor.
b.
(1)
In
the
case
of
a
nonresident
having
income
subject
to
taxation
by
Iowa,
but
not
subject
to
withholding
of
such
tax
under
this
subsection
or
subject
to
the
provisions
of
section
422.16B,
a
withholding
agent
shall
withhold
from
such
income
at
the
same
rate
as
provided
in
this
subsection.
A
withholding
agent
and
nonresident
shall
be
subject
to
the
provisions
of
this
section,
according
to
the
context,
except
that
a
withholding
agent
may
be
absolved
of
the
requirement
to
withhold
taxes
from
the
income
of
a
nonresident
upon
receipt
of
a
certificate
from
the
department
issued
in
accordance
with
the
provisions
of
section
422.17.
(2)
In
the
case
of
a
nonresident
having
income
from
a
trade
or
business
carried
on
by
the
nonresident
in
whole
or
in
part
within
the
state
of
Iowa,
the
nonresident
shall
be
considered
to
be
subject
to
the
provisions
of
this
paragraph
unless
such
trade
or
business
is
of
such
nature
that
the
business
entity
itself,
as
a
withholding
agent,
is
required
to
and
does
withhold
Iowa
income
tax
from
the
distributions
made
to
such
nonresident
from
such
trade
or
business.
c.
For
the
purposes
of
this
subsection
,
at
a
rate
specified
by
the
department,
state
income
tax
shall
be
withheld
from
pensions,
annuities,
other
similar
periodic
payments,
and
other
income
payments
under
sections
3402(o),
3402(p),
3402(s),
3405(a),
3405(b),
and
3405(c)
of
the
Internal
Revenue
Code
made
to
Iowa
residents
if
the
payments
are
subject
to
Iowa
tax.
d.
For
the
purposes
of
this
subsection,
state
income
tax
shall
be
withheld
on
winnings
in
excess
of
six
hundred
dollars
derived
from
gambling
activities
authorized
under
chapter
99B
or
99G.
State
income
tax
shall
be
withheld
on
winnings
in
excess
of
one
thousand
dollars
from
gambling
activities
authorized
under
chapter
99D.
State
income
tax
shall
be
withheld
on
winnings
in
excess
of
one
thousand
two
hundred
dollars
derived
from
slot
machines
authorized
under
chapter
99F.
e.
For
the
purposes
of
this
subsection,
state
income
tax
shall
be
withheld
at
the
highest
rate
described
in
section
422.5A
from
supplemental
wages
of
an
employee
in
those
Senate
File
565,
p.
8
circumstances
in
which
the
employer
treats
the
supplemental
wages
as
wholly
separate
from
regular
wages
for
purposes
of
withholding
and
federal
income
tax
is
withheld
from
the
supplemental
wages
under
section
3402(g)
of
the
Internal
Revenue
Code.
3.
a.
A
withholding
agent
is
not
required
to
withhold
state
income
tax
from
payments
subject
to
taxation
made
to
a
nonresident
for
commodity
credit
certificates,
grain,
livestock,
domestic
fowl,
or
other
agricultural
commodities
or
products
sold
to
a
withholding
agent
by
a
nonresident
or
the
nonresident’s
representative,
if
the
withholding
agent
provides
on
forms
prescribed
by
the
department
information
relating
to
the
sales
required
by
the
department
to
determine
the
state
income
tax
liabilities
of
a
nonresident.
However,
a
withholding
agent
may
elect
to
make
estimated
tax
payments
on
behalf
of
a
nonresident
on
the
basis
of
the
net
income
of
the
nonresident
from
the
agricultural
commodities
or
products,
if
the
estimated
tax
payments
are
made
on
or
before
the
last
day
of
the
first
month
after
the
end
of
the
tax
years
of
the
nonresident.
b.
Nonresidents
engaged
in
any
facet
of
feature
film,
television,
or
educational
production
using
the
film
or
videotape
disciplines
in
the
state
are
not
subject
to
Iowa
withholding
if
the
employer
has
applied
to
the
department
for
exemption
from
the
withholding
requirement
and
the
department
has
determined
that
any
nonresident
receiving
wages
would
be
entitled
to
a
credit
against
Iowa
income
taxes
paid.
c.
Individuals
described
in
section
29C.24
are
not
subject
to
withholding,
as
provided
in
that
section.
4.
a.
A
withholding
agent
required
to
deduct
and
withhold
tax
under
subsection
2
shall
file
a
return
on
or
before
the
last
day
of
the
month
following
the
quarterly
period
on
forms
prescribed
by
the
director
and
remit
to
the
department
the
amount
of
tax
due
at
the
following
frequencies:
(1)
A
withholding
agent
shall
remit
income
tax
withheld
on
a
quarterly
basis
if
the
withholding
agent
withholds
less
than
six
thousand
dollars
annually
and
no
more
than
five
hundred
dollars
in
any
one
month.
Payment
shall
be
due
on
the
same
day
as
the
quarterly
return.
Senate
File
565,
p.
9
(2)
A
withholding
agent
shall
remit
income
tax
withheld
on
a
monthly
basis
if
the
withholding
agent
withholds
more
than
five
hundred
dollars
in
any
one
month
and
not
more
than
five
thousand
dollars
in
a
semimonthly
period.
Payment
shall
be
made
on
or
before
the
fifteenth
day
of
the
month
following
the
month
of
withholding,
except
that
a
deposit
for
the
third
month
in
a
calendar
quarter
shall
be
due
on
the
same
day
as
the
quarterly
return.
(3)
A
withholding
agent
shall
remit
income
tax
withheld
on
a
semimonthly
basis
if
the
withholding
agent
withholds
more
than
five
thousand
dollars
in
a
semimonthly
period.
The
first
semimonthly
deposit
for
the
period
from
the
first
of
the
month
through
the
fifteenth
of
the
month
is
due
on
the
twenty-fifth
day
of
the
month
in
which
the
withholding
occurs.
The
second
monthly
deposit
for
the
period
from
the
sixteenth
of
the
month
through
the
end
of
the
month
is
due
on
the
tenth
day
of
the
month
following
the
month
in
which
the
withholding
occurs.
(4)
A
withholding
agent
may
elect
to
remit
on
an
annual
basis
if
the
withholding
agent
employs
not
more
than
two
employees
and
expects
to
employ
the
employees
for
the
full
calendar
year.
The
electing
withholding
agent
shall
remit
the
full
amount
of
income
taxes
required
to
be
withheld
from
the
wages
of
the
employees
for
the
full
calendar
year
with
the
quarterly
return
for
the
first
calendar
quarter.
The
amount
to
be
paid
shall
be
computed
as
if
the
employees
were
employed
for
the
full
calendar
year
for
the
same
wages
and
with
the
same
pay
periods
as
prevailed
during
the
first
quarter
of
the
year
with
respect
to
such
employees.
The
electing
withholding
agent
shall
only
remit
the
lump
sum
payment
with
the
written
consent
of
all
employees
involved.
The
withholding
agent
shall
be
entitled
to
recover
from
the
employee
any
part
of
the
lump
sum
payment
that
represents
an
advance
to
the
employee.
If
a
withholding
agent
pays
a
lump
sum
with
the
first
quarterly
return,
the
withholding
agent
shall
be
excused
from
filing
further
quarterly
returns
for
the
calendar
year
involved
unless
the
withholding
agent
hires
other
or
additional
employees.
b.
Every
withholding
agent
on
or
before
February
15
following
the
close
of
the
calendar
year
in
which
the
withholding
occurs
shall
send
to
the
department
copies
of
Senate
File
565,
p.
10
income
statements
required
by
subsection
8.
At
the
discretion
of
the
director,
the
withholding
agent
shall
not
be
required
to
send
income
statements
if
the
information
is
available
from
the
internal
revenue
service
or
other
state
or
federal
agencies.
c.
If
the
director
has
reason
to
believe
that
the
collection
of
the
tax
provided
for
in
subsection
2
is
in
jeopardy,
the
director
may
require
the
withholding
agent
to
file
a
return
as
required
in
paragraph
“a”
,
and
pay
the
tax
at
any
time,
in
accordance
with
section
422.30.
The
director
may
authorize
incorporated
banks,
trust
companies,
or
other
depositories
authorized
by
law
which
are
depositories
or
financial
agents
of
the
United
States
or
of
this
state,
to
receive
any
tax
imposed
under
this
chapter,
in
the
manner,
at
the
times,
and
under
the
conditions
the
director
prescribes.
The
director
shall
also
prescribe
the
manner,
times,
and
conditions
under
which
the
receipt
of
the
tax
by
those
depositories
is
to
be
treated
as
payment
of
the
tax
to
the
department.
d.
The
director,
in
cooperation
with
the
department
of
management,
may
periodically
change
the
filing
and
remittance
thresholds
by
administrative
rule
if
in
the
best
interest
of
the
state
and
the
taxpayer.
5.
Every
withholding
agent
who
fails
to
withhold
or
pay
to
the
department
any
sums
required
by
this
chapter
to
be
withheld
and
paid,
shall
be
personally,
individually,
and
corporately
liable
to
the
state
of
Iowa,
and
any
sum
withheld
in
accordance
with
the
provisions
of
subsection
2,
shall
be
deemed
to
be
held
in
trust
for
the
state
of
Iowa.
Notwithstanding
section
489.304,
this
subsection
applies
to
a
member
or
manager
of
a
limited
liability
company.
6.
In
the
event
a
withholding
agent
fails
to
withhold
and
pay
over
to
the
department
any
amount
required
to
be
withheld
under
subsection
2,
such
amount
may
be
assessed
against
such
withholding
agent
in
the
same
manner
as
prescribed
for
the
assessment
of
income
tax
under
the
provisions
of
this
subchapter
and
subchapter
VI.
7.
Whenever
the
director
determines
that
any
withholding
agent
has
failed
to
withhold
or
pay
over
to
the
department
sums
required
to
be
withheld
under
subsection
2,
the
unpaid
amount
shall
be
a
lien
as
described
in
section
422.26,
shall
attach
Senate
File
565,
p.
11
to
the
property
of
that
withholding
agent,
and
in
all
other
respects
the
procedure
with
respect
to
such
lien
shall
apply
as
set
forth
in
section
422.26.
8.
a.
Every
withholding
agent
required
to
deduct
and
withhold
tax
under
subsection
2
shall
furnish
to
each
employee,
nonresident,
or
other
person
with
respect
to
the
income
paid
by
the
employer
or
withholding
agent
to
each
employee,
nonresident,
or
other
person
during
the
calendar
year,
on
or
before
January
31
of
the
succeeding
year,
or,
in
the
case
of
an
employee,
if
the
employment
of
the
employee
is
terminated
before
the
close
of
the
calendar
year,
within
thirty
days
from
the
day
on
which
the
last
payment
of
wages
or
other
taxable
income
is
made,
if
requested
by
the
employee,
but
not
later
than
January
31
of
the
following
year,
an
income
statement
showing
all
of
the
following:
(1)
The
name
and
address
of
the
employer
or
withholding
agent,
and
the
taxpayer
identification
number
of
the
employer
or
withholding
agent.
(2)
The
name
of
the
employee,
nonresident,
or
other
person
and
the
taxpayer
identification
number
of
that
employee,
nonresident,
or
other
person,
together
with
the
last
known
address
of
the
employee,
nonresident,
or
other
person
to
whom
wages
or
other
taxable
income
has
been
paid
during
the
period.
(3)
The
gross
amount
of
wages
or
other
taxable
income
paid
to
the
employee,
nonresident,
or
other
person.
(4)
The
total
amount
deducted
and
withheld
as
tax
under
the
provisions
of
subsection
2.
(5)
The
total
amount
of
federal
income
tax
withheld.
b.
An
income
statement
required
to
be
furnished
by
this
subsection
with
respect
to
any
wages
or
other
taxable
Iowa
income
or
any
additional
information
required
to
be
displayed
on
the
income
statement
shall
be
in
such
form
or
forms
as
the
director
may
prescribe
by
rule.
9.
A
withholding
agent
shall
be
liable
for
the
payment
of
the
tax
required
to
be
deducted
and
withheld
or
the
amount
actually
deducted,
whichever
is
greater,
under
subsection
2.
Any
amount
deducted
and
withheld
as
tax
under
subsection
2
during
any
calendar
year
upon
the
wages
of
any
employee,
nonresident,
or
other
person
shall
be
allowed
as
a
credit
to
Senate
File
565,
p.
12
the
employee,
nonresident,
or
other
person
against
the
tax
imposed
by
section
422.5
for
the
tax
year
in
which
it
was
withheld,
irrespective
of
whether
or
not
such
tax
has
been,
or
will
be,
paid
by
the
withholding
agent
to
the
department
as
provided
by
this
chapter.
10.
a.
If
the
amount
of
income
tax
withheld
by
the
withholding
agent
on
behalf
of
an
employee,
nonresident,
or
other
person
after
complying
with
this
section
is
more
than
the
income
tax
liability
of
said
employee,
nonresident,
or
other
person
as
determined
under
the
provisions
of
this
subchapter,
the
overpayment
of
tax
may
first
be
credited
against
any
income
tax
or
installment
payment
then
due
the
state
of
Iowa
by
the
employee,
nonresident,
or
other
person
for
the
tax
year,
and
any
balance
of
one
dollar
or
more
shall
be
refunded
to
the
employee,
nonresident,
or
other
person
with
interest
in
accordance
with
section
421.60,
subsection
2,
paragraph
“e”
.
b.
Amounts
less
than
one
dollar
shall
be
refunded
to
the
taxpayer,
nonresident,
or
other
person
only
upon
written
application,
in
accordance
with
section
422.73,
and
only
if
the
application
is
filed
within
twelve
months
after
the
due
date
of
the
return.
c.
Refunds
in
the
amount
of
one
dollar
or
more
provided
for
by
this
subsection
shall
be
paid
by
the
treasurer
of
state
by
warrants
drawn
by
the
director
of
the
department
of
administrative
services,
or
an
authorized
employee
of
the
department
of
administrative
services,
and
the
taxpayer’s
return
of
income
shall
constitute
a
claim
for
refund
for
this
purpose,
except
in
respect
to
amounts
of
less
than
one
dollar.
There
is
appropriated,
out
of
any
funds
in
the
state
treasury
not
otherwise
appropriated,
a
sum
sufficient
to
carry
out
the
provisions
of
this
subsection.
11.
a.
In
addition
to
any
other
penalty
provided
by
law,
a
withholding
agent
required
to
furnish
or
file
an
income
statement
required
by
this
chapter
is
subject
to
a
civil
penalty
of
five
hundred
dollars
for
each
occurrence
of
the
following:
(1)
Willful
failure
to
furnish
an
employee,
nonresident,
or
other
person
with
an
income
statement.
(2)
Willfully
furnishing
an
employee,
nonresident,
or
other
Senate
File
565,
p.
13
person
with
a
false
or
fraudulent
income
statement.
(3)
Willful
failure
to
file
an
income
statement
with
the
department.
(4)
Willfully
filing
a
false
or
fraudulent
income
statement
with
the
department.
b.
A
withholding
agent
is
subject
to
the
penalty
as
provided
in
section
421.27.
Any
penalty
assessed
under
section
421.27
shall
be
in
addition
to
the
tax
or
additional
tax
due
under
this
section.
The
taxpayer
shall
also
pay
interest
on
the
tax
or
additional
tax
at
the
rate
in
effect
under
section
421.7,
for
each
month
counting
each
fraction
of
a
month
as
an
entire
month,
computed
from
the
date
the
semimonthly,
monthly,
or
quarterly
deposit
form
was
required
to
be
filed.
The
penalty
and
interest
become
a
part
of
the
tax
due
from
the
withholding
agent.
c.
If
any
withholding
agent,
being
a
domestic
or
foreign
corporation,
required
under
the
provisions
of
this
section
to
withhold
on
wages
or
other
taxable
Iowa
income
subject
to
this
chapter,
fails
to
withhold
the
amounts
required
to
be
withheld,
make
the
required
returns
or
remit
to
the
department
the
amounts
withheld,
the
director
may,
having
exhausted
all
other
means
of
enforcement
of
the
provisions
of
this
chapter,
certify
such
fact
or
facts
to
the
secretary
of
state,
who
shall
thereupon
cancel
the
articles
of
incorporation
or
foreign
registration
statement,
as
the
case
may
be,
of
such
corporation,
and
the
rights
of
such
corporation
to
carry
on
business
in
the
state
of
Iowa
shall
cease.
The
secretary
of
state
shall
immediately
notify
by
registered
mail
such
domestic
or
foreign
corporation
of
the
action
taken
by
the
secretary
of
state.
The
provisions
of
section
422.40,
subsection
3,
shall
be
applicable.
d.
The
department
shall,
upon
request
of
any
fiduciary,
furnish
said
fiduciary
with
a
certificate
of
acquittance
showing
that
no
liability
as
a
withholding
agent
exists
with
respect
to
the
estate
or
trust
for
which
said
fiduciary
acts,
provided
the
department
has
determined
that
there
is
no
such
liability.
12.
a.
(1)
Taxpayers
filing
a
return
shall
make
estimated
tax
payments
if
their
Iowa
income
tax
liability
can
reasonably
Senate
File
565,
p.
14
be
expected
to
amount
to
two
hundred
dollars
or
more
for
the
year.
(2)
In
the
cases
of
farmers
and
fishermen,
the
exceptions
provided
in
the
Internal
Revenue
Code
with
respect
to
making
estimated
payments
apply.
b.
(1)
The
estimated
tax
shall
be
paid
in
quarterly
installments.
The
first
installment
shall
be
paid
on
or
before
the
last
day
of
the
fourth
month
of
the
taxpayer’s
tax
year
for
which
the
estimated
payments
apply.
The
other
installments
shall
be
paid
on
or
before
the
last
day
of
the
sixth
month
of
the
tax
year,
the
last
day
of
the
ninth
month
of
the
tax
year,
and
the
last
day
of
the
first
month
after
the
tax
year.
A
taxpayer
may
elect
to
pay
an
installment
prior
to
the
due
date.
(2)
If
a
taxpayer
filing
a
return
has
reason
to
believe
that
the
taxpayer’s
Iowa
income
tax
may
increase
or
decrease,
either
for
purposes
of
meeting
the
requirement
to
make
estimated
tax
payments
or
for
the
purpose
of
increasing
or
decreasing
estimated
tax
payments,
the
taxpayer
shall
increase
or
decrease
any
subsequent
estimated
tax
payments
accordingly.
(3)
Any
tax
still
payable
after
applying
credits
for
taxes
paid
through
withholding,
estimated
tax,
and
composite
return
tax,
is
due
and
payable
on
or
before
the
end
of
the
fourth
month
following
the
close
of
the
tax
year.
c.
If
a
taxpayer
is
unable
to
make
the
taxpayer’s
estimated
tax
payments,
the
payments
may
be
made
by
a
duly
authorized
agent,
or
by
the
guardian
or
other
person
charged
with
the
care
of
the
person
or
property
of
the
taxpayer.
d.
(1)
Estimated
tax
paid
is
a
credit
against
the
amount
of
tax
found
payable
on
a
final,
completed
return,
as
provided
in
subsection
10,
relating
to
the
credit
for
the
tax
withheld
against
the
tax
found
payable
on
a
return
properly
and
correctly
prepared
under
sections
422.5
through
422.25.
(2)
Any
overpayment
of
one
dollar
or
more
shall
be
refunded
to
the
taxpayer
and
the
return
constitutes
a
claim
for
refund
for
this
purpose.
Amounts
less
than
one
dollar
shall
not
be
refunded.
(3)
The
method
provided
by
section
6654
of
the
Internal
Revenue
Code
for
determining
what
is
applicable
to
the
addition
to
tax
for
underpayment
of
the
tax
payable
applies
to
persons
Senate
File
565,
p.
15
required
to
make
payments
of
estimated
tax
under
this
section
except
the
amount
to
be
added
to
the
tax
for
underpayment
of
estimated
tax
is
an
amount
determined
at
the
rate
in
effect
under
section
421.7.
This
addition
to
tax
specified
for
underpayment
of
the
tax
payable
is
not
subject
to
waiver
provisions
relating
to
reasonable
cause,
except
as
provided
in
the
Internal
Revenue
Code.
Underpayment
of
estimated
tax
shall
be
determined
in
the
same
manner
as
provided
under
the
Internal
Revenue
Code
and
the
exceptions
in
the
Internal
Revenue
Code
also
apply.
e.
In
lieu
of
claiming
a
refund,
the
taxpayer
may
elect
to
have
the
overpayment
shown
on
the
taxpayer’s
final,
completed
return
for
the
taxable
year
credited
to
the
taxpayer’s
tax
liability
for
the
following
taxable
year.
13.
The
director
shall
enter
into
an
agreement
with
the
secretary
of
the
treasury
of
the
United
States
with
respect
to
withholding
of
income
tax
as
provided
by
this
chapter,
pursuant
to
an
Act
of
Congress,
section
1207
of
the
Tax
Reform
Act
of
1976,
Pub.
L.
No.
94-455,
amending
5
U.S.C.
§5517.
14.
a.
The
director
may,
when
necessary
and
advisable
in
order
to
secure
the
collection
of
the
tax
required
to
be
deducted
and
withheld
or
the
amount
actually
deducted,
whichever
is
greater,
require
a
withholding
agent
to
file
with
the
director
a
bond,
issued
by
a
surety
company
authorized
to
conduct
business
in
this
state
and
approved
by
the
insurance
commissioner
as
to
solvency
and
responsibility,
in
an
amount
as
the
director
may
fix,
to
secure
the
payment
of
the
tax
and
penalty
due
or
which
may
become
due.
In
lieu
of
the
bond,
securities
shall
be
kept
in
the
custody
of
the
department
and
may
be
sold
by
the
director
at
public
or
private
sale,
without
notice
to
the
depositor,
if
it
becomes
necessary
to
do
so
in
order
to
recover
any
tax
and
penalty
due.
Upon
a
sale,
any
surplus
above
the
amounts
due
under
this
section
shall
be
returned
to
the
withholding
agent
who
deposited
the
securities.
b.
If
the
withholding
agent
fails
to
file
the
bond
as
requested
by
the
director
to
secure
collection
of
the
tax,
the
withholding
agent
is
subject
to
penalty
for
failure
to
file
the
bond.
The
penalty
is
equal
to
fifteen
percent
of
the
tax
the
withholding
agent
is
required
to
withhold
on
an
annual
basis.
Senate
File
565,
p.
16
However,
the
penalty
shall
not
exceed
five
thousand
dollars.
15.
The
director
may
allow
additional
time
for
filing
documents
required
under
this
section
with
the
department
in
the
case
of
illness,
disability,
absence,
or
if
good
cause
is
shown.
Sec.
18.
Section
422.16B,
subsection
7,
Code
2023,
is
amended
to
read
as
follows:
7.
All
powers
of
the
director
and
requirements
of
the
director
apply
to
returns
filed
under
this
section
including
but
not
limited
to
the
provisions
of
this
subchapter
and
subchapter
VI
.
The
provisions
of
section
422.16,
subsection
2
4
,
paragraph
“c”
,
and
subsections
6,
10
7,
11
,
and
14,
applying
to
withholding
agents,
shall
apply
in
the
same
manner
to
pass-through
entities
under
this
section
.
Sec.
19.
Section
422.17,
Code
2023,
is
amended
to
read
as
follows:
422.17
Certificate
issued
by
department
to
make
payments
without
withholding.
Any
nonresident
whose
Iowa
income
is
not
subject
to
section
422.16,
subsection
1
2,
paragraph
“a”
,
“c”
,
“d”
,
or
“e”
,
in
whole
or
in
part,
and
who
elects
to
be
governed
by
section
422.16,
subsection
12
2,
paragraph
“b”
,
to
the
extent
that
the
nonresident
pays
the
entire
amount
of
tax
properly
estimated
on
or
before
the
last
day
of
the
fourth
month
of
the
nonresident’s
tax
year,
for
the
year,
may
for
the
year
of
the
election
and
payment,
be
granted
a
certificate
from
the
department
authorizing
each
withholding
agent,
the
income
from
whom
the
nonresident
has
considered
in
the
payment
of
estimated
tax
and
to
the
extent
the
income
is
included
in
the
estimate,
to
make
payments
of
income
to
the
nonresident
without
withholding
tax
from
those
payments.
Withholding
agents,
if
payments
exceed
the
tax
liability
estimated
by
the
nonresident
as
indicated
upon
the
certificate,
shall
withhold
tax
in
accordance
with
section
422.16,
subsection
12
2,
paragraph
“b”
.
DIVISION
V
FUTURE
CORRESPONDING
CHANGE
Sec.
20.
Section
422.16,
subsection
2,
paragraph
e,
Code
2023,
as
amended
in
this
Act,
is
amended
to
read
as
follows:
e.
For
the
purposes
of
this
subsection,
state
income
tax
Senate
File
565,
p.
17
shall
be
withheld
at
the
highest
rate
described
in
section
422.5A
422.5
from
supplemental
wages
of
an
employee
in
those
circumstances
in
which
the
employer
treats
the
supplemental
wages
as
wholly
separate
from
regular
wages
for
purposes
of
withholding
and
federal
income
tax
is
withheld
from
the
supplemental
wages
under
section
3402(g)
of
the
Internal
Revenue
Code.
Sec.
21.
EFFECTIVE
DATE.
This
division
of
this
Act
takes
effect
January
1,
2026.
DIVISION
VI
SETTLEMENT
AUTHORITY
——
NOTICE
OF
ASSESSMENT
——
ESTIMATION
OF
TAX
Sec.
22.
Section
421.5,
Code
2023,
is
amended
by
striking
the
section
and
inserting
in
lieu
thereof
the
following:
421.5
Settling
claims
for
taxes,
penalties,
and
interest
——
abatement.
1.
As
used
in
this
section:
a.
“Department”
means
the
department
of
revenue.
b.
“Settle”
or
“settlement”
includes
any
compromise
or
abatement
of
any
taxes,
penalties,
or
interest.
2.
In
addition
to
the
authority
granted
to
the
department
pursuant
to
section
17A.10
and
notwithstanding
section
7D.9,
the
department
may,
in
its
sole
discretion,
settle
any
taxes,
penalties,
or
interest.
3.
The
department
may
enter
into
a
settlement
in
the
case
of
doubtful
liability,
doubtful
collectability,
severe
economic
hardship,
or
to
promote
effective
tax
administration,
regardless
of
whether
the
amount
was
the
subject
of
a
timely
filed
appeal
or
return.
4.
Whenever
a
settlement
is
made,
the
department
shall
make
a
complete
record
of
the
case
showing
the
tax
assessed
or
claimed
due,
tax
refund
claimed,
recommendations,
reports,
and
audits
of
departmental
personnel
if
any,
the
taxpayer’s
grounds
for
dispute
or
contest
together
with
all
of
the
evidence,
and
the
amounts,
conditions,
and
settlement
of
the
same.
5.
A
taxpayer
shall
not
have
the
right
to
a
settlement
of
any
tax,
penalty,
or
interest
liability
under
this
section.
Any
determination
by
the
department
regarding
the
settlement
shall
be
discretionary
and
shall
be
final
and
conclusive
except
Senate
File
565,
p.
18
in
the
case
of
fraud,
mutual
mistake
of
material
fact,
or
as
otherwise
stated
in
a
written
settlement
agreement
between
the
taxpayer
and
the
department.
6.
The
department
may
require
an
application
for
relief
under
this
section.
7.
The
department
shall
adopt
rules
to
administer
this
section.
Sec.
23.
Section
421.10,
Code
2023,
is
amended
to
read
as
follows:
421.10
Appeal
period
——
applicability.
The
appeal
period
for
revision
of
assessment
of
tax,
interest,
and
penalties
set
out
under
section
422.28
,
423.37
,
437A.9
,
437A.22
,
437B.5
,
437B.18
,
452A.64
,
453A.29
,
or
453A.46
applies
to
appeals
to
notices
from
the
department
denying
changes
in
filing
methods,
denying
refund
claims,
and
denying
portions
of
refund
claims
for
the
tax
covered
by
that
section,
and
notices
of
any
adverse
department
action
directed
to
a
specific
taxpayer,
other
than
licensing,
which
involves
a
calculation.
Sec.
24.
Section
421.60,
subsection
2,
paragraphs
i
and
m,
Code
2023,
are
amended
by
striking
the
paragraphs.
Sec.
25.
Section
421B.11,
subsection
3,
Code
2023,
is
amended
to
read
as
follows:
3.
Judicial
review
of
the
actions
of
the
director
may
be
sought
in
accordance
with
section
422.29
and
chapter
17A
and
section
423.38
.
Sec.
26.
Section
422.25,
subsection
1,
paragraph
c,
Code
2023,
is
amended
to
read
as
follows:
c.
(1)
The
period
for
examination
and
determination
of
the
correct
amount
of
tax
is
unlimited
in
the
case
of
a
false
or
fraudulent
return
made
with
the
intent
to
evade
tax
or
in
the
case
of
a
failure
to
file
a
return.
(2)
If
a
person
required
to
file
a
return
with
the
department
fails
to
file
the
return
with
the
department,
the
department
may,
at
any
time,
estimate
the
tax
due
based
upon
information
or
knowledge
the
department
is
able
to
obtain.
(3)
If
the
department
estimates
an
amount
of
tax
under
subparagraph
(2),
the
following
shall
apply:
(a)
The
department
shall
issue
a
notice
of
assessment
Senate
File
565,
p.
19
to
the
person
for
which
the
tax
is
estimated
in
accordance
with
section
421.60.
The
notice
of
assessment
shall
not
be
appealable
pursuant
to
section
422.28
or
422.29,
except
to
appeal
the
determination
that
the
person
is
required
to
file
a
return.
(b)
The
department
shall
include
a
statement
with
the
notice
that
if
the
person
files
a
return
within
three
years
from
the
date
on
the
notice
of
assessment,
the
department
may
replace
the
assessment
with
the
amount
shown
due
on
the
person’s
return,
plus
any
applicable
penalty
and
interest,
and
the
department
may
examine
that
return
and
determine
the
tax,
penalty,
and
interest
within
the
period
provided
in
this
section.
(c)
If
the
person
fails
to
file
a
return
within
three
years
from
the
date
on
the
notice
of
assessment,
the
person
may
pay
the
tax,
penalty,
and
interest
and
file
a
refund
claim
within
the
time
period
provided
in
section
422.73,
or
may
request
relief
under
section
421.5.
Sec.
27.
Section
422.75,
Code
2023,
is
amended
to
read
as
follows:
422.75
Statistics
——
publication.
The
department
shall
prepare
and
publish
an
annual
report
which
shall
include
statistics
reasonably
available,
with
respect
to
the
operation
of
this
chapter
,
including
amounts
collected,
classification
of
taxpayers,
and
such
other
facts
as
are
deemed
pertinent
and
valuable.
The
annual
report
shall
also
include
the
reports
and
information
required
pursuant
to
section
421.60,
subsection
2
,
paragraphs
“i”
and
paragraph
“l”
.
Sec.
28.
Section
423.33,
subsection
1,
paragraphs
a
and
b,
Code
2023,
are
amended
to
read
as
follows:
a.
If
a
purchaser
fails
to
pay
sales
tax
to
the
retailer
required
to
collect
the
tax,
then
in
addition
to
all
of
the
rights,
obligations,
and
remedies
provided,
a
use
tax
is
payable
by
the
purchaser
directly
to
the
department,
and
sections
423.31
,
423.37
,
423.38
,
423.39
,
423.40
,
423.41
,
and
423.42
apply
to
the
purchaser.
b.
For
failure
to
pay
the
sales
or
use
tax
as
described
in
paragraph
“a”
,
the
retailer
and
purchaser
are
jointly
liable,
unless
the
circumstances
described
in
section
29C.24,
Senate
File
565,
p.
20
subsection
3
,
paragraph
“a”
,
subparagraph
(2),
section
421.60,
subsection
2
,
paragraph
“m”
,
section
423.34A
,
or
section
423.45,
subsection
4
,
paragraph
“b”
or
“e”
,
or
subsection
5
,
paragraph
“c”
or
“e”
,
are
applicable.
Sec.
29.
Section
423.33,
subsection
3,
Code
2023,
is
amended
to
read
as
follows:
3.
Event
sponsor’s
liability
for
sales
or
use
tax.
A
person
sponsoring
a
flea
market
or
a
craft,
antique,
coin,
or
stamp
show
or
similar
event
shall
obtain
from
every
retailer
selling
tangible
personal
property,
specified
digital
products,
or
taxable
services
at
the
event
proof
that
the
retailer
possesses
a
valid
sales
or
use
tax
permit
or
secure
from
the
retailer
a
statement,
taken
in
good
faith,
that
tangible
personal
property,
specified
digital
products,
or
services
offered
for
sale
are
not
subject
to
sales
tax.
Failure
to
do
so
renders
a
sponsor
of
the
event
liable
for
payment
of
any
sales
tax,
interest,
and
penalty
due
and
owing
from
any
retailer
selling
property
or
services
at
the
event.
Sections
423.31
,
423.37
,
423.38
,
423.39
,
423.40
,
423.41
,
and
423.42
apply
to
the
sponsors.
For
purposes
of
this
subsection
,
a
“person
sponsoring
a
flea
market
or
a
craft,
antique,
coin,
or
stamp
show
or
similar
event”
does
not
include
a
marketplace
facilitator
as
defined
in
section
423.14A,
subsection
1
,
an
organization
which
sponsors
an
event
determined
to
qualify
as
an
event
involving
casual
sales
pursuant
to
section
423.3,
subsection
39
,
or
the
state
fair
or
a
fair
as
defined
in
section
174.1
.
Sec.
30.
Section
423.37,
subsection
1,
Code
2023,
is
amended
to
read
as
follows:
1.
a.
As
soon
as
practicable
after
a
return
is
filed
and
in
any
event
within
three
years
after
the
return
is
filed,
the
department
shall
may
examine
it
the
return
,
assess
and
determine
the
tax
due
if
the
return
is
found
to
be
incorrect,
and
give
notice
to
the
person
liable
for
the
tax
of
the
assessment
and
determination
as
provided
in
subsection
2
paragraph
“b”
.
If
a
return,
when
filed,
is
incorrect
or
insufficient,
the
department
shall
determine
the
amount
of
tax
due
from
information
or
knowledge
the
department
is
able
to
obtain.
The
determination
may
be
made
using
any
generally
recognized
valid
and
reliable
sampling
technique,
whether
or
Senate
File
565,
p.
21
not
the
person
being
audited
has
complete
records,
and
if
mutually
agreed
upon
by
the
department
and
the
person
being
audited
.
The
period
for
the
examination
and
determination
of
the
correct
amount
of
tax
is
unlimited
in
the
case
of
a
false
or
fraudulent
return
made
with
the
intent
to
evade
tax
or
in
the
case
of
a
failure
to
file
a
return
.
b.
The
department
shall
issue
a
notice
of
assessment
in
accordance
with
section
421.60.
The
notice
shall
be
appealable
pursuant
to
sections
422.28
and
422.29.
If
the
person
fails
to
appeal
the
notice
of
assessment,
the
person
may
pay
the
tax,
penalty,
and
interest
and
file
a
refund
claim
within
the
time
period
provided
in
section
422.73,
or
may
request
relief
under
section
421.5.
Sec.
31.
Section
423.37,
subsection
2,
Code
2023,
is
amended
by
striking
the
subsection
and
inserting
in
lieu
thereof
the
following:
2.
a.
If
a
return
required
by
this
subchapter
is
not
filed,
the
period
for
examination
and
determination
of
the
correct
amount
of
tax
is
unlimited.
The
department
may,
at
any
time,
estimate
the
tax
due
from
the
information
or
knowledge
the
department
is
able
to
obtain.
b.
If
the
department
estimates
an
amount
of
tax
under
this
subsection,
the
following
shall
apply:
(1)
The
department
shall
issue
a
notice
of
assessment
to
the
person
for
which
the
tax
is
estimated
in
accordance
with
section
421.60.
The
notice
of
assessment
shall
not
be
appealable
pursuant
to
sections
422.28
and
422.29,
except
to
appeal
the
determination
that
the
person
is
required
to
file
the
return.
(2)
The
department
shall
include
a
statement
with
the
notice
that
if
the
person
files
a
return
within
three
years
from
the
date
on
the
notice
of
assessment,
the
department
may
replace
the
assessment
with
the
amount
shown
due
on
the
person’s
return,
plus
any
applicable
penalty
and
interest,
and
the
department
may
examine
that
return
and
determine
the
tax,
penalty,
and
interest
within
the
period
provided
in
this
section.
(3)
If
the
person
fails
to
file
a
return
within
three
years
from
the
date
on
the
notice
of
assessment,
the
person
may
pay
Senate
File
565,
p.
22
the
tax,
penalty,
and
interest
and
file
a
refund
claim
within
the
time
period
provided
in
section
422.73,
or
may
request
relief
under
section
421.5.
Sec.
32.
Section
423.45,
subsection
4,
paragraph
b,
Code
2023,
is
amended
to
read
as
follows:
b.
The
sales
tax
liability
for
all
sales
of
tangible
personal
property
and
specified
digital
products
and
all
sales
of
services
is
upon
the
seller
and
the
purchaser
unless
the
seller
takes
from
the
purchaser
a
valid
exemption
certificate
stating
under
penalty
of
perjury
that
the
purchase
is
for
a
nontaxable
purpose
and
is
not
a
retail
sale
as
defined
in
section
423.1
,
or
the
seller
is
not
obligated
to
collect
tax
due,
or
unless
the
seller
takes
a
fuel
exemption
certificate
pursuant
to
subsection
5
.
If
the
tangible
personal
property,
specified
digital
products,
or
services
are
purchased
tax
free
pursuant
to
a
valid
exemption
certificate
and
the
tangible
personal
property,
specified
digital
products,
or
services
are
used
or
disposed
of
by
the
purchaser
in
a
nonexempt
manner,
the
purchaser
is
solely
liable
for
the
taxes
and
shall
remit
the
taxes
directly
to
the
department
and
sections
423.31
,
423.37
,
423.38
,
423.39
,
423.40
,
423.41
,
and
423.42
shall
apply
to
the
purchaser.
Sec.
33.
Section
423.45,
subsection
5,
paragraphs
c
and
d,
Code
2023,
are
amended
to
read
as
follows:
c.
The
seller
may
accept
a
completed
fuel
exemption
certificate,
as
prepared
by
the
purchaser,
for
three
years
unless
the
purchaser
files
a
new
completed
exemption
certificate.
If
the
fuel
is
purchased
tax
free
pursuant
to
a
fuel
exemption
certificate
which
is
taken
by
the
seller,
and
the
fuel
is
used
or
disposed
of
by
the
purchaser
in
a
nonexempt
manner,
the
purchaser
is
solely
liable
for
the
taxes,
and
shall
remit
the
taxes
directly
to
the
department
and
sections
423.31
,
423.37
,
423.38
,
423.39
,
423.40
,
423.41
,
and
423.42
shall
apply
to
the
purchaser.
d.
The
purchaser
may
apply
to
the
department
for
its
review
of
the
fuel
exemption
certificate.
In
this
event,
the
department
shall
review
the
fuel
exemption
certificate
within
twelve
months
from
the
date
of
application
and
determine
the
correct
amount
of
the
exemption.
If
the
amount
determined
Senate
File
565,
p.
23
by
the
department
is
different
than
the
amount
that
the
purchaser
claims
is
exempt,
the
department
shall
promptly
notify
the
purchaser
of
the
determination.
Failure
of
the
department
to
make
a
determination
within
twelve
months
from
the
date
of
application
shall
constitute
a
determination
that
the
fuel
exemption
certificate
is
correct
as
submitted.
A
determination
of
exemption
by
the
department
is
final
unless
the
purchaser
appeals
to
the
director
for
a
revision
of
the
determination
within
sixty
days
after
the
date
of
the
notice
of
determination.
The
director
shall
grant
a
hearing,
and
upon
the
hearing,
the
director
shall
determine
the
correct
exemption
and
notify
the
purchaser
of
the
decision
by
mail.
The
decision
of
the
director
is
final
unless
the
purchaser
seeks
judicial
review
of
the
director’s
decision
under
section
423.38
422.29
within
sixty
days
after
the
date
of
the
notice
of
the
director’s
decision.
Unless
there
is
a
substantial
change,
the
department
shall
not
impose
penalties
pursuant
to
section
423.40
both
retroactively
to
purchases
made
after
the
date
of
application
and
prospectively
until
the
department
gives
notice
to
the
purchaser
that
a
tax
or
additional
tax
is
due,
for
failure
to
remit
any
tax
due
which
is
in
excess
of
a
determination
made
under
this
section
.
A
determination
made
by
the
department
pursuant
to
this
subsection
does
not
constitute
an
audit
for
purposes
of
section
423.37
.
Sec.
34.
Section
423.57,
Code
2023,
is
amended
to
read
as
follows:
423.57
Statutes
applicable.
The
director
shall
administer
this
subchapter
as
it
relates
to
the
taxes
imposed
in
this
chapter
in
the
same
manner
and
subject
to
all
the
provisions
of,
and
all
of
the
powers,
duties,
authority,
and
restrictions
contained
in
sections
423.14
,
423.14A
,
423.14B
,
423.15
,
423.16
,
423.17
,
423.19
,
423.20
,
423.21
,
423.22
,
423.23
,
423.24
,
423.25
,
423.29
,
423.31
,
423.33
,
423.34
,
423.34A
,
423.35
,
423.37
,
423.38
,
423.39
,
423.40
,
423.41
,
and
423.42
,
section
423.43,
subsection
1
,
and
sections
423.45
,
423.46
,
and
423.47
.
Sec.
35.
NEW
SECTION
.
452A.23
Motor
fuel
tax
——
administration
by
department.
The
department
shall
administer
the
taxes
imposed
by
this
Senate
File
565,
p.
24
chapter
in
the
same
manner
as
and
subject
to
section
422.25,
subsection
4,
section
423.35,
and
section
423.37.
Sec.
36.
Section
452A.66,
Code
2023,
is
amended
to
read
as
follows:
452A.66
Statutes
applicable
to
motor
fuel
tax.
1.
The
appropriate
state
agency
shall
administer
the
taxes
imposed
by
this
chapter
in
the
same
manner
as
and
subject
to
section
422.25,
subsection
4
,
and
section
423.35
.
2.
All
the
provisions
of
section
422.26
shall
apply
in
respect
to
the
taxes,
penalties,
interest,
and
costs
imposed
by
this
chapter
excepting
that
as
applied
to
any
tax
imposed
by
this
chapter
,
the
lien
provided
in
section
422.26
shall
be
prior
and
paramount
over
all
subsequent
liens
upon
any
personal
property
within
this
state,
or
right
to
such
personal
property,
belonging
to
the
taxpayer
without
the
necessity
of
recording
as
provided
in
section
422.26
.
The
requirements
for
recording
shall,
as
applied
to
the
tax
imposed
by
this
chapter
,
apply
only
to
the
liens
upon
real
property.
When
requested
to
do
so
by
any
person
from
whom
a
taxpayer
is
seeking
credit,
or
with
whom
the
taxpayer
is
negotiating
the
sale
of
any
personal
property,
or
by
any
other
person
having
a
legitimate
interest
in
such
information,
the
director
shall,
upon
being
satisfied
that
such
a
situation
exists,
inform
such
person
as
to
the
amount
of
unpaid
taxes
due
by
such
taxpayer
under
the
provisions
of
this
chapter
.
The
giving
of
such
information
under
such
circumstances
shall
not
be
deemed
a
violation
of
section
452A.63
as
applied
to
this
chapter
.
Sec.
37.
Section
453A.28,
subsection
1,
Code
2023,
is
amended
to
read
as
follows:
1.
a.
If
after
any
audit,
examination
of
records,
or
other
investigation
the
department
finds
that
any
person
has
sold
cigarettes
without
stamps
affixed
or
that
any
person
responsible
for
paying
the
tax
has
not
done
so
as
required
by
this
subchapter
,
the
department
shall
fix
and
determine
the
amount
of
tax
due,
and
shall
assess
the
tax
against
the
person,
together
with
a
penalty
as
provided
in
section
421.27
.
The
taxpayer
shall
pay
interest
on
the
tax
or
additional
tax
at
the
rate
determined
under
section
421.7
counting
each
fraction
of
a
month
as
an
entire
month,
computed
from
the
date
the
tax
was
Senate
File
565,
p.
25
due.
If
any
person
fails
to
furnish
evidence
satisfactory
to
the
director
showing
purchases
of
sufficient
stamps
to
stamp
unstamped
cigarettes
purchased
by
the
person,
the
presumption
shall
be
that
the
cigarettes
were
sold
without
the
proper
stamps
affixed.
Within
three
years
after
the
report
is
filed
or
within
three
years
after
the
report
became
due,
whichever
is
later,
the
department
shall
examine
the
report
and
determine
the
correct
amount
of
tax.
The
period
for
examination
and
determination
of
the
correct
amount
of
tax
is
unlimited
in
the
case
of
a
false
or
fraudulent
report
made
with
the
intent
to
evade
tax,
or
in
the
case
of
a
failure
to
file
a
report,
or
if
a
person
purchases
or
is
in
possession
of
unstamped
cigarettes.
b.
If
the
department
issues
an
estimated
assessment
due
to
failure
to
file
a
report,
the
procedures
described
in
section
423.37,
subsections
1
and
2,
shall
apply
to
taxes,
fees,
and
interest
imposed
under
this
subchapter
in
the
same
manner
and
with
the
same
effect
as
the
provisions
apply
to
the
taxes
imposed
under
chapter
423.
Sec.
38.
Section
453A.46,
subsection
1,
paragraph
a,
Code
2023,
is
amended
to
read
as
follows:
a.
(1)
On
or
before
the
twentieth
day
of
each
calendar
month
every
distributor
with
a
place
of
business
in
this
state
shall
file
a
return
with
the
director
showing
for
the
preceding
calendar
month
the
quantity
and
wholesale
sales
price
of
each
tobacco
product
brought,
or
caused
to
be
brought,
into
this
state
for
sale;
made,
manufactured,
or
fabricated
in
this
state
for
sale
in
this
state;
and
any
other
information
the
director
may
require.
Every
licensed
distributor
outside
this
state
shall
in
like
manner
file
a
return
with
the
director
showing
for
the
preceding
calendar
month
the
quantity
and
wholesale
sales
price
of
each
tobacco
product
shipped
or
transported
to
retailers
in
this
state
to
be
sold
by
those
retailers
and
any
other
information
the
director
may
require.
Returns
shall
be
made
upon
forms
furnished
or
made
available
in
electronic
form
and
prescribed
by
the
director
and
shall
contain
other
information
as
the
director
may
require.
Each
return
shall
be
accompanied
by
a
remittance
for
the
full
tax
liability
shown
on
the
return,
less
a
discount
as
fixed
by
the
director
not
to
exceed
five
percent
of
the
tax.
Within
three
years
after
the
Senate
File
565,
p.
26
return
is
filed
or
within
three
years
after
the
return
became
due,
whichever
is
later,
the
department
shall
examine
it,
determine
the
correct
amount
of
tax,
and
assess
the
tax
against
the
taxpayer
for
any
deficiency.
The
period
for
examination
and
determination
of
the
correct
amount
of
tax
is
unlimited
in
the
case
of
a
false
or
fraudulent
return
made
with
the
intent
to
evade
tax,
or
in
the
case
of
a
failure
to
file
a
return.
(2)
If
the
department
issues
an
estimated
assessment
due
to
failure
to
file
a
return,
the
procedures
described
in
section
423.37,
subsections
1
and
2,
shall
apply
to
taxes,
fees,
and
interest
imposed
under
this
subchapter
in
the
same
manner
and
with
the
same
effect
as
the
provisions
apply
to
the
taxes
imposed
under
chapter
423.
Sec.
39.
REPEAL.
Section
423.38,
Code
2023,
is
repealed.
Sec.
40.
EFFECTIVE
DATE.
This
division
of
this
Act
takes
effect
January
1,
2024.
DIVISION
VII
TAX
RETURN
PREPARERS
AND
PERSONS
AUTHORIZED
TO
ACT
FOR
TAXPAYERS
Sec.
41.
Section
421.59,
subsections
1
and
2,
Code
2023,
are
amended
to
read
as
follows:
1.
a.
A
taxpayer
may
authorize
an
individual
to
act
on
behalf
of
the
taxpayer
by
filing
a
power
of
attorney
with
the
department,
on
a
form
prescribed
by
the
department.
The
department
may
prescribe
a
separate
form
or
integrate
the
requirements
of
the
form
into
a
return
when
feasible.
b.
A
taxpayer
may
at
any
time
revoke
a
power
of
attorney
filed
with
the
department
pursuant
to
this
subsection
.
Upon
processing
of
the
taxpayer’s
revocation
of
a
power
of
attorney,
the
department
shall
cease
honoring
the
power
of
attorney.
2.
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,
and
may
establish
by
rule
the
documentation
required
to
verify
authorization
to
act,
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
Senate
File
565,
p.
27
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
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
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
section
422.14
or
a
tax
return
filed
under
chapter
450
.
d.
c.
An
individual
holding
the
following
title
or
position
within
a
corporation,
association,
partnership,
or
other
business
entity:
(1)
An
officer
or
employee
of
the
corporation
or
association
who
is
authorized
to
act
on
behalf
of
the
corporation
or
association
in
tax
matters.
(2)
A
designated
partner
or
employee
of
the
partnership
who
is
authorized
to
act
on
behalf
of
the
partnership
in
tax
matters.
(3)
A
person
authorized
to
act
on
behalf
of
the
limited
liability
company
in
tax
matters
pursuant
to
a
valid
statement
of
authority
or
employee
of
the
company
who
is
authorized
to
act
on
behalf
of
the
company
in
tax
matters.
e.
d.
A
licensed
attorney
who
has
appeared
on
behalf
of
the
taxpayer
or
the
probate
estate
in
a
court
proceeding.
Authorization
under
this
paragraph
is
limited
to
those
matters
within
the
scope
of
the
representation.
f.
e.
A
parent
or
guardian
of
a
taxpayer
who
has
not
reached
the
age
of
majority
where
the
same
parent
or
guardian
Senate
File
565,
p.
28
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.
f.
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
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.
g.
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.
i.
h.
A
trustee.
(1)
Upon
request
a
trustee
shall
submit
a
certification
of
trust,
or
in
the
absence
of
a
certification
of
trust
a
copy
of
the
court
order
appointing
the
trustee
if
one
has
been
issued,
or
a
copy
of
the
trust.
(2)
The
department
has
standing
to
petition
the
court
that
appointed
the
trustee
to
verify
the
appointment
or
to
determine
the
scope
of
the
appointment.
j.
i.
A
person
named
as
an
agent
in
a
general
or
durable
power
of
attorney
document
that
is
currently
in
force
and
such
document
has
not
been
prescribed
by
the
department
of
revenue.
k.
j.
A
successor
as
defined
in
section
633.356,
subsection
2
,
of
a
very
small
estate.
Sec.
42.
Section
421.62,
subsection
2,
Code
2023,
is
amended
by
adding
the
following
new
paragraph:
NEW
PARAGRAPH
.
c.
Notwithstanding
subsection
1,
paragraph
“d”
,
subparagraph
(2),
for
purposes
of
this
subsection,
“tax
return
preparer”
includes
any
of
the
following:
(1)
An
individual
licensed
as
a
certified
public
accountant
Senate
File
565,
p.
29
or
a
licensed
public
accountant
under
chapter
542
or
a
similar
law
of
another
state.
(2)
An
individual
admitted
to
practice
law
in
this
state
or
another
state.
(3)
An
enrolled
agent
enrolled
to
practice
before
the
federal
internal
revenue
service
pursuant
to
31
C.F.R.
§10.4.
DIVISION
VIII
SETOFF
Sec.
43.
2020
Iowa
Acts,
chapter
1064,
section
16,
subsection
6,
is
amended
to
read
as
follows:
6.
Fees.
The
department
shall
may
establish
fees
for
use
of
the
setoff
system
to
be
paid
by
participating
public
agencies
to
the
department.
Sec.
44.
CONTINGENT
EFFECTIVE
DATE.
This
division
of
this
Act
takes
effect
on
the
effective
date
of
the
rules
adopted
by
the
department
of
revenue
pursuant
to
chapter
17A
implementing
2020
Iowa
Acts,
chapter
1064,
other
than
transitional
rules.
DIVISION
IX
HOMESTEAD
PROPERTY
TAX
CREDIT
Sec.
45.
Section
425.11,
subsection
1,
paragraph
e,
Code
2023,
is
amended
by
striking
the
paragraph
and
inserting
in
lieu
thereof
the
following:
e.
(1)
“Owner”
means
the
person
who
holds
the
fee
simple
title
to
the
homestead.
“Owner”
also
includes
the
following:
(a)
The
person
occupying
as
a
surviving
spouse.
(b)
The
person
occupying
under
a
contract
of
purchase
which
contract
has
been
recorded
in
the
office
of
the
county
recorder
of
the
county
in
which
the
property
is
located.
(c)
The
person
occupying
the
homestead
under
devise
or
by
operation
of
the
inheritance
laws
where
the
whole
interest
passes
or
where
the
divided
interest
is
shared
only
by
persons
related
or
formerly
related
to
each
other
by
blood,
marriage,
or
adoption.
(d)
The
person
occupying
the
homestead
is
a
shareholder
of
a
family
farm
corporation
that
owns
the
property.
(e)
The
person
occupying
the
homestead
under
a
deed
which
conveys
a
divided
interest
where
the
divided
interest
is
shared
only
by
persons
related
or
formerly
related
to
each
other
by
blood,
marriage,
or
adoption.
Senate
File
565,
p.
30
(f)
Where
the
person
occupying
the
homestead
holds
a
life
estate
with
the
reversion
interest
held
by
a
nonprofit
corporation
organized
under
chapter
504,
provided
that
the
holder
of
the
life
estate
is
liable
for
and
pays
property
tax
on
the
homestead.
(g)
Where
the
person
occupying
the
homestead
holds
an
interest
in
a
horizontal
property
regime
under
chapter
499B,
regardless
of
whether
the
underlying
land
committed
to
the
horizontal
property
regime
is
in
fee
or
as
a
leasehold
interest,
provided
that
the
holder
of
the
interest
in
the
horizontal
property
regime
is
liable
for
and
pays
property
tax
on
the
homestead.
(h)
Where
the
person
occupying
the
homestead
is
a
member
of
a
community
land
trust
as
defined
in
42
U.S.C.
§12773,
regardless
of
whether
the
underlying
land
is
in
fee
or
as
a
leasehold
interest,
provided
that
the
member
of
the
community
land
trust
is
occupying
the
homestead
and
is
liable
for
and
pays
property
tax
on
the
homestead.
(i)
The
person
occupying
the
homestead
regardless
of
whether
the
underlying
land
is
in
fee
or
as
a
leasehold
interest,
provided
that
the
person
is
occupying
the
homestead
and
is
liable
for
and
pays
property
tax
on
the
homestead.
(2)
For
the
purpose
of
this
subchapter,
the
word
“owner”
shall
be
construed
to
mean
a
bona
fide
owner
and
not
one
for
the
purpose
only
of
availing
the
person
of
the
benefits
of
this
subchapter.
In
order
to
qualify
for
the
homestead
tax
credit,
evidence
of
ownership
shall
be
on
file
in
the
office
of
the
clerk
of
the
district
court
or
recorded
in
the
office
of
the
county
recorder
at
the
time
the
owner
files
with
the
assessor
a
verified
statement
of
the
homestead
claimed
by
the
owner
as
provided
in
section
425.2.
Sec.
46.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
enactment.
Sec.
47.
APPLICABILITY.
This
division
of
this
Act
applies
to
claims
under
chapter
425,
subchapter
I,
for
credits
against
property
taxes
due
and
payable
in
fiscal
years
beginning
on
or
after
July
1,
2024.
DIVISION
X
PROPERTY
TAX
CREDITS
AND
RENT
REIMBURSEMENT
Senate
File
565,
p.
31
Sec.
48.
Section
425.17,
subsection
7,
Code
2023,
is
amended
to
read
as
follows:
7.
“Income”
means
the
sum
of
Iowa
net
income
as
defined
in
section
422.7
,
plus
all
of
the
following
to
the
extent
not
already
included
in
Iowa
net
income:
capital
gains
,
;
alimony
,
;
child
support
money
,
;
cash
public
assistance
and
relief,
except
property
tax
relief
granted
under
this
subchapter
,
;
amount
of
in-kind
assistance
for
housing
expenses
,
the
gross
amount
of
any
pension
or
annuity,
including
but
not
limited
to
;
total
amounts
received
from
a
governmental
or
other
pension
or
retirement
plan,
including
defined
benefit
or
defined
contribution
plans;
annuities;
individual
retirement
accounts;
plans
maintained
or
contributed
to
by
an
employer,
or
maintained
or
contributed
to
by
a
self-employed
person
as
an
employer;
deferred
compensation
plans
or
any
earnings
attributable
to
the
deferred
compensation
plans;
income
received
pursuant
to
a
farm
tenancy
agreement
covering
real
property;
railroad
retirement
benefits
,
;
payments
received
under
the
federal
Social
Security
Act,
except
child
insurance
benefits
received
by
a
member
of
the
claimant’s
household
;
,
and
all
military
retirement
and
veterans’
disability
pensions
,
;
interest
received
from
the
a
state
or
federal
government
or
any
of
its
instrumentalities
,
;
workers’
compensation
;
and
the
gross
amount
of
disability
income
or
“loss
of
time”
insurance.
“Income”
does
not
include
gifts
from
nongovernmental
sources,
or
surplus
foods
or
other
relief
in
kind
supplied
by
a
governmental
agency.
In
determining
income,
net
operating
losses
and
net
capital
losses
shall
not
be
considered.
Sec.
49.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
enactment.
Sec.
50.
APPLICABILITY.
1.
This
division
of
this
Act
applies
to
claims
under
chapter
425,
subchapter
II,
for
credits
against
property
taxes
due
and
payable
in
fiscal
years
beginning
on
or
after
July
1,
2024.
2.
This
division
of
this
Act
applies
to
claims
under
chapter
425,
subchapter
II,
for
reimbursement
for
rent
constituting
property
taxes
paid
in
base
years
beginning
on
or
after
January
1,
2023.
3.
This
division
of
this
Act
applies
to
claims
under
section
Senate
File
565,
p.
32
435.22
for
a
credit
for
manufactured
and
mobile
home
taxes
due
and
payable
in
fiscal
years
beginning
on
or
after
July
1,
2024.
DIVISION
XI
ELECTRONIC
COMMUNICATIONS
——
RULES
Sec.
51.
Section
421.60,
subsection
11,
paragraph
c,
subparagraph
(1),
Code
2023,
is
amended
to
read
as
follows:
(1)
Notwithstanding
any
provision
of
law
to
the
contrary,
when
an
electronic
communication
is
posted
to
the
department’s
electronic
portal
for
a
person
who
has
made
such
an
election,
the
posting
of
the
electronic
communication
shall
satisfy
any
requirement
of
mailing
or
personal
service
in
this
title
,
chapter
17A,
chapter
272D
,
or
sections
321.105A
and
533.329
.
DIVISION
XII
COMPOSITE
RETURN
FILING
EXCLUSION
FOR
FINANCIAL
INSTITUTIONS
AND
CERTAIN
FINANCIAL
HOLDING
COMPANIES
Sec.
52.
Section
422.16B,
subsection
5,
Code
2023,
is
amended
by
adding
the
following
new
paragraph:
NEW
PARAGRAPH
.
0c.
The
pass-through
entity
meets
any
of
the
following
requirements
for
the
tax
year:
(1)
The
pass-through
entity
is
a
financial
institution
subject
to
the
franchise
tax
under
section
422.60
and
files
a
franchise
tax
return
required
under
section
422.62
and
pays
any
franchise
tax
shown
due
on
the
return.
(2)
The
pass-through
entity
wholly
owns
one
or
more
financial
institutions
subject
to
the
franchise
tax
under
section
422.60
that
are
treated
as
disregarded
entities
for
federal
and
Iowa
income
tax
purposes,
and
at
least
ninety
percent
of
the
gross
income
of
the
pass-through
entity
for
the
tax
year
is
also
reportable
income
on
the
franchise
tax
return
of
the
financial
institutions
wholly
owned
by
the
pass-through
entity,
and
such
financial
institutions
file
the
franchise
tax
returns
required
under
section
422.62
and
pay
any
franchise
tax
shown
due
on
the
franchise
tax
return.
Sec.
53.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
enactment.
Sec.
54.
RETROACTIVE
APPLICABILITY.
This
division
of
this
Act
applies
retroactively
to
January
1,
2023,
for
tax
years
beginning
on
or
after
that
date.
DIVISION
XIII
Senate
File
565,
p.
33
RETIRED
FARMER
INCOME
EXCLUSIONS
Sec.
55.
Section
422.7,
subsection
13,
paragraph
a,
subparagraph
(4),
Code
2023,
is
amended
to
read
as
follows:
(4)
“Materially
participated”
means
the
same
as
“material
participation”
in
section
469(h)
of
the
Internal
Revenue
Code
,
except
that
section
469(h)(3)
of
the
Internal
Revenue
Code
shall
not
apply
.
Sec.
56.
Section
422.7,
subsection
14,
paragraph
f,
subparagraph
(5),
Code
2023,
is
amended
to
read
as
follows:
(5)
“Materially
participated”
means
the
same
as
“material
participation”
in
section
469(h)
of
the
Internal
Revenue
Code
,
except
that
section
469(h)(3)
of
the
Internal
Revenue
Code
shall
not
apply
.
Sec.
57.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
enactment.
Sec.
58.
RETROACTIVE
APPLICABILITY.
This
division
of
this
Act
applies
retroactively
to
January
1,
2023,
for
tax
years
beginning
on
or
after
that
date.
DIVISION
XIV
INSTRUCTIONAL
SUPPORT
INCOME
SURTAX
Sec.
59.
Section
257.24,
Code
2023,
is
amended
to
read
as
follows:
257.24
Deposit
of
instructional
support
income
surtax.
1.
The
director
of
revenue
,
by
the
last
day
of
each
month,
shall
deposit
all
moneys
received
as
collected
and
determined
by
the
department
of
revenue
to
be
instructional
support
income
surtax
to
the
in
the
preceding
month,
and
shall
credit
of
each
district
from
which
the
moneys
are
received
collected
,
in
the
school
district
income
surtax
fund
which
is
established
in
section
298.14
.
2.
a.
The
director
of
revenue
shall
deposit
instructional
support
income
surtax
moneys
received
on
or
before
November
1
of
the
year
following
the
close
of
the
school
budget
year
for
which
the
surtax
is
imposed
to
the
credit
of
each
district
from
which
the
moneys
are
received
in
the
school
district
income
surtax
fund.
b.
Instructional
support
income
surtax
moneys
received
or
refunded
after
November
1
of
the
year
following
the
close
of
the
school
budget
year
for
which
the
surtax
is
imposed
shall
be
Senate
File
565,
p.
34
deposited
in
or
withdrawn
from
the
general
fund
of
the
state
and
shall
be
considered
part
of
the
cost
of
administering
the
instructional
support
income
surtax.
Sec.
60.
Section
257.25,
Code
2023,
is
amended
to
read
as
follows:
257.25
Instructional
support
income
surtax
certification.
1.
On
or
before
October
20
November
15
each
year,
the
director
of
revenue
shall
make
an
accounting
of
the
instructional
support
income
surtax
collected
under
this
chapter
applicable
to
tax
returns
for
the
last
preceding
calendar
year,
or
for
a
taxpayer’s
fiscal
year
ending
during
the
second
half
of
that
calendar
year
and
after
the
date
the
board
adopts
a
resolution
to
participate
in
the
program,
or
the
first
half
of
the
succeeding
calendar
year,
since
January
1
of
the
same
calendar
year
from
taxpayers
in
each
school
district
in
the
state
which
has
approved
the
instructional
support
program,
and
shall
certify
to
the
department
of
management
and
the
department
of
education
the
amount
of
total
instructional
support
income
surtax
credited
from
the
taxpayers
of
each
school
district.
2.
On
or
before
January
15
of
each
year,
the
director
of
revenue
shall
make
an
accounting
of
the
instructional
support
income
surtax
collected
under
this
chapter
during
the
preceding
calendar
year
from
taxpayers
in
each
school
district
in
the
state
which
has
approved
the
instructional
support
program,
and
shall
certify
to
the
department
of
management
and
the
department
of
education
the
amount
of
total
instructional
support
income
surtax
credited
from
the
taxpayers
of
each
school
district.
DIVISION
XV
COMPOSITE
RETURN
EXCEPTION
Sec.
61.
COMPOSITE
RETURN
EXCEPTION
——
CERTIFICATES
OF
ACQUITTANCE
RELATED
TO
CERTAIN
ESTATES.
Notwithstanding
any
other
provision
of
law
to
the
contrary,
the
requirements
of
section
422.16B,
including
but
not
limited
to
the
requirements
to
file
a
composite
return
and
pay
composite
return
tax,
shall
not
apply
to
any
estate
for
a
tax
year
that
began
on
or
after
January
1,
2022,
and
ended
before
December
31,
2022,
if
that
estate
received
a
certificate
of
acquittance
from
the
Senate
File
565,
p.
35
department
of
revenue
under
section
422.27
without
having
filed
a
composite
return
under
section
422.16B.
Sec.
62.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
enactment.
DIVISION
XVI
PROPERTY
TAX
PAYMENTS
——
SCHOOL
DISTRICTS
Sec.
63.
Section
257.3,
subsection
1,
Code
2023,
is
amended
by
adding
the
following
new
paragraph:
NEW
PARAGRAPH
.
d.
The
amount
paid
to
each
school
district
under
section
441.21,
subsection
5,
paragraph
“e”
,
shall
be
regarded
as
property
tax.
The
portion
of
the
payment
which
is
foundation
property
tax
shall
be
determined
by
applying
the
foundation
property
tax
rate
to
the
amount
computed
under
section
441.21,
subsection
5,
paragraph
“e”
,
subparagraph
(4),
subparagraph
division
(a),
and
such
amount
shall
be
prorated
pursuant
to
section
441.21,
subsection
5,
paragraph
“e”
,
subparagraph
(2),
if
applicable.
Sec.
64.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
enactment.
______________________________
AMY
SINCLAIR
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
565,
Ninetieth
General
Assembly.
______________________________
W.
CHARLES
SMITHSON
Secretary
of
the
Senate
Approved
_______________,
2023
______________________________
KIM
REYNOLDS
Governor